GE Nuclear Unit to Pay $2.7 Million to Resolve Claims

General Electric Co.'s nuclear energy unit agreed to pay $2.7 million to settle allegations that it made false statements to regulators over an advanced nuclear reactor design, the Justice Department said Thursday.

General Electric Hitachi Nuclear Energy Americas LLC, a joint venture formed last year between GE and Hitachi Ltd., allegedly made false statements to the Energy Department and the Nuclear Regulatory Commission about a part of its Economic Simplified Boiling-Water Reactor, a steam dryer that removes liquid water droplets from steam produced by nuclear reactions that generate electricity in boiling-water type reactors.

The government alleged GE Hitachi concealed known flaws in its steam dryer analysis and falsely represented that it had properly analyzed the dryer in accordance with applicable standards.

The NRC requires companies to show that vibrations caused by the seam dryer won't cause damage to a nuclear plant to apply for certification. GE Hitachi received funding from the Energy Department between 2007 and 2012 to cover up to half the cost of developing the steam dryer and getting certification.

GE Hitachi denies all the allegations, a GE spokesman said, adding it is in the company and customers' best interests to settle with regulators.

"It allows the NRC to focus solely on certifying this reactor," he said.

The NRC is still reviewing GE Hitachi's application.

"Transparency and honesty are absolutely critical when dealing with issues relating to the design of a nuclear reactor," said Stuart F. Delery, assistant attorney general for the Justice Department's civil division. "The Justice Department will protect federal funds and the Nuclear Regulatory Commission's crucial mandate of ensuring public safety."

The allegations arose from a whistleblower lawsuit filed under the False Claims Act by a former GE Hitachi employee.

Write to Everdeen Mason at [e-mail]

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