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Show Kibbie seeks cost overruns in $19 million suit W.H. Kibbie Inc., formerly JELCO Inc., has filed a $19 million lawsuit in federal court against three of its ex-partn- for impairing bank finflow, cash JELCO ancing and surety bonding caW.H. Kibbie Inc. pacity. seeks to recover losses JELCO allegedly incurred in cost overruns caused by misfeasance management and poor planning of a Wyoming power plant designed by Stone and Webster Engineering Corp. of Boston, Mass. JELCO s trade name and power plant construction division were sold to the MichiBot-tugan based Townsend and earlier this month. The suit recounts events s unwinding .1 ELCOs contract to build the 330 megawatt coal m fired electric plant near Gillette, Wy. The plant, called the Wyodak Project, is being developed by Pacific Power and Light of Portland, Ore. and Black Hills Power and Light of Pierre, So. Dakota. By March, 1977, the suit says, JELCO had spent $5.5 million of its own operating capital to cover cost overruns on the project. It informed the two er pow companies that it would terminate all contract work on the plant to prevent further losses unless the companies agreed to reimburse JELCO. A meeting with the two power plant companies and JELCOs surety agent. Travelers Indemnity, resulted in an agreement for the utilities topa JELCO S3.3 million each on March In. 1977; covet ac- cumulated and forseeablc losses, the suit explained. But by December, 1977, it continues, $4 million of earned contract money was tied up in unprocessed work money, which resulted in a breakdown of essential and critical contract administrative functions, the suit alleges. The action claims Pacific Power and Light failed to make timely process in paying JELCO JELCO claims its cash flow, bank financing and surety bond had been impaired as a result, as well as its fundamental ability to bid and gain - new contracts. Stone and Websters role in the lawsuit stems from its alleged statements to the util- - Utah Agencies laud fare discount The Utah Agencies pledged its full support to United Airlines new reduced fares program, calling it the reducfirst truly system-wid- e tion in the nation. The discount. announced Tuesday, would cut by 40 percent all fares on domestic routes long- - Honored for service B.Z. Kastler, chief cr than 900 miles during weekdays, and on weekends, the reduction would be 30 percent. Reservations must be made 30 days in advance. The Utah Agencies general counsel, David Wilkinson. sent a mailgram to the airline's chief executive, Richard Ferris, congratulating UAL on its bold move in Wilkinson fare reduction. also said in the message, "We hope your experiment proves profitable and that in time circumstances allow you to ease one or two of the fare restrictions and expand the fares to a few of our larger markets somewhat less than 900 miles in length." Wilkinson said he had in mind Los Angeles and San Francisco when he made reference to shorter routes. T ex- ecutive officer of Mountain Fuel Supply, was honored at the monthly meeting of the Utah Agencies last week for his 26 years service to that organization. He is retiring from the group. Kastler, who served longer than any other mem- ber. received a letter from Governor Mathcson thanking him for his incalcu-abl- e contribution to the Utah Agencies. The Chamber of Commerce presented Kastler a silver platter and the city gave him a plaque inscribed with a word of thanks. O'' yv vasA op ,0,'V o' "P V ' M itics that JELCO be terminated. thus doing direct economical damage to JELCO. Travelers was named in the suit for conduct that materially prejudiced the economic position and legal rights of JELCO and for its unilateral and separate with Pacific Power, UMWA permitting Pacific Power to withhold JELCOs earned con-t:;- u t funds which would otherwise extinguish or preat-- b reduce debt between JELCO. and Travelers. The suit asks that JELCO hi leased from its debts to Travelers and also for $19 million in damages. 1 suing Utah firms Emko Construction Inc. and JELCO Inc. are the defendants of a law suit filed in federal court last week, by trustees of the United Mine Workers of America who are seeking $4,759 in outstanding pension payments from the two construction firms. Since May of 1975, the suit claims, Emko and JELCO have been delinquent in payments to the pension fund, as stipulated in the National Coal Mining Construction Agreement of 1974. The agreement required construction firms to pay 90 cents per employee per hour to the pension fund for the first year of the agreement; that charge has escalated to $1.56 per hour per employee. The UMWA requests payment of the outstanding funds plus interest and attorneys fees. BOWERS HAS YOUR STYLE |