> The vendor (Areva NP) and the utility are in bitter dispute over who will bear the cost overruns and there is a real risk now that the utility will default.

> The vendor (Areva NP) and the utility are in bitter dispute over who will bear the cost overruns and there is a real risk now that the utility will default. With the contract TVO signed with Siemens and Areva for the plant they will never end up having to pay all the cost overruns. It was basically a fixed price contract. What ended up happening is Siemens got the fuck out of the deal (it was originally a Siemens and Areva joint project) and French government broke up Areva Group into smaller entities and took a hit on the failed project. From the legal fighting Areva agreed to pay TVO 450 million due to failing to deliver on time with some extra money going one way or another based on if it will deliver in the new revised timelines (ended up Areva having to pay TVO another 450 million). According to TVO at the end of the day the project cost them 5 billion instead of the original 3.2 billion with Areva saying it cost the 8.5 billion so Areva took a huge hit on making a bad contract and/or failing to deliver.