Washington (Platts)--13Jul2012/509 pm EDT/2109 GMT

A federal appeals court awarded roughly $12.6 million in damages to the three owners of the Wolf Creek nuclear power plant in Kansas as compensation for spent fuel storage costs they incurred after the US Department of Energy failed to begin disposing of utility spent fuel by a 1998 contract date.

The decision Thursday by the US Court of Appeals for the Federal Circuit, which hears appeals in contract cases against the federal government, is roughly $2 million higher than what the US Court of Federal Claims had awarded to the owners. The claims court erred in denying certain overhead costs, the appeals court said.

Kansas Gas & Electric, Kansas City Power & Light and Kansas Electric Power Cooperative own the 1,226-MW Wolf Creek station, near Burlington. Wolf Creek Nuclear Operating Corp. operates the nuclear power plant.

WCNOC spokeswoman Jennifer Hageman said Friday that the parties in the case -- the owners and the federal government -- have 45 days to seek a rehearing. If none is sought, the case will go back to the claims court so it can adjust the award to reflect the appeals court decision, she said.

More than 60 nuclear utilities sued the federal government for damages after DOE failed to begin disposing of utility spent fuel by the January 31, 1998 contract date. As of December, more than $2 billion in spent fuel settlements have been paid out of the taxpayer-funded federal settlement fund.

--Elaine Hiruo, elaine_hiruo@platts.com --Edited by Katharine Fraser, katharine_fraser@platts.com