Ratepayers should not fund IP-2 outage, NY Attorney General says

The New York Attorney General is trying to block Consolidated Edison's effort to pay for an Indian Point nuclear plant outage through the fuel-adjustment clause on the grounds that the utility had repeated system warnings and should have taken action to prevent the leakage of water into the containment building. The utility rejects the assessment of personnel negligence and, blaming equipment failure, plans to replace its heat exchangers. The New York Public Service Commission approved Con Ed's use of the fuel-adjustment clause to pay for replacement power, but agrees that ratepayers should not pay the costs of negligence if the charges are proved. The Attorney General feels that Con Ed could legally challenge a later request for refunds. Other funding possibilities include nuclear-insurance policies or legal action against the equipment manufacturer