ML20151S733

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Advises That NRC Issued Encl Info Notice to NRC Licensee Re Substandard & Refurbished Circuit Breakers Recently Identified by Licensee & Mfg on 880708
ML20151S733
Person / Time
Issue date: 07/13/1988
From: Zech L
NRC COMMISSION (OCM)
To: John Miller
OFFICE OF MANAGEMENT & BUDGET
Shared Package
ML20151P423 List:
References
NUDOCS 8808160085
Download: ML20151S733 (4)


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  • UNITED STATES

!'y,,,, NUCLEAR REGULATORY COMMISSION

- 1 g W ASHINGT ON, D. C. 20555 k.k #

\.\,,.* July 13,1988 CHAIRMAN The Honorable James C. Miller III Director Office of Management and Budget Washington, D. C. 20503

Dear Mr. Miller:

On Friday, July 8, 1988, the NRC issued an Information Notice to NRC licensees concerning substandard and refurbished circuit breakers recently identified by an NRC licensee and the manufacturer. Our information indicates that the distributor placed an order with a local supplier who bid the lowest price and promised the quickest delivery. Because of the potential that other Federal departments and government agencies may have purchased similar breakers, I am providing a copy of our Infomation Notice to you for appropriate dissemination.

The problem with these circuit breakers, along with recent problems encountered by the nuclear industry concerning substandard fasteners, highlights a need for possible interdepartment and interagency cooperation within the government. Recently, in testimony before the House Subcomittee on Oversight and Investigations, the NRC Executive Director for Operations (E00), Victor Stello, Jr., comitted to helping facilitate a meeting between interested government agencies concerning substandard fasteners.

In accordance with the ED0's comitment, the NRC stands ready '.o participate in a meeting and/or support any other effort you may wish to initiate in this regard. If you desire additional infonnation, I would be pleased to discuss this matter with you personally. Mr. Stello would also be pleased to address these issues with members of your staff or other officials if you desire.

Sincerely, (W d.4 % ,

Lando W. Zech, .

Enclosure:

Information Notice 8000160005%$01 P

RE ENCE PDR C

UNITED STATES NUCLEAR REGULATORY COMMISSION OFPICE OF NUCLEAR REACTOR REGULATION WASHINGTON, D.C. 20555 July 8, 1988 NRC INFORMATION NOTICE NO. 88-46: LICENSEE REPORT OF DEFECTIVE REFURBISHED CIRCUIT BREAVERS

. Addressees:

All holders of operating licenses or construction permits for nuclear power reactors.

Purpose:

This information notice is being provided to alert addressees of licensee reported information that defective refurbished electrical equipment, such as circuit breakers (CBs), may have been supplied to nuclear power plants.

It is expected that recipients will review this information for applicability to their facilities and consider actions, as appropriate, to avoid similar problems. However, suggestions contained in this information notice do not constitute NRC requirements; therefore, no specific action or written response is required.

Description of Circumstances:

Pacific Gas and Electric Company (PG&E) has informed NRC that it placed a purchase order for 30 new, non-safety-related, molded-case, KHL 36125-type CBs manufactured by the Square D Company (Square D) with a local electrical distributor. These CBs were intended for use in non-safety-related applica-tions at PG&E's Diablo Canyon Nuclear Power Plant.

According to PG&E, the distributor in turn placed the order with a local sup-plier who bid the lowest price and promised the quickest delivery. The CBs were delivered directly to the Diablo Canyon plant by the supplier; the dis-tributor did not have an opportunity to inspect the CBs. Square D, aware of the purchase order, questioned its failure to receive an order for the unique vintage KHL 3612E-type CBs. With PG&E's permission, Scuare D inspected the CBs and determined that PG&E had been giver refurbished, rather than new, CBs.

Square D tested and performed detailed examinations of the CBs, and the results reported by PGLE follow.

A. Physical Examination The yellow side labels used on the CBs were suspect in that the CB model numbers were typed on the labels whereas authentic labels are preprinted.

The CBs departed from normal appearance in other respects as well.

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IN 88-46 July 8, 1988 Page 2 of 3 The individual CB cases and each of the CB components appeared to be Square D products; however, the individual CBs incorporated components of different years of manufacture. Each CB bore evidence of having been opened and reassembled.

B. Electric Testing Square D subjected the CBs to five electrical tests. None of the C8s complied with Square D or Underwriters' Laboratory (UL) specifications for all of the tests, and several of the CBs were out of tolerance on each of the tests. At least four of the CBs failed to trip under circum-stances in which they are designed to trip.

Discussion:

In the past, there have been instances in which licensees purchased commercial-grade components, such as CBs, relays, trip units, and other electrical compo-nents, from electrical distributors and have received components that did not meet the original purchase order requirements. NRC has received additional information indicating that the problem of surplus or defective refurbished CBs may also apply to CBs sold under other manufacturers' names (e.g., General Electric, Westinghouse, ITE, Cutler Hamer, and Sylvania).

The electrical suppliers involved in refurbishing and sales of circuit breakers, including the Diablo Canyon, Square D circuit breakers, apparently include five California corporations. These companies are (1) General Circuit Breaker &

Electric Supply, Inc., (2) HLC Electric Supply Co., Inc., (3) Pencon Inter-national, Inc., doing business as General Magnetics / Electric Wholesale, (4)

California Breakers, Inc. , and (5) Anti-Thef t Systems, Inc., doing business as ATS Circuit Breakers and as AC Circuit Breaker-Electrical Supply.

NRC has an investigation and vendor inspection in progress at the above cor.pa-nies. On the basis of the information developed to date, a oreliminary list of customers of the five companies including a list of nucit .c utilities (where available) is provided in Attachment 1. Attachment 2 contains a list of original equipment manufacturers whose names may have been used on surplus or refurbished equipment sold as new equiprent. The information included in Attachments I and 2 is only preliminary and is provided tn assist licensees in reviewing the potential of having procured suspect electrical equipment at their facilities.

Licensees are reminded of the requirements to ensure that procured items rest the relevant specifications and codes and are suitable for the intended appli-cation. Licensees should consider, as a matter of prudence, the need to inquire of and to verify with their authorized distributors the sources of procured materials, equipment, and components. Licensees may meet these requirements by effectively implerenting their quality assurance (QA) programs, particularly in the areas of vendor evaluations, vendor surveillances, receipt inspection, bench tests, and post-installation tests.

IN 88-46 July 8, 1 Page 3 of NRC is gathering additional information to determine what further actions are necessary. The primary purpose of this information notice is to alert addressees of the situation as soon as possible. The NRC is considering issuing a bulletin to followup on this information notice when the NRC has sufficient information to define requirements.

No specific action or written response is required by this information notice.

If you have any questions about this matter, please contact one of the techni-cal contacts listed below or the Regional Administrator of the appropriate regional office.

% N Charles E. Rossi, Director Division of Operational Events Assessment Office of Nuclear Reactor Regulation Technical Contacts: K. R. Naidu, NRR (301) 492-0980 Jaime Guillen, NRR (301) 492-1170 Attachments:

1. Preliminary List of Custerers (Intermediate Suppliers) of Suspect Electrical Equipment
2. Preliminary List of Original Equipment Manufacturers Phose Names May Have Been Used on Surplus or Refurbished F:quipment Sold as New Equipment
3. List of Recently Issued NRC Information Notices i

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Attachment 1 IN 88-46 July 8, 1988 Page 1 of 2 PRELIMINARY LIST OF CUSTOMERS (INTERMEDIATE SUPPLIERS) 0F SUSPECT ELECTRICAL EQUIPMENT Organization Location Nuclear Utilit (if available Westinghouse Electric St. Louis, M0; Boston, MA; Supply Co. (WESCO) Boise, ID; Atlanta, GA; Charleston, SC; Panama, FL; Santa Clara, CA; Fresno, CA; Sacramento, CA; Shreveport, LA; Green Bay, WI; Elk Creek, IL; Albuquerque, NM; Mobile, AL; Ft. Worth, TX; Baton Rouge, LA; Birmingham, AL; East Hartford, CT; Kokomo, IN; Jackson, MS; Milwaukee, WI; Beaumont, TX; Nashville, TN; Skelton, WV; Albany, NY; Hartford, CT; Portland, ME; St. Paul, MN; Minneapolis, MN; other locations Power Conversion Huntington Beach, CA Rockwell International Los Angeles, CA Arkansas Power and Light Little Rock, AR AND Southern California San Clenente, CA; SONGS Edison other locations Phoenix Electric Phoenix, AZ Rensenhouse Electric Topeka, KS i Breaker and Control Houston, TX General Electric Company Baltimore, MD; Houston, TX; Landover, MD; Chantilly, VA; Emeryville, CA; Elmhust. IL Southern Electric Alexandria, LA Supply Company Cleveland Electric Company

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Attachment 1 IN 88-46 July 8. 1988 Page 7 of 2 PRELIMINARY LIST OF CUSTOMERS (INTERMEDIATE SUPPLIERS) 0F SUSPECT ELECTRICAL EQUIPMENT Organization Location Nuclear Utilit (if available Stokley interprises Norfolk, VA Taylor Electric Company Portland, OR Graybar Ventura, CA; Atlanta, GA Hughes Aircraft El Segundo, CA Houston, TX Houston Electric Distribution Company Atlanta, GA; Knoxville, TN ITE Electrical Products Xnudson Corporation Los Angeles, CA Georgia Power Company Milledgeville, GA W

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e Attachment 2 IN 88 46 July 8, 1988 Page 1 of 2 PRELIMINARY LIST OF ORIGINAL EQUIPMENT MANUFACTURERS WHOSE NAMES MAY HAVE BEEN USED ON SURPLUS OR REFURBISHED EQUIPMENT SOLD AS NEW EQUIPMENT Model Number Equipment Description Manufacturer B19.5; B22 Heater for overload relay Square D-12HGA11552 Auxiliary relay General Electric Exide Company NX400 V00014 Mercury lamps Spectro Inc.

REN15 15-amp 250-V fuse Bussman Company N05-30 30-amp 600-V fuse Bussman Company FSN 5925-628-0641 Circuit breaker (unknown)

DB-50 Trip unit Westinghouse DB-25 400-amp circuit breaker Westinghouse Westinghouse HKB3150T Trip unit KB3250F Frame Westinghouse Westinghouse FB3020 Circuit breaker Westinghouse FB3070 Circuit breaker Westinghouse FB3050 Circuit breaker Westinghouse EHB3040 Circuit breaker Westinghouse EHB3025 Circuit breaker Festinghouse LBB3125 Circuit breaker HKA31250 Trip unit Westinghouse Westinghouse JA3200 Circuit breaker Westinghouse EHB2100 Circuit breaker Westinghouse CAH3200 Circuit breaker

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6 Attachment 2 IN 88-46 July 8, 1988 Page 2 of 2 PRELIMINARY LIST OF ORIGINAL EQUIPMENT MANUFACTURERS WHOSE NAMES MAY HAVE BEEN USED ON SURPLUS OR REFURBISHED EQUIPMENT SOLD AS NEW EQUIPMENT Manufacturer Model Number Equipment Description Westinghouse 225N Navy trip units ITE EF-38100 100-amp circuit breaker General Electric AK-2-75-3 Circuit breaker General Electric AK-2 Circuit breaker General Electric AK-1-50 Circuit breaker General Electric AK-1-75 Circuit breaker General Electric B; TD0; TFJ Circuit breakers General Electric TCVVFS Circuit breaker ITE ET; KA Circuit breakers Cutler Hammer -- Circuit breakers Zinsco/Sylvania -- Circuit breakers Bryant -- Circuit breakers Murry -- Circuit breakers Federal Pacific Electric -- Circuit breakers Company

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Attachment 3 IN 88-46 July 8, 1988 Page 1 of 1 LIST OF RECENTLY ISSUED NRC INFORMATION NOTICES Date of Information Issuance Issued to Notice No. Subject Problems In Protective 7/7/88 All holders of OLs 88-45 or cps for nuclear Relay'and Circuit Breaker Coordination power reactors.

Mechanical Binding of 6/24/88 All holders of OLs 88-44 or cps for nuclear Spring Release Device in Westinghouse Type power reactors.05-416 Circuit Breakers Solenoid Valve Problems 6/23/58 All holders of OLs 88-43 or cps for nuclear power reactors.

Circuit Breaker Failures 6/23/88 All holders of Ols 88-42 or cps for nuclear Due to Loose Charging Spring Motor Founting Bolts power reactors.

Physical Protection 6/22/88 All holders of OLs 88-41 or cps for nuclear Weaknesses Identified power reactors.

Through Regulatory Ef-fectiveness Reviews (RERsl Examiners' Handbook for 6/22/88 All holders of OLs 88-40 or cps for nuclear Developing Operator '

Licensing Examinations power reactors.

LaSalle Unit 2 Loss of 6/15/88 All holders of OLs 88-39 or cps for BWRs.

Recirculation Pumps With Power Oscillation Event Failure of Undervoltage 6/15/88 All holders of OLs 88-38 or cps for nuclear Trip Attachment on General Electric Circuit Breakers power reactors.

Flow Blockage of Cooling 6/14/88 All holders of OLs ,

88-37 or cps for nuclear Water to Safety System Components power reactors.

88-36 Possible Sudden Loss of RCS 6/8/88 All holders of OLs Inventory During Low Coolant or cps for PWRs.

Level Operation OL = Operating License CP = Construction Permit

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.' EXECUTIVE OFFICE OF THE PRESIDENT l* k)

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oFFCE of MANAGEMENT ANo BUDGET W ASMNGToN. O C. 20503 JUL 2 8 588 Honorable C. William Verity See:retary of Commerce Washington, D.C. 20230

Dear Bill:

On July 15, 1988, I received the enclosed letter from Lando Zech, Chairman of the U.S. Nuclear Regulatory Commission (NRC),

indicating that the NRC has found examples of potentially frau-dulent electrical equipment which has been supplied to commercial nuclear power plants. Conversations with the NRC indicate simi-lar questionable equipment may have been delivered to other Federal agencies. The complete scope and severity of this prob-lem is currently being pursued through inspections and investiga-tions by the NRC, the private sector, and other Federal agencies.

For your information, Information Notices and Bulletins on this problem issued by the NRC during the past year are also l

t enclosed. As you can see from the enclosures, the scope of po-l tantial counterfeit, fraudulent and substandard material covers a wide range of components and equipment.

In order to help you deal with problems that may be encoun-tered by your agency, I am calling together a working group of all those affected. Attendance should include programmatic and investigative individuals from each agency. The purpose of this meeting would be to establish appropriate review procedures, in- ,

cluding a mechanism for coordination and sharing of information.

I have scheduled this meeting for August 3, 1988, at 10:00 a.m.

in Room 474 of the Old Executive Office Building.

If you have any further questions, please contact Bob Dawson's staff at 395-3964. I would also request that you pro-vide Mr. Dawson's staff with the names and birthdates of the individual (s) you expect to attend the meeting.

incerely

e. &yours, J es C. Miller III ctor Enclosures NRC Information Notices and Bulletins 1

8DENTICAL LETTER SENT TO THE FOLLOWING:

i ADDRESSEES FOR LETTER DATED:

The Honorable C. William Verity Chairman The Nations) Honorable Transportation Jim Burnett,fety Sa Board Secretary of Comerce Washington, D.C. 20230 800 Independence Avenue, S.W.

Washington, D.C. 20594 The Honorable Frank C. Carlucci Admiral Paul A. Yost, Comandant Secretary of Defense The Pentagon -

U.S. Coast Guard Room 3E880 2100 2nd Street, S.W.

Washington, D.C. 20301-1000 Washington, D.C. 20593-0001 The Honorable John O. Marsh, Jr. Mr. John A. Pendergrass, Assistant Secretary of the Arry Secretary of Labor The Pentagon Occupational Safety and Health Room 3E718 Administration Washington, D.C. 20310-0100 Washington, D.C. 20210 The Honorable William L. Ball, III The Honorable Anthony M. Frank Secretary of the Navy United States Postal Service Washington, D.C. 20350 475 L' Enfant Plaza, W.S.W.

The Honorable Edward C. Aldridge, Jr.

Secretary of the Air Force Mr. James Abdnor, Administrator The Pentagon Small Business Admin'.stration Room 4E871 1441 "L" Street, N.W.

l Washington, D.C. 20330-1000 Room 1000 Washington, D.C. 20416 The Honorable John S. Herrington Department of Energy The Honorable James H. Burnley, IV

Room 7A257 Oepartment of Transportation 1000 Independence Avenue, S.W. 400 7th Street, S.W.

Washington, D.C. 20585 Washington, D.C. 20590 The Honorable Edwin Meese, !!! The Honorable Terrence Scanlon, Chairman Department of Justice Consumer Product Safety Comission 10th Street and Constitution Avenue, N.W. 5401 Westbard Road Washington, D.C. 20530 Bethesda, Maryland 20207 l

l The Honorable Daniel Oliver, Chairinan The Honorable Elaine L. Chao l Federal Trade Comission Federal Maritime Comission l

6th Street and Pennsylvania Avenue, N.W. 1100 "L" Street, N.W.

Room 444 Room 12313 I

Washington, D.C. 20580 Washington, D.C. 20573 The Honorable John Alderson, Acting Mr. David C. O'Neal, Deputy Assistant

[ Secretary for the Mine Safety and Administrator l

General Services administration Health Administration

' 4015 Wfison Boulevard 18th and "F" Str-.t. N.W.

Room GS6137 Room 622 Washington, D.C. 20405 Washington, D.C. 20573

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- 2-The Honorable Anne Brunsdale, Acting Chairman U.S. International Tradt Commission 500 "E" Street, S.W.

Washington, D.C. 20436 The Honorable Heather J. Gradison, Chairman Interstate Comerce Commission 12th Street and Constitution Avenue, N.W.

Washington, D.C. 20423 Dr.'Jarms C. Fletcher, Administrator National Aeronautics and Space Administration Headquarters, Code A Washington, D.C. 20546 Mr. Ernest Ellis, Deputy Director for Quality Assurance Defense Logistics Agency Building 3 Cameron Station Alexandria, Virginia 22304-6100

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