Document RjJ6q54y976bjMYD2Ex9NBML7

TO: FROM: RE: DATE: MEMORANDUM J.R.JONES, D.COHEN, K.BALLARD; VIA FAX TO D.McCREA, B.SNYDER, P.MERRELL CHUCK McC CONVERSATION WITH RICHARD HINCKLEY May 18, 1992 I spoke with Richard Hinckley this afternoon and related to him the status of our efforts to get settlement negotiations going with the defendants. I told Richard that we needed an updated schedule quantifying Nevada Power's damages. He said that Nevada Power is working on this and will complete it shortly. It will include the costs related to PCB contaminated equipment as well as PCB equipment. I said we wanted a summary sheet of one or two pages, showing: [1] the costs incurred by descriptive category tied to account names and numbers under the Uniform System of Accounts for Electric Utilities, a system promulgated by the Federal Energy Regulatory Commission and to my knowledge used, with minor variations (if any), by the Nevada Public Service Commission and every other state regulatory commission; and [2 ] a breakdown of the changed out equipment into three categories - GE, Westinghouse and other. (I am assuming that Monsanto provided all of the PCB dielectric fluid for all manufacturers, so its share of damages would be ascertained on some other basis, a problem that is not ours in any event.) I said we would also want the summary schedule accompanied by a certificate of a company official - the person who would be the Memorandum May 18, 1992 Page 2 principal witness supporting the schedule - saying in substance that the schedule had been prepared under his direction and control and fairly represents the actual costs incurred by Nevada Power in changing out the equipment, exclusive of all interest and other financing costs. I also told Richard that we intend to set up a high level meeting with defendants or none at all? a meeting attended by officers or agents of the defendants who have authority to make binding commitments to settle. I said that in this context, it would lend credence to our insistence that principals with settlement authority attend if Nevada Power would have such a person at any meetings. He agreed. I also reminded him that we need to know what figure Nevada Power would be comfortable in submitting (which would be where defendants would start negotiating) and what figure would be the bottom of Nevada Power's range. We talked about the timing of such a meeting? I told him it is unlikely it would occur before two weeks, but that we need the damage summary to get the ball rolling. chm\nevpower\hinkly-2.tel SERIAL Mk TRANSACTION B'CAST REPORT M A Y - 19-92 TUE P. 1 13=05 # DATE 01 M A Y - 19 02 03 TOTAL S. T. NAME 13:04 18123325307 12:58 14064431174 12:58 18155254679 TIME 1 0* ; i' 53" 1 1' 53' 3M46S PGS 0 3 3 8 NOTE SERIAL BUSY SERIAL OK SERIAL OK DP I i E JONES, JONES, CLOSE & BROWN, CHARTERED Seventh Floor -- Valley Bank Plaza 300 South Fourth Street Las Vegas, Nevada 89101-6026 (702) 385-4202 M E S S A G E FROM PANAFAX UF-250: (7021 384-2276 DATE: May 18, 1992 TO: FAX#: PHONE #: X / . y A y r TO: ^ t V i v /, : u d t t / FAX#: d f / - y-y* - / / y d PHONE #: y/?/-- '/ ' y / s d *? / / ` TO: /7 fi`( ts A e . FAX#: PHONE #: FROM: CLIENT/MATTER: CLIENT/M ATTER NO.: NUMBER O F PAG ES (including cover page): d) "S M ESSAG E: ____________________________ THIS TELECO PY IS IN TeiD ED ONLY FO R THE ADDRESSEE NAM H) ABOVE. iT MAY CONTAIN INFORMATION THAT IS PRIVILEGED AND CONFIDENTIAL IFYOU HAVE RECEIVED THE TELECO PY IN ERROR, PLEASE NOTIFY US IMMEDIATELY B Y TELEPHONE, DESTROY A LL COPIES, AND DO NOT DISSEMINATETHE INFORMATION TO ANYONE. THANK YOU FOR YO UR ASSISTANCE. IF YOU EXPERIENCE PROBLEMS WITH THIS TRANSMISSION, please call (702) 385-4202 and ask for: DALE