ML20235J356

Forwards Matls Summarizing Presentation to Util Board of Directors Re Schedule & Budget for Successful Restart of Plant

ML20235J356
Person / Time
Site:	Rancho Seco
Issue date:	06/24/1987
From:	Andognini G SACRAMENTO MUNICIPAL UTILITY DISTRICT
To:	Martin J NRC OFFICE OF INSPECTION & ENFORCEMENT (IE REGION V)
References
GCA-87-257, NUDOCS 8707150511
Download: ML20235J356 (45)

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SACRAMENTO MUNICIPAL UTILITY DISTRICT O P. o. Box 15830, Sacramento CA 95852-1830,(916) 452-3211 AN ELECTRIC SYSTEM SERVING THE HEART OF CALIFORNIA June 24, 1987 GCA 87-257 75 Mr. Jack B. Martin Administrator, Region V  %$ $

co w U.S. Nuclear Regulatory Commission E5 o r.Q N-Philips Building 2 7920 Norfolk Avenue < p C Bethesda, MD 20014 @

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Dear Mr. Martin:

On June 18, 1987, I presented to the Board of Directors of the Sacramento Municipal Utility District my assessment concerning the schedule and budget for the successful restart of Rancho Seco. The materials summarizing my presentation are enclosed for your review.

The conclusions of the assessment resulted from my evaluation of the key facets of the current restart program. Further, our extensive and systematic in-house evaluation was augmented by the independent reviews of consultants and the findings of the Nuclear Regulatory Commission and INPO.

The results of our indepth assessment:

o Confirm my judgment that Rancho Seco can be operated safely o Attach the following schedule and budget parameters to the restart effort:

1 The delay of restart till January 1988 2 A four- to five-month structured power ascension program after the January restart 3 The required addition of $62,000,000 to the 1987 budget.

The Board of Directors is giving careful consideration to the -

1 details of my assessment, and will make further comments at a future meeting.

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f-uim RANCHO SECO NUCLEAR GENERATING STATION O 14440 Twin Cities Road, Herald, CA 95638-9799;(209) 333-2935 l

Mr.' Martin June 24, 1987 Should you require additional information, please contact Mr.

John.Vinquist of my staff at (916)'452-3211, ext. 4244.

Sincerely, I

It?/ ft /Y/fd>*b G. Carl Andogfiini Chief Executive Officer, Nuclear Enclosures I

cc: D. Kirsch L. Miller T. D'Angelo - NRC/ Rancho Seco

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l i RANCHO SECO RESTART SCHEDULE AND BUDGET ASSESSMENT PRESENTED TO THE BOARD OF DIRECTORS JUNE 18, 1987 - l N A l

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l INTRODUCTION  ; Good Morning President Wilcox, and members of the Board. Copies of my remarks and overheads have been provided to each Board Member. Additional copies will be available for the news media after my presentation. In April, when I accepted this position, I made a commitment to I report to you on the cost and schedule of Rancho Seco. Today, I j i am here to report to you my assessment for successfully l completing the restart of Rancho Seco. In reaching my l conclusions, I have evaluated all key facets of the current l Restart Program. This has included a systematic review with individual department managers to assess their programs, i difficulties, schedules, direction, and need for redirection. In i addition to the evaluation that was made by the in-house staff, I l selected several consulting specialists who have independently evaluated the Restart effort and have assisted in the preparation 3 i of this report. I have also met with the Nuclear Regulatory Commission and INPO. I have studied and' critiqued all their  !,

                                                                                     -    1 reports and findings, and together with my own experience, I am           i prepared to tell you that I am ready to report our assessment for         i t

the restart of Rancho Seco. j f My agenda for today covers (Slide - Agenda) i l 1 1 _ _ _ - - _ - i

The agenda shows the subjects that I will cover this morning. First, I want to share with you that I am pleased with the thoroughness of the job which was done in reviewing the Restart Schedule and the basis for the budget projection. I will also share with you our assessment of both schedule and budget. In addition, we took a forward look at items that might have a potential impact. We assigned a risk factor to each of these items. At the end, I will summarize my conclusions. Much has been accomplished at Rancho Seco. An excellent problem identification program was established. This resulted in early and sound engineering decisions to accelerate the installation of the Emergency Feedwater Initiation and Control (EFIC) system, to accelerate the installation of new diesel generators, and to sleeve critical tubes in the steam generators. I am pleased with the overall progress being made to the plant systems and equipment. Additional enhancements are required in management systems and procedures. High quality individuals now fill key positions of the permanent organization. However, the organization, which I will discuss shortly, lacks depth to adequately support the key individuals in place. A management development program to address this issue is being developed and will be implemented in 1988.

1 (Slide - Restart Implementation Organization) 1 In May, the organization was still structured to identify and  ! resolve restart problems and implement modifications. Recently you were advised that the transition organization was implemented on June 15, 1987. 1 (Slide - Transition Organization) l l This'is a critical milestone for Rancho Seco, as we now begin the transition from a repair and retrofit phase to the startup and

                                                 .                         l test phase. The purpose of the interim organization is to focus management attention on remaining restart functions, primarily system review and test, and to transition the new management team into their permanent line responsibilities.

When restart activities are complete, we will proceed to the final phase of our transition and implement the Permanent Organization. (Slide - Permanent Organization) 6 e

With respect to staffing, several key positions have recently been filled. You will note that there are only three vacant positions at the department head level. We have successfully recruited key operations personnel who have strengthened those functions. Dan Keuter is the Nuclear Operations and Maintenance Director and Bill Kemper is the Operations Manager. Dan has a Senior Reactor Operator's License and many years experience at an operating nuclear plant. Bill has a Senior Reactor Operator's l license plus extensive operating experience at an operating l Babcock and Wilcox plant. Lee Fossum just accepted the position of Scheduling and Outage Manager. Lee brings extensive scheduling, outage, and maintenance management experience which he obtained at several nuclear plants. In addition, Karl Meyer has accepted our offer for the position of Licensing Manager. He is also a highly experienced and respected manager, who will assist us in responding to the NRC as well as perform normal licensing functions. Under the consent agenda, I have requested the upgrade of the QA Manager position to Director. This upgrade is necessary to bring stature to the position and enables us to recruit an individual who can enhance our Quality Program as well as ensure regulatory compliance. Pending the results of today's meeting, he is prepared to join our organization. E

i i The experience. level of Rancho Seco-operators.needs to be strengthened. We are currently supplementing them with experienced individuals from other facilities. Furthermore, additional operator training will be conducted during the system test and power ascension portions of the test program. In recruiting individuals for permanent positions, we have learned that individuals in all classifications are highly concerned about the uncertainties'. surrounding Rancho Seco today. While we supplement our current team with consultants, we need to establish the permanent team and get them trained to work cohesively as soon as possible. We have completed an evaluation of the system review and test program to assure that it meets our needs to verify system operability. The NRC and the District have agreed upon the selection of systems and the functions to be tested as outlined in the System Status Reports. However, an evaluation has lead us to the conclusion that the test program requires strengthening in order to assure that the systems are functional. In our meeting with the NRC last week they concurred with this approach. 4 1 1 1 1 l 1 l

The engineering program has been revised to be more proactive and responsive to plant needs. Some of the findings of the recent NRC Augmented System' Review and Test Program (ASRTP) Audit, coupled with our own evaluations, have shown a need to improve the design process, to provide more complate design packages and l 1 operational input into design changes. On Tuesday, just two days ago, in a phone conversation with the NRC Region V, they discussed their concern regarding ASRTP audits. Based on this conversation, we saw no alternative but to redirect our program by completing this effort prior to restart. We had previously started these audits but did not plan to complete them until after startup. A problem identification program called QCI-12 was developed early in the outage to identify work items. This has proven to be an effective program. At this time we are reinforcing this process by establishing a Scope Control Program and have staffed it with a team from various disciplines. Their purpose is to better define the remaining scope and also to do a final scrub down of priority items to determine if they are applicable to the restart effort. This' task force will continuously assess scope, schedule, and cost impact to enhance management control and progress reporting.

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                     !          During my assessment program, it was apparent that many of the plant processes were not integrated. A Management Systems Control Center (MSCC) has been developed to focus management attention on the numerous restart activities. The purpose of this Center is to dynamically display the various management                      j 1

processes in one location to coordinate those activities. Each ) i process will be described as shown on the following overhead. (Slide - MSCC) l An up-to-date status of the restart can be obtained at'any time in the MSCC. The Restart Implementation Manager conducts meetings in the Center to review each process and its status with l 1 respect to the restart effort. In addition, the new Rancho Seco l { Management Control System will provide the governing i Administrative Procedures to package the process and control all i -activities. When this new-program has been proven, the entire process will be documented. j In summary, although it may take a period of operating experience 4 i before high reliability can be reached, I am confident that Rancho Seco can be operated safely. I repeat my commitment that I will not start up Rancho Seco until it is safe to do so. In i addition to regulatory agencies review, I must also have the i i j _________-_____D

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e concurrence from my staff, from the continuing effort of the , Nuclear Advisory Committee, and from an outside independent group of industry experts who will conduct an operational readiness review. - l l At this time, let me provide you my assessment relative to schedule and cost. emi. 4 e

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