ML20112C549

Applicant Exhibit A-2,consisting of Undated Executive Summary Re Cresap,Mccormick & Paget,Inc Dec 1982 Study of Util Mgt & Operations

ML20112C549
Person / Time
Site:	Harris
Issue date:	09/07/1984
From:	CAROLINA POWER & LIGHT CO.
To:
References
OL-A-002, OL-A-2, NUDOCS 8501110250
Download: ML20112C549 (2)

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EXECUTIVE

SUMMARY

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Background

In December 1982, Cresap, McCormick & Paget, Inc. ("Cresap") completN dN -8 P2:51 sxtensive, eight-month study of the management and operations of Carolinn Power & Light Company (the " Company" or "CP&L"). Although the oyerall cenclusions of the Cresap report were most gratifying, the Company condido(edgjgg the principal value of the management audit process to be the identification e cnd resolution of potential improvement opportunities. Consequently, after rsceiving the Cresap report, the Company immediately focused on evaluating the rscommendations included therein and subsequently adopted an aggressive irplementation approach for all recommendations that were accepted.

The Company has filed two reports with the North Carolina Utilities Commission (the " Commission") concerning action plans established in response to Cresap's racommendations. The February 1983 filing described initial actions and plans for responding to the fifty-five Cresap recommendations. directed toward the Company. The June 1983 report contained detailed assessments and action plans fer all recommendations that were accepted by the Company.

As specified in the aforementioned February 1983 filing with, the Commission, icplementation status reports were to be submitted to the Commission each six conths beginning in December 1983. This report, which is the second of the simiannual status reports, includes a summary of recommendations completed since the previous filing with the Commission and provides . the status as of M:y 1, 1984, of recommendations still in the process of implementation.

Overview of Progress to Date Vigorous efforts have been made by the Company in implementing each rzcommendation in order to attain maximum. benefits from the manageme.7t audit process. Through May 1, 1984, implementation of twenty-nine recommendations hed been completed, and an additional sixteen are scheduled to be completed by the end of this year. As implementation efforts have progressed, some schedule extensions have been made for certain recommendations because of

-changed priorities, resource availability, increased knowledge, or other factors. However, it has been, and will continue to be, the Company's intent to implement each of the accepted recommendations in a timely and effective manner.

Status of Implementation of Recommendations S:ction II contains status reports of the Company's action plans for irplementation of those recommendations accepted by the Company. These sta us

, rcports address any r,ignificant schedule. changes and other significant updates cr modifications to the Company's action plans. The information contained harein is reported as of May 1,1984, the latest date which could reasonably ba utilized in order to meet the targeted June filing date.

8501110250 840907 PDR ADOCK 05000400 C. PDR u L 1

l Rtcommendations Implemented Since the Previous Commission Filing I i

A3 pr 2viously mentioned, the Company is ambitiously pursuing the implemen- l tation of the fifty-four recommendations with which it is in agreement. I Szction III lists seventeen recommendations completed as of May 1, 1984, which I ware implemented since the December filing with the Commission.

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