ML20135D139

Requests Evaluation of Austerity Program to Assure Continued Safe Operations by 850930.Budget Constraints Which Could Adversely Effect Activities Stated

ML20135D139
Person / Time
Site:	Grand Gulf
Issue date:	09/10/1985
From:	Dircks W NRC OFFICE OF THE EXECUTIVE DIRECTOR FOR OPERATIONS (EDO)
To:	Cavanaugh W MISSISSIPPI POWER & LIGHT CO.
References
NUDOCS 8509130360
Download: ML20135D139 (8)

Text

_. . . _

SEP 101985 Docket No. 50-416 Distribution: D5MtlFilew NRC & L PDRs ED0 R/F DHFS R/F-LQB-2 WDircks HDenton/DEisenhut Mr. William Cavanaugh, III, President H. Bocher GCwalina Mississippi Power and Light Company DPersinko HThompson P. O. Boy 23054 LKintner JWilson Jackson, Mississippi 39205 LQB R/F

SUBJECT:

EFFECTS OF COST CURTAILMENT PROGRAM ON GRAND GULF Recently, it was brought to my attention that Mississippi Power and Light Company may be implementing an austerity program to defray expenses incurred by the construction of Grand Gulf. I am concerned that such a program could negatively impact activities associated with Grand Gulf. However, the details of this program relative to any potential impact on the safety of nuclear operations have not been discussed with the NRC and are of considerable interest to us..

' For example, we foresee that budget constraints could adversely affect the quality of such activities as: (1) filling planned or needed staff positions at both the plant and corporate office, (2) implementation of training program plans and commitments, (3) scheduled plant maintenance tasks, including implementation of preventive maintenance programs, (4) timely completion of scheduled plant design changes and modifications affecting safety, (3) procurement.of new and replacement parts, and (6) management and quality assurance oversight functions.

We recognize that financial austerity measures are sometimes necessary and are a matter between you and appropriate State bodies. However, you should thoroughly evaluate your plans in this regard to assure that they do not contain elements which could affect the continued safe operation of your licensed nuclear facil-ity or delay the fulfillment of your commitments to the NRC. Please provide me with the results of your evaluation no later than September 30, 1985.

We would be pleased to discuss this matter further, if you desire.

Sincerely, 8509130360 850910

~

PDR (Signe$ William J.Diftki ADOCK 05000416

, William J. Dircks Executive Director for Operations

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LOB R/F W. Dircks H. Denton/D. Eisenhut Mr. William Cavanaugh III, Presi ent H. Bocher Miss sippi Power'and Light Company G. Cwalina P.O. B 23054 D. Persinko Jackson, Mississippi 39205 H. Thompson f

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Dear Mr. C vanaugh:

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SUBJECT:

EF CTS OF COST CURTAILMENT PROGRAM ON MAINTENANCE AT GRAND GULF

! Recently, it wa brought to my attention that Mississippi Power and Light 1, will be implementing an austerity program to defray expenses incurred by the construction of GrhQ d Gulf. I am concerned that this program may negatively impact activities asiociated with plant operations at Grand Gulf. Please provide a description \ f the program being implemented as it affects maintaining operationa safety through staffing, training, maintenance, or implementation of previo ly agreed upon plant modifications to implement the NRC requirements.

As you are aware, the area o .aintenance is one in which the staff is keenly interested because of its dire t relationship to plant safety. Consequently, I would like to know the speciffts of the cost curtailment program's effect upon plant maintenance. If any rbduction in funds allotted for maintenance at Grand Gulf are planned as a result of this program, please describe in detail how the reduction will be dishibuted within the maintenance organization. \

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Docket Files 50-416 NRC PDR LPDR ED0 R/F Docket No. 50-416 DHFS R/F - LQB-238 - 2 LOB R/F W. Dircks Mr.Wil'l(amCavanaughIII, President H. Denton/D. Eisenhut Mississippj Power and Light Company H. E5ooher P.O. Box 23054 G. Cwalina Jackson, Miss'1ssippi 39205 D. Persinko Dear Mr. Cavanaugh-

\ H. Thompson L. Kintner

SUBJECT:

EFFECTS OF OST CURTAILMENT PROGRAM ON MAINTENANCE AT GRAND GULF Recently, it was brought o my attention that Arkansas Power and Light will be implementing an austeri program to defray expenses incurred by the construction of Grand Gulf. am concerned that this program may negatively impact activities associated w h plant operations at Arkansas Nuclear One, Units 1 and 2. Please provide a escription of the program being implemented as it affects maintaining operatio 1 safety through staffing, training, maintenance, or implementation of pr iously agreed upon plant modifications to implement the NRC requirements.

As you are aware, the area of maintenance one in which the staff is keenly interested because of its direct relationshi to plant safety. Consequently, I would like to know the specifics of the cost urtailment program's effect upon plant maintenance. If any reduction in fun s allotted for maintenance at ANO are planned as a result of this program, pl se describe in detail how the reouction will be distributed within the maintena e organization.

Sincerely, William J. Dircks Executive Director for Operat ns ss DW/DP/LQB-238 - GRAND GULF & ARK DL ED0 LKintner WJDircks 8/ /85 8/ /85

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h Docket Files Docket No. 50-416 LQB R/F DHFS R/F - LQB-238 - 2 N W. Dircks H. Denton/D. Eisenhut

' H. Booher Docket No. 50-416 G. Cwalina D. Persinko NRC PDR LPDR Mr. Wi iam Cavanaugh III, President Mississip j Power and Light Comnany ED0 R/F H. Thompson P.O. Box 23K4 L. Kintner

~ Jackson, Mississippi 39205 Dear Mr. Cavana

SUBJECT:

EFFECTS OF ST CURTAILMENT PROGRAM ON MAINTENANCE AT GRAND GULF Recently, it was brought my attention that Mississippi Power and Light will be implementing an aus rity program to defray expenses incurred by the construction of Grand Gulf, am concerned that this program may negatively impact activities associated w h plant maintenance at Grand Gulf and, as you are aware, the area of maintenan is one in which the staff is keenly interested because of its direct r tionship to plant safety. Consequently, I would like to know the specifics o he cost curtailment program and, in particular, its effect upon plant maint qance. If any reduction in funds allotted for maintenance at Grand Gulf arb planned as a result of this program, please describe in detail how the duction will be distributed within the maintenance organization.

Sincerely,

. William J. Dircks Executive Director for rations DL ED0 DW/DP/LQB-238 - GRAND GULF & ARK LKintner WJDircks-g 8/ /85 8/ /85

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Central Files LQB R/F DHFS R/F - LOB-238 - 2 W. Dircks H. Denton/D. Eisenhut H. Booher Mr. William Cavanaugh III, President G. Cwalina Mississippi Power and Light Company D. Persinko P. . Box 23054 Jac on, Mississippi 39205

SUBJECT:

EFFECTS OF COST CURTAILMENT PROGRAM ON MAINTENANCE AT GRAND GULF r

Recently, it as brought to my attention that Mississippi Power and Light will be impl nting an austerity program in order to defray expenses incurred by the onstruction of Grand Gulf. I am concerned that this program may negatively im ct activities associated with plant maintenance at Grand Gulf and, as u are aware, the area of maintenance is one in which the staff is keenly inter ted because of its direct relationship to plant safety. Ccncequently, would like to know the specifics of the cost curtailment program and, n particular, its effect upon plant maintenance.

If any reduction in funds lotted for maintenance at Grand Gulf are pla.1ned as a result of this program, lease describe in detail how the reduction will be' distributed within the main nance organization. Funding levels for each cost center within the maintena . e organization, both prior to and subsequent to the implementation of the cost urtailment program, should be provided.

As part of the staff's continuing int est in traintenance, a survey of plant maintenance practices to detennine the fectiveness of plant maintenance is -

being conducted by the staff as part of t Maintenance and Surveillance Program Plan which is currently being implem ted by the Licensee Qualifications Branch, Division of Human Facto Safety. A key element of this survey is making site visits to a selected g up of plants to discuss how plant maintenance is conducted at each facility.

Sincerely,-

William J. Dircks Executive Director for Operations bec: L. Kintner ED0-DW/DP/LQB-238 - GRAND GULF & ARK WJDircks 8/ /85 "c4 ..L93/.DHf.S... ....L90.lRME.4.... ...1 3 B .H D ,...., ..Ac AQ0/pH F,S.,, ,,,AckD/,DHf,S,. . ,,,,0 D/ N,R R , ,,,, ,, , ,D/ N,R R, ,,, ,,, , , , ,

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Central Files LQB R/F DHFS R/F LOB-238 W. Dircks H. Denton/D. Eisenhut H. Bocher G. Cwalina Mr. lliam Cavanaugh III, President D. Persinko Missis ipoi Power anu Light Company P.O. Bo 23054 Jackson, ssissippi 39205

SUBJECT:

EFFEC 0F COST CURTAILMENT PROGRAM ON MAINTENANCE AT GRAND GULF Recently, it was bb ught to my attention that Mississippi Power and Light will be implementing an austerity program in order to defray expenses incurred by the const 4Jction of Grard Gulf. I am concerned that this program may negatively impact & tivities associated with plant maintenance at Grand Gulf and, as you a e aware, the area of maintenance is one in which the staff is keenly intereste because of its direct relationship to plant safety. Consequently, I w 'ld like to knew the specifics of the cost curtailment program and, in articular, its effect upon plant maintenance.

If any reduction in funds al tted for maintenance at Grand Gulf are planned as a result of this program, p ease describe in detail how the reduction will be distributed within the maint nance organization. Funding levels for each cost center within the maintenan e organization, both prior to and subsequent to the implementation of the cost curtailment program, shcold be provided.

As part of the staff's continuing i erest in maintenance, a survey of plant maintenance practices to determine t effectiveness of plant maintenance is being conducted by the staff as part the Maintenance and Surveillance Program Plan which is currently being ,plemented by the Licensee Qualifications Branch, Division of Human Factors Safety. A key element of this survey are site visits to a selected roup of plants to discuss how plant maintenance is conducted at each fac ity.

Sincere y, William J. Di ks Executive Direc or for Operations bcc: L. Kintner E00 WJDircks 8/ /85

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Docket No. 50-416 Distribution: Docket File NRC & L PDRs E00 R/F DHFS R/F-LQB-2 WDircks HDenton/DEisenhut Mr. William Cavanaugh, III, President H. Booher GCwalina M' sissippi Power and Light Company DPersinko HThompson

.P. . Box 23054 .

LKinter JWilson Jack n, Mississippi 39205

SUBJECT:

E ECTS OF COST CURTAILMENT PROGRAM ON GRAND GULF Recently, it wa brought to my attention that Mississippi Power and Light Company may be i lementing an austerity program to defray expenses incurred by the construction o Grand Gulf. I am concerned that such a program could negatively impact a ivities associated with Grand Gulf. However, the details of this program relat e to any potential impact on the safety of nuclear operations have not bee discussed with the NRC and are of considerable interest to us.

This interest stems from th experience we have gained in evaluating licensees' regulatory performance throug the NRC's SALP program. For example, we have observed instances where budge constraints have adversely affected the quality of such activities as: (1) fill planned or needed staff positions at both the plant and corporate office, ( implementation of training program plans and commitments, (3) scheduled plan maintenance tasks, including implementation of preventive maintenance programs, ) timely completion of scheduled plant design changes and modifications affec ng safety, (5) procurement of new and replacementparts,and(6)managementan quality assurance oversight functions.

We recognize that financial austerity measu s are sometimes necessary and are a matter between you and appropriate State bo ' es. However, you should thoroughly evaluate your plans in this regard to assure th they do not contain elements which could affect the continued safe operation o your licensed nuclear facil-ity or delay the fulfillment of your comitments to the NRC. Please provide me with the results of your evaluation no later than eptember 30, 1985.

We would be pleased to discuss this matter further, if y desire.

Sincerely, William J. Dircks Executive Director for Operations

• See previous white for concurrences y/

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