ML20215E027

Advises of Slight Organization Change at Util.L Phillips Appointed Executive Vice President at Toledo Edison

ML20215E027
Person / Time
Site:	Davis Besse, Perry, 05000000
Issue date:	05/29/1987
From:	Ginn R CENTERIOR ENERGY
To:	Davis A NRC OFFICE OF INSPECTION & ENFORCEMENT (IE REGION III)
References
NUDOCS 8706190228
Download: ML20215E027 (4)

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6200 Ook Tree Boulevard ' Moll Address. Robert M.Ginn =

Independence OH PO Box 94601 Choirrnon and

- 216-447-3101 Cleveland, OH 441014661 Chief Executwe Officer May 29, 1987 Mr. A.- Bert Davis Re61onal Administrator Nuclear Regulatory Commission Region III 799 Roosevelt Road Glen Ellyn, Illinois 60137

Dear Bert:

By- the time you receive this I may have talked with you, but in case-we riss connections. I wanted you to know of a slight organization chenge we have made at Toledo Edison.

Effective. immediately, Lyman Phillips, who has been Senior Vice President-Administration at Centerior Energy, has been appointed Executive Vice President at Toledo Edison with all Engineering,'

. Operating and Marketing activities reporting directly to him. .This l includes Don Shelton as Vice President-Nuclear. paul Smart will continue as President of Toledo Edison with . direct responsibility -

for regulatory and public affairs only. Regulatory in this case.is Ohio rate regulatory matters.

While on the organization chart Lyman Phillips reports to Paul Smart, in fact he will report directly to me on all matters involving utility operations.

While we have not made this announcement in the public media, one of the reasons for doing it is to improve communications on all opera-ting matters, including nuclear, between the Operating people at Toledo Edison and me.

Paul Smart is a very able man but has limited experience in corporate organizations, and we have had some communications problems.

8706190228 B70529 PDR ADOCK 05000346 g' PDR U.UN 1 1937 2~E-oY

Mr. A. Bert Davis May 29,1987 While I know that I told the Commission that we would not make any organization changes involving Nuclear without clearing with them, I regard this in the spirit of that comment because, while we have changed the people we have not changed the reporting relationship.

If anything, I expect to be closer to Davis-Besse now than in the past.

You will also note from the announcement that Murray Edelman has assumed new responaibilities, reporting to me at headquarters, coordinating all Nuclear activities in conjunction with Don Shelton and Al Kaplan at Perry. As soon as Murray has completed his recommended studies I will make sure that he and I discuss any recommendations with you before they are implemented.

Since this is our first formal communication since you assumed your ;

new responsibilities - congratulations! I enjoyed workirg with Jim and look forward to our association.

Best wishes. l 7

Sincerely,

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Robert M. Ginn RMG:srm Enclosure l

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k SYSTEM HEWS For Employees of the Centerior Energy Corporation Vol.1, No.1 -- May 29,1987 Centerior organization changes Energy, and executive vice president of announced Toledo Edison reporting to Mr. Smart.

Reporting to Mr. Phillips will be the following Centerior Energy Chairman Robert M. Ginn Toledo Edison executives: Richard P. Crouse, and President Richard A. Miller announced senior vice president, Engineering and today a series of organization changes Operations; Donald H. Saunders, vice designed to enable Centerior Energy to ex- president-Finance and Administration; Alan pedite efficiencies from the affiliation and to H. Rudolph, vice president-Marketing; Donald address the rate and regulatory problems Shelton, vice president Nuclear, and William facing the company and its subsidiaries. E. Huepenbecker, assistant to the president-Rates. Mr. Phillips will be respo.nsible for These changes, which have been approved administration of Toledo Edison's ongoing ac-by the Centerior Board, will capitalize on the tivities in the production, transmission, dis-particular abilities and experience of Messrs. tribution and marketing of energy and other Ginn and Miller and other senior executives administration and the coordination of these to address current problems and to avoid activities with Centerior and CEI.

replacing certain senior executives retiring under the Voluntary Early Retirement Oppor- Robert J. Farling will continue as president tunity Program. The channes also represent of CEI with the responsibility for administra-growing recognition of the need to capitalize tion of CEl's ongoing activities in the produc-on the advantages of the affiliation by tion, transmission, distribution and marketing centralizing more long range decision-making of energy and other CEI administration and at Centerior Energy headquarters. Messrs. the coordination of these activities with Cen-Ginn and Miller will coordinate their ac- terior and Toledo Edison (This is essentially '

tivities as the Office of the Chief Executives. no change from his present responsibilities.)

Effective immediately, Mr. Ginn will as- Stanley E. Wertheim has been elected vice sume direct responsibility for all engineering president-Administration at Centerior Service and operations matters while retaining his Company. Stan will assume Lyman Phillips' role as chief executive of the company. Mr. present responsibilities while retaining Miller will assume direct responsibility for all responsibilities he formerly held as Assistant administrative, financial, and public and to the President. Stan will report to Dick Mil-governmental affairs activities. !cr. He will be responsible for coordinating and integrating all Human Resources, Infor-Paul M. Smart will continue as president of mation Systems, and Procurement activities Toledo Edison with primary responsibility for throughout the corporation, assisted as neces-public and regulatory affairs. In addition, to sary by Messrs. Farling, Phillips, Saunders and l give Centerior Energy the benefit of his ex- John S. Levicki, vice president-Finance and j tensive ability and experience in financial Administration, CEI.

and regulatory matters, Mr. Smart will spend a substantial amount of time in Independence to Centerior Energy General Counsel Victor F.

aid Mr. Miller in planning and integrating Greenslade has been elected vice president financial, rate and governmental affairs func- and General Counsel. He will continue to I tions. head Centerior legal activities and report to l Dick Miller. l Lyman C. Phillips, senior vice president- l Administration, Centerior Energy, has been (continued on back) l clected senior vice president, Centerior

(continued from fron!)

Alan D. Wright, as vice president-Public and To expedite matters, three committees have Governmental Affairs, Centerior Service,'will been formed:

report to Dick Miller and coordinate all Public and Governmental Affairs. Stephen G. To coordinate and integrate nuclear and re- I Lorton, director, Public Affairs, and James R. lated activities, Messrs. Edelman, Shelton and  !

Smircina, director of Governmental Affairs, Alvin Kaplan, CEI vice president Nuclear will report to Alan. He will be assisted as Operations, will form a nuclear committee necessary by Messrs. Farling, Smart and chaired by Mr. Edelman and assisted as neces-Phillips, sary by Messrs. Williams, Farling, Masters, and Wertheim. This committee will report to Mr.

Edgar H. Maugans will continue as senior Ginn.

vice president-Finance with no change in as-signment. He will continue to report to Dick To coordinate and study all other produc-Miller. He will be responsible for coordina- tion, transmission and distribution operations tion and integration of all financial activities and engineering activities, an en8ineering and throughout the corporation, assisted as neces- operations committee will be formed of sary by Messrs. Miller, Farling, Phillips, Messrs. Williams, Masters, Crouse and John W.

Levicki and Saunders. Fenker, CEI senior vice president Engineering and Operations. This committee will be as-Messrs. Miller, Smart, Maugans, Wright and sisted as necessary by Messrs. Farling, Phillips Greenslade will constitute a regulatory and and Wertheim. For the time being the com-financial planning committee chaired by Mr. mittee will be chaired by Mr. Williams and it Miller. will report to Mr. Ginn.

Messrs. Farling, Smart and Phillips will To coordinate and study all marketing ac-report to Mr. Ginn to coordinate engineering tivities, a committee will be composed of and operations activities. Messrs. Farling, Phillips, Rudolph, and Frank A. Kender, CEI senior vice president-When he returns from the Advanced Marketing. The committee will be chaired by Management Program at Harvard University Mr. Farling and report to Mr. Ginn.

on June 1, Murray Edelman will report to Mr.

Ginn and will coordinate all Centerior nuclear activities.

Until he retires on September 1, Harold L.

Williams will continue as Centerior Energy's executive vice president Engineering and Operations and report to Mr. Ginn. William ,

D. Masters, vice president System Engineering and Operation, will continue to report to Mr.  !

Williams until Harold's retirement. Masters j then will report to Mr. Ginn.

Additional changes will be announced, many involving consolidations, as VEROP l retirements are deter. mined and replacements l or reorganizations occur in the engineering and operating areas.