ML20112C603

Applicant Exhibit A-3,consisting of Undated Util Mgt Audit Recommendation Action Plan, from June 1983 Rept to State of Nc Utils Commission

ML20112C603
Person / Time
Site:	Harris
Issue date:	09/07/1984
From:	CAROLINA POWER & LIGHT CO.
To:
References
OL-A-003, OL-A-3, NUDOCS 8501110275
Download: ML20112C603 (3)

Text

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CAROLINA POWER & LIGHT COMPANY g 1

MANAGEMENT AUDIT , 8 RECOMMENDATION ACTION PLAN ,

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1. Report Reference & Responsibility .

1 E. Recommendation Area Executive Organization i A. Recommendation No.

B. Chapter Reference V-3 and Management Syhm-8 P2:52 C. Priority Primary F. Responsibility of chairman /PreM$ent *

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D. Durat,on i Short edAncn i

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11. Recommendation Description The Company should consider adding one or more outside directors to its Board who are experienced in or knowledgeable about nuclear uti1*.ty operations.-

Ill. Background Cresap indicated that the inclusion of an outside director (s) with nuclear experience / expertise to the Board might benefit the Company. In proposing this recommendation, Cresap concluded that adjustments could be accomplished- ,

gradually through attrition and the Board should be kept to a size that

. facilitates initiative and active involvement.

(See additional background

- comments on next page.)

1 IV. Implementation Steps i

> Completion No. Description Date f

As vacancies on the Board of Directors occur from time to time in the future, the Company will consider many fields of experience for eligible candidates.

including. nuclear utility construction and operations. '

] 7 In the meantime, the Company will co'ntinue its policy of involving outside experts from various fields, including nuclear utility construction.and operations, in the meetings of its full Board of Directors and at its Board committee meetings. This brings added knowledge and experience from "out-siders" in ene nuclear field to Board discussions and decisions.

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g III. Background (continued)

.l It is important to note that Cresap found that "the overall structure of

) ths Board.of Directors is sound," and that the " Company's outside directors J

are highly respected and prominent people." Further, Cresap found tIEa't"the

" committee structure of the Board of Directors is an effective way to al16w outside directors to participate in and influence the Company's management processes."

It should also be noted that other organizations in the United States licensed to construct and operate commercial nuclear power plants do not

appear to have as outside directors persons with experience in nuclear utility operations, with perhaps only one or two exceptions usually involving an individual employed by a contractor or architect-engineer.

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, CAROLINA POWER & LIGHT COMPANY MANAGEMENT AUDIT RECOMMENDATION ACTION PLAN -

V. Implementation Schedule & CP&L Mandays Required .

Est. Start Date 83f 01/01 Est. Compl. Date 83/ 06f01* Est. CP&L Mandays Yr Mo Da Yr Mo Oa

. VI. Estituated Costs Range ($000's) -w 0- 50 - 100 - 500 - Over N 50 100 500 1,000 1,000 Unknown l A. One-Time Costs X i

B. Annual Recurring Costs X l

Vll. Expected Benefits Range (S000's)

A. Quantifiable Benefits 0- 50 - 100 - 500 - Over 50 100 500 1,000 1,000 Unknown

1. One-Time Cost Savings X I

2. Annual Recurring Cost Savings X B. Nonquantifiable Benefits An individual with nuclear experience / expertise may bring additional insight to Board operations.

• Further consideration of this recommendation will occur at the time vacancies on the Board occur.

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Vill. Comments

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