Jump to Navigation
Jump to Content

Kansas Gas & Electric Co. v. United States

ELR Citation: 42 ELR 20152
Nos. 2011-5044, -5045, (Fed. Cir., 07/12/2012)

The Federal Circuit affirmed in part and reversed in part a lower court's award of over $10.5 million in damages to Kansas electric companies stemming from the U.S. government's partial breach of its contract for the disposal of spent nuclear fuel. In determining the amount of damages, the trial court correctly did not award damages for cost of capital and for the costs associated with researching alternative storage options for spent nuclear fuel and high level radioactive waste. The trial court also appropriately reduced the companies’ damages by the value of the benefit they received as a result of their mitigation activities. But the trial court erred by not accepting the companies’ method for calculating overhead costs. The companies' method for calculating overhead costs was reasonable and complied with FERC accounting standards.