ML20003B469
| ML20003B469 | |
| Person / Time | |
|---|---|
| Site: | Three Mile Island  |
| Issue date: | 12/06/1980 |
| From: | Donofrio F PENNSYLVANIA ELECTRIC CO. |
| To: | |
| Shared Package | |
| ML20003B456 | List: |
| References | |
| NUDOCS 8102120156 | |
| Download: ML20003B469 (55) | |
Text
. . PN/ME Stctcm:nt C
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Testimony of F. A. Donofrio 7-)
%.)
Q. Please state your name and address.
A. My,name is F. Allen Donofrio. My business address is 1001 Broad Street, Johnstown, Pennsylvania 15907.
Q. By whom are you employed and in what capacity?
A. I am employed by Pennsylvania Electric Company
("Penelec") as Comptroller.
Q. Please describe your educational and professional background.
,- A. A summary of my educational and professional
'N) ~'
background is set forth on Appendix A attached to this testimony.
Q. Please describe your duties as Comptroller at Penelec.
A. As Comptroller, I am directly responsible for all accounting books and records of the Company and the "ac-counting controls and procedures which safeguard the assets of the Company and assure accurate financial records and j reports, and for developing and monitoring budgets and assuring proper cost controls. My present position requires l ,_,
interfacing with all Penelec functions as well as accounting
( )
and financial personnel at the parent company L"GPU") and GPU Service Corporation ("GPUSC") .
8102120%h
e 4 Q. What has been the nature and scope of your in-O volvement in the planned management combination of Penelec and Metropolitan Edison Company (" Met-Ed")?
A. Shortly after the announcement of a combined management structure on January 17, 1980, W. A. Verrochi, designated President and Chief Operating Officer of the combined management organization, formed a committee to gather information and conduct various analyses in prep-aration for eventual implementation of the announced plan.
This committee, consisting of F. J. Smith (Met-Ed), R. W.
Conrad (Penelec) and myself, as project coordinator, sought and obtained input from various officers and other personnel at Penelec, Met-Ed, GPUSC, GPU and sources outside of the GPU System, including in particular Theodore Barry & Associ'h*tes i
(which was conducting a management audit of the GPU System for this Commission) in order to formulate a rational strategy for implementation.
One of my contributions to this team effort, consistent with my present corporate responsibilities, has been to quantify the impact of the planned combined manage-ment and the reorganization of the operating divisions of Penelec and Met-Ed, including the development of accounting procedures, expense savings, avoided costs and cost allocation l
formulae.
3- j Q. What is the purpose of your testimony in this O
V proceeding?
A. In line with my contributions thus far to the development of the combined management organization and the planned divisional reorganization, the purpose of this testimony is to provide specific information and details on:
(1) the estimated potential cost savings that can be realized by the management combination and the divisional reorganizaton; (2) a quantification of the anticipated costs projected to be avoided due to the management combination and divisional reorganization; (3) the ratemaking and financing handling of the companies under the combined management organization;-end (4) allocation of compensation and fringe benefit costs for work performed which has not been identified with a specific company or project.
Q. Have you made an estimate of the potential-cost savings and cost avoidance that can be accomplishedeby those two planned programs?
A. Yes. I estimate that $18 million of potential savings and cost avoidance can be realized . rom the planned management combination and divisional reorganization.
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Q. Please provide first of all a break-down of l
() the cost savings expected to result from the combined Penelec/ Met-Ed management and divisional reorganization.
A. It is our current projection that approximately
$9.6 million can be saved by reason of the management combination and divisional reorganization. These savings would result from the reduction of 247 employees in the supervisory, exempt, non-union /non-exempt and union job classifications. PN/ME Exhibit 7 shows the development of this projection based upon the attribution of certain payroll, fringe benefits, materials and supplies, transportation and miscellaneous expenses to the various positions that will be eliminated.
Q. Please provide a break-down of the costs expected to be avoided by virtue of the management com-bination and divisional reorganization.
A. In our projections in this area of cost control, we have used the term " cost avoidance" to mean expenses that would otherwise be incurred in the absence of any managepent combination. Without the combined structure, it would be necessary to duplicate staffs in Penelec and Met-Ed in order to achieve reasonable operating, productivity, conservation, procurement, customer service and communications objectives.
Therefore, the economic benefits of the planned combination
[]) include " cost avoidance" dollars related to employee increases which would be needed in the absence of the combination.
PN/ME Exhibit 8 shows projected cost avoidance of up to
0
$7.7 million which would result from the avoidance of up to 205 positions in the supervisory, exempt, non-union /non-exempt and union categories which would be needed in the absence of the management combination. The $7.7 million cost avoidance has been developed by attributing certain payroll, fringe benefits, materials and supplies, trans-portation and miscellaneous expenses to the avoided positions.
The result of this process yields potential cost avoidance savings of up to $2.8 million in generation, $1.9 million in transmission and distribution; $1.1 million in conservation and load management, $.4 million in rate case management,
$.4 million in policies and procedures, $.7 million in materials management and $.4 million in the communications area. ---
Q. How are financings and rate case filings expected to be handled under the planned combined management structure?
A. As Mr. Dieckamp has previously indicated, the new structure is designed to have a single group of officers
[ and key corporate staff manage both Pennsylvania based i
operating companies in the GPU system under the new names of Pennsylvania Electric Company-East ("Penelec-East") and Pennsylvania Electric Company-West ("Penelec-West").
While the companies will have common officers and
() directors, they will be completely distinct corporate entities
i 1
for all purposes, including accounting, financings and rate
() filings. Penelec-East and Penelec-West will obviously be treated separately and individually in the consideration of the appropriate timing and amounts of future rate requests 4
before the Pennsylvania Public Utility Commission ("PUC")
and the Federal Energy Regulatory Commission ("FERC").
Similarly, each of the companies will stand alone in the determination of the amount, timing and terms of their respective securities issuances.
Q. Please describe the payroll accounting methods you intend to utilize for the combined management personnel.
A. Each of the common officers and key corporate
() staff under the new structure will be' designated as an -,
employee of either Penelec-East or Penelec-West for purposes of payroll administration and will receive compensation and employee benefits solely from that company. When a common i officer or key staff person performs specific work for a particular company, his or her compensation and fringe =
benefits will be charged directly to that company. Present j and future employees will be required to maintain time records specifying for what company or project work was done, and their compensation and associated overheads will be allocated to the specific project and company indicated ~on their records.
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Where work performed is not identified with a specific company or project, compensation and overhead costs of each employee will be allocated between Penelec-West and Penelec-East based on the type and nature of the services:
(1) transmission and distribution related costs will be allocated on the basis of the gross electric transmission and distribution plant of the two companies at the end of the preceding calendar year; (2) energy sales or customer service related charges will be allocated on the basis of energy sales (MWH) to ultimate customers during the preceding calendar year; (3) non-nuclear generating capacity charges
)
(other than generating stations jointly owned by more--
than one utility) will be allocated on the basis of the respective ratios of the non-nuclear generation capa-bility (MW) owned by the two companies at the end of the preceding calendar year (exclusive of generation stations jointly owned by more than one utilityl; and (4) operation and maintenance charges will be l
allocated on the basis of the respective ratios of payroll and other operation and maintenance expenses (excluding fuel, purchased power, net interchange, joint stations and nuclear costs) of the two companies during the pre-ceding calendar year;
() If none of the above ratios is applicable, the allocation will be made based on the average of the four i
above ratios for the preceding calendar year.
.' l APPENDIX A l
(} PROFESSIONAL QUALIFICATIONS OF ;
F. ALLEN DON 0FRIO -
B. S. Degree - Fairleigh Dickinson University - Major in Accounting. ..
Graduate courses in Business Administration leading to Masters Degree. -
Present member of the Accounting Division Executive Cc=sittee of Edison Electric Institute. For=er member of the Taxation Co=mittee and the Budgeting and Financial Forecasting Co=mittee.
Graduate of the University of Michigan Public Utilities Executive Program. .
August, 1976 to date: Comptroller of Pennsylvania Electric Company, Waverly Electric Light and Power Company, and the Nineveh Water Company, Johnstown, Pennsylvania .
i February, 1976 to August, 1976: Principal Financial Analyst of the Management Systems Section of General Public Utilities Corporation located in l
Reading , Pennsylvania; Analysis and i=provecent of the ' Corporation's ;
financial budgeting process, as well ac, other financial reporting and ;
analysis duties. - l Julv, 1973 to February, 1976: Manager, Special Accounting of Jersey Central .
Power & Light Company, Morristown, New Jersey - Responsible for the Coordination and review of all co=pany financings, regulatory filings, rate cases, and federal and other taxes. ,
January, 1972 to July, 1973: S taff Accountant of Jersey Central Power &
Light Company, Morristown, New Jersey - Preparation of rate case schedules and testimonies, and all required filings with SEC, etc., required for ;
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financings. .
June, 1959 to Januarv, 1972,: Supervisor, General Accounting of Jersey Central .
Power & Light Cc=pany, Morristown, New Jersey - Respensible for supervision i of all General Accounting functions provided by the General Books, the
, Accounts Payable , and the Statistical Typing Sections.
August, 1964 to June. 1969: Various pcsitions within Accounting Departcent .
of Jersey Central Power & Light Company, Morristown, New Jersey leading
- up to being =ade Senior Accountant responsible for,[he General Books Section in June, 1967. .
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O O O COMBINED MANAGEMENT AND DIVISIONAL REORGANIZATION OF PENELEC AND MET-ED Potential Cost Savings (Annual)
Non-Union /
Supervisory Exempt Non-Exempt Union Total Employees PN divisional reorganization - reduction in T&D 20 34 9 10 73 ME divisional reorganization - reduction in T&D 4 88 26 18 136 Corporate combination-initial reduction in corporate headquarters employees 5 -
14 -
19 Corporate combination-additional reduction in corporate headquarters employees 5 -
14 -
19 Total 34 122 63 28 247 Materials Misc.Exp.
Fringe and Inc. Office Payroll Benefits Supplies Transportation Space Total Savings ($ M's)
PN divisional reorganization-reduction in T&D $1.47 $ .5 $ .5 $ .2 $ .2 $ 3.1 ME divisional reorganization-reduction in T&D 2.9 .9 .9 .3 .3 5.3 Corporate combination-initial reduction in corporate headquarters employees .4 .1 - -
.2 .7 Corporate combination-additional reduction in corporate headquarters employees .4 .1 - - -
.5 Total $5.4 $1.6 $1.4 $ .5 $ .7 $ 9.6 Rounded $10.0 D i Assumptions:
Annualized Salaries are Actual as of 1/1/80:
Supervisors $32,000 Exempt 23,000 . g Non-Union /Non-Exempt 14,000 Union 18,000g !
E Fringe Benefits - 30% of Payroll .
[8 '
Materials and Supplies - 30% of Payroll 8 -
[-
Transportation - 10% of Payroll o;;
Mio. Exp. Inc. Office Space - 10% of Payroll "
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O O O COMBINED MANAGEMENT OF PENELEC AND MET-ED Potential Cost Avoidance Savings '
(Annual)
Non-Union /
Employees" Supervisory Exempt Non-Exempt Union Total PN cost avoidance 9-17 18-34 18-34 -
45-85 ME cost avoidance 15-24 30-48 30-48 - 75-120 Total 24-41 48-82 48-82 -
120-205 Materials Misc.Exp.
Fringe and Inc.0ffice Payroll Benefits Supplies Transportation Space Total Savings ($ M's)
PN' cost avoidance $ .9-1.8 $.3.5 $.3.5 $.1.2 $ .1 .2 $1.7-3.2 ME cost avoidance 1.6-2.5 .5 .8 .5 .8 .1 . 2 .1 .2 2.8-4.5 Total $2.5-4.3 $ .8-1.3 $ .8-1.3 $ .2 .4 $ .2 .4 $4.5-7.7 Rounded $ 8.0 M Ansurptions:
Employees $ M'S Company Annualized salaries and mixture of employees Gnneration 50-75 $1.9-2.8 ME assumed 20% Supervisors, 40% Exempt, 40% Clerical T&D 25-50 .9-1.9 PN are actual as of 1/1/80. For every 5 employees Conservation & Ld.Mgt. 20-30 .7-1.1 ME/PN $191,000 annually is avoided, detailed as follows: m Rate Case Fbnagement 5-10 .2 .4 ME/PN 1 Supervisor 0 $32,000 = $ 32,000 R Policies and Proc. 5-10 .2 .4 ME , 2 Exempt 0 $23,000 = 46,000 $
Materials Management 10-20 .4 .7 ME-PN 2 Clerical @ $14,000 = 28,000 Communications 5-10 .2.4 ME/PN Payroll 106,000 (-
Total 120-205 $4.5-7.7 Fringe Benefits @ 30% of Payroll 32,000 0:
Materials and Supplies @ 30% of p
% Payroll 32,000 o,
, Transportation @ 10% of Payroll = 11,000
- Travel and Office Expense
@ 10% of Payroll e 10,000 Cost Avoidance for every 5 employees =$191,000
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O goonsviMon&isot,io company O . Metropolitan Edison Company' Management Combination and Reorganization Organization Chart - METE 0 PENELEC BOABO OF DIRECTORS 00ARD OF DIRECTORS I l i . CilAIRMAN ClllEF EXECUTIVE OfflCER PRES 10ENT lCillEF OPERATING OfflCER I I I SR. V.P. SR V.P. SR. V.P. ANO _ y p. CUSTOMER OPERATIONS GENERATION CillEF FINANCIAL 0fflCER COMMUNICATIONS V.P. V.P. V.P. CUSTOMER - GENERATION - COMPTROLLER - MATERIALS SERVICES ENGINEERING MANAGEMENT V.P. V.P. CONSERVATION ANO SECRETAl}Y V.P. . _ DEN. PROJECT AND staff _ _ PERSONNEL.AND LOA 0 MANAGEMENT MANAGEMENT COUNSEL SERVICf3 VP. VI. DIVISION - GENERATING ' - TREASURER OPERATIONS STATIONS V.P. DIRECTOR DIRECTOR -
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DIRECTOR DENERATION ADMINISTRATION. -
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PN/ME Exhibit 3 . THREE MILE ISLAND NUCLEAR GENERATING STATION OPERATING AGREEMENT f -among JERSEY CENTRAL POWER _& LIGHT COMPANY l l and - I
- l METROPOLITAN EDISON COMPANY . .
l and. PENNSYLVANIA ELECTRIC COMPANY and GPU NUCLEAR CORPORATION This AGREEMENT made and entered into this day O or 'Sao o"9 3er r ce==r 1 "o r -
& Light Company (Jersey Central), Metropolitan Edison Company (Met-Ed) , Pennsylvania Electric Company (Penelec) ,
and GPU Nuclear Corporation (GPUNC) . E.EEEEEEEEE 1 WHEREAS, Jersey Central, Met-Ed and,Penelec (hereinafter referred to collectively as " Owners" and individually as an
" Owner") each owns, as tenants in common with the others, an undivided interest in the Three Mile Island Nuclear Generating Station (hereinafter referred to as the " Station"). The Station, which is located on the Susquehanna River near O
l l
I Harrisburg, Pennsylvania, consists of Unit No. 1, Unit No. k 2, and certain facilities that are useful in the operation of both units. The present undivided interests are 50 percent in the case of Met-Ed and 25 percent each in the case of Jersey Central and Penelec. Unit No. 2 was severely damaged and contaminated by radioactivity as a result of an accident on March 28, 1979, which will require substantial repair and modification to Unit No. 2 and the Station. WHEREAS, it is desirable and to the mutual advantage of the Owners that GPUNC be engaged, under the terms and
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conditions hereinafter set forth, to operaIte, maintain and rehabilitate the Station and make any necessary repairs, ggg modifications and additions thereto and retirements therefrom
\
on behalf of the Owners. NOW THEREFORE, in consideration of these premises, the parties hereto do hereby agree as follows: ARTICLE 1 Sharing of Capacity and Energy j 1.1 As tenants in common,, each owning 5n undivided interest in the Station, the Owners are each entitled to a share ( of all the services provided thereby in proportion to their respective undivided interests in the Station,
, including, but not' limited to, installed capacity,
( available capacity, operating capacity and net hourly 1 energy generation of the Station. 4
1.2 When plant conditions ara such cs.to require a not input to supply Station power and light, the Owners are J responsible for these requirements in proportion to l () their respective undivided interest in the Station. ARTICLE 2 Services to be Provided _ __ 2.1 GPUNC, consistent with such written guideiines as may
' be jointly developed with the ~ Owners, 'shall provid'e and l be responsible for the operation and maintenance of the
. Station in a safe and reliable manner in accordance with all applicable, lawful licenses and permits and ,
requirements of state and federal regulatory agencies and the generation of power and energy at the Station
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as economically as is reasonably practicable and shall rehabilitate the Statio'n and make repairs and modifica-()
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tions as made necessary or appropriate by the March 29. , 1979 accident. '" Station", as used' in this Agreement, is defined as any and all real, ' personal and mixed property located on or forming a part of the Owners' property commonly known as Three Mile Island Nuclear Generating Station located in Londonderry Township, Dauphin County, Pennsylvania excluding only those' facilities, which comprise the Owners' electric transmission facilities extending'from the high voltage side of the transformation installation. GPUNC also shall make such further modifications of and additions'to and retirements from the Station as shall be consistent () with such rehabilitation, operation and maintenance. Such services and construction may be' provided by GPUNC L .
through its own personnel or in part by others under contractual or other arrangements. In furtheranc'e of ggg the foregoing GPUNC shall, on behalf of the owners, among other things: (a) Select, hire, control and discharge personnel, who . will be employees solely of GPUNC, and select and retain the services of contractors and consultants. (b) Procure on behalf of the Owners nuclear fuel including uranium and provide for the enrichment, conversion and f abrication thereof and storage and/or disposal or reprocessing of such fuel when spent (as permitted by law or regulation). - (c) Arrange for the purchase on behalf of the owners oE repair, modification, rehabilitation, operating
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_and maintenance materials,. services and supplies. (d) Design, construct, start-up and test modifications of and additions to the Station. l (e) Determine and stipulate inventory levels of material and equipment for the Station. (f) Keep the Owners informed in a reasonable manner o concerning repair, modification, rehabilitation, operation and maintenance activities and additions to the Station. (g) Prepare, or arrange for the preparation of, in accordance with normal and customary procedures annual budgets and forecasts for the Station's repair, modification, rehabilitation, operating and maintenance costs, capital expenditures and l
1 , . . l .-. ~- l
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retirements to be submitted to the Owners for () approval. Such approval shall be required before action may be taken thereundere provided that work l l - i required to prevent hazardous conditions or sub-stantial-reduction in generation may be undertaken prior to such' approval with prompt notification , thereof given to the Owners. Such budgets and forecasts shall be revised from time to time to - reflect material. changes in circumstancas. (h) Perform any services and take any action, on behalf of the Owners where appropriate, related to the repair, modification, rehabilitation, opera-tion,-maintenance, renewals, replacements, addi-()
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, tions and retirements pertaining to the Station as,,
, - : r-may be necessary or appropriate to comply with the provisions of the Atomic ~ Energy Act, as amended or as it may be amended, or any other applicable statute, rules, regulations, guidelines or similar
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criteria, and any provisions or conditions of construction permits and operating licenses or o similar authorizations granted or that may be granted in connection with Station and as such permits, licenses or other authorizations may hereafter be amended. O .
t ., . . . (i) In its capacity as operator of the Station and as agent for the Owners, provide communications ll) to, and receive communications from, the Nuclear Regulatory Commission and/or any successor govern-mental agency, as well as any other governmental agency having jurisdiction with respect to any aspect of the Station's operation, maintenance, l rehabilitation, repair and modification and, in such capacities, represent (or engage others to represent) the Owners. * ' (j) Perform, or, if deemed desirable by GPUNC, contract on behalf of the Owners with others (including agencies of Government or their contractors)~ for _ o . repair, modification, rehabilitation, maintenance 7' g renewals and replacements required to place ~and/or keep the Station in safe and efficient operating condition to protect the property, to conduct research and development with respect thereto and disburse or receive funds in connection therewith. l Such work shall be subject to normal and customary l
. GPUNC review and approval procedures.
(k) Perform any additional services pertaining to the l Station to which the Owners and GPUNC shall have 1 mutually agreed. l 0
l l O (1) Arrange for the mainteinance, Iin accordance with
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normal and customary procedures of such necessary books of record, books of account and memoranda of
- i. -
. transactions and for the provision of such reports _
with respect thereto to the Owners as each Owner shall desire to meet its accounting and statistical requirements and to conform-to the. applicable ' lawful rules, regulations and requirements.of all regulatory bodies having jurisdiction.over the owners. The costs for the-Station shall be ~ accumt lated _ in a separate set of . accounts. . O (> "ro ta or === #se cor the grovt too oe =~och --- other data or information with respect to. the Station as a y be reasonably requested by the-Owners from time to time. _ 2.2 Matters and questions arising in connection with the repair, modification, rehabilitation, operation and a maintenance of the Station which are not within the-scope of the authority. delegated to GPUNC under this l Agreement and are not specifically provided for in this
- Agreement shall be jointly determined from time to time by the Owners and GPUNC.
2.3 The costs for services provided by GPUNC pursuant to
, ~ the terms, conditions and provisions of this Agreement shall be paid to GPUNC as provided in Article 4.
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l l ARTICLE _3_ llI Scheduling of Operation, Dispatch and Maintenance l 3.1 It is anticipated that the Station will be operated so that the Owners use their respective shares of its. output and capacity at the same time since such opera- - tion will normally be compatible with each Owner's desired system operation. Normal scheduling shall contemplate the division of entitlements to the Station output as provided in Article l'. 3.2 During operating conditions which GPUNC in its sole judgment deems abnormal, GPUNC shall take such action as it deems appropriate for the public health and safety and the safety of personnel and equipment. 3.3
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In order that the safe operation of the Station is --* ~ O' assured, the owners shall not effect any operating or physical changes to their respective transmission and distribution. facilities which may affect the safe operation of the Station without prior consultation and concurrence of GPUNC. - o 3.4 The Met-Ed Dispatching Department shall have jurisdiction over the TMI 230 KV and 500 KV substations. Met-Ed also shall have maintenance responsibility from the TMI 230 KV and 500 KV substations up to the low voltage bushings of the generator step-up and main auxiliary transformers. With the concurrence of GPUNC, Met-Ed lll shall provide switching and tagging in connection with
. the generator step-up and main auxiliary transformers.
GPUNC shall have jurisdiction over all station service () equipment which affects the operation or safety of the plant. Such jurisdiction shall be from the low voltage side of the generator step-up transformer and the main auxiliary transformers to the plant proper. 3.5 GPUNC shall have operational control of the TMI 23Q KV and 500 KV generator circuit breakers for synchronizing upon authority received f rom the Met-Ed Dispatching Department. ARTICLE 4 Working Fund 4.1 The Owners shall establish and maintain a fund from which GPUNC shall make payments for all costs pursuant to its services and responsibilities hereunder. The . Owners, in consultation with GPUNC, shall determine, l l initially and from time to time, during the term of this Agreement, the amount or amounts required to maintain a satisfactory balance in the fund, and shall be liable in proportion to their respective undivided
- interests in the Station for any such additional e
amounts required to maintain the agreed-upon balance. The Owners shall reimburse the fund promptly on receipt of notice from GPUNC of their respective obligations for reimbursement. 4.2 On termination of this Agreement, as hereinafter provided, any residual unexpended balance in the i(
working fund shall be credited to :he Owners in pro-portion to their respective undivided interests in the Station. ARTICLE 5 Charges, Financial Statements and Billings 5.1 GPUNC shall arrange for reporting to the Owners for each month, promptly following the end of such month, by written statements the following: (a) The costs of repair, modification, rehabilitation, operation and maintenance, the cost of any plant additions and retirements including applicable cost of removal and salvage, on an accrual basis, classified as required to meet its obligations under llh Section 2.1(1) above. (b) A summary statement of the operation during that month of the Working Fund, showing beginning balance, receipts, disbursements and closing l balance. I 5.2 The costs incurred or accrued from all sources durin,g each calendar month in repairing, modifying, rehabili-l tating, operating, maintaining and making additions to and retirements from the Station shall become i liabilities of the Owners when incurred or accrued and shall be borne by the Owners in proportion to their l undivided interests in the Station. All such costs lll shall be determined in accordance with sound accounting l l \
practices, and shall include reasonable and appropriate O
\/ indirect costs including overheads. In particular, all of the services rendered hereunder by GPUNC will be at actual cost thereof. Direct charges will be made for services where a direct allocation of cost is possible.
The methods of determining such costs and the alloca-tion thereof are set forth in Appendix A hereto. These methods shall be reviewed annually and more frequently,
. if appropriate. Such methods may be modified or changed by GPUNC, with the approval of the Securities and Exchange Commission, without the necessity of an amendment of this Agreement provided that in each instance all services rendered hereunder will be at
() actual cost thereof, fairly and equitably allocated, . -. s and all in accordance with the requirements of the Public Utility Holding Company Act of 1935 and the rules and regulations and orders thereunder. The Owners will be advised from time to time of any material l changes in such methods. 5.3 It is the intent of the Owners that so far as possibJe each Owner shall separately report, file returns with respect to, be responsible for and pay all real proper-ty, franchise, business or other taxes, except payroll and sales or use taxes, arising out of its proportion-ate ownership of the Station and that such taxes shall
/~% be separately levied and assessed against each Cuner.
U However, to the extent that such taxes may be levied L
on or assessed against the S tation, or its operat, ion, or the owners in such a manner as, in the opinion of O the owners, to make impossible or inequitable the carrying out of said intent, then such taxes shall be deemed a part of the costs of operating and main-taining the Station and shall be apportioned among the owners under this Agreement in accordance with their respective percentages of ownership. 5.4 The Owners shall have the right, during the term of this Agreement and thereafter as long as the books, records and memoranda referred to'in Section 2.1 shall be preserved, to inspect all such items and to make reasonable audits thereof at their own cost as they may deem necessary to protect their interests. 5.5 In the event an Owner shall question any statement rendered according to the provisions of Section 5.1 hereof, it shall nevertheless promptly pay the amount l indicated in such statement but such payment shall not l be deemed to prevent such Owner from claiming an adjustment of any statement rendered. l 5.6 If it shall be determined that an Owner has paid more 1 l or less than its proper share of the operating and l capital costs of the Station for the month covered by l l such statement, an appropriate correction shall be made 1 l by GPUNC by proper credit or charge, as the case may be. O I
t . l . . l p ARTICLE 6 V Metering, Relaying and Control 6.1 The net power generated by Unit No. 1 shall be deter-mined by metering the power output at the high side of the 19-230kV step-up transformer minus the power metered on each of the two Unit service transformers (Nos. 1A and 1B) at the 230kV bus. 6.2 The net power generated by Unit No. 2 shall be deter-mined by metering the power output at the high side of the 22-500kV step-up transformer minus the power metered en each of the two Unit service transformers (Nos. 2A and 28) at the 230kV bus. () 6.3 The 500kV power delivery shall be the power generated _, by Unit No. 2 determined by metering the power output at the high side of the 22-500kV step-up transformer. This value is provided to Pennsylvania-New Jersey-Maryland Interconnection (PJM) for determination of 500kV losses and system security analysis. 6.4 The accuracy of the metering equipment installed , to provide information under Sections 6.1, 6.2 and 6.3 above shall be in accordance with GPU Meter Standards. The merers so provided shall be tested and calibrated according to schedules arranged by GPUNC at intervals not to exceed twelve months. Adequate notice of such () tests shall be given, if requested, to the Owners so that they may have representation present to witness them. Correction of inaccuracies found to exist in any
1 4
-14_
meter shall promptly be made and, if appropriate, ,such () correction shall be retroactively applied to the extent necessary to carry out the intent of this Agreement. 6.5 Settings, calculations and test procedures for relays, telemetering and associated control equipment in the i plant and substation, which are of direct interest to any of the Owners shall be determined by mutual agree-ment between appropriate representatives of the Owners and GPUNC. Test schedules shall be jointly agreed upon by the Owners and GPUNC and adequate notice of such tests shall be given, if requested, to the Owners so they may have representation present to witness them. i i f () ARTICLE 7 ,, l Compliance with Provisions of Permits and Requirements of Governmental Agencies 7.1 The Owners and GPUNC shall cooperate in taking whatever action may be necessary to comply with the terms and provisions of permits and licenses for the Station and with all applicable lawful requirements of any Feder4A or State agency or regulatory body having jurisdiction-in the premises. l ARTICLE 8 Damage to Persons or Propertv: Penalties; Fines 8.1 Since GPUNC is undertaking its responsibilities here-under at cost and in order to assist the Owners in meeting their responsibilities with respect to the l l
Station, the following provisions shall be applicable A (_j to damage to the property of any or all the parties hereto (including Station property) or third parties, or injuries to or loss of life by any person, including employees of the parties hereto, and to penalties or fines assessed with respect to the Station: (a) Each Owner and GPUNC will procure and maintain such physical damage, public liability, workers' compensation and other insurance as it may deem appropriate with respect to all losses, damages, liability and claims arising out of its ownership interest or the operation of the Station and provision of services hereunder and the premium () costs thereof shall be Station costs under Section 5.2, or, in the alternative upon concurrence of each party hereto, the Owners and GPUNC will jointly procure and maintain such physical damage, public liability, workers' compensation and other insurance as they may deem appropriate with respect to all losses, damages, liability and claims arising out of their respective owneIship l interests or the operation of the Station and-
\
i provision of services hereunder and the premium costs thereof shall be Station costs under Section 5.2. All insurance shall contain a waiver of subrogation. clause against the other parties [} ) l hereto. i l
- - . 1 1
l l 1 I (b) Claims cognizable under workers' compensation acts or temporary disability benefits laws or any other llh' benefits under workers ' compensation or analagous statutes and the expenses of defending or dispos-ing of the same, attributable to the ownership or operation of the Station, which are not covered in full by insurance procured in accordance with the preceding paragraph shall (to the extent not covered by such insurance) be treated as Station costs under Section 5.2. (c) All losses, damages, expenses, penalties, liabilities, fines and claims (including those in respect of property damage and personal injury) asserted by third parties and the expenses of defending or . lll disposing of the same, attributable to the ownership or operation of the Station, which are not covered in full by insurance procured in accordance with the second preceding paragraph shall (to the extent not covered by such insurance) be treated as Station costs under Section 5.2. , (d) Each of the parties hereto expressly waives any right it may have to recover from the other parties hereto for any losses, damages, penalties, liabilities, fines, claims or expenses (including damage to property of the Station) for any cause including the negligence of the other parties ggg hereto, its employees and agents in connection
l with the operation of the Station and the provision of services hereunder. l 1 l ARTICLE 9 Miscellaneous t l 9.1 Nothing in this Agreement shall be deemed to create er constitute a partnership, joint venture or association among the partiec hereto or any of them, the sole purpose of this Agreement being limited to provision for the orderly and efficient repair, modification, rehabilitation, operation and maintenace of the Owners' respective separate undivided interests in the Station. 9.2 Each of the Owners hereby designates its President as its Representative, who shall receive notices and () communications from GPUNC under the provisions of this~' Agreement and who shall send to the designated Represen-tative of GPUNC all notices and communications under the provisions of this Agreement. i i 9.3 GPUNC hereby designates its President as the GPUNC Representative, who shall receive notices and communica-I tions from the Owners' respective Representatives under the provisions of this Agreement and who shall send to the Owners' respective Representatives all notices and communications concerning the provisions of this Agreement. Each Owner shall determine the basis and method it will {} 9.4 use for purposes of depreciation and other matters l where investment in Station property is relevant. f
9.5 In performing services under this Agreement on behalf of the Owners, GPUNC shall act as an independent contrac- O tor responsible for the result to be attained, consis-tent with such guidelines as may be jointly developed with the Owners. 9.6. Since Met-Ed is the sole owner of certain facilities ancillary to the Station and since Met-Ed (or any other Owner) may from time to time provide goods and services to the Station, GPUNC shall pay for such goods and services at cost determined as herein provided, which payments shall be treated as Station costs under Section 5.2. ARTICLE 10 ggg Effective Date and Termination 10.1 Subject to any applicable rules and regulations and associated approvals of any regulatory authority, this Agreement shall become effective as of the date first above written and shall remain in full force and effect unless and t3ntil terminated. 10.2 This Agreement may be terminated by any Owner upon reasonable notice to the other parties hereto provided that adequate provision is made to protect the public health and safety. ARTICLE 11 Successors and Assigns 11.1 This Agreement and all of the terms and conditions
_19 hereof shall be binding upon and inure to the bansfit of the partier hereto and their respective successors (} and assigns. Any mortgage indenture trustee which shall foreclose on substantially all of the electric utility properties of any Owner, including the undivid-ed interest of said Owner in the Station, may, at its own election, be deemed to be a successor and assign of said Owner under this Agreement. - ARTICLE 12 Governing Law
! 12.1 This Agreement has been executed and delivered in th'e State of New Jersey and is intended to be construed in accordance with, and to be governed by, the laws of that State.
() IN WITNTSS WHEREOF, the parties hereto have caused ,, these presents to be executed and delivered in Parsippany, New Jersey as of the day and year first above written. ATTEST: JERSEY CENTRAL POWER & LIGHT COMPANY By l President l Secretary ATTEST: METROPOLITAN EDISON COMPANY s By , i Secretary President i ATTEST: PENNSYLVANIA ELECTRIC COMPANY ! By Secretary President \ () - ATTEST: GPU NUCLEAR CORPORATION l BY cnairman
Appendix A i () Determination of Cost of Service and Allocation thereof I Cost of service will be determined in accordance with the Public Utility Holding Company Act of 1935 and the rules and regulations and orders thereunder, and will include all j costs of doing business incurred by GPUt:C. Records will be maintained for each Department and Division of GPUt!C in order to accumulate all costs of doing business and to determine the cost of service. These costs will include wages and salaries of employees and related expenses such as insurance, taxes, pensions and other employee welfare expenses, end rent or other applicable cost of facility utilization, including but not limited to light, heat, telephone, supplies, and other housekeeping costs. In addition, records will be m61ntained of general administrative expenses, which will include the costs of operating GPUNC as a corporate entity. , Where appropriate, charges for services of personnel rendered and related expenses and non-personnel expenses (e.g., use of automotive equipment, etc.) will be billed ' directly to the Owners in accordance with their respective interests in the Station. This will include the charges for services of GPUNC personnel assigned exclusively to the Station and, for other personnel, charges deternined in accordance with the aggregate nuclear steam generating capa-cities of the conpanies contracting with GPU::C.
i i O Charges for services will be determined, where appro-priate, from the time sheets of employees (other than some secretaries, clerical and similar employees, the cost of whose services will be treated as a part of general adminis-trative expenses). Records of such related expenses and" general administrative expenses will be maintained and subjected to periodic review. Out-of-pocket expenses which are incurred for the owners will be billed at cost. Charges for non-personnel expenses, such as for use of automobiles not assigned exclusively to the Station, will normally be computed on the basis of costs per mile. ggg 1 s O
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30,, UNITED STATES PN/ME Exhibit 4 8 3 NUCLEAR REGULATORY COMMISSION 2 ,.. I r:Asmcicu,0. c. zosss September 15, 1980 O Docket No. 50-289 . Mr. R. C. Arnold
- Senior Vice President Metropolitan Edison Company 100 Interpace Parkway' Parsippany, New Jersey 07054
Dear Mr. Arnold:
The Comission has issued the enclosed Amendment No. 58 to Facility Operating License No. DpR-50 for Three Mile Island Nuclear Station, Unit No. 1 (TMI-1). This amendment consists of changes to the Tech-nical Specifications in response to your application submitted by letters da.ted August 7, (TLL 366) and 28, (TLL 417) 1980. This amendment revises Figure 6-1 of the Technical Specifications per-mitting the establishment of the General Public Utilities Nuclear Group (GpVNG) through which the ope' rating and management responsibility for THI-1 will be implemented for the Metropolitan Edison Company (lie *. Ed). -O This amendment also. revises the plant staff organization. . The added notes in Figure 6-1 show positions having responsibilities and authorities equivalent to those positions set forth throughout the administrative section of the Technical Specifications (Section 6). - These modifications combine the nuclear experienced management and technical staffs from within the GpU Service Corporation, Met Ed and Jersey Central Power and Light. Minor modifications to Figur'e 6-1 may be necessary when Section 6 of the Technical Specifications is revised. Our approval of this amendment is limited to it,s acceptability for the current shutdown state of the reactor. Therefore, approval of this amendment does not connote that the changes made are sufficient for' reactor operation. The Staff's review of the issues raised by the Comission in its August 9,1979 and March 6,1980 Orders regarding management capability of the licensee has not been completed. Moreover, the issue of the licensee's management capauility is the subject of ' litigation in the TMI-i restart proceeding. The Staff's findings regarding the management capability of the licensee contained in this ,
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Mr. R. C. Arnold < G safety evaluation are thus subject to modification should the Staff's review or tne Comission's findings in the restart proceeding necessitate such a change. Copies of the Safety Evaluation and Notice of Issuance are also enclosed. Sincerely, f .fc. $l-kobert W. Reid, Chief Operating Reactors Branch #4 Division of Licensing
Enclosures:
- 1. Amendment No. 58 -
^
- 2. Safety Evaluation ~
- 3. Notice cc w/ enclosures:
See next page l l l 1 0
PN/ME Exhibit 5 List of Initial Board of Directors and Officers Of GPU Nuclear Corporation ("GPUNC") O . The' initial board of directors of GPUNC will c'onsist of the following persons:
- Other Pacitions With Name GPU System Companies
.W. G. Kuhns :- Chairman of GPU, JCP&L, Met-Ed, ~
Penelec and GPUSC H. M. Dieckamp President and dire'ctor of GPU and GPUSC; Acting President and director of Met-Ed (will resign as Acting President of Met-Ed. when authorization under the Federal Power Act has been ob-tained for W. A. Verrochi, Pres-ident of Penelec, to hold the
~
ad.ditional position of President . of Met-Ed); director of JCP&L () and Penelec - 'a B. H. Cherry Vice President-Corporate Planning ! of GPUSC . l
- l W. A. Verrochi President and dirketor of Penelec; will become President and director of Met-Ed when necessary authoriza-tion under the Federal Power Act has been obtained; director of GPUSC S. Bartnoff President and' director of JCP&L; director of dPUSC '
R. C. Arnold Senior Vice President of Met-Ed;
. Vice President-Generation of GPUSC P. R. Clark Executive Vice President of'.GPUSC Directors of GPUNC will receive no compensation from the.GPU System for their services in such capacity.
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To th.e extent presently known, the initial officers, of GPUNC will be:. Other Positicns With Nane Office GPU System Com;:anies H. H. Diecka:p Chairman and Chief See list of directcrs Executive Officer above R. C. Arnold President and Chief See .'ist of directors Operating Officer a!xwe P. R. Clark Executive Vice President See list of directors above H. D. Eukill, Jr. Vice President-DE Unit No.1 None G. K. Hovey Vice President-G Unit No. 2 Ncne I. R. Finfrock Vice President-Oyster Creek Vice President-Generatica
- cf JCP&L R. F. Wilsco Vice President - Technical Ncne -'
Functions J. G. Herbein Vice President - Nuclear Vice President - Generation Assurance ' of Met-Ed F. Glickman Vice President - h* minis- Vice President - Materials tratien Manage: rent of GPUSC l . - l R. W. Heward, Jr. Vice President-Radiological and Emricrn: rental Controls Ncce Vice President-Cctmunicatices ' l J. G. Graham Treasurer ' Treasurer of GPU and Vice - l
' President and Treasurer l cf GPUSC E. J. Holec::be Ccuptroller Corrptroller of GPU and j ~ Vice President and Ccrip-l troller of GPUSC H. M. Graydon Secretary Secretary of GPU and '
GPUSC g 3
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u - - . mm COMBINED MANAGEMENT AGREEMENT Dated as of July 1,1980 ) Between Metropolitan Edison Company (" Met-Ed") and Pennsylvania Electric Company ("Penelec") l l WHEREAS, in o'rder to achieve more efficient management, improved customer service, cost savings and heightened emphasis on conservation and load management, Met-Ed and Penelee have agreed that the management of the two companies should be combined, while continuing the separate corporate entity of each ocepany and the dedication of its . existing and future investments and associated costs to the customers in its existing service areas. NOW, THEREFORE, Met-Ed and Penelec agree as - follows:
- 1. It is the intent of Met-Ed and Penelec that the respective Boards of Directors as well as the Corporate Officers of Met-Ed and Penelec shall bc identical.
(
- 2. The corporate charterc of Met-Ed and Penelec ,
shall be amended so that the corporate name of Met-Ed shall be " Pennsylvania Electric Company - East" and the corporate i name of Penelee shall be " Pennsylvania Electric Company - West". I
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O
- 3. For payroll administration purposes, any present or future employee of Met-Ed or Penelec who shall O perform services for both companies shall be designated as an employee of only one company and, during his period of employment by that company, shall receive compensation and employee benefits solely from that company. Such present and future employees shall keep time records and their compensation and associated overheads shall be allocated to the specific project and company or companies shown on such eine records. Where the work performed is not identified with a specific project or company, the compensation and associated overheads of each such employee shall be allo-cated between Met-Ed and Penelec as follows:
(a) If the work performed is associated with transmission and distribution functions, such allocations shall be on the basis of the respective ratios of the gross electric transmission and distri-bution plant of Met-Ed and Penelee as at the end of the preceding calendar year: 1 l For example, for the year 1980, the l l allocation factor will be 43.0% to Met-Ed and 57.0% to Penelec, based on the gross transmission and distri-l bution plant investment of Met-Ed of $500,359,632 and of Penelee of $664,208,366. O 1
, , ~3-(b) If the work performed is associated with energy sales or customer services, such alloca-tion shall be on the basis of the energy sales (MW) to ultimate customers during the preceding calendar year.
' For example, for the year 1980, the allocation factor will be 42.3% to Met-Ed and 57.7%
to Penelec on the basis of 1979 energy sales.(MWH) of 7,602,301 of Met-Ed and 10,380,572 of Penelec. (c) If the work performed is associated , with non-nuclear generating capability (summer rating) (other than generating stations jointly owned by more than one utility, to which separate allocations shall be made), such allocation shall be based on the respec-tive ratios of the non-nuclear generating capability (in MW) (excluding the generating stations jointly owned
.by more than one utility) owned by Met-Ed and Penelec at the end of the preceding calendar year.
.For example, for the year 1980, the ,
allocation factor will be 42.9% to Met-Ed and 57.1% to Penelec, based on the 1979 non-nuclear generating capability (in MW)~ owned by Met-Ed of 920 and of Penelec of 1226, after excluding the shares of the generating capacity in Conemaugh owned by Met-Ed and in Ho=er City and Seneca owned by Penelec.
1 o l
. . l 1
(d) If the work performed is associated with operation and maintenance expense, such allocation shall be based on the respective ratios of the payroll and other operation and maintenance expense (excluding fuel, purchased power, net interchange, joint stations and nuclear costs) of Mec-Ed and Penelec during the preceding calendar year. . For example, for the year 1980, the allocation factor will be 39.5% to Met-Ed and 60.5% to Penelec, based on the 1979 payroll and other operation and maintenance expenses (excluding fuel, purchased power, net interchange, joint stations and nuclear costs) of Met-Ed of $56,989,541 and of Penelee of
$87,161,264. . -,
(e) If none of the above ratios is appro-priate,. such allocation shall be based on the average of the four foregoing ratios for the preceding calendar year. For example. for the year 1980, the e allocation factor will be 41.9% to Met-Ed and 58.1% to Penelec.
- 4. Laplementation of this Agreement will require i
I certain regulatory authorizations from t ime to time . Met-Ed and Penelee will cooperate in the filing of such documents O
from time to time as may be necessary to seek such regula-tory authorizations. If, with resp t to any particular action provided for in this Agreement, prior regulatory authorization for such action is required, such action will
.not be taken unless and until such authorization shall have been obtained.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written. p g 1.' '! : ,
'I. ' ' ' ' , ttest: METROPOLITAN EDISON CUMPANY
. ,..3 i; .
By E y, I' .l'\ . ' s Secretary Sefior Vice President Attest: PENNSYLVANIA ELECTRIC COMPANY ay '- ,.
,., -m By 10 4 e W- ~
' P r e s i d'e n't Secretary I
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I PN/ME ExAlbit T
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General Public Utilities Corporation Pennsylvania Operations implementation Plan Management and Operations Study 0 - l Submitted to: () Pennsylvania Public Utilities Commission November,1980 l i
GENERAL William G. Kuhns PUBUC Cterman
-.,: I UTIUTIES 100 inter: ace Parkway j p .
Parsi Dany, New Jersey 07054 CORPORATION (201) 263-6500 November 12, 1980 l Mr. John L. Dial, Director
- Bureau of Audits Pennsylvania Public Utility Co= mission P. O. Box 3265 Harrisburg, Pennsylvania 17120
Dear Mr. Dial:
On September 23, 1980, the Bureau of Audits, Theodore Barry & Associates and General Public Utilities reviewed the final report of the Management and Operations Study.
! At that time,. senior manage =ent of GPU accepted the strategic recommendations of the report. -
We have formally documented our response in the attached l I Company Implementation Plan which su=marizes action required, _, status and completion date. We propose to submit progress reports as required. While fully accepting the study recc=mendations, we note that the costs to attain the potential benefits can be sub-stantial, including, "... external assistance, management time for development and implementation of new procedures and on-going maintenance expense." Cash constraints and business needs will require flexibility to adjust priorities periodically to conform with resource availability. The Company is convinced that audit reviews and investigations '
. are not only desirable but produce valuable findings. We believe they also demonstrate that GPU is open for inspection I and the company continues to make pcsitive progress to improve effectiveness.
Sincerely, mck ln ,$/ ( I i i t t { Jersey Central Power & Ught Com any/Me*rcoc* tan Ecson Company / Pennsylvania Electnc Company 1 -
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{ ) 4l INTRODUCTION 3 l 6. General Public Utilities (GPU) has thoroughly reviewed Il
.b1 the recommendations contained in Theodore Barry & Associates' l l
Management and Operations Study of GPU's Pennsylvania Operations. - 4
-m This document is the company's response to the Pennsylvania i k,
Public Utility Commission's request for an implementation il Pc l schedule. !. 1l Recommendations are addressed individually and can be
}
identified by page reference. The order in which the recommen- h t dations appear has been adjusted to reflect the addition of 7 l I one recommendation (number 2) by the PUC. This brings the total -. $ A strategic recommendations to eighteen. 9 r The format for this implementation plan has been recommended by the Bureau of Audits and the implementation plan and schedule have been reviewed and approved by Management. F. Progress on implementing the recommendations will be centrally - monitored by Operations Analysis and reported as required, , 1 , 1 l l 1 i o I 4
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Implementation Schedule Ceneral Pthite Utilities Corporation Hanaqement & (beratIms $ttsty 50FOLLED PC, POSIT 10N CD RET 10t4 NO. RECGfff0ATION REF. RLSPOISIBLE ACT10ta Ft.Att STATts DATE COtCNTS
- 9. " pet #6YLVmIA 50LtJTI0te" IV-77 VP Corp. c. Consider advocating the establistment Deferred Tte corpany acrees (Cont'd) Plaming, of a Pemsylvonta Energy Developnent that the establistenent CPUSC Authority to operate federally of PETA to expard tie assisted demonstration plants for state's role in tre innovative coal gereration technology. development of Innova-tive coat oeneration tectvviloqv is appro-prlate. We telleve that leadership of utility trubst ry ef-forts in stwort of such activities should te tsviertaken ty tte Pemsylvania Electric Association (IEA).
Yhts allows (PU to utilize manaarment re-sources in otter areas but does not preclude company stoport acd M . participation.
- 10. Expedite the development of for- V-16 Deputy Chler a. Develop detailed organizational mis'- In Progress 30,'81 Such iteens are contin-mal roles and functions of the Operating stons, functions and organizational , ually evolvino in any CPU IAclear Corporation Organiza. Executive, interfaces, dynamic oroantration, tion. CPU ibclear thus revisions and soitricatims will, of course, continte after completion date.
i. 9
f V U v) . Iglementation Scledule Ceneral Pthile Utilities Corporation Monnaement 4 Operatims stimfr PC. POSITION EOC111.ED to. f(CGtCimT104 REF. RETG4510LE CD(1ET10P4 ACital f1Att STATUS DATE
- 13. av partENt CGip0 RATIO 4 Cu t04TS V-16 VP Admint- b. Develop job descrlottms and salary N WbTQAllota in Progress Critical (Cont'd) stration, Cru ranges. for many positions, th; clear Positions existing posillon 20,'e1- descriptims within Remalruler tte system are appro-40,'81 priate. Priority is telno applied tn post-tions with special trainino or cualiff-cation remtrements, Chief Opera- c.
ting Execu. Select oersonnel for varjous posittms. In Progress Co mletion (hlef Operating Ezecu-live, GU of Initial live Deputy Chlef Nuclear Steffing Operation Executive. 10,'81 8 of 9 Olvision Heads, ar=1 most senior post-tions are filled. At any time, some per-centone of positions may be vacant. . Deputy Oiler d. Operating Study space and loalstical reautrements Cnreleted Seven-year lease for the Pars!ppany lleastsorters of QU Executive, P&Jelear Corporation. slaned. Relocation to 000 teclear be effected 7/81 Chief Opera- e. Docurent the role and function of the ting Execu- Initiated 10,'B1 tive, 000 Doord of Directors of DU tActear Corporation. thclear .
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Operating Docunent the role and functim of the initiated 10,'81 Office of try President. Executive, ' Gtiteclear 10.
c d e - e h v e r t st ol ,rsi . t e sr a ace u s 1 irf n eprupr r e 1 S uorpereOt i tud i et banCr T t scrency pen. O C N W M f h ap oaco sr pot e sP t e bl ohn rL s s i pii eew ci l rt o wt i i t c a v de t r d a t e t .iut eer g esUcl del st n t o e h n D' j u ocha co o f etl un a l eror DptPKepD&f w l re oct rg or k e o ( N DO EI LTE t i E. A T 1 8 1 8 I R 1 m18 8 l51 D ', '
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O O O Isolementation Schethle
- General Pdille Utilities Corporation Mmaqement & Operations Sttahr SCIEttLED PC. POSITION CDRETION NO. l(C(HTM1ATIG4 REF. RESF41NSil1E ACTIfN RAN STAftS DATE ITHENTS
- 13. Contiroe to strengthen the PLIILIC V.18 Chief Opera- e. Continue and refine identification of in Progress 40, ' M 90s emplete.
HELAll0NS efforts for CPU Riclear ting Executive various pdilles. Corporation & VP Comman!- cations, GU b. Establish or strengthen contacts with In Progress 70,'81 Sneakers Doreau estab. Hiclear philes vla speaking ennsorwents, on- Ilshed; expansion of site briefings and espanded use of steakers, tasrs, Visitors' Center. brlerinos on taroet.
- c. leprove relationships with media. Completed 40,'80 Media outreach proqram established; on going e f rot t ,
- d. Establish a photogra$ le & oraphic In Prooress 40,'80 Crarhics Arts estah-arts section. Ilshed.
- e. Espand employee briefinos on grom Completed A sonthly pt>l1 cation activities. with a weekly todate is in place, bulletins issued as required.
- f. Further develop the Emeroency Plan In Prooress a0,'80 Procedures have been Procedure (EPIP). developed erut are tnier review.
- g. Aucynent staff to meet requirements. In ProQress 70,'81 Auotmentation 6$s complete.
- h. Develop the plan to expand use of In Progress 70,'A1 Simlficant efforts enternal polling, media campaigns, tnierway concurrently.
swporting " third party" organizations. 6 17. s
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implementatten Schedste Ceress! hblic Utllities Corporation Manarrent 8 Operatitrw Stisfy FO l'Dil.ED PC. FOSITION MHtETION 140 . RECO ttt0AT10H Rff. RESTOiSIDLE ACTIO4 R AN STATUS DATE COf ENTS
- 14. Estabt!sh Pillt.!C CD411TTEES for V-19 Chief Execu- Put in place a Ptblic Committee at each Initiated 10,'81 each raclear fac!!1ty which will Live Officer, ruclear facility to advise on plant be actively involved in the CPU taclear Interaction with p blic, review of management actions
- 15. D:velop a specific program to V-20 VP-Communica- e. Docasientation of facts of adverse cormasincate the adverse effects tion, CPU in Prnqress in view of tte concles.
effects. ity of issues aruf en-of tidC DELAYS to tre Conpany's pertence to date in various gablics, Ireluding tre b. Comunicate to various guhlics: Initlated Pennsylvania wx1 te:w Jersey deallr:1 with Institu-rate case and license proceedinos, tional Issics, timing Cormaissions, state legislatures Congressional Comittees and deleca- of resolution is tsyre-ard governors in order to apply tions, state erut federal executives, pressure to tie IllC to expedite sharctolders orx1 custaners, dictable arut et least Its decision oaking process aw y ammths away. through all evallable seans
- 16. Complete the IW4A&lfNT CutilNA- VI-21 Presidents, s. Develop detailed organtrational ars1 Completed 11tti of ite Pervisylvante comantes 8/1/80 Perelec/ Met-Ed staffing requirements for each fme-tion.
- b. Select carv11 dates for key positions Co mleted 9/1/80 auf involve item in furtter organira-
, Lion development and assessment. .
- c. Determine disposition of all current In Progress 10,'81 Asstanes renulatory e mloyees, and the timing and opprovals received by
, logistics of all relocations. 1/el
- d. Estahllsh a task force to coordinate Completed 6/80 4 Lie lmlcmentation of the mannrW.
combination. l. 13.
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Implementation Scteiste Ceneral Ptblic Utilities Corporation Hanaqcaent & (1perations situff SrlfD LED PC. POSITIn On41ETION t40. TECfHil0ATIOl Fif. RE'IO611t E ACTlfte ItAN STAit6 (* TE IT19fN15
- 16. MAIACDfNT Cff elttATIG4 e. Quantify the srecific costs asstsned, Com leted 70,'80 In anticipatim of the (Cont'd) cost rethctions, and costs evolded Wit. coabirution 64 throutp the management crmbination. smitterized vacancies were mt filled in tte first 9 mu's of 19f10.
Wnsk was acoglisted thrrusfi overtime and tear'tary persain 1 for little tv t effect m cost. Ihnever uten tre suit. cmin is in place persruset savings of 11.7 million per yr. for tiese jths will teoln inredtstely.
- f. Establish a formal process whereby the Comleted 30,'fC achievement of savings can be eminitored crut tre results of the conbinattm evaluated.
- g. fleport I mlementation status and initiated 40,'83 System in place; will achieveeent of savings on a remlar te orvnim effort m basis, cuarterly basis from time I mlcmentation teqins 4
h n 14.
wa _
,.x Isolementation Schedste
. General 5%1tc (Jttllties Corporation nimoement & Operat tms $ttufy T/1ED LID PC. ' f0SITI0t1 Col 1[ilON
$ HEcufftDAllai E. RJg4TN6tnL E ,
ACTIO4 R Att STAils DATE CT9 f f MIS
- 16. HAtwItt tai rueltailati VI.?! Presidents h. Sttaty all the major operatino systems Initiated 40,'87 -
(Cont'd) Perclec/Het-Ed and settuxis ermi proceAres. Identify. Im tie stellarities and differences tietween (tw! two crirpanies, ard tra establish a set of commi corporate operating systems, mettois ord proceWres.
- 1. Evoluste tre ability of culstim man- Initiated 10,'81 ognnmt systems to sioport a crmbined operotton and lay tuit a timetohle for necessary creanceau'nts or tvarades.
J. Coorttinate workforce management systems initiated 70,'87 will te on tpfm wten between tie two etwgmles ord contirme Het. etwhination to moniitor stoff!ng levels arx1 reeds. established
- 17. Take tie necessary steps to VI-72 Presidents s. Consider customer traffic, transferable In Progress 30,'81 conplcte ite 00ffiLIDA110tf or Penelec/Het-Ed work load, ard political value in deter-DIV15104 GTRATID6 of tre minine, tie economic viability of tunst.
Pcmsylvania carpanies ness offices.
- b. Evaluate tie potential for centrallring In Progress 30,'81 verlass activilles.
- c. Evaluate ite ability of existing Inittoted 40,'81 systems (e.g., CIS, CAS, COEC) to sa m ort tie consolidation.
4 5 15
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O @ S Implementation Sctedule Oeneral I%lic Ut!!!tles Corporation , Manaqement A (berattnns Staniy PG. P0S11104 SOEI1 TID NO. ftfCG400ATImf REF. RESP 0t61ftE CORETimi ACTIO8 FLAta STAitf5 OAir C(Hit 4TS
- 17. CO EOL10AT10t4 0F DIV15101 VI-72 Presidents d. Determine the optimal cmfleration a fRAlla 6 Penelec/ Met-Ed In Prooress 40,'Al (Cont'd) of line crew and service center locations.
- e. Utilfre Operations Analysis personnel In Progress 40,'81 to perform workload analysts and develop staffing remtrements by location.
- f. Determine tie sost appropriate In Progress 20,'01 organization structure for division operations.
- 18. Develop a formalized organization vi-23 CPUSC Daard a. Develop organtrational stratcoy. Initiated 20,'81 plamtrq process to determine the of Directors The O VE. Board will long-term needs and strategy of formallte the crawl.
CPU for OnGAt412ATIO@L OEVELOPHD4T rational process.
- b. Establish future plans including: .
- Process for ceriodic reassessment .In!tlated 40,'81 of needs and plans
- Assessment of current and future In Prooress 40,'82 Such assessment will roles and responsibilities of each be carrled out on function cyclical basis.
4 h 16.
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