ML20077K087

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Prefiled Testimony of Jm Farley Re Illegal License Transfer Allegation of Intervenor.W/Exhibit a Giving Biographical Info
ML20077K087
Person / Time
Site: Vogtle  Southern Nuclear icon.png
Issue date: 12/27/1994
From: Farley J
GEORGIA POWER CO.
To:
Shared Package
ML20077K002 List:
References
93-671-01-OLA-3, 93-671-1-OLA-3, OLA-3, NUDOCS 9501100159
Download: ML20077K087 (42)


Text

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December 27, 1994 I

UNITED STATES OF AMERICA l NUCLEAR REGULATORY COMMISSION Before the Atomic Safety and Licensina Board

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In the Matter of ) Docket Nos. 50-424-OLA-3 '

) 50-425-OLA-3 l GEORGIA POWER COMPANY, )

et al. ) Re: License Amendment

) (Transfer to Southern j (Vogtle Electric Generating ) Nuclear)

Plant, Units 1 and 2) )

) ASLBP No. 93-671-01-OLA-3 )

i PREFILED TESTIMONY OF  !

JOSEPH M. FARLEY l

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2 TESTIMONY OF JOSEPM M. FAELEY 3

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  • l 6 Q. PLEASE STATE YOUR NAME FOR THE RECORD.  !

7 6 8 A. My name is Joseph M. Farley.

9 10 Q. WHAT POSITIONS HAVE YOU HELD IN THE SOUTHERN SYSTEM SINCE 11 1987?

12 13 A. From April 1970 to February 1989, I served as President 14 and CEO of Alabama Power Company (" Alabama Power"). In March 15 1989, I was elected Executive Vice President of The Southern 16 Company and of Southern Company Services, Inc. ("SCS"). Upon the 17 incorporation of Southern Nuclear Operating Company, Inc.

18 (" Southern Nuclear" or "SONOPCO") in December 1990, I became its 19 President and Chief Executive Officer while remaining Executive 20 Vice President of The Southern company. When Mr. R. P. Mcdonald i 21 succeeded me as President of Southern Nuclear on May 21, 1991, I 22 remained as CEO and also became Chairman of the Board at that 23 time. Then, in May 1992, Mr. Mcdonald replaced me as CEO of the 24 company, but I continued to serve as chairman of the Board of 25 Southerr. Nuclear until my retirement on November 1, 1992. I also 26 served as Corporate Counsel of The Southern Company from July 1 27 1991 until November 1, 1992.

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1 Q. WOULD YOU BRIEFLY DESCRIBE YOUR PROFESSIONAL QUALIFICATIONS l 2 AND EXPERIENCE IN THE NUCLEAR INDUSTRY 7 3 i 4 A. A statement of my professional qualifications is attached as 5 Exhibit A. I have been involved in the' nuclear industry since i

6 1965, when I joined Alabama Power Company as its Executive Vice l 7 President. In addition to my twenty-five years of experience and l 8 responsibility for Plant Farley, I have been involved in a number 9 of professional organizations for the nuclear industry. I was a j 10 member of the Board of Directors of the Institute of Nuclear 11 Power Operations from 1982 through 1989, and served as its 12 Chairman from March 1987 through March 19b9. I was a member of i 13 the Board of Directors of the U.S. Council for Energy Awareness 14 from 1986 to 1992. I was Chairman of the American Nuclear Energy  !

15 Council from 1989 through 1992. I was also a member of the Board f 16 of Directors of the Nuclear Power Oversight Committee from 1989 17 to 1993 and have served as Chairman of its Ad Hoc Cot =ittee on i

18 Advanced Reactors from 1989 to date. (

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20 Q. WHAT IS THE PURPOSE OF YOUR TESTIMONY? i 21 i

22 A. I an here to testify in response to Allen Mosbaugh's 23 contention that the U.S. Nuclear Regulatory Cornission (NRC) was 24 misled regarding the organization controlling the operating 25 license for Plant Vogtle after the formation of the SONOPCO 26 Project in 1988. Specifically, I address Intervenor's assertion

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'l that the NRC should have been told, and'was not, that Mr. Pat 2 Mcdonald, a Georgia Power senior executive officer responsible 3 for Georgia Power's nuclear plants, took his management direction 4 from me rather than from Georgia Power's Chief Executive Officer.- l l

5 l 6 Q. WOULD YOU PLEASE SUMMARIZE YOUR TESTIMONY.

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8 A. Contrary to Intervenor's assertion, my role in the SONOPCO l

9 Project did not involve control over licensed activities at i

10 Vogtle. From the beginning my role was to guide the formation of [

11 Southern Nuclear. I was later (March, 1989) elected by the Board  !

12 of sirectors of The Southern company as Executive Vice President

. 13 - Nuclear, with the recommendation of the President of The  ;

14 Southern Company and with the anticipation by the Boards of ,

i 15 Alabama Power Company and Georgia Power Company that I would 16 ultimately be elected Chief Executive Officer of Southern 17 Nuclear. However, Mr. Mcdonald and I were very much aware that, i 18 until the time that Southern Nuclear became the licensed operator  !

i 19 of Plant Vogtle, I could not legally provide any management

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20 direction to the line management of Georgia Power, the NRC 21 licensee of Plant Vogtle. I was not an officer of Georgia Power.  !

22 I do not believe that any of my actions in connection with the i 23 SONOPCO Project constituted prohibited control over licensed l l

24 activities.  ;

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t i 1 My role in the SONOPCO Project -- guiding the formation of 2 the new company -- was performed as an officer of The Southern 3 Company and Southern Company Services, Inc. ("SCS"), except for a 4 short initial period before I resigned as President of Alabama 5 Power. The provision of services by a service company, like SCS, 6 to other subsidiaries of a holding company is not new to the 7 utility industry. Within registered holding companies under the 8 1935 PUHCA, such service companies are central repositories for 9 financial, engineering, and other support expertise. The type of 10 services that I provided, as an officer of The Southern Company 11 and SCS, to Georgia Power and Alabama Power in connection with 12 the formation of Southern Nuclear was commonplace in this regard.

13 14 I met with the NRC Commissioners in 1988 and 1990 to brief 15 them on the plans to form, and later to advise them of the status 16 of, Southern Nuclear. The formation of Southern Nuclear followed 17 the pattern of formation of General Public Utilities subsidiary, 18 GPU Nuclear, with which the NRC was familiar. It was also 19 typical of other consolidations of nuclear expertise which have 20 taken place, such as Northeast Utilities and Entergy.

21 22 From time to time since 1988, I have described my role in 23 the SONOPCO Project to high-ranking NRC managers and freely 24 discussed it with other high-level individuals in the nuclear 25 industry with whom I interfaced in my positions at Alabama Power, 26 SCS, The Southern Company, INPO, ANEC and USCEA. Further,

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1 numerous publications of the Southern system companies have

'2 described my activities. I know that the NRC was fully aware of 3 my role in the SONOPCO Project. Certainly, no efforts were made 4 to conceal my activities, rather, I went to some lengths to 5 describe them.

6 7 Q. PLEASE DESCRIBE THE HISTORY OF SOUTHERN COMPANY SERVICES, 8 INC. AND THE SERVICES IT HAS PROVIDED TO THE SOUTHERN COMPANY 9 OPERATING COMPANIES OVER THE YEARS.

10 11 A. Many holding companies, going back to the early 1900s, had 12 engineering and other support functions in a mutual service I 13 company. For example, Commonwealth and Southern, predecessor of 14 The Southern Company and owner of a number of utilities including 15 Alabama Power and Georgia Power, had a service company known as 16 Commonwealth Services, Inc., which did many functions for the 17 various operating subsidiaries. Within Commonwealth and 18 Sc;'thern, the service company operated a load dispatch center in 19 Birmingham for the Alabama, Georgia, Gulf and Mississippi 20 affiliates from to early as the 1920's. At the time of the 21 creation of The Southern Company and its approval by the SEC in 32 1948 (at which time it received the common stock of Alabama, 23 Georgia, Gulf and Mississippi Power from Commonwealth and 24 Southern) the SEC also approved the creation of a service company 25 known as Southern Services, Inc. Its name was later changed to 26 Southern Company Services, Inc. Its function from the very

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i 1 beginning was to supply load dispatch and power pool services l 2' (even including the operation of the throttle at all company l 3 steam plants), to supply engineering services, and to supply i 4 financial services and expertise. Its personnel, many of whom 5 are officers of all system companies, prepare SEC filings, proxy l

6 statements and securities registrations for all the companies.  !

7 It handles most insurance procurement and prepares federal income 8 tax returns and other matters. As time went by, Southern Company l 9 Services grew and developed the e.xpertise to design all of the 10 several companies' fossil plants and hydro plants and does  !

I 11 considerable work in transmission and substation design as well  !

12 for some of the companies. In the nuclear area, it oversaw the  ;

i 13 preparation of the initial design and handled the competitive  ;

i 14 bidding for equipment for the Hatch, Farley and Vogtle Plants.

15 As in the case of fossil and hydro, it evaluated the several bids 16 and recommended to the appropriate company the lowest and most 17 desirable bid. It also served as architect engineer, along with 18 Bechtel Corporation, for the construction of these nuclear l

19 projects.

20 21 Many functions have become consolidated over the years in i 22 Southern Company Services, which operates as an SEC approved 23 supplier of services to each of the companies. An example is 24 customer billing. For over 20 years, all meter readings from the 25 customers throughout the system have been sent to a data 26 processing center in Atlanta, where customer bills are prepared l 5

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l- and then mailed to the' customers of each of the operating

  • 2 affiliates.

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4 Q. NAS THE CONCEPT OF CONSOLIDATING THE OPERATIONS OF MULTIPLE  ;

5 OPERATING COMPANIES UNIQUE TO THE SOUTHERN COMPANY NUCLEAR 6 FACILITIES? l 7

8 A. No. Following the decision to commence consolidation of 9 nuclear matters in a nuclear operating company, The Southern  :

10 Company and its several subsidiaries have moved toward a more r 11 consolidated operation of the fossil and hydro generation as .

l 12 well, with the present Executive Vice President of Southern i

' 13 Company Services, Bill Guthrie, holding a similar title at each 14 of the operating Companies, Alabama, Georgia, Gulf, Mississippi 15 and Savannah.

16 17 Throughout the utility industry, other holding company I la syalema have followed a similar pattern. American Electric Power 19 Company has always been more centralized than The Southern 20 Company. For example, for many years, the CEO of American 21 Electric Power was also the CEO of each subsidiary, Appalacb4:n 22 Power, Ohio Power, Indiana-Michigan Power, etc. The engis,4s /ing 23 and operating functions are far more centralized and actually, i

j 24 The Southern Company has followed that pattern in more recent

! 25 years, all with the approval of the Securities and Exchange 26 Commission ("SEC"). The Allegany Power system, Entergf, General l

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l 1 Public Utilities, Central and Southwest, and Northeast Utilities 2 have followed similar patterns. All are subject to the Public 3 Utility Holding Company Act and all have gradually centralized 4 their operations as time has gone by, all with the approval of 5 the SEC. Obviously, improved communications and information 6 technology have made much of that centralization effective and 7 available. Above all, the motivation has been and still is to 8 improve performance, reduce costs and thereby benefit ratepayers 9 and shareholders by taking ad. vantage of economies of scale and 10 avoidance of duplication and overlapping of work and overhead.

11 12 Q. ON WHAT WAS THE CONCEPT FOR A SEPARATE OPERATING COMPANY 13 BASED?

14 15 A. The first formation of a nuclear operating company (a 16 company formed to operate a unit or a number of nuclear units at 17 different sites) known to The Southern Company was at General 18 Public Utilities (GPU) . Following the Three-Mile Island 19 accident, GPU undartook to bring Unit 1, which was undamaged, 20 back on line. After extensive investigation, the NRC, so we were 21 advised, strongly recommended to GPU that it form a nuclear 22 operating company to operate the remaining Three-Mile Island unit 23 and the Oyster Creek unit in order to concentrate its nuclear 24 talent in one enterprise rather than having Jersey Central Power 25 & Light and Metropolitan Edison be the separate operators of the 26 two units within the holding company. In fact, it is our 1 understanding that such a consolidation was a prerequisite for 2 permission to restart Three-Mile Island Unit 1.

3 4 We discussed the formation of GPU Nuclear with its personnel 5 and followed very closely the pattern that it had established, 6 which was approved by the NRC and the SEC. The NRC was fully 7 familiar with the GPU model and commended it to us. That pattern 8 also included an interim transition organization whereby officers 9 were double-hatted.

10 11 Q. HAVE OTHER UTILITY HOLDING COMPANIES CONSOLIDATED THEIR 12 NUCLEAR OPERATING EXPERTISE INTO NUCLEAR OPERATING SUBSIDIARIES?

I 13 14 A. Yes. At about the same time as we began the project, 15 Entergy undertook to create a nuclear operating company within 16 its system and discussed the matter with me. Its pattern 17 followed closely the Southern Nuclear and GPU approach. Entergy 18 started the process later than Southern but completed it earlier 19 because of the lack of delays that Southern Nuclear has 20 experienced Northeast Utilities has similarly consolidated its l

21 nuclear operations. In the case of Entergy, Arkansas Power and 22 Light Company's Arkansas Nuclear One two-unit plant, Louisiana i I

23 Power and Light's Waterford Plant, and Mississippi Power & I 24 Light's Grand Gulf Plant had their licenses amended to transfer ,

25 operating authority to Entergy Operations Inc., a nuclear l

26 operating company, after SEC approved formation of that j

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i i subsidiary. Since that time, it has undertaken to assume 2 responsibility for the River Band Plant owned by. Gulf States i i

3 Utilities after its merger into the Entergy system.

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5 Q. WHAT ROLE DID YOU HAVE IN THE FORMATION OF SOUTHERN NUCLEAR? '

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7 My role in the formation of Southern Nuclear evolved, but 8 was mainly related to overseeing assembly of the Southern Nuclear l 9 organization, representing The Southern company externally on the ,

10 project, and keeping The Southern Company Board informed.

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12 As I mentioned earlier, in 1987 and 1988, I was the 13 President and CEO of Alabama Power Company, and a member of the 14 Southern company Board of Directors. In this capacity, I was  ;

15 involved in discussions of the potential benefits of forming a i 16 nuclear oparating company and agreed, along with the CEO of GPC i 17 (Mr. Scherer) and the CEO of The Southern Company (Mr. Addison), i 18 that task forces should be formed to consider this matter. In 19 this same capacity, I followed closely and concurred in the task j 20 force recommendations, in late 1987 or early 1988, to form a 21 nuclear operating subsidiary. l 22  :

23 In this same time frame, Mr. Addison asked me to be involved 24 with, and serve, the project to form what is now Southern 25 Nuclear. In September of 1988, Mr. Addison announced that he had l

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1 asked me to devote a portion of my time to guide the formation of f 2 the operating company.

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4 In February, 1989, I was elected Executive Vice President-5 Nuclear of The Southern Company and of Southern Company Services I 6 (effective March 1, 1989). At the same time, it was announced 7 that I would be recommended to serve as President and CEO of ,

t 8 Southern Nuclear after the necessary regulatory approvals had 9 been obtained to create that company.

l 10 11 Throughout this period, I reported periodically to The 12 Southern Company Board of Directors, The Southern Company ,

i 13 Management Council, and to the CEO of Southern Company Services t

14 on the status of the efforts to form Southern Nuclear. I also 15 met with the NRC Commissioners on several eccasions to discuss 16 the formation of Southern Naclear.

17 18 Q. PLEASE DESCRIBE YOUR MEETINGS MITH THE NRC COMMISSIONERS.

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20 A. On February 16, 1988, Mr. Mcdonald and I, along with legal 21 counsel, Bob Edwards and Nick Reynolds, met separately with then 22 Commissioners Zech, Bernthal and Roberts. We also met with 23 Victor Stallo and members of his staff. He was at the time NRC 24 Executive Director for Operations. The purpose of the meetings 25 was to brief these officials about The Southern Company's  :

26 tentative plans to form a separate nuclear operating company. We ,

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1 reviewed the several phases which would have to be involved,  ;

2 pending SBC approval, and ultimate' license amendment. The 3 Commissioners all endorsed the concept and were, of course, .

1 4 familiar with GPU's previous action.

5 6 On May 2, 1990, after Oglethorpe had intervened, and the SEC 7 decision delayed, Mr. Mcdonald, Mr. Hairston and I together met ,

8 separately with then-Commissioners Roberts, Rogers, Curtiss, and 9 Carr, as well as, Mr. Stallo and Steve Varga (then NRC Project 10 Director). The purpose of the meetings was again to report on 11 the status of formation of Southern Nuclear and the reasons for 12 delay. As memorialized in the memorandum prepared by Mr. i 13 Mcdonald (333 Exhibit M to Mr. Hairston's testimony), we 14 described the three Phases, explaining that we were then in Phase 15 I and would remain there indefinitely, pending SEC approval. We 1

16 also described my role as Executive Vice President of The i

17 Southern Company and SCS and the services provided by the SCS  :

18 Technical and Administrative groups. As with the 1988 meetings, 19 each Commissioner was supportive and expressed the desire that we 20 be able to go forward as soon as possible.

21 22 Q. DID YOU DISCUSS YOUR ROLE IN THE SONOPCO P!AOJECT WITH OTHER 23 MEMBERS OF 'lHE NUCLEAR INDUSTRY?

24 25 A. Yes. Because I have held high-level positions with the 26 nuclear industry, I frequently interacted with high-level NRC l

1 personnel and others in senior positions in the industry. For 2 example, as a board member and as Chairman of INPO, I attended 3 the INPO CEO Conferences. Those conferences were attended by 4 high level NRC personnel and other members of the nuclear 5 industry. I talked freely with these individuals about the 3 SONOPCO Project. I specifically recall a luncheon that I 7 attended in Washington D.C. at which I sat next to NRC Chairman 8 Salin and informed him of the progress made on the formation.of 9 Southern duclear.

10 11 I also addressed a number of groups of people, such as local l 12 chapters of the American Nuclear Society, groups of Georgia 13 Power, Alabama Power, and SCS employees, and civic clubs, such as l 14 rotary clube in Dothan, Alabama and Birmingham, Alabama.

i 15 16 Q. DID THE SOUTHERN COMPANY MANAGEMENT COUNCIL ACT AS THE BOARD ,

17 OF DIRECTORS FOR THE SONOPCO PROJECT? r 18 19 A. No. There was no Board of Directors for the SONOPCO Project 20 and there was no Board of Directors for Southern Nuclear until it 21 was duly incorporated in late 1990. Some of the individuals who 22 later became members of the Board of Directors of Southern 23 Nuclear met as a matter of course as they constituted the 24 Management Council, the senior executive group, of the Southern 25 Company management. However, those individuals met as the senior l 26 executives of the operating companies of The Southern company

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1 (e.g., as members of the Southern Company Management Council),

2 not as members of a Board of Directors of Southern Nuclear. On 3 some occasions, I would report in these meetings on the status of 4 efforts to form Southern Nuclear. These meetings addressed all 5 types of issues, such as how to deal with environmental 6 requirements or whether one of the companies should implement an 7 early out program or how to improve training within the system.

8 While this group would be concerned about the financial 9 performance of The Southern Company, it would not attempt to 10 oversee individual company budgets.

11 12 Q. WHAT AUTHORITY DID YOU HAVE IN THE SONOPCO PROJECT PRIOR TO 13 BECOMING EXECUTIVE VICE PRESIDENT - NUCLEAR OF THE SOUTHERN .

14 COMPANY AND SCS?

15 16 A. Prior to becoming the Executive Vice President - Nuclear of 17 The Southern Company and SCS, I was President of Alabama Power 18 and had ultimate responsibility for the operation of Plant 19 Farley. I had no authority over licensed activities at Plants 20 Hatch or Vogtle or over personnel matters concerning Georgia l

21 Power employees. With respect to thu actions undertaken to form 22 Southern Nuclear, I had been asked by Mr. Addison to devote a 23 portion of my time to guiding the formation of the new company.

24 This included negotiations with oglethorpe Power in order to 25 facilitate the formation of Southern Nuclear. Such discussions 1 were undertaken with the knowledge and approval of Mr. Dahlberg, I 2 CEO of Georgia Power Company.

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4 Q. DID YOU HAVE ANY DIFFERENT AUTHORITY WHEN YOU BECAME  !

5 EXECUTIVE VICE PRESIDENT-NUCLEAR OF THE SOUTHERN. COMPANY AND SCS?

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7 A. Yes. First, I no longer had any authority over licensed 8 activities at Plant Farley or over personnel matters affecting l 9 Alabama Power employees. Second, as an officer of The Southern  !

10 Company, I represented The Southern Company externally on the t 11 formation of Southern Nuclear, which I continued to guide, and I 12 reported to The Southern Compa'.y Board of Directors and The j i

13 Southern Company Management Council on matters pertaining to the 14 formation of Southern Nuclear. Third, I performed services for  ;

l 15 the SONOPCO Project pursuant to a letter agreement between j 16 Georgia Power and SCS dated April 24, 1989. Pureuant to that  !

17 agreement, I provided services relating to the planning and  !

18 preparation for the anticipated transfer of nuclear operating and l 19 support activities from Georgia Power to Southern Nuclear in 20 compliance with applicable regulatory requirements, and I also 21 provided nuclear support on an industry basis. For example, I 22 advised the operating companies whether certain functions, such 23 as procurement of equipment, should be performed by Southern 24 Nuclear. Therefore, I was in a suppor t role during that period, 25 I had an oversight role in the assembling of the group, and I had I

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1. some involvement in keeping the'various parts of The Southern 2 Company informed about our progress.

3 4 Q. DID YOU HAVE ANY RESPONSIBILITIES FOR THE ADMINISTRATIVE 5 SUPPORT SERVICES SECTION OF THE SONOPCO PROJECT DURING PHASE I? l 6

7 A. Technically, no. Georgia Power had not specifically 8 requested my services for oversight of the SCS Administrative 9 Services group, and that group provided its services (such as 10 accounting and financial analysis, corporate security, and l 11 employee and labor relations) directly to Georgia Power 12 (reporting to Mr. Mcdonald), pursuant to the April 24, 1789 i

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i 13 letter agreement. However, after I became Executive Vice i 14 President of SCS, I worked with the Administrative Services group  !

15 and exercised some supervision over certain administrative l

16 matters. While the Administrative Services group reported l t

17 functionally to Mr. Mcdonald, with respect to the support 18 provided for the operation of Georgia Power's nuclear plants, f 19 there were certain other activities that Mr. McCrary performed )

20 for me and some administrative responsibilities where he reported  ;

21 to both me and Mr. Mcdonald, jointly. For example, governmental 22 affairs relating to Congressional relations was under Mr.  !

23 McCrary, but it was regarded as my responsibility rather than Mr.

24 Mcdonald's. Administrative matters pertaining to the formation 25 I of Southern Nuclear were the responsibility of both myself and

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I 1- Q. DURING PHASE I, DID YOU FUNCTION IN THE CAPACITY OF A CHIEF ,

k 2 EXECUTIVE OVER THE SONOPCO PROJECT?

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4 A. No. I did, however, share with Mr. Mcdonald some 5 responsibilities to administer the SONOPCO Project. ,

6 7 Q. DOES THE FIGUP?, INCLUDED AS ATTACHMENT 1 TO INTERVENOR'S 8 DECEMBER 12 STATEMENT OF ISSUES ACCURATELY DEPICT THE REPORTING i

9 RELATIONSHIPS FOR THE SONOPCO PROJECT?

10 11 A. No. As described above, Mr. Hairston reported to Mr.

12 Mcdonald, not me; Messrs. Long and McCrary functionally reported 13 to Mr. Mcdonald, not to me on the Georgia Power plants; Mr.

14 Mcdonald reported to Mr. Dahlberg, not to the Southern Company 15 Management Council; and Mr. Dahlberg reported to the Georgia 16 Power Board of Directors, not to the Southern Company Management 17 Council. The same was true for Mr. Harris at Alabama Power.

18 19 Q. WHAT WAS YOUR AUTHORITY WHEN YOU BECAME PRESIDENT AND CEO OF 20 SOUTHERN NUCLEAR, AFTER ITS INCORPORATION?

21 22 A. Once I became President and CEO of Southern Nuclear, I was 23 in the line of management over all Southern Nuclear personnel.

24 However, there were recognized constraints on my authority and 25 responsibilities. I still did not have any authority over 26 licensed activities for Georgia Power's nuclear plants or over

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1 Georgia Power personnel. Furthermore, I did not exercise any 2 management control over licensed activities at Georgia Power's 3 nuclear plants or over Georgia Power personnel. Consequently, my 4 main responsibility was administrative.

5 6 Q. WHAT WAS YOUR RELATIONSHIP TO MR. MCDONALD?

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8 A. Initially, when the SONOPCO Project was first formed, I was 9 the CEO of Alabama Power, and Mr. Mcdonald reported to me with 10 regard to the operation of the Farley nuclear plant. I had also  ;

11 been asked by Mr. Addison to help guide the formation of Southern 12 Nuclear, and Mr. Mcdonald and I worked closely together in i 13 addressing the administrative matters relating to the formation I 14 of Southern Nuclear.

15 16 After I became Executive Vice President of SCS, I provided -

17 certain services to the SONOPCO Project pursuant to the April 24, f

18 1989 agreement, relating to the formation of Southern Nuclear and 19 industry activities in general, and I continued to help guide the 20 formation of Southern Nuclear. I was also expected to become the 21 CEO of Southern Nuclear after its incorporation and moved to the 22 SONOPCO Project offices. I kept in close communication with Mr.

23 Mcdonald during this period, in order to stay informed, and I l 24 continued to work with him on administrative matters pertaining l

25 to the Project. In a sense, we shared a set of joint 26 responsibilities to administer the SONOPCO Project. These joint l

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i 1 responsibilities, however, did not extend to licensed activities 2 or responsibilities. I had resigned my position as CEO of 3 Alabama Power, and therefore Mr. Mcdonald no longer reported to l 4 me with respect to Plant Farley. He never reported to me with 5 respect to operation of Plant Vogtle or Plant Hatch. 1 6

7 After Southern Nuclear was incorporated, my relationship J

8 with Mr. Mcdonald changed in the respect that our informal 9 working relationship for administrative matters was formalized.

10 After the incorporation, Mr. Mcdonald formally reported to me 11 with respect to tho administration of Southern Nuclear matters.

12 13 Q. DID YOU EVER ACT AS AN EMPLOYEE OR OFFICER OF GEORGIA POWER 14 COMPANY?

15 16 A. No, to the contrary, I was never an employee or officer of 17 Georgia Power and I never sought to exercise control over 18 licensed activities at Plants Hatch and Vogtle. Nor did I ever

19 exercise any decision-making authority regarding any Georgia ,

20 Power matters relating to those plants. Specifically, I never 21 gave management direction to Mr. Mcdonald, or any other Georgia 22 Power officer or employee, regarding the operation of Plant Hatch 23 or Plant Vogtle. To my knowledge, Mr. Mcdonald reported to and 24 received all of his management direction concerning Georgia 25 Power's nuclear plants from either Mr. Scherer or Mr. Dahlberg.

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1 1 Q. AT THE TIME YOU BECAME INVOLVED IN THE SONOPCO PROJECT, WAS 2 ANY EFFONF NhDE TO UNDERSTAND WHAT WERE THE ACTIVITIES WHICH, IF 3 PERFORNED BY YOU, WOULD HAVE CONSTITUTED CONTROL BY YOU OVER 4 LICENSED ACTIVITIES AT PLANT VOGTLE?

5 6 A. Yes. At the time we were exploring the various options for 7 forming Southern Nuclear, we attempted to understand all the 8 legal pitfalls which we might encounter. One we were very much 9 aware of was that until Southe,in Nuclear was licensed by the NRC, 10 it could not have control ovcz- licensed activities at the nuclear 11 plants. We understood this to mean that Southern Nuclear 12 esployear., or for that matter anyone who was not employed by the 8 13 licensee of the plants (e.g., SCS employees), could not direct 14 the activities of licensed personnel at the nuclear plants, i.e.,

15 individuals licensed by the NRC under 10 C.F.R. Part 55.

16 17 I did not consider my role in the SONOPCO Project as 18- constituting a prohibited exercise of control over licensed 19 activities. To the contrary, Mr. Mcdonald and I recognized that 20 I had no authority to, and could not legally, exercise management 21 direction over line management for the nuclear plants, which 22 included Neesrs. Mcdonald, Hairston, and for Plant Vogtle, 23 Messrs. McCoy and Bockhold.

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1 Q. PLEASE DESCRIBE YOUR INVOLVEMENT IN SONOPCO PROJECT STAFF i

2 NEETING5 A2 THE REASONS FOR SUCH INVOLVEMENT.

3 4 A. After Narch 1, 1989 (when my office was relocated from i

5 Alabama Power's offices to the SONOPCO Project offices) and prior 6 to the incorporation of Southern Nuclear, I attended various 7 SONOPCO Project staff meetings which were held in the offices in 8 Birmingham, Alabama. I attended them in my capacity as Executive  :

9 Vice President - Nuclear of The Southern company and for the 10 purpose of staying abreast of developments at the nuclear plants owned by subsidiaries of The Southern Company.

11 Also, I would i

from time to time hear reports from Alabama Power and Georgia

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12 13 Power management advising the staff of developments at their 14 nuclear plants. Based upon the information I gathered at these 15 meetings, and in conversations with Georgia Power and Alabama 16 Power management, I reported to.The Southern Company Board of 17 Directors regarding the Southern system's nuclear plants.

18 19 In addition, it was anticipated that I would become 20 President and CEO of Southern Nuclear, once it was incorporated.

21 It was therefore necessary for me to stay informed as to 22 developments at Georgia Power's and Alabama Power's nuclear l

23 plants so that I could assume my responsibilities at Southern 24 Nuclear should it become the operating licenses for the plants.

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'1 Q. DID YOU DIRECT THE OPERATING PHIIDSOPHY AND OTHER EXECUTIVE 2 MATTERg muING THE OPERATION OF PLANT VOGTLE IN THOSE SONOPCO 3- STAFF MEETINSS7 t

4 5 A. No. I did not have any authority to control, nor did I )

6 attempt to exercise any control, over management decisions 7 affecting licensed activities or personnel matters concerning 8 Georgia Power's Plant Vogtle.

9 10 Q. PLEASE DESCRIBE HOW SCS OFFICERS MESSRS. McCRARY AND LONG 11 WERE SELECTED AND ELECTED TO WORK WITHIN THE SONOPCO PROJECT?

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's 13 A. Both Mr. McCrary and Mr. Long were selected in 1988 to fill 14 SCS positions (Vice President-Administration and Vice President-15 Technical Services, respectively) within the SONOPCO Project.

16 Mr. Long's position in the SONOPCO Project was very similar to l 17 the position he already held in SCS, and in essence he continued i

18 to perform many of the same functions that he had performed 19 before the reorganization. Mr. NcCrary's function in SONOPCO was 20 also similar to administrative functions that had been performed 21 by SCS prior to the reorganization, but expanded somewhat to 22 support the full project.

23 24 There was nothing unusual about the appointment of either of 25 these individuals. The selection process was in fact quite

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I 1 typical of the way senior SCS personnel have always been 2 selected. l 3 i 4 In the case of Mr. McCrary, as in the case of the selection l l

5 of other management personnel, notice was sent to all companies 6 to suggest names for the Administrative Vice President position 7 and a committee was designated to review and make recommendations S for the best qualified persons. This has been and still is the 9 standard practice for selection of mane nrs throughout The 10 Southern Company system. Several names were submitted, which I 11 do not recall except for Bob Gilbert and Charles McCrary. As I 12 recall, several names from Georgia Power Company were submitted.

13 A review committee consisting of myself, Mr. Mcdonald, Tom 14 Nunnelly (EVP Southern Company Services) and a representative 15 from both Alabama Power and Georgia Power were included. Jack 16 Causey attended on behalf of GPC; Mr. Grady Baker had been 17 invited but could not attend. I do not recall the name of the 18 Alabama Power representative. The candidates had submitted 19 resumes and I believe Dr. Jim Tanner, Industrial Psychologist, 20 who consults with the several Southern company affiliates, was I

21 also present or, if not, his input had been received. As I 22 recall the meeting, the consensus was clear that Mr. McCrary was 23 the most qualified person for the job. It was conveyed to the 24 President of Southern Company Services, by whom the 25 Administrative Vice President would be employed, that Mr. McCrary 26 was clearly the consensus choice. In due course, Mr. McCrary's 4

1 name was submitted to the Board of Directors of Southern company l 2 Services and he was elected Vice President. This took place  ;

3 sometime during 1988, probably in the summer.  !

t 4

5 This typical practice of seeking nominations from throughout 6 the system and the convening of a committee representative of the 7 system, followed by the making of recommendations to the hiring '

8 company, has been the practice for at least 20 years. t t

9  !

10 Mr. Long was employed by SCS in 1970 and worked initially  !

11 under Ruble Thomas, Vice President-Nuclear of SCS. After Mr.

12 Thomas retired, Mr. Long became General Manager of this area. In  !

i 8

13 that capacity, Mr. Long oversaw the procurement of nuclear fuel i 14 (including the uranium, processing, enrichment and fabrication of

, 15 fuel), design of the fuel core, and NRC licensing support for 16 Hatch, Farley and Vogtle (including the Preliminary and Final f t

17 Safety Analysis Reports for all three plants). His group also l 18 oversaw a number of technical areas which supported The Southern j 19 Company system's three nuclear plants. Mr. Long and his group, l 20 comprised of approximately 60 people, were located in SCS' L

21 l Inverness Center engineering complex in Birmingham. Mr. Long 22 also was one of the participants in the study within the system  ;

23 on the implementation of a nuclear operating company.

l 24 i i l 25 In assembling the naclear group for the SONOPCO Project, it l l

26 was obvious that Mr. Long, a very respected senior manager, and i

i 1 his staff should of necessity be a part of that group. In fact, 2 his persomme3 never moved from the sixth floor of the building in '

3 which they were working prior to 1988, and remain today on the i 4 same sixth floor. Their presence and support from SCS to the j 5 nuclear operations remained constant and it was very clear to ,

6 everyone within the SCS Board of Directors and to Alabama Power j 7 and Georgia Power personnel that Mr. Long was the obvious 8 candidate for Vice President-Technical Services at SCS. It was 9 not thought necessary to convene a selection committee because of 10 the obvious continuity involved with this support group.

11 12 Q. DID YOU SELECT AND APPROVE GEORGIA POWER'S NUCLEAR

, 13 MANAGEMENT STAFF?

14 15 A. No. The decision to select the individual officers 16 responsible for Georgia Power's nuclear operations was made by 17 Georgia Power management, with the ultimate approval of such  ;

18 selections being made by the Board of Directors of Georgia Power.

19 20 Q. WHAT WAS YOUR INVOLVEMENT WITH THE SELECTION OF MR. McCOY AS 21 AN OFFICER OF GEORGIA POWER?

22 23 A. My involvement consisted of discussing it with Mr. Mcdonald 24 at some length when he told me he was thinking about making an 25 offer of employment to Mr. McCoy. The idea to offer the position 26 to Mr. McCoy was Mr. Mcdonald's, not mine. He asked my thoughts

I about it, and we talked about it. He knew that I had known Mr.

2 McCoy at Im e. I was chairman of the bocrd of INPO and served on 3 its board for seven years; Mr. McCoy was a part of the staff at 4 INPO. So he asked my thoughts about Mr. McCoy and I expressed a 5 favorable view.

6 7 Q. WHAT WAS YOUR INVOLVEMENT WIT 54 THE SELECTION OF MESSRS.

8 MCDONALD AND HAIRSTON AS OFFICERS OF GEORGIA POWER?

9 10 A. My involvement consisted of giving my concurrence as 11 President of Alabama Power Company that Messrs. Mcdonald end 12 Hairston, who were officers of Alabama I?ower, could take on the

, 13 additional responsibilities of managing Georgia Power's nuclear 14 facilities. The recommendation that Messrs. Mcdonald and 15 Hairston become officers of Georgia Power was not mine; it came 16 from Georgia Power's Grady Baker, who approached me about this 17 possibility. Mr. Baker's predecessor, James H. Miller, Jr.,

18 President of Georgia Power, had approached me also several years 19 earlier. Initially, I probably expressed some reservation, but I 20 felt it was inevitable and probably appropriate that it be done.

21 I wanted some assurance that their talent would still be 22 available to Alabama Power Company as well and that assurance was 23 worked out.

24 p4e l l

1 Q. DID YOU APPROVE THE NUCLEAR SUDGET FOR PLANT VOGTLE? l 2 .l 3 A. I did met make the decision that a budget was acceptable; 4 that decision belonged to the President of Georgia Power, Mr.

5 Dahlberg. The budget did have my blessing but I did not make the 6 decision.

7 ,

8 Q. WHY WERE SOUTHERN COMPANY AND SCS PERSONNEL INVOLVED IN THE ,

9 REVIEW OF GEORGIA POWER'S NUCLEAR BUDGET? l 10 l

11 A. The Southern Company, as a registered holding company under 12 the Public Utilit.y Holding Company Act of 1935, is the only l

13 entity which can sell common st ock and raise equity capital for 14 the subsidiaries. While the su.bsidiaries can sell, with SEC 15 approval, bonds and preferred stock, they cannot do this without 16 an appropriate level of common stock in their capital structure.

17 Thus, both by capital marketplace requirements and SEC -

18 guidelines, they must rely on The Southern company to supply them j i

19 with adequate common stock to support their capital structure. '

l 20 That is the :aajor function of the holding company and its board l

21 of directors. As the representative of the common stockliciders, l 22 it must review and scrutinize capital budgets carefully. The 23 need for capital and the earnings to support it must be justified 24 to the holding company. This is really the rationale upon which 1

25 the holding company is based.

26 l

+ -

1 With respect to the operating budgets of the subsidiaries, 2 budget preparation is done with input from SCS, and now also 3 Southern Nuclear personnel. The southern Company reviews these l

4 budgets because, as an and result, the combined earnings results  !

l 5 from the subsidiaries make up the earnings for Southern's common l 6 stockholders. These earnings must be adequate to support the 1 1

7 value of existing stock and to support, when necessary, the 1

8 issuance of new common stock. j 9

10 The CEO of The Southern Company, Mr. Addison, as the 11 representative of the common stockholders, must convey the j 12 necessary guidelines and requirements for adequate earnings and  ;

i 13 reasonable capital needs and, of course, to hold the subsidiaries l 14 accountable for their performance. In the course of Mr.

15 Addison's review of the budgets, he would rely on The Southern 16 Company staff and anyone else who could give him helpful comments 17 on the budgets, including myself.

18 19 Q. DO YOU RECALL MEETINGL IN BIRMINGHAM WITH MR. ADDISON TO 20 REVIEW GEORGIA POWER'S NUCLEAR BUDGETS?

21 22 A. The only meetings that I recall being held in Birmingham 23 about Georgia Power's nuclear budget would have been as a part of 24 a presentation that the SONOPCO group made to Mr. Addison and Mr.

25 Addison's staff about the budgets for the three plants, which was 26 a recommended budget in the case of Hatch and Vogtle from

1 Mr. Mcdonald and Mr. Hairston, and the Hatch and Vogtle 2 organizations to Georgia Power. Mr. Addison at that point, as he 3 did and had for several years, paid a visit to each of the 4 operating groups to get a report on their budgeting. And rather 5 than having the nuclear budgets simply as a part of Alabama's and 6 Georgia's, they were given by Mr. Mcdonald and Mr. Hairston and 7 the project vice presidents to Mr. Addison so that it would be a 8 more specialized meeting.

9 10 Q. WERE THE BUDGET APPROVALS GIVEN AT THOSE BIRMINGHAM 11 MEETINGS?

12 i 13 A. No. The approvals were given at Georgia Power and at i

14 Alabama Power respectively, the budget approval being given by 15 the CEO of the company and the capital budget approval being 16 given by the board of directors of the respective company.

17 18 Q. WHO ATTENDED THOSE PRESENTATIONS?

19 20 A. I did, along with perhaps thirty to forty people that would 21 include Mr. Addison's Southern Company group, usually the chief 22 financial officer, Mr. Westbrook, and three or four others from 23 Mr. Addison's Southern Company staff and a number of the SONOPCO 24 personnel including Plant Vogtle and Plant Hatch and Plant Farley 25 organizations and the staff organizations that were a part of the 26 SONOPCO project. And probably the President of SCS would be

_~. .. . . - - _

i 1 available and usually the Presidents of Alabama Power and Georgia ,

2 Power or their representative would be there.  !

3 l t

4 Q. DID YOU DISCUSS THE PLANT VOGTLE OUTAGE PHII4 SOPHY WITH PIANT S VOGTLE MANAGEBENT?  !

6 7 A. I do not recall discussiag the specific subject of outage 8 philosophy at Pltnt Vogtle with anyone. Ho'tevar, I do recall l i

9 having some discussions about outage philosoA y in general with i 10 Mr. Mcdonald. This may have been discussed at SONOPCO management '

11 retreats, but my recollection is not clear. ,

12 a 13 Q. DID YOU OVERSEE THE ESTABLISHMENT OF THE OUTAGE PHIIDSOPHY ,

14 FOR PIANT VOGTLE? {

15 '

16 A. No. I was never involved in overseeing the establishment of 17 the outage philosophy for any of Georgia Power's nuclear plants, 18 The outage philosophy for Plant Vogtle was a matter for Mr.

19 Mcdonald to determine, in consultation with the management of ,

20 Georgia Power. I had no authority to exercise, and did not 21 exercise, management control over such operational matters.

22 1

l

1 Q. DID YOU ADDRESS THE EMPI4YEES OF GEORGIA POWER'S AND ALABAMA 2 POWER'S NUC&BAR PLANTS CONCERNING SAIARY AND INCENTIVE PAY  :

3 PROGRAMS?

4 5 A. Yes. As Executive Vice President of The Southern Company, I 6 attended meetings at Plants Hatch, Vogtle and Farley, probably in 7 1989 or 1990, to discuss changes in policy relating to system- l 8 wide salary and incentive pay programs, as well as to be a l

\

9 participant in the overall employee concerns programs. Changes l l

10 to the incentive pay programs were being instituted on a system-11 wide basis for all subsidiaries of The Southern Company.

12 However, my discussions with Georgia Power ar.d Alabama Power i 13 employees regarding these matters did not relate to any 14 operational matters.

15 16 Contrary to the assertion of Intervenor in this proceeding, 17 I did not implement changes to personnel evaluations or pay 18 policy with respect to Plant Vogtle nuclear operations personnel.

19 Implementation of such changes was made by Georgia Power 20 management. In the case of employees of other Southern system 21 operating companies, such changes were likewise implemented by 22 the management of the respective operating companies. Ny purpose 23 was to explain and answer questions about Southern Company-wide 24 new policies as a part of a system plan.

25

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l 1 Q. IAIY DID THE " OPTIONAL COMMENTS" SECTION OF THE SYSTEM-WIDE 2 APRIL 4, 1996 PAY-FOR-PERFORMANCE SURVEY (INTERVENOR'S EXNIBIT 5)  ;

3 INDICATE 'SONOPCO PROJECT" AS A SEPARATE COMPANY ?

4 j 5 A. The SONOPCO Project was not a separate " company." It was a f

6 consolidation of the Southern system's nuclear employees from 7 Georgia Power, Alabama Power and SCS into a single location in a Birmingham, as an interim step to eventual formation of a 9 separate nuclear operating company. It was appropriate, however, 10 to consider the comments of those employees as a separate group I 11 from those of other Georgia Power, Alabama, and SCS employees.

12 The survey checklist's characterization of SONOPCO Project as a i 13 " company" merely was a convenient way to consider their responses  ;

14 separately. It was not intended to mean that the SONOPCO Project 15 was a separate company. Identical questionnaires went to all l

16 Southern Company employees. j l

17 l l

18 Q. WHAT WAS YOUR INVOLVEMENT IN GEORGIA POWER'S DECISION TO I 19 DISBAND THE NUCLEAR OPERATION CONTRACT ADMINISTRATION GROUP 7 20 21 A. Ny involvement, if it can be called that, was indirect. Many 22 times Mr. Dahlberg and I discussed generally, not with respect to 23 any particular group, my concerns about any group within the 24 system that would be set up for the purpose of reviewing the work 25 of another group within the system. I felt that this practice 26 was duplicative and created an unnecessary added cost. I

a o 1 believed that if a group was not doing work well, we ought to 2 revise that group rather than just have review groupe look over 3 what that first group is doing. That had been a problem within 4 the Southern Company organization before, and we had collectively I l

5 tried to eliminate that type of what we thought was duplication. l 6 I understood that Mr. Dahlberg agreed with me that this practice 7 was probably not in the best interc.sts of The Southern Company's 8 shareholders. l l

9 10 Q. DID YOU MAKE DECISIONS CONCERNING THE STAFFING OF THE NUCLEAR 11 OPERATION CONTRACT ADMINISTRATION GROUP?

12 ,

i 13 A. No, I don't recall making any such decisions.  ;

14 15 Q. WERE YOU THE CHIEF NEGOTIATOR ON BEHALF OF GEORGIA POWER WITH 16 THE PLANT VOGTLE Co-OWNERS?

17 l 18 A. iio . Between September and November 1989 I believe the most '

19 important part of the negotiation was between me and Mr. Stacey i 20 of Ogle

  • thorpe Power, but there were others involved. It was a 21 multi-leveled negotiation. I was involved in those negotiations 22 at the regumet of Mr. Dahlberg on behalf of Georgia Power. We 23 believed that Mr. Stacey preferred to have some of the 24 substantive matters negotiated at a high level. However, the 25 major part of the negotiations from Georgia Power's vantage point 26 were through Mr. Grady Baker and through Mr. Fred Williams. i i

t 1 Q. DID YOU REVIBf AND APPROVE DRAFT TESTINONY TO BE SURNITIED 2 BY GEORGIA PGIFER TO THE GEORGIA PUBLIC SERVICE CONNISSION IN 3 19897 4

5 A. No. I may have received a copy of the proposed testimony as 6 a courtesy, but I do not recall making specific comments on it.

7 Certainly, I never purported to approve or disapprove such 8 testimony.

9 l

10 l 11 l

Q. DID YOU ATTEND NEETINGS DURING AUGUST AND SEPTEMBER OF 1989  ;

l 12 IN WHICH YOU REVIENED GEORGIA POWER'S DRAFT PERFORMANCE STANDARD i 13 TESTIMONY AND CHANGED ASPECTS OF THAT TESTIMONY?

I 14  ;

15 A. No. I do recall attending one or more meetings during that j l

16 time where the purpose of the meetings was to discuss proposed -

i 17 testimony, but I do not recall providing any input. The proposed i 18 testimony was for Mr. McCoy and Mr. Beckham. Warious So}NOPCO 19 Project staff members worked directly with GPCFs lawyers in 20 developing that-testimony.  ;

21 f

22 i I

1 Q. DURING THESE MEETINGS, DID YOU DIRECT MR. MCDONALD'S 2 ACTIVITIES CONCERNING NHAT TO INCLUDE IN GEORGIA PONER'S 3 TESTIMONY CONCERNING NUCLEAR PERFORMANCE STANDARDS?

4 5 A. No. Mr. Mcdonald received his instructions in that regard 6 from Mr. Dahlberg.

7 8

9 10 i

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6 Gr0 EXHIBIT 24 i FAaLEY A ,

1 JOSEPH M. FARLEY  !

Biographical Information Occupation - Present: Of Counsel Balch & Bingham i Attorneys & Counselors  ;

Board of Directors:

The Southern Company (Advisory) l AmSouth Bancorporation l AmSouth Bank, N.A.  !

Torchmark Corporation Stockham Valve & Fittings Ccmpany

- Former: 1952 to June 1957, associate member of law firm of [

Martin, Turner, Blakey & Bouldin >

June 1957 to April 1%5, member of firm of Martin, l Balch, Bingham & Bouldin April 19,1%5, to April 18, 1969, Executive Vice Presiden: and Director, Alabama Power Company April 1969 through February 1989 President and Director, Alabama Power Company March 1989 through December 1990 Executive Vice President-Nuclear, The Southern Company ,

January 1991 through April 1991 President, CEO, and Director, Southern Nuclear Operating ]

Company l April 1991 through May 1992 l Chairman and CEO, Southern Nuclear Operating Company l 1

June 1992 through October 1992 Chairman of the Board Southern Nuclear Operating Company July,1991 through October,1992 Executive Vice President and Corporate Counsel The Southern Company l

  • ' l ,

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+ < .  ;

t i

Biographical Information - Joseph M. Farley Page 2  ;

L l L

Place and date of birth: Birmingham, Alabama - October 6,1927 i Son of: John G. Farley (<ieenwwi) and I Lynne McConnell Farley -i Brother of: John G. Farley, Jr. - Retired from Southern Company Services, Inc.  ;

Married: Sheila Shirley, October 1,1958 l Dean =i July 6,1978 '

Children: Joseph M. Farley, Jr., 'Ihomas G. Farley and l Mary Lynne Farley Moms  ;

Education: Birmingham University School, graduated 1944  !

Attended Birmingham -Southern College 1944-1945 B.S. Mechanical Engineering,' Princeton University,1948 j Attended Graduate School of Commerce and Business  !

Administration, University of Alabama 1948-1949  !

LL.B., Harvard law School,1952 Military Service: Lieutenant, U. S. Naval Air Reserve (Retired) l

)

Civic, Professional, Social and Fraternal Organizations:

Alabama Children's Hospital Foundation Foundation Board, President 1992-94 Alabama Motorists Association Board of Directors American Nuclear Energy Council Board of Directors, Chairman 1989-92 )

American Nuclear Society Member  !

J Birmingham, Alabama State & .American Member i Bar Associations l Birmingham Area Chamber of Commerce Board of Directors (Honorary)

Chairman, 1972-1973 Business Council of Alabama Former Board of Directors Children's Hospital of Alabama Board of Trustees President 1983-1985 Edison Electric Institute Board of Directors, 1976-1979 Kidney Foundation of Alabama, Inc. Board of Directors 1

.g : ,-

C Biographical Information - Joseph M. Farley Page 3 iradership Birmingham Board of Trustees ,

National Association of Manufacturers Board of Directors, 1985-1992 Nuclear Power Oversight Committee Board Member, 1989-1993 i Nuclear Power Oversight Committee Ad Hoc Chairman Committee on Advanced Reactors Public Affairs Research Council of Alabama Board of Directors 'f t

Southeastern Electric Exchange President, April }984 to April 1985 Southern Research Institute Chairman, Board of Trustees l

{

Tuskegee University Board of Trustees -

U. S. Council for Energy Awarenen Board of Directors, 1986-1992 l University of Alabama in Birmingham President's Council (Honorary) .

~

University of Alabama, Tuscaloosa Chairman, Board of Visitors, l College of Commerce 1991-1992 i University of Alabama, Tuscaloosa President's Cabinet i i

Warrior-Tombigbee Development Association Elected to Life Membership -

in Association Young Men's Christian Association Honorary Director i

Phi Beta Kappa Kappa Alpha l Beta Gamma Sigma (Honorary)  !

Tau Beta Pi Doctor of Humane letters - Judson College, Marion, Alabama (6-29-74) ,

Doctor of Laws - The University of Alabama in Birmingham (6-05-83)

Memberships: 'Ihe Newcomen Society in North America i The Rotary Club of Birmingham (President, 1983-1984)  ;

The Country Club of Birmingham '

Mountain Brook Club (President,1992)

The Downtown Club ,

The Summit Club j The Club, Inc.

Shoal Creek 4

oo . ~1 l

. Biographical Information - Joseph M. Farley Page 4 I

Religion: Episcopalian, Cathedral Church of the Advent; Senior Warden,1970 i Residence: 3333 Dell Road, Birmingham, Alabama 35223 Office: Post Office Box 306 (1710 Sixth Avenue, Noeth) i Birmingham, AL 35201 (Birmingham, AL 35203) l Member Executive Board, National Electric Reliability Council (1972-1976)

Chairman (1974-1976) Southeastern Electric Reliability Council March 1977 - Elected by Alabama Gamma Chapter, Tau Beta Pi, to membership as an " eminent engineer" 1978 and 1979 Chairman of the Birmingham's Take Stock in America Campaign 1982-1983-1984 State Chairman of the Alabama Savings Bonds Committee 1981 General Chairman of Birmingham Area United Negro College Fund, Inc.  ;

i 1986-1987 Utilities Chairman for the United Negro College Fund, Inc. i

.i 1982-1983 Chairman of the YMCA Capital Funds Drive j

President, Alabama Chamber of Commerce (1984) .

August 13, 1984, inducted into membership in Alabama Academy of Honor i Served as Chairman of the Board of Directors of the Institute of Nuclear Power Operations (INPO) from March 1987 through March 1989; Board Member 1982-1989 ,

Named Greater Birmingham Manager of the Year by Birmingham Manag:me it Roundtable-June 9,1989 i

. - - . - . .