CBC News
WebPosted June 20 2003
FREDERICTON —

NB Power sues supplier

NB Power is in a multimillion dollar legal fight over a set of transformers that it says are defective.

The Crown corporation is suing Westinghouse, the company that sold NB Power the devices. NB Power bought 11 transformers from Westinghouse between 1972 and 1975.

Eight of them – each the size of a two-storey house – went to generating stations at Point Lepreau, Coleson Cove and Dalhousie.

The corporation says in court documents that the units should have worked for 49 years, but they've already needed repairs or replacement.

So NB Power is suing Westinghouse. In documents filed in Court of Queen's Bench in Fredericton, the power company is asking for $14 million to repair or replace the transformers.

NB Power also wants the judge to award punitive damages, claiming the equipment could have led to "catastrophic failure" at the three power plants, endangering the lives of employees and nearby residents.

In its documents, Westinghouse says the transformers were not guaranteed for 40 years and if they broke down, it's because NB Power didn't do proper maintenance. Westinghouse also says if there were defects, no one was in danger.

The company offered to settle the suit last fall for $2.75 million, but so far, there's no deal, and the dispute goes to trial in September.

NB Power won't discuss the case and Westinghouse's lawyer couldn't be reached for comment.

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