ML17286B253

Advises That Westinghouse Has Been Given Notice of Extreme Displeasure Re Approach to Asl Dry Type Transformers Matter & That Necessary Steps to Correct Impression Given to Customers That ABB Has Any Responsibility Concerning Matter

ML17286B253
Person / Time
Site:	Columbia
Issue date:	11/21/1991
From:	Attanasio J ASEA BROWN BOVERI, INC.
To:	Murley T Office of Nuclear Reactor Regulation
Shared Package
ML17286B252	List: ML17286B251 ML17286B253
References
REF-PT21-91 NUDOCS 9201210227
Download: ML17286B253 (3)

Text

'i I Goer'I%co~

ev l so@

wove )et a

kih I'Ii ASEA BROWN BQVERt John R. Atteneeio Woe Preelttent and Oenetat Covneel November 21, 1991 Dr. Thomas E, Murley, Director Office of Nuclear Reactor Regulation United States Nuclear Regulatory Commission Washington>

DC 20555 Dear Dr; Murley!

We are in receipt of a copy of a letter dated November 14/

199le addressed to youp from S

~

R. Tritch of Westinghouse Electric Corporation attaching a "generic version" of a customer notification letter.

That customer notification letter, insofar as it suggests that ABB Power TaD Company Xnc.

("ABB") has any responsibility to customers (or anyone else) concerning AsL Dzy Type Transformers is false and misleading.

Following a brief joint venture with Westinghouse during -1989, ABB acquired certain assets and assumed ceztain liabilities related to the power transmission and distribution business previously conducted by Westinghouse.

As to the ASL Dry Type Transformers>

the last of which were manufactuzed by Westinghouse approximately seven years prior to the joint venture with ABB, no liabilities whatsoever vere assumed by ABB.

We-have given formal notice to Westinghouse of our extreme displeasure concerning its approach to this matter and of our demand that Westinghouse take all necessary steps to correct the impression given in its letter to customers that ABB has any responsibility for the ASL Dry Type Transformers.

A copy of ouz lettyl to Westinghouse is attached for your information.

Sincerel John R. Attanasio cc:

S.

R, Tritch, Manager Engineering Technology Department Nuclear and Advanced Technology Division Westinghouse Electric Corporation Box 355 Pittsburghi PA 15230"0355 ABB Power T&DCompany Inc.

Te'e'a:

216 634-7<26 Te'ennone:

216 834 7411 9201210227 920102 PDR AOOCK 05000397' PDR JB P r T49 C~~m tnc.

66OSene Pen'e;e Bel, PA tee

~

~ "

<v<<<<vyaer'vzv

<1>-45-81 11:14 2158347428<

301 492 4984<0

<<SEA BROWN SOVERI John 8 ANntsio Nce Pits4ent and 00:O.'N. Co41$ ol~

November 21, 1991 BX!

4 4

Mz. Theodore Stern Executive VLco President Westinghouse Electric Corporation li Stanwix Street 5 Gateway Center Pittsburgh>

PA 15222 Dear Nr. Stern>

Wo have received a copy of a letter dated November 14<

1991 (copy attached) from the Nuclear and Advanced Technology Diviaion of Westinghouse Electric Corporation

("Meetinghouse") to the United States Nuclear Regulator'y Commission

{ "NRC").

The letter attaches a "generic vox>>ion" of a customer notLfLcation Letter concerning the discovery of cracked insulators Ln certain ASL Dry Typo Powex f;enter Transformers

("ABL Transformers" ).

The customer notification letter advises that the hsL Tran>>former product line was sold to %38 Power TSD Company Inc.

("ABS") and

'uggests that custom>>rs "pursue" with ABB the matter of cracked insu1ators in the ASI Transformers.

The product line in Question was manufactured by Westinghouse at its Sharon plant until approximately 1912>

some seven years before the Ventuxe Agreement between A>>ca Brown Qoveri Xnc. and Westinghouse dated as of February 14 19S9 ("Ventura Aereem>>nt").

Consequently, as to all Ajii Transformers now Ln existencs no liabilities of any kind were transferred to ABB.

In addition, because the manufacture of all existing ASL Transformers predates the Venture Agreement, the indeaeification provisions of the Venture Agreement require Westinghouse to defend>

indemnify <<nd hold harmzes>>

ASS from and again>>t any claims made against ABB in connection with any AIL Tran>>formers.

The <<ttached customer notLfication letter is thus false and mLB3.eading to the extent it suggests to cu>>tomers that ABB has any responsibility whatsoever for AIL Tranifoaaars, The statement that "Meetinghouse does not have the necessary technical inforfnation" to d9al with the product problem Ls also false

beOAuse, Mith rsspsct to technical information relatine to the ABI Tran>>fonder>><

Westinghouse has at least a license un'>>r the Technology Agreement between Westinghouse and the Joint Uentur ~, dated

<Imyse

I eeaV

~

~

~ St Vl

> II ~ IV

)

k I ilU0% I %C P" IVI AIC Mr Theodore 8tern November 2li 1991 Page 2

The letter to the NHC and the customer-specific version¹ of the "generic" notification letter were tran¹mitted by westinghouse with complete disregard for the accuxacy of their'ontints.

Frior to the transmittal date of the lettoz to the NRC and as early a¹ Novimber 5p 1991'BB gave noticep both ox'ally and in wxiting, to respon¹ih3.I westinghouse persons that the proposed content¹ of the notification letters wore incorrect and likely to cause Ln)ury to ABBI including loss of good vill with ma)or customer¹.

Therefore, Meetinghouse vox'y cleax'ly knew ox should have known of the inaccuracy of the notification letters and the probable injury to ABB that vould result Crom their transmittal, The customer notification letters are already having the effect that could havr been anticipated.

To date, at least two ma)or customers havo approached ABB to inquire as to what ASH intends to do about the problom with the hSL Transformers.

Although ABB vill advise customers of ABB's lack of rosponsibi1ity fox the

product, and will do all that is possible to mitigate the Ln)ury caused by Mastinghouse action p thtre is a need fox prompt, decisive and satisfactory corrective action by Meetinghouse, Mithout waiving any claims it may have for Ln)unctive relief, monetary damages or other remedies under the venture Agreement, in tort> ox otherwise, arising fxom the customer notification lettex'e, hBB hereby demands that westinghouse immidiateiy advise all recipients of the notLfication letters (including the NRC)

,(1) that the letter was wrong and Lll-advised insofax as it states ar implies. that ABB has any responsibility for the ASL Transformexs, and (2) that any claims that customers might havI should be directed to westinghouse and not to ABB.

Xn addition/

please furnish to mi copies oi all customer notification l,itters actually distributed by westinghouse concerning the Ast Tx'ass fonners.

Please furnish copies of the customer notification letters to me, and advise me vhother Westinghouse will take the corrective action domande¹,

on or before November 25 <

1991 i I ncerel Zo R. Attanasio cct william F. Itollg Jrl f Esq< (via fax~ 412-642-EQ05)