Document VGGdx9yk79Jb8L3ONydggNG0g

Telephone: (702) 385-4202 BRADLEY & MERRELL c/o Jones, Jones, Close & Brown 300 South Fourth Street, Seventh Floor Las Vegas, Nevada 89101-6026 Telephone: (702) 385-4202 Fax: (702) 384-2276 (702) 384-0479 Fax: (702) 384-0479 February 22, 1993 HAND DELIVERED Sue Fogleboch, CLA Nevada Power Company 6226 West Sahara Avenue Las Vegas, Nevada 89102 R e : Nevada Power Company v. Monsanto Company, et al. U S D C , District of Nevada Case CV-S-89-555-LDG (LRL) Dear Sue: Attached is a copy of the Affidavit of Jeffrey Palermo, which was attached to Defendants' Joint Opposition to Plaintiff's Motion for Partial Summary Judgment on the Issue of Damages. Palermo makes several statements which are contrary to what we have alleged and Nevada Power needs to rebutt these. Please pass this on to David Schwehr and/or others with knowledge on these matters for their comments. First, on page 2, Palermo states that the new equipment purchased by Nevada Power in the 1980s reduced the amount of units needed and improved the overall operation of the system. My recollection from reading some of the Monsanto and GE documents is that the replacement equipment actually was larger and less efficient. Secondly, and of more concern, is Palermo's statements that PCB transformers can be refurbished and reused after the PCB liquid is removed and that companies around the United States specialize in that clean up and refurbishing process. We need to make sure that it was not economically feasible for Nevada Power to have salvaged that equipment. For example, it is possible that the nearest company was not close enough geographically to make it worthwhile to send the equipment there. d n rm n v p o w e n fo g le b ch 101 Sue Fogleboch February 22, 1993 Page -2-- --- I appreciate your 'assistance with this query. If you have any questions or need additional information, please let me know. Sincerely, BRADLEY & MERRELL A (juf'dftwh fbffyAUrJ&ly DEBORAH MAILANDER DM: dd Enc. <Jnm\nvpor ort Io g febch.101  % J. BRUCE ALVERSON, 'ESQ. DAVID R. CLAYSjoN, ESQ. - ALVERSON-, TAYLOR, MORTENSEN & NELSON 3821 West Charleston Blvd. Las Vegas, Nevada 89102 Telephone: (Vjo2) 384-7000 BRUCE A. FEATHERSTONE, ESQ. KIRKLAND & ELLIS j 1999 Broadway,|Suite 4000 Denver, CO 80202 | Telephone: (303)291-3000 JOHN L. THORNDAL, ESQ. PEGGY A. LEEN,|ESQ. | THORNDAL, BACKUS, MAUPIN & ARMSTRONG 1100 East Bridger Avenue P.O. Drawer 2070 I Las Vegas, Nevada 89125-2070 Telephone: (702) 366-0622 ARVIN MASKIN, ESQ. KONRAD L. C A I L T E U X , ESQ. WEIL, GOTSHAL & MANGES 767 Fifth Avenue I New York, New York 110153 Telephone: (212) 310-8000 Attorneys for Defendant WESTINGHOUSE ELECTRIC CORPORATION UNITED STATES DISTRICT COURT DISTRICT OF NEVADA NEVADA POWER COMPANY, a Nevada corporation, Plaintiff, vs. MONSANTO COMPANY, a foreign corporation? GENERAL ELECTRIC COMPANY, a fordign corporation? WESTINGHOUSE ElfecTRI'C CORPORATION, a foreign corporation; and DOES I through XXV, inclusive, CASE NO. CV-S-- 89-555-LDG (LRL) AFFIDAVIT OF P. JEFFREY PALERMO IN OPPOSITION TO NEVADA POWER COMPANY'S MOTION FOR PARTIAL SUMMARY JUDGMENT ON THE ISSUE OF DAMAGES AND IN SUPPORT OF THE DEFENDANTS' JOINT OPPOSITION Defendants. NYFS07__ :\58\fl0758\0100\2277\AFf 20593.S30 i AI V .fI, t P. Jeffrey Palermo, on oath, states as follows: 1. I am the Senior Vice President of CSA Energy Consultants, 1901 North Fort Myer Drive, Suite 503, Arlington, VA 22209, and I submit this affidavit in opposition to Nevada Power Company's motion for partial summary judgment on the issue of damages. 2. I have over sixteen years of experience in the power system field specializing in generation and transmission planning, coordination studies, reliability analysis, rate analysis and forecasting. Further, I am a registered professional engineer and a member of several technical societies. I am qualified to make the statements contained herein. 3. It is well established that transformers and capacitors have a range of life expectancies upon which manufacturers, utilities and others regularly rely. (American National Standards Institute C-57.91). 4. After 1980, improvements were made in distribution transformers and capacitors that reduced energy losses, reduced the amount of units needed and improved the overall operation of the system. Thus, Nevada Power Company would realize cost savings and efficiency and economic benefits based on using equipment manufactured after 1980 to replace older equipment. 2 -- 5. it is well known that PCB transformers can be refurbished and reused once the PCB liquid is removed and the transformer is flushed out. (40 C.F.R. 761.30). 6. Indeed, several companies around the United States specialize in cleaning up, refurbishing and then reselling transformers that previously had been filled with PCBs. A list of such companies can be found in the classified advertisements at the back of many electric power magazines published in the United States. (See Transmission and Distribution Magazine. September 1992) . Subscribed, sworn to and acknowledged before me this C>- day of February, 1993 by P. Jeffrey Palermo. 7n t w h 3 yCTTAVl/N0SH3/pH- 000S820i 50 '. L \ 6 / 6 0 / 2 0