ATTACHMENT 3

Memorandum: Mr. John Rowe, Chief Executive Officer

Unicom

October 5, 2000

Dear Mr. Rowe:

This unsolicited letter documents my views on the events leading to the issue of Stop Work Order ComEd placed on GE in 1997, and my role in that event.

Background

I last joined ComEd in September of 1997 and worked at the Downers Grove Office until receiving my lack of work status in June of 1998. I had worked for the USNRC for seven years prior to joining ComEd. There was a major effort exerted by ComEd to convince me to join ComEd as the Engineering Assurance Group Supervisor. I first joined Commonwealth Edison in January of 1971, right after acquiring my graduate degree at University of Illinois. I was the nuclear engineer responsible for the twin startup of Quad Cities units and my principal responsibilities were for the Unit 1 Reactor. I was the first engineer (non-operational staff) in Commonwealth Edison who obtained a SRO license. I left ComEd in 1974, due to my son's medical reasons, yet remained a friend with ComEd colleagues and management for many years to come. After I left Commonwealth Edison, I worked for Bechtel Power, General Electric and NRC before being recruited by ComEd in 1997. I believed in the nuclear industry and committed my professional life to the cause.

The Issue of GE Stop Work Order

Soon after I joined ComEd, my supervisor, Mr. Renuart, advised me of the status of the stop work order (SWO) ComEd had placed on all GE's work. I studied the SWO and became aware of the issues and consequences. My mission was to try to resolve the SWO. It was clear that indefinite prolongation of the SWO would not be to the best interest of ComEd. However, we could ill afford to take the issues lightly and circumvent our own QA's findings. Due to my prior work history, management position at GE, and seven years tenure with NRC, it appeared logical that I would spearhead that effort. I led our team and arranged to meet with GE management trying to convince them that the findings of our QA needed to be resolved to the satisfaction of our QA organization.

My First Encounter with Mr. Helwig

We met in San Jose soon after I joined ComEd. Mr. Ed Netzel, a QA Manager, represented the ComED's QA views. During the meeting that we held GE's team was led by Mr. Dave Helwig. I stressed that there needed to be a compromise and the result should be based on the principle of win-win proposition and a win-lose or lose-lose proposition were not alternatives we were seeking. Of the various statements I made that day in that meeting, Mr. Helwig only objected to the lose-lose proposition. (I am enclosing the copy of the file I used to discuss ComEd's position in that meeting) He stated that GE was not in a losing position as ComEd engineers were circumventing and bypassing the SWO, and had been requesting GE to do the work in spite of the SWO. With that in mind, he saw no incentives to modify his positions, change his path or improve his QA program. He strongly felt that his programs, his products were flawless and needed no room for improvement. However, his staff agreed that they would modify their positions and would comply with most of our requirements. After working with GE's manager of QA and Engineering Manager, they met our requirements. It made no sense to me why Mr. Helwig would be upset by the use of the word "lose-lose" proposition. Until GE's products improved to an adequate quality level, our own engineering staff would render the quality measures. This was a stop gap measure until GE would clean up their act (under Mr. Helwig's domain) and improved their QA program. During the working session with various GE managers (James Klapproth, R. Nichols and others), they did tell us that ofcourse GE was losing as they had allocated a great amount of resources to meet our requirements. Working long hours including weekends to improve documentation or elevating their own QA to a higher plateau had placed a great burden on GE. However, they realized the enhancements were necessary as GE's reputation in the nuclear industry was at stake. GE's own management team revealed that they too were dismayed with Mr. Helwig's comments. They confided any other posture would result in confession of guilt and Mr. Helwig would not be one to accept that posture.

Later that day, I met with Mr. Helwig sin a one-on-one meeting and tried to appease his views and soften his stance. I explained to him that the reason I had contacted Dr. Steve Specker (GE's Vice President and Mr. Helwig's Manager) were because a) I personally knew Dr. Specker, and b) when I had tried to call Mr. Helwig from the Downers Grove Office, I was advised that he was not interested to talk to me. This led me but no choice to try to get Dr. Specker's intervention to resolve this issue. I needed a confirmation of our agenda and our meeting prior to our team's departure to San Jose. In response to these views, Mr. Helwig reflected that this misunderstanding was due to GE's internal problem and he did not appear to be upset over this issue. If there is one common element and a uniform view held by all those who have known me in the nuclear industry is my professionalism and tactfulness in resolution of conflicts.

Return to Illinois

Upon my return to Illinois and to the Downers Grove office, my management was extremely pleased that we accomplished our mission. GE had agreed to our terms to improve their QA program and there were resolutions to the issues forming the bases of the SWO. There was a probationary period where we ComEd needed to apply our QA stamp on all works performed by GE until such time that the GE's work would meet an acceptable QA standards.

All of my interfaces with GE were extremely pleasant, professional and effective. Mr. Klapproth and I had known each other from earlier years both at GE when I was a manager, and when I was a Project Manager working for the NRC. I had inspected GE's fuel fabrication facility at Wilmington and Mr. Klapproth was our main contact during a one week inspection effort. Even as a federal agent inspecting Mr. Klapproth's organization and his staff, we had maintained an effective, friendly and professional relationship. When the announcement was made that Mr. Helwig was recruited by ComEd, it surprised me to a great extent. I was surprised that an arrogant person who had championed the cause to denounce customer (ComEd) quality requirements would be placed in a senior management for the very organization whom he held that position. It appeared unreasonable that someone who was anti quality improvement in the nuclear industry would be placed in a position to improve the quality of multiple units of one of the largest nuclear utilities in the world. However, this was a decision made by Mr. Kingsley and it must have been endorsed by you.

Mr. Renuart's Comments

One of the first things my supervisor told me after Mr. Helwig joined ComEd was that Mr. Helwig was very much bothered by my performance while I had met him in San Jose. I had told Mr. Renuart that I had tried to console him when I had sought him in a one-on-one session in San Jose. Mr. Renuart clearly conveyed to me that that was not his impression and he was very upset that we ComEd had forced him to do something he did not want to do.

ComEd's Reorganization

On one occasion I met with Mr. Helwig in his new position at ComEd and he was very cool and non-responsive to my dissertation. I knew then that he had malevolent intentions and based on the stories that I had heard about him, the picture appeared clear. When the talk of the reorganization and cut back surfaced, I knew that my position at ComEd was untenable. I knew that he was a man with the ax and he cared not whom he cut and for what reason. When I received my lack of work notice, it was a sad day in my life. I had never before been placed on lack of work status. However, I chose not to fight or cause a problem for ComEd. I full well knew that the Commonwealth Edison I used to work had drastically changed. The words "hard work, dedication, loyalty, conscientious effort, 120%" were words with no meaning or substance in the new ComEd. I consider the likes of Mr. Kingsley and Mr. Helwig unworthy of my time or energy wanting to fight the system.

I am currently a member of the High-Tech industry stepping on the ladders that would escalate me to plateaus that I deserve. I also am a faculty teaching management courses in the MBA and similar programs. Although I am a gentle person and refrain from entering a fight, I am a highly principled and conservative individual. I will have zero hesitation to enter into a class action suit against Mr. Helwig and ComEd when I deduce that other's rights are taken away at will by Mr. Helwig and Kingsley. There is no question in my mind that Mr. Ed Netzel, and myself were victims of Mr. Helwig's wrath for forcing him to do something against his wish for the benefit of ComEd. This is a foul practice as I see one. It appears that the circle of victims has expanded to include Mr. Renuart and now Mr. Shirani. I have the utmost respect for Mr. Shirani and also for Mr. Renuart. Mr. Renuart became a pawn at the hands of Mr. Helwig and Mr. Hosmer. He had no choice but to let me leave the company. I understood that.

However, Mr. Rowe, it is my intention that if Mr. Helwig stated any derogatory and untrue statement about my performance to anyone including my former employer, NRC, that I would seek major compensation for damages inflicted upon me and my name by Mr. Helwig and ComEd. As a former federal inspector and a project manager, I am fully cognizant of the Freedom of Information Act domain, and will have access to the content of all meetings held between the NRC and its licensees, including ComEd.

As the CEO of a reputable and a successful company, I place the responsibility of ascertaining a fair play and compliance with the employment and discrimination laws right at your doorstep. The buck stops on your desk. Although Mr. Helwig and Mr. Kingsley are vitally important to the success of ComEd and Unicom, it is just as important that ComEd assures that these gentlemen follow the federal guidelines for discrimination and fair employment practices. As I close, I would like to reiterate that I would join forces with Mr. Shirani, Mr. Renuart, Mr. Netzel and others who were recklessly and vehemently inflicted for safeguarding the interest of ComEd by a man who has acted more like a seven-year old child. I am confident that you will take decisive and appropriate measures to assure the remaining members of that infamous SWO are protected from such demeaning and discriminating employment practices.

Sincerely,

 

 

Kombiz Salehi, President

FPI

P.O. Box 1359

Santa Clara, CA 95052