Pge Sues Westinghouse Over Trojan Plant's Cracks

PORTLAND - The operator of the Trojan nuclear plant has accused Westinghouse Electric Corp. of fraud, saying it sold a defective steam generator system that led to the plant's shutdown 18 years early.

"We felt going to court was the only option left," said Steve Sautter, spokesman for Portland General Electric Co.

No damages were listed in the lawsuit, filed yesterday in U.S. District Court in Pittsburgh. Cost estimates to close the plant early have ranged to more than a half billion dollars.

But a Westinghouse spokeswoman at company headquarters in Pittsburgh called the suit groundless.

"Obviously, we don't think the allegations and claims have any merit or any factual basis," said Mimi Limbach.

PGE and Westinghouse have been accusing each other since the utility decided Jan. 4 to shut down Trojan because of microscopic cracks in steam generator tubes.

The 1,100-megawatt plant was built in the early 1970s on the Columbia River at Rainier, about 40 miles northwest of Portland. It started producing power in December 1975 but had been plagued by problems in recent years.

The lawsuit claims Westinghouse knew the steam generator designed for the nuclear plant was faulty and steam tubes were subject to corrosion and cracking.

The lawsuit also claims that Westinghouse withheld information about the defects. The steam generator was supposed to last at least 40 years, but microscopic cracks in steam tubes began causing

problems before 1991, when the plant was closed for a year in an effort to repair them.

"We contend that the design, material, and workmanship contained serious defects and that Westinghouse was aware of those defects when they sold it to us," Sautter said.

The lawsuit alleges breach of contract, negligence, fraud, negligent misrepresentation and violations of federal and state racketeering statutes.

Limbach said Westinghouse has successfully defended similar allegations in lawsuits by other utilities. She said a federal court in South Carolina last week dismissed charges by three South Carolina utilities: Carolina Power and Light, Duke Power Co. and South Carolina Electric and Gas.

However, she noted the lawsuit has not been dismissed, and similar lawsuits are under appeal.

"It's easy to make negative allegations 20 years after the fact with 20-20 hindsight," Limbach said. "But the facts are that Westinghouse designed, produced and delivered steam generators based on material and technologies then available. We've fulfilled our contract, we've honored our warranties, and we've acted in good faith."

Two Westinghouse officials say PGE rejected repeated offers to fix or replace the steam generators and assume responsibility for the plant's operations.

The utility said allowing Westinghouse to run Trojan would have required PGE to give up the right to sue, and would have left PGE financially liable for any accidents caused by Westinghouse.