Document Jrrrmj1EbnvdmLBBmKqw1br66

. CUTFORO A JONES HERBERT M. J 0 N E 5 MELVIN D, CLOSE, JR. JOSEPH W BROWN CART R. GOODHCART MICHAEL E. BUCKLEY W LL KEMP KIRK R HARRISON DOUGLAS G. CROSBY RIC H AR D F* JO S T L A W O F F IC E S J R A N D A li. JONES CHARLES K MCCREA, 5R. JANET L CHUBB DOUGLAS M COHEN PATRICIA J. CURTIS KIRK 0 . LENHARD WAYNE L MORTIMER J U U E N G. SOURW1ME DAVID L M OU5EL DOUGLAS A, SLOANE J o n e s ,J o n e s , C l o s e & B r o w n Ch a r t e r e d A P R O F E S S IO N A L C O R PO R ATIO N SEVEN TH FLOOR - V ALLEY B A N K PLAZA 3 0 0 SOUTH FOU RTH ST R E E T L A S V E O A St N EV A D A B 9I01- O E G KRISTON T. BALLARD CARA L BROWN W LU A M l_ COULTHARD DEREK C. ENCE JA M E S W. ERBECK JO H N W. HELD GARY T. FOREMASTER ANTHONY C. GORDON KIRK O. HEN D R IC K RICKARD F. HOLLEY DAVID G. JOHNSON JOHN E. LEACH PAUL A LEMCKE MARK D. LERNER RENEE R. REUTHER STEPHEN IK RICE ERIKA PALMER ROGERS JANE A STECKBECK KEVIN R. STOLWORTKT J O H N ML SULLIVAN April 20, 1992 Henry B. Sargent, Jr.' Executive Vice President Pennical West Capital Corp. P.O. Box 52132 Phoenix, Arizona 85072-2132 TELEPHONE <7021 3 0 5 -4 2 0 2 TELE C O P IE R <7021 3 B A -2 2 7 0 1702) 3B 3-O O C O OF COUNSEL LYLE RIVERA Re: Nevada Power Company v. Monsanto Company, etal Dear Henry: Enclosed is a copy of the Order Amending Opinion, Denying Petition For Rehearing, And Rejecting Suggestion For Rehearing En Banc in the above-captioned case . Not only was the Defendant 's Petition For Rehearing denied; the opinion as amended is actually stronger than the original issued February 5, 1992. You perhaps remember an incident some fifteen or twenty years ago when the gas meter manufacturers were found to have conspired to fix prices in violation of the anti trust laws. The California PUC (and perhaps regulators in other states) got after every gas utility in the state to make sure that they got into the litigation and recovered something, which then was flowed back to the gas rate payers. The Nevada Power case, of course, has yet to be tried or settled, but now that the statute of limitations question has been resolved against the defendants, recovery is likely. Moreover, the damages that the electric utilities have experienced are huge? Nevada Power, which had no more than 200,000 customers at the time it began changing out PCB transformers and capacitors, has something in the neighborhood of eight to ten million dollars in special damages. APS would have many times that amount. The electric utilities that have changed out their PCB transformers and capacitors probably have recovered the costs in rate base, and likely would have to flow through to their rate payers a substantial part of any recovery. However, if nothing else, a recovery to benefit ratepayers would be wonderful PR. And finally, an Arizona utility that goes after these defendants on its own initiative is going to be lots better off than one bullied into doing it by Marcia Weeks, wouldn't you agree? RENO OFFICE: 333 MARSH AVENUE * RENO, NEVADA 8 9 5 0 4 TELEPHONE (703) 3 4 8 - 0 8 8 0 * (702) 3 2 3 -8 6 3 3 TELECOPIER (702) 3 4 8 - 0 8 8 6 * (702) 3 2 3 - 8 6 6 8 Henry B. Sargent, Jr. April 20, 1992 Page 2 I spoke with some of your people at APS in the summer of 1988, but apparently a decision was made not to pursue the matter at that time. However, I understand that Arizona has a six year statute of limitations on fraud. If this is so, APS would still have something over two years in which to act (assuming that APS had no knowledge of the fraud prior to my meeting with APS personnel). I know you're not the chief legal officer, but if you are interested, you might put him/her in touch with me? I can provide a lot of information. I know y o u 've been through some tough times down there. I hope most of that is behind you by now. Very truly yours JONES, JONES, CLOSE CHM:jkk Enclosure