ML20236A769
| ML20236A769 | |
| Person / Time | |
|---|---|
| Site: | Rancho Seco |
| Issue date: | 10/16/1987 |
| From: | NRC COMMISSION (OCM) |
| To: | |
| References | |
| REF-10CFR9.7 NUDOCS 8710230101 | |
| Download: ML20236A769 (123) | |
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C' UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION
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Washington, D. C.
l Date:
Friday, October 16, 1987 s
Pages:
1 - 72 Ann Riley & Associates Court Reporters 1625 i Street, N.W., Suite 921 Washington, D.C. 20006 (202) 293-3950 8710230101 871016 PDR 10CFR PDR PT9.7
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'This is an unofficial transceipt of a meeting of the
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' Un i t ed ' S t'a t es Nuc l ea'r Regu t'a tEiry ConvEi ss ion he l d I
on j
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e 10/16/87 In the Commission's office at 1717 H Street, i
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'N.W..
Washington,-D.C.
The meeting was open to publIc
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10 attendance and observation.
This transcript has not been i
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' reviewed', corrected, or edited, and it may.contain
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12 Inaccuracies.
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The transcript is intended solely for general 13 14 Informational purposes.
As provided by 10 CFR 9.108, It is l
15 not part of the formal or informal record of de' cision of'the 16 matters discussed.
Expressions of opinion in this transcript 17
~ do not necessarily reflect final determination or beliefs.
No i
18 pleading or other paper may be filed with the Commission in 19 any proceeding'as tho' result of or addressed to any statement 4
20 or argument contained herein, except as the Commission may 21 authorire.
22 23 24 25
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1-1 UNITED STATES.0F-AMERICA'
- 2 NUCLEAR REGULATORY COMMISSION 1
-l 3i BRIEFING ON STATUS'OF RANCHO SECO-I
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5 (PUBLIC MEETING)
- l 6-7J Nuclear-Regulatory Commission
' 8,1 sRoom 1130 l
9 1717 H Street, Northwest 10-Washington, D.C.
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12 FRIDAY, OCTOBER 16, 1987 l
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u 14 The Commission met, pursuant to notice, at-15
~10:15 a.m., the Honorable LANDO W.
ZECH, Jr., Chairman of the 16 Commission, presiding.
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18, -
COMMISSIONERS PRESENT:
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20 LANDO W.
ZECH, Jr.
Chairman of the Commission 1
21 THOMAS M. ROBERTS, Commissioner j
i r22 FREDERICK M. BERNTHAL, Commissioner 4
23 KENNETH C. ROGERS, Commissioner 24
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NRC STAFF AND PRESENTERS' SEATED AT' COMMISSION TABLE:
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S..Chilk W. Parler
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4 J. Taylor
'J. Martin 5
T. Murley-F. Miraglia 6
G.'Kalman 7
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.C..Andognini
.C. Wilcox 9
J.
Firlit J. Vinquist 10
'D.
Keuter G.
Cranston i
11 J. Shetler i
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14 15 0
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' PROCEEDINGS 2~
CHAIRMAN ZECH:' ' Good morning, ladies'and gentlemen.
i 3 I apologize for the~ delay in starting the meeting this morning.
4
. Commissioner carr will.not be with us this morning, he's on 5
foreign travel ~.
6 This morning's meeting is-a. briefing by the 7
Sa,cramentol Municipal. Utility District and the NRC Staff.
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concerning.the: status. of' Rancho Seco.
Rancho'Seco has been 9
shut down in' compliance with a confirmatory action letter 10
. issued by the NRC Region V after an~ overcooling transient 11 occurred at the plant on December 16th, 1985.
12 During our last meeting on the same subject, held in
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13 January 1987, there was a substantial amount of. additional work 14 to be completed. ;The management team'had not yet established a l
15 performance record and the progrqm results were generally 16 undetermined.
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i 17 I'm looking forward to-hearing today from the utility j
18 and from the staff concerning the progress that has been made 19 during these past number of months since we were briefed last 20 in January.
I understand that copies of the slides of today's 21 presentation are available in the back of the room.
Do any of i
22 my fellow Commissioners have any opening comments?
23
[No response.]
24 If not, Mr. Wilcox, would you proceed, please?
(;j 25 MR. WILCOX:
Thank you, Chairman Zech.
I would like l
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4 L1 Lto turn ittover'to Mr.L'Andognini for the opening. remarks.
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-CHAIRMAN ZECH:
Thank you very.much.
'Mr. Ahdognini-c
-f3 you may proceed.-
4 MR. ANDOGNINI:'
Good' morning,.Mr. Chairman and 5
Commissioners.
My name'is Carl:Andognini,:I am Chief. Executive-
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officer, Nuclear for Sacramento' Municipal Utility District.
My 7'
office was created by the-District last May'when I was hired by l
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the Board to' assume.the; responsibility for.the safe restart and j
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operation of' Rancho Seco.
As.CEO, Nuclear, I reportLdirectly' l
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.toLthe Board of Directors.
11 our. presentation lthis morning-is approximately 50 12 minutes in duration.
We will attempt to move smoothly and 1
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swiftly through it'to give you the benefit of our entire-
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13 14-presentation.-
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15' (Glide.]
16 I'd like-to introduce the gentlemen with me who will 17 speak today.
On my left is the Honorable Cliff Wilcox, 18 President of the District's Board of Directors.
Mr. Wilcox has 19 been a director for almost five years and was re-elected to a 20 four-year term in 1986.
He previously served as Board 21 President in 1985.
Mr. Wilcox will make a few comments in just 22 a minute.
23 on my right is Joe Firlit, Assistant General Manager, 24 Nuclear Power Production.
Joe is the Site Director at Rancho (v) 25 Seco.
He came from consumers Power's Palisades plant where he
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-.was plant. manager, and:before'that, QA Director.
He'has 12 L21 years'< experience--in'.the operation!and construction of nuclear:
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(3 Lpower-plants.-
At Rancho'Seco, he is responsible and L4 accountableLfor nuclear operations'and. maintenance including j
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' plant modifications, scheduling =and outage management, the 6-system' review and test' program, plant' support which, includes
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, radiation' protection, chemistry, plant performance and' 48; trainin'g.
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9 I also have with me my senior management' team.
On.my
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.t 10-left, tho' Director of Quality Assurance, John Vinquist, who 11 reports directly.to me.
John has been with SMUD for about two
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12 and'a half years, has 13 yearst nuclear experience and formerly
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13 held ~an'SRO' license.
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' 14 Dan Keuter on my left.is'the Director of Operations 15 and' Maintenance.
Dan formerly held an SRO license, has 13 16-
- y. ears of nuclear experience in the operation of nuclear power 17
, plants.
q 18 The Director of' System Test and Review is Jim f
19 Shetler, also on my left.
Jim came to SMUD in 1985 from B&W
-20 where he worked on six nuclear plants including Rancho Seco.
21 He has 16 years of-nuclear experience.
22 On my far right, Greg Cranston is the Manager of 23 Nuclear Engineering with one year at SMUD; he has 21 years of 24 nuclear experience.
G 25 Incidentally, collectively, the Rancho Seco senior
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..g managerial staff represents ~148 years of commercial nuclear 1
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While I.have our. organization chart before us,.
3 there are several key points I would like to make. ~ The Board-4 has given me full responsibility and' authority for the safe 5
restart of Rancho.Seco.
I have the confidence of every member 6
lof.the Board; I. report to them~ weekly through open meetings 7
held twice each month and through other.special meetings and 8
, reports.'.I.have been open.and candid in keeping the Board
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members fully informed and would characterize our relationship 10.
as one of mutual respect.
11 Please note that we do have a stable organization in 12
- place, of the 24 managerial' positions, all but four are filled
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14 these positions.
I consider only one of these four to be a key 15 position; that is, the Manager of Maintenance, and we.will i
'16 discuss that position later in our presentation.
17 Finally, the leadership and experience of this new i
18 management team provides.the assurance that the critical i
19 cultural change at Rancho Seco will be achieved and will 20 persist.
From my own observations, the evidence of a trend of 21 cultural change is already apparent.
All of my managers are 22 dedicated to make it happen and to prevent backsliding.
23 We are pleased to be here today to give you a status
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24 report on our progress, accomplishments and challenges.
Mr.
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25 Chairman, in January your message to us was results, not
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-7 li promises. :Today,we will tell you~of our results'.
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2-I want to emphasize that our' restart action plan 1
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described to you then is' alive and well; it has and will 4
. continue to be a dynamic program that' continues to improve, 5
specifically, to' correct hardware deficiencies that-have been-i 6
uncovered since January, the testing program'has expanded to' 7'
include integrated. system functional tests.
The results of the 8
,NRC. review and inspection program.for eight systems has also 9
been incorporated.
An SSFI-type audit is almost complete on 10 the 33 select systems.
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' 11 In addition, we have committed to an additional 45
.l 12' systems before the and of 1989.
Selected items previously
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. 13-planned for post-restart such as the Mov refurbishment have
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been added.to the restart schedule; all safety-significant 15 MOV's will have been completed by restart.
16 To emphasize and accelerate the resolution of people 17 issues, we have almost completed our transition to a full SMUD 18 organization.
With this effort, we have defined the 19 responsibilities and accountabilities of our management staff.
This has instilled our cultural change by strengthening our 20 21 management leadership.
22 Along the same line, I have added a new Management 23 Systems Department to develop and implement a totally 24 integrated management system site-wide.
Each one of these 25 improvements is relevant to a more fundamental issue.
When'I 4
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accepted the position,-I clearly stated-to-the Board of
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-Directors and the public that I would not restart Rancho Seco 3'
until~I was completely-satisfied the plant _is ready for safe i
4 operation.and~that the health and safety of the public would be 5
protected.
We are not there yet.
6 My-staff will tell you of_the significant results 7
achieved to.datet in addition, I have sponsored a number of independent.investiglitions,_ evaluations and reviews, using a 8.
9 bland of outside experts and our own management team, to assist 10 me in my evaluation of plant readiness.
Efforts like these 11 will continue throughout the restart program.
i 12 Before Joe Firlit discus,ses our many accomplishments, 13~
Mr.'Wilcox will make a few remarks on behalf of the Board.
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14 MR. WILCOX:- Thank you, Carl.
Good morning, Mr.
15 Chairman and members of the Commission.
Let me, on behalf of 16 my colleagues on the SMUD Board thank the-Commission for 17 allowing us-this opportunity to give you this briefing. 'We 18 appreciate your time, we know the Commission is very busy.
t 19 Let me start by stating that the Board has been and l
20 continues to be in full support of the safe restart of Rancho 21 Seco.
This is evidenced by the recent Board approval of a $62 million budget extension, an aggressive recruiting and hiring 22 L
23 program for plant personnel, the recent approval of a bond sale l
24 to provide that $62 million, and the search for and hiring of a
'm 25 new general manager.
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1 The Board's involvement continues =to be apparentiin a 1
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2 varietyLof ways.-
There-is a two Board, member committee which 3-meets with Carl and: senior-plant ~ management every two weeks.
4 That committee reviews the status of progress on schedules, 5
-programs and challenges.
The entire Board meets with Carl once i
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.a month in a public meeting, and in addition, Carl is in 4
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constant contact with Board members almost on a daily basis.
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I also want to point out.that the Board has been 9
consistent in its support of Rancho Seco since the event.
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.10 may not.always appear to be that.vay because, as you are aware, i
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.the Board is like the Commission; individual members have the 12.
right to express their individua1' views.
Sometimes those views
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13 receive more publicity than the Board's majority' decision.
14L A recent example of that is the request for an 15 adjudicatory hearing on B&W plants sent to you by two of my 16 colleagues. LAs you know, that was not an official Board 17 request, nor did it indicate a lack of support of restart by 18 those Board members.
19 During our January meeting with the Commission, the Board expressed its' confidence in the le'adership of John Ward 20 21 and his management team.
We believe the District needed John 22 to help it get back on its feet.
We believe his team was good i
23 at identifying the areas that needed improvement and in 24 formulating and starting the programs to address those areas.
) 25 Our concerns arose as we approached restart and plant a
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operations.
The~ Board.with outside advice determined it needed 1
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.a more' operationally-experienced team.who could implement ' programs,. achieve positive results and make progress.
We 'also
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wanted to-focus on obtaining a permanent SMUD management team.
5 We have now'a permanent management team led by Mr.
6 Carl'Andognini.
Carl brings to SMUD 29 years of extensive 7
exp'erience in the.startup, operation and management of several 8
nuclear, power plants.,,. Carl's management skille, coupled with 9
those of his key individuals such as Fir 11t, Vinquist, Kauter
-10 and others, have brought the Rancho Seco team together and are 11 providing the leadership that demands results while assuring 12-safety and quali,ty.
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you would expect that one benefit of achieving these i
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'results and making progress would be to improve the morale at 15 the plant.
I believe morale is better but not as high an'it l
16-could be because of publicity generated by outside events.
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-17 Earlier this year, a referendum achieved enough 18 signatures to be placed on the ballot.
The Board voted to put 19 the rafarendum to close Rancho Seco on the November '88 ballot; 20 the California court moved that ballot date for June of 1988.
21-The uncertainty of future operations created by this referendum 22 is obvious.
The Board has been receiving many divestiture 23 options; we ara entertaining the possibility of selling all or 24 a portion of SMUD's generating assets, and we have solicited 25 bids to determine the feasibility of these options.
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I One-of those options and responses has been from
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2' PG&E; a suggestion for the consolidation of SMUD with PG&E that 3
-would also mothball Rancho Seco.
This proposal is being 4
reviewed by the Board and SMUD management, along with a great 5
many other options.
The public disclosure of the PG&E proposal 6
has obvious impacts on plant personnel.
For reasons of 7
confidence, I prefer not to discuss the many other proposals or
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their content..
9 During the search for a general manager, the Board 10 considered many candidates.
As with any high level management 11 search, numerous rumors are generated and some publicized 12 concerns over specific candidates.
Some of the rumors 13 generated concerned many of the plant personnel.
The Board has 14 selected Mr. Richard Byrne as a new general manager.
Mr. Byrne 15 will take full responsibility on November 2nd of 1987.
Mr.
1 16 Byrne is from the Massachusetts Municipal Electric Company.
17 Lastly, my own resignation announcement impacted 18 plant morale.
As you know, we are an elected body and each of 19 us represents a different ward and a different group of 20 cdnatituents.
Each of us approaches issues from a different 21 angle.
Sometimes this can lead to a great deal of political 22 posturing.
We reached a point late last August where I felt 23 that posturing amongst my colleagues was somehow manipulating 24 our ability to keep the main objectives of SMUD in view.
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25 resigned, feeling that perhaps that might cause a refocusing of s
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myfcolleagues' priorities, and a new member's input would be of s
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2 valua.' My. colleagues did refocus their attention and I was i
3 persuaded to return rather than a new member being appointed.
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In summary, alliof these actions have had impacts on 5
-plant personnel, and I believe that is now beingl fairly well 6
brought to an and and I believe the morale will now become much, 7-more positive.
The full Board supports the safe restart of-
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<.. Rancho Seco.;.We. fully support Mr.cAndogninicand his team.
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'9 hold Carl responsible and accountable for-the plant's readiness 10 and for-its restart.
The new permanent management. team is j
11 producing positive results and making good progress.
12 You.w'ill hear about that progress during the rest-of i f 13 the presentation, which I would now'like to turn back to Mr.
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i 14 Andognini.
15 CHAIRMAN ZECH:
Fine.
Before you start that let me i
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'16 just make one brief comment.
I think the. Commission certainly 17 appreciates the-fact'that your financial considerations and 18 your high level management decisions.are your business.
Our 19 business is safety; safety of operations.
And whereas we 20 respect your right to choose your own destiny in those 21 management decisions that you've alluded to, our concern would 22 be only where they might impact on safety.
And so today, I i
23 would' hope we could focus on safety of operations for the i
24 future and with the confidence that this commission has primary 25 responsibilities for assuring that the public health and safety
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l' will be protected if and when that plant starts operating
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again.
3 So those are our primary focus.
We recognize that
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4' you have other important decisions ahead of you, but I would 5
' hope today we could focus on the safety aspect of if and when 6
that plant may operate again.
7 Mr..Andognini, you may proceed.
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~MR. ANDOGNINI:
,Thank you, sir.
I'd like to turn itL 9
over to Joe Firlit, Assistant General Manager, Nuclear Power 10 Production.
11 MR. FIRLIT:
Good morning, Chairman Zech and fellow 12 Commissioners.
Today I'd like to talk to you about results.-
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'I'd like to talk to you about the major accomplishments that we i
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14 as a team have done in the area of organization, cultural 15 changes, and the area of technical issues.
1 16 (Slide.)
17 Let's talk about organization.
First of all, Carl 18 talked about the experienced management personnel that we have 19 in place, and we do..
We have good qualified people that came 20 from'various nuclear power plants throughout the United States, 21 and these personnel have demonstrated good records.
In 22 addition to that, I feel that we have a team that has 23 demonstrated leadership from the top down.
24 We have increased our communications to all the k -)
25 people on site through meetings with all employees and also
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through written communications.
We.as a team have sat:down and
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defined by each manager, and when we went:through that exercise 3
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we found some redundancies and we found some voids.
To date, 5
we have~ eliminated those redundancies and we have filled those i
6 voids.
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Part~of those responsibilities include the 48 requirement for;each manager, including myself, to be out in 9
that plant a minimum of one hour per day.
I feel that's-the 10 only way that you can really know what's going on in your 11.
plant, is if you're'out there talking with your people and
.i 12 seeing what's going on.
I can find out a lot when I sit and 13 talk to a maintenance man as to whether or not the procedures
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14' are working right or,.whether or not he's having problems i
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.15 getting parts out of the warehouse.
So I think that's 16 important, and my philosophy is that my managers have to be out l
17 there as well as myself.
18 We also have single-point accountability defined all 19
'the way down through the organization'n.
As each of these i
20 directors and managers talk to you today about their 21'
-organizations, you're going to notice that we do have single-22 point accountability.
1 23 (Slide.)
24 "ne have made a major realignment of our Nuclear 25 Quality Assurance Department.
Today, John Vinquist reports J
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directly.to our Chief Executive Officer.. Also, I'm very 1
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,. impressed..with John's. leadership in that area, and he has 3
staffed his organization with well-qualified people.
Not only 4
has he done that but he also has selected multi-disciplined 5
people in the QA organization.
He has people from health 6
physi,cs, chemistry, he has some people from operations and i
7 maintenance.- I feel he has a good, strong organization, and 8
that is.to my. benefit..
9 We have increased our maintenance and our gperations 10 staffs since our trip back in 1985.
For instance, in the 11 maintenance area we've increased from 235 to a total of 260.
12 That represents a 16 perc'ent increase in the maintenance area.
3 13 In the area of operations, we've increased from 95 to a total
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14 of 103, or an 8 percent increase.
15 (slide.]
16 Let's shift gears here and talk about cultural 17 changes.
You and I both know that you do not have cultural 18 changes that occur overnight; they take time and they take 19 nurturing.
But I want you to know that the Nuclear Quality 2Q Assurance Department is involved on a day-to-day basis with our 21 operations, and we want them involved with our operations.
22 For instance, we've asked the Quality Assurance 1
23 Department to do daily surveillance of our control room, and j
24 we want to make sure that our operators are paying attention to k.,)
25 their responsibilities and that discipline is being maintained'.
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- 1L And.not.only are they doing'this during the-day shift, I've l
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, asked John to also_have hisspeople, check.our operators out g
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.during the back shifts, and that is occurring.
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At one time,'the priority.of what,got done in our 5
plant was determined by the Maintenance Department.
The-6 management. philosophy of this team is that is wrong; the 7
-operators ought to determine the priorities of what goes on in 8
. terms of. maintenance.J,We.do not want our< operators working 9
around equipment that does not work as it was' originally 10 designed.
11 Housekeeping has improved and it's getting better.
12 Commissioner Zech, I can remember very well when you walked the 13 plant with me at Palisades and you told me that housekeeping is C"
.s 14 a* direct reflection of the attitude of the people, and I 15 believed you and I have learned from that conversation with 16 you.
We're making a concerted effort to make sure that 17 housekeeping continues to improve.
In fact, we have designated 18 a special team of people and we have given the team leader the
.19 resources in terms'of money and personnel to' clean our plant 20 from top to bottom, and that is occurring today.
21 We are no longer doing just the minimum.
I think at 22 Rancho Seco at one time we were accused of doing the minimum 23 regulatory requirements.
That no longer exists, and I think we 24 can demonstrate that through examples.
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25 Carl had. talked about 33 SSFI-type inspections that t
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-1; we'are doing on our systems.-
In. addition to that,-we have.
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- . committed to do.45.more after< restart.
'I think that is-
- 3 significant.
When you hear about our test program today, it's.
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not going to be a component. test program, it's going,to be an
.5 integrated test program.
I think that clearly-demonstrates
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6 that we are doing more than the minimum requirements.
7 ffe have established a fitness-for-duty program.- We I
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. ; received _.an.lINPO. Good Practice for.it.and we also have a buy-in l
9 by.our unions.
10 COMMISSIONER ROBERTS:
I'm sorry, what was that?. You 11 have what?
i 12 MR. FIRLIT:
We have a fitness-for-duty program.
13 COMMISSIONER ROBERTS:
And what was the last phrase?.
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14 MR. FIRLIT:
I said we have a buy-in by the unions.
j 15 We have two unions out there at the District.
l 16 CHAIRMAN ZECH:
The union has agreed; is that what j
17 you mean?
18 MR. FIRLIT:
That is correct, sir.
19 In addition to that, we are nurturing a quality 20 attitude.
We are developing a climate that is not only 21 conducive to identifying problems, but we have told our people 22 that we want them to do it right the first time.
We have told 23 our people that we will be judged, when we start this plant up, 24 by how well the plant runs, not how many maintenance orders we L()25 work off.
We want a quality job and we've-been stressing that
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1 right down through the organization.
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.3 ULet 4 talk about soge'of the major accomplishments in
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4 the technical area.
I feel that de have done a thorough review
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5' of the problems that exist at Rancho Seco, and I think we have 4
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.our arms around the problems today.
We have developed not only
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7 a short-term program for restart, but-also we're looking r
8 furtherfahead,.long range.
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N We'havetakenandjustifishthokeitemsthatcouldbe~.
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.10 delayed ntibafterrestartandwehavere'viewedourmethodof 11 justification with the NRC, and we have their concurrence at 12 this point. 'We also have developed a comprehensive system i
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13 review and t'est program, and you'll hear more about that today.
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' 14 (Sliple. )_
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15-We'have made a significant reduction in our 16 corrective maintenance backlog.
We have gone from 5200 in 17 April of this y, ear to less than 1900 today.
And I;Uant,you to 18 know that we are not satisfied with that number and we will 19 drive it down further than that.
We will not start our plant 20 up with any pieces of equipment that would affect the safety of 21 our plant.
22 In addition to that, we have established around the 23 clock coverage, not only in maintenance and operations, but 24 also in healthy physics, 'hemistry and engineering, to make c
., ) 25 sure that we get the work done in a timely EMemer.
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. COMMISSIONER BERNTHAL:. 'Say that again.
You
'2-mentioned-5200,.but where are you now?'
3 MR. FIRLIT:
We're less than 1900.
- 4' COMMISSIONER BERNTHAL
'I'm sorry, I missed that.
L 5
MR. FIRLIT: -And we're driving that down.
~6 COMMISSIONER BERNTHAL:
Where do you expect to be at-
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your-projected restart date?
8. c,
_.MR. FIRLIT:,_Our. goal is.to have not more than, say, 9~
oneor two' months,' backlog.
And I think that's comparable with 10:
some of the plants we have seen come up to restart.
j 11
'In terms of INPO' accreditation, all of.our operator 12 training programs'have been accredited by INPO.
We have six 5-(di ' 14
.-been submitted to INPO for their, review and we'll be ready to j
j 15 meet with them either in the latter part of this year or the 16 first quarter of next year, based on their, schedule.
I 17 (Slide.)
l
'18-We h' ave made a significant number of plant 19-modifications.
We have identified 450 that we want to do 20 before restart, and we have completed to date a total of 376.
That includes a'll the drawing updates, also.
21 22 Some of those modifications are listed below.
For
.23 instance, we've installed two new diesel generators.
We have 24 also upgraded and tested the 170 Limitorques that are at our 25 plant.
We have completed a' total of 165 out of that 170, and
R;
',. &lj' 4
'20
. (* "
gei
'ii those remaining ' five,will be' completed before restert. -
'~
t 32, h have.taken 'a-look at ou::/ procedures and.we're 19 g,.
f a'>
h 3
upgra' ding c$r procedures.
We'have, revised'our QA program not' y.
.. o "4
lonly to reflect the organizational changes that we have.made, 5
but also:to clarir our QA proo am.against the Standard Review fPr' gram.
Wehaverev[seda.bdNpgradedatthispointallofour
,L6' o
y 71 6mergency operating procedures and have incorporated into then
,b,
,/
s
.the human"fac, tors,. issue. Se are. cur'rently upgrading our 8;
' casualty procedures and.they bill be totally done before 9
10 restart.'
~11 (Slide.]
12 I'd like.to talk about some of the major milestones
'13 because I think that indicates results to ne.
We have indeed f'W'.[.
' 14 completed our steam generator eddy current testing.
We have 15 completed the decay heat system outages, and we also completed 16 the 35 reliability starts on our two new diesel generators 17-successfully.
We have also completed,the integrated leak rate 18 test, and just recently thin past week we've completed the 19 condenser vacuum test, and we completed it 30 days in advance.
20 And we wanted to move, tha; forward because we have reviewed Reg
,71 Guide 1275 and in there it clearly indicates that the majority 22 of the scrams on a plant starting up is due to the balance of 23 plant.
24 That ends my presentation so I'll be glad to answer h
25 any questions that you may have.
'21
'1
. CHAIRMAN ZECH:
Let's move along, pleano.
o2
.MR.cFIRLIT:At this time,-I'd like to introduce John 3
Vinquist who is the' Director.of Quality Assurance.-
- 4 CHAIRMAN ZECH:
Thank you.. You may proceed.'
- 5-(Slide.).
6 MR' VINQUIST:
. Good morning, Mr. Chairman,-and 7
members of the Commission.
My name is John Vinquist, I'm the b
8 Director of Nuclear. Quality at. Rancho'Seco.
I am here to 3
I 9
, describe the' actions both completed and ongoing-to ensure that 10'
.our quality organization is capable of verifying'our ongoing 11-
. restart activities are being performed in a quality manner.
In 12 addition, these same actions are designed to assure a capable 13 and functional quality organization after restart.
- (,,
- 14
.(S11de.]
'15~
These actions are directed at what I believe are the 16 three key ' elements which, when properly integrated, form.the i
1 17 basis of a successful quality organization; namely, people, 18 '
programs and structures.
I will address each of these*for you.
19 (Slide.)
20 Although I mentioned structure last, I will address 21 '
it first.
This slide shows the present quality organization.
22 In contrast to the previously fragmented organization, all 23 quality functions have been consolidated into one organization 24 which reports directly to the CEO, Nuclear.
That organization
(;[
25 consists of the Audit Surveillance Group, the Quality Control
22 11 Group'and the. Quality Engineering Group, all reporting to me.
.2; The first two.of these groups perform traditional.
3-quality functions. -The new Quality Engineering Group was.
4 4-formed to provide a solid technical interface between the
'5-quality and production organizations.
The quality organization 6
shown is presently, functional with written charters and 1 accountabilities.
8 (Slide.'].
u,4 9.
To be effective, any organization must be staffed 10' with adequate numbers of qualified, competent and dedicated 11
. people.
To achieve this end, we have increased the number of 12 SMUD-QA staff positions from 30 to 70.
We also presently s, - 11 3 employ 84. contractors,'mainly QC inspectors, to handle our I
i
~)
' 14 workload during the present outa,ge.
15 The Quality Department management and supervisory 16 staff has an average of over 12: years' nuclear experience.
.All 17-quality inspectors and auditors are qualified to ANSI 18 requirements.' The Quality engineers are required to have a 19 degree in an engineering discipline from an accredited
.20 university.
In addition, several of the Quality staff hold 21 professional snd engineer licenses.
22 Our Training Department has developed a technical
=23 trainer refresher program to maintain our technical skills, I
24 which is being accredited by INPO.
i
( ) 25 Finally, in what I believe to be one of the strongest l
l Ci______-______-----
- 23-i 1-
. enhance, we have addedLto the-Quality staff people with.various
-2..
production. backgrounds.
We now have or are~ bringing onboard 3
Lpeople with practice hands-on experience in op* rations, ud.
former SRO's'-- health physics, chemistry, maintenance and
.5' engineering..We're not just'T-crossers and I-dotters, but i
6 people who have implemented nuclear quality programs at SMUD
'7 and other utilities who understand the importance of,the
,.8 programs.and.who,,are. committed;to their proper implementation 9-at Rancho Seco..
10 (Slide.)
11 Wo.have made several programmatic improvements since 12 our last meeting with you.
First, our revised Quality Program 13 Manual has been completely rewritten and received NRC approval.
' 14
~This manual clearly. reflects the requirements of Appendix B in 15.
the Standard Review Plan, spells.out our commitments to the 16:
NRC, and describes the SMUD nuclear organization.
17 second, we have strengthened our Quality Assurance 11 8 Audit Program with' respect to the pr6 duction. organization and 19 our outside vendors.
On the production side, we have revised 20 our audit schedule process to ensure timely performance while 21 allowing adjustments to quickly assess problem areas identified 22 as a result of regulatory, industry or management concerns.
23 We have sharpened our audit skills through our own 24 vertical audit of engineering activities and our. participation
( f 25 in the SSFI-like EASTRP program.
I
+
s
~24-1
~
1-In addition, the Offsite Safety Review Committee has
'N L{dij
-2'
.formedLa subcommittee composed of SMUD and consultant personnel.
3
'to monitor ~ Quality Department activities to assure proper-4
. execution.
s
- 5 We now require onsite audits of vendor facilities by
.6 SMUD or utility' group teams in order to qualify.for our 7
approved? suppliers. list..The only exception to this'is when 8,.,
,the. supplier.has.been previously approved by an industry-9 recognized: supplier approval agency ~such as Ace Register.
We 10 have also increased the number of vendor auditors from one to-
-11 four.
12-The need for these enhancements was driven home 13
.(~.
recently;when it.was discovered that the potential existed for y
4 14
. unacceptable bolts being installed in the plant.
Fortunately, using both our past and existing materi,a1 control procedures, 15 t
16 we were able to track all of the bolts furnished by tho' 17 manufacturer in question to either warehouse stock or non-18 safety applications.
The bolts installed in the plant have 19 been identified and are presently being replaced.
Those in 20 stock are quarantined and will be disposed of.
21 Although this problem reinforces the need for ongoing 22 improvements in the material control area, the combination of 23 the improved vendor program and processes for internal issues 24 currently in place will significantly reduce the potential for
-l ) 25 this type of problem in the future.
- )
i,
-25' i
1~
We are in the process of strengthening our Quality
- .v
-.[/
2 Surveillance Program.
We have added people with hands-on 1
3
' experience'who provide daily surveillance coverage of f
4 operations activities and regular surveillance of chemistry, 5
maintenance, security, material control among others.
Our 6
surveillance personnel provide online assurance to management 7
that quality requirements are being implemented.
8.-
, COMMISSIONER BERNTHAL:. Could you just comment for:a 9
very brief-moment on how you carry out your surveillance?
Do l
. 10-you'actually.have designated people throughout the inplant
-11 organization, or does surveillance literally mean that somebody
- 12 walks in:and' observes for some period of time?
How does it 13-work as a practical matter?
s,
~
14 MR. VINQUIST:
We have people on the Quality staff 1
15 that report to the surveillance supervisor, and these people go 16 out and walk the -- the operations surveillance person goes into the control room, he observes the activities going on in 17 18 the control room, he checks the control room logs, he watches 19 the operators perform procedures, he goes out in the plant with l
20 the operators-and watches them perform.
He provides written 21 reports to Mr. Kauter, and obviously if he picks up something
' 22 on his rounds he reports it immediately to his supervisor and l
23-it gets corrected, t
24 COMMISSIONER BERNTHAL:
I think what you're doing is k,
25 probably conventional practice and there are certainly many
_______.m_____mm-------
)
]
2'6 i
1 ways.to skin _a cat, as'they say.. What I would suggest.is that.
g Lg,f 2
you'might consider at least;a system where you designate some j
3 of your very best people'that have jobs throughout the plant as 4
=part of your QA organization.
It's a concept that I know at 5-least one utility has implemented'and is reminiscent in a 6
different sense of the dtasignated rep program.that the FAA uses i
-7
'in a different context entirely, which this commission has 4
8 4 discuss,ed,}n,. fact,in its.own op.erations from. time to time.
The c
9 idea being, though, that the normal at-work personnel 10 themselves have among them people that'have a dual role, in a 11
' sense, that are the very best and are working and surveilling
['
12 at the same time with their colleagues.
'I think it's not a bad h' '
13 idea, and it's just an idea I would throw out to you.
14 MR. VINQUIST:
Thank you.
We have significantly
' 15 enhanced the quality control inspec ion program.
As previously,
'16 mentioned, all QC functions have been' consolidated within the 17 Quality Department.
We have' implemented an aggressive
.18-inspection program of maintenance, modifications and material 19
-receipt and shipment including rad waste.
We have strengthened 20 QC involvement in the System Review and Test Program to assure-21 that tests are performed in accordance with approved procedures j
-22' and acceptance criteria are met.
i 1
23-Finally, through the efforts of the entire quality 24 organization, we have strengthened our corrective action
.i
. - 25 programs, including non-conformance reporting, corrective j
t
{
e b
27 Il
. action requests, trend. analysis and stop-work directives.
We 4
p
- \\ij '
2 have broadened our. requirements ~for quality review and approval 3
of. procedures, design packages, work requests and procurement l
-4 documents.
All of these actions have been or are being 1
5 accomplished to assure management of quality in the workplace, 6
.and ultimately the. safe operation of the plant..
7 (Slide.]
,<..8
.This, final., slide.. summarize.s what we've accomplished
-9.
to ensure that.our structure, people and programs are'in place ilo iso that the quality organization can perform-its vital role in i
11 the' restart and subsequent operation of Rancho.Seco.
There is a' commitment to quality'throughout the nuclear-organization, 12-13
(.-
and you will hear that commitment echoed in the presentations 14 to follow.
15 Thank'you.
Any questions?
16 CHAIRMAN ZECH:
No.
Let's proceed.
Thank you very 17 much.
18 MR. VINQUIST:
I would now like to introduce Mr.' Dan 19 Kauter who will brief you on the subject of operations and 20 maintenance.
21 CHAIRMAN ZECH:
Thank you.
You may proceed.
20 MR. KEUTER:
Good morning, Commissioners, my name is Dan K'auter, I'm the Director of Nuclear Operations and 23 24' Maintenance at Rancho Seco.
I'd like to tell you about the 25
. x progress made in operations and maintenance since our last
_m______i
I
~
[
~
)
28-L j l'
meeting with you.
2 (Slide.).
3 The SMUD. nuclear operations organization is very 4'
stable with all management positions filled.
There are three' 5
operations' superintendents reporting to the Manager of
.6 operations,,all of which have active SRO's.
There is a l
7 superintendent' responsible for each. major functional area, l
8,..,,3....which arefplant.(equipment, operations. personnel and operations j
9-programs.
Also, there is a supervisor responsible for
.10
-operations engineering and STA programs.
j
~
'll The Department has a total of 103 operations I
12 personnel; we are staffed for a six-crew rotation with 12
'; n 13 operators per crew.
This includes six' licensed operatoro per i
' 14 '
crew, even.though our technical specifications only require 15 four.
It includes six non-licensed positions,even though the 16 requirements are only for two.
~ 17 To maximize the experience on each crew we are-18 currently implementing a five-crew rotation of 14 people per, 19 crew through 100 percent operation.
20 We have supplemented our operating crews with on-21-shift industry management advisors to maximize on-shift 22 management and test experience.
These seven men are all SRO 23 experienced managers from B&W plants and function to provide 24 additional management and testing advice to the shift k) 25 supervisor.
1
~
(
,4 29 i.'
11
'(Slide.]
Q",
InLpreparation for restart, extensive operator s -
-2 3
training has been' completed.-
Each operator has completed six
{
~
4
. weeks.of training at the B&W simulator at'Lynchburg.
This is 5
about three times the industry average per operator.
During-tNesimulator' training,alloperations.crewswereevaluatedby 6
7 SMUD management including.the Manager of Operations, the.
u
., ; p,. 8
,, training manager,.myself and' Joe Firlit.
9
-In addition, INPO evaluated several crews during the 10 most.recent simulator training.
INPO had no concerns and very 11:
positive' feedback on operator performance and management 12 leadership.
13 Presently, all operators have received more than 400 14
' hours of plant modification training.
Some additional 15 procedure training is scheduled prior to' restart.
Specific
'.16 hands-on training is being conducted in the field for items 17-identified during the December 1985 event such as local 18 operation of remotely-operated valves.
19 Operations personnel participate in startup testing 20 to gain training and experience on plant systems.
Also, we will be conducted an expanded power escalation program with 21 22 holds at'four i' educed power levels to gain additional 23 experience at reduced' power.
Each power level will be 1
24 maintained for a minimum of five weeks to allow one complete p
M 25 operator shift cycle.
30 1
All SMUD operators and STA programs have received-2' INPO accreditation as of April 1986.
Additionally, all 3
licensed operators have been examined by the NRC within the f
4 past two years.
j l
l 5
COMMISSIONER BERNTHAL:
When was your last
]
l 6
examination?
l 7
MR. KEUTER:
July of this year.-
.g. g, 8,,,,
. COMMISSIONER BERNTHAL:
What,was your pass / fail?
9 MR. KEUTER:.We had 14 operators go up, we had 12 10 successes, we had one that required a remedial due to the oral 11 exam and one that required remedial training due to the written 12 exam.
Those both have been since re-examined and passed.
13 COMMISSIONER BERNTHAL:
Thank you.
~
14 MR. KEUTER:
We are confident that our operators'are 15 well trained and ready for power operation.
16
[ Slide.)
17 In preparation for restart, a revision of the 18 emergency operating procedures has been completed.
Also, a 19-major upgrade of casualty procedures is being conducted.
These 20 reviews include incorporations of lessons learned from the
-21 December 1985 event, the latest B&W technical basis document
{
22 guidelines, and plant modifications.
Also, all remaining 23 system and plant operating procedures will be revised to l
24 reflect plant modifications completed during the outage.
After
) 25 restart, the remainder of the operating procedures will be 1
se.
l d
31 1
upgraded as part of a' site-wide upgrade program.
2 Operations personnel are controlling all test 3
activities.
A procedure has been developed to control the 4
plant heatup and power escalation testing.
The procedure 5
provides various power level holds and wil'l'be used not only 6
for. testing but'also will be used to ensure the people, the 7
' equipment and procedures are ready before an increase in power-
- 8.,
to the:next level...
.,y, 9
(Slide.)
10 To insure complete operational readiness, we are 11 performing a self-evaluation based on the INPO performance
)
12 objectives and criteria.
This progrsa involves six major _ areas
.,ith a total of 65 criteria to support each of these areas.
13 w
ys
('
14 The program results require approval of upper management
~
15 including the CEO, Nuclear, prior to restart.
Additionally, 16 tho' program will receive an independent review by an outside 17 consultant.
18 During the.past 18 months, we have implemented a 19 thorough operations readiness program which includes an 20 increase in operations staffing, a significant increase in 21 training and a major upgrade in plant operating procedures.
22-That concludes my presentation on operations.
Are 23 there any questions in that area?
i 24 CHAIRMAN ZECH:
Thank you, we will just move right
)
) 25 along.
i l
u
.o 32 1
MR. KEUTER:
Okay.
Next,-I'd like to discuss the l
p[,.
\\.
2' Rancho seco Maintenance Program.
3
.(Slide.]
4 At the time of the event, the Maintenance Department 5
was organized into four production shops; electrical', I&c, 6
mechanical and facilities.- Administrative activities such as 7
planning, procedures, budget, training were split up into these
. 8..
, shops.,We h_ ave restructured..the Maintenance Department into a 9
production'and programs matrix.
With this reorganization'we 10 have reduced the administrative workload on the production line 11 supervision, thereby increasing their in-field supervisory 12
' time.
13
-(. 3
.Also, major maintenance programs such as planning, 3
~"
14 preventive maintenance, procedure s and training have been improved through the centralized programs cnd planning groups.
15 16 We are actively interviewing people to fill the 17 vacant Maintenance Manager position.
The Ac. ting Maintenance 18 Manager, Dave Brock, has,19 years of nuclear experience, eight 19 of which is in nuclear maintenance, including B&W experience as 1
20 a maintenance manager at Crystal River.
Mr. Brock has 21 committed to remain with Rancho Seco until restart and a full-22 time ~SMUD maintenance manager is onboard.
23 (Slide.)
24 To upgrade our Maintenance Department we have
'25 implemented all new administrative control procedures based on
't 33.
4 1
1-
-the INPO Conduct'of' Maintenance Guidelines.- One of the most l
_2-recent additions is our'new automated work control system.'
3' nucleus..This system provides for improved tracking, trending,
)
U
'4 processing and documentation of work requests. 'Also, to insure I
5'
-the Maintenance Department is supporting plant needs,.the' I
-6
. operations Department now reviews and prioritizes all work 7-requests.
j
.8m l
. Additionally,.each work. request receives a detailed quality review both before and after implementation, along with
.9
~10
.an increased use of' quality hold points to insure better
(
11 monitoring of critical maintenance activities.
12 As I mentioned briefly before, a new centralized 3
y 13 planning section has been implemented.
We have also o
~14 implemented en integrated site-wide scheduling system to factor
'15 all activities into our~ daily work plan,, including corrective s
16 maintenance, preventive maintenance and surveillance testing.
17 Our new program also includes improved troubleshooting and i
failure determination to prevent reoccurrence of equipment 18
'19 problems.
20 (Slide.]
21 In the area of corrective maintenance our emphasis
-22 has been on improving work instructions along with reducing the 23 backlog of open corrective maintenance work requests.
We are 24 committed to achieving as low a number of open work requests as 25 possible without reducing the quality of work.
Our goal is to
- - - ' ^
1 34 I
have less than a one-month backlog by the time of restart.
f'S 2
Additionally,-there will be no open r3 quests that affect the l-3 operability of' equipment important to safety.
Management will 4
review all open work requests and justify those not required 5
for completion for restart.
We are working closely with the I-6 resident inspector in Region V to ensure these justifications 7
before restart.
L 8
.Since January 1986 we have completed 25,200 corrective maintenance work requests, 6,200 preventive 9
l-10 maintenance work requests, and about 400 design changes.
In an 11 effort to further reduce the backlog, we have instituted around t
12 the clock, 24 hours2.777778e-4 days <br />0.00667 hours <br />3.968254e-5 weeks <br />9.132e-6 months <br /> a day, seven days a week coverage of
(',
maintenance and support organizations 13 14 (Slide.]
15 This slide graphically shows our open corrective 16 maintenance work requests.
There were about 5200 as of April 17 1, 19871 our present level,is approximately 1900 open 18 mainten,ance work requests.
19 (Slide.)
20 I have also placed major emphasis on development of j
21 our preventive, predictive maintenance program, which is based 1
.22 on INPO and EPRI preventive maintenance program guidelines.
23 presently, about 25 percent of our Maintenance Department 24 workload is spent conducting preventive and predictive k_)
25 maintenance activities.
Our goal is to increase this to 50 l
1 l
- .g 35 1
epercent.
2-We-are in the process of implementing a new PM l
3' program.which divides equipment into three areas based on l'
4 equipment function.
Equipment'which is important to safety.
L5 will have all of its PM tasks completed before restart.
6 Equipment which is important to plant reliability will have i
7 their PM tasks completed'in 1988 or by the.end of the next 8
refuiling ; outage.g.
. ;:s..
9 COMMISSIONER BERNTHAL:
In the area of predictive
..10 maintenance, can you.give me.a very short, brief summary of l
11' what steps you're taking or contemplating to take advantage of 12 latest technology in predictive maintenance?
4 13 MR. KEUTER:
Yes.
We've used vibration analysis,.
..I
~~
14 we've got state-of-the-art equipment there.
We use oil 15 analysis, we're using a new thermal technique in looking at 16 breakers.
We've basically pretty much used state-of-the-art 17.
. equipment..We're trying all out.
In fact, the basis of our I
18-preventive maintenance program is predictive maintenance.
We 19 figure if we can predict it before failure it's a. lot better 4
20 than doing routine preventive maintenance.
21 COMMISSIONER BERNTHAL:
So you do have a program, j
22 though, where to some extent at least you're wiring the plant l
23 and proceeding with that sort of capability.
i, 24 MR. KEUTER:
That's correct.
In fact, I have a book j
(
25 here I'll leave uith you.
This is our preventive maintenance l
l 36 12 program right here.-
I'll' leave this with you.
It summarizes
(
2 and gives the procedures of our preventive,. predictive
- 3' maintenance. program.
i 4i CHAIRMAN ZECH. Fine, thank you.
5 MR. KEUTER:
Our Maintenance Department now has a l
l 6
-comprehensive proceduralized program and a staff with I
7 experienced people.- We have the people, the program and the
.. equipment,to support / safe restart;of the. plant.
g.,8.t.,.
-9 That concludes my presentation.
If.there are no j
i
'10 questions I'd.like to introduce Greg Cranston who will discuss
.11 the. nuclear engineering activities..
.i 12.
CHAIRMAN ZECH:
Fine, you may proceed.
13 MR..CRANSTON:
Thank you.'
Good morning, Mr. Chairman
~'
14 and Commissioners.
My name is Greg Cranston, I'm the Manager
- 15 of Nuclear Engineering.
16-(slide.)
17
.Today I would like to. discuss the organizational 18 readiness of the Nuclear Engineering Design Group, our 19
?ngineering Action Plan which has been established to insure 20-
' that we continue to strengthen and maintain a solid, credible
- 21
' organization, and our ongoing activities including successes to-22 date.
23 (Slide.]
24 The Nuclear Engineering Department is ready to
.s 25 support restart.
The department has a nucleus of SMUD
___________.__m_.m____.__._..._._
Cs d
x,
.y, 2
n.
37 1
experienced' employees with added. management support to. maintain 2
a strong organization.' The~ organization is basically comprised 3
of mechanical and electrical design teams and an engineering 4
support organization.
Additionally, a restart engineering 5
manager has been assigned temporarily to facilitate timely 6.
closure of all restart engineering actiivities, i
7 (Slide.]
8
,.y,Within, engineering support, Nuclear _ Engineering has a s
9 dedicated plant support group to facilitate the coordination 10 between engineering and plant testing and operations.
A 11 configuration control' organization is in place to improve the 12 design change package process including as-built reviews and 13 document close-out, cost and scheduling has been matrixed into
.. -- y 14 Engineering so that Engineering activities can be more.
15 effectively p1,anned and scheduled.
A cognizant engineer is 1
16 held accountable to those schedules and for completing a
)
17 quality job on time and within budget.
I 18 CHAIRMAN ZECH:
Would you go back to that chart l
19 again?
Please explain what those cross-hatched lines are.
I think I understand it but I'd like to hear it from you.
20
- 21 MR. CRANSTON:
Yes,, sir.
We've implemented the 22 restart engineering management function to facilitate close-out
-23 of the activities to support restart.
That function will 24 disappear after restart, at which time that block in the upper righthand corner will disappear and the cross-hatching will
. 25
..n s s.,
- g..<
38-1
'l disappear back to our:--
y.-
3
. j?
12 CHAIRMAN ZECH:- Then be removed to the left, hand side 3
of the page and you'll keep in place'those responsibilities on 4
a permanent basis after.you restart.
l 4
5 MR. CRANSTON:
That's correct.
6'4 CHAIRMAN ZECH:
All right,'thank you.
7-(Slide.]
8
,,~.,M R.,.,C R A N S T O N sTo: assist.in, strengthening the 9
engineering design activities, the Engineering Action Plan was 10 developed.
This: comprehensive plan identifies the process, 11.
Echanges, cultural changes, reviews and activities necessary to 12 continue 1to identify any weakness and to establish methods to
- f-13
("- (t strengthen and maintain a solid, credible design engineering 14 organization.
In the process area,' procedural changes have been-15 16 made and are ongoing.
We are establishing-programs that will 17 ensure that our engineers understand our accountabilities and 18 responsibilities to maintain th's Rancho Seco Engineering 19 foundation and to support plant. operations.
20 We have conducted self-imposed reviews and audits in 21 addition to receiving reviews and audits from outside groups 22 including the NRC.
The NRC has conducted its augmented system 23 review and test program inspection, and additionally, an SSFI-24 type review called Expanded Augmented System Review and Test
)
25 Program.
Expanded ASTRP has been implemented by the District
__.____________=....____._.___.__&.__
N
[ v:
39-1 to support: and-to ~ supplement the NRC ASTRP.
1 2
The' Expanded ASTRP will review all 33 select systems 3
prior to restart and approximately 45' additional systems-after I
.l 4
restart.
In addition, for the 33 select systems an outside l
l 5
review'by-an architect engineer has been completed on 6-calculations done during this outage.
Also, SMUD QA has 7
conducted vertical audits of engineering work.
8 Wo have compiled.the results from all'these reviews
.and are incorporation necessary action into the Engineering-
'9 10.
Action Plan.
We are using the information received from these 11 extensive reviews to develop corrective action that will insure 12
.that our design-supports a safe and reliable' plant.
13-
' Additionally, Engineering's method for implementing 14 these programs and responding to concerns was evaluated,by the 15,
Technical Oversight Committee and the Nuclear Advisory Group, 16 each composed of industry experts.
After restart, we will 17 continue to have t'echnical and programmatic reviews coordinated' 18 with SMUD Quality Assurance to verify that the technical 19.
adequacy and quality of engineering work activities' continues.
20 (Slide.]
'21 Some of the' key elements already implemented include
'22 changes to improve the design change package program, the 23 incorporation of-the INPO Good Practices in our calculation
.24 procedures, the use of design change package closure checklist
).25 and design assurance engineers to verify the completeness and
W
+
'4 e
e s
40 i
l' adequacy of engineering document closecut.-
g 2.
In conjunction with the NRC Augmented System Review
. g, 3
and Test Program Inspection, Nuclear Engineering has resolved
-4 39 of 45 issues requiring-engineering action prior to restart.
l 5
We'are confident that the NRC's ASTRP inspection team is
.6'
' satisfied with the progress and plans in place to close out.the 7
concerns.
8
.And independent review of outage-related calculations J
s..
'9 associated with the 33 select systems has been completed.
4
- 10 We've evaluated each observation and-will make any corrections-11 necessary to enhance these design packages prior to restart.
12 SMUD Quality Assurance has completed an'in-depth 4
13-technical audit of four systems to assess their functional
-(" - !
14 adequacy.
These include emergency-feedwater initiation and 15 control and the new diesel generator electrical distribution 16 system.
17 In the final report, QA did generate 12 findings 18 applicable to' nuclear engineering, and we have completed our 19 response to audit,and have established 19 action commitments 20 designed to enhance SMUD engineering.
Corrective actions 21 identified by all these reviews are being factored into our 22 short and long-term improvement programs.
.23 (Slide.)
24 Cable tracing walkdowns to confirm cables are routed 25 correctly are nearly complete with 617 of the 622 cables
4.-
6 41 1
-1.
. traced.
Design engineering has completed over 400 design-
{
2 change packages for incorporation this outage.
'Significant 3
enhancements to plant. safety'and reliability will be realized f4 as a result of these design modifications'in areas such as 5
' emergency;feedwater initiation'and control', emergency ~' diesel-6 generators, non-nuclear instrumentation, auxiliary feedwater.
l l
7.
'and-control. room _ heating, ventilating and air conditioning.
i 8
. Wo have. instituted a field problem report trending
.n 9
program as an internal method to. provide feedback in-areas 10 where further design or procedural improvements can be made..
11' We have instituted a productivity improvement program.
12'
.which includen tiie organizational changes and trending program 13 previously discussed.- Additionally, greater utilization of I
'.14 work plans,_ computer tracking, as well,as utilization of.the
~
15 plant P2 computerized scheduling program will be used to assist in providing the necessary visibility and accountability to get 16 17 the job done correctly and efficiently.
18 (Slide.]
19 Rancho Seco continues td pursue design improvements 20 to enhance the safe and proper. operation of the plant.
Rancho 21
-Seco has been actively involved in the development and j
22 implementation of the B&W Owners Group Safety and Performance 23 Improvement Program.
As such, as shown on the slide, Rancho 24 Seco is aggressively implementing SPIP recommendations.
25.
Related to this and based on our review of the recent
)
,1 l
42 i
1 Davis-Besse plant trip, we have purchased and commenced 2
preliminary design on a SMART analog signal selector system to
(
3 enhance'our non-nuclear instrumentation control circuits.
We 4
will continue to use industry operating experience to advance 1
5 our design.
1 6
(Slide.]
I 7
The programs previously described such as,the 8,
. Engineering Action Plan,and those.shown on the slide are 9
ongoing activities which will continue after restart.
We will 10 continue to build and maintain a solid, credible engineering 11 organization to support plant operations.
Thank you.
12 CHAIRMAN ZECH:
Thank you very much.
~,
13 COMMISSIONER BERNTHAL:
Let me ask one' question..Can 14 you give us some sense of the status of.your routing walkdowns, 15 how much you're going to have to do, what problems you have 1
16 uncovered?
17' MR. CRANSTON:
Yes, sir.
Our initial sample was 18' approximately 240 cables that we elected to sample.
We did 19
, find soine problems.
We found 19.
Consequently, we decided to 20 expand our sample to 622, and in areas of concern it included 21 100 percent sample of those lots.
All those problems that were 22 identified have been corrected, and if any additional problems 23 '
are found in the remaining five we will make necessary 24 corrections that are required.
25 COMMISSIONER BERNTHAL:
Thank you.
~
v 43' 4
1 CHAIRMAN ZECH:
Let's proceed to the next-
)
l(i:;)
?
\\
.\\
2-presentation.
3 MR. CRANSTON:'
I'd like to introduce Jim Shetler, i
4 Director of' Systems Review and Test Program.
5 CHAIRMAN ZECH:
Thank you.
You may proceed.
6
'MR. SHETLER:
Good. morning, Mr.' Chairman and j
7-Commissioners.
My name is Jim Shetler and I am the Director of' 8
.the System. Review.and Test. Program.;
I'm; pleased to,be here 1
9 today to share with you our accomplishments and goals for this i
10 very critical portion of the Rancho Seco restart effort.
1 11 (Slide.]
1 1
12-The System Review and Test Program was established as l
13-
)
'an'early part of the District Plant Performance and Management
.(~.
14 Improvement Program to assure an adequate review of past system 15 problems, a proper definition of system functions, and a
'16 thorough test program to guarantee system operability.
17 Last June, the program was expanded to include system 18 functional testing in addition to the original scope of 19
' component and plant integrated tests.
A description of the 20 expanded program had been provided to the NRC in the form of a' 21 -
program manual in early September ~1987.
In addition, an l
22 overview of the System Functional Test Program was also 23 provided in early September.
24 (Slide.)
25 In selecting the systems to be reviewed in the
e 44-r1 program, two categories were-established.
The select systems 1(sc AC/
12 are'made up of those' systems that meet the criteria of either a j
!3 history of, problems or were related to the 12/26/85 event, or 4
were significantly modified or could effect a transient.
Based 5
.upon this criteria, 33 systems were selected for' generation of 6
a detailed system status report and inclusion in the Functional 7
' Test Program.
8, t
' The;s,econd category of systems are classified as the
.9'
- additional' systems. 'These meet the criteria of either having 10-identified problems from the Plant Performance and Management i
11 Improvement Program, or had open work requests as of 7/1/86.
A
{
12 total of-45 systems fall into this category which results in a f,
13 system investigation report being generated.
These systems are
\\m 14 not required to be functionally tested for restart, though many 15 will have some or all of their functions verified'as a result 16 of other testing.
17
-[ Slide.)
18 These investigations resulted in a test program based 19 upon a set of defined requirements.
The verification-of these 20 requirements is established by a sequence of component, systems 21 and plant integrated testing.
These are conducted by using either existing plant procedures where appropriate or special 22 23
' test procedures.
In addition, when it is determined that a 24 certain requirement need not tus tested, a justification is
_,h 25 provided.
e
_________m_-_.______._
.e-
+ --
c 45 1-(Slido.]
l 1
2 This type of flow chart has been generated for each 13 of.the 33' select systems and included as part of the System j
4 Functional Test overview supplied to the NRC in early n
5 September.
The example shown here is for the reactor coole.nt H
6 system.
7 (Slide.]
['
8,,
To control;the performance of the test program, it 1
9' has been integrated into the overall restart schedule.
This 10 references the existing procedures.and special test procedures l
11 that will be used:to execute the program.
In addition, an
.12' overall operating procedure is being generated to control the
]
7(,
.13 plant evolutions and integrate the testing being conducted from
'l 14 the end of cold shutdown testing through heatup and power 15 escalation.
16 (Slide.]
17 The cold shutdown testing consists of a series of 18 component checkouts followed by system functional tests.
The 19 system functional tests are.then logically intertied to the 20 plant integrated tests, such as the loss of offsite power test.
21 This sequencing thep leads to the steam generator secondary 22 hydro test, and then plant heatup.
The succeeding hot shutdown 23 testing program consists of various pressure and temperature 24 plateaus to allow normal heatup surveillance to be conducted.
25 In addition, various special tests will be conducted at hot
____.________m_
Qr}
3*
3s o
s y
1 46
.1' shutdown-including loss ofcinstrument air and-. loss of NNI/ICS
'2
- power.
3 (Slide.]
4 Thi's will lead us into our power ascension testing 5
program which-is planned to consist of four major plateaus 6
. lasting a minimumLof five weeks each before reaching full power-7 operation.. Included.in this program are two' reactor' trips'at.
8.,
approximately 20~. percent.and;80 percent power, and extensive v
9 integrated control system tuning.
The major benefit-of this
^:
101 program will be that each operations crew will have a chance to 11
.go through a complete shift rotation'.at each plateau.
This 12 Lwill allow us to evaluate-the readiness of the plant,
. -( ' '
.13 procedures and personnel in a gradual manner to return to full f ['"
' 14 power.
15 (slide.]
)
'16 In light of the scope and status of our test program, 1
i 17 we are currently _ planning to us,e 254 special test procedures 18 which are.above and beyond any existing procedures.
As you can 19 see, we have 171 of these approved to date with 135 tests l
20 started.
111 tests completed and 71 results approved.
21 (Slide.]
-22 Specific major accomplishments to date include the i
-23 completion of the new diesel generator reliability runs, 24-containment integrated leak rate test, the EFIC cold s
' 25 functional test and steam generator leaks and eddy current 1
1 a_
,._--_____z__-_
m pg
-,i
,s 4
7/,
47'
- 1.-
testing.. ~ Of. course,.we still have major activities ' to complete 2
which. include the loss of off-site power test, verification 3
testing of post-accident' sampling in HVAC systems, and closecut
-4 of.our system status and system investigation reports.
5-In summary, I believe that we have established a (6
comprehensive, quality test program that encompasses component s.
7 checkouts, system functional-tests and plant integrated tests 8
.that'will.. assure,. Rancho Seco.is ready for restart.
9
'Are.there any questions?
10 CHAIRMAN ZECH:- Just one comment.
It's my 11 understanding that the Clinton plant has just gone on 12-commercial' operations and I have been informed that their 13 startup testing ~ program was a very successful one.
I would s
14 suggest that although their plant design is quite different 15 from yours, some of the procedures they've used may be of help i
16 to you and I'd suggest that you might contact them and just see l
3 17 what they did and perhaps learn from their experience recently.
18 It may be helpful to you.
k 19 MR. SHETLER:
I appreciate that input, sir.
We will 20 definitely contact them and talk with them.
'21 COMMISSIONER BERNTHAL:
While we're mentioning 22 Clinton, we don't want to make too much, I guess, of a one-23 plant utility here but that in fact was the utility I referred 24 to earlier when I was speaking about their quality assurance 25 program, which I though't was a bit of an innovation.
And
48 1
they've had.some other interesting ideas generally.ILthinkLin
]
c/[7% -
d
- ( j
2' smanagement'eversight that are worth looking at.
(
3 CHAIRMAN ZECH; All right, thank you very much.
4 AR. SHETLER:
If there are no further questions I 5
would lika to then turn the presentation back over tol Joe 6
Firlit~to-discuss schedule and status.
7.
CHAIRMAN F.ECH:- Fine, let's proceed.
~
-8
[ Slide.]
l
-9 MR. FIRLIT:
Let's take a look at the restart scope
-10 list.
I mentioned earlier that I feel that we have ot:r hands s
11 around the problems today.
I'm sure that there are going to be i:
12 some things that drop out of the system-test program and also
~7 13 the vertical audits that we're doing right now, but I-feel that 14 we have the organization in place to disposition those items 15 that drop out of the vertical, audits in,the test program in a 16 professional manner.
17 We have'taken our method and our logic for justifying 18 these things that we feel we can legitimately delay until after 19 restart and we have concurrence from the NRC regarding our 20 logic.
We have asked John Vinquist in the QA Department to 21 review some of those things that we have written up to make L
22 i
sure that they are written up in a professional manner.
And I l
23 found out that yesterday we had two NRC inspectors from the lr 24' region at our plant yesterday; they reviewed 200 of the things
. ( f 25 1
l that QA had reviewed and there is concurrence that the logic
.=
1 Y
49 l1 and;the process that we;are using is indeed acceptable.
2 (slide.)
3, Let's take a look at the milestone chart.
As you can 4
see, we have met many milestones.- But I would like'to direct' 5
your~ attention to the fout.th line from the bottom where we talk 6
about initial. plant heatup.
Right now there is no reason that.
7 I know of'that we cannot start heating our plant up on December 8
,.5th of this year.
Wo.will.go through an intensive hot shutdown testing program and then we should be ready to start up our-9' 10
-reactor and start the power ascension testing about the second 11 or third week of. January.
12
[ Slide.]
(^
13 Let's talk a little bit about the power ascension,.
' X "
' 14 and I brought this chart back.up because I think it's important 15 to talk about what we plan on doing..For a plant that,already 16 has an operating' license and is in a restart mode, I think our 17 power ascension testing program is unique to the industry.
We 18 have indicated that it is a minimum of approximately five 19 months.
We do plan on having two planned trips to make sure 20 that all the equipment functions properly on an integrated 21 basis.
I 22 And as Jim had pointed out earlier, we do have four 23 plateaus indicated before we reach full power at 40, 65, 80 and 24 92 percent power.
We will stay at each of these power plateaus 25 to provide our operators time to get thoroughly familiar with
}
u l
L.
r 50
(
1 the irocedures and the. equipment.
And I want to point out to v2-yoT that before the operations. people can go up to the next-3 level, they will have to'have managemen't approval by both I
4-myself and Carl Andognini, and'we will not give that approval 4
5 until.we are sure that the people, the procedures and the 6-
. equipment work properly.
7 Wo.have been asked by some why are you taking so:long 8,,
to have the power ascension test that goes over a period of 9
five' months.
And the answer is simple; we cannot afford a
.1 10 mistake.
But more importantly, we cannot afford to lose your 11' trust or.the trust and confidence of the public that we can
~
12 operate Rancho Seco in a safe and proper manner.
13 That' concludes my remarks.
'. 14 CHAIRMAN'ZECH:
Thank you very much.
- 15 MR. ANDOGNINI:
Mr. Chairman, I'd like to make some
' 16 summary comments.
In summary, I'd like to emphasize some key 17, points.
18 (Slide.]
19 I have the responsibility and authority for the safe l
20 restart of Rancho Seco, and the Board has supported that with 21 the'necessary resources.
We will continue to develop a strong 22 management team and the implementation of a cultural change, l
23 which is already visible at Rancho Seco.
We will continue to t
24 develop and implement programs such as SSFI-type audits to 25.
insure plant and management systems achieve excellence.
For 1
1
__.__J___&__._m
____m.
j
[...
.51 l
i 1
example, when Rancho Seco restarts, we will have completed more-2l
! vertical type audits than any other nuclear power plant.
3 We have an aggressive approach to improvement of 1
4 plant' equipment.
We have developed a comprehensive restart 5
program.
We have developed a comprehensive two-phase program y
.6 to address the. radiological controls at Rancho Seco.
~
7 However, there are four areas that could. impact our 1
8 restart program and we are' actively addressing them.
One, a
-9 major challenge to our. restart schedule is the closure of a lo significant amount of paper.
We must assure that the paper
.11-keeps pace with activities themselves.
12
. secondly, I am very personally concerned that we have I
13 1
not submitted much of this paperwork in a timely manner to the 14 NRC, both the region and NRR, to facilitate review by y6ur
{
15 staff.
We are aggressively taking steps to correct this 16 deficiency.
.17 -
Third, there could be unknowns resulting from the 18 test program.
Our restart schedule does not include 19 contingency for major surprises or delays resulting from the 20 test program.
21 And finally, the material management and storage 22 program needs attention; a comprehensive study is underway to 23 define the solutions to this issue.
24 Much of the remaining work for restart requires close r ',
V 25 cooperation between the NRC and SMUD.
I am personally
.-..--a-_----_-a_ - - - - - -
m-t-
/
52-1-
convinced that the January restart target is achievable.
We
~
4\\Lhk 2
have put in place the people, the programs and the systems to insure.that Rancho Seco is ready for restart.
Please be 3
- 4-assured.that I will not allow the restart of Rancho Seco until 5
I am personally satisfied that it can be done safely, in a i
6 manner with quality which will protect the health and safety of 7
the public.
Thank you'very much.
l 8
, CHAIRMAN.ZECH:.Does that conclude your presentation?
9 MR. ANDOGNINI:
Yes, sir.
10 CHAIRMAN ZECH:
We have the staff to hear.
Do any of 11 my fellow Commissioners have any questions before we ask the 12 staff to.come up?
Commissioner Roberts?
~ - 13
' COMMISSIONER ROBERTS:
I appreciated Mr. Wilcox's
~
14 candid comments.
15 MR. WILCOX:
Thank you.
16 CHAIRMAN ZECH:
Commissioner Barnthal?
17 COMMISSIONER BERNTHAL:
I only have a short comment I 18 think on the same theme that Commissions.r Roberts has brought
- 19 up succinctly.
I honestly don't rememler how long ago it was 20 that I had the opportunity to visit Rancho Seco, it must be the j
21 better part of a year and a half or so now.
And I have got to l
22 tell you that at. that time, I had a residual concern about the 23 governance; the methodology and the manner of governance that 24 eventually finds its way down throughout the staff at the
- )
25 plant, needless to say.
I hope and I trust, based on the 9
___-__--A_---------------------
~,
~e.
53 1
1"
' comments.you have made.today, Mr. Wilcox, that that problem has f/S
\\;/
2 been largely resolved.
3 I think no one moreithan you and the Board must 4-understand by now that there needs to be some stability out 5~
.there,:and I'think for.the purposes of your restart program it 6
liis essential there1be stability, and as a member of this 7
Commission,fI want to see some stability before I'm prepared to 8
sign,off on restart, and I think the plant staff deserves to 9
see that stability.
10 So I would hope that those problems are.largely.
11 behind you now.
I'm_ pleased to hear that you've succeeded in
' 1:2.
closing the issue of a new general manager, and I again would rS 13 urge that we now see an anchor out there in the Board and in
' the higher level management that I think your staff and your 14~
15 utility has deserved for a long time.
Thank you.
i 16 MR. WILCOX:
If I may just add to that to give you 17 some assurance.
We have a naw ganorni manager as I',ve said, 18 and'I do believe that does create the anchor.
But there's one 19 step that needs to be completed and we are in the very final 20 phases of ccepleting it.
our utility, the way it was set up in l
21 its very original beginning, left a void in how systems were in 22 place for the Board and General Manager relationship s to be l
f 23 conducted.
And so as you took a utility that started out as a 24 distribution network, made that into a very large -- we are now
]
s ; ' 25 the fifth largest municipal utility in the nation
- there was
(
L
___m__.__.---._.m
' w.. -T,.
e
' ~
54.
m ci a void that was' sooner or later going to cause a problem
.,y
'. ['
'2 Lbecause there were'no' set guidelines on how the General Manager
'3
.and[the Board of Directors,should interact.
4'
.We are working very faithfully and diligently right 5
now to complete something that the original LRS report pointed 6
out to us that occurred in 1984; that we need a set of criteria 7-by which'the Board and the General Manager act.
We have hired l
.,8.
gnd have onboard Theodore Barry and Associates that is putting 7
9 in place a good monitoring system so the Board can feel that it j
i 10
-can complete its checks and balance role, which it must 11~
complete and is very responsible to the citizens that elect it 12 to complete, and on.the other hand that the General Manager has 13' full. authority to run the District and is running it in a way 14 that is not interfered with by the Board of Directors but is
-15 rather held accountable by the Board of Directors.
And that
.16 process should be completed by the end of November.
L 17 COMMISSIONER BERNTHAL:
Good.
l 18 CHAIRMAN ZECH:
Commissioner Rogers?
19 COMMISSIONER ROGERS:
Yes, I have a couple of 4
20 questions.
One *is what are the qualifications that you're 21 looking for in your Maintenance Manager?
What kind of 22 background do you seek there in that individual?
.23 MR. KEUTER:
We are looking for a degreed manager who 24 has extensive maintenance and nuclear experience.
So we want 25 somebody that -- that's why it has taken us a little bit longer j
(
~ ' -
)
J' 55 1-than we want.
.We set.very high standards and we want the very
?
"21
'best'in that position.
It is definitely one of our critical 13-management-positions.
y
.di COMMISSIONER ROGERS:
Do you have any other more i
.5 specific requirements on~it than that?
6 MR.1 KEUTER: _ For example,.B&W experience?
7 COMMISSION,ER ROGERS:
Well, just what kind of'an, H
1 8-educational background;or experience background that --
9 MR. KEUTER.
We would like degreed in engineering or i
10 science _ background.
We would like to have at least five years'
'll
. nuclear' maintenance experience.
And preferably, that 12 experience be at a B&W plant.
13 7.y COMMISSIONER ROGERS:
. ell, you had'some very W
R14 interesting comments on some of the new technology-that you're 15 trying to emplo which sounds very good, and I wonder if you
- 16 have thought about your maintenance manager being somebody who 17 is really sufficiently currently aware of what those 18 possibilities are.
There are various ways you can go in
'19 picking a maintenance manager and if your interest is in 20 pursuing that line of activity of introdur/d:
new technological 21 tools into your maintenance program, then it is important that 22 the maintenance manager be comfortable with that approach.
23 MR. FIRLIT:
That's correct.
There's a couple other 24 qualities that we're looking for in a maintenance manager.
(,)
25 First of all, we need a strong leader.
That's F. key role in a
______..___'__--m-__-
g 56 g
<1
~ plant sofwe have to have somebody that does that.
I also --
H
]
2'
- and. Dan and I have had conversations here -- we do need'
]
-3
!somebody=that has a proven track record.either in the military q
4
?i'n the.U.S. Navy under their nuclear program or.at least in the 1
s 5;
commercial and of the business so that he.can step in and hit 6
'it_ running.'
i j
~7, Tlie fellow that we have ~in there right nowis Acting
]
8,.
' Maintenance. Manager,-is a consultant'who came.from Crystal
-l 9
River, has an excellent-track. record.
We would like to hire
'I lo him but he told us that after.:he restarts our plant he wants to q
l
'll go down to Missouri and.run~his peach farm down there, so --
)
]
12 (Laughter.]
j
^13 COMMISSIONER ROGERS:
The other question is it isn't-
~
-14 clear to me from your. organizational chart where this Director 15-'
of Nuclear Managing Systems fits in.
That seems to be-16 disconnected from the rest of the diagram.
And how is that i
a 17 supposed to work?
Is that something that evaporates?
.i 18-MR. ANDOGNINI:
There's a reason.
There's a.line 1
19 that comes from the Director of Nuclear Management Systems 20 directly to me, sir.
21 COMMISSIONER ROGERS:
All right, directly to you.
22 MR. ANDOGNINI:
There should be a line directly to 23 ne.
It's a new system that we're installing site-wide which 24 includes a total upgrade of procedures to make them user-friendly, to bring in human engineering factors, to bring in 25
57 lI management; systems to' couple.the entire. site together.
~. 2 :
" COMMISSIONER ROGERS:
Does that,'in effect, establish-3' a kind'of. matrix organizatics through.that'or not?.
[4 MR.'ANDOGNINI:
No.
This is the development of
~5
" management systems.
6 COMMISSIONER ROGERS:
All right, they don't cut 17 acgoss.
8 MR.,ANDOGNINI
.No, they dor't.
~9
. CHAIRMAN ZECH:
I would just like to ask, where does o
4 10 the General Manager fit'in as far as relationship with Mr.
11' Andognini?' In other words, is Mr. Andognini going to have 12 continued direct-line responsibilities and communications'to s
(~
- 13' the Board itself?
How will the General' Manager fit'into that
~
' 14 situation between the Board and Mr. Andognini?
15 MR. WILCOX:
Mr. Chairman, Mr. Andognini will l
16
. continue to report directly to the Board of Directors through
]
17 mid-June of 1988.
In mid-June.the plant'will be back on a i
18 routine operational basis.
As I stated, earlier, the Board does
)
19 not want to be directly involved in management, that is not our 20 role; we are a policy-making body.
In mid-June of 1988 the 21 Nuclear Program will go back under the leadership of the new 22 General Manager, Mr. Byrne, who by the way does have some 23 nuclear experience.
24 CHAIRMAN ZLCH:
Well, I'd suggest that.your June 1988
.[',.(;) 25 date might be a target date but it may be one that you ought to
58 i
!i?
review as.the time approaches, depending on what. takes place on
.2 the plant itself.
But'I-do think it's important, at leastLfor
.the time being,fthat Mr. Andognini have a direct relationship-3 4
. with the Board so he can be' fully supportive in'all these 5
activities'you're-telling us about.today.
6 MR. WILCOX:
Yes, he is still to'directly report to 7
the Board of Directors, and.Mr. Byrne is.in charge of all other 8
non-nuclear activities of SMUD and will remain so at least 9.
until June,.as I stated.
Even after June, should -- and we 10 will certainly consider your recommendation -- but should in 11 June Mr. Andognini then be reporting to the General Manager, he 12 would still have access to the Board of' Directors because it s
13 will be a high-ranking reporting.
l
' 14 CHAIRMAN ZECH Perhaps next time you come back here 15 you can elaborate on that relationship just a little bit, give 16 us the confidence that the Board will still be.able to support 17 Mr. Andognini and your General Manager will be sensitive to 18 that necessity.
i 19 I appreciate your words on stable management and team 20 work, because as you recall, last time we mentioned that, too.
21 I think it's very important and you've obviously made progress 22 in that regard.
But it's awfully important in my view that you 23 have a very stable, permanent organization in place.
I just 24 ask you to keep an emphasis on that aspect of it.
That's going
( )
25' to.give us added confidence here because you have made a number L
L 1
- \\
l d
59 1J of:significant changes and we need to be assured that those
-2 !
' changes are going to provide. stability to your' organization.
1 3-If there are no other questions from my fellow l
1 4 ~
' Commissioners, I think:we should call-the staff up.
Thank you l
l
.5'
'very much, Mr. Wilcox, and your. colleagues-for'an excellent l
1 6
presentation.
h 7
-[P a u a e.)
8 CHAIRMAN ZECH:
Mr. Taylor,-you may proceed.
9
-MR. TAYLOR:
Good morning, Mr. Chairman..
The staff 10 has only brief comments following.the Licensee's presentation 11 which will cover the staff's assessment-of conditions for 1
12 restart briefly, and also touch on some of the major NRC l
'- r73 13 technical and inspection work remaining to be done before
\\
'14.
restart.
15 I had one comment to make in terms of a personal 16 review nt Rancho Seco.
In April 1986-about four uonths after 17 shutdown, Jack Martin and Harold Denton and I spent some time-18 at Rancho Seco and were quite concerned about the lack of 19 progress to correct the conditions that had caused the event of l
l 20 late December the year before.
In fact, I believe one word 21 summad up how we felt about what was happening at Rancho Seco, 22 and we' stated that, or Harold did, in a press statement, that 23 we were quite skeptical about the ability of what was there to 24 correct the conditions.
..m
'l 25 There were changes made.
Mr. Andognini was preceded
~
+
.1 by John-Ward.
The Board support was strong,-and thisLyear,.in 22.
June,- just'several months ago, Tom:Murley, Jack Martin and I returned"to Rancho seco and frankly, we saw much of the 3
l 4
-progress and work that you've heard about'from the company 5 -
today.
And our view at that time was-dramatically changed, and 6
we felt, as substantiated by reports that continue to come in 7
from the_ region, that the company was-pulling the plant 8
together, making major modifications to hardware and l
9
. improvements in'the plant.
10' So with that introduction, I'll ask Tom Murley to 11 pick up.
He has some comments..
'12 CHAIRMAN ZECH:
Thank you.
You may proceed.
f-
.13 MR. MURLEY:
The improvements that Jim Taylor talked
(~N 6
14 about, of course, come after two years of shutdown.
I'd like
'I 15 to take just a minute to comment on the general aspects of what 16 has gone on during this time because I think.there.are some 17 lessons we can learn from this experience, because we have 18 other plants, as you know, that are shut down'because we're 19 concerned about the way they were performing.
20 There seems to be a general pattern that these plants j
21 go through -- I call it three phases -- in improving their 22 operations up to the level where we think it's needed for 23 resuming operation.
The first phase is one of introspection 24 and a recognition and acknowledgement on the part of the 25 utility that they've got serious and deep-seated problems in
p
_ vi-
' e 1.
61 4
l 3.:
'l
')
- their.' organization.
This is often a slow and painful process 2
because.the company, generally doesn't have.a system for 3
' critical self-appraisal, and that's one of the reasons.why they 4
got into the~ prob'lems in~the first place..
In the case of SMUD.
5 it appears that.it has.taken a fairly long time for them to get 6
.through this.first phase, but as Jim'said, I think it is clear 7-that,they'are through that.
8-second phase is to. analyze their operations and take
-9 the actions that are needed to fundamentally. change their plant
'10
' organization, and sometimes even the corporate structur's
- 11 itself.
This is usually even more painful because it involves 12 personnel changes and bringing in new people, which SMUD has
.m-13 done.now.- It frequently also means revising some personnel 14 policies of the company, which is again one of the reasons why 4
15' they've'gotten into the problems in the first place.
It appears khat SMUD has emerged from this phase generally this
~16 17 past spring and summer.
18 The last, third, phase then is to complete the 19 necessary physical improvements in the plant and to have the
'20 new organization developed into a smooth-running operation, a 21 smooth-working team.
This is when we begin to see an 22 improvement in professionalism at the plant, and morale picks i
23 up and there's a certain crispness that you see at the plant.
24 And it looks like SMUD is well into this home stretch phase, as 25 I call it.
a.
t
~
1.
_I think as.I said, as ws learn from'these kinds of
- (W '
jf 2
painful experiences we all go through, we can may1:a shorten 3
some of this time and effort and draw some lessons from it.
In 4-
-the~ case of Rancho Seco, we agree that there's an improved 5
management organization in place, structure seems sound, the 6'
personnel we are generally impressed with.
7 There's a relatively new operating staff.
We have
-8 loo,ked at the. staffing.and experience and we believe it's 9
adequate, but it needs monitoring during startup.
So perhaps
'10 Jack will talk about some plans that we have for inspection
'll during startup.
We intend to watch it very carefully.
12 You've heard about t.he improvements in the
.13 maintenance backlog.- The hardware modifications at the plant
~
14 are essentially complete, and of course they have a good test 15 program planned to test the systems and the integral systems at 16
.the plant.
17 We issued an SER October 2nd; it's only about 50 or i
18 60 percent complete.
We hav'e more to do.
There will probably 19 be three or four more supplements issued, and the next one is 20 planned for about mid-November.
In fact, my staff tells me we
.21 have to have one out before the next testing phase at the 22 plant, and we will do that.
23 Now Jack Martin will talk about a few of the details j
\\
24 at the plant as well.
25 CHAIRMAN ZECH:
You may proceed *.
4
c,..
w.
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63 m:
1.
MR'.- MARTIN t ' I would like to make a faw comments.
'I N, J 2
guess I,'alonglwith Mr. Wilcox, have been involved in this the
- 3 longest, and I think back to the meeting that we'had with the 4.
Board of Directors in mid-1984 when-it became' apparent that i
5 dealing with the plant staff was pretty much hopeless.
And at 6-that-time, the point was made to the Board that this is an 7-organization that has made a life's' work out of doing the bare-8
. minimum, and that'was elaborated with words like recalcitrant 1
9-and obstructi~onist; just clearly we're not operating with the l
10 same"value' system.
l l
11 I think my evaluation now is at this point in time, 12
.that has clearly turned around.
And I guess if I had to make a
- h-).
list-of the most significant. things'that have happened.in the 13 j
14 last three or four years, it is that'. -Where there is no 15 question that the impetus for improvement is coming from the 16 utility and not from the government at this point, and that we 17 can get into more of a posture of monitoring and critiquing the 18 utility's efforts rather than driving it and snggesting things j
19 and forcing them to do things.
And I consider that a very l
}
20 positive development that has happened gradually over the last l
l 21 couple of, years in particular, and I think is quite 22 satisfactory now.
23 I think probably the second biggest significant l
24 improvement is in the quality of engineering work.
Over the
~
25 years'my perception has been that a substantial percentage of
64 1
their problems have either directly or indirectly proceeded
'(\\
l
. \\s.s '
2-from poor engineering.
They have instituted an extremely
)
3 aggressive engineering improvement program; it is one that will l
4 have to continue for the next couple of years, but I think the j
d 5
first year or so of it has been quite productive.
I 6
And the kinds of technical work being done now at the 7
site is quite acceptable, and we audit considerably.
We just 8
finished an audit last week by the same team that does these 9
SSFI inspections; it's the best that the agency has to offer, 10 and have found substantial improvement even over six months 11 ago.
12 I think the effort in maintenance is the next most 13 significant measurable approach.
They actually have
' 14 maintenance programs now.
We're in the final ntages of 15 reviewing their preventive maintenance program which looks i
j 16 quite sensible, and the commitments they have made to have all 17 the PM's up to date prior to restart looks good.
18 And I think the test program they have done - chis 19 plant has been essentially rebuilt.
It's a significantly 20 different plant today than it was two years ago.
Numerous
{
21 improvements and modifications.
The effort they have 22 undertaken to go back and look at not only all the problems 23 they have ever had with the plant since construction, but also i
24 look at all the problons that Davis-Besse has had and that TMI
)
25 has had and that Arkansas has had and anybody else has had that j
l h
l
o
[.
65 O
1 is relevant has been quite impressive and has resulted in a lot 2
of modifications.
l 3
one of the things that Jim Taylor and I were 4
' concerned with earlier in the year is that the teet program to 5
validate that all this stuff works has to be thorough and it 6
hes to be a functional type test program.
They have produced a
{
7 test' program that does everything we wanted and then some.
8 So I think when I look at the three or_four key i
1 9
things that I can measure over the last year or so, they well 10 exceed the minimum requirements and are certainly quite more 1
i 11 than I would have expected or hoped for.
So I think that's a 12 very positive development.
13 on the other hand, when I look at whr.t is on the
'~
14 plate ahnad of us 'here, I have had several blunt discussions i
15 with Mr. Andognini over the last six months or so that there is
~
16 a large volume of things that have to be. resolved prior to q
17 turning to plant operations, much of which we havan't even 18 received yet.
I sense, you know, the inevitable bow wave of 19 things building up to the last minute here that has me very
)
20 worried.
The last time we met in I believe it was January, one 21 of the issues that the commission made was we have to have a 1
22 restart list.
In other words, out of all the work items, which 23 do you pose to do before restart and which after restart so we 24' can reach agreement.
We have yet to get the list and have yet
, - ~.,
1
(_)
25 to reach agreement.
j 1
Now I thinktto'their credit, they have avoided giving
'f?Y w
2
'usia' list until they're satisfied that'it's right, and'I'm not i
3 critical in that regard.
But~it's pretty late in the day to-be 4
arguing about what should be done' prior and after restart.
5 I have a couple of hundred open inspection items that 6
have accumulated over the last several years; things that we I
7 found that were out of line that required corrective action'and 8
,then present.them to us for close-out.
hnd this has:also been 9,
assore point; these things are not being closed out in a timely 10 fashion, and that needs to be improved.
11 So there are a number of-things, I could go through 12 three or four more that are a source of anxiety to me and they
[
13 need to be done and they could well impact the restart date.
- 14 The cable issue is one that was touched upon briefly, j
t 15-
'and I think that is eminently resolvable, but we're still 16.
debating what the sample size has to be to resolve that; 17-whether the 622 ceb'.es is enough or it has to be somewhat
' 18 larger is not yet clear.
' 19 The last item that bothers me is that there has been 20 a recent development of a material control issue involving 21 bolts.
These things are always difficult to resolve; this is 22 something that has come into finer focus just at the and of the 23 SSFI inspection last week, and I'm somewhat anxious ua to what 1
24 it will take to resolve that.
The company currently has it for I )
25 resolution.
We have yet to review their resolutions, and these
___.____m___.
+
'h..
67 jL things, just from experience, take longer than sometimes we
.l
(:3 l
lSif 2-feel at first blush.
3 But I think in general things are greatly improved.
4 i
'4 We all have a lot of work to do in the next'few weeks.
And I 5
guess of most anxiety to me is that at this stage of game'--'
'6 we'relin the und of October and they plant to get. heavy into.
7 operational issues through December and January -- that the-8 whole focus of.the. agency and the utility should be on 9
operations issues, and at.this point we shouldn't be talking 10 about design packages and material readiness issues and test 11-procedures and that sort of thing.
And so I think that 12 progress is quite satisfactory on the big ticket items that we
~
13-
'were concerned about last time we met, but I am concerned that -
( ~;s
+114 ke're getting into-a bottleneck here whera the focus should be 15
. shifting to operations and there's still a large backlog of 16.
plant readiness issues.to be dealt with.
- 17.,
That completes my assessment.
18 MR. TAYICR:
That concludes the staff's presentation, 19 sir.
1
- 20 CHAIRMAN ZECH:
Thank you very much.
Questions from 21
'my fellow Commissioners?
Commissioner Roberts?
22 COMMISSIONER ROBERTS:
None.
23 CHAIRMAN ZECH:
Commissioner Bernthal?
24 COMMISSIONER BERNTHAL:
Just one.
I'm not sure what
)
25 the status is of what I believe was the instrumental and
i s
'~
68 1
- control review'in:the plant.
Is'that finished now or is it (JN i
l
,j 2'
still underway, where are we on it?
3I MR. KALMAN:
No,. sir, that's still ongoing andlwe are
]
4' programmed to-finish it by' December, and that is a prerequisite 5
.for the heatup'on December 5th.
And we're finalizing our
.6 review'now but we'refnot quite completed.
7 MR. MIRAGLIA:
The SER_that went out earlier this 8
. month essentially indicates the status of where we are and the 9-issues that we still expect additional information and review 10 on.
11 COMMISSIONER BERNTHAL:
Can you give us a one or two-12 sentence qualitative evaluation? '
i 13 MR. MIRAGLIA:. With respect to the ICS, they have
. (^/
14
.made some changes I think to the power' supply; that was the 15' initiation of the December 26th transient.
The more 1<6 significant thing with respect to the ICS is the installation
'17 of the EFIC system which essentially takes the initiation and 18 control of the emergency feedwater system away from the ICS 19 system and puts it under this new system.
And that's also in
'20 about the same status of review.
We've reviewed some pieces of 1
it and there are some remaining questions.
2 22 So I think they have made strides in those areas.
In 23 addition, I think you heard from the utility that they're 24 looking at changes that have been made in other facilities with
' )
25' respect to upgrades of the ICS system and other areas as well.
1
'?
69
.i I
L b
1 COMMISSIONER BERNTHAL:
Thank you.-
! (1 N ib 2.
CHAIRMAN ZECH:
Commissioner Rogers?
l:
j3 COMMISSIONER ROGERS:
Nothing.
1 t-4-
CHAIRMAN ZECH:
Let me just first of all say to'the 5
-staff,.I think that was an' excellent summary of;the: situation; 6
a very difficult and serious situation.
Mr. Taylor, I:know 7
lyou've been involved in it personally for a long time and your 8
. feeling,that they.are making satisfactory progress I think-is:
9 important to.the Commission.
lof I particularly appreciate Dr. Murley's reference.to
.11 the three phases; I would agree with that.
And the first phase-12
'sometimes is the most difficult; the recognition and-the
- (^(. 13 introspective look.the problems really do exist, the N"L) 14 willingness to tackle those problems f. rom top to bottom.
And 15 then of course the analysis phase and the execution phase, as I 16-would call them, are important, too; So I think that's an 17 excellont way to present it and I appreciate.that insight of 18 yours into these kind of problems.
19 And also, Jack Martin has been familiar with it for 20 so long out there, and I can sense -- at least I think I can 21 sense -- somewhat a ' feeling on his part that the message is 22 finally getting across.
I know he has been personally involved 23 for some time in trying to get the message across and it's been 2 4 frustrating.
But I think, Jack, even though it has been a long
(
[ 25
-time coming, to hear you talk about positive results and l
-- i
1 S
70~
'l significant improvement is,certainly very-encouraging.
~
2 Let'me just to.the Rancho Seco person say I thank'you 1
i3 for-an excellent presentation today.
It seems to me,-though, 4
'that' based on'the briefing we've heard today that you have come 5
a'long way since our last meeting, you have made substantial 6
' progress' in, achieving readiness for restart of Rancho Seco.
7
'I'd-like to compliment you on yodr obvious commitment to 8
~ upgrading all aspects,of Rancho Seco for-safety, your emphasis
-9 on safety.
10 However, I'd like to point out, too, that your past-11 performance at Rancho Seco,-your record, has left a lot to be 12 desired, and it' appears to me that there is still improvement
'13 necessary.
I'm starting to see some.results but there are 14 other results that we want to see.
15 It seems to me also that you have been focusing a 16 great deal of attention of your activities, and' appropriately 17 so, on management changes, equipment changes, procedural 18 changes, and to a lesser degree perhaps on operational 19 readiness.
I agree with the staff's feeling that now is the 20 time and should be the time to focus on operational readiness, p
21 The sooner you shift your thinking from non-operational 22 activities that are extremely important -- but the sooner you 23 shift from that to thinking operational I think the better off l
r 24-you're going to be.
And the Commission, I can assure you, will 25 not authorize restart of Rancho Seco until we're convinced that j
i i
71 1L the plant'.can be operated safely.
l ' (C '
3 2
Speaking for myself, and I believe for my. fellow 3
Commissioners, too, prior to-authorizing restart I believe we 4-will want you to appear before us again and tell us how you i
5 have made progress towards operational readiness, and give us
{
6 the confidence that we need to believe that not only the 7
management changes you've made are in place, that you've got a 8
team working together and that you have a fi;a appreci'ation of
-l 9
the operational readiness necessary to provide the safety of 10 operations.
11 And I'd also like to emphasize a point that the staff 12 has brought out.
I'd like to emphasize to the Rancho Seco m
13 people, we have limited resources, as you do.
You are coming
]
14 to the point now whe,re some of the reviews that the NRC Staff 15 will be required to make are indeed significant, and this 16 Commission-is not; going to allow the staff to give us anything 17 but a thorough job.
May need more time.
I'm not so sure you have fac'tored in the NRC time necessary to thoroughly and 18 19 confidently review the significant changes you have made.
20 I would urge you to factor that into your scheduling.
21 It~ appears to me offhand that your schedule might be a bit i
22 optimistic because of the -- perhaps you're not giving our own 23 staff time enough to review in a cautious and careful and 24 prudent manner which this Commission wants them to do, your 25 preparations for operations.
1
72 4
1 So with those thoughts, I think you should be mindful 2
that.we want'to hear from you again.
I think you have made 3
progress.
There is more progress to be made.
So we will 4
follow your progress with a great deal of interest and look 5
forward to hearing from you again before we will authorize 6
restart.
7 Are there any other questions from my fellow 8-Commissioners, any comments?..
9
[No response.)
10 If not, thank you very much, we stand adjourned.
11 (Whereupon, at 12:00 noon, the Commission meeting was 12 adjourned.)
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TRANSMITTAL T0: Document Control Desk, 016 Phillips ~ ADVANCED COPY TO: The Public Document Rocm DATE: /0 j FROM: SECY Correspondence & Records Branch j t h Attached are copies of a Commission meeting transcript and related meeting A 2. ' document (s).. They are being forwarded for entry on the Daily Accession List and h A 5, placement in the Public Document Room. No other distribution is requested or A 1 required. E t' k Meeting
Title:
-M_. A M M /0//6/f7 Open N Closed I i Meeting Date: ci f E l Item Description *: Copies Advanced' DCS CiF i '8 to PDR Copy fj i i 3 1 TRANSCRIPT 1 1 l Y 6)/ aw n ach i 'w % t y 2.l 3. N 4' 2, i R h 5. 4 i l 6.
- PDR is advanced one copy of each document, two of each SECY paper.
C&R Branch files the original transcript, with attachments, withcut SECY
- g papers.
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