Japanese official says TEPCO will likely be liable for damages from damaged reactors

Reuters just reported:

Tokyo Electric Power will likely be held responsible for damages stemming from a nuclear plant that was crippled by this month’s massive earthquake and tsunami and has been leaking radiation, Japan‘s top government spokesman said.

Under Japanese law the operator of a nuclear facility can be granted an exemption from damages caused by a reactor if the accident was deemed to have been triggered by “a grave natural disaster of an exceptional character.”

The government has not yet decided whether it would classify the 9.0-magnitude earthquake and tsunami on March 11 as an “exceptional” disaster, even though it killed thousands and total damages could exceed $300 billion.

Chief Cabinet Secretary Yukio Edano said it was his view that this exemption would not be applied to the damages caused by Tokyo Electric’s Fukushima Daiichi plant.

Link: http://www.reuters.com/article/2011/03/25/us-japan-quake-insurance-idUSTRE72O36D20110325

Combine the potential financial liability with what David Crane told Nikkei on Friday:

It would be a significant blow if Tokyo Electric Power Co. (9501.TO) pulls out of a planned investment in a nuclear power project spearheaded by U.S. firm NRG Energy Inc. and Toshiba Corp. in the state of Texas, CEO of the U.S. utility David Crane told the Nikkei in an interview published on Friday.

Link: http://www.nasdaq.com/aspx/stock-market-news-story.aspx?storyid=201103250409dowjonesdjonline000238&title=nrg-ceo-says-tepco-exit-would-hurt-texas-nuclear-projectnikkei

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About Robert Singleton

By day, I work for a call center. In my spare time, I try to save my hometown (and planet) from a nearly constant onslaught of greedheads, lunatics and land developers. I live in a fictional town called Austin, Texas, where I go to way too many meetings.
This entry was posted in Expansion, Finance, Japan, Radiation leak, Reactor problems, South Texas Project and tagged , , . Bookmark the permalink.

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