Document oenz7xvoZjKX4Gq0Z8eOqXqeR

CLIFFORD K JONES HERBERT M, JONES MELVIN D. CLOSE, JR, JOSEPH W BROWN GARY R. GOODHEART MICHAEL L BUCKLEY WILL KEMP KIRK R HARRISON DOUGLAS G, CROSBY RICHARD r . JOST Jt RANDALL JONES CHARLES K McCREA, S R JANET L CHUBB DOUGLAS M. COHEN PATRICIA JL CURTIS KIRK a LENHAPD WAYNE L MORTIMER JULIEN G. SOURWTNE DAVIO I - MOUSEL DOUGLAS A. SLOANE Jo n e s ,Jo n e s ,Close & Ch a p t e r e d A PROFESSIONAL CORPORATION Br ow n SEVENTH FLOOR - VALLEY DANK PLAZA 3 0 0 SOUTH FOURTH STREET I A S V E G A S , N E V A D A BOLO1-DO&0 KRISTON T. BALLARD CARA L BROWN WILLIAM L COULTHARD DEREK C. ENCE JAMES W ERBECK JOHN WT FIELD GARY T, FOREMASTER ANTHONY C, GORDON KIRK D. HENDRICK RICHARD r. HOLLEY DAVID G. JOHNSON JOHN EL LEACH PAUL A. LEMCKE MARK D, LERNER RENEE R. REUTHER STEPHEN M. RICE JANE A STECKBECK KEVIN FL STOLWORTHY JOHN M. SULLIVAN February 10, 1992 Richard L. Hinckley Vice President & Chief Counsel Nevada Power Company 6226 West Sahara Avenue P.0, Box 230 Las Vegas, Nevada 89151 TELEPHONE <7021 3 0 5 -4 2 0 2 T E L E C O P IE R (7021 3 8 .-2 2 7 6 1702) 3 8 3 -0 0 8 6 o r COUNSEL LYLE RIVERA HAND DELIVERED Re: Nevada Power Company v. Monsanto, et al. Dear Richard: I am delighted to enclose a copy of the decision of the Ninth Circuit Court of Appeals in the above-captioned action. Surprisingly (because reversals are always somewhat surprising), we prevailed. This presents new problems for both of us. Nevada Power's task, and it needs to move on it quickly, is to quantify its damages as accurately as possible. Its damages, of course, are the expenses that it incurred in changing out PCB transformers and capacitors throughout its system, and expenses it may yet incur if it has not in fact completed the job. This is worth doing well; I think that at this point every dollar ,in damages that Nevada Power can support can be recovered from these defendants. This is a somewhat stunning victory. These defendants gambled and they have lost heavily; until now the only case of record on precisely this type of claim was Electric Power Board v. Monsanto Company. 879 F.2d 1368 (6th Cir. 1989), which went their way and on which they relied heavily. RENO OFFICES: I EAST LIBERTY. SUITE CIA* RENO. NEVADA 89501-2110 TELEPHONE (7021 3 4 8 - 0 8 8 0 TELECOPIER 1702) 3 4 8 - 0 8 0 6 333 MARSH AVENUE P.O. BOX 4 6 0 RENO, NEVADA 8 9 5 0 4 - 0 4 6 0 TELEPHONE (702) 3 2 3-8 6 3 3 TELECOPIER (702) 3 2 3 - 8 6 6 8 Richard L. Hinckley February 10, 1992 Page 2 .6 We should meet and talk about this. There are many things that need to be considered. Very truly yours JONES, JONES, CLOSE i 2D Charles H. McCrea, Sr CHM/jlr cc (v/o enclosure): Charles A. Lenzie Chairman and CEO /