ML20134B677

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Board Notification 95-017:notifies of Contention Challenging Application of Gpc for Amends to Authorize Southern Nuclear to Operate Plant
ML20134B677
Person / Time
Site: Vogtle  Southern Nuclear icon.png
Issue date: 11/13/1995
From: Varga S
NRC (Affiliation Not Assigned)
To:
Atomic Safety and Licensing Board Panel
References
CON-#496-17308 BN-95-016, BN-95-16, OLA-3, NUDOCS 9511140071
Download: ML20134B677 (6)


Text

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's UNITED STATES g

j NUCLEAR REGULATORY COMMINN, o,

WASHINGTON, D.C. 20061H1001 November 13,1!9$ yf,k Nb ation 95-17 0FFICE OF SECRETARY DOCKETl?iG & RRVICE BRAHCd MEMORANDUM T0:

Atomic Safety and Licensir)g Bo'a I

and All Parties

(

FROM:

Steven A. Varga, Director )

Division of Reactor Proje s - I/II Office of Nuclear Reactor Regulation

SUBJECT:

SUPPLEMENTAL INFORMATION POTENTIALLY RELEVANT AND MATERIAL TO BOARD PROCEEDING IN THE MATTER OF V0GTLE ELECTRIC GENERATING PLANT, UNITS 1 AND 2 In conformance with the Commission's policy on notification of the Licensing Board of new, relevant, and material information, this memorandum calls i

attention to the information discussed below.

The Board has pending before it a contenti-hallenging the application of Georgia Power Company (GPC) for licensing soaents that would authorize Southern Nuclear Operating Company, Inc. 4 Jthern Nuclear), a subsidiary of 4

The Southern Company, to operate the Vogtle Electric Generating Plant, Units 1 and 2.

One of the issues involves a challenge whether Southern Nuclear possesses the requisite character, competence and integrity, as well as the necessary candor, truthfulness and willingness to abide by regulatory requirements.

By previous Board Notification (BN) 95-16 dated September 25, 1995, the NRC i

Staff informed the Board and parties that a predecisional enforcement conference would be held October 4, 1995, at the NRC Region II Offices in Atlanta, Georgia, associated with the Decision and Remand Order by the Secretary of Labor regarding the discrimination suit (Department of Labor Case No. 90-ERA-30) of GPC former employee, Mr. Marvin Hobby. is the conference summary issued by Region II October 11,-1995, j

that includes copies of the conference transcript and GPC's presentation slides and handouts. Enclosure 2 is Mr. Hobby's " Response To Predecisional Enforcement Conference Presentation of Georgia Power Company and Request For Imposition of Enhanced Penalties" that was transmitted to the NRC's Office of Enforcement under cover letter from counsel, dated November 2,1995.

Contact:

Dar1 S. Hood, NRR 415-3049

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, November 13, 1995 t Jh This information is being brceght to the attention of the Licensing Board and All Parties, as it may be relevant and material to issues pending before the Licensing Board.

}9J Docket Nos. 50-424-OLA-3 and 50-425-OLA-3

Enclosures:

1.

Conference Summary, 10/11/95 2.

Hobby Response to Conference,11/2/95 cc w/encls:

l See next page j

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e 1

BOARD NOTIFICATION NO.17 GEORGIA POWER COMPANY, er al.

(Vogtle Electric Generatmg Plant, Units 1 and 2)

Docket Nos. 50-424-OLA-3,50-425-OLA-3 Peter B. Bloch, Chairman Michael D. Kohn, Esq.

Administrative Judge Stephen M. Kohn, Esq.

Atomic Safety and Licensing Board Kohn, Kohn and Calapinto, P.C.

Mail Stop: T-3 F23 517 Florida Avenue, NW

- U.S. NeIm Regulatory Commission Washington, DC 20001 Washmgton, DC 20555 Office of Commission Appellate Thomas D. Murphy Adjudication Administrative Judge Mail Stop: 0-16 G15 Atomic Safety and Licensing Board U.S. Nuclear Regulatory Commission Mail Stop: T-3 F23 Washington, DC 20555 U.S. Nuclear Regulatory Commission Washington,' DC 20555 Adjudicatory File (2)

Atomic Safety and Licensing Board j

l Dr. James H. Carpenter Panel l

Administrative Judge Mail Stop: T-3 F23 l

933 Green Point Drive U.S. Nuclear Regulatory Commission Oyster Point Washington, DC 20555 t

Sunset Beach, NC 28468 Atomic Safety and Licensing Board Dr. James H. Carpenter Panel Administrative Judge Mail Stop: T-3 F23 Atomic Safety and Licensing Board U.S. Nuclear Regulatory Commission Mail Stop: T-3 F23 Washington, DC 20555 U.S. Nuclear Regulatory Commission Washington, De 20555 Office of the Secretary (2)

Attn: Docketing and Service Branch James E. Joiner Mail Stop: 0-16 GIS John lamberski, Esq.

U.S. Nuclear Regulatory Commission Arthur H. Domby, Esq.

Washington, DC 20555 Trautman Sanders NationsBank Building, Suite 5200 Director, Environmental Protection 600 Peachtree Street, NE Division Atlanta, GA 30308 Department of Natural Resources 205 Butler St., S.E.

David R. Lewis, Esq.

Suite 1252 Ernest Blake, Esq.

Atlanta, GA 30334 Shaw, Pittman, Potts and Trowbridge 2300 N Street, NW Mr. Bruce H. Morris Washington, DC 20037 Finestone, Morris & Wildstein j

Suite 2540 Tower Place Mr. Steven A. Westby 3340 Peachtree Road, N.E.

Suite 900 Atlanta, GA' 30326 191 Peachtree Street, N.E.

Atlanta, GA 30303 l

1 i

t

m a

l Mr. C. K. McCoy Georgia Power Company Vogtle Electric Generating Plant l

cc:

Mr. J. A. Bailey Harold Reheis, Director Manager - Licensing Department of Natural Resources Georgia Power Company 205 Butler Street, SE. Suite 1252 P. O. Box 1295 Atlanta, Georgia 30334 Birmingham, Alabama 35201 Attorney General Mr. J. B. Beasley Law Department General Manager, Vogtle Electric 132 Judicial Building Generating Plant Atlanta, Georgia 30334 l

P. O. Box 1600 Waynesboro, Georgia 30830 Mr. Ernie Toupin i

Manager of Nuclear Operations Regional Administrator, Region II Oglethorpe Power Corporation U. S. Nuclear Regulatory Commission 2100 East Exchange Place 101 Marietta Street, NW., Suite 2900 Tucker, Georgia 30085-1349 Atlanta, Georgia 30323 i

Charles A. Patrizia, Esquire Office of Planning and Budget Paul, Hastings, Janofsky & Walker Room 615B 10th Floor 270 Washington Street, SW.

1299 Pennsylvania Avenue Atlanta, Georgia 30334 Washington, DC 20004-9500 Office of the County Commissioner Arthur H. Domby, Esquire Burke County Commission Troutman Sanders Waynesboro, Georgia 30830 NationsBank Plaza 600 Peachtree Street, NE.

Mr. J. D. Woodard Suite 5200 Senior Vice President Atlanta, Georgia 30308-2216 Georgia Power Company P. O. Box 1295 Resident Inspector Birmingham, Alabama 35201 U.S. Nuclear Regulatory Commission 8805 River Road Waynesboro, Georgia 30830 1

I i

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l

Board Notification 95-17 Dated November 13. 1995 w\\out enclosure unless noted below l,

cc:

J. Taylor, EDO J. Milhoan, DEDR H. Thompson, DEDS i

G. Tracy, EDO (Region II Plants)

W. Russell, NRR/F. Miraglia, NRR R. Zismerman, NRR A. Thadani, NRR l

D. Crutchfield, NRR T. Martin, RI S. Ebneter, RII J. Martin, RIII l

J. Callan, RIV K. Perkins, Field Office, RIV l

L. Chandler, OGC DGC (3) w/ enclosure K. Cater, SECY (3) 1 J. Cordes (A), OCAA ACRS w/ enclosure R. Ingram, NRR S..Varga, NRR J. Zwolinski, NRR l

D. Matthews, NRR i

D. Hood, NRR I

R. Hoefling, OGC M. Young, OGC w/ enclosure C. Barth, OGC w/ enclosure J. Rutberg, OGC J. Goldberg, 0GC L. Robinson, RII R. Crlenjak, RII P. Skinner, RII E. Merschoff, RII C. Evans, RII J. Lieberman, OE R. Pedersen, OE J. Gray, OE l

D. Murphy, 01 l

R. Rosano, OE f

2

+

~.

l November 13, 1995 l

This information is being brought to the attention of the Licensing Board and All Parties, as it may be relevant and material to issues pending before the Licensing Board.

Docket Nos. 50-424-OLA-3 and 50-425-OLA-3

Enclosures:

1.

Conference Summary, 10/11/95 2.

Hobby Response to Conference, 11/2/95 l

\\

CC W/encls:

See next page l

1 1

DISTRIBUTION Docket File w/ enclosure PUBLIC PDII-2 RF DOCUMENT NAME: 6:\\V0GTLE\\ HEARING \\ENFCONF2.BN OFFICE DPPE/PD22/PN DRPDist22/D DE/DQ OGC DRPE RIl [

g Name D. N0aD.300 N.$saW d!M J/7/u/o fMr) f BY E MAIL DAYE 11/ff9s Sir 6/9s 11/f$f9s stf(/95

% 99s 11/Tf9s COPY YES No YES NO YES NO YES NO YES No YES NO OFFICIAL RECORD COPY I

f.

sj s

October 11, 1995 f

l l

EA 95-171 Georgia Power Company I

ATTN: Mr. W. George Hairston, III i

Executive Vice President P. O. Box 1295 l

Birmingham, AL 35201

SUBJECT:

PREDECISIONAL ENFORCEMENT CONFERENCE

SUMMARY

- V0GTLE NUCLEAR PLANT l

DOCKET NOS. 50-424 AND 50-425 i

Dear Mr. Hairston:

l This letter refers to the Predecisional Enforcement Conference held at our request on October 4,1995, at the Region II office in Atlanta, Georgia. The issue discussed related to an apparent violation of 10 CFR 50.7, involving Employee Protection. A list of attendees, the meeting transcript, and a copy l

of your handout are enclosed.

l Your presentation provided additional information and clarification of the issues associated with the apparent violation. We are continuing our review of this apparent violation to determine the appropriate enforcement action.

i In accordance with 10 CFR 2.790 of the NRC's " Rules of Practice", a copy of this letter and its enclosures will be placed in the NRC Public Document Room.

l Should you have any questions concerning this letter, please contact us.

Sincerely, I

Richar V. Crlen' k, Chief React rojects Branch 3 Divisi n of Reactor Projects Docket Nos.: 50-424 and 50-425 License Nos.: NPF-68 and NPF-81

Enclosures:

1.

List of Attendees 2.

Transcript 3.

Handout cc w/encls:

Mr. C. K. McCoy-951 230343 951011 Vice President PDR ADOCK 05000424 %. f.

Vogtle Electric

\\

PDR Generating Plant P. O. Box 1295 i

Birmingham, AL 35201 J

(cc w/encls cont'd - See page 2)

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~

GPC 2

(cc w/encls cont'd)

J. D. Woodard Senior Vice. President Georgia Power Company P. O. Box IP.95 Birmingham, AL 35201 J. B. Beasley General Manager, Plant Vogtle Georgia Power Company P. O. Box 1600 Waynesboro, GA 30830 J. A. Bailey Manager-Licensing Georgia Power Company P. O. Box 1295 Birmingham, AL 35201 Nancy G. Cowles, Counsel Office of the Consumer's Utility Council 84 Peachtree Street, NW, Suite 201 Atlanta, GA 30303-2318 Office of Planning and Budget Room 615B 270 Washington Street, SW Atlanta, GA 30334 Office of the County Commissioner Burke County Commission Waynesboro, GA 30830 Harold Reheis, Director Department of Natural Resources 205 Butler Street, SE, Suite 1252 Atlanta, GA 30334 Thomas Hill, Manager Radioactive Materials Program Department of Natural Resources 4244 International Parkway Suite 114 Atlanta, GA 30354 Attorney General Law Department 132 Judicial Building Atlanta, GA 30334 (cc w/encls cont'd - See page 3)

a o

'Y.

t GPC 3

(cc w/encls cont'd)

Ernie Toupin Manager of Nuclear Operations Oglethorpe Power Corporation 2100 E. Exchange Place Tucker, GA 30085-1349 Charles A. Patrizia, Esq.

Paul, Hastings, Janofsky & Walker loth Floor 1299 Pennsylvania Avenue Washington, D. C.

20004-9500 Distribution w/encls:

R. V. Crlenjak, RII P. Skinner, RII D. Seymour, RII G. Hallstrom, RII J. Lieberman, NRR i

l D. Wheeler, NRR D. Hood, NRR PUBLIC t

NRC Senior Resident Inspector U.S. Nuclear Regulatory Commission 8805 River Road Waynesboro, GA 30830 l

l

  • SEE PREVIOUS CONCURRENCE._

SEND TO PUBLtc DOCUMENT ROOM?

YES NO i

OFFICE Ril:DRP Rit:DRP Ril:EICS Ril:EfCS

&lGNATURE NAME

'RWnght.y

'88oneer

'LWatson

' Suryc OATE to i les ior t es to t t es to t t es 1ot r et to t l es COPY 7 YES NO YES NO YES NO YES NO YES NO YES NO OFFICIAL RECORD COPY DOCUMEN1 NAME: p:vogtle. pre l

f

l

  • s s

e GPC 3

(cc w/encls cont'd)

Ernie Toupin Manager of Nuclear Operations Oglethorpe Power Corporation l

2100 E. Exchange Place I

Tucker, GA 30085-1349 Charles A. Patrizia, Esq.

Paul, Hastings, Janofsky & Walker 10th Floor 1299 Pennsylvania Avenue Washington, D. C.

20004-9500 Distribution w/encls:

R. V. Crlenjak, RII P. Skinner, RII l

D. Seymour, RII G. Hallstrom, RII D. Hood, NRR PUBLIC NRC Senior Resident Inspector.t<

U.S. Nuclear Regulatory Commission 8805 River Road Waynesboro, GA 30830 f

SEND TO PUBUC DOCUMENT ROOM 7

[ YES ) NO OFFICE Ril:DRP Rit:DRP Mil:EICS Ril:EICS SIGNATURE

[h' f

NAME RWnght:tj BBonner L stoon I d yc DATE 10 t il / 95 101///95 to Ik / 95 1D ID 195 10 / /95 10 / I95 COPY?

kES, NO

[YES) NO (YES) NO

[YES) NO YES NO YES NO 0FFICIAL RECORD COPY DOCUMENT.hAME:'p:vogtle. pre V

- 1 4

In The Matter Of:

INTHEMATTER OFMARVINB. HOBBY v.

GEORGIA POWER COMPAhY PREDECISIONAL ENFORCEMENT CONFERENCE October 4,1995 BROWNREPORTING, INC.

A11ANTA, AUGUSTA, CARROLLTON ROME 1100 SPRING STREET SUITE 750 ATLANTA, GA USA 30309 (404) 876-8979 or (800) 637-0293 Original File 2004bobb.asc, $2 Pages Min 414cnpt@ FileID:1456496487 Word Index included with this Min-U-Scripte DiC2DSURE 2 i

j

  • IN THE MATTER OF MARVIN B. HOBBY v.

l GiiOmara POWER COMPANY PREDEOSIONAL ENFORCEMENT CONFERENO j

October 4,199f I

i P*981 *

(t} SEFORE THE NUCLEAR REGULATORY COMMISSION Page 2 pl It]

APPEARANCES Nucteer Roguantory C Regon 11:

is) vs.

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p)

MR. L REYES pl GEORGIA POWER COMPANY

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j MS LJ. WATSON p3 1s]

MR. B. URYC is)

MR.JA GRAY M

,m MR. E.W. MERSCHOFF OPEN PREDECISIONAL ENFORCEMENT CONFERENCE i

l'9 MS. C. EVANS lp]

MR. P.H. SKINNER fit]

lia MR. LL WHEELER g

tu) NucasarRoguinsoryCommesen 2mpm Othce et GeneralCouneet

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MS. MITZ1 YOUNG (By Teampnone)

NRC Regen 41 Omos

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lisi 101 Mensaa Street itil Suse 2900

[ta Geo9ePowerCorm

![13; MR. W.G. HAIRSTON.111 l'7I AEea. Geoge 1141 MR. A.H. DOM 8Y

,it41 MR. F. WILLIAMS (2 01 Jorri P. Payne. CCR.B.1006. RPR i

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It181 ps) 1100 SPRING STREET. SUITE 750 111 8)

ATLANTA. GEORGIA 10309 90) usi

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pel pel cas]

Page a til MR.REYES: Good afternoon.I am Luis la Reyes.I'm the Deputy Regional Artmini=mtor for i pi the Nuclear Regulatory Commission's Region II i pl office.

t s)

This afternoon we will conduct a i

isi predecisional enforcement conference between the NRC p1 and Georgia Power Company which is open to the m public for observation.This conference will be m transcribed.I request members of the public to tim hold any questions they may have about the conduct titj of the conference until the conference is i

ria concluded.The NRC staff sill stay after the tis) meeting to answer any questions concerning the tui conduct of the conference, tte The agenda for the conference is shown in rig the viewgraph.We have a viewgraph in the room tirj showing our expectations of the meeting this Its} afternoon.

tig Following my brief opening remarks, og Mr.Bruno Uryc, Director of the Region II ps; Enforcement Staff,wi!! discuss the agency's 12 2 enforcement policy.1 mill then provide sea; mtroductory remarks concermng my perspective on

(

ps) the events to be addressed today, and then Mr.Blis I

sze Menchoff to myleft. Director of the Division of BROWN REPORTING, INC. (404) 876-8979 Min-U-Scripte G) Page 1 - Page 5

PRE.DEC1BCNAI. ENFORrFMFNT CONFERENCE IN THE MATTER OF MARVIN B. HOBBY v.

. October 61995 GEORGIA N COMN Page 4 p) Reactor Projects, will then discuss the apparent Page 6 m violation.

p) enforcement process for those who might not be m f=lar with this process.

pi You will then be grven an oppenuuny to p1 The NRC Enforcement Program is governed 83 respond to the apparent violation.In this regard, m I wish to resterate to the licensee and a-45 of pl by the Commission's enforcement policy which was m the public that the decision to hold this conference is) recently revised and became effective onJune 30th, m does not mean that the NRC has determined that a m 1995.It has been published as NUREG 1600,and for m violation has occurred or that enforcement acuon m those of you who desire,1 have left some copies on m will be taken.This conference is,however,an m the table behind me that you're welcome to take.

m For cases where there is a potential for to important step in arrmng at that decision.

ny Following Georgia Power Company's pq escalated enforcement acnon,that is,where the na presentation,1 rian to take about a ten-mmute on seventy level of the apparent violation may be at ps; break so that the NRC can briefly review what it has na SeventyIcvell.H orIH,a predecisional pq heard and determine if we have any follow-up ps) enforcement conference is normally held.

pq in this particular case,the decision to ps) questions,and lastly,I will provide concluding psi remarks.

psi hold a predecisional enforcement conference is based nF1. At this point,I would like to have the pet on the Secretary of Labor's decision which was

,pn issued on August 4th,1995,in the matter of wel NRC staff introduce themselves and then ask Georgia

,o: Po'wer Company to introduce its parucipants.

ina) Marvm B. Hobby versus the Georgia Power Company.

rm Linda?

ice in that decision.the Secretary oflabor concluded try MS. WATSON: Tm l.inda Watson.fm with ipq that disenmmanon occurred under the Energy

za the enforcement staff.

'pq Reorgantzation Act.The apparent violanon denves

rsi MR. GRAY
Joe Gray, Deputy Director, ma from this decision. Copies of the Secretary of pq Office of Enforcement.

as) labor's decision that we're going to discuss today ps)

MR. URYC: Bruno Uryc, Director of the pq are also available on the table should you desire psi one.

Page5 p1 Region H Enforcement Staff.

Page 7 In A predecisional enforcement conference is m

MR. REYES: Um 1.uis Reyes.Tm the g essentnity the last step of the enforcement process p) Deputy Regional Ada.:.:m-tor.

si MR. MERSCHOFF: E!!is Merschoff. Director p) before the staff makes an enforcement decision, Isi of Reactor Projects.

vi Under the Commissioris enforcement policy,these m conferences are normally closed mecungs between the m

MS. EVANS: Carolyn Evans, Regional

! is) NRC staff and the licensee.However,this m Counsel.

a MR. SKINNER: Perry Skinner,Secuon

. m conference,although initially designated as a m closed conference,has been opened to public m Chief of the Georgia Power Company here in Region

' m observation based on a formal request by an o H.

pq interested member of the public.The trial program in MR. WHEELER: Duke Wheeler,Vogtle I

ia Ucensing Project Manager.

su to conduct selected conferences as open conferences is)

MR. BAILEY: Jim Bailey, Manager of pa was initated by the Commission in July of 1992, and q Ucensmg.

Inni this program has been extended pending further pq evaluation.

is)

MR. WILLIAMS: Tm Fred Wilhams, Senior ps)

The purpose of a predecisional is) Vice President of Georgia Power Company.

n MR. HAIRSTON: Tm George Hairston, ps) enforcement conference is not to negotiate a on sanction.Our purpose here today is to obtain si Executrve Vice President of Georgia Power Company.

{pel informanon that will assist us in determmmg the t

MR. DOMBY:I am Art Domby.fm with the lpet appropnate enforcement action such as a common l

q law firm ofTroutman Sanders representmg Georgia lpa understandmg of the facts, root causes,and missed y Power Company.

f gry opportumties associated with the apparent MR. REYES: Thank you. Mr. Uryc will now t

3; discuss the agency's enforcement policy.

pa violation; secondly,a common understanding of the q MR.URYC:Thank you Mr.Reyes.1will ps) correcuve acnon taken or planned:and a common ing understandmg of the significance of the issues and si patmde some background mformation on the l psi the need for lasung comprehensive correcove

' age 4. Page 7 (4)

Min-U-Scripte BROWN REPORTING, INC. (404) 876 8979

BE TIE BEATIER OF MAEVDf B. HOBBY v.

nannsnaa POWER COREPANY PREDEOSEONAL EMPrMN3'MT ColWEREN riceah*e 4,19 Pagea pi acnon.

Page m

At the predecmonal < 1 pi Counsel.

MR.REYES: h = " ; with the agenda m

pr conference mage of the process, we want to be sure pi that the bcensee understands the againcance of m this ahernoon,let me===ize the issues as I see pl the issues and is taking effective corrective p) them,and then I will turn it over to Ellis

. y) Merschoff m action.We are seeking informaten that may be The Secretary oflabor concluded in the p3

^ m relevant to enher maganon or escalaten of any m resuking amareen as well as determmmg the m Marvin Hobby case that in 1990, Georgia Power m heensee's posmon relative to the decision issued m Company senior managers engaged in 6 --=

r og by the Secretary oflabor in this case.A copy of

. m actions by teranneemy Mr. Hobby for ramag nuclear pu that decision was enclosed with ourletterof pq safety concerns.The NRC places a high value on the

'!py freedom of nuclearindustry employees to raise ng Scia Lss the 1st wtuch made ininalarrangements i

pq forthis ca :. cs.

pg pn asafety concerns to licensee managemear

{

The apparent violanon discussed at this

'pq Secsion 211 of the Energy Reorgarwarma Act and og pq conference is subpect to further review by the NRC.

ing 10 CPR $0.7 carahhah strict requirements for the og it is subject to change prior to any resukag

'pq joy akn of employees agamst discrmanation for pn enforcement action.It is L pw..-. to note as pg ramng nuclear safety concerns and the NRC og Mr.Reyes has said.that the decision to conduct

'on enforcement policy cans for strong enforcement pg this conference does not mean that the NRC has og sancuons in cases where these requirements are lag determmed that a velation has occurred or that og violated.Our purpose today is to provide you an 3

an enforcement action will be taken.I should also sq opportumty to discuss the basis for your decisions am note that statements of views or expressens of

.pq in this case.

'an In addason,the NRC is concerned about an opmion made by NRC employees at this conference.or nel the lack thereof,are not atended o represent

{as the potenn=1 of a chdhas effect that may have l

t as final agency deteran-ma or behefs jag resulted from Mr. Hobby's termdnanon.'Ihe beond last span of control and influence czercised by the Page e '

p)

Now,followmg this co '

= the page11 m regmaal '

-w.in coonhannon with the NRC

, pl senior Georgsa Power Company rannarens who were and other headquarters

, is involved in this matter could have a negatrve impact m Of5cc of" '~-- c pl afsces willreach an enforcement decmon and

! m on your employees'ja w,--,i= regardag their m this psocess normany takes about four weeks to i pl freedom to raise safety concerns.Therefore,we t

m accomphsh.1f the final enforcement acten pi czpect you to address the actions taken orplanned m involves a proposed civil pensay or an order.the pi to assure that this adverse employment action does m NRC will issue a press release 24 hours2.777778e-4 days <br />0.00667 hours <br />3.968254e-5 weeks <br />9.132e-6 months <br /> aAer that m not have a chdhng effect on other licensee or m enforcernentactionisissued.

! m coarmemt: f,,. raismg realorperceived pq Finally,1f you have any comments

! m nuclearsafetyconcerns l

Georgia Power Company's steps to insure og og regardag the t'ama=amma's trial program to allow na pubhc observanon of the NRC's psedecisional pn that senior managers of GPC are aware of their pq enforcement conferences,I have provided some na respon=hames to provule a work environment in pq comment sheets on the table behead me.These ne which all employees may freely identify safety pq comments will be forwarded to the Director of the pq concerns without fear of retahatson or pg Of5cc of LJ-a at for review and consulerstma.

pq discnmmaten are a key element in establishing an pa and for any pubhc participants, we ask that you pq effccuve employee concerns program.Whether or not pq sign the attendance sheet that's on the table so on you agree that a violation occurred,you should pg that we can judge the public interest in continuing ps) address the actions you have taken to insure pg this open conference policy.

psj managers are aware of these responsibilities.In an MR.REYES:Before we proceed with the pq addalon,you should address the scuons you have as agenda, did somebody just come in on the phone?

en taken with respect to the Secretary oflabor's as MitziYoung'We have a person particapstag on the ps: decision and the order to offer Mr. Hobby og phone, as remerarement.

I would like to proceed with the agenda as MR. GRAY: From the NRC Of5cc of Gene =8 ps;

_ pg and have Ellis Merschoff, Director of the C;.--+-

BROWN REPORTING,INC. (404)8768979 Egle-U4cripte G) Page 8 - Pase 11 l

e

__.m_.

-1

s FREIMSIONAI,ENyrimesrassryI CONFERENCE l

Oceober 4,1995,

-IN THE MATTER OF MARVINB. HOBBY v.

i GEORGIA POWER COMPANY Pops ta in of Reactor Pmiects, discuss the apparent speciSc

)

Pops 14 i

. p violanons that we are to consider today.

in severwy of the violation;any emen or MR. MERSCHOFF: On August 4th,1995, the 31 mmesnon considerations; your plans to isnplanen p) pi Secretary oflaborissued a decision and remsad pi correcove scuon:and any other apphnaan of the is orderin the Deparunent ofImbor Case 90 Elta-50.

p; erJauent policy relevant.

j m The Secretary oflabor found that in 1990, sener With that, Mr. Reyes,I will turn it over pi m managers of Georgia Power Company chscr===ameed p; to you.

pi against Mr. Marvin B. Hobby, former general manager 151. REYES: We will turn over the meenns m

m of'GPC's Nuclear Opersoons ContractC p) to Georgia Power and let you come forward with your j

pq when Mr. Hobby's posson was einawanted and he was; y presentation.

py forced to resagn from GPC.In addition, the ing MR.HAIRSTON:Thank you, Mr.Reyes.

pm Secretary rflabor also found that other acts of on We're ready to start our presentation.

ps) discrinunation occurred, such as denant of executive I am George Haarston,Execuuve Vice om lui pedung privileges and haut:ng access privileges jpsj n.

t..i of Georgia Power Comparty,andIam here n

The Secretary oflaborspecincany fpq today to respond to the questions raised in the os psi determined that Georgia Power Cornpany's decision to ins NRC's letter of September the 1st,1995.We ask pn termmate Mr. Hobby was based solely on retaliatory inst that you defer any enforcement action pendene the

{

om animus for his having raised safety concerns related

pn completion of Georgia Power's appeal of the
ss) to the operauon of the Vogtle Nuclear Plant, pm Secretary oflabor's decision.

am prmcipally those described in an April 27th,1989, Georgia Power had a legatsmate,

,ps) 29 memorandum that Mr. Hobby provided to Mr. Fred iam nondisennunatory reason for ele ='-~'a:; Mr. Hobby 2ri Wilhams, Georgia Power Company's Vice President ofjan posmon in 1990.h has been five years since the lpm events in question,and Georgia Power's

93) Bulk Power This is an apparent violation of Insi demonstranve history of not retahaung for ramas 34 asi 10 CFR 50.7, Employee Protection, which prohibits Ipq safety concerns should be considered.Moreover,as '

as even the NRC staff has recogrJaed in the Vogde 01 disenmmation against an employee engaging in Page13 {

' Peps 15 nj protected acuvines such as provuhng an employer

p license amendment proceedings,Mr.Hobbyand his pi information about alleged violations of NRC

. p3 group had no relanon or effect upon the safe pl requirernents.This apparent violation is being

' pi opersoon of Georgis nuclearpowerplants.Thus, m considered for escalsung enforcement.

81 there has not been and there wiu not be any What you see up there is essenually the p1 chining effect as a result of Mr. Hobby's case.

s1 m concern and the violation as we understand it.it 1.et me talk a aunnte about the order of i pr at says that the decision and rernand order was issued m my presentation,just so you know what I'm going to m detrm=ning that Georgia Power had disenmmated

, pl be doing.

ta against Mr.Marvin B. Hobby as a result of ransmg I will begin ourpresentmen by i p)
in safety concerns and the $ccretary oflabor's findag

$ne providing you wah an overview of the facts

,a that Mr. Hobby was disenmmated against as a result nn surrounding the cha=nenan of Mr. Hobby's in of these protected acuvuies as an apparent

.nri posmon.You will then hear from Mr.Wilhams,who u) violation.

ins) wn! respond directly to your questions about the in terms of what we hope to accomplish Inq basis for the adverse employment action taken isi sei today,the purpose of this conference is to afford

, psi against Mr. Hobby.He was the pnncipal decision m you an opportunity to provide a cornmon understanding;ne maker.and he will tell you precisely why si of the facts,the root causes,and the significance

pn Mr. Hobby's posmon was ehmmated.After that,I i si will address the basis for ourappeal.1 will then 5 of these issues
to provide the basis forthe p

y adverse employment action taken agamst Mr. Hobby;insi conclude our remarks by addressmg the issues of y whether or not a chilhng effect resuhed from

pe whether any chilling effect has occurred as the a Mr. Hobby's termmanon and the recent Secretary ofnu resuhs of this decision or the underlymg acts of si labor decmon: the potential negative impact on the inn ehmmating this job posmon.

jus)

Bnefly,let me just go through the y reporung of safety concerns due to the senior GPC a managers who were mvolved in this maner the spg chronology,and you do have these overheads in your 251 possession.

age 12 - Page 15 (6)

Etiss-U.Scripte BROWN REPORMNG,INC. (404) 876-8979

- -. - -. - -. - - -. - - -.. ~.

IN' Teas MATIER OF MhEVIN B.1503RY r.

r.aner:fA POWER CObEPANY PREDEOSIONAL ENPOmmasWT CONFERENCE Oesober 4,1995 Page16 h The chronology wluchI'd like to go Page is pj m through hits the rasjor events covered by the pj illegally cliannated his position as the resuks of mi D4 iofImborrecord.These events occurred si concerns that he raised in an April the 27th,1989, pi memorandum to Fred Wilhams p; over Ave years ago,and a brief review is helpful.

1 would like us to review that memo or m

in transferring the Georgsa Power nucle"'

m employees to Birnungham in 1988. Mr. Hobby turned pl parts of that memo today because it's important to -

m down an opportunity to be conandeved for a m actually see the statements made in the letter to m posanon. In late 1988,Mr. Grady Baker of Georgia m understand its tone and content.

si On page 7 is the concern which is the m Power Company,outside the nuclear chain of commend om for the previous six nonths, performed an annual pi basis of Mr. Hobby's acnon against Georgia Power pq evaluation of Mr. Hobby. A copy is included in the og Company.1 have an overlay of that, sad if you I

l pri handout supplied to you.

on would 1 would ask you to read the ps; Mr. Baker noted that Mr. Hobby's pra next<o the bottom paragraph.the one that starts

[

pq strengths were in the nucleararea.Marvin's pq wah "a signeenrat concern."

og in May and June of 1989, Bill Dahlberg, pq knowledge of the - and this is in quotes.

eq "Marvin's knowledge of the nataonal nucicar psi the then president and CEO of Georgia Power Company, l

pn industry is unsurpassed."The evaluation also noted om was recor.c c the need for Mr. Hobby's NOCA pai Mr. Hobby had developmernal needs to broaden his

!pa group.He met wah Joe Farley and Grady Baker to 1

ps) knowledge in Georgia Power's general operations.Of lpai discuss the ongomg negoustions with Oglethorpe I

I pm course,by this time.the corporate nuclear pm Power.At this meeting, concern was expressed that ten orgennetaan was in Be f =

'an NOCA was unnecessary.A request was made at that On December the 27th,1988,only a few sq time for the SONOPCO project to employ Mr. Hobby um pst weeks after nuclear operations began to report to as Mr.Dahlberg concurred with a freeze on the NOCA pq him.Mr. Bill Dahlberg approved the formanon of a en group hiring any further W.y.

.The need for se NOCA was uncertain.

{

pe Nuclear Operanons Contact Adannierration group.A I

pe FredWmiarns was in charge of contracts Page 17 in copy of Mr.Dahlberg's memo of that date is included Page to m in your package.Mamn Hobby became the general pl between the coowners. including Oglethorpe and ra manager of this NOCA group, as it was called. He si Georgia Power at this time.He learned durms 1989 m recerved a two.levelincrease in poonson.He had si that Mr. Hobby's group would begin reporung to him I

m three employees two servmg as Anancialanalysts pi effecove January the 1st,1990.He began a review m and one secretary.reporang to him when the group al process to determee how Mr. Hobby's group would fit m was first started.

pi inno his emanne organuation,What did NOCA do?

m Oglethorpe Power Corporation,as most of m What was the level of actmry?These are some of -

to) you know. is a coowner of a major portion of Plant m the quespons he began to ask Mr. Hobby and his

wistaff, pai Vogtle and Plant Hatch.In addition,Oglethorpe 99 owns a poruon of sorne of the co6 red plants on the Independent of these activities, Georgia poi pai Georgia system.During late 1988 and into 1989, pq Power'smanagementcouncilmembersmetonNovember pst Georgia Powerand Oglethorpe were discussmg na the 7th,1989,to evaluate the performance and sq negousting the relationship which the planned og future s=- -m potential of many high-level psj Southern Nuclear Operaung Company would have with pq =ianagers and of6cers, including Mr. Hobby. Fred psi the coowners pq Wilhams was not in arrendance nor was Mr. Pat on On April the 26th,1989, Mr. Hobby pq Mcdonald.Mr.Grady Baker,who had last reviewed psi forwarded a request of Oglethorpe to Fred Wilhams on Mr. Hobby m late 1988,was present.So was og Mr.Dahlberg.

i psi to explain the reporting structure of Georgia Power on In terms of performance,three of the pai Company and how Mr. Joe Farley,an officer of 99 Southern Company in BirW=. fit into the pq reviewers gave Mr. Hobby the lowest possible l

pri picture.Mr.Wilhams provided that explanation on an ratmg. Four rated him about average, and one on May the 15th,1989. Copies of the request and the se person rated him below average.In terms of future og response of Mr.Wilhams are included in your sa potential for advancement,everyone rated him as me package.Mr. Hobby claims that Georgsa Power sq having no further potential.

psi Fred Wilhams,after reviewmg BROWN REPORTING, INC. (404) 876-8979 Etin-U Scripes (7) Page 16.Paec 19

WN ElWrlaarFasFITI' CONFERENCE i

% 4 399, IN TIEE MA2TER OF MARVIN B. HOBBY v.

GEORGA POWER COMPANY Pogs ao rn Mr. Hobby's orymair=aan, recommended to his boss, Page 22 m Mr.Danght Evans,that the posmon of Mr. Hobby be 19 tasks.There was no operatens contract between pi chananted because it was unnecessary Mr. Evans m Southern Nuclear and Georgia Power to adana=*r.1

>> agreed,and on December the 29th,1989,the proposed m viewed my coowner respon=*=haea as including any Isi ch====aan of the possuon was presented to the pi such contract.In fact, lam the Chairof the isj====t*=""' council.No one dungreed with is) nudear mansamg board of the coowners today.The m Mr.Wilhams'recommendanon m operatens conuset between Georgia Powcrand ci

! would like to have Mr.withams explain m Southern Nuclearisc't in place even yet,and that m to you the reasons forhis rernavnead=aan. Fred?

si would have been the conizact that the NOCA group na MR.WILLIAMg: Thank you, George, m would have been +'

4 when it was set up.

om In the fall of 1989,I nnade any views of 99 I think I'll read this statement,and pa maybe we can answer quesuons later.That will make pq Marvm's group known to Marvin himself and to my

(

om sure Tve covered everythmg prj boss, Dwight Evans.In addition,I could not see in From 1984 through the present,I have lpa any reason in particular at the time we were j

ps) been the Georgas Power Company officer responsible in.j downsazing the company for a general manager psi for at.a s.. tion of contracts between Georgia

{ps) position to oversee the group's responsibilities.

pn Power Company and other joint owners of Plants ins In==kmp my decisen to absorb the group i

sej Vogtle and Hatch.These contracts also include jpn into my area and to recommend the ehmmanon of

{

psi Cofired Plant Scherer and Cofited Plant Wansley and ins) Marvm's general maamrer's position,his performance w a jointly owned transmission system here in the ine was not a factorin that dehberation.In fact,I ry state of Georgia,so the relationship between 'the pq discussed with Marvin whether he would consider 2rj coowners in 1989 was much broader than just whether 39 other job prospects wahm two levels of his current is the coowners would agree to the formauon of the am posanon of the 20 and the possibalsty of 39 Southern Nuclear Company and the transfer of insi tra 4. g to Georges Power's macleargroupin rs) operating license authority to Southern Nuclear eq Barf =arham if he wanted to stay in the nuclear i

tesi area.Marem's background was in nuclear,and his i

i Page 21 i l

pl These were many commercsal issues at the time.such Page 23 m as the agreement between Georgia Powerand pi best opportunsnes would be there.1 should p1 Oglethorpe Power which governed Georgsa's sale of m meaaan,too,that at the ame,when an employee p; partaal requsrements for electncery to C,

~.ra.

i p) took a lower level posmon, his or her salary was el and the Mumcapal Group.

p) not automanczuy cut.lt would be red circled and Because of my responsitzhues in these
m mamtamed.He wouki just move into a dafferent pay

's)

1) areas and Mr. Hobby's ensignments in 1989,I had
Is) scale at that time, but his current salary wouk! be

. m Fiamtamed si contact with Marvm throughout that year,induding im m negoustions on a draft nuclear managmg board Marvm was not interested in other j

m agreement between the coowners i m possoons wahm the company outside of riudear or y

Marvm began reporting to me effective inn in the Southern Nudear project in L d=1 so at rj january 1,1990.Even before that date,I began to inn that time,we began discussing voluntary

(

a review the need for Marym's contract admnanarratinn

.pt outplacement packages.'Ihese packages were not y group.In my review,I met with Marvm and his psi uncommon for impacted - and that's the word we gave a staff to deterame what tasks they were performmg pai to ca.A,g whose jobs were eliminated at that q The group conasted at that tune of Marvin and two ps; time - we had a consuletable amount of these -

?

  • much lower level positions filled by employees with est impacted managers and officers.Although I had a an acconnung or financial type background and a pn never dealt with negotiating one,Marvm was very 1 secretary pej receptrve to this idea,and we began to talk After talking with Marvin's group for

!nsi financial figures.When I gave him specific i

'pm approved figures,he was dissatisfied and called the i hours and reviewmg the tasks which they were i

perfornung and a November 1989 memo which set out hrq former president of Georgia Power, Mr. Jim Miller.

t their actrvaties that I had requested be prepared.I ipe At that ume,I believe Mr. Miller was still on the

ps) board of directors of Georgia Power Company, i conduded that there was not a legatunate need for a ipo separate group within Georgia Power to per*wm these it was at that point that Mr. Tom Boren, (psi our SeniorVP of Human Resources,got involved wnh j

ige 20 Page 23 (8)

Bilm-U4cripes BROWN REPORITNG,INC (404) 876-8979 i

' IN THE REATTER OF DEARVIN B. HOBBY v.

I c.mnar:IA POWER COAEPANY PREDEQSIONAL N N

'**"h*"4'III t

i Page 24 '

pl negonanns terms. Tom had been involved in samdar Peps at pl outplacement agreements Marvm said he believed p) Georgia Power.Was that the sole purpose of h?

4 m RAFLWILLIAMg: That's correct.

p: that Pat Mcdonald andJoe Farley wanted to get him

- p3 BAR. BAERSCHOFF: And you say that contract W out of the company,and I understood that k was re Mcdonald's view that NOCA nuclear experuse in m isn't in place yet.At what point was NOCA l

pi dissolved as an onpaniranase m Atlanta dedicated solely to overseeing onel*"'

,m RAR.WILLIAb88: NOCA was dissolved when !

p expertise in Barrangh== was not needed.What I said i pi ehmmated he job in the beguinang of 1990.1 t

~m thetc was that a group in Atlanta overseeing nuclear m expertise in Birmingham at the Southern Nuclear i in absorbed the other possons wahin the e=enF l

pq project was not needed,that that would be the role

' m bulk power contracts adem>=rmnan area that was

.pe already at that point in time adnunnarering and on ofline management at the Southern Nuclear project-

!py managmg allthe joint owner contracts our pri It was a view that was shared by me and others, ps including Mr. Evans,my boss.

'on operaung agreemenra already at that time.

l

!pg hAR. tIERSCHOFF: When I read the decesson, sur Marvm was told that if an o=-

c i

! wi I thought there was a manager put in place in that pq package could not be negotistd his posmon would

!pe posationafterMr. Hobby pas be chmmared and be would be an employee impacted RAR.WILLIARAS: No.let me straaghten pai on by the company's downessang.What that means is.I i

ps; tried to negouste sornething wah him because I told

'en that out,too.What I did was essennally put the I

poi him that his posanon was going to be elimmated and,

se funcuon underneath an enanne manager,a snanager um ifit was clinunated, he would be then under the og level 17,three levels below,who was a*

i pq normal procedure for h=aacted c gw and whatever as at that point in tune some 40 conusets between us og severance package that wcat wah that.

nu and the joint owners.A level 17 rnanager took asi He said in his De,aunent oflaborcase

',pg over.In fact,h was just moved in his area,which las is where I deternamed it should have been in the m that onJanuary 10th,1990,I told him that he would lpq first place.

{

psi get no support in the company from senior managemen'

pe RNL lAERSCHOFF
Was it then subsequently Page25 !

pl because of the April 27th memo.This is simply not i v3 desolved?

Paps 27 pj true.His merno was not a factorin elmnantmg the lm RAR.WLLIARAS: NOCA was dissolved.

m posanon.In fact,until k was raised with the

'N-INL BAERSCHOFF:Is these a NOCA funeginn m Department oflabor,I had forgotten ebout the Apri!

m 27th memo at that time.

! m underthis monarertoday?

' pj RAR.WILLIARIS: No.nc staff under this m

Ist me just summariac to you what I told pl the Department ofImbor fudge during the hearms-p3 manager today -ny was understaffed, anyway,

. p) becanne of all the enan=ere we had and that we were m The memorandum and the issues in it had nothing to

' m ='

i==. between us and the joint owners.As I m do wah the decision to chrma=re Marvin's og posanon.Martm's posinon of $100,000 pluse. year pl said k was not just the Vogtle plant. Hatch.-

'pg Wansley,Scherer.We have a pump storage pq general manager was just not justi6ed by this job,

!pu hru

";7 that is being managed in that same pg and I believe that everyone involved, including og Dwight Evans,Marvin,and those reporang to hisa Da smup.We have an integated tranarnissaan system pq understood that,and the posanon emannt be pq agreement.We have three new power supply psi jusufled today.

pq agreements,and au cithose have raninple conuncts ps!

Thank you, pq in them.nat was a.L.,,

c.i that emsted before pq RAR. RAERSCHOFF: Do you need access to a pq NOCA was ever formed.We were already bdling the psi phone?

Un co owners, doing the budgeting with the co owners on pg RAR. REYES:let's go off the record for a pai the Vogtle Nuclear Plant well before NOCA was even pq minute.

pq thought about.I was aheady negotiating a new pq (Discussson ensued off the record.)

poi arrangement between us,the nuclear managing board pri RAR.REYES: We're back on.

pu concept and all.

as The only responabdhy NOCA could l

pm RAR. blERSCHOFF: I have two queenna on as that.One, you said the purpose of NOCA was to in possibly have would then be to adn===ree the psi oversee a contract between Southern Nuclearand es] contract between Southern Nuclear when it became usi Southern Nuclearin= read of a psolect and us at BROWN REPORTING, INC. (404) 876.giry79 BElm-U 2 4 Z (9) Paec 24 - Pase ??

l

PREDECISIONAL ENPORCEMENT CONFERENCE l

October 4,1995 IN THE MATTER OF MARVIN B. BOBBY v.

GEORGIA POWER COMPANY l

Page28 ni Georgia Power Company,and that would have had to Peps 30 si have been my department then, so it didn't raske in department that was already there,In fact, we si didn't have to We could have taken on the function ni sense to put all this money and department in place pj just between us and Southern Nuclear when it could p) without them, but since those people were in the n be donc directly with the exasung managerand his 81 position,it was good.Since I was already n staff that were there.We did absorb those two is) ur.derstaffed in that area,anyway,they picked up m positions,and theyre still there,and we're si actually other duties, not just this project.

jm MR. HAIRSTON: Thank you, Fred. I've got n managing those contracts.In fact,one of the m positions has now been chmmated,and that has been j.m about ten more minutes,and then I may answer some na transferred to the county.

m of your questions that remain in part of my nm presentation.

nn I do want to clanfy one thing about the nn Georgia Power and Mr. Hobby litigated na officer chain in Southem Nuclear. Pat McDoruld at na the time, George Hairston, Ken McCoy,andTom na this matter in late 1990 before one of the og Beckham were all employees of Georgia Power still Juni Department of Labor administrative law judges. Judge ps) dunng this whole ume.They were not removed from inq Wilhams.Mr. Hobby tesuSed,as did Mr. Baker, na the Georgia Power payroII. In fact, all the inst Mr. Dahlberg, Mr.Wilhams, Mr. Evans, Mr. Tom s

on employees working on Georgta projects in the ins; Boren, and others. Mr.Boren was an officer who nel Southern Nuclear operstmg project at that ume were inn attended the November 7th performance review meetmg '

i nei still Georgia Power employees, so.you know,they

ns; as well as the December 29th,1989, management pm were still performmg their funcuons.The only ins) council meeung where the recommendat on to 29 thing different,instead of moving from the

'am chmmate Mr. Hobby's position was made.A total of rai thirteenth floor to the fourteenth floor, they had un about 15 witnesses testined over several full pa days.

mai moved from Georgia Power's building to Birmingham.

psi Why was Mr. Hobby's position elinunated?

pq Nothing else had changed at that point in time.

ps) There was no Southern Nuclear Company,if you lpe The AIJ, which is on the left, said,I find the psi decision to elimm=tc the position of manager of Page29 pi would.It was still Georgia Power employees Page31 p1 functiotung the same way they had.They were just in NOCA was in no way related to the concern raised in ist overthe project.

p) the April 27th,1989, memorandum.And you can read pi on.

p)

We did put officers that had dual p}

Almost four years later-that's ts) hattmg, which was this whole issue aDout reporung, l

tsi m my opinion.That's the only concern that

, ts) right - almost four years later.the Secretary of m Ogletherpe ever raised with me, whether y'all would

, ni Labor rejected the recommendation,the recommended

! m decision of his own ad=+aie=tive law judge.His ri eccept dual hamng, which I believe you would, l m order, decision in this area is on the right of that m because you've had that presented to you before in fmoverhead.

pq other areas.and it was under my understanding that ing In doing so, the Secretary basically said ny that was not a problem.Here was Georgia Power na employees doing Georgia Power work,and here was a ny that Mr. Hobby's testimony was to be beheved and

ss; new group called NOCA that us bemg set up to

. pa that the resumony of the Georgia Power witnesses aq tdmuuster a contract that didn't exist yet,trymg insi should be discredned.This is the exact opposne yst to force themselves into something that was already inq of whatJudge Williams had recommended.Tane after 161 functioning.

ps) ume,the Secretary,who was reviewing a cold

in I think if you look at some of the things ps) transenpt without actually seeing and heanng inn wunesses, rejected the credibihty determinauon of isi even raised by Mr. Hobby,we tned to include them.

Insi Judge Wittimms l

iw We tned to make sure,when it did happen,we would jps:

Georgia Power contends that under the l

m have them ifit made sense:but durmg that year of 29 my review it just didn't make sense that this spa circumstances presented here,this is improper,and m separate project needed to be there with a hundred imy we will appeal this decision of the Secretary.

!aa As an aside,it must first be remanded to a thousand do!!ar a year boss and with two accountants 24 and a secretary when for one or two of those peopic bn an adminientzve law judge to determme the amount

!pg of compensanon of Mr. Hobby.

rsi we could have just added them to the existing lps) let me just briefly go through some My 28 - Page 31 (10)

Miss-U-Scripts BROWN REPORTING, INC. (404) 876-8979

-. - - ~ _ _ - -.- - -.-.. _ ~.

DE'gME MAITER OF MAIVIN B. HOBBY v.

PREDECLMONAL ENPORCEMENT CONFERENC nammt:aa POWER CODEPANY October 6,199 f

Page a2 1 Pags >

pj issues that we would offer for your consideranon.

I tu in a nunsgement council meetmg on Nc, c h the 7th, m The first,I have an overhead that states the m 1990,yet please take a mmute to review the p; grounds or some of the grounds we would have for a rg evidence which the Secretary cues in support of p1 Georpa Power appeal.

. p) this conchision.

m As I understand it,there are several isi Luis,let me correct a date.That's

]

is pic/.-A with the Secretary's order on which appeal l pi m..

,cs the 7th,1999.

)

m would be taken.I would like to go over very I m As you can see,there is absolutely no is briefly some of the grounds for an appeal which we si basis for the Secretary's conclusion. In fact, the m will pursue.First.I'd like to show you some case pq law rebting to the standard which a reviewing si evidence contradicts his findags.Other compelling

)

pq examples about how the Secretary ignored the pq court.a.i.

court willapply.

pq cni.cc will be presented in our appeat pq i think it would be worthwhile for you to pq Lastly,let me look at the issue oflack pq review the overhead entated 'The Standard of Review l

pg for the Secretary oflabor Order"These are two pg of cooperation with NOCA.nc Secretary concluded og that Mr. Hobby's concern about the lack of psi different cases between the two paragraphs.We pq corporation with NOCA was a safety concern.Fe.

poi think we meet this standard.,

pq believe this is wrong as a matter oflaw.As you

, pn We'll be going to the second bullet where

,pn can see from the language quoted here, the NRC staff pai the Secretary oflaboris y.vyc4 made credibility losi itself has concluded that Mr. Hobby and NOCA have no pq deternunanans.We will show you a few points about

ps) relationship,had no relation to the safe operanon l

94 that.There are a senes of overheads on this.

lpg of the Vogtle facshties eq These are evamples to demonstrate the en let me talk about the root cause and,

og difference in credibihty that the law judge, Judge pg. ~- =- e of the apparent violation,one of the

^

og Williams,and the Secretary oflabor had on og issues you raised We do not believe that there was M credsbihty; and I think they speak for themselves.

pel Luis in your package,we also have a copy of those sq a violation of 50.7 because Mr. Hobby's posanon was og clinun= red based on the reasons which Mr.Wilhams Pagea3I Pags a6 pl overheads m

MR. REYES: Yes, sir, ni < -Md to you.It was not ehmmated based on a MR.HAIRSTON:These charts are a m any sort of retahation for raising a safety as concern ^

pi side.byede compenson of several conflicting p1 let me speak for a minute about the need Is) credibday determmations made byjudge Wilhams is for corrective action.We do not believe that therc

{

pj and the A...sy oflabor.

! pi is a need for us to take scuon to raske sure that m

In essence,the Secretary chose to l

m believe the tesumony of Mr. Hobby and to discredit 1 m Geotys Power or Southern Nuclear empics. know l

p1 the tesumony of each of the seven or eight Georps si that.They are encouraged to identify and report

. og Power wunesses who swore under oath that si safety and nonsafety concerns which they may have.

i pq This asutude of openness is reflected in our pq Mr. Hobby's concern was not a factorin the i

pq deshngs with you as the regulator.

pq ehmanation of his position.We believe that this pq From the very t-i-

'=5 of this case,we i

pq was improper and is grounds for reversal in and of og have kept the NRC informed about its status.In l

pq itself.

pq-nat's the last of the credibshry pq fact.on February the 1st.1990,before Mr. Hobby pq filed his Department oflabor complaint, Pat pq overheads.

ps; Mcdonald called Mr. Stewart at NRC and informed him on Then we have an overhead of the Secretar7 pn that Mr. Hobby was clamung he was being discharged pm of Labor's decision not based on suhsemanni 04 for raissag a regulatory concern.In your package, pq evidence in the record.

pq there are some letters that went back and forth pq De linchpin of the Secretary's riding ism between our counsels that cover a series of phone og was his conclusion that the decision to elimmste pq calls or notifications.

j

' pg Mr. Hobby's position occurred in a rn=nagerrent am Georgia Powerand Southere Nuclear's i

og council mecung on November the 7th,1990 - let me j

eq say that again - was the conclusion that the psi orgenwarians have a longstanding policy designed to pq foster the raismg of concerns and the an decision to clinunate Mr. Hobby's posman occurred me i'lenn&snan of problems at the nuclear plants of BROWN REPORTING,INC. (404)876 8979 EElm U-Scripts (11) Page 52 - Page 55

PREI)EC3EONA1 ENPruar srassmfr CONFERENCE IN THE MATTER OF MARVIN B. HOBBY v.

.0ctober 4,1995 3

GEORGIA POM COMPANY 1

Page36 l

Page 38 i

to the Southern system.We have included in your ni reasons,and we feel deferral of any enforcement I

m package representative documents on policies and p: action is appropriate.

m historic statements of the company where we've p)

First. Bye years have passed since

{

M emphasized and reemphasized our pokcy.They go m Mr. Hobby's general menegr position was isj back to 1988 and include training material used at ist eliminated. Georgia Power's employment levels, m Hatch and Vogtle.1 won't go through all of these, m including general manager posinons, have been m but let me just highlight's couple,and I think it's m reduced signi6cantly from early 1990.This m fairly exhausuve.and there is an index that am m demonstrates that,in fact,Mr. Hobby's position was m take you through it in a much more organized form.

m clinnnated because it was unneeded.This is,

nm On May the 1Ith,1994,1 duccted a noi addmonal informauon which the NRC should consider no letter to all Georgia Power nuclear employees in nn which was not available to the Department of Labor.

pri which I resterated the company's policy that 02)

Second.there is a pending licensing psi everyone should feel free to raise any concern they na proceeding before the NRC,ASIB which will address pq may have either to their supervisors,to the quahty pq aspects of Mr. Hobby's concern about Mr. Mcdonald's psi concerns program.or to the NRC itself.I promssed no chain of command.Mr. Hobby,Mr. Whams psj that a fair and reasonable response would be gsven

!ssi Mr.Dahlberg,Mr.Farley,and Mr. Mcdonald all na to each concern and that each employee could raise inn tesufied in that proceedmg.in addition.the NRC pm his or her concern without any fear of penalty or ins) staff filed proposed findmgs m that proceedmg ne retahauon.

ins) which concluded that Mr. Hobby and NOCA had no um Yesterday, Mr. Alan Franklin, the CEO of

'am relanon to the safe operzuon of the Vogtle 99 Georgia Power and my boss,sent a letter to all og facilities.We would expect the ASIB to address the pri Geoisia Power executives.all Georgia Power um reasonableness of this concern as well as the um executrees,and nuclear employees,again reminding ips credibihty of the wrtnesses.it looks like the pq them cf this policy.This letter contams the lpq decision may be issued in a few months.The NRC as) following coramitment to all who raise a concern.No.

{ psi staff should await the Board's review.

Page 37 nj retaliation for raising a compliance concern will be Page 39 p)

Finally, we expect a reversal of the m tolerated.We firmly believe that we have been ni successfulin encouraging employees to come forward si Secretary oflabor's decision following an appeal, m

For these reasons,we ask that you defer m with their concerns.As you know,the NRC in May

, m any enforcement action until the conclusion of these tsi cndJune of this year conducted an inspeccon of the

. m furtherproceedings.

n quahry concerns programs for Plants Vogtle and

m I want to make sure that you have all the m Hatch.The inspection report pointed out that we l m handouts that we brought.We have the handouts of n needed to tighten up the Hatch program m terms of j m the overisys used in the presentation and the copies m the thoroughness of teview of concerns,plus a few m of the reference documents.We have the DOL na other comments.

nm ad=- +tsve law judge's 1991 recommended nu What I have personally found very inq decision.We have a package covenng employee in encouragmg is the following statement from the lna concerns and nonretahation policies,and then we se NRC's report.The 50 employees intemewed all Ina also have excerpts of the DOL hcanng which we feel ut stated they would report safety concerns.All said jpg the NRC staff willfind helpfid.

is they would report such concerns first to their jns)

Mr. Reyes, this conclude', my prepared

$q supervisors or managers and would have confidence ine remarks.

in that the supervisor or manager would adequately

)pa MR.REYES: Let me make sure we have n isj resolve the concern. Most said that all such lns; the documents.1 want to tuake sure we ha them sei concerns in the past had been adequately resolved by lnsi all, rm their supervisor and management.All said that they pq MR. HMRSTON:We have one more set we re ry have not been intimidated by inanagement for raising an bringmg out,the transenpts.These are just ra safety concerns.

pn poruons of the transenpts.

rm I recogmze that the NRC might feel pa Mr.Reyes,we realize we're putung a lot ni responsibihty to act on the Secretary of Labor's ipq of informauon,wntten informanon before you,and ze order.However.our case is unique for several jps it's gomg to take you some tune to look through it

> age 36 - Page 39 (12)

Min.U-Scripte BROWN REPORTING, INC. (404) 876 8979

i-IN SEE DEATTER OF REARVIN B PREDEQSIONAL ENFOWW3'NT CONFERENCE hanwana m em. HOBBY v, October 6,1995 i

page ao :

Page sa I

19 and' bring you up to speed with not only the issues

! p) come back and ask you and take the advantage of you i

m of the $ccretary oflabor's decision and the l

{ p) being present.So we will go off the record fo j

pi precedag decisions but also the thick package on pj about ten annutes,and we'll be promptly back.

j pj what our policies are and what we've done in the

pj (Discussen ensued off the recordJ 1

isi representsove packet we brought you.and so what I

p)

MR REYES:We do have some quesuons

{

p) would propose.aher your staff has revaewed that.

' pj that we'd just like to clanfy m if they have any other questsons,we would be glad m

The first one is,on the size of the i

pi to file,you know, additional clardicauons upon si organizsuon for NOCA, what was the intended size of j

m yourrequest.

pj the organnaann ongsnally? Do you know?

pq MR.REYES: Have you concluded your i

pq MR. WILLIAAIS: No. I knew what they had og presentanon' pq put together originally,which was the manager and pa M. HAIRSTON: Yes, sir.

ne two.as I said, much lower level posioons of q

pg M.REYES: Do we have any quespons now?

ng accounung and fir==enal background.I think during 0 41 MR. GRAY:I do, n41 the year,Mr. Hobby tried to hire a performance pg Recognaams that you intend to appeal, pq engineer.and that was the saustion wherem l

ng that you disagree with the Secretary oflabor's og Mr.Dahlberg said at that point we couldn't hire any j

na decision. you are nevertheless currently under an

,pn further.

ne orderfrom the Secretary oflabor-

psi MR. URYC
Do you know what the potennal i

poi MR.HAIRSTON:That's correct.

!nq was in growth? Could that have eventually been a um MR. GRAY:- that pnmdes that the lag 30 person organszatson?

pn Respondentis ordered to offer = ; -

r pq MR.WILLIARRE: No way.because as I said, prj rena=rarement to the same or a cornpav= hic posmon as we had seven or eight people managing alreadv 47 asi to which he is eaarlevi comparably paying benefits.

as contracts.and we had people in the joint ownerslup m and so on.

m accountag area that were doing accounung functaons og Have you at this point offered to as already.We had people in my ares that were Page 41 Pags 43 in reinstate the Co==^W or have you sought a stay pj followmg the operatnonalissues as faras co owner si of this Secretary oflabor order?

si type operational issues. not line operation.They ra M.HAIRSTON:It is our understan6ing pi had more people than they needed then in that m that untilit is scrasaded back to the jrige and the pi r.

.lar job,even if the contract was in place at te judge acts.it's not a final reqmrement on us,and a the time.

m so we're in the process right now of waning on the p

RNt. GRAY: On yourappeal of the m Judge.We've had no notdication from the judge m Secretary ofIabor's decision.do you have a feel ist that there will be a remedial hearms.

pj gor how long that may take? I think you probably pj MR. GRAY: At this point you have not si will need to go through the remand first.I think pq made the offer and have not sought a stay?

ng that the case law would show that that's necessary, on MR.RAIRSTON: No.

pq RER.HAIRSTON:That's why we're waams.

ps M.MERSCHOFF:It's our irnent.of ng You can't take it to a U.S. court until a decision og course,to put out the minutes of this promptly with na is ripe,which would be after remand,and we have nei all of the =*=chairars you've pamded.Ijust want og not heard from the judge yet,so we have to wait og to be sure that you understand that.nis all goes og until we get through that phase and then statt our pg into the pubbe rha-a-og appealprocess on MR. HAstSTOM:Yes,I under== net pq int. GRAY: Maybe Mr.Domby can provide an pq idR.lERSCHOFF:We will endeavorto do pg caneamre of the time frame for that appeat pq thatveryprotnptly.

94 RER.DOMBY:I would be glad to attempt pq MS. EVANS: No quespons.

pq to.Otmously,H an agreement were to be reached pq MR.REYES:What I'd like to do,perour og on the element of compensation and settlement,that pri ongmal agenda. I'd like to have a caucus.since as would chana=re any appeatIf the parties pg you're here,for about ten minutes.1 want to as supulated to the compensation element,then we og consult wah the NRC staff and make sure that while og would not have to have a remand heanng.I'm og you're still here,there's no issues that we can't se fannhar wah a case that u..e.Jy is being BROWN REPORTING,INC. (404) 8764979 EEla Uscripes (13) Page 40 - Page 43

PSEQECISIONAL ENFORCEMENT CONFERENCE IN THE M11TER OF MARVIN B. HOBBY v.

October 61995 GEORGIA POWER COMPANY Page44 19 perfected forappeal to the lith Circutt,and that Page46 ni defmatrve job description.

m has taken over a year.1 don't know the exact time m

Other people were conunuing to meet m frame.So there is some time invohred in perfectmg pi Georgia Power employees, whether they were in si the appeal.

p BirmWham now in the Southern Nuclear project or m

MR. HAIRSTON:And we're probably looking n) stiH in Atlanta, meetmg. talking about budget, m at four months for the AS13's,inside probably a m exchange of information, accounting information, m mammum of three to four months.

m GC's memos.He was getting concerned about that.

m MR.REYES:IJnda?

p)

That was what I was telling him. Marvin, m

MS. WATSON: In the Secretary oflabor's se decision, he states that Mr.Wilhams admrtted that m there's not a defined role yet.These people, even om in their memos, mentioned, what do you rhmk

in he had counseled Mr. Hobby about writing memos such on Mr. Hobby's position and his group shoulu be in ttr) as the April 27th memo,and Tm just wondering if Inzi this? So they were even asking as to what was the

,3) you have some comment about whether or not you told

{ta, purpose for this.

ei him not to wnte such memos or what your comments itial As far as the regulatory issue where he
ss) were in that regard.

i as, MR. WILLIAMS: Sure.As far as this lps; said,1 hear at all these different levels, well, po Tm an officer of the company,and I haven't heard n particular memo.1 didn't tell him not to wnte any Ipn anybody say, we don't think Pat Mcdonald reports to isi memo.What i explamed to him was,when he brought

.nsi Bill Dahlberg.He says he hears that.1 said.

ei me the memo and I read it,it was replete with inst Marvm.it's just not the case.He's an officer of 2m ermes.h was not what I had asked him to bnng to 29 me,in the first place.1 was trymg to get an idea iam Georgia Power and reports to Bill Dahlberg.The

!py management council of the board of directors m of just what they thought their role was going to Igrj approved the budget procedures,and also,it's ni be.They're the ones that created this job.

lps) working the way it is.We!!,I hear Oglethorpe says ui They're the ones that were pushing it and saymg joy that.Marvin, yesterday,you asked me about that.

2s1 they were havmg problems gettmg people to ips) I gave him an organizational chart. I said what Page 45 '

in cooperate with them.1 said, what are your defined Page47 i

m responsibilines? All we had was a one-sheet, Bill 19 Oglethorpe had told rne before was that they jus:

. A wanted to make sure NRC was comfortable with the n Dahlberg, essentially, memo saying,we're creating

' p) dual hat rule, being an officer of Southern Nuclear wt NOCA.So we asked him to say,all sight,Mr. Hobby,

) p1 and Georgia Power and Alabama Power at that time.

m te!! me what you thmk yourfuncuons are,Bnng i a:

I said,Marvin,a lot of these problems

s) those to me and Act me understand what you think

, m you've got in your memo just are not true:they're m your role is gomg to be because I think your role m not factual.1 said,if we tried to get an ist t1 ready exists,and so he was puttsng that m together.

m orpnmtion like yours off the ground,there would m be an interface between a new project and the rest m

Innead.what he brought me was this,and

pm of the coowners and us.

n he starts off with the first sentence in here,there jnn You know,the memo one,is not factual.

tri is cicarly no defmed person responsible actmg for

pr, I can tell you some of the things in there that are is) the agent and jomt owners.1 had been doing that ins) wrong now.You're complainmg and you're whining a ui since 1984,1 had been acung as agent for the

{pe not in the memo Marym, my manager style would be isj jomt owners and all the jointowned facilities,so Insi that you need to sit down with these people and try isi that's the first hoe m the memo.

!nsi to work things out and not just fire a memo off in He goes on to say it's his understandmg,

nn accusing people and saying things are not working isi when we negouate a new contract with GPC and insi nght.You nced to consider that before you send ist SONOPCO.that he would be the one negouating that
pel this memo out.And that was my discussion with m and act as theiragent.That was not go,ng to

'p:n Marvm in a nutshell.

29 happen cither.I had been the lead negotiator inn MR.URYC: So what you're saymg is that m negotsaung Southern Nuclear and all these other tur; in reahty,the April 27th memo from Mr. Hobby was, n! contract changes we ve been talking about smcc insi in fact,a work product you had directed hun to do, wi carly '88,a year before,so here he was in an ipo that bemg,Mr. Hobby,please defmc what your view m illdefined role that really did not have a ips) of NOCA is and what sts responsibihues are gomg

  • age 44 - Page 47 (14)

Min-U.Scripte BROWN REPORTING, INC, (404) 876-8979

. IN THE MA'1TER OF MARVIN B. HOBBY v.

PREDECISIONAL ENFORCEMENT CONFERENCI GEORGIA POWER COMPANY October 4,1998 Page 48 Page 50 pi to be?

i 0; in.

l m

MR. WILLIAMS: That's correct.

lm The combination of those two things and pi MR. URYC: You were gmng him that I pi the fact that we had elimmated his job.I suggested I

pl direcuon.and this is the work product that he

{ pj to Mr. Hobby,you need to move on up to the floor ts) brought to you in response to your direction of I m where I was so I would know what's going on.!

pi Apnl 27th?

l gj needed Lim to sign in every day just in my area for m

MR.WILLIAMSi That's correct.

l m what I considered secunty reasons from the si MS. WATSON: On another topic,the

' p) standpoint of the company and our nuclear program to: Secretary oflabor also found that there was si and other programs,and all I'd asked him to do pm disenmmation in changmg Mr. Hobby's parking pq during that period of time was to find another job.

pil prmleges and his building access.Can you briefly pij and I had offered eight or ten thousand dollars help pri tell us what your reasons behind those were?

p21 to him from a consultant to help him find another 03)

MR. WILLIAMS: Yes.Actually.it's a na job.I had to continually work with the personnel

04) concern from the standpoint of nucicar safety
94) department to work with Mr. Hobby on looking for ps) because we were already informed.one.Mr. Hobby was

.ps another job in the company. He never took any kind psi climinatmg his job.We had the discussions of lps) of opportunny to do any of that.and he just sat on trytng to find a meanmgful separation or another

!nn out his time.1 said.there's no reason.then.for psi job.I had already moved Mr. Hobby's people up to ps) you to be going anywhere else in the building.With ps) the bulk power market floor and absorbed those into

psi my concern of safety,I want to know what you're rol the extsting department that was already doing this tact doing.so be on my floor. Sign in.You only need pil job and ! cit him m his office.

'asi to be on the first through the third floor.which is mzi One day he came up.though.as we pri the ho man resources that does this type thing.and na frequently were still meetmg after that:and I ps; the ni.acteenth floor.In reality,once you're p4r trught say the pipchne issue and all of this was A4l inside the Georgia Power building - you may been 251 even after the Apnl 27th memo.Up to this time.!

251 there - you can go to any floor you want to, so Pa 49 Page 51 r

pl still had Mr. Hobby meeung with the joint owners l pl that was mt a big consustnt.

m working on these contracts,at least the technical se As far as the parking place.we moved him m portions of them,so I had no problem wnh Mr. Hobby pi fr m a covered garage on one side of the building to si continuing to funcuon in those areas. It was just pi right outside the fmnt h a the der side, is} we didn't need a general manager's job at this E

ist level. It just was too expensive for the company t p3 place for him.It wasn't like we told him to go m have that.and it w2s confusing from a reportmg m find some place to park.We moved him from a free si standpoint.

p) access area where we were concerned about him to one pi But he had come up to my office and said pi where he had to come by the guard.

q MS. WATSON: That's an I have. _

pq he was ured.1 said why are you tired? And he ris MR. WHEELER: Did other people on your pij said.because I've been dowr shredding nuclear fler also have to sign in?

pri documents.Havtng told Mr. Hobby we're going to pq MR. WILLIAMS: No.

ps) chmmate his job and not being able to come to a pai MR. WHEELER: But he did?

04) reasonable settlement.that gave me some concern pq MR. WILLIAMS:Again the reason I was psi that a man was down there shreddmg some documents pq doing that was that I uss concerned about the ps) that I was unaware, so after that.and then a day or pn posnion and what went on.lt sus not because of na two later.I think.Mr.Boren.the seniorVP who had og any retahatory.1 was just concerned and would psi been part of our negonations on separzuon, had poi like to know what he was doing.

poi seen Mr. Hobby come in through our executive garage pq MR. REYES: Thank you for answenng all poi and had somebody that we didn't know wnh him or he en our questions.We have no funher questions at this an did not recognize.The way our executive garage is prj time.and we w2nt to close the meeung.Thanks.

prj set up is, you came in wnh just a card access psi (Proceedings concluded at 3:30 p.mJ izzi through one of these wooden doors and you didn't pq pq have to pass the guard to go inside.so you didn't asi pq have to sign anybody in.You could bnng anybody BROWN REPORTING, INC. (404) 876-8979 Min-U-Scripts (15) Page 48-Page 51

  • sktski.A)lOl%L ENFOsiteFMF14T CONFERENCE IN THE MATTER OF MARVIN B. HOBBY v.

deedtper 4,1995 GEORGIA POWER COMPANY Page 52 til STATE OF GEORGIA:

COUNTY OF FULTON:

121 pi I hereby certify that the foregoing transcript si was reported,as stated in the caption,and the isi proceedings thereto were reduced to ryw m.4 rsi under my direction;that the foregoing pages 1 ra through 51 represent a true, complete,and correct a transcnpt of the evidence gntn upon said hearing.

n and I further certify that I am not of kin or 19 counsel to the parties in the case;am not in the l'il ernploy of counsel for any of said parties: nor sm l 11 :1 in anywise interested in the result of said case, Disclosure Pursuant to O.C.G.A. 91128 (d):

tial tw The party taking this deposition will receive risi the onginal and one copy based on our standard and tisi customary per page charges.Copics to other parties tin will be furnished at one half that per page rate, risi incidental direct expenses of productaon may bc

ssi added to either party where applicable.

Our customary appearance fee will be charged to i

2o1 vi the party taking this deposition.

2ri This.the 5th day of October.1995.

2 11 al JOHN P.PAYNE CCR B-1006 l

My comtrussion expires on the 2sl 7th day of October,1997.

j e

I i

i I

i age 52 - Page 52 (16) h U-scripte BROWN REPORTING, INC. (404) 876-8979

4 y.

~

CHRONOLOGY Summer,.1988 Announcement of SONOPCO Project location in Birmingham.

Marvin Hobby turns down an opportunity to be considered for a position in GPC Nuclear j

Operations in Birmingham.

November 1,1988

" Phase I" SONOPCO Project Formation.in Birmingham.

December 14,1988 Grady Baker's performance evaluation of.

Marvin Hobby. (Tab 1)

December 27,1988 Bill Dahlberg memorandum forming new NOCA group; new General Manager position created for Hobby. (Tab 2)

January 27; 1989 Hobby's new General Manager position two.

levels above his old position; salary increase from $95,000 to $103,140 per year plus potential bonus (CX14; Tr.116).

April 26,1989 Hobby memo to Fred Williams transmitting Oglethorpe Power's request for explanation of reporting structure. (Tab 3)

April 27,1989 Hobby memo to Fred Williams identifying problem areas between NOCA and SONOPCO Project. This memo was solicited by Williams.

(Hobby Tr. 147-148) (Tab 4) t i

j I!N3DSURE 3

CHRONOLOGY - Continued May 5,1989 Bill Dahlberg, Joe Farley, Grady Baker meeting in Atlanta to discuss SONOPCO-related negotiations between GPC and Oglethorpe Power. Request for SONOPCO Project to employ Hobby.

I May 15,1989 Williams memo to Hobby responding to Oglethorpe Power's request; Hobby provides memorandum to Oglethorpe Power. (Tab 5)

June 28,1989 Michael Barker in SONOPCO Project (Vogtle) calls " Dial Dahlberg" concerning his transfer request to Hobby's NOCA. Barker states that Dahlberg says the need for NOCA is uncertain.

(Hobby Tr. 908-911.)

November 7,1989 Georgia Power Management Council meeting in which the performance of VPs and GMs was evaluated (Mcdonald and Williams not present).

January 1,1990 Hobby begins to report to Fred Williams.

Williams reports to Dwight Evans.

February 2,1990 Hobby's position as GM - NOCA eliminated, out-package set forth in letter. (Tab 6)

October-November, 1990 Department of Labor Hearings, Hobby v.

Georgia Power.

2-

WHY WAS MR. HOBBY'S POSITION AS GENERAL MANAGER EIIMINATRn?

November 8. '1991 August 4.1995 Recommended Decision Decision and 90-ERA-90 Remand Order i

I find that the decision to Respondent [ Georgia Power]

eliminate the position of decided to remoye manager of NOCA was in no Complainant frcra the way related to

.. the

" pipeline" to silence these concern raised in his April 27, ongoing complaints about the 1989 memorandum as to from reporting structure.

(SOL at whom Mr. Mcdonald receives.

23) his management direction for operation of the ' Georgia l

Power Nuclear plants... the

~

l decision to eliminate the l

position was fullyjustified as a measure to operate the Respondent's nuclear program more economically and efficiently. (ALJ at 44)

O f

i a

i l

GROUNDS FOR GEORGIA POWER APPEAL I

'The Standard of Review for the Secretary of Labor's Order

'Ihe Secretary of labor improperly made credibility determinations l

The Secretary of Labor's decision is not based on substantial evidence in the record i

The Secretary of12our erroneously concluded that Mr. Hobby's complaints about Mr. Mcdonald's " lack of cooperation with NOCA" were safety concerns l

i i

?

(

)

)

l THE STANDARD OF REVIEW FOR THE i

SECRETARY OF LABOR ORDER v

.i>.

"A Secretary's findings of fact and credibility choices must be supported by substantial evidence...As in this case, when there are dienareements between the Secretary and the ALT involving questions of fact and credibility, the court may examine the evidence more critically in determining whether there is substantial evidence to support the Secretary's decision....we are not required to choose between the ALJ's and Secretary's determinations. Rather, we merely require that the Secretary's choice in adopting two fairly conflicting views be supported by articulate, cogent and reliable analysis." Bechtel Const. Co. v.

Secretarv of Lahor,50 F3d 926,933 (1Ith Cir.,

1995).

"[W] hen the administrative law judge has concluded that a witness's testimony is credible, that is an important factor for a reviewing court to consider.

The notion that special deference is owed to a credibility finding by~ a trier of fact is deeply imbedded in our law....We are neither to conduct a de novo. proceeding, nor to rubber stamp the administrative decisions which come before us.

Rather, our function is to ensure the decision was based on a reasonable and consistently applied standard, and was carefully considered in light of'all the relevant facts." The basis for rejecting the

{

ALJ's credibility findings should ordinarily be expressly stated. See, Parker v. Bowen,788 F2d 1512,1521 (1Ith Cir. en hanc,1986).

1 THE SECRETARY OF LABOR IMPROPERLY f

MADE CREDIBILITY DETERMINATIONS i

4 l

Judge Williams Secretary of Tibor

[Mr. Hobby] declined to The AU erred in finding that j

transfer [to Birmingham).

Complainant designed NOCA l

Instead, he designed a job for as a means to stay in Atlanta...

j himself which he could Dahlberg testified that he l

perform at the Atlanta ' '

established NOCA in Atlanta l

headquarters of Georgia because that is where he is l

Power, i.e., manager of a located. (SOL at 22, fn.13) j contract administration group.

He then sold the idea.to Mr.

Head, whom he respected and with whom he apparently had a good relationship. Mr. Baker reluctantly went along with the idea because he did not have anything else for the Complainant'to do. Mr.

Dahlberg's approval was based, in part, on his belief that incorporation of SONOPCO would occur in a matter of months. (AU at 40)

~

l i

1

j s

i THE SECRETARY OF LABOR IMPROPERLY MADE CREDIBulrY DETERMINATION I

i Judge Williams Secretarv of Ishor j

Fred Williams' objection to Criticism [of Hobby's having the memorandum go management skills] was based l

forward, or even being on the protected complaint i

preserved, was based on its raised in the memorandum, not

}

obvious complaining style...

on the memorandum's -

j I believe Mr. Williams when

" complaining style." (SOL at i

he says that he was just trying 20) to help Complainant to be a ll better manager. (ALJ at 42) 4

=

l I have' quoted the April I conclude that Williams feared i

memorandum in tota because I the memorandum, detailing believe it amply demonstrates and documenting 4

i why Mr. Williams was Complainant's [ Hobby's]

j unhappy with the document, problems with Mcdonald's 4

His objection... was based-interference and warning i

on its obvious complaining Respondent [GPC] about the i

style. Significantly, the potential regulatory violation, i

memorandum which the would validate Smith's Complainant raised the concerns or garner new ones previous day, which raised by Oglethorpe [ Power]. (SOL j

essentially the same reporting at 24) question, was retained in Respondent's files. (ALJ at 42) 2-

i i

s l

THE SECRETARY OF LABOR' IMPROPERLY MADE CREDIBILTTY DEIERMINATION I

i Judge Williams Secretary of Labor That their [ Management The drastic, inadequately Council] evaluation of the explained change in Complainant's abilities may Respondent's perception of have differed from earlier Complainant's work performance evaluations comes performance is further as no great surprise. Mr.

evidence of pretext.

Miller and Mr. Head, for (SOL at 21) whom he had earlier worked, had retired from the Company

... the evaluation was based on his performance in a different position. Mr. Bak~ r e

was concerned that the Complainant had not fulfilled his job of gaining cooperation from SONOPCO. (ALJ at 43)

I

i THE SECRETARY OF LABOR IMPROPERLY MADE CREDIBHIrY DETERMINATION j

Judre W'illiams Secretarv of Imbor Revocation of executive

~ Williams and Boren limited his l

parking privileges and.bailge privileges to hinder the and his restriction to certain lawsuit. (SOL at 28) floors of the headquarters building was not in retaliation for his having filed the instant

[ DOL] complaint but was a justified security measure.

(ALJ at 44)

J m

)

i i

\\

. s TRF SECRETARY'S FINDING IS NOT BASED

-ON SUBSTANTIAL EVIDENCE 1

  • w.~.

, e ~ ;-

u.

l The' council members in effect decided to terminate Complainant's employment during the. November 7 meeting. Baker ultimately conceded l

l that they decided to eliminate the position at that time.. Williams and

.; 1 Evans simply provided Respondent with a post-hoc explanation for implementing the. November 7 decision. (SOL at 18, citing.Tr. at 702-04,

\\

708-09.).

/4 THE EVIDENCE l

Q.

So it's your testimony that on the date of that management council l

l meeting Marvin Hobby was eliminated from Georgia Power Company, the final decision?

A.

Not eliminated. We concurred with a recommendation that had been t

l made, yes, and that was the final concurrence. There was nobody-I else to get concurrence from, because all the senior officers of the l

i company were there.

i i

l 4

7 Q.

Now, Mr.. Dwight Evans testified earlier that his recollection of it, and that he had a specific recollection, was that the decision was i

made mucli later on December 29th,1990.

A.

I have no idea what Mr. Evans has in mind.

Q.

So, it's your understanding that happened a lot earlier than 'that December 29th meeting?

A.

No. I've testified several times that I don't remember the date of this meeting.

i

)

Q.

But the notes A.

But, you know, both counsel and you have showed me things, and you've asked me~if this makes sense, and I have agreed with you that it'does make sense, b'ut I do not have an inuiependent recollection of the date of the meeting, period.

Baker, Tr. at 704.

......e..

1 2-l

j

_,-y.

_ ~~

Q.

So we have that management council meeting [at which the i

leadership of individuals in higher postitions of the Company were evaluated]. Now I want to ask you if you remember another i

management council meeting subsequent to the one we've just been talking about, and if you remember Dwight Evans at that meeting announcing to the management council that a recommendation had been made by Fred Williams, approved by Dwight Evans, approved by Tom Boren, that Marvin Hobby's job should be eliminated as not necessary?

A.

Yes, sir.

-Q.

And without regard to whether - you know, I won't ask you to state what month because I know you don't remember the date, but is

'i your testimony that the nieeting in which Mr. Evans spoke occurred after the meeting in which the nerformance and notential was evaluated?

A.

h Baker, Tr. at 708-709..

S

Mn_ MenONAT n'S " LACK OF COOPERATION" wrrn NOCA WAS NOT A SAFETY CONCERNS THE SRCRETARY'S POSITION 4

i

"... Complainant's protected complaint about the reporting structure also was implicit in his complaints about Mcdonald's lack of cooperation with NOCA... criticism of Complainant's complaints about lack of cooperation from Mcdonald is, therefore, based on and tantamount to criticism of Complainant's protected activity." (SOL at 22-23)

" Williams admission that he informed Dahlberg and Baker of some of the concerns raised in the April 27 memo. '.. inherently would have included Complainant's accusations of wrongdoing and predictions of NRC intervention as a corollary to Mcdonald's lack of cooperation with NOCA." (SOL at 24)

THE NRC's POSIT (QH NOCA was not required by NRC rr;ulations, the plants' licenses or e

the licensee's commitments to the NRC

\\

"... the so-called NOCA group had no relation to or effect upon e

the operation, or the safe operation, of the Vogtle facilities." NRC Proposed Findings of Fact, Conclusions of Law, and Order.

Georrin Power Company (Vogtle Electric Generating Plant), Docket SO-424/425 OLA-3, March 6,1995, at 29.

"... Mr. Hobby and NOCA had no relation to the safe operation of e

the Vogtle facilities." L at 33.

I l

)

a a

/ ']FE GeorgiaPower 6 sforman?J Appraisal p:ge i et 4 s

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i

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Mahhv. hevin B.

427:4 Aset. to Senior Executive Vice President i

Owase#Deserunem Annum were news.oene Leeeuen j

Executive 1/1/89 14/333 j

^-

J i

%nage nuclear financial services in such a manner that provides timely reporting and

]

.nformation to aansaers on fiscal matters, provide oversight to budget preparation and eens 591 expenditures.

j Maintain Nuclear Operating Services Operating and Maintenance actual expenditures as follows 4

95.0% of budget or lessi.....

4.......... Excellent j

l 95.12 to 100% o f budget.................. Commendable 100.1% to 105.0% of budget................Fu11y Acceptable' i

i personnense annussen I

1 l

Through October, total duel'esires'p'oddilitj'budgit was $121231,146 under budget or 5.951.

~

Through October, Nuclear Operating Services 0 & M expenditures were $6,800,000 under budget i

or 13.81.

CExcellent Ocommendable OFully Acceptable ONeeds improvement O ur===*=*= ~ y Provide administrative, procurement. MIS and financial services support to Hatch and Vogtla such that site 0 & M expenditures are maintained wittiia*.epproved levels.

Goes l

Maintain Nuclear Operations Res'ponsibility budget as follows:

' 95.5% of budge t or less.................. Excellent 95.1% to 100% of budget..................connendable 100.11 to 105.0% of budget................ Fully Acceptable poseenmenos avanseems 1

Through October, total nuclear operations responsibility budget was $12,231,146 under budget or 5.951.

(

CExcellent Ocommendable OFully Acceptable ONeeds improvement Dunsatisfactory GFii G00G21

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Perform:ny) Appraisal Psge 7 of a

ucO!gid runci a anienei.e u.mo um name enso amo.No.

Gwws Ne/Tde Mobby. WrvfnB.

4'1784 Anne. en Benier Frecuetve yte. prest OhneesWOopenment Annual Mont Review Does Locauen 1/1/R9 14/113 Estaeuefva j

m.

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Provide Management direction and oversight to Corporate Security and Quality Technical Services ce ensure centelf ance with NRC reeniremanen.

eens W: 4 Achieve improved performance in security such that the number of F.'.C violations related t l

security per 10 inspector aanhours is limited tot LEVEL 1.

II.

III IV and V Excellent 0

0 0

0.

I Comumendable 0

0 0

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0 2;

No violations in Nuclear Procurement Group.

4 There were no violations resulting from the work of the Quality Technical Services Group.

i 1

i OExcellent Ocommendable OFully Acceptable ONeeds improvement Ounsatisfacice j

^--

I Promote safe work practices in all locations to reduce disabling accidents as evidenced by kaaping the incidence rate as low as possible.

Gee 6 1,

Performance Hessures An incidence rate of

0. 09 or 1ess.......................... Excellent 0.10 to 0.13.......................... Commendable 0.14 to 0.17.......................... Fully Accentable poeconnense massenes l

The lost time incidence rate at Plant Hatch and Plant Vogtle is 0.0.

DExcellent DCommendable OFully Acceptable ONeeds improvement Dunsatisfact r%n e e rsesa - -

sossa.es

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. Perrohnance Appraisal Page 3 of '

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UTale l

' M by.'Marvin B.

42784 Asst. to Senior Executive Vice Presidet i

AnnuaiMorn Revow com t.acemen ommewoesenmes Executive 1/1/89 14/333

^

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.e IProvida coordination and management of Nucisar Procurement Organizac such that capacity factors of both Flant Hatch and Vogtle are maximized.

t esas

w Achieve capacity factors as follows

1 I

F1 sat Hatch..............

65%

Plant Vogtle............ 67.5%

I ponennense Sweemeen e

l Capacity faolorsichrough Gotdb&t are as follows:

1,

~

l Plant Hatch '.............. 63.2%

l Plant..vogtle.............. 72. 8%

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1 OEscenent Ocommendable OFully Acceptable ONoods improvement O uns 4 - i j

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-OExcellent Ocommendable OFuuy Acceptable ONeedsimprovement OUnsatisfactory GPH 000023

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GeorgiaPower n 4

Emp. M AnnualMen, As

< Dew Emoneyse,Name Ram Name PWW) 42784 1/1/S9 tobby, Marvin 3.

Oneses possennenes Aemns j

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.E Marvin's knowledge of national nuclear industry is unsurpassed. He has been'on temporary assignment in Nuclear Operations this year and the Sr. Vice President - Nuclear. Operations concurs in this rating.

Deuetsomeneineses l

Other assignments to broaden knowledge of Georgia Power Company's general operations.

f evene eses,in amenemuse l

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osenessmenes aseen pian J

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1 s

EXECUTIVE OFFICERS DIVISION VICE PRESIDENTS i

GENERAL.0FFICE DEPARTMENT HEADS l

DIVISION, MANAGERS 3

As you know, Georgia Power Company's nuclear operations group has j

been relocated to Bimingham, Alabama. We are in the process of working out the agreements with our joint owners to establish Southern Nuclear j

Operating Company which, when finalized, will contract with us to operate our nuclear plants.

It is important for us to realize that while our nuclear operations may be managed in Birmingham and ultimately will be managed by a separate i

Southern subsidiary, Georgia Power will be held accountable by our j

i i

regulatory groups, our stockholders, and the public for the operation and

'i performance of our nuclear units. It is essential that Georgia Power Company be involved in the operations of our units, monitor their perfomance and integrate nuclear operations goals, accountabilities, and i

finaricial planning into Georgia Power Corporate Plan.

Effective immediately, a Nuclear Operations Contract Administration Group is formed to interface with our nuclear operations group in l

Birmingham. This group will report to Mr. G. F. Head Senior Vice President, who will be responsible for all riuclear operations interactions.

Mr. M. B. Hobby, Assistant to the Senior Executive Vice President, currently on loan to Nuclear Operations, is named General Manager Nuclear Operations Contract Administration and will report to Mr. Head.

Your support as we move to restructure our nuclear operations group is appreciated.

A. W. Dahlberg

/dt c: Mr. E. L. Addison Mr. J. M. Farley Mr. H. A. Franklin T&B-A

GeorgiaPower 1

~

Interoffice Correspondence

&, M l

DATE:

April 26,1989 Mr. Fred D. H1111ams TO:

FROM:

H. B. Hobby At the April 19 Subcommittee for Power Generation meeting,.

Smith requested a response to the following.

the minutes exactly as Dan stated.

" Dan Smith requested that Oglethorpe be provided an organizat h the presentation by SONOPCO on the reporting chain up throug Board of Directors for Mr. George Hairston, Mr. R. P the picture and who he reports to up through the Board."

Mr. Joe Farley.

As we discussed I am forwarding the question to you for reply.

/bla Mr. G. F. Head

~~

c:

]

1 l

[

I interoffice Correspondence Geolgia Pinvel b n,,,,,,. gg, CONFIDENTIAL Mr. Fred Hilliams:

1 Following.is a. list of problem. areas in Nuclear Operations that you requested.

i 1.

Reseensibility as Aaent:

There is 'no clearly def.ined person responsible for acting as agent for the Joint Owners.

I serve on the Joint Subcommittee for Power Generation (and am currently serving as Chairman) and deal with.their Nuclear Operations people probably more than anyone else.

However, you are involved, several of your people are involved and others.

It was my understanding when we tried to negotiate a contract between GPC and SONOPCO and amend the contract between GPC and the Joint Owners, that.I would act as OPC's (for example) agent, working for George Head, and that all interactions on nuclear j

matters between GPC and OPC would come through me with the exception of some specific, routine reports that would be i

provided directly from SONOPCO to all owners.

I am prepared to handle that.

l l

l Yet, on Friday, April 21 I received a call from John Heier stating that the SON 0PCO Project was establishing a Quarterly Review Heeting with GPC's Joint Owners to. discuss Nuclear Operations.

John asked if that meeting could replace the Joint Committee or Subcommittee.

I said no.

l

=.

e On Tuesday, April 25, Dan Smith from OPC called to say they had been contacted by John Meier and OPC wanted to know who was i

setting up this Quarterly Review Meeting, its purpose, and why I was not included.

He said Oglethorpe was confused as to what is going on and who was in charge.

While I know that there are significant differences between GPC and OPC cn a number of matters, the relationship between us in nuclear is excellent. If GPC could get a handle on SONOPCO and, if nuclear could 'be separated from these other issues, I believe Dan Smi'h and I could work out all of the problems in nuclear.

c i

2.

Communications:

On January 19, Pat Mcdonald called to say he was developing an E mail system to connect all Joint Owners -

including GPC. One of its purposes was to provide daily reports to each Joint Owner on the status of our plants. He asked me to contact Roy Barron to work out detaiIs. I did.

I On Monday, March 13 (I believe that was the date), Roy Barron told me that -the system was ready to do a test run and all he needed was to get Pat Mcdonald's approval.' I called Pat to ask for his approval but he was out of town in Florida. I asked his i

secretary to ask him if it were okay when-he called _in.

She called back on March 15 to say she had been unable to ask him.

t I talked with Pat on Tuesday, March 21, and he said the system i

wasn't ready.

=

He are_ still not connected.

I get no.information from SONOPCO on the status of ;our units. I get all of my information (except monthly summaries three weeks after the end -of the month) from

)

Oglethorpe Power. I get daily reports from them.

l Secondly, we have been limited by Pat Mcdonald to talking to only one person at the SONOPL Project - first it was Bob Gilbert, who delegated it to Hery Brown, who delegated it to Tim Marvin.

This process has worked fairly well on routine data requests but on non-routine items, it has been an impediment.

As an example I was alerted that we were to receive an update of the draft TAC report on Nuclear Operations during the week of April 10 - 14. The ~ responsibility for that report, its review, and rebuttal testimony had been assigned to me.

Art Domby had been helping me.

Early during that week,- Art called Tom Beckham and Ken McCoy and had told them that, when we received the report, we would need technical assistance - in a short time frame - in reviewing the report and in preparing for a meeting j

with the PSC.

i Friday, about noon, April 14 I received the report and Art asked me to call McCoy and Beckham to alert them we needed the j

technical assistance on Honday, April 17, and the meeting with PSC staff and consultants would be held on April 19.

My discussions with Beckham went well - he was very cooperative.

McCoy said he didn't know what I was talking about and said he hadn't talked to Domby in weeks.

Domby remembers his call because he had to have McCoy tracked down at Plant Vogtle.

__ _. _ ~ _ _ _ _ _ _ _. _.. _ _. _. -. _ _. _ _. _ _ _ _.

9 I don't know what happened in Birmingham.

I rkceived a call from Tim Marvin raising hell that Art and I had. called a Vice President. Mcdonald called a meeting.

I received a call ' from Dwight Evans who said Mcdonald was trate and 'I had been taken off the TAC report.

I was later told, though ~I can't prove it to be true, that the Vice Presidents of Georgia Power on the SONOPCO Project were told they could not talk to me or Art Dombf In Mr. Dahlberg's memo of December 27, h'e stated that the interface at Georgia Power with the Nuclear Operations group in l

Birmingham would be George Head and me (see Attachment A).

The interface we have had wi th them, except for routine data requests, has been n'agligible. In fact, it has been prohibited.

Yet. SONOPC0 Project personnel are not so inhibited.

See memo I

(Attachment 8) from Bob Gilbert dated April 20,198g. Note that j

George Head and I were not copied on the meno.

r i

In discussing the. establishment of Nuclear Operations Contract Administration, I was told that Mr. Head and I would review and approve the SONOPCO Project budget.

However, Grant Mitchell of i

Corporate and Financial Planning at SONOPCO doesn't agree.

See page 3 of memo (Attachment C) from G. Mitchell dated April 20,.

i 1989.

Neither George Head or I received a copy but it is in direct conflict with what the President of GPC has stated.

It is also in conflict with what SONOPCO agreed with the Joint f

Owners.

I also found that first paragraph on page 1 of that

{

memo interesting.

Had Georgia Power personnel sent out these two memos, SONOPCO would have raised hell.

j I

t

l

=

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3.

Interferina with other GPC Functions: When I was first named to this job, we had a meeting in which I was assigned by executive management certain responsibilities.

Since then, Mr. Mcdonald has objected to several of these assignments and I have been removed from meetings or relieved of responsibilities, not because GPC management agreed, but in order to get cooperation from $0N0PCO.

What we need is for SONOPCO to support us and cooperate with us and allow Georgia Power management the right to determine who does what.

Our management and other GPC people will.be held accountable for our regulatory affairs effort.

He need SONOPCO's support and then let us do our jobs. Unfortunately in l

several examples, Mr. Mcdonald has interjected himself into directions of other company functions and support from SON 0PCO appears to hinge on his getting his way.

4.

Staffina:

When we established NOCA. I told George Head we needed a

manager, secretary, two accountants, and two performance engineers.

He agreed to start out with one l

accountant and one performance engineer and revisit the staffing l

1evel as the work load increased.

We later added another j

accountant.

Back in January, I called Ken McCoy to ask if I could talk to Mike Barker about the performance engineer job. Mike had done a similar job for me prior to going to Birmingham and was well qualified.

Ken asked if it were a promotion.

I said I had not had the job evaluated yet and didn't know. He said if it were a promotion, SONOPCO would not object.

l

-S-l l

e O

a I had a job description done by Pertannel and it was detirmined to be a Level 13 job - one step promotion for Mike Barker. Mr.

Head approved the job description at that lev <l.

I I told George Hairston about this in the GPC cafeteria later and relayed my. conversation with McCoy, but he would not give me permission to talk to Mike Barker.

I called the Administration

~

people at SONOPCO and asked what the rules were. They said they were told if it were a promotion, management would give its permission.

After talking with George Head, we posted the job.

I selected the best three candidates and they were all from SONOPCO -

which is not surprising. Our Personnel department was told the request to interview had been approved all the way up to George Hairston.

But, there it stopped.
Later, our Personnel department was told Mr. Mcdonald would not approve the request because he didn't agree that the job level should be a 13!

Although'GPC Personnel department and a Senior Vice President at GPC had approved the position, Mr. Mcdonald has held up this request and I have not been allowed to interview these three gentlemen.

I need the expertise the performance engineer would bring and the lack of support from Mr. Mcdonald is impacting my ability to get the job done.

_ _. _.. -~-

  • s s

i l-5.

coceeration:

I served on Phase I of the SONOPCO Task Force and l

was, and an, a real supporter of the Operating Company concept.

In our discussions, Bob Busttner, an attorney with Balsh' and Bingham and now a Vice President at Alabama, said Mr. Farley was concerned that once this operating company was established, we would wind up with a group of arrogant, technically trained elitists that the operating companies would have no control over.

I now respect Mr. Farley's concern more than I did two I

years ago.

It takes one to operate - two to cooperate.

I know that most people at Georgia Power want to cooperate with SONOPC0 and want

.it to be a success *for GPC and the System. But, there are great concerns by many people.

A significant concern that a lot of people have is who does Mr.

Mcdonald work 'for.

I have heard discussions on that at high levels in the Company.

It is a very important question because the operating licenses for Hatch and Vogtle are. in GPC's name; for Farley, APC. I am not a lawyer or lic'ensing specialist, but I believe both will tell you that it is essential that GPC and APC be in control of these plants.

Oglethorpe Power is so concerned that it has formally requested confirmation that Mr.

Mcdonald receives his management direction from and reports to Mr. Dahlberg.

If that. is not the case, we are in violation of our license and could experience some significant repercussions from the NRC - including the revocation of the licenses. -

Oglethorpe is very concerned about this issue and they feel NRC is concerned. A Region II NRC employee suggested to Oglethorpe that NRC was so concerned that they might seek to put a resident I

inspector in Birmingham to see what was going on.

In establishing an Operating Company, the System, among other things, sought to open up the opportunity for us to run other utilities' power plants under contract.

He.should now be operating in that mode subject to meeting license conditions.

There are some possibilities in the industry now and we ought to be giving serious considerations to how we operate now so that, should we get through the legal hurdles and be given. permission to expand outside our service area, we will be ready to aggressively pursue these opportunities.

But, I really doubt any utility would be interested in contracting with SONOPCO if their experience with the contractor was going to be similar to Georgia Power's.

Fred, there are other issues relative to SONOPCO, important to the System, that needs to be addressed.

I have asked repeatedly for an opportunity to discuss these with senior management.

I hope we will get that opportunity soon and can work toward a more cooperative relationship with SONOPCO.

n$

M.d. Hobby k 7. /le d' i

G. F. Head

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Post offee Bon 4545 Annene. o.o,s acao2 Q88"**'t enesasen verreswer Crwf Emocupw omcw December 27, 1988 EXECUTIVE OFFICERS DIVISION VICE PRESIDENTS GENERAL OFFICE DEPARTMENT HEADS DIVISION MANAGERS As you know, Georgia Power Company's nuclear operations grou'p has been relocated to Bimingham, Alabama. We are in the process of working out the agreements with our joint owners to' establish Southern Nuclear Operating Company which, when finalized, will contract with us to operate our nuclear plants.

It is important for us to realize that while our nuclear operations may be managed in Birmingham and ultimately will be managed by a separate Southern subsidiary, Georgia Power will be held accountable by our regulatory groups, our stockholders, and the public for the operation and performance of our nuclear units. It is. essential that Georgia Power Company be involved in the operations of our units, monitor their perfomance and integrate nuclear operations goals, accountabilities, and financial planning into Georgia Power Corporate Plan.

Effective immediately, a Nuclear Operations Contract Administration Group is fomed to interface with our nuclear operations group in Bimingham. This group will report to Mr. G. F. Head, Senior Vice President, who will be responsible for all nuclear operations interactions.

Mr. M. B. Hobby, Assistant to "the Senior Executive Vice President, currently on loan to Nuclear Operations, is named General Manager Nuclear Operations Contract Administration and will report to Mr. Head.

'Your support as we move to restructure our nuclear operations group is appreciated.

Sincere' A. W. Dahlberg

/dt c: Mr. E. L. Addison Mr. J. M. Farley Mr. H. A. Franklin TAB-A

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APR 1988 intracompany Memo Received 1

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DATE: April 20, 1989 9

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Mr. J. T. Beckham Qegggogst

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f Mr. t. 8. Long f4

' Mr. C. K. McCoy Mr.~J. D. Woodard c-7, j

. Mr. J. G. Heggs-

%.h k'ng,G FROM:

R. M. Gilbert l

ASA 3

Financial Services is implementing the transitional steps required to consolidate the financial interfaces between the 50N0PC0 Project and the other Systes companies. Accordingly, we will assume responsibility for providing cash forecasting ~."sta to AnaTama PowerThTs tr ano neergia rower errective wTtE fra7Fustseis wiii require w cnanges in tne current forecasting process, but should have minimal overall impact on your area.

Phyllis McLain has coordinated the development of procedures and schedules with Alabama and Georgia, and will be responsible for compiling all nuclear related cash expenditure estimates for the 50N0PC0 Project. She will be in contact with the appropriate personnel in your area with more specific information.

If you have any questions, please call me at extension 5750.

RMG:df cc: Messrs. J. M. Farley Alabama Power R. P. Mcdonald T. J. Bowden W. G. Mairston W. B. Mutchins C. D. McCrary W. L. Salth J. D. Meter D. M. Crowe Georcia Power R. 5. Fucich W. Y. Jobe B. E. Hunt R.J.Pershing/

C. P. Stinespring C. 0. Rawlins C. L. Whatley C. G. Mitchell Ms. P. J. McLain l

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SUBJECT:

Meeting Notes of April 14th 23 DATE:

April 20, 1989 4

g FR0H:

C'. Grant Mitchell l

8 1.

1 T0:

Mr. Larry Cook

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I Mr. Jeff Wallace

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3elow are some notes on topics we discussed in our meeting of April 14th:

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GPC was informed of the following proposed budget assumptions with 1

regard to $0N0PCO:

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$0N0PC0.will be incorporated by January 1990.

The operating license will be obtained and the plant employees'will become 50N0PC0 employees in Jangry 1991.

50N0PC0 must have a means of identifying SCS charges included in budget and actual data to respond to requests form GPSC and others.

j Meeting / discussion notes will need to be kept to show GPC's involvement in the budget process in order to satisfy the GPSC 4

j that GPC had input.

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50N0PC0 must be able to respond to GPC and GPSC's request j

F regarding number of employees, salaries and SCS charges budgeted by month.

d 4-50N0PC0 must maintain good work papers in support of budget development in order to support audit requirements.

There will be no problem with $0N0PC0 providing GPC with total 4

budget expenditures instead of split between labor and other j

expenses.

4 s

GPC will only require that 50N0PC0 provide monthly spreads for the 1ast three forecast years as cperations and maintenance, not by 4

FERC.

I If 50N0PC0 does not budget to the 729 series clearing account GPC' will not be able to provide responsibility reports at this level.

If 50N0PC0 does not pudget at this level, instructions should be l

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1 provided not to charge actuals to the 729 series accounts.

i 50N0PC0 must coordinate with GPC regarding assumptions that are to be used in developing budgets for Pensions, other Employee

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Larry Cook, et a'l je 2 ell 20, 198g 50N0PC0 exists $0N0PC0 inc 1

not exist - GK includes in Benefits and Payroll Taxes. Whenin their b is k to ensure that capital laborep their budget developatit.

50N0PC0 must work with Larry Coo included in the GPC responsibility rences that d as labor.

f budget data will not be identifie f

GPC was made aware of some dif er uclear 08M for the expenses between APC and GK:

APC charges office building rent to nharge Farley project group, whereas GPC cl to nuclea APC charges employee physica se hese to A&G.

to A&G.

t of rent Larry was informed that the treatmen Larry Cook said that he woul I

GM could c.hange. f a Joint Owner Agreement.

$0N0PC0 was incurring to ensure h the could be because o h ges were being identified throug Cook said that he would re GPC was informed of the effort that all nuclear related c ar bA and f.A sob work orders. Larryb and info ill only have'one budget at the use of these special, su s responsibility budget and a Items not previously GPC informed that departments w functional budget for each departmen.ib 50N0PC0, i.e., there will not be a t

included in a department's respons bles if SON 0PCO submits GPC said that it will not pose a prolabor rather h

budgets that include a full mont s d Repair Shop (Forest Park) payperiod basis.

t charged to individual RCNs GPC said that General Repair Shop an l RCN in the 1990 budget.

charges which were previously no both fixed and variable co should be budgeted to individua jects-GPC is going to recommend thatbilled to If this proposal is adopted. the pro to their individual RCN 4

ing the GPC helicopter.

would need to budget both fixed an the usage of the GPC helicopter g

d to 50N0PC0 by SCS with the 1990 budget.

After 50N0K0 is incorporated usage o SONOPC0 employees will be bille s

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1 Mr. t.arry Cook, et a1 Page 3 April 20, 1989 i

include both fixed and variable cost. I recommend that these i

charges be budgeted by the project in 1990 and the plants i

beginning in 1991 and that a mechanism be put in place so that if 50N0PC0 is not incorporated in 1990, APC and CPC will be able to J

identify these charges as 30N0PC0.

GPC did not budget PPP for 1989; accrual of PPP is at the corporate level and all included in A&G. Payout will not be 4

charged against individual RCN although it will be functionalised.

GPC will probably budget fixed portion of PPP in 1990; departments.

j will be instructed to include base adjustments.

J GPC was informed that 50NOPC0 may want.to budget and accrue their own PPP to the functional account at an executive level. 'They I

were asked if they perceived this as a problem - they are to let l

me know, GPC is reviewing the GPC departments that will continue to charge to the nuclear accounts. Larry Cook is to provide as with a list j

of these departments after it is developed.

l 1

Jeff Wallace asked me what Marvin Hobby's role would be in the budget process. I told Jeff that we were intending to submit budgets to Mr. Rick Pershing and that we had not been given any instructions otherwise.

In summary, the following items were discussed:

Budget assumptions re 50N0PC0's incorporation and obtaining the operating license.

Importance of retaining identity of SCS charges.

v_-

Details required to respond to requests.

T-Budgeted labor will not be required by FERC.

Monthly spreads for the last three forecast years.

The 729 clearing account will not be used beginning 1990.

Coordination between 50N0PC0 and GPC will be required re budgeting Pensions. Other Employee Benefits 'and Payroll Taxes in the 1~90 budget process.

Differences that exists in recording of expenses between APC and GPC.

Usage of the DA and EA subs.

Departments will not have two budgets, i.e.,

responsibility and functional.

$0N0PC0 will accrue its own labor accrua1.

(

Treatment of GPC and SCS aircraft charges.

Treatment of PPP by GPC and proposed treatment by $0N0PC0.

inaV-o g. o u s t

so.

Mr. Larry Cook, et al Page 4 April 20,1989 Non Nuclear departments at GPC continuing to charge Nuclear 0&M.

Marvin t'abby's role in 50N0PC0's budget process.

As you are able to respond to any of the above "open' items, please provide me with response. Should you have any consents or questions concerning these notes, please call.

C. Grant Mitchell CC: Mr. Bob Gilbert Mr. Paul Brashier Mr. Mary Brown Mr. Charles Rucker FILE:

BUD 1.1.92 suo 1.3 31 O

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Interoffice Corre:pondence

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i May 15, 1989 DATE:

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l F. D. Williams FncM:

l In response to your quoetione in your letter of April te, 1949, I have the following reply.-

Mr. R. P. Mcdonald reporte to A. W. Dahlberg for operation I have and support activitiae of Plante Yostle and Matc chart showing the reporting.

i Mr. Mcdonald.

Mr. J. M. Farley Executive Vice President - Muclear, provides services relating to the anticipated tr These company to the Southern Nuclear Operating Company.

services include the compliance with applicable regulatory requiremente and for.nucisar support on an industry besie.

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4 ? 1 aeoro.a o.or cwww n 333 P90m0Pt Awe *'.9 r Atlanta Geerg a JC306 i Tetepnone dN !26@ h" Manteg Acoress Post Oft <e Ben 4545 Atlanta. Georgia 30302 M GeorgiaPower ,.,.-,rm...- i Vice Pressoent l Sulk PDwer Markets February 2, 1990 1' Mr. Marvin B. Hobby 333 Piedmont 14th Floor As a result of a management review of our organization, your position as General

Manager, Nuclear Operation Contract Administration and Assistant.To, has been eliminated.

In connection with the elimination of your position, a program.has been established in order to recognize your valuable service with the Company over the years and to minimize any financial hardship which you may have to encounter as a result of the elimination of your position. After April 2,1990, you will no longer be required to perform any services for the Company. You will have the opportunity to elect to receive benefits under the program, if you agree to sign an agreement containing a release and settlement concerning the elimination of your position within the Company. The benefits will consist of the following: 1. A severance pay benefit equal to four (4) weeks' straight time pay plus one week's straight time pay for each year of system service, based upon your regular rate of pay in effect on the day before your separation notice date. The benefit will be paid in a ' lump sum, or twelve (12) equal monthly installments, depending upon your selection. The lump sua payment will be made as soon as 1 practical but not later than thirty (30) days after your termination date. 2. You will also receive an amount equal to the employer and employee cost of your group medical and group life insurance. This benefit will cover the cost for six (6) months of insurance coverage. The benefit will be based on the amount of coverage and number of covered dependents currently in effect.. This benefit will be paid in a lump

sum, or in twelve (12) monthly installments, depending upon your selection.

The lump sua payment will be made as soon as practical, but no later than thirty (30) days after your termination date. k'

e i n t 1 Mr. M. B. Hobby February 2, 1990 Page 2 i ) In order to receive the two benefits above, you must elect the benefits by signing an agreement containing a release and settlement relating to the elimination of your position no later j than March 16, 1990. O Fred D. Williams l 4 ( l

T I TROUT M AN. S..ANDERS L..OC.KE..RM AN.1.,..A..S.HMORC 4 2 a.i t o n u t v s A t saw m ) c.= ossa e m o.=c. svies...e ... ee.c...es...sc.. < .. :. e.. c......... 1

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....... e... .....'.'.".'!%2 'Z'.... February 20, 1990 g Richard Goddard, Esquire Regional Counsel Nuclear Regulatory Commission VIA HAND DELIVERY Region II Suite 3100 101 Marietta Street, Atlanta, Georgia 30323

Dear Mr. Goddard:

I This letter is to inform you of the existence of a charge we have been told has been filed against our client, Georgia Power Georgia Power Company, under the Energy Reorganization Act. d . Company has been advised by the law firm of Kohn, Kohn an Colapinto that Marvin Hobby filed a charge with the Department Labor on February 6, 1990, but no one within the company or this law firm has yet seen the charge. On February 1, 1990, Mr. R.P. Mcdonald advised Regional Administrator Stuart Ebneter that he had learned Hobby's lawyers claimed Hobby was being discharged in retaliation for aHobby's counsel regulatory concern he allegedly raised in 1989.has alleg 27, 1989, but Georgia Power Company does not have a copy of the alleged Hobby's former Georgia Power Company superior recently asked him to provide a copy of the alleged memos but-Ho meno. f ailed to provide a copy of the memo to the Company after being he did not. have one. requested to do so. Mr. Mcdonald told Mr. Ebneter he would keep him apprised of developments in Hobby's allegations, but there is little more to i I will send you a copy of the DOL charge report at this time. In the meantime, if I can be of further after I receive it. assistance, please do not hesitate to ist me know. 4 I v

ly you s, j

)huc A I J.s e P. Schaudi Jr. ( JPSJr./sm Mr. Stuart Ebneter 1 ~-

I e 202462414518 4 TROUTRAN. S RS* v 5-4-80 i 4:17PN i J NT FC/LL ] TRou f MAN. SANDERS. LOCKERMAN & *ASHMORE a ese. wee.

  1. ave ma ese'ess *=a. t 6**se LAW AT T o R N sT s AT J

Ca=965. Swe60*=&. Sa.iTC sees ... ease...es e. esse... ...,seoe4ess,......ece l v.AMA. StoeGia 303c3 ea o sea.ess.eese j .ssst e s==avoiss.se ese ele 9689 see.s mese**o ......... a I l March 16, 1990 Richard Goddard, Esquire Regional Counsel Nuclear Regulatory Commission Region II Suite 3100 1 101 Marietta Street, Atlanta, Georgia 30323 Claim by Marvin Bobby Ret Dear Mr. Goddardt Georgia Power Company received this week a copy of the two As I believe you Complaints I have enclosed f or your review. know, Marvir. F.obby is a f ormer employee of Georgia Power Compan ) (2) this While the Complaints appear to have been filed sometime ago, Thus, I had been week was our first opportunity te review them. asked by d ther. to you for your review. If there is any way we can be of assistance to the NRC in t me. this regard, I hope you will not hesitate to contac l / Ve - l ly yours, 7 )'.I W / Je se P. Schaudies, J'r. JPSJr./sm Enclosures Mr. R.P. Mcdonald cc Mr. W. George Hairston 1 l

i 1 T BY:F0/LL J-4-80 1 4:18PN i TROUTNAN, SA. iR5* 202452414518 6 i TROUTMAN, SANDERS, LOCKERMAN &,ASHMORE , u.,.s.s... <ws a,m en e AT T O R N E Y s AT LAW t c.. ns. eve...... wits a ,,,...e 4 i n oss se..uois...,.. at w ar.econoa noses ie ..ne... . et. i ....ese.e.oo es..ese. e a .....e... May 4, 1990 j 1 i i Richard Goddard, Esquire + United States Nuclear Regulatory Commission Region II Suite 3100 VIA HAND DELIVERY 101 Marietta Street 1 Atlanta, Georgia 30323 l Res Marvin B. Hobby v. Georgia Power Company case No. 90-ERA-30 1

Dear Mr. Goddard:

I have previously supplied you with copies of Mr. Hobby's Complaint and the DOL Determination in the above-captioned matter. As I believe you know Mr. Hobby has alleged that he e raised a regulatory concern in a memorandum of April 27, 1989. Just this week, I have received, for the first time, a copy of all eight (8) pages of the alleged memorandum. I have endeavored to obtain from Mr. Hobby's counsel copies of the attachments that are referenced in the memorandum, but those have not been forthcoming. Mr. Mcdonald has asked that I forward the memorandum to you without waiting any longer for the attachments. ] If there is any way I can be of further assistance, please do not hesitate to let me know. i i Ve t/

ours, ChP% 4 Je P. Schaudie, Jr.

JPSJr./sm Enclosure rrt Mr. R.P. Mcdonald (without enclosure) (VIA PAX)

. - _ ~ 9 e i e TROUTMAN, S..AND.ERS. L.O.C..KERMAN &.ASHMORE AT T O R N EY s AT LAW Chasetta SpeLOtsee, Suttt seco 4,7 #8ACestegg etet tT, as.t. ATLANTA. GCOfHkA 30303.sseo

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40488833000 eDe.ess.gesa cae6C emess'.O ,... a na... e.... i f May 7, 1990 .~ Richard Goddard, Esquire (. Gi United States Nuclear Regulatory Commission Region II Suite 3100 VIA HAND DELIVERY 101 Marietta Street Atlanta, Georgia 30323 Re Marvin B. Bobby v. Georgia Power Company Case No. 90-ERA-30 Dear Mr. Goddard Enclosed please find copies of three (3) documents that Mr. Hobby's counsel has provided. He has said these were attached to the April 27, 1989, memo. These were received in my office yesterday via FAX, and I have been asked to provide them to you. Very i

yours, A.

Je se P. Schaudies Jr. JPSJr./sm Enclosures cc: Mr. R.P. Mcdonald (with enclosures)

l l / i l U.S Department of Labor Ea**rmaat stannare ammesuremen Wege and Hour DeWinton 1875 Posenerse stroot. N.E. I Atlanta. Georgla 30387 j l May 25, 1990 Mr. Marvin Hobby 925 Melody Lane Roswell, GA 30075 Mr. Michael E. Kohn Kohn, Kohn & Colapinto, P. C. 517 Florida Avenue, N.W. Washington, DC 20001 In the Matter of: Marvin B. Hobby v. Georcia Power Company I l Case No. 90-ERA-30 i SOL Case No. 90-10455

Dear Messrs. Hobby and Kohn:

i This letter is to notify you of the results of our compliance review pursuant to the Court's Order of May 7, 1990. As part of i I this review, by letters dated May 9, 1990, we notified each party to provide this office any additionaitl information or material by 5 p.m. on May 18, 1990. By letters dated May 18, 1990, the j attorneys for each party submitted additional information including depositions and other documents. We hereby amend our March 26, 1990 findings notification letter to the extent indicated as follows. Based upon the information made available to us, Mr. Hobby's job was eliminated due to a management reorganization, and management's decisions concerning the reorganization were made without knowledge or consideration of Mr. Hobby's engagement in protected activities. A copy of this letter is being forwarded to Administrative Law Judge Joel Williams. Very truly yours, Daniel W. Bremer l District Director ~ cc: Mr. Joel Williams Administrative Law Judge Office of Administrative Law Judges U. S. Department of Labor 1111 20th Street, N.W., Suite 700 1 Washington, DC 20036 i

l o u s t Mr. Jesse P. Schaudies, Jr. l Troutman, Sanders, I.ackerman & Ashmore Candler Building, Suite 1400-l 127 Peachtree Street, N.E. t Atlanta, GA 30303-1810 Nuclear Regulatory Commission office of Enforcement Washington, DC 20555 Mr. A. William Dalberg. President & CEO Georgia Power Company 333 Piedmont Avenue, N.E. Atlanta, GA 30308 1 ) l i l l l 9 2 i i

s ? ' p aseg Westrao states / ' NUCLEAR REGULATORY COMMISSION )# * 'J h y neosons il

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i,.\\, s g tes anAnserTA synesT.wm. Art.Anva.osomosA sons: .j g AM 211990 .3 i g -M Georgia Power Company .4,? g *@@ ATTN: Mr. R. P. Mcdonald 9 Executive Vice President N-Nuclear Operations 40 Inverness Center Parkway Post Office Box 1295 Birmingham, Alabama 35201 Gentlemen:

SUBJECT:

MARVIN B. HOBBY v. GEORGIA POWER COMPANY (UDL CASE NO. 90-ERA-30) This letter responds to your letter dated May 17, 1990, which provided a response to our request for information regarding the basis for the employment action involving a former Georgia Power Company- (GPC) employee who alleged to the Department of Labor (DOL) that his position was eliminated because he had raised safety concerns while performing his duties at GPC. Our request, which was sent by letter dated April 18, 1990, to Mr. W. G. Hairston, III, was based upon the findings of the DOL Acting District Director who documented his findings in a letter dated March 26, 1990. Those findings indicated that the former employee was "...a protected empicyee engaging in protected activity within the scope of the Energy Reorganization Act of 1974 and discrimination as defined and prohibited by the statute was a factor in the action which comprise his complaint." Based on additional information, D0L has subsequently amended their initial finding and concluded in a letter dated May 25, 1990, that the former employee's position "...was eliminated due to a management reorganization, and management's decisions concerning the reor-ganization were made without knowledge or consideration of [the individual's] engagement in protected activities," Based on the current pending status of this matter.before DOL Administrctive Law Judge J. Williams, we concur with your request to defer further discussion of the merits of the discrimination allegation until completion Bf the DOL process. In accordance with 10 CFR 2.790 of the NRC's " Rules of Practice," a copy of this letter will be placed in the NRC Public Document Room. Sincerely, [ S . Ebnete egional Administrator \\ (

1 s i POLICIES AND PRACTICES FOR EMPIDYEE CONCERNS - THE SOUTHERN COMPANY The Smaharn Style Teamwork "We communicate openly and value honesty. We listen. We respect all opmions and expect differing viewpomts as we work tc,,Js toward common goals." (TAB A) Vogtle/ Hatch Officer Highlights - "I will specifically highlight the teamwork behavior with particular emphasis on rMag all opinions and expecting differing viewpoints." " Sharing of information is imperative to succeed." (TAB B) GEORGIA POWER COMPANY cada of Ethics " Truth - the internal and external reporting and exchange ofinformation is a critical part of the conduct of our business." (TAB C) Corporate GniMinac - Corporate Concerns Program (Atlanta) (TAB D) Quality Concerns Programs - Vogtle & Hatch (TAB E) NRC Inspection Report 95-14 (Vogtle) and 95-12 (Hatch), June 22,1995 Vogtle Concerns Brochure Hatch Initial Training Documentation Vogtle General Employee Retraining Plant Newsletter Articles Communication with Nuclear Employees (TAB F) May 11,1994 W. G. Hairston, III Letter May 11,1994 J. D. Woodard Talking Paper January 1,1991 W. B. Shipman (Vogtle) letter i SOUTHERN NUCLEAR OPERATING COMPANY t Employee Concems Program (Birmingham) (TAB G) Guidelines Procedure Brochure Newsletter Articles ) Correspondence with SNC Employees

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l l l i America's Best Diversified Utility 's..T' T* *"."*.V. J M ~ -we It nicans that our target is not limited to just the The core business will continue to be our dominant Southeast - that we truly intend to.be " America's business for the foreseeable future, although it will be l Best." It also means we will be involved in areas threatened by additional competitors. We will defend j beyond our traditional business. We will not attempt this market by continuing to drive down cost and things we are not qualified to do. But we can diver-drive up customer satisfaction. We will maintain and f sify geographically - even beyond the United States, increase our market share through price leadership. as we have already shown. Artd we can enter certain other utility businesses in which we have expertise. While defending our core business, we will seek growth through our unregulated businesses. Inter-Clearly, we will remain a utility. Specifically, we will nationally, we will continue to seek attractive proj-be in four major businesses: ccts with saperior financial results. . The core business - our electric operating compa- ,, gg; g g g 8 nies' core business by aggressively seekiri

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that evolve with changing regulatmr = The domestic power generation and power mar-We Will eXP ore major new utility business opportu-l keting business - also SEl.

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nities. Expansion of our core business and expan-future business units. si n into other utility services will provide ~a growth opportunity for us. i l i ) (10 be deterrmned) Of Success = -l (To be determmed) We will be m the best quartile of all meanmgful (U#*P C5 ""# I I 7 wdh a view toward the top Our goals ~ measures will likely thange from year to year. Oui 1995 and 14 ave lowest cost among all competitors l intermediate goals and our Bold Aggressive Goals Reduce overheads by 25% l are bemg developed by task forces Achieve prodqctivity increases equal to or greater than mflation every year (or at least 5%) y ~ Reduce iriciclhental capital per kilowatt served to l Best quartile in~ financial performance f cunent W Best quartine in customer satisfaction increase nonme Mess to m of canungs by l Best quartile m (ost performance 2W j Have major,new business by 2000 ~ } x 1 a j i

~ i Intracompany correspondence Southern Nuclear Operating Company A i i I DATE: June 25, 1993 L TO: All Corporate Employees FRON: W. G. Hairston, III 4 RE: Southern Nuclear Concerns Program The Southern Nuclear Concerns Program is available to the company's employees and its contractors. If you have concerns related to nuclear safety, possible violations of law, unethical actions, or other work ~related problems, you are encouraged to resolve such concerns or problems as soon as possible with your supervisor or Southern Nuclear management i representative, if you are a contractor. Where efforts to resolve your fail or where you believe it is inappropriate to bring a concern concerns to your management, the Concerns Program should be used. i The Concerns Program is in no way intended to affect an individual's right j to pursue a concern through governmental / regulatory authorities such as the U.S. Nuclear Regulatory Commission (NRC), the Department of Labor, i Equal Employment Opportunity Commission (EEOC) or Occupational Safety and 1 Health Administration (OSHA). The Corporate Concerns Program Administrator Mike Snowden, will facilitate the process for resolution of a concern,at the corporate level. ( After initial review, the Program Administrator will refer the concern to j the appropriate management level employee for investigation. The management individual responsible for the investigation will make a report to the Concerns Program Administrator upon completion. of the investigation. The Concerns Program Administrator is responsible for determining whether the response is timely and complete and for 1 communication of a response to the submitter. The Concerns Program 1 Administrator will work with the involved manager to ensure proper closure of the concern with the submitter. ' Every effort will be made to provide a to the individual submitting the concern within 20 working days. response Confidentiality will be maintained to the extent practical. Concerns may i be submitted anonymously, however, anonymity precludes feedback to the submitter. As President, I will periodically review a summary of concerns submitted i to the Concerns Program Administrator. The Corporate Compliance Officer is responsible for auditing the overall Concerns Program annually. j s 4 a

J You may contact the Concerns Program Administrator at the following numbers or you may submit your concern in writing: Mike Snowden, Corporate Concerns Program Administrator Hugh Bryant, Corporate Concerns Program Coordinator Bin 8011 Tol l ' f ree......................... 1-800-222-4496 Corporate extension................ 8-821-5941 These phones are not equipped to reveal the identity of the caller. It is important that this program work effectively if we are to continue ~' our success at Southern Nuclear. Retaliation against anyone submitting a i concern will not be tolerated. Any employee, including supervisor, manager, or officer, who retaliates against or penalizes an individual in any way for submitting a concern will be subject to disciplinary action, up to and including termination of employment. Your continuing support is appreciated. w..J.!4 3 2 W. G. Hairston, III jus 9793 ~ G

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~ o . s s r i 1 POINTS TO HIGHLIGHT FOR i SOUTHERN STYLE / PRINCIPLES OF NUCLEAR OPERATIONS 1 i Talkins Pants fortheSouthern krie: 1 1, Fenphemw my personal cornenernant to act, make daei=ia== and treat others in accordance j i with the Principles of'Ibe Southern Style. 2. I will challenge the plant employees to understand The Southern Style, accept e_.liip of j it and make the same level of comnutment that I am making 3. I will challenge f.c d to give me fdhar+ of my performance as it relates to "Ibe Southern Style. l 4. I also plan on using the Denms Kravetz study to highhght the i L..a mic~==ae of 1 The Southern Style ofleaderslup. I will give specific examples from that study of the ] success stones withm ihe Southern Company 5. I.will --~a-ny lughhshe the teamwork behavior with ,/_c on respectag all I apunons and expectag difienng newpomes. ce*iaa versus turf. l 6. I will share the desire for our :-- to be highly prh. employees who also have strong people skills. These two charactenstics are the keys to =neca== in *Ihe Southern l

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Talkins Points for the N,rs.sg 1. In order for us to be Amenca's Best Nuclear Operations, we must be successful at using "Ihe Southern Style. 2. I will arnph==iw the day to<isy need for conservative riar==ian makmg when dealms with safety issues. 3. In order to be teaa -64 it is neccesary to have a passion for <=iani=ie improvement. We will annanne our " lessons Imarned" approach. 4. I will explain the importance of - ;- '-;-- a daily problem focus in order to have an --11arit operstmg record, as well as a long term consideraten in solving problems. 5. I will challenge people to have personal =ca~'* hi i'y for everythmg they do. l Ken McCoy Vice President e Vogtle Project J sostyle. doc 9/14/95 1

s l The Southern Style l Ethical Behavior We tell the truth. We keep our promises. We deal fairly with everyone. Customer First Our business is customer satisfaction. We will think like customers... i Shareholder Value and act like owners. We work to 1 increase the value of our investment. I Great Place to Work We are a first-name company. We enjoy our work and celebrate our successes. We seek opportunities to learn. We do not compromise safety and health. l Teamwork We communicate openly and value honesty. We listen. We respect all opinions and expect differing viewpoints as we work together toward connon goals. We emphasize cooperation -- not turf. Superior Performance We continue to set high goals for ourselves. I We take personal responsibility for success. We act with speed, decisiveness, and individual initiative to solve problems. We use change as a competitive advantage. Citizenship We are committed to the environment and to the communities we serve. l l Southern Companyb l

= a POINTS TO HIGHLIGHT FOR SOUTHERN STYLE / PRINCIPLES OF NUCLEAR OPERATIONS SOUTHERN STYLE E11DCAL BEHAVIOR =

1. Have sunple, basic rules.
2. Don't snake pronuses we don't intend to keep.
3. "Fairty" doesn't mean smag people everything they want.

. CUSTOMER FIRST

1. The a=a-ar wants inerpansive power and the most for the e4 -

SHAREHOLDER VALUE

1. We are 6duciary agents for our shareholders.
2. Shareholders will move theirinv-emense for penntaluiny.
3. Wemustalwaysactlikeowners CREATPLACE TO WORK e
1. Respect is=== mal
2. Celebrate our====ames, all are imponant. Exaumpic: The HP Banana Award which began as a manager smag an asuployee a benana tem his lunch for ajob well done. This is now one of the moet prestigious awards the Company gives.

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3. f'a-e== to grow.

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4. The Pnacaples dar====* adequately covers our====*===t to safety / health of our pubhcs.

e TEAMWORK

1. Reference the 7,4 dar==nne
2. Avoid the turf" mode.
3. Wewillsucceedorfailtogether I

l SUPERIOR PERFORMANCE

1. A direct mesh between the Southern Style and the Tii Q,;w daan= ant 1
2. Our goals must eh='"=a us.
3. Proactive change ensures competiuveness.

CITIZENSHIP

1. We must protect / enhance the emironment.
2. Our plants are Wildlife Habitats.
3. Be supportive ofour communities.

. ~... = ~ .~. . e i PODmi PAPER Page 2 PRINC1PLES e SAFETY

1. Everyone's E,-~ - " "'i.
2. Important toyour famdy/rampany.
3. Operatson of ogspment is a safety priority.

CONTINUOUSIMPROVEMENT

1. Operation of the plaats regeres naah===== anannaan
2. Snaphfy when pasrihaa to acrn-phah the task.
3. Shanag ofinformance is imperative to secomed.

PROBLEM POCUS

1. Nuclear plaats are da==ading facihnar with pasa=h=1 for probleans.
2. Be cost effective in sesohmons.
3. Pnoritizanon is a key ah===* in resolving problems.
4. Atleanoa to detads is a mast.

RESPONSIBILITY AND ACCOUNTABILITY

1. Everyone anst participate and work together.
2. Speed, an=phedy, self raandanna and different talents are key alananne
3. Hold yourself mar=====hla to be your best for you and the t'ampany.

1 Tom Beckham Vice President Hatch Project i k 4 4 b l

e i;.l T~~ Cri::l Eth :: plier or customer to take any political ac-tion that is inwnsistent with his personal beliefs < Conffid of Interest Every employee should avoid any activity in which his or her per-sonal interests are at odds with the com-pany's interests. As employees, we must exhibit at all times loyalty to our company. Engaging in any activity that dilutes employees' attention or loyalty to their careers and the cornpany. even if only in appearance. constitutes a conflict of in- "This Company will not '"'est nd c nn t be allowed to continue wrong anyone intentionally Safe and Responsible Marior Competent if by Chance it commits and safe performance on the lob is part of every employce's daily duty. In the interest a Wrong. it will right it of the safety and well being of ourselves. Voluntar.ly.. i _,m.,,,. our fellow wor kers and our customers. we will be carelu! and responsible. Included in this is employees' responsibility to keep themselves while at work totally free from the influence of alcoholic beverages and at all times totally free from the influence of illegal drugs. "This Company will not wrong anyone intentionally. If by chance it commits a wrong. it will right it voluntarily:' iw.. ~.. m

l C GlEish are wholeheartedly dedicated to pro-Fairness Above all else. It is ourintention 'itulh The internal and external reporting ng our servicein an ethical manner so i all who interact with us-our custom-to trer.t everyone in a fair and equitable and exchange of information is a critical our employees. our shareholders, our manner. No action of the company will be part of the conduct of our business. We ulators, our suppliers and our competi' undertaken that does not meet this test. will be complete. candid and accurate in i as wellas the public at large-can No person representing Georgia Power our internal and external communication .t the company to deal with them in an shall take unfair advantage of any custom-and take all practical steps to ensure that test and open mannerin all er. employee. or representative of any con-reliable information is provided by this isactions. cern with which we do business. Further-company. The commitment to honesty and inte9-more, we will display dignity and courtesy at Georgia Power goes back to our in business dealings with those inside and Business Re!alionships Alldecisions made liest history as a company. It is reflected outside the company. on behalf of Georgia power are to be made hespeechesof Preston Arkwright,the An organization this size must have in the best interest of the company. its opany's first president. In a speech in numerous policies and procedures to customers. its shareholders and the public

  • 2 he said. " Men iri business should not ensure as nearly as possible consistent at large. Thus the acceptance in a business
et that their character and self-respect business behavior. In no case. however.

context of gifts. loans. entertainment. per-investedin the enterprise as wellas should a policy or procedure of the com-sonal favors or anything that would in-er money and tl eir work. Their reputa-pany be used as an excuse for treating an fluence a business decision. or appear to i for moral character. In addition to the employee. customer or shareholder in an influence a business decision. must be sonal happines it brings. has for them unfair manner. Common sense and our avoided. Since our families have enor-istinct commercial value. We have an sense of ethics should prevail. mous influence over us, it is necessary that n greater need than men generally for family members also avoid such com-rict adherence to moral principles:' On Resources The resources of the company. promising situations. l ither occasion Arkwright noted. "This including its money. Its property and the We will not makeillegalpayments. npany willnot wrong anyoneinten-time and talent of its employees, are to be whether as money, services or other con-ially. ll by chance it commits a wrong-used for ccnducting our business and siderations. to persons to influence their ill right it voluntarily:' meeting the needs of those we serve. actions regarding the company. Following this long-standing manage-These resources are to be handled pru-nt philosophy. we must have the con-dently by those to whom they are en-Ims and Regulation The company and its i nce and courage to recognize our duty trusted. They most certainly are not to be officials. employees and representatives sur customers our employees and the diverted to the personal use of any of us. willobey alllaws and regulations. nmunities we serve. Thissummaryof thecharacterof the Information We have a great deal of infor-Po!ilics Employees should feel free to per-npany is for the guidance of those lust mation available to us about the company. sonally support political activities as iing the company. to remind ourselves its customers. its employees, its sharehold-citizens of a free nation. Ilowever, it is in heimportance of our most important ers and its business transactions. All who some cases illegal for the company to sup- , ource-our integrity-and so that the have dealings with Georgia Power should port political candidates. No company sons for many of our policies based on know that we will not use this information asset can be used to support any political 2 code of ethics will be understood. for any purpose except that for which it candidate. Furthermore. no officialof the was developed or given. Company shall coerce any employee. sup. O

Corp' orate Guidelines Georgia Pn ver A SUBJECT NO. 1.3.2 CORPORATE CONCERNS PROGRAM REVISION 12-18-89 PAGE 1 of 2 t POLICY: It is the Company's policy to. provide a means.for employees.to express concerns without fear of l retaliation. I. GENERAL Any matter of concern to the employee may be presented to management or the Corporate Concerns office at any time; however, concerns should be made known to immediate supervisors as soon as is reasonably possible. The Company will not permit retaliation against any employee who uses this program to pursue any matter of concern. All supervisors, foremen, managers and officers of the Company will be receptive and responsive to employee concerns.. This policy is applicable to all exempt, non-exempt, and covered

  • employees of the Company and shall be administered by the Manager, Corporate Concerns.

As necessary, Corporate Concerns will also coordinate concerns with other affected organizations (such as Equal Opport' unity, etc.). Covered employees are encouraged to utilize the contract agreement for addressing issues relating to the terms and conditions of their employment. II. SPECIFIC STEPS A. Ordinarily, an employee will first discuss any matter of. concern with his/her immediate supervisor. B. If the employee is not satisfied with the results of Step A, the supervisor will arrange for the employee to discuss the concern with his/her respective vice president. C. If an employee feels it is necessary, Step A can be skipped, and the concern taken directly to the vice president. D. If, after discussing the concern with the vice president, the employee is not satisfied, the vice president.will arrange for the employee to pursue the matter with the Manager, Corporate l Concerns. l E.,If the employee is unable to get an appointment at any level, he/she should call the Corporate Concerns Program directly. ca

1 \\ i Corporate Guidelines GeorpaPower A SUBJECT NO. 1.3.2 I i CORPORATE CONCERNS PROGRAM REVISloN 12-18-897 l PAGE 2 of 2 l T. If an employee feels it is necessary, Steps A and/or C may be skipped, and the concern taken directly to the Corporate Concerns Program, ~ either anonymously or in confidence. 4 Presi W Chief Executive Officer l I l l O i ts

j l r-m I A place to bring concerns 'Everyone has an obligation not to stand idly by when things happen that will hurt the Company and its employees or customers l cays Lee Glenn, manager of the Corporate Concerns program. 'We will not allow an employee to suffer because of submitting a concern! n. a Tthat no employees believe that '$4 he new Corporate Concerns program was created to ensure g.,. e 9f 'l \\ their concerns are not answered-J(P :f i of that their supervisors are acting r" i unethically with the blessing of up;>er management. Lee Glenn, manager of cor-W/' i,'s - potate concerns, headed the Quality Concerns program at Vogtle from September 1984 S $$cl.hg pg through February 1987. "Al-though it is based on the Quality

ggg, Concerns program at Vogtle-p-

which has addressed nearly 3,000 ~ %y'. issues-this is a much broader ( ".ib,. y program. The Vogtle program

  • 1%).jgi-(.3 focuses on technical and quality

.W/: ?-- .yy., j issues in a very tightly regulated '.s.X 4 encironment. The Corporate ?

.
d j -

Concerns program is opemng tn.

1. ;.;;-

.w door to the full gamut of employ-4Ng."a'N 'g.qN.q' l0 ee concerns:' '54 The Corporate Concerns .blM. @[; program is part of a re-emphasis

e Q' :%.,

4 on ethical behavior, the basis c f .Wu w .(,J,fy'$ which is summed up in the code of ethics. But, Glenn says, a - 3;.<g@v. 4 3..b e: g'k,4.. r ,g, code of ethics and the Corporate l'. M d b' MM1M 'b Concerns ptogram only set a standard and show management M iWF commitment to ethical behavior. 0) t "This company has depended and always will depend on indivi-duals to have high standards and live up to them. They should not allow themsehes to slip, and if they see unethical behavior, they should have enough pride in their jobs and the Company not to let it go untended ** he says. If employees question actions they

believe to be unethical and do vide a service to employees and addressed and we could reassure i not get satisfactory answers, they supervisors-to bridge the com-I the employee that everything was can take their concerns to the munications gap to deal with ' okav"says Glenn, i Corporate Concerns program. concerns that cannot be address-There were also many calls The time to contact Cor-ed through normal channels from emplovees who identified porate Concerns is after trying in the Quality Concerns pro-situations that did require correc-every avenue possible withm your gram at Vogtle, Glenn says, many rive actien. "I would say that less j own organization, Glenn says. of the concerns came from people than 5 percent of the concerns we j "The vast majority of problems who saw substandard work done, saw at Vogtle were malicious in ~ should be handled between then moved to another area and intent-with someone using the supervisors and the people they didn't know whether the problem proi; ram as a way to achieve his i supervise. Most problems don't had been fixed. "More than 80 own ends or attack someone he l require a separate department to percent of the time we'd find the disagreed with:' j deal with them. My role is to pro-problem had been properly Glenn expects the response to the Corporate Concerns pro- '2"E't.;I h,.M'.f%y%.4.hff,f.T gram uill be similar-that most .,. e twe,~e. Mw calls will be trom people whose +.. c' / concerns are based on limited in- .'.fU" @..1 formation or misunderstandings. 7' M h -C How does the program work? O Take an imaginary example: a generating plant employee whose foreman has had his crew work in e 4 an unsafe manner in ' rder to get o a job done quickly. He complains to the foreman, who says, "There's nothing I can do. We've got to get the unit on line:' What can the concerned employee do? Glenn says, "If he is not com-6 W" fortable going to anyone in the . k., p .T plant, he can call 1-800-537 307S M,,,D;;,.. $7.;-:( or extension S 526 2323 or write s., w ?%'. /,9.., t ' % ; Corporate Concerns, P. O. Box 54364, Atlanta, GA. 30308-0384. '"" R 4 '/b.3 It's best if he can let us know who 4- '?iN.. he is, so we can contact him again I W< and tell him what we found out. MAF ,${."c- "With the details he pro-m[,01 vides-the foreman's name, when 4 '.7. ',s; and where the incident occurred-n we and someone with expertise in s a that area will talk to the people irwolved and find out the full story. The problem may be a foreman who doesn't understand safe procedures. That's a bad i situation, but that's something we can fix through training. If the foreman knows what he is sup-posed to do, but thinks produc, i rivity is rnore important than safety, some disciplinary action may have to be taken. What hap-pens to the foreman is a manage-ment decision-but this company cu: mud on nut per: CmZEN/ December 1958

g.. s t ( Concerns anm.a 1

is not going to fmd problems and I He adds,"The Corporate perhaps including experts in

' then let them be swept back Concerns program pledges that auditing, engineering, human under the rue" there will be no retaliation in any resources and legal considera-Glenn niknowledges that the form or fashion for submitting a tions-to assure all aspects of the reason some employees do not concern-and that strong man-issue are addressed. pursue concerns is that they are agement action will be taken if Glenn says he does not see a afraid for their jobs or of being such retaliation occurs:' conflict between ethical behavior and performance based goals. "1 branded troublemakers. He says see an emphasis on ethical behav-the. Corporate Concerns program r will investigate anonymous com. ior and on being competitive as l being complementarv. We have a plaints, but that the Vogtle pro- .i gram has shown that a complaint corponte responsibility to make a j can be dealt with much more suc- { profit and to enhance the value cessfully if the investigators can . 5E5 of the Company, but 1 don't be- 'E$ lieve the management of this get back in touch with the con-4 Eg company has lost sight of the fact cerned employee and make sure they understand the problem. that this must be done with and

== "Obviously, if it's a very 55 through people, by giving them s =EE the tools to do the jobs and by specific complaint, the people involved may have a good idea S '== not abusing them or putt ng i them into unsafe or unethica who turned in the complaint',' T i situations. We set performan< e Glenn says. "The chances are that goals in terms of availability, the person who called in has e already said something to the reliability of service and revenu t, but it is implicit that personal foreman so when an investigator 'y safety and ethical conduct be t te starts asking questions, the fore-frrst consideration in that peric r. man will suspect that the one who objected is the one who k' * ""'"*"*8"' mance!' called in the complaint. In his He adds,"The biggest thing mind, he may decide John Doe The Corporate Concerns imolved is obligation. We're not is a troublemaker program acts as an independent going to be the Com aany we can Glenn emphasizes,"We will third party to the investigation-- be until everyone fees not only not allow an employee to suffer and uses the resources the Com-obliged to do their job to the best because of submitting concerns, pany already has to investigate of their abilities but also to take whether the concerns are sub-complaints. For example, if sexual part in the overall team effort. stantiated or not. There are tell-harassment or discrimination Everyone has the obligation not tale signs someone is being problems are turned in to the to stand idly by when things hap-punished-inconsistency in Corporate Concerns program, pen that will hurt the Company discipline, lowered performance they will probably be referred to and its employees or customers. appraisals, being given the worst equal opportunity manager Willie We need that sense of obligation. jobs-and we've got some measur-Hinton. "If someone else has years if people will read the code of ing sticks nnd thermometers that of experience in an area, we'll use ethics and understand what it worked well at Vogtle to show if their expertise. We might use an means to them individually, then someone is being tetaliated internal department to investigate we and the Company can stay on against. some concerns, but if that depart-the right path:* A "We might have to intercede ment is also impugned, we will go and offer the employee protec-elsewhere. If we have to hire a -Gmger Kaderabel tion. We have to do this, from an totally outside consultant, we ethical standpoint and a desire will. We will not let the fox do 1-800-537-3078 for the program to work. Anyone the investigating. We can draw on Remember-if you have any con-who comes to us is m a tight resources throughout the couth-cern about quality assurance, situation already. He's made a ern system. We will find someone ethics or any activity or marier bold step. If we stand by and let we and the concerned employee related io the Company thar you'd someonc suffer from stating a are comfortable with!' lac ro express, you may call shis h concern, we won't accomplish Depending on the nature of bbu Cs e ra what we set out to do with this the concern, Glenn says, it might hate ro identify yourself unless you program" require a task force of expertise-wish ro. 6 CITIZEN! December 1953

Geoigne Tomer Comoany 3:,1 #Neament Avenue Ana,ma. Geoge 30308 Tesegnone 404 52HiO00 Madsng Moress: Post ottice Box 4545 AMnta. Georpaa 30302 Georgia Power l A, W. Dehlberg suom tne soignern e'ecrc systeer October 6, 1988

Dear Fellow Employee,

The past few weeks have been trying ones for all of us, but in l the midst of challenging events, I have seen heartwarming demonstrations of employee devotion and concern for Georgia Power. I am sure that when the smoke has cleared, we will find i that our company is as strong as ever, as dedicated as ever to providing reliable, economical electric service and as i deserving as ever of our loyalty and pride. j Georgia Power has always strived to afford others the dignity and trust that it desires for itself. Nothing has changed that, and nothing will change it as long as we know who we are and what we're about. For more than a year, a group of employees worked to capture on paper the essence of the company through the development of a code of ethics. That effort is completed, and the code has been adopted by our board of directors as the fundamental philosophy of how we will do business. A copy is enclosed. The code of ethics is the source for all our policies, procedures, and practices and is to be used by all officers and employees as the basis of the many decisions we make in our 2 daily work. Any activity which does not conform to this code of ethics is to be made to conform. Also, there will be further changes in the way employee concerns are handled. These changes will make it easier for your concerns to be expressed and addressed. Lee Glenn has been named manager, corporate concerns .He will head a program through which employees may express con.cerns in a wide variety of areas for management attention and response. The program will get started within the next week. A tell-free number, 1-800-537-3078, goes into effect oct. 10. Employees may use this number to express concerns about quality assurance, ethics or any matter related to the proper operation of this company. These steps and the code of ethics are not hurry-up responses to the immediate situation, but are the result of many employees' work over some period of time. We will provide you j with more information about the code of ethics and the corporate concerns program within the next few weeks. Sincerely, h A. W. Dahlberg President -. ~.

_m m .m e a f.torp a dower Cerca*. e 333 F.eamont Avsr + A Irite Georgia 3030f TDepriork? 40; 126 7EM

= =,=

m.,m 3.. e. :. n Georgia Power November 9,1988 i TO: EXECUTIVE OFFICERS GENERAL OFFICE DEPARTMENT HEADS DIVISION VICE PRESIDENTS DIVISION MANAGERS PLANT MANAGERS RE: Corporate Concerns Program Attached is a reprint of an article which will appear in an upcoming issue of the company magazine, " Perspective". This copy is being provided to ensure that you note and understand the two important concepts presented. Information on the Corporate Concerns Program will continue to be made available throughout Georgia Power Company. Please feel free to contact me at 8-526-1465 if you have any questions or connents. t eA-K Lee B. Glenn Manager. Corporate Concerns LBG:jl Attachment i TAB A

. e s. ARTICLE FOR " PERSPECTIVE" The Georgia Power Corporate Concerns Program is now available to all Company employees. There are two points about the program that are important'for you to understand. First, the program is, in place as a service organization. It is our i purpose to identify concerns and bring them to your attention to be addressed.' A degree of separation is necessary to eliminate even the perception of bias and to assure program credibility.

However, issues can and will be addressed to the lowest appropriate level of

~ management for resolution. The second point deals with the program's pledge of non-retaliation. A program such as this cannot survive unless employees feel they can participate free from the fear of negative consequences. As such, we pledge that such actions will not be tolerated. Should you know of or suspect an employee's participation ' with Corporate Concerns, it is important that it have absolutely no bearing on the way that employee is treated. At the same time, participation does not offer an employee immunity from any action, disciplinary or otherwise, which i can be shown to have been consistently and equitably applied within an organization. l

m mag /ja q'o NUCLEAR RF.GULATORY COMMISSION UNITED STATES 3 -t RsGioN u E e 101 MARef.TTA STREET. N.W.. SUfTE 2B00 E 8 ATI ANTA, GEORGIA 303234198 I June 22, 1995 Mb ~ ~ )\\I M - / 8.5 Mr. J. D. Woodard Senior Vice President-Nuclear Georgia Power Company P. O. Box 1295 Birmingham, AL 35201 1

SUBJECT:

NRC INSPECTION REPORT NOS. 50-424/95-14, 50-425/95-14, 50-321/95-12, 1 and 50-366/95-12 j Gentlemen: This refers to the inspection conducted by R. Crienjak of this office on May 15 through June 1, 1995. The inspection included a review of activities authorized for your Vogtle and Hatch facilities. At the conclusion of the inspection, the findings were discussed with those members of your staff identified.in the enclosed report. Areas examined during the inspection are identified in the report. Within these areas, the inspection consisted of selective examinations of procedures and representative records, interviews with personnel, and observation of activities in progress. The NRC encourages licensees to implement emloyee concerns programs and we recognize your positive initiatives to provide an effective alternate means for employees to voice their concerns. Although we judged your programs to be effective at all three company locations (Hatch, Vogtle, and the Corporate Offices in Birmingham), we found Hatch's program to be minimally effective. Specifically, as described in the enclosed report and discussed in the Hatch exit meeting on June 1,1995, two significant weaknesses were ' identified which could lead to inadequate attention to safety significant issues raised through your concerns program: 1) immediate (up-front /on-receipt) technical reviews were not performed to ensure safety significance and reportability were appropriately addressed and 2) some past concerns were not fully investigated or answered. You acknowledged these~ weaknesses during the June 1 exit meeting and proposed corrective actions. You are requested to provide a written i response within 60 days of the date of this letter addressing the two items listed above, including your corrective actions and any safety significant findings you may have identified during your subsequent program review. Within the scope of this inspection, no violations or deviations were identified. In accordance with 10 CFR 2.790(a), a copy of this letter and its enclosure will be placed in the NRC Public Document Room. t ,,,go3 EM '35 ~p.o a wm

s. GPC 2 Should you have any questions concerning this_1.etter, please contact us. Sincerely, E.W.Herschoff,Mrector Division of Reador Projects Docket Nos. 50-424, 50-425 License Nos.. NPF-68, NPF-81

Enclosure:

NRC Inspection Report cc w/ enc 1: s Mr. C..K.cMcCoy - Vir.e President Vogtle Electric Generating Plant P. O. Box 1295 Birmingham, AL 35201 Mr. J. T. Beckham, Jr. Vice President-Plant Hatch Nuclear Operations P. O. Box 1295 Birmingham, AL 35201 J. B. Beasley General Manager, Plant Vogtle Georgia Power Company P. O. Box 1600 Waynesboro, GA 30830 J. A. Bailey Manager-Licensing Georgia Power Company i P. O. Box 1295 Birmingham, AL 35201' Nancy G. Cowles, Counsel Office of the Consumer's Utility Council ' 84 Peachtree Street, NW, Suite 201 Atlanta, GA 30303-2318 r cc w/ enc 1 cont'd: (Seepage 3) 1 y

GPC 3 __ cc w/ enc 1 cont'd-Office of Planning and Budget Room 6158 270 Washington Street', SW Atlanta, GA 30334 Office of the County Commissioner Burke County Commission Waynesboro, GA 30830 Harold Reheis, Director Department of Natural Resources 205 Butler Street, SE, Suite 1252 Atlanta, GA 30334 i Thomas Hill, Manager Radioactive Materials Program l Department of Natural Resources 4244 International Parkway Suite 114 i l Atlanta, GA 30354 Attorney General Law Department i 132 Judicial Building Atlanta, GA 30334 Ernie Toupin l Manager of Nuclear Operations l Oglethorpe Power Corporation 2100 E. Exchange Place Tucker, GA 30085-1349 Charles A. Patrizia. Esq. Paul, Hastings, Janofsky & Walker 12th Floor 1050 Connecticut Avenue, NW ~ Washington, D. C. 20036 ( H. L. Sumner, Jr. General Manager, Plant Hatch Route 1, Box 439 Baxley, GA 31513 D. M. Crowe Mana er Licensing - Hatch v Georgia Power Company P. O. Box 1295 Birmingham, AL 35201 i } cc w/ enc 1 cont'd: (See page 4)

4%.* . 'i.*. I GPC 4 cc w/ enc 1 cont'd: Ernest L. Blake, Esq. Shaw, Pittman, Potts and Trowbridge 2300 N Street, NW Washington, D. C. 20037 Charles H. Badger-Office of Planning and Budget i Room 610 270 Washington Street, SW l Atlanta, GA 30334' l Chairman Appling County Commissioners County Courthouse Baxley, GA 31513 l 4 Y t i l' T i I 1 4}}