ML20247B064
| ML20247B064 | |
| Person / Time | |
|---|---|
| Site: | Peach Bottom  |
| Issue date: | 04/17/1989 |
| From: | NRC COMMISSION (OCM) |
| To: | |
| References | |
| REF-10CFR9.7 NUDOCS 8905230388 | |
| Download: ML20247B064 (105) | |
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( UNITED STATES OF: AMERICA NUCLEAR REGULATORY COMMISSION
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DISCUSSION /POSSIBLE-VOTE ON. PEACH: BOTTOM RESTART N
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Datg' APRIL 17, 1989 V
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[ DISCLAIMER This is an unofficial transcript of a meeting of the United States Nuclear Regulatory Commission held on April 17, 1989 in the Commission's office at One White Flint North, Rockville, Maryland. The meeting was open to public attendance and observation. This transcript I
has not been reviewed, corrected or edited, and it may contain inaccuracies.
The transcript is intended solely for general informational purposes. As provided,by 10 CFR 9.103, it is I not part of the formal or informal record of decision of the matters discussed. Expressions of opinion in this transcript do not necessarily reflect final determination or beliefs. No pleading or other paper may be filed with'
)
the Commission in any proceeding as the result of, or s
addressed to, any statement or argument contained herein, except as the Commission may authorize.
(
NEAL R. G'ROSS CoORT RfpoRTERS AND TRANSCR10ERS 1323 RHopfdSLAND AVENUE, N.W.
WASMMOToN, D.C. 20005 (202) 232-6600 (202) 234 4433
1 UllITED STATES OF AMERICA f~
2 NUCLEAR REGULATORY COMMISSION 3 * *
- 4 DISCUSSIO12/FOSSIBLE VOTE Oli PEACH BOTTOM RESTART 6 FUBLPC HE'ETING
? fluelear Regulatory Commission 9 One White Flint North
- O Rockville. Maryland 11 12 Monday, April 17, 1989 13
(
la The Comr,ission met in open session, pursuant to 15 notice. at 2:00 p.m., the Honorable LANDO W. ZECH, JR.,
16 Chairman of the Commission, presiding.
17 18 COMMISSIONERS PRESENT:
19 LANDO W. ZECH, JR.. Chairman of the Commissicn 20 THOMAS M. ROBERTS, Member of the Commission 21 EENNETH M. CARR, Member of the Commission 22 EENNETH C. ROGERS, Member of the Commission 23
. 24 25 l
(202)234-4433 NEAL R. GROSS & COMPANY, INC. (202)232-6600 1323 RHODE ISLAND AVENUE, N.W. uASHINGTON, D.C. 20005
i I l' 'e' t i
e i i STAFF AND PRESENTERS SEATED AT THE COMMISSION TABLE:
2 SAMUEL J. CHILE. Secretary 3 WILLIAM C. FARLER, General Counsel 4 VICTOR STELLO. JR., Executive Director for Operations '
5 DP. THOMAS E. MURLEY. Director, NRR
- f. WILLIAM T. RUSSELL. Region I 7 UILLIAM KANE. Region I E TOM JOHNSON 9 ROBERT MARTIN 10 11 32 i
Ler-14 FOR PHILADELPHIA ELECTRIC COMPANY AND PEACH BOTTOM APS !
l 15 J.F. FAQUETTE, JR., Chairman & CEO, Philadelphia 16 Electric Company 17 CORBIN McNEILL, Executive Vice President, Nuclear 18 DICEIUSON SMITH. Vice President, Peach Bottom 19 JOHN FRANZ. Plant Manager, Peach Bottom }
l 20 l 21 22 23 24 25 (202)234-4433 NEAL R. GROSS & COMPANY, INC. (202)232-6600 1323 RHODE ISLAND AVENUE, N.W., WASHINGTON, D.C. 20005
3 ...
4 1
1 f r e ,- the s u p e r v i ci e r s on the shift in the Peach Bottor I control room to the chief executive officer of the 3 company.
4 We were also told of significant actions to 5 support the cultural changes required to encourage 6 effective self-assessment, accountability by line 7 management and positive attitudes toward safety a regulation -- indeed, to instill a safety culture at the 9 facility. Other actions aimed at improving the 10 reliability of plant equipment and the operating 11 environment at the station have also been undertaken by
". 2 the licensee.
{ 13 At our February meeting, Philadelphia Electric 14 infcrmed the Commission of the readiness of the Peach 15 Bottor facility for the final stages of the NRC staff's if restart readiness review. At the conclusion of that 17 eeting, the Commission requested that both the licensee, 18 Philadelphia Electric Company, and the NRC staff address 19 specific matters at today's meeting, and I'm pleased to 20 note that each of those matters will be addressed here 21 today.
22 After hearing from both the licensee and the NRC 23 staff, the Commission, today, may vote to authorize the 24 restart of the Peach Bottom Atomic Power Station and to 25 allow the NRC staff to proceed with its oversight of the l
(202)234-4433 NEAL R. GROSS & COMPANY, INC. (202)232-6600 1323 RHODE ISLAND AVENUE, N.W., WASHINGTON, D.C. 20005
5 3 power ascension testing program for Peach Bottom Unit
(
t 2 11u "be r 2.
3 T understand that copies of the slides to be 4 used during the presentations and a recent NRC staff 5 paper, SECY-89-114. that addresses restart of Peach Bottom 6 should be available-as you enter the room.
7 Do any of my fellow Commissioners have any 5 opening comments that they'd like to make before we begin?
9 (flo response.)
10 If not, Mr. Paquette, welcome, and you may 11 proceed.
12 MR. PAQUETTE: Thank you, Mr. Chairman.
13 I am Joseph Paquette, Chairman and CEO of
{.
14 Philadelphia Electric Company. My associates and I 15 appreciate this opportunity to tell you why we believe we 16 are ready to restart Peach Bottom and to seek your 17 approval to do so.
1 18 With me at this table today are Corbin McNeill, 19 our Executive Vice President for Nuclear Operations; 20 Dickinson Smith, our site Vice President at Peach Bottom; 21 and John Franz. our Peach Bottom Plant Manager.
22 Additional members of our corporate and plant 23 organizations are also in attendance today, and are 24 available to answer questions.
25 Our presentation today will consist of four (2021234-4433 NEAL R. GROSS & COMPANY. INC. (202)232-6600 1323 RHODE ISLAND AVENUE, N.W., WASHINGTON, D.C. 20005
+
6 1 parts. Mr. Smith will report on the plant readiness: Mr.
._ 2 Franz will discuss our restart power testing program: Mr.
3 Mrneill vill discuss the challenges facing our nuclear 4 operations in the coming months and our plans and 5 resources to meet them; and I will review the significant 6 events which have occurred since our last meeting with the 7 C ontr i s s i on in February.
2 As you mentioned, Peach Bottom has been shut 9 down for two years. A year ago, a new top management tean in was elected to direct the company and its nuclear 11 operations. This is our third meeting with you over the 12 last six :nonths . At prior meetings, we presented the new 13 organizations and programs which we have instituted at 14 Peach Bott.om and the corporate offices. In addition, we 15 presented evidence of the tangible, positive results which 16 have been produced at Peach Bottom.
17 The changes made in our corporate and plant 18 organizations and the results of our corrective actions to 19 bring about cultural change, have produced a qualified and 20 dedicated team of management, operators and supporting 21 staff. and an effective process to achieve excellence in 22 our nuclear operations.
23 We have made significant progress in addressing 24 the root, causes of the previously identified declining 25 performance at Peach Bottom, and inculcating a safety (202)234-4433 NEAL R. GROSS & COMPANY, INC. (202)232-6600 1323 RHODE ISLAND AVENUE, N.W., WASHINGTON, D.C. 20005
.. .,a I culture in our werk force. We have also significantly 2 upgraded the physical plant in terms of both modifications 3 and maintenance. as well as have improved the general 4 plant housekeeping. Most importantly, however, we have 5 narkedly improved our ability to identify and effectively 6 respond to problems.
7 Today, I am proud to say that the positive 8 results of our efforts have been confirmed by several C recent independent reviews. Il1PO completed its last 10 assessment in January, and informed the company in
- 1. rrbruary that the improvements accomplished to-date have 32 satisfactorily resolved their concerns which were 13 enurerated in January, 1988. INPO also removed the
{
14 Category 5 rating for Peach Bottom.
15 After a two-week integrated assessment team 16 inspection at Feach Bottom, the NRC staff has concluded, 17 with high confidence, that PECO management controls, 18 programs and personnel are performing at a level to 19 support safe startup and operation of the facility, and 20 that there are currently no fundamental flaws in PECO's 21 management structure, management performance programs, or 22 progran. implementation that would inhibit its ability to 23 assure reactor or public safety during plant operations.
24 The Advisory Committee on Reactor Safeguards
( 25 review in early March resulted in a favorable letter to ;
(202)234-4433 NEAL R. GROSS & COMPANY, INC. (202)232-6600 1323 RHODE ISLAND AVENUE, II . W . , WASHI!JGTO!!, D.C. 20005
.' 8 1 the Cormission on Peach Bottom restart. I trust that the
._ 2 results of our efforts were also evident to those of you 3 who recently have visited Peach Bottom.
4 I would now like to ask Dick Smith to discuss 5 the restart status.
6 CHAIRMAN ZECH: Thank you very much. You may 7 proceed.
8 MR. SMITH: Mr. Chairman, Commissioners. I will 9 be discussing this afternoon our status for the actual 10 restart We believe that we have continued to have 11 p o s i t i v e- results of the programs and activities which have 12 been in place. We continue to exceed our goals in the 13 electric radiation exposure as measured by manrem of 14 exposure; the volure of radioactive waste that is stored 15 on the site has continued to be decreased; and we have 16 achieved our goal in the liquid storage for the first 17 tirie: the volume of radwaste being generated at the site 18 is decreasing, and we have continued to clean up the 19 surface contaminated areas at the plant.
20 We feel that the performance of our security 21 force. which was a weakness at the station, has continued 22 to improve.
1 23 When you were recently at the plant, Mr.
24 Chairman, you commented that you thought the control room
{.~ 25 was rather noisy because of the paging system. I am 1
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,a .
9 1 pleased to say that we have completed a modification which k 2 was in progress. which has decreased the use of that 3 paging systen considerably. It is much quieter than when 4 you were there.
5 CH AIRMAli ZECH: Very good.
6 MP. SMITH: Moving on, in the technical issues, 7 there are no technical issues between us and the liRC 8 staff. There's no requirement for changes to the 9 technical specifications; from a technical standpoint, we 30 are ready.
11 llo t all equipment is yet operable, but all of it 12 will be operable. in a tech spec sense, before we actually 13 startup.
{
14 Last evening, we had a problem with the standby 15 liquid control system, where a procedural deficiency 16 caused us to actuate the explosive valves. That situation 17 is being investigated, and those valves are being replace 18 at the present time. So, that system is not operable. We 19 expect it will be operable probably today, and the 20 investigation is being done.
21 There is no overdue preventive maintenance at 22 the station. All required surveillance tests and routine 23 tests will be accomplished prior to restart.
24 We have, during the shutdown period, 25 accomplished approximately 140 modifications to the plant.
(202)234-4433 liEAL R. GROSS & COMPAliY, Ilic . (202)232-6600 l 1323 RHODE ISLAliD AVElIUE, IJ.W., WA SHIlfGTOli, D.C. 20005 l 1
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- .* j 10 j 1 Of those, there are four that are not yet finally closed, k 2 On one of them there is minor work remaining, one of them 1
3 is in testing, and two of them wait final review'of the 1
4 paperwork. We should complete all of those sometime on j 5 Uednesday.
I 6 Our nuclear quality assurance group has done 7 their reviews of our readiness for restart, and are ready 8 now to agree that we are ready to restart, but they will 9 hold their vote until we have completed all of the 10 nndifications and we are fully ready, but they have no il issues at the present time.
12 Our plant eperations review committee will meet 13 to do a final review of plant status prior to the restart.
14 .Mr. Chairman, our operators are trained and 15 ready for the restart. Several of them are here in the 16 audience today, with us. Our management team is assembled 17 and ready for the restart. With permission to restart, we 18 would go into a restart power testing program, and I'd now 19 ask the plant m ;.n a g e r , John Franz, to discuss that 20 progran.
21 CHAIRMAN ZECH: All right. Thank you very much.
22 You may proceed.
23 MR. FRANZ: Mr. Chairman, Commissioners, Peach 24 Bottor is ready for restart, with the few exceptions that
'~
25 Dick Smith has delineated.
l (202)234-4433 NEAL R. GROSS & COMPANY, INC. (202)232-6600 1323 RHODE ISLAND AVENUE, N.W., WASHINGTON, D.C. 20005
- t :s n' y pleasure to describe for you our 4
0 2 restart power testing program. I will review with you the 3 nroarar objectives, what it is we expect to accomplish, 4 end Erw we e ::p e c t. to accomplish it.
5 I wd'l cover those physical administrative and 6 assessnent activities which make up the program elements.
7 I vi:1 also discuss the special program mechanisms which R ar+ the additional people and controls specifically e d e f -: n e d fer the purpcse of restart.
'n l' n d e ' FECO management assessments, our l 'i nw onio: cay for snif-assessing our performance, as well as 12 nur rerb delegy for assuring adequate independent
( 13 assescrent will be described. Finally, the !!RC approva:
14 and hold points will be discussed.
15 As indicated, one program objective is to verify 16 proper operation of plant equipment. Although many of the
- 7 piant sys t er's have been operated during the shutdown, to 18 support such evolutions as reactor hydrostatic tests and 19 integrated 3eak rate tests, many of the systems have been 20 under continuous static lay-up.
23 The restart program is geared to methodically 22 and conservatively start up the power plant for check-out 23 und-r dynaric conditions.
24 Mnnitorinn of equipment will be done through the
(~ i d ra- organization. and their routine monitoring functions 25 (20:1234-4433 IIEAL R . GROSS & COMPAliY, IIIC . (202)232-6600 1323 RHODE ISLA!ID AVE!IUE, II.W., WA SHI!!GTO!J , D.C. 20005
t 5
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12 I
i i prie8rily i ri the operations, technical and maintenance
(, 2 areas We will have some special instrumentation )
i 3 installed, to obtain data as part of the restart power l 4 testing program.
5 A second and vital program objective is to 6 verify the proper performance of the plant personnel. The 7 foundation of our cultural improvement efforts among all E the plant groups. has been the development of high quality 9 t e a r'w o r k . Specifically, the operators have been 10 extensively c u l t u r a l ~a y re-educated and have had x
11 comprehensive plant-unique simulator training.
12 With training evolution specifically defined at
- i 13 the beginning of the program, and then 'using a power
.i 14 plateau methodology for power increases, we have tne 15 ability to do the assessments, and to verify the proper 16 performance of plant personnel at the lower power levels, 17 before requesting power increases.
18 Another objective is to verify proper 19 performance of our management processes. Many of these 20 processes were strengthened and improved during the 21 shutdown. Methodical power escalations, followed by 22 relatively long periods at steady-state, allows us to 23 assess our ability to manage both the people and the 24 equipment as we31 as the adequacy of the processes in the
{* - 25 new operating environment. This assessment is done at the (202)234-4433 NEAL R. GROSS & COMPANY, INC. (202)232-6600 1323 RHODE ISLAND AVENUE, N.W., WASHINGTON, D.C. 20005
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13 1 lower plateaus. before requesting permission to proceed at
( 2 t h - higher plateaus .
3 A final objective is to provide operational 4 experience to operators with cold licenses. Training 5 evolutions during the program and step power increases 6 with long times at steady-state power allow the more 7 experienced operators with the hot licenses, to reaffirm 8 their fami3iarity with the plant, and the less experienced 9 operators with the cold licenses, to gain the necessary 10 experience.
11 Now. let me describe the activities that will be 12 conducted, which implement the program objectives. The 13 surveillance test as required by the plant technical 14 specifications and the normal line organization, routine 15 t e- s t i n g of plant equipment and systems will continue 16 throughout the duration of the program.
17 Post-maintenance testing will be conducted on 18 equipnent that was maintained during the outage but needs 19 a dynamic plant condition to assure its operability. The 20 same holds true for post-modification testing of equipment 21 that was modified during the outage.
22 Training to convert cold licenses to hot 23 licenses is administrative 1y controlled through our 24 special startup procedure, and will ensure that the 25 operators receive the required reactivity manipulations (202)234-4433 NEAL R. GROSS & COMPANY, INC. (202)232-6600 l
1323 RHODE ISLAND AVENUE, N.W., WASHINGTON, D.C. 20005 b . - - - - -_. - - - - - - . - - - - - - - - - - - - - - _ _ _ .
14 1 and tim- above 20 percent power, as required by the NRC 7 regulations.
3 Refresher training for other licensed operators 4 is also administratively controlled. It is continuous 5 throughout the program, and will' serve to ensure that the 6 operators experience a multiplicity of both transient and 7 normal operating evolutions.
8 Hany different types of evaluations will occur 9 throughout the course of the restart program. One measure 30 of our apability is by checking ourselves against 11 specific performance indicators. These specific 12 performance indicators were selected from our plant's
- 13 administrative procedures and provide us with a broad 14 spectrum assessment of how we are doing.
15 We have chosen 11 performance assessment 16 indicators. Among them are included incidents and.near-17 misses which occur in power plants, radiological 18 occurrence reports or contamination events, and our 19 ability to control work backlog and others.
20 In addition to assessing ourselves against 21 specific indicators, we've also developed a performance 22 evaluation program. This program defines the guidelines 23 by which we will do our self-assessments. The program is 24 based upon IIJPO document 85001, Performance objectives and 25 Criteria for Licensed Operating Plants. We used that (2021234-4433 NEAL R. GROSS & COMPATIY, INC. (202)232-6600 1323 RHODE ISLAllD AVENUE, N.W., WASHINGTON, D.C. 20005
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.15 7
il information specifically pertaining to operating power
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2 plantr..
3 It is supplemented from our own experiences and 4 fror information we - received f rom. another BWR facility 5 currently undergoing startup.
6 .In addition 'to management ' oversight ' release 7 points and URC-approval points, there are also three plant-B- manager release points. I will authorize exceeding 500 9 pounds pressure in the reactor vessel.
10 The lin e m a'n a ge me n t , including the plant 11 . operations . review committee , will have concluded by'that 12 time that all the plant technical specifications . are 13 currently being met, that all the necessary equipment is (b
14 operable, .and that the plant is really ready to exceed 500 15 pounds reactor pressure vessel pressure.
16 The next hold point prior to entering the run 17 mode allows a final assessment of both personnel and
'IB equipment, prior to raising the safety power level 19 setpoints. l 20 My final release point is at rolling the main 21 turbine and synchronizing to the grid, so that we have a 22 point for final assessment of people and equipment, for 23 safe power production before synchronizing.
24 Performance assessment plateaus have also been 25 selected at 35 percent, 70 percent, and 100 percent power.
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16 1 Thirty-five percent power was selected because it is the 2 lowest plant power at which you have fundamentally a full 3 power operating configuration, but you are still basically 4 at low power. It is the point at which all feedwater 5 hearing is in service, and several condensate and reactor i
6 feed pumps are operating to support plant operation.
7 Seventy percent power was selected as the second E assessment plateau because it is a reasonably low power at 9 which all major plant equipment is operating. When 10 tripping of components for transient testing is done at il this power, the event is less severe and less challenging 12 to both the equipment and to the people, than similar
{ 13 tripping from a hundred percent power.
14 Deliberate component trippings at 70 percent 15 power are significantly less likely to cause a full plant 16 trip, than those done at a hundred percent power.
17 A hundred percent power was selected as the 18 final assessment plateau because it is that final 19 condition in which we would expect to run power. There 20 are several !!RC approval points which will be described 21 shortly.
22 Special program mechanisms have been put in 23 place to supplement the line organization, both physically
- 24 and administrative 1y. We have augmented the line 25 organization with a restart power testing group, to help (202)234-4433 IIEAL R. GROSS & COMPA!IY, IIIC. (202)232-6600 1323 RHODE ISLATID AVE!JUE, ii.W., WASHINGTON, D.C. 20005
27 3 define and coordinate implementing the program.
The people selected were from a variety of 3 backgrounds, with wide BWE industry experience, and report 4 thrcugh a restart power testing manager to the operations 5 superintendent.
6 At the time of restart, several of these people 7 will be on-shift as shift test coordinators, functioning 2 for the line management PE Company shift managers. The 9 crour is further augmented by appropriate schedulers and 10 contre,1s engineer.
'I We have written special procedures which define 12 t 'r : rraani7ation and the controls to be used. All of the 13 admin 4strative mechanisms or hardware evolutions which are 14 aiffer-nt from a normal plant startup, are captured within 15 the confines of these special procedures.
36 We have assembled a test review group comprised 17 of a nuclear steam supply vendor, our own site engineers, 18 and representatives from our nuclear engineering 19 department, who will evaluate the results of those tests 20 done during this power ascension program, which are not 21 part of the normal plant startup.
22 The test review group reports to the normal line 23 organization, the plant operations review committee. We 24 have also assembled the management oversight team, which 25 will provide the top level of site self-assessment. The (202)234-4433 NEAL R. GROSS & COMPANY, INC. (202)232-6600 1323 RHODE ISLAND AVENUE, N.W., WASHINGTON, D.C. 20005
. . 1 18 ;
1 t e arr is chaired by Dick Smith, the Site Vice President, 1
' - 2 and the site members are his direct line reporting i
3 personnel.
4 Supplementing them from the corporate 5 organization are the Manager of Peach Bottom QA, the 6 Manager of the Performance Assessment Division, and the 7 Manager of the Nuclear Engineering Division. Independent 8 members of this oversight team include the Superintendent
.9 of Operations from our Limerick Station, and an operations 10 pr--r evaluator from another BWR facility.
11 We believe that this organization and controls.
12 should provide for a high quality restart power testing
{ 13 program, 14 The PECO management assessments are designed to 15 ensure that any significant issue which might arise is 1
16 properly identified and dealt with in a safe and 17 conservative manner.
18 The line management self-assessments will occur 19 under the framework of the normal line administrative l
20 procedures. Specific attention will be paid to the 21 performance indicatoes and to the performance evaluation 22 program previously described.
23 The QA auditing and monitoring program includes 24 reviews of our limiting conditions for operation and the 25 technical specifications, as well as our startup program (202)234-4433 NEAL R. GROSS & COMPANY, INC. (202)232-6600 1323 RHODE ISLAND AVENUE, N.W., WASHINGTCN, D.C. 20005
19 1 controis.
(-. 2 The independent safety engineering group will 3 assess the conduct of the test review board, who are 4 nsssssing the program test results. Performance 5 Assessment Division will evaluate us on four specific 6 occasions -- prior to placing the mode switch in the 7 startup mode: prior to exceeding 500 pounds pressure in.
S the reactor vessel: at the 70 percent power plateau and, C again. at the hundred percent power plateau.
10 The operations management oversight of personnel li will be accomplished through the use of the performance 12 evaluatien program that is supplemented by evaluation done
( 13 through the operations management manual. It's an 14 administrative manual at the plant, which clearly 15 prescribes the quality of shift operations.
16 The utility industry observer will assess our 17 performance relative to the same documents guiding the 18 operations management, as well as his own experiences 19 within the industry.
20 All of these assessments feed into the 21 management oversight team, whose compositions I have 22 previously described. The team will self-assess as 23 appropriate, and recommend advancing in the program to Mr.
24 McNeill, who will then make the appropriate requests of 25 the NRC.
(202)234-4433 NEAL R. GROSS & COMPANY, INC. (202)232-6600 1323 RHODE ISLAND AVENUE, N.W., WASHINGTON, D.C. 20005
l 20 1 A major strength of this program is the ability
-- 2 of our line management to self-assess will be 3 demonstrated. Through the management oversight team 4 actions, the operations peer evaluator and the QA reviews, 5 -the line management's ability to self-assess will be 6 validated.
7 With regard to the NRC approval points, the 8 first is the initial authorization to restart the power 9 plant. The second and third approval points are at the 35 10 percent and 70 percent power plateaus, after we have 11 sucrrssfully completed our own performance self-12 ass-ssment.
{ 33 The final NRC approval point is after we have conducted our hundred percent power self-assessment, and 14 15 we request final NRC approval of the program.
16 This is the reactor pressure and power histogram 17 of a restart power testing program. After NRC approval to 18 restart. the early part of the program is devoted to 19 training evolutions for operators on the reactor and a 20 slow reactor pressure rise.
21 The slow-paced evolutions allow operators and 22 other plant personnel to refamiliarize themselves with the 23 operating hardware. This pace also gives more than 24 sufficient time for testing of the equipment, even f' 25 including the high pressure coolant systems.
(202)234-4433 NEAL R. GROSS & COMPANY, INC. (202)232-6600 1323 RHODE ISLAND AVENUE, N.W., WASHINGTON, D.C. 20005
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21 l- 1 As confidence builds, the plant will be 2 pressurized to the normal operating pressure. With.all 3 required syster,s stable at a thousand pounds, power will 4 be increased. the plant placed in the run mode, and the 5 unit. synchronized to the grid and brought to the 35 6 percent' power plateau.
7 There will b'e a week, approximately, of' 8 ' transient testing, with its appropriate assessments.- Then 9 there will be.four weeks of steady-state operation at the ,
10 35 percent power plateau, which provides the time 11 necessary to assess the equipment, personnel, and plant 12 adrnini s t r a t i ve mechanisms. This period of time allows us 13 to ensure that the six operating shifts will be assesse'd
{
14 for at 3 east twa 40-hour work periods.
15 When the ' management oversight team concludes 16 that we are ready to proceed to the next plateau, - Mr.
17 McNeill will be asked to concur anc request the 18 appropriate approval from the NRC.
-19 The plant will then proceed to the 70 percent 20 power plateau and do the same -- reasonably the same 21 transient testing and steady-state testing. The plant 22 will then proceed to the hundred percent power plateau, 23 and the process will once again be repeated.
24 In summary, I believe we have developed a high
.( 25 quality restart program, and we expect to administer it (202)234-4433 NEAL R. GROSS & COMPANY, INC. (202)232-6600 1 l
1323 RHODE ISLAND AVENUE, N.W., WASHINGTON, D.C. 20005
q . 6 a 21 u d #- r. r i y . a n d conservatively. We, who operate the plant.
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ul-arly ' understand that we have a public trust, and we 3 car i r curselves tn upholding that trust. Thank you. Mr.
4 firIIe i 3 I?
5 C H A I P M A!I ZECH: Thank you very much. Mr, 6 McNei'l you may proceed.
7 MR. M clIEILL : Good afternoon, Mr. Chairman, S Co"*issioners.
0 You and your staff have recognized that the 10 Philadelphia Electric Company is challenged not only by 11 F%ch Fottom this year, but also by the activities at our 10 Lirr-i ck G e ri e r a t i n g Station, namely, that we have the 13 Peach Rottom Unit 2 restart in April; Limerick Unit 1
{
14 returning from refueling outage in very early May or 15 possible even late April, and we expect to load fuel in 16 Limerick Unit 2 late in June, early in July, and commence 17 its power ascension test program, and we currently expect 1E that Feach F3ottor Unit 3 will restart in mid-September.
19 This is a significant amount of nuclear 20 ac tivi ty . and I'd like to bring to your attention how we 21 i r. t e n d to address these challenges, and do so in a 22 professional manner.
23 We have prepared for this significant workload 24 in r. nur b-r of ways. First, through dedicated management 25 attention and involvement, an establishment of dedicated (202)234-4433 IIEAL R. GROSS & COMPANY, INC. (202)232-6600 1323 RHODE ISLAND AVENUE, N.W., WASHINGTON, D.C. 20005
.. ^ '~.:
23 i site organization's., and providing = a high degree of 2 corporate and external support for those. activities.
3 -With respect to management attention and-4 involvement, within the nuclear group we have a weekly - l.
- S department head meeting which we use to highlight'near-6 term problems and then to coordinate and focus cross-7 disciplinary efforts in the quality ' resolution of those 8 particular problems.
9 Also, the vice presidents'have a weekly senior 10 corporate management meeting with the Chairman of the 11 Board. in which they are able to express their concerns
~
12 and any resource deficiencies . that- they might have, or
( 13 assistance that they need that they are not getting 34 through the normal line communication.
15 We have a strong on-site presence of corporate 16 support staff and executives. We attempt to feel the .i 17 pulse of the organization, sense distress and verify the i 1
18 quality that's going into current operations at the sites, 19 and that includes both Limerick and Peach Bottom.
20 For instance, the senior Vice President of' I 21 Nuclear Construction is on-site at Limerick Unit 2 over 22 three and a half days a week. I am on-site at each site 23 about a day a week.
24 We also employ a heavy multi-level safety 25 oversight. In addition to the normal plant operating (202)234-4433 NEAL R. GROSS & COMPANY, INC. (202)232-6600
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24 1 review commi t tee s ,- we- have a nuclear review board which 2 meetr, monthly. It's beyond the tech spec requirement. -It
'3 conducts tours of the' facilities. It - ut'ilizes three i
U 4 outside consultants who'are very . prone to express their-
'5 . opinions when they don't think that things 'are getting 6 proper attention.- These meetings: are held 'at each 7 . station, alternating between Limerick and Peach Bottom, so 8 that the menibe r s get,'.in addition to briefings, get'first-9 hand views of activities that are . going on at the 10 stations.
11 We' also have a nuclear committee of the Board, 12 which we have briefed you on before, which has been-at
.( 13 meeting monthly, or more frequent basic, and we would expect to continue a higher than normal level of activity.
14-15 through the end of this year.
16 The strength of our new nuclear group i 17 organization is in the reduction of the matrixed 18 organization that had previously existed. Specifically, 19 we have established dedicated eite organizations, which 20 provide a greater degree of control and resource 21 allocation at the site level.
22 As you know, we have a vice president at each 23 station, with focused management attention on the 24 activities at that particular station. We have widely 25 shared and communicated group visions, missions and (202)234-4433 NEAL R. GROSS & COMPANY, INC. (202)232-6600 1323 RHODE ISLAND AVENUE, N.W., WASHINGTON, D.C. 20005 1
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25 1 values, which'we are using.to inculcate'the safety 1 culture
. '2 -in- the . organization and to ensure that all of. our 3 e"ployees have a focus on the issues which we. feel 4 important, which are safety and quality.
1 5 Our . goals program allows us to measure our 6 performance in the normal areas. of performance, and: to l
l 7 make corrective actions when those. goals!are not met. We 8' review these monthly at each station, and then I also have 9 separate - meetings with the nuclear engineering and the-10 nuclear services department on their particular 11 obiectives.
12 Each station is being controlled through a
( 13 master open items list, and which gives us'the ability to 14 understand what activities are needed before we' can 15 successfully move on to the next activity that is in our L
16 schedule.
17 We also, at Peach Bottom, have dedicated an 18 outage organization to manage the Unit 3 outage, so that 19 we have separated Ur. Franz, to the extent that we can, 20 from Unit 3 activities and, therefore, allow him to review 21 the operations at Unit 2 rore closely, and to track those 22 during this very critical period of the restart of Unit 2.
23 In the area of mobile support -- corporate 24 support., we have gone out of our way to provide for and For instance, our 25 ensure that we have adequate support.
(202):34-4433 NEAL R. GROSS & COMPANY, INC. (202)232-6600 1333 RHODE ISLAND AVENUE, N.W., WASHINGTON, D.C. 20005
26 1 riabil e maintenance force,-which is about 300 people, will 2 he the principal group doing work at Peach Bottom Unit 3, 3 as they move toward preparation for startup there. This 4 has allowed us to retain a higher percentage of the Unit 2 5 maintenance force at Unit 2, so that they are ready to 6 respond to problems that might occur during the startup.
7 after a long period of shutdown.
i has 8 Our Nuclear engineering department I
9 established both at Peach Bottom and Limerick, on-site 10 engineering teams of about 15 people, to provide more 11 timely response to problems that might occur. l i
12 Our nuclear support division is involved
{ 13 extensively in security reviews a'ad, in particular, during 14 the startup of both Limerick and Peach Bottom, in 15 chemistry monitoring, an area that we've had problems in 16 the recent past.
17 And, finally, as Mr. Franz has described, our 18 performance assessment division will be conducting very 19 specific reviews at each plateau, during the s tar t.up of 20 Peach Bottom Unit 2, to make sure that we're meeting our 21 high standards of performance as we move from plateau to i
22 plateau.
23 Also, we've continued to provide external 24 support. As I've described here, Bechtel and General f .
l -
25 Electric are particularly present at Limerick for the l
i 1
l l
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1323 RHODE ISLAND AVENUE, N.W., WASHINGTON, D.C. 20005 J
. 27-i 3 'startup of Limerick ' Unit 2. General Electric, Gilbert- 1
, <, .d 2 Commonwealth and United Engineers are supporting us in all-3 activities at' Peach Bottom, as we prepare for the-startup 4 thers.
5 Sustaining quality is an important part of our 6 objective here. We believe that we have demonstrated'over.
7 the last year to year and a half, the fact that we'are 8 capable of producing safety and quality, and t.'ve 9 demonstrated those-results to you.
10 .We have a continued dedication at the corporate e:
11 level for safety and quality. We have put our dedicated 12 nuclear group organization in place so that we are not.
13 encumbered by activities outside of nuclear. We-have firm
(:
14- commitment through our- vision, mission and values. and.we 15 have an effective self-assessment progra3.
16 I'd like to assure you of our collective, and my 17 personal, dedication to saf ety in all aspects of our 18 ope.ation, not only during this most challenging period, 19 but on into the future.
20 I believe Mr. Paquette has some closing rema ks 21 he would like to make.
1 22 MR. PAQUETTE: In previous meetings, you have 23 heard the rasults of our actions to correct the underlying 24 causes leadir.g to the shutdown of Peach Bottom, and today 25' you have hearu us discuss our corporate commitment and (202)234-4433 NEAL R. GROSS & COMPANY, INC. (202)232-6600 1323 RHODE ISLAND AVENUE, N.W., WASHINGTON, D.C. 20005
- '.,a _
28 !
1 resources'to meet the challenges which lie ahead.
2 We have come a long way-since March'of 1967,'and 3 are proud of the accomplishments which we have achieved.
4 Our. vision is to become once again a respected leader in 5 the nuclear power industry, to be we-?d class.
6 We are progressing towards this vision,.which is 7 ' supported by the management team and adopted by employees :l 8 at every level. Morale is high and has been demonstrated-9 in'many ways.
10 The results of professionalism and teamwork have 11 been recognized by visitors, including INPO'and the NRC 12 staff. Our Board of Directors has been continually.
13 involved in the process that we've gone through, has
{;
14 visited- the site, and has unanimously . authorized the 15 management to seek your agreement for restart.
16 Based on the results of our restart plan and our 17 self-assessment, we conclude that the necessary conditions 18 for restart have been satisfied, and we are ready to 19 proceed with restart and power ascension.
20 In considering our request, I want to confirm 21 or, rather, reconfirm to you today, our commitment to 22 safety and quality, to rising standards of excellence in !
1 j 23 our nuclear operations and to working with the NRC to I
I 24 continually improve the management and the quality of the 25 operations of our nuclear power plants. We have (202)234-4433 NEAL R. GROSS & COMPANY, INC. (202)232-6600
m ___ - - _ . _ _ - _ - - - _ - _ _--- _ - - - _ _
... 3 1 institutionalized that commitment in - ou'r corporate goals
' k._ -2 .and long-term plans.
3 On behalf L of Philadelphia Electric Company, I 4 respectfully request .your approval f or the restart of 5 Peach Bottom. Thank you, and we'll be very happy to 6 answer any questions that you may have.
'i CHAIRMAN ZECH: All right. .Thank you very much.
t 8 Questions f rom my fellow Commissioners? Commissioner 9 Roberts?
10 COMMISSIONER ROBERTS: No.
Il CHAIRMAN ZECH: Commissioner Carr?
12 CO'iMISSIONER CARR: No.
- q 13 ' CHAIRMAN ZECH: Let me just ask about. the
,1j-14 . interest I know that you are aware'of, from the State of
-15 Pennsylvania and also from the State of Maryland, in the 16 safe operation of.your plant.
17 Could you discuss briefly, your ongoing 18 discussions with those two states, to satisfy their 19 concerns?
20 MR. PAQUETTE: I'll let Mr. McNeill answer that 21 specific question. I would just like to say, from my 22 perspective, I have written to the Governor, to assure him l 23 that Philadelphia Electric is committed to living up to 24 the agreement, the spirit -- both the spirit and the 25 letter of the agreement that we have negotiated, submitted (202)234-4432 NEAL R. GROSS & COMPANY,-INC. (202)232-6600 1323 RHODE ISLAND AVENUE, N.W., WASHINGTON, D.C. 20005
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30 1 to: the.NRC for"your approval', and we still.are committed.
[ 2 to that.
3 I ' think- we can work out. any 1 probl ems . I'm3 4 hopeful that.we.can. We've had some discussions withithe:
5, Commonwealth, and I'11 let Mr. McNeill fill you in on.the'.
6 . latest ' developments there.
7 MR. McNEILL: I think tnere are two issues'here,.
I
'S one is the agreement and the other one is access. We:have 9 a continuing relationship 'with both the Commonwealth of 10 Pennsylvania, through their Department of Environmental 11 Regulation, their Bureau of Radiation Protection, and the 12 State of - Maryland , through their. - Department of ' Natural-13 . Resources. We provide access to individuals from each of 14 those groups, who have engineering background, to observe.
15 our plant operations and the administration of the plant, 16 so that. they have unfettered, unrestricted access to our 17 . facilities, and can come and go as they please.
18 They, for instance, have been in and reviewed a 19 number of our commitments that we had . made to them in 20 terms of various programs. They've also been observers 21 during the IATI, and we intend to continue that kind of 22 access and communications with the state.
23 You are familiar with the fact, I believe, that 1
24 we do have a tentative agreement which has received staff
. {. 25 comment and requested modification to the agreement. We <
1 (2021234-4433 NEAL R. GROSS & COMPANY, INC. (202)232-6600 f 1323 RHODE ISLAND AVENUE, N.W., WASHINGTON, D.C. 20005
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1 have' assured the Commonwealth of. Pennsylvania, that'we'are-( 2 wi11ing to work with them and the NRC staff,!to seek.
3 eventual resolution of;that particular issue, and we stand 4 ready.to. participate in those' discussions'.
[.-
5 CHAIRMAN ZECH: Well, thank you very much.
L 6 MR. PAQUETTE: I. might . add that - we 'shouldn ' t 7 neglect the vury important relationship that we have with 8 the State - of - Maryland, and we have also had a. number of 9 'very f r u'i t f u l discussions ' with the s t a. f f ~ a n d the 10 representatives of the Governor's office, and we have 11 assured them that we will,give the State of Maryland the 12 same . access' .to any materials and reports that we give to. ;
. 13- the Commonwea3th of Pennsylvania.
14 . CHAIRMAN ZECH: The State of Maryland,'I know, 15 was concerned, essentially, about the sub' ject of quality-l 16 control. -Could you discuss that briefly, and give us any 17 thoughts you may have on progress you've made, as'far as ,
i 18 satisfying that concern?
19 MR. McNEILL-: Well, I think t.h e issue --
I do 20 not remember specifically the issue, but I believe that it 21 revolved around the movement that we are making to 22 reinforce line employee and line supervisory 8
23 accountability for quality control. And I think their 1 1
24 issue was, do not eliminate too quickly, independent 25 quality control in the organization, until you make sure (202)234-4433 NEAL R. GROSS & COMPANY, INC. (202)232-6600 1323 RHODE ISLAND AVENUL, N.W., WAS11INGTON, D.C. 20005
32 1 that you have put in place all the necessary attributes,
( 2 so that line management picks up that particular 3 inspection requirement.
4 CHAIRMAt! ZECH: I think it was quality control 5 specifically in reference to plant modifications that 6 you'd made.
7 MR. McNEILL: Oh, yes. All right. It was an 8 issue that we have found over the last several months, a 9 number of deficiencies in completed modifications, and I 10 believe that we, through -- this was also a staff issue, 11 and we have provided information and analysis of our 12 review of that which, I believe, will satisfy the state 13 also.
(' .
14 CHAIRMAN ZECH: All right. Thank you.
15 Well, let me just say this, before we call the 16 staff up for their views today, that if today or sometime 17 when we feel we're ready to authorize restart of the Peach 18 Bottom facility, the Commission, of course, would hope 19 that you would never again become complacent to the point 20 where it would appear that complacency had set in, and 21 allow the plant to degrade to the condition of where--
22 that existed at the time of shutdown.
23 We don't need to go into that. You've heard it 24 all before. I think you've addressed the issues very 25 responsibly but, needless to say, this is something that (202)234-4433 NEAL R. GROSS & COMPANY, INC. (202)232-6600 1323 RHODE ISLAND AVENUE, N.W., WASHINGTON, D.C. 20005
33 i we will not forcet. We would hope you would not forget it 2 be-cause. as I've stated before, it would at least appear 3 to r+ that at that time. management at the plant either 4 was not aware of the conditions going on or, if they were 5 aware of it, they condoned it and, in my judgment, neither 6 of those conditions is acceptable.
7 So, it's a very important lesson to learn.
8 You've learned it, perhaps -- I hope you've learned it 9 but, if you have, it's been the hard way but, needless to 10 say, I hope it's a lesson learned, not only by your 11 utility but by all the utilities in our country. That is 12 not a condition that this agency, this Commission, will
. 13 stand for.
L,.
14 We need to do better than that, and I think that 15 it's something that we should always remember and 16 recognize that we simply can't accept those kinds of 17 conditions. That's completely unacceptable.
18 So, if we do authorize restart, let's not ever 19 forget that lesson that's been learned so painfully.
20 MR. PAQUETTE: I think we certainly have learned 21 the lesson, and you have our commitment that we will do 22 everything in our power never to let that condition ever 23 happen again at Philadelphia Electric.
24 CHAIRMAN ZECH: All right. Thank you very much.
y 1 - 25 Let's call on the NRC staff then, and thank you (202)?34-4433 UEAL R. GROSS & COMPANY, INC. (202)232-6600 1323 RHODE ISLAND AVENUE, N.W., WASHINGTON, D.C. 20005
i 24 l
' l va r; r . fcr your presentation here today. '
fl 3.. J 2 .Uhsreupon, the representatives of Philadelphia 3 Fir - ric Corpany left the table, and the NRC staff came 4 #r.rward and were seated.)
5 CHAIRMAN ZECH: Mr. Stello, you may proceed.
f IP . STELLO: Thank you, Mr. Chairman.
~7 Before we begin the presentation, there are two E -tt-rs that hava corr to my attention, I received today.
9 that I thought I would mention at the outset, The first is 10 #-nr the C o r:m o n w e a l t h of Pennsylvania Department of 11 Er.vironwntal Resources, from Mr. Davis. It's addressed 12 to ynn 13 When I read the letter, I decided it would be 14 appropriate to contact his office, which I did; spoke with 15 his deputy, and indicated that, in my view, it was 16 necessary for us to get together to make sure that (a) we l '7 understood what the issues were and, (b) we would find a 1E way to resolve ther.
19 We have, in fact, arranged for such a meeting, 20 and will be meeting with representatives from the 21 Governor's office as well as from the Department of 22 Environmental Resources tomorrow afternoon at 1:00 23 o' clock. I am hopeful that that will be a useful and 24 frud-ful discussion, and we can find a way to deal with 25 this issue. The subject matter deals with the agreement (202)234-4433 1:EAL R. GROSS & COMPANY, INC. (202)232-6600 13?3 PHODE ISLAND AVENUE, N.W., WASHINGTON, D.C. 20005
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35 1 licensee mentioned when he was here.
2 The second piece of correspondence, again, is a 3 letter addressed to you, Mr. Chairman, from Mr. Young, 4 that I received this afternoon. I have read the letter, 5 and I have not found anything in this letter which would 6 indicate that we have a problem that would preclude 7 restart.
8 I think it is appropriate that we try to have a 9 rieeting with Mr. Young, which we will attempt to do but, 10 in any case, we will prepare a response back to Mr. Young, 11 i f' we can't succeed in meeting him, but we will try to 12 meet with him.
{ 13 In my view, neither the letter from the 14 Department of Environmental Resources or the Young letter 15 stand in the way of moving forward --
16 CHAIRMA!I ZECH: The letter from the State of 17 Pennsylvania you're referring to, the Commonwealth letter?
18 MR. STELLO: The Department of Environmental 19 Resources from Pennsylvania.
20 CHAIRMAN ZECH: Yes. All right.
21 MR. STELLO: Neither letter, in my view, stands 22 in the way of the restart.
23 Let me say at the outset that it is over two
. 24 years ago when we had to issue the order to shut the plant 25 down, and it was a very unhappy and sad time, to have to (202)234-4433 NEAL R. GROSS & COMPANY, INC. (202)232-6600 1323 RHODE ISLAND AVENUE, N.W., WASHINGTON, D.C. 20005
I a
,a j 36 1 take that rather dramatic action.
(- 2 I think as you will hear from the staff this 3 afternoon, the actions that have followed as a result of 4 that order were very sweeping and very significant. For 5 me, I think it is easiest to summarize that by saying, 6 every level of management, from the shift supervisor up to 7 and including the Chairman of the Board, have been 8 replaced in the company, and the people that have replaced 9 then we have watched very carefully, met with, interacted 10 with, are satisfied that the kind of problems that they 11 had two years ago, we are satisfied have been corrected, 12 and we are comfortable with this particular team not
( 13 allowing that kind of a prob 1cm to reoccur.
14 We, of course, will be watching very carefully, !
15 for even the slightest hint of such a problem, and I 16 assure you, we will bring any hint of such a problem 1
17 forcefully, both to the attention of the Commission as 18 well as the licensee.
19 With that brief introduction, let me ask Dr.
20 Hurley to begin, and then we will go, of course, to the l
l 21 assessment from the region, Bill Russell, following that.
22 CHAIRMAN ZECH: Thank you very much.
23 Dr. Murley, you may proceed.
24 DR. MURLEY: Thank you, Mr. Chairman.
25 In addition to the changes that Mr. Stello made (202)234-4433 NEAL R. GROSS & COMPANY, INC. (202)232-6600 1323 RHODE ISLAND AVENUE, N.W., WASHINGTON, D.C. 20005
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37i 1 in the management ,. ' there have been many - changes at the
.{'1 4
- .2 site itself. .The. staff will describe.these. changes. :The
- i. 3 regional staff," Bill Russell, is here'from Region I. Bill L 4 7"ane and the senior resident inspector, Tom Johnson, is.-
-5 here. They will discuss the readiness of the - plant: to 6 restart.
7 On my right is Bob Martin, and he-will' discuss.
S .some of the evaluations that NRC has done of.the company's 9 recent performance. Mr. Martin?
10 CHAIRMAN ZECH: Thank you. You may proceed.
Il MR. MARTIN: Good ofternoon.
12 As noted, the order requires that a plan be 13 submitted, which described a program that would ensure.
{'
14 safe operation and compliance with all requirements.
15 The licensee's initial response came in in 16 August, 1987, and after a number of exchanges of.
17 correspondence and review meetings, this effort culminated 18 in the plan for restart, revision 1, in April of 1988.
19 That plan acknowledged the shutdown issues 20 flowing from the order, and identified four principal root 21 causes relating to corporate management, station 22 management, operator resources, and culture.
23 The staff reviewed the plan to assess the 24 responses to the root causes and to verify that 25 appropriate implementation schedules for the action items (202)234-4433 NEAL R. GROSS & COMPANY, INC. (202)232-6600 1323 RHODE ISLAND AVENUE, N.W., WASHINGTON, D.C. 20005
4 38 1 identified therein had been specified.
( 2 The staff. issued its findings in a safety 3 evaluation report, in October of 1988, wherein we 4 concluded that the plan met the requirements of the order.
5 Opportunities were provided for public comment 6 on the licensee's plan in the Fall of 1987 and in May of l
7 1988, both in the States of Maryland and Pennsylvania.
8 These comments were responded to in an appendix to that 9 Safety Evaluation report.
10 In summary, the Safety Evaluation Report 11 presented the results of the staff's review of the 12 licensee's programmatic plan for restart. The licensee's
( 13 performance in implementing the plan was also assessed by 14 further staff rev.iews and inspection activities, which 15 will now be addressed by Mr. Russell.
16 CHAIRMAN ZECH: Thank you very much.
17 Mr. Russell, you may proceed.
18 MR. RUSSELL: Thank you, Mr. Chairman.
19 By way of background, I'd like to review our 20 systematic assessment of licensee performance evaluations I
21 as well. The SALP period between February, 1986 and May, 22 1987, which covered the period of the shutdown order, we 23 concluded that operations functional area and the 24 assurance of quality functional areas were unacceptable, f.
25 and they were not rated at all. .
1 (202)234-4432 NEAL R. GROSS & COMPANY, INC. (202)232-6600 1023 RHODE ISLAND AVENUE, N.W., WASHINGTON, D.C. 20005
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In the subsequent evaluation in June, 1987 2 through July, 1988, we found that as a result of the 3 management changes and the improved performance on the 4 pert of the operations staff and the independent 5 assessment activities, that those two areas should be 6 rated as Category 2. However, in that same assessment, we 7 concluded that the security performance had declined.
8 We had issued a civil penalty addressing some 9 violations in that area, and I wanted to highlight, in 10 addition, what action has been taken by the company in 11 that area.
12 They have now placed Philadelphia Electric
{ 13 Company management with each of the shifts, with direct 14 responsibility for oversight of the contractor activities.
15 We have had an in-depth inspection to review their 16 performance and how they have handled the transition and 17 their response, the corrective actions from the 18 violations, and we find that the concerns that we had with 19 respect to inadequate oversight of the security contractor 20 force have been resolved. Thrt was during the January, 21 1989 team inspection, and we have just closed out the open 22 items from that inspection, just recently.
23 Overall, we find that the strengths and the
, 24 organization- , the dedicated nuclear organization that's 25 been described earlier, the independent oversight (202)234-4433 NEAL R. GROSS & COMPANY, INC. (202)232-6600 1323 RHODE ISLAND AVENUE, N.W., WASHINGTON, D.C. 20005
1 1
40 1 1
f 1 organization, with their ability to assess and identify q
(- 2 their own problems; the fact that they have managers in 3 all the key positions, which have demonstrated leadership 4 skills; and they have increased the number of licensed 5 operators and part of the power ascension program will be 6 getting those operators experience on-shift, with 7 operations above 20 percent power.
R In fact, let me now address our activities to I
9 assess the licensed operators and their training program.
10 This has been quite an extensive evaluation, involving the 11 Office of Nuclear Reactor Regulation as well as the 12 Region. It has involved both programmatic review and an
( 13 evaluation of performance -- in particular, the new shift 14 manager position and his ability to direct the activities >
15 of the team and how they function.
16 We have had extensive time and evaluation both 17 on the Limerick simulator earlier, as well as the Peach 18 Bottom specific simulator at the Singer Link facility. I 19 recall when I last briefed you in October, we had just 20 completed some of those evaluations -- that is, in Octooer 21 of 1988. At that time, we had reviewed f our of six cretts.
22 In December, we evaluated, again, all six crews 23 and their performance. We identified one crew with some 24 weaknesses, and one individual that we had questions 25 about. The licensee conducted additional training and (202)234-4433 NEAL R. GROSS & COMPANY, INC. (202)232-6600 1323 RHODE ISLAND AVtCNUE, N.W., WASHINGTON, D.C. 20005
41 1 perf or mance on the simulator and, in January of 1989, we k- - 2 again observed those two crews, with one crew with an 3 additional individual, and found that they performed quite 4 well.
5 We see that it's been a very effective program 6 both in their ability to operate together using procedures 7 check-off, the formality of communications, and I would 8 like Tom Johnson, the senior resident, to characterize for 9 you because he was at Peach Bottom before the shutdown 10 order, and has seen the change that has occurred sort of 11 at the level where the senior resident interacts with them 12 on a day in and day out basis. Tom?
{ 13 CHAIRMAN ZECH: Thank you very much. You may 14 proceed.
15 MR. JOHNSON: Mr. Chairman, Commissioners, good 16 afternoon. My name is Tom Johnson, and I am the senior 17 resident at Peach Bottom. I've been in that position for 18 four years -- two years before the shutdown and two years 19 since.
l l 20 Since the shutdown, I have seen a number of 21 changes. I'd like to give you my personal first-hand 22 experience of scate of those changes as they relate to the 23 control room.
24 A lot has been said about the Peach Bottom 25 culture before the shutdown and since, especially how that (202)234-4433 NEAL R. GROSS & COMPANY, INC. (202)232-6600 )
1323 RHODE ISLAND AVENUE, N.W., WASHINGTON, D.C. 20005 l L____________---___ __ _ J
42 i ru3ture relates to the control room operator activities.
2 Like I said, since the shutdown, many personnel 3 changes have occurred. The operators have gone through 4 n.any retraining phases, including simulator retraining.
5 We have taken -- the agency has taken enforcement action 6 against their licenses.
7 Of the 36 licensed operators who were on-shift 8 at the time of the shutdown, 24 currently remain licensed.
9 The other 12 have either retired or are in other places in 10 the organization.
11 I guess the biggest change that I've seen at 12 Feach Bottom since the shutdown, is in the area of
( 13 improved shift leadership. I think this is primarily due 14 to the addition of the shift manager on each shift team.
15 The shift manager, as you recall, is a degreed, 16 licensed senior reactor operator, who had a number of 17 years experience at Peach Bottom. These individuals have 18 been on-shift, operating with the crews now, for about a 19 year and a half.
20 The shift managers have demonstrated strong 21 leadership skills, and I can comment on this by my i
22 personal observations. I have noted their strong 23 leadership during simulator evaluations, the ones that Mr.
24 Russell was talking about. I personally observed each and 25 every one of those evaluations.
(202)234-4433 NEAL R. GROSS & COMPANY, INC. (202)232-6600 1323 RHODE ISLAND AVENUE, N.W., WASHINGTON, D.C. 20005
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1 .I have noted their command and control ability
- . 2 and leadership ability during routine shift observations.,
3 including shift turnover activities. I have noticed.their 4 ability to control the shift during actual . plant 5 transients. These are transients that'have occurredsince 6 the plant has been shutdown.
7 Their-command and control ability has been very 8 effective. This was noted, 'like I 'said , during the 9 simulat'or evaluation exercises, and also during the recent-10 integrated assessment team inspection.
11 In summary, these shift managers have-been fully.
12 integrated into and accepted by each shift crew.
The second positive change that I have noted
{ 13 14 since the shutdown, is the ability of the operators 'to 15 work as a team. I believe this is something that was 16 lacking before the shutdown.
17 This teamwork ability has been demonstrated 18 during simulator evaluations and during actual in-plant 19 observations by myself. Each shift crew realizes that an 20 individual weakness in that crew, or individual failure of 21 that crew, means that the entire shift team fails.
22 These crews were reconstituted about a year and t
23 a half ago, at the completion of their training, at about 24 the same time that the shift managers went on-shift. And 25 when I talk of the shift team crew and the ability of them (202)234-4433 NEAL R. GROSS & COMPANY, INC. (202)232-6600 1323 RHODE ISLAND AVENUE, N.W., WASHINGTON, D.C. 20005
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44 i 1
I to work together as a team, I'm including the leader,
..k- 2 which is the shift nanager, the senior reactor operators, 3 or shift supervisors, the reactor operators, the shift 4 technical advisers, and the non-licensed operators. So, 5 rtally, it is an integrated team.
6 The third change I have noted an improvement 7 since the shutdown, is a big change and a big improvement, 8 in operator attitude, behavior and an overall improvement 9 in control room formality.
10 I can personally relate to this by the following 11 observations that I have made since the shutdown. I know, 12 Mr. Chairman and Commissioners, you have been to Peach
( 13 Bottom since the shutdown, but one of the most striking 14 things I think you notice when you walk into the control 15 room, is that it is much brighter. The control panels 16 have been repainted and relabeled. They are better than 17 Limerick. They've implemented a number of the human 18 factors enhancements, and I think it makes the plant 19 better to operate and the control room a better place to 20 be.
21 The operators' personal appearance has improved.
22 They all tend to wear a color-coded uniform, including a 23 tie. They do have a better professional appearance.
24 Communications have improved. I have noticed 25 this personally. We noted this during the integrated team (2021234-4433 N'3AL R. GROSS & COMPANY, INC. (202)232-6600 132 3 RHODE IS' SAND AVENUE, N.W., WASHINGTON, D.C. 20005
g, ,,.^
u, 45 1 inspection. This is including face-to-face communications
- l
-- 2 and the use of repeat-backs.
3 Another improvement that I' have' noticed in the 4 area of control room formality, is a much improved 5 procedure of compliance by the control room operators. I 6 have personally observed that when operators are-7 performing an evolution, if they come to a step that they 8 can't do, or they come to an evolution that no procedure 9 exists, they will stop the evolution until they get a 10 procedure change, or they will get a new procedure, .and 11 that is something that did not happen before the shutdown.
12 Management has provided a better definition of 13 operator expectations, in the development and issuance of
{.
14 an operations manual, which is a very good document, and 15 we reviewed this 'ocument in detail during the integrated 16 team inspection.
17 In addition, better information is now available 18 for the operators to assess and check on plant status and 19 equipment status. This is a much improved area since the 20 shutdown.
21 In conclusion, I'd just like to say that I can 22 personally inform the Commission that I have seen an 23 overall improvement in licensed operator behavior, in l
24 control room formality, in control room facilities, in 25 shift management and shift leadership, and in plant '
(202)234-4433 NEAL R. GROSS & COMPANY, INC. (202)232-6600 1323 RHODE ISLAND AVENUE, N.W., WASHINGTON, D.C. 20005
46 1 operating procedures.
2 'I'd like to end with a caveat that says'that the 3 ability of these changes and improvements to remain over 4 t i m e', can only be assured. by continued effective
.5 management attention and eversight. .Thank you.
6 CHAIRMAN ZECH: Thank you'very much.
7 MR. RUSSELL: Mr. Chairman,,since the shutdown 8 in March of 1987, the staff has expended approximately 9 15,000 hours0 days <br />0 hours <br />0 weeks <br />0 months <br /> of direct inspection activity at the 10 facility. We've had a number of team inspections that:
11 have looked at technical issues. We've had maintenance 12 team inspections. We've evaluated the quality. of
( 13 emergency operating procedures, and we 've _ looked at i;he 14 ability of the company to respond to a simulated casualty 15 involving'off-site releases. We've looked at the ability 16 of the company to assess its own performance.
I mentioned earlier the secc.ity program. We've 18 had an in-depth electrical team inspection that's looked 19 at the plant. In each of these cases, there were a number 1 20 of items that were identified. I would characterize it in 21 the main, the significant items were previously identified 22 by the company. There were not surprises. It reinforced 23 the staff's conclusion as it relates to the company's
)
24 ability to assess their own performance.
25 I would like to, however, highlight two items (202)234-4433 NEAL R. GROSS & COMPANY, INC. (202)232-6600 1323 RHODE ISLAND AVENUE, N.W., WASHINGTON, D.C. 20005
s,.. . ... .
47 I which occurred this weekend. Saturday evening, . in the-
- 2 process of cleaning . some fuses, to remove.some. lubricant 3 on the fuse holder clips and then reinstalling the fuses, 4 an individual did get some steps --
not steps in the 5 procedure out of sequence, but one f use holder was 6 installed improperly,,such that the fuse was not in place.
7 When the subsequent fuse was inserted, it was a control 8 power fuse. There was a sensed loss of power which did 9 result in a containment isolation signal and an insertion 10 of a' half a scram.
11 We believe- that this is an isolated operator 12 error. There:may be some need for procedure revision, a
- 13 caution with respect to how a fuse holder is inserted.
14 When you insert it one way, the fuse is in line; if you 15 rotate it 180 degrees. the fuse is removed from the 16 circuit, and it was simply installed improperly.
17 There was a second item which is being carried-18 by the staff at this point, as an open item prior to 19 restart. This has to do with the standby liquid control 20 system, inadvertent actuation of the explosive actuation-21 valves, the squib valves that were mentioned by ' the 22 licensee. They are evaluating that particular event. It 23 appears that there were errors in the procedure that 24 contributed to it.
25 Once the licensee has completed their review and (202)234-4433 NEAL R. GROSS & COMPANY, INC. (202)232-6600 1323 RHODE ISLAND AVENUE, N.W., WASHINGTON, D.C. 20005
l 48 1 presented their results to the staff, we'll be in a b 2 position to determine whether there are any further 3 follow-up actions required. However, to put in context, 4 we e:i ph a si z ed , as Mr. King will discuss, the quality of 5 procedures, and we specifically chose some of the more 6 difficult surveillance procedures to evaluate during our 7 team .spection, as it relates to performance, and there 8 were a number that were observed as well, and we believe 9 that this is, at this time, an isolated case, so we do not 10 see a need to hold up, other than completing the review 13 process to make sure that this particular item is well 12 understood.
13 As it relates to the power ascension program and
{
14 the staff activities for monitoring, as has been described 15 by the licensee, there are formal hold points at 35 16 percent power, 70 percent power, and 100 percent power.
17 In each case, there will be a period prior to that, of 18 evaluation by the licensee, with a report from the 19 licensee to the staff with respect to their findings, both 20 how the people and the hardware performed.
21 In parallel with that, there will be an in-depth 22 evaluation by the staff, with a comparison of our findings 23 to the licensee findings, which would form part of the 24 basis for a staff release.
{ 25 In addition, early in the startup program--
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49 1 .because this. is a plant that's been shutdown for some 2 period of time --
you heard Mr. Franz describe some plans
-3 for what he called some' informal or plant manager hold l
4 points to ensure that the activities were well contro13ed 5 and . monitored --- the staff, as a part of our power 1
6 ascension inspection plan,'has included augmented coverage 7 during those ' periods of time, to evaluate the activities 8 going on, and we will.have periods of time where we have 9 round-the-clock -coverage , .and so we will be monitoring.
10 those activities very closely as well, and I'll . be 11 receiving reports on those activities during startup' power 12 ascension.
13 One of the important activities on the part of
{
14 the staff, was a judgment on our part as to how well has 15 the company implemented the things that it committed to in 16 its restart plan.
17 We developed' quite a comprehensive inspection 18 plan to assess that, an integrated assessment team 19 inspection, and Mr. Kane, who is the Director of Reactor 20 Projects in Region I and was also the Chairman of the 21 Restart Assessment Panel that was formed to coordinate'the 22 review, was involved with that team inspection, and I'd 23 like to have him, at this time, brief you on the results
__ 24 of that inspection.
25 CHAIRMAN ZECH: Thank you very much. You may (202)234-4433 NEAL R. GROSS & COMPANY, INC. (202)232-6600 1323 RHODE ISLAND AVENUE, N.W., WA S HING'L . ' D.C. 20005
50 1 proceed.
2 MF KANE: The integrated assessment team 3 inspection. by its very nature, is very intensive and 4 broad-scope inspection. It's timing is such that we 5 conducted, near the end of the process, at a time when the 6 licensee has certified to us that they have implemented 7 their plan and it is working. The team inspection was 8 conducted in February, 1989. It was led by Mr. Jim 9 Linville, of my staff.
10 It was a 15-person team from both the Office of 11 Nuclear Reactor Regulation and also from Region I, and 12 there were approximately 1200 hours0.0139 days <br />0.333 hours <br />0.00198 weeks <br />4.566e-4 months <br /> of direct inspection 13 involved in that team inspection.
{
14 It's purpose was two-fold. First of all, to 15 assess the effectiveness of the restart plan 16 implementation, and to assess the readiness of the 17 management controlled programs and personnel to support .
18 restart and safe operation.
19 In order to accomplish this, we reviewed some 20 areas that I'd like to highlight for you. First of all, 21 the shutdown order issues; the site management leadership; 22 the licensed operator resource development and training; 23 station culture; and corporate oversight, but going beyond 24 the issues of the shutdown, we looked at other areas as b 25 well -- principally, security, radiological controls, (202)234-4433 NEAL R. GROSS & COMPANY, INC. (202)232-6600 1323 RHODE ISLAND AVENUE, N.W., WASHINGTON, D.C. 20005
- k ' '. . ' . ,
51 i : maintenance and surveillance, and engineering and technical. support.
- 2 .
3 So. in effect, we, in this inspection, had a 4 snapshot look at all of the functional areas that go into 5 the systematic assessment of licensee performance.
6 The findings'of that inspection-were,'first, .the 7 corporate action plan is in place and being effectively 8 . implemented. The performance'was improving in all of the.
9 SALP functional areas, recalling, of course,.that the SALP 10 had been conducted quite a bit earlier. And, finally, 11 that the. licensee was ready to support restart and safe 12 operation after resolution of certain iefined issues.
13 I also want to discuss the state involvement and
,{
14 public briefings that followed the IATI. Both the 15 Commonwealth of Pennsylvania and the State of Maryland had 16 full-time observers during the IATI. Both were very 17 knowledgeable and involved, and responded with 1'etters 18 generally supportive of the IATI conclusions.
19 Following that, three additional public meetings 20 were held on February 28th and March 1st of this year, to 21 explain the status of the staff's review, including the 22 results of the integrated assessment team inspection.
23 We also invited any additional comments that 24 people may have concerning the restart of Peach Bottom, 25 and responded to the comments at the meeting. As such, (202)234-4433 NEAL R. GROSS & COMPANY, INC. (202)232-6600 1323 RHODE ISLAND AVENUE, N.W., WASHINGTON, D.C. 20005
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1 these meetings were somewhat different than those l I- 2 described earlier. that were used in the assessment that 3 led to the safety evaluation report, different in that we 4 provided a briefing of the public on where we stood, and 5 received and responded to any comments that may still be 6 there that would affect the decision that we had to make 7 with regard to restart of the plant.
8 At this point. Bob Martin will discuss the 9 reviews of the Advisory Committee on Reactor Safeguards.
10 CHAIRMAN ZECH: Thank you very much. You may 11 proceed.
12 MR MARTIN: The Advisory Committee on Reactor
( 13 Safeguards, in a subcommittee meeting and in an full 14 committee meeting on March 8 and 9, did review the plan 15 for restart, the programmatic plan and implementation of 16 it, up to that point in time, for the Peach Bottom l
17 Station.
18 The Committee acknowledged that there have been 19 major changes in corporate and plant management, in 20 staffing training and procedures. The Committee found no 21 reason to disagree with the staff's assessment of the 22 licensee's resolution of the root causes and readiness.
23 The Committee also endorsed the plans for 24 continued close monitoring of the Peach Bottom operations.
25 The Committee's letter reporting these results from its (202)234-4433 NEAL R. GROSS & COMPANY, INC. (202)232-6600 1323 RHODE ISLAND AVENUE, N.W., WASHINGTON, D.C. 20005
< j. : .a ,
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53 1 l347th meeting was issued on March 14, 1989.
2 I would also like to discuss the overall 3 conclusions of the staff's review .ef forts. at this time.
{
.4 Staff has concluded that the identified root causes do 5 address the shutdown order issues; that the plan for 6 restart addresses those root causes; that the plan is 7 being ef f ectively implemented, and that ~ the operating 8 . staff is prepared to begin the power ascension testing 9 program and operations at Peach Bottom.
10 Unless there are questions, I will now turn our 11 discussions over to Dr. Murley.
- .2 CHAIRMAN ZECH: Thank you very much.
{ 13 Dr. Murley, you may proceed.
Mr. Chairman, based on 14 DR. MURLEY: Thank you.
15 the evaluations that you've heard, and the conclusions, 16 staff recommends that the Commission authorize restart of 17 the Peach Bottom units, and . allow the staff to proceed 18 with oversight of power ascension testing program for Unit 19 2. .This includes initial release to permit operation to 20 35 percent power, when the staff is satisfied. Likewise, 21 when the staff is satisfied that performance is adequate 22 at 35 percent power, we would propose release to 70 23 percent power, release to a hundred percent power, and l .
24 then, ultimately, final release from the order.
25 MR. STELLO: That concludes our presentation, (202)234-4433 NEAL R. GROSS & COMPANY, INC. (202)232-6600 1323-RHODE ISLAND AVENUE, N.W., WASHINGTON, D.C. 20005
54 1 Mr. Chairman. We're finished.
2 CHAIRMAf! ZECH: Thank you very much.
3 Questions from my fellow Commissioners?
4 Commissioner Roberts?
5 COMMISSIONER ROBERTS: I remember well when 6 Peach Bottom got shutdown because I was the Acting 7 Chairman. You were on travel out of the country.
8 Vic, you called me and told me what the staff 9 had discovered, and said it was your intention to shut the 10 plant down. and I listened and I said, "Vic, there's one 11 question. Is there a potential public health and safety 12 question here?" And you said, "Yes".
( 13 Now, my question to you today is, the staff is 14 recommending under this very detailed oversight routine, 15 that they be allowed to restart. Do you make today's I 16 recommendation with the same degree of conviction that you 17 made in March of '87, that it was proper to shut them 18 down?
19 MR. STELLO: I am satisfied that the plant is 20 ready to safely start up. I would add the caveat that we 21 will watch very carefully, to make sure that there's 22 absolutely not even a hint of complacency developing 23 within the system, at all levels. I am satisfied.
24 COMMISSIONER ROBERTS: I don't bave any other
(
25 questions.
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55 1 CHAIRMAN ZECH: Thank you very much.
- 2 Commissioner Carr?
3 COMMISSIONER CARR: Let me ask the resident 4 inspector, it's been my experience that cultures are hard 5 t. o change. Do you think that you'll be able to detect any 6 falling back in the ways, should it occur?
7 MR. JOHNSON: Mr. Commissioner, I hear that 8 cultures are very hard to change, and I think you first 9 have to change behavior and attitude, and I think that is 10 the first step. I think it will probably take years to 11 change the culture.
12 As far as being able to detect it, I believe we 5 13 will. We are going to observe power ascension very
._ a 14 closely. We will have round-the-clock coverage for a good 15 period of the time. We'l3 have supplemental coverage.
16 This is in accordance with our operating plan that the 17 reuion has approved, to observe this power ascension, and 18 it's going to take months and months for the first unit 19 and, for the second unit, it'll take a period of time 20 also.
21 I believe that with our knowledge of Peach l ,
22 Botton, I believe we can detect a potential citange back to 23 the old ways.
l 24 COMMISSIONER CARR: I guess my concern is not 25 with the ongoing test program, it's when that final (202)234-4433 NEAL R. GROSS & COMPANY, INC. (202)232-6600 1323 RHODE ISLAND AVENUE, N.W., WASHINGTON, D.C. 20005
,.. .,r 56-1 release ~ comes and you and your co-resident are the only-2' guys on the sita, do-you.think you'll be able to detect.it
.3 if it occurs? That's my problem.
4 MR. JOHNSON: I guess I'd like~ to believe we 5 could.
6 COMMISSIONER CARR: I guess I'd like'to believe 7 we could have before, but --
8 MR. STELLO: Well, if I might, Commissioner Carr 9 __
10 COMMISSIONER CARR: Sure.
11 MR. STELLO: Remember, one thing that we did 12 issue is a rule, so that from now on, our people can get
(; 13 in that plant unannounced. There is a prohibition by 14 regulation, to announce the NRC people coming in on all 15 shifts, at anytime, day or night, unannounced. I think 1.6 -given that we can get in that plant anytime, day or night, 17 and not be announced, will go a long way to providing me 18 with a lot more confidence. We can get in there and find 19 it.
20 COMMISSIONER CARR: Okay.
21 CHAIRMAN ZECH: I'd like to ask a question of 22 the staff concerning the State of Maryland's concerns on 23 the corrective - actions that the licensee has taken with 24 respect to the plant modification process and quality.
{. 25 assurance-quality control program.
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57 7- r e you satisfied that those actions are
^
g nropriate-?
^
MF. JOHHSOli: I believe so. I have looked in a detail, at their root cause analysis that they had ongoing C at tha tit ie of the integrated assessment team inspection, 6 some additiocal findings that the NRC staff found during 7 that inspection. The licensee took those findings and-8 factored them into the root cause analysis, determined
? -hat these additional findings were bounded by their oot 10 cause analysis.
31 Ue nave looked at that in detail. I have 12 personally icoked at it, and I am confident that they have 13 -- had identified a weakness and they had taken corrective
(
14 action to incluoe some improved installation procedures, and so e irproved QC inspection procedures, and some 16 irproved training for the people involved in those areas.
17 So, I am confident that they've fixed that problem.
18 CHAIRMAM ZECH: Thank you.
l 19 Mr. Stello, in your earlier comment regarding 20 the State of Pennsylvania, do I conclude from that -- from 21 ynor comment and from the comment from the senior resident 22 inspector, that you ' elieve that the concerns of the State 23 of Pennsylvania and the State of Maryland do not require 1
24 further shutdown. and that you can continue to address
' t, thos e enncernn? Is that your position?
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g: . ,.o 58 1 MR. STELLO: It is my opinion that the 2 Commission need ' not reserve on granting the' staf f' the 3 authority to move with restart,.although the letter that 4 you' . received f rom- Mr. Davis asks that the Commission do 5 not reach a final decision'on restart until the agreement 6 .between the licensee and the State of Pennsylvania is-7 resolved with the staff.
8 That issue, we are meeting on tomorrow.
9 Hopefully, we can resolve it, but we may not, but even if 10 we do not, my recommendation stands, that I do not believe l 11 that this issue ought to stand in the way of restart. We 12 will find a way to deal with solving that problem.
13 I am not sure we can do that tomorrow, but we j
(?
14 . will try. l 15 CHAIRMAN ZECH: All right. Could you perhaps 16 summarize for me what other prerequisites might be ,
1 17 involved prior to your being satisfied to authorize 18 restart? .
19 MR. STELLO: The only two issues that I'm aware 1
20 of are the three that Mr. Russell already mentioned, and I 21 those will be resolved, it's our expectation, by Wednesday 22 of this week.
23 CHAIRMAN ZECH: Are there any others, Mr.
24 Russell?
( 25 MR. RUSSELL: No, sir. As Mr. Smith indicated, L
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4 59 1 they have some modification work that's in final review.
2 They have to go through their prerequisites for 3 criticality, complete the system line-ups and other 4 things. Those actions are controlled by technical 5 specification, and with the exception of the one item to 6 review, their analysis of the standby liquid control 7 explosive valve actuation event, the staff is satisfied 8 that the items have been resolved, and we are ready, 9 subject to completion of the normal checklists and 10 prerequisites for startup as required by the technical 11 specifications, that the plant is ready to operate.
12 CHAIRMAll ZECH: All right. Thank you. l
{ 13 Just one final question. You're here today to 14 present to us the staff views on your assessment of 15 whether the Peach Bottom Atomic Power Station is ready to !
16 restart. We are really centering our discussions on Unit 17 Number 2.
18 I think the Commission understands that we are 19 authorizing -- if we authorize the restart of the station, l l
20 you will not come back to us with -- specifically, with a 21 formal Commission meeting for restart decision, but that 22 you will be watching Unit 2 carefully, and if you decide 23 that it would be appropriate to come to the Commission for 24 Unit 3, you will do so, is that correct?
25 MR. STELLO: Yes, sir.
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60 n-1 CHAIRMAN ZECH: 'All right. All right.
- 2 Any other comments?- Questions?
3 COMMISSIONER CARR: I have one comment.
4 CHAIRMAN.ZECH: Go ahaad.
I 5- COMMISSIONER CARR: It'was my understanding from 6 Mr. Paquette, that .there are some Peach Bottom operators I i
j 7 in the audience, and I'd like to give'you a little charge' '
i 8 as well as our resident inspector. ]
We license you to operate the plant safely. J 9
10 That doesn't mean that you are only responsible for your-11 operations, it means you are also responsible for your 12 Efellow operators. And I would certainly expect that you
( 13 14 wouldn't tolerate any performance on the part of your fellow operators that we should know about and not f ir.d j
15 out.
16 CHAIRMAN ZECH: I agree with th'at a hundred 17 percent. It's a special trust and confidence that all 18 operators have when we issue this license on behalf of the 19 United States Gove rnst en t , and we expect you to carry out 20 those responsibilities of special trust and confidence, in 21 a way that would encourage you to ensure that your fellow 22 operators are also as responsible as you are, for all.your 23 activities, and to inform the authorities, Philadelphia 24 Electric and the NRC, if that is not the case.
25 Are there any other comments or questions?
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61 1 (No response.)
-- 2 Well, let me thank all of you .for this
'3 presentation this afternoon. I would hope;that both the 4 Philadelphia Electric Company and all of our other 5- licensees, have learned fully the lessons that have come 6 form this plant shutdown.
7 Hanagement at Peach Bottom and at the 8 Philadelphia Electric Company's corporate office, at that 9 time, failed to carry out its safety. responsibilities, and 10 the operators at the plant violated the trust- and 11 confidence of the American people that this agency had 12 placed in them, through their individual NRC licenses.
13 As a result of the problem that were identified 14 at the Peach Bottom Plant, Philadelphia Electric Company 15 has undertaken the most significant change in the 16 management organization of any-. utility in the United 17 States that I am aware of. Entirely new senior management 18 team at Philadelphia Electric Company must continue to 19 emphasize the need for personal dedication and individual 20 accountability, for all individuals engaged in activities 21 that have a bearing on the safety of its nuclear power 22 plants.
23 Management must continue to provide the 24 leadership that nurtures and perpetuates a safety culture 25 at each of its nuclear facilities. The operators at Peach (2021234-4433 NEAL R. GROSS & COMPANY, INC. (202)232-6600 1323 RHODE ISLAND AVENUE, N.W., WASHINGTON, D.C. 20005
62 1 Bottor must never again betray the special trust and 2 confidence of the public whose safety they are duly bound 1 3 to protect.
4 I urge all NRC power reactor licensees, all 5 licensees. to heed these lessons and to take stock of 6 their own individual situations, to ensure continuation of 7 the safety culture at each of their own facilities.
8 T c o rn m e n d the new management team at the 9 Philadelphia Electric Company, for the significant 10 attentiera and the resources they've applied so far, to 11 resolving the issues that resulted from the March, 1987 12 shutdown order 13' You have obviously made significant progress on
'{
14 a long road towards excellent performance. Your challenge 15 now, in ny view, is to implement your commitment to 16 improve performance. I am sure that you realize that the 17 URC expects Peach Bottom Station to show us the results of 18 your efforts. If we authorize restart, we will be 19 watching you very closely.
20 I'd also like to cornmend the NRC staff for its 21 extensive and independent overview of the licensee's 22 program for improvement at Peach Bottom. Considerable 23 professional effort and attention has been devoted by the 24 highly competent staff of the NRC, to monitor progress at 25 the plant and at the licensee's corporate offices. Both (202)234-4433 NEAL R. GROSS & COMPAin , INC. (202)232-6600 1323 RHODE ISLAND AVENUE, N.W., WASHINGTON, D.C. 20005
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63
'l headquarters staff and Region I personnel are to be 2 commended for an outstanding effort.
3 The Commission is aware that the commonwealth of 4 Pennsylvania and the State of Maryland have continuing 5 concerns about operation of Peach Bottom Station, and 6 although the staff has concluded that the concerns of the 7 Commonwealth and the State of Maryland do not require 8 continued shutt'own of the Peach Bottom Station, we do take e,
t h o s e- states' concerns serious?y.
10 The Commission expects the NRC staff and the 11 officials of those two states, to continue their 12 discussions to address the concerns, and to resolve them.
13 It appears from what we've heard today from the 14 presentations from both the Philadelphia Electric Company 15 and the staff, that the staff believes that Philadelphia 16 Electric Company is prepared for the challenges facing it, 17 and that Peach Bottom Unit Number 2 can be operated with 18 reasonable assurance of public health and safety, and that 19 Peach Bottom Unit 2 is, indeed, ready to rectart.
20 Accordingly, are my fellow Commissioners 21 ready to vote to authorize the staff, when all required 22 prerequisites have been met, to permit Philadelphia 23 Electric Company to restart the Peach Bottom Atomic Power 24 Station and, specifically, to allow the NRC staff to
(~ 25 proceed with its oversight of the power ascension testing (202)234-4433 NEAL R. GROSS & COMPANY, INC. (202)232-6600 3323 RHODE ISLAND AVENUE, N.W., WASHINGTON, D.C. 20005 1
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o .
64 3 prograr for Peach Bottom Unit Number 2? Are you prepared
. 2 to vote?
l 3 All those Commissioners in favor then, of 4 allowing Peach Bottom Unit 2 to restart, and the Peach 5 Bottom Statiora Unit 2 to proceed as we have stated, please 6 vote by saying aye.
7 (Chorus of ayes.)
8 CHAIRMAN ZECH: Those opposed?
9 (No response.)
10 I hear none. The vote is 3 to zero to proceed 11 in favor of restart.
12 Thank you very much.
13 We stand adjourned.
('
14 (Whereupon, at 3:25 p.m., the meeting was 15 adjourned.)
36 17 18 19 20 21 22 23 24 25 (202)234-4433 UEAL R. GROSS & COMPANY, INC. (202)232-6600 1323 RHODE ISLAND AVENUE, N.W., WASHINGTON, D.C. 20005
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65 CERTIFICATE OF TRANSCRIBER
(
This is to certify that the attached events of a meeting of the United States Nuclear Regulatory Commission entitled:
TITLE OF MEETING: DISCUSSION /POSSI.BLE VOTE ON PEACH BOTTOM RESTART-PLACE OF MEETING: ROCKVILLE, MARYLAND DATE OF MEETING: APRIL 17, 1989 were transcribed by me. I further certify that said transcription is accurate and complete, to the best of-my ability, and that the transcript is a true and accurate record of the foregoing events.
Nh- u A
v y Reporter's name: PHYLLIS YOUNG
()
l HEAL R. GROSS COURT RfpORTERS AND TRANSCRIBER 5 1313 RHODE IStAND AVENUE, N.W.
(202) 234 4 433 WASHINGTON, D.C. 20005 (202) 232 6 L_-_________--_______-_ _ d
' SCHEDULING NOTES TITLE: DISCUSSION /POSSIBLE VOTE ON PEACH BOTTOM RESTART Sci'EDUL FD; 2:00 P.M. . MONDAY, APRIL .17,1989 (OPEN)
DURATION: APPROX l-1/2 HRS PARTICIPANTS: PHILADELPHIA ELECTPic COMPANY (LICENSEE) 30. MINS
- JOSEPH PAQUETTE, JR.
CHAIRMAN AND CHIEF EXECUTIVE OFFICER
- CORBlN MCNE!LL, JR.
EXECUTIVE V!CE PRESIDENT
- DICKINSON SMITH, VICE PRESIDENT PEACH BOTTcM ATOMIC POWER STATION
- JOHN FRANZ PLANT MANAGER NRC 30 MINS
- VICTOR STELLO, JR., ED0
- DR. THOMAS E. MURLEY, DIRECTOR, NRR
- WILLIAM T. RUSSELL, REGION I
- WILLIAM KANE, REGION I j
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COMMISSION RESTART BRIEFING 41, p> PEACH BOTTOM ATOMIC POWER STATION BRIEFERS:
VICTOR.STELLO, JR.
THOMAS E. MURLEY WILLIAM'T. RUSSELL-WILLIAM F. KANE THOMAS P. JOHNSON ROBERT E. MARTIN 4
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c NRC ORDER E (MARCH 31, 1987)
SHUTDOWN OPERATING UNIT WITHIN 36 H0llRS, MAINTAIN BOTH Ut!!TS IN COLD SHUTDOWN-l 7 DAY RESPONSE (PLAN TO ASSURE COMPLIANCE WHILE SHUTDOWN)
PROVIDE COMPREHENSIVE PLAN FOR SAFE FACILITY OPERATION TO REGInNAL ADMINISTRATOR FOR APPROVAL J
9 F
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REVIEW 0F LICENSEE'S PLAN ASSESS RESPONSES TO ROOT CAUSES APPROPRIATE IMPLEMENTATION SCHEDULE ISSUE SAFETY EVALUATION REPORT OPPORTUNITIES F0P PUBLIC COMMENT 2
. 1 i
SALP EVALUATIONS FEBRUARY 1986 TO MAY 1987
- OPERATIONS AND ASSURANCE OF OllALITY UNACCEPTABLE I i JUNE 1987 TO JULY 1988 )
- OPERATIONS AND SAFETY ASSESSMENT /0UALITY VERIFICATION IMPROVED TO CATEGORY ?
- SECURITY DECLINED TO CATEGORY 3 STRENGTHS l - NUCLEAR DEDICATED ORGANIZATION
- STRENGTHENED INDEPENDENT OVERSIGHT ORGANIZATION
- MANAGERS WITH DEMONSTRATED LEADERSHIP SKILLS
- ADDITIONAL LICENSED OPERATORS WEAKNESS
- INADEQUATE OVERSIGHT OF SECURITY CONTRACTOR 3
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LICENSED OPERATOR TRAINING EVALUATIONS j
OPERATOR ATTITUDE IMPROVEMENT SHIFT MANAGER LEADERSHIP AND SHIFT CREW TEAMWORK EFFECTIVENESS OF LICENSFE TRAINING PROGRAM IN PREPARING OPERATORS SHIFT CREW PERFORMANCE ON PEACH BOTTOM SIMULATOR i
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OTHER TEAM INSPECTIONS MAINTENANCE EMERGENCY OPERATING PROCEDURES (E0PS)
EMERGF.NCY RESPONSE EXERCISE PECO SELF ASSESSMENT PANEL EVALUATION I
SFCURITY PROGRAM ELECTRICAL POWER ASCENSION MONITORING (FUTURE) 5
I INTEGRATED ASSESSMENT TEAM INSPECTION (IATT)
PURPOSE:
ASSESS EFFECTIVENESS 0F RESTART PLAN IMPLEMENTATION ASSESS READINESS OF MANAGEMENT CONTROLS, PROGRAMS AND PERSONNEL TO SUPPORT RESTART AND SAFE OPERATION i
4 6-1
1 i i IATI FINDINGS:
CORPORATE ACTION PLAN IN PLACE AND BEING EFFECTIVELY IMPLEMENTED PERFORMANCE IMPRnVING IN ALL SALP FUNCTIONAL AREAS LICENSEE PEADY T0 SUPPORT RESTART AND SAFE OPERATION AFTER RESOLUTION OF DEFINED ISSUES I
STATE INVOLVEMENT AND PUBLIC BRIEFINGS I:
u 6-2
f.CRS VIEWS MEETINGS ON MARCfl 8, 9, 1989 CONCURRED WITH STAFF FINDINGS ON RESTART READINESS i
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l CONCLUSIONS IDENTIFIED ROOT CAUSES ADDRESS SHUTDOWN ORDER ISSUES PLAN FOR RESTART ADDRESSES ROOT CAUSES PLAN BEING EFFECTIVELY IMPLEMENTED OPERATING STAFF READY w -- ---_- - - -.
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e STAFF RECOMMENDATION THAT THE COMMISSION AUTHORIZE RESTART AND ALLOW THE STAFF TO PROCEED WITH.
OVERSIGHT OF POWER ASCENSION TESTING
! PROGRAM
- INITIAL RELEASE TO PERMIT OPERATION TO 35% POWER
- RELEASE TO 70% POWER
- RELEASE TO 100% POWER
- FINAL RELEASE FROM ORDER l
9
, ,.~._ _ _ _ .. , ......_._._,_ _ _ _. _ , _ -
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t STATEMENT BY JOSEPH F. PAQUETTE. JR.
. CHAIRMAN AND CEO OF PHILADELPHIA ELECTRIC COMPANY TO U.S. NUCLEAR REGULATORY COMMISSION APRIL 17, 1989 GOOD'AFTERN0ON:
I AM JOSEPH PAQUETTE, CHAIRMAN AND CEO OF PHILADELPHIA ELECTRIC COMPANY. MY ASSOCIATES AND I APPRECIATE THIS'0PPORTUNITY TO TELL YOU WHY'WE BELIEVE WE ARE READY TO RESTART PEACH BOTTOM Af1D TO SEEK YOUR APPROVAL TO DO S0.
'WITH f1E AT THIS TABLE TODAY'ARE MR. CORDIN ticNEILL, OUR EXECUTIVE VICE PRESIDENT FOR tlUCLEAR OPERATIONS, liR. DICKINSON SMITH, OUP, SITE VICE PRESIDENT AT PEACH BOTTOM, AND MR. JOHN FRANZ, OUR PEACH BOTTOM.
PLANT MANAGER. ADDITIONAL MEMBERS OF OUR CORPORATE AND PLANT ORGANIZATIONS ARE ALSO IN ATTENDANCE TODAY, AND ARE AVAILABLE TO AflSWER OUESTIONS.
OUR PRESENTATI0fi TODAY WILL CONSIST OF FOUR PARTS. MR. SMITH WILL REPORT ON THE PLANT READIljESS: 11R. FRANZ WILL DISCUSS OUR RESTART POWER TESTING PROGRAti MR. t1cNEILL WILL DISCUSS THE CHALLENGES FACING OUR NUCLEAR OPERATIONS Itj THE COMING MONTHS AND OUR PLANS AND RESOURCES T0 t1EET THEM AND I WILL REVIEW THE SI0tJIFICAIJT EVENTS WHICH HAVE OCCURRED SINCE OUR LAST tiEETING WITH THE COMf1ISSION IN FEBRUARY.
PEACH BOTTOM HAS BEEN SHUT DOWN FOR TWO YEARS. A YEAR AG0, A NEW TOP MANAGEMENT TEAM WAS ELECTED TO DIRECT THE COMI 'Y AND ITS NUCLEAR j OPERATI0f1S. THIS IS OUR THIRD MEETIllG WITH YOU OVER THE LAST SIX l l10NTHS. AT OUR PRIOR MEETINGS, WE PRESENTED THE iJEW ORGAtJIZATIONS AND PROGRAMS WHICH WE HAVE IfJSTITUTED AT PEACH BOTTOM AtJD THE CORPORATE 0FFICES. IN ADDITION WE PRESENTED EVIDENCE OF THE TANGIBLE, POSITIVE RESULTS WHICH HAVE BEEN PRODUCED AT PEACH BOTTOM.
THE CHANGES t1ADE IN OUR CORPORATE AND PLANT ORGANIZATIONS, AND THE
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RESULTS OF OUR CORRECTIVE ACTI0f18 TO BRING ABOUT CULTURAL CHAT 1GE HAVE PRODUCED A QUALIFIED AND DEDICATED TEAM OF MANAGEMENT OPERATORS AND SUPPORTING STAFF, AND AN EFFECTIVE PROCESS TO ACHIEVE EXCELLENCE IN OUR NUCLEAR OPERATIONS. WE HAVE MADE SIGNIFICANT PROGRESS Ill ADDRESSING THE ROOT CAUSES OF THE PREVIOUSLY-IDENTIFIED DECLINING PERFORMANCE AT PEACH BOTTOM AtJD INCULCATING A " SAFETY CULTURE" IN OUR WORKFORCE. WE HAVE ALSO SIGNIFICANTLY UPGRADED THE PHYSICAL PLANT, ItJ TERMS OF BOTH MODIFICATIONS AND MAIllTEf1ANCE, AS WELL AS HAVE IMPROVED THE GENERAL PLANT HOUSEKEEPIt1G. MOST IMPORTANTLY, HOWEVER, WE HAVE MARKEDLY IMPROVED OUR ABILITY TO IDENTIFY AlJD EFFECTIVELY RESPOND TO PROBLEt1S.
l TODAY I AM PROUD TO SAY THAT THE POSITIVE RESULTS OF OUR EFFORTS HAVE BEEN C0f1 FIRMED BY SEVERAL RECEtJT IljDEPENDENT REVIEWS. INP0 C0t1PLETED ITS LATEST ASSESSMENT IN JANUARY, AND INFORMED THE COMPANY IN FEBRUARY THAT THE IMPROVEMENTS ACCOMPLISHED TO DATE HAVE SATISFACTORILY RESOLVED THEIR CONCERNS WHICH WERE ElJUMERATED Ill JAt!UARY 1980. ItlF9 ALSO REMOVED THE CATEGORY 5 RATING FOR PEACH BOTT0ft. AFTER A TWO WEEK INTEGRATED ASSESSMENT TEAM It!SPECTI0lj AT PEACH BOTTOM. THE NRC STAFF HAS CONCLUDED WITH "HIGH CONFIDENCE" THAT PECo "MANAGEMEf;T C0t!TROLS, PROGRA!1S AND PERSONf!EL ARE PERFORMING AT A LEVEL TO SUPPORT SAFE STARTUP AND GPERATION OF THE FACILITY"...AljD "THAT THERE ARE CURREfjTLY tJO FUNDAMENTAL FLAWS IN l PECo'S MANAGEMENT STRUCTURE, t1AllACEMENT PERFORt1ANCE PROGRAMS OR PROGRAM IMPLEMENTATION THAT WOULD INHIBIT ITS ABILITY TO ASSURE REACTOR OR PUBLIC SAFETY DURIllG PLANT OPERATIONS." THE ADVISORY C0t1MITTEE ON REACTOR SAFEGUARDS REVIEW IN EARLY MARCH RESULTED IN A FAVORABLE LETTER TO THE COMMISSION ON PEACH BOTTOM RESTART. I TRUST THAT THE RESULTS OF OUR EFFORTS WERE ALSO EVIDENT TO THOSE OF YOU WHO HAVE RECENTLY VISITED PEACH BOTTOM.
I WOULD NOW LIKE TO ASK DICK SMITH TO DISCUSS Tile RESTART STATUS.
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I IN PREVIOUS MEETINGS YOU HAVE HEARD THE RESULTS OF OUR ACTIONS TO CORRECT THE UNDERLYING CAUSES LEADING TO THE SHUTDOWN OF PEACH BOTTOM AND l TODAY YOU HEARD US DISCUSS OUR CORPORATE COMMITMENT AND RESOURCES TO MEET THE CHALLENGES WHICH LIE AHEAD. WE HAVE COME A LONG WAY SINCE MARCH OF 1987, AND ARE PROUD OF THE ACCOMPLISHMENTS WHICH WE HAVE ACHIEVED. OUR. j VISION IS TO BECOME ONCE AGAIN A RESPECTED LEADER IN THE NUCLEAR POWER INDUSTRY-T0 BE "WORLD CLASS."
WE ARE PROGRESSING TOWARD THIS VISION, WHICH IS SUPPORTED BY THE MANAGEMENT TEAM AND ADOPTED BY EMPLOYEES AT EVERY LEVEL. MORALE IS HIGH AND HAS BEEN DEM0flSTRATED IN MANY WAYS. THE RESULTS OF PROFESSIONALISM AND TEAM WORK HAVE BEEN RECOGNIZED BY VISITORS. INCLUDING INPO AND THE NRC STAFF. OUR BOARD OF DIRECTORS HAS BEEN CONTINUALLY ItJVOLVED IN THE PROCESS THAT WE'VE GONE THROUGH, HAS VISITED THE SITE, AND HAS UNANIMOUSLY AUTHORIZED THE MANAGEMENT TO SEEK YOUR AGREEMENT FOR RESTART.
BASED ON THE .iSULTS OF OUR RESTART PLAN AND OUR SELF-ASSESSMENT, WE CONCLUDE THAT THE NECESSARY CONDITIONS FOR RESTART HAVE BEEN SATISFIED, AND WE ARE READY TO PROCEED W1TH RESTART AND POWER ASCENSION.
IN CONSIDERING CUR REQUEST, I WANT TO CONFIRM TO YOU TODAY OUR COMMITMENT TO SAFETY AND CUALITY, TO RISING STANDARDS OF EXCELLENCE IN J OUR NUCLEAR OPERATIONS AND TO WORKING WITH THE NRC TO CONTINUALLY IMPROVE THE MAIJAGEMENT AND CUALITY OF THE OPERATIONS OF OUR ljuCLEAR POWER l l
PLANTS. WE HAVE INSTITUTI0fJALIZED THAT COMMITMElJT IN OUR CORPORATE GOALS AND LONG TERM PLANS.
ON BEHALF 0F PHILADELPHIA ELECTRIC COMPANY, I RESPECTFULLY REQUEST f YOUR APPROVAL FOR THE RESTART OF PEACH BOTTOM. f THANK YOU.
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TP.AH5MITTAL TO: _ Document Control Desk,-016 Phillips
! ADVANCED COPY TO: The Public Document Rocm DATE: f// '7 /F 9
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FROM:
SECY Correspondence & Records Branch
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- Attached are copies of a Comisten meeting transcript and related meeting 2
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Meeting
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C&R Branch files the original transcript, with attachments, without SECY L* POR is advanced papers.
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