ML041740765
| ML041740765 | |
| Person / Time | |
|---|---|
| Site: | Davis Besse  |
| Issue date: | 05/13/2004 |
| From: | NRC/RGN-III |
| To: | |
| References | |
| Download: ML041740765 (96) | |
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2 3 PUBLIC MEETING BETWEEN U.S. NUCLEAR REGULATORY COMMISSION O350 PANEL 4 AND FIRST ENERGY NUCLEAR OPERATING COMPANY 5 ---
6 Meeting held on Thursday, May 13, 2004, at 3:00 p.m.
at the Ottawa County Courthouse, EOC Room, 315 Madison 7 Street, Port Clinton, Ohio, taken by me, Marie B. Fresch, Registered Merit Reporter, and Notary Public in and for the 8 State of Ohio.
9 ---
10 PANEL MEMBERS PRESENT:
11 U. S. NUCLEAR REGULATORY COMMISSION 12 John "Jack" Grobe, Senior Manager, Region III Office 13 & Chairman, MC 0350 Panel Dave Passehl, 14 Project Engineer Region III Jack Rutkowski, NRC Resident Inspector 15 Anthony Mendiola, Section Chief PDIII-2, NRR 16 Randal Baker, Reactor Engineer Region III Office 17 FIRST ENERGY NUCLEAR OPERATING COMPANY 18 Mark Bezilla, Vice President 19 Barry Allen, Plant Manager James J. Powers, III 20 Director - Nuclear Engineering Clark Price, O350 Process Project Manager 21 Steve Loehlein, Manager - Nuclear Quality Assessment 22 23 24 25 MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
2 1 MR. PASSEHL: Welcome everybody 2 to todays meeting between the NRCs Davis-Besse Oversight 3 Panel and FirstEnergy Nuclear Operating Company.
4 My name is David Passehl. Im a Project Engineer in 5 NRC Region III, and assistant to Christine Lipa, who is the 6 Branch Chief responsible for the oversight of the 7 Inspection Program for Davis-Besse.
8 Next slide, please.
9 The purposes of todays meeting is to inform the 10 public of the NRCs Oversight Panel activities; to discuss 11 the Licensees assessment of plant performance and startup; 12 to discuss the Licensees planned activities going forward; 13 and to receive comments and answer questions from the 14 public.
15 Next slide, please.
16 Todays agenda, following my opening remarks, we 17 will discuss NRC activities. Then, the plant personnel 18 will discuss their assessment of activities since startup 19 and they will discuss their upcoming activities. We will 20 adjourn the NRC meeting and take a break. Then, hear 21 public comments and answer questions of the NRC. And, 22 then, lastly well adjourn the meeting.
23 I would like to make some introductions before we 24 continue. To my left is Jack Grobe. He is the Senior 25 Manager of Region III Office in Lisle, Illinois, and hes MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
3 1 the Chairman of the Davis-Besse Oversight Panel.
2 To Jacks left is Tony Mendiola, Section Chief, 3 Project Directorate 3 in the Office of Nuclear Reactor 4 Regulation in our Headquarters offices.
5 To Tonys left is Jack Rutkowski, hes the Resident 6 Inspector at Davis-Besse.
7 And to Jacks left is Randy Baker, a Reactor 8 Engineer who works in my branch, in Christines branch in 9 NRC Region III.
10 Mark, did you want to go ahead and introduce your 11 side, please.
12 MR. BEZILLA: Sure, thank you.
13 Mark Bezilla with FirstEnergy FENOC.
14 To my left is Clark Price and hes our 0350 Process 15 Project Manager.
16 To my right is Barry Allen, Plant Manager.
17 To his right, Steve Loehlein, Manager of Quality 18 Assessment.
19 And, to his right, Jim Powers, Director of 20 Engineering.
21 We also have a couple of individuals in the audience 22 I would like to introduce. Joe Hagan, our Senior Vice 23 President, Engineering and Technical Support; and Ralph 24 Hansen, our Vice President of Oversight.
25 Jack, just for your information, Ralph has taken MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
4 1 Fred Von Ahns place, and Fred assumed Plant Manager duties 2 at the Perry station for us.
3 Thank you, Dave.
4 MR. PASSEHL: Thank you. Also I 5 failed to mention Jan Strasma, our Public Affairs Officer 6 is in the audience in the back.
7 Would any public officials or representatives of 8 public officials please introduce themselves at this time.
9 MR. WITT: Jere Witt, County 10 Administrator.
11 MR. PASSEHL: Okay. This 12 meeting is open to public observation, and its a meeting 13 between the NRC and FirstEnergy. As I mentioned, we will 14 receive comments from members of the public at the 15 conclusion of the meeting.
16 There are copies of several documents on the back 17 table. We have our monthly newsletter that provides 18 background information and discusses current plan in NRC 19 activities. On the back page of the newsletter is some 20 contact information for anyone who has questions of us or 21 wants to express a point of view. Weve included email 22 address and phone number for our Public Affairs Officers.
23 Also, reports of our NRC inspections and other 24 documents related to Davis-Besse are available on the NRCs 25 website. The specific web address is noted on the MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
5 1 newsletter.
2 We also have a public meeting feedback form 3 available, which we use to solicit comments on aspects of 4 the meeting that we can improve on.
5 Were having the meeting transcribed today by Marie 6 Fresch, to maintain a record of the meeting and the 7 transcription will be available on our web page in about 8 three to four weeks. And its important that anyone who 9 comes up, speaks loudly please, so the transcriber can get 10 the information in the transcription.
11 Next slide, please.
12 This slide covers recent NRC activities. The first 13 item there is on April 22nd, we issued a Directors 14 Decision on 10CFR2.206 Petition from Green Peace and 15 others. And this involved or the NRC was requested to take 16 enforcement action against FirstEnergy and to suspend their 17 operating license and prohibit plant restart.
18 We were requested to take enforcement action for the 19 plants failure to complete commitments in their, in a 20 response to our October 1996 5054F letter which requested 21 information on ability and the acceptability of design 22 basis information.
23 We concluded with that, that failure to meet 24 commitments in and of themselves do not result in 25 enforcement actions unless there is a failure to meet MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
6 1 regulatory requirements. In that case, then, we would 2 issue enforcement action; and we have done that in several 3 cases in the past.
4 This letter, by the way, is posted on the website as 5 well.
6 Also, the next bullet concerns April 30th Research 7 Memo updating the structural analysis of the reactor vessel 8 head at Davis-Besse. This was the result of some analyses 9 and experiments performed from our Nuclear Regulatory 10 Research Office in Headquarters, and that letter too is 11 posted on the website.
12 Key conclusion in that letter is that the NRC 13 analyses indicate that Davis-Besse would have operated 14 safely until its scheduled refueling outage in March, 2002, 15 with its old reactor vessel head, and could have 16 potentially operated for about a year beyond its shutdown 17 of February 16th of 2002.
18 The next bullet there describes or lists Public 19 Commission Meeting that was conducted on May 4th, where we 20 discussed results of the Agency Action Review Meeting.
21 Each calendar quarter, the inspectors and inspection staff 22 in the Region Office review the inspection reports and 23 performance indicators of all plants in the Region. And 24 each year at the end of the four quarters, we do a roll-up 25 assessment, and for plants that have had significant MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
7 1 performance issues, our NRC Senior Managers review the 2 results and discuss those results and we hold a public 3 meeting with the NRC Commissioners in our agenciess 4 headquarters in Rockville, Maryland.
5 The next item there, on May 5 we issued a routine 6 Resident Inspection Report 04-06 and I was going to let the 7 Resident Inspector discuss that report.
8 MR. RUTKOWSKI: Good 9 afternoon. That inspection report, among other things, 10 covered in detail the results of Augmented Inspection that 11 was conducted by the NRC.
12 On March 9th, the NRC began an Augmented Inspection 13 Program to review Licensee plant restart activities. The 14 coverage consisted of a minimum of two inspectors per 15 shift; typically one Senior Inspector and one Resident 16 Inspector; and, covered all three shifts. In total, we 17 used 30 different inspectors that were from all parts of 18 the agency.
19 The inspectors were charged with reviewing the major 20 plant evolutions from initial approach to criticality to 21 full power operation. These activities that were reviewed 22 included the initial approach to criticality, criticality 23 itself, physics testing of the reactor core, adjustments to 24 nuclear instrumentation, starting and stopping major 25 components including reactor coolant pumps and the main MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
8 1 feedwater pump, start-up and synchronization of the main 2 generator of the electrical area and main generator turbine 3 testing.
4 In addition to these observations, those inspectors, 5 including the Resident staff, performed other activities 6 associated with the Standard Reactor Oversight Procedures; 7 and these included inspections and samples in the areas of 8 fire protection, surveillance procedures, post-maintenance 9 tests, operator workarounds and emergent work activities.
10 All of the major inspection activities were 11 conducted in accordance with standard procedures, our 12 normal procedures. And, additionally, there was a special 13 inspection plan written to cover and guide the activities 14 associated with reviewing the start-up activities.
15 This plan was titled, Initial Criticality and Power 16 Ascension Team Inspection and was dated February 26th, 17 2004.
18 The overall goal of this inspection plan was to 19 verify that Davis-Besses Operations Department ability to 20 conduct a safe startup and power ascension to one hundred 21 percent power. The key focus areas of the inspection team 22 were control room activities, conduct of preevolution 23 briefs, shift turnovers, and general communications, 24 management decision-making, support department performance, 25 and plant equipment issues.
MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
9 1 Inspectors assessed the Licensees performance 2 through direct observations of activities, interactions 3 with the Licensees staff, review of documents, and 4 independent walkdowns of systems in the Turbine Building 5 and Aux. Building.
6 In the inspection report is documented one finding, 7 or violation of NRC requirements of minor significance; 8 and it involved the disassembly of the main feedwater 9 valve, and the Licensees planning and control of that 10 evolution.
11 The evolution raised the potential for ejection of 12 the stem from the valve and could have initiated a plant 13 transcient and also could have caused personal injury.
14 Of the other activities that were observed, there 15 were no findings of significance and no identified 16 violations of NRC requirements. Overall, as documented in 17 the inspection report, the team concluded that the Licensee 18 performance was adequate to support continued safe 19 operation of the unit.
20 More specific details are available in the 21 inspection report, which is available on the NRC Website.
22 MR. PASSEHL: Okay, the last 23 bullet there concerns Davis-Besse found that one of its 24 submittals from November 11, 1998, and this was a response 25 to Generic Letter 98-04, regarding coating deficiencies and MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
10 1 foreign material in containment. That response contained 2 material inaccuracies and omissions.
3 The NRC on May 7th issued to Davis-Besse a Severity 4 Level 3 Violation for that incomplete and inaccurate 5 information. Per our enforcement policy this is considered 6 escalated enforcement. Because the Licensee identified 7 the, this violation and comprehensively corrected the 8 violation, no civil penalty was issued.
9 Next slide, please.
10 What I want to do, Ill mention here, was that the 11 NRC has assigned inspectors to monitor four key areas.
12 These key areas as you see, Operations, Engineering, Safety 13 Culture and Corrective Actions, were areas that were 14 principle contributors to the long term shutdown of the 15 plant. The NRC has assigned Senior Inspectors to be 16 responsible to monitor performance, Davis-Besses 17 performance in this area and coordinate inspections.
18 One of the areas well be looking at is the 19 requirements in the Confirmatory Order, which requires the 20 Utility to contract with independent outside organizations 21 to conduct assessments in these areas. So, our inspector 22 leads will also be monitoring performance of these 23 assessments.
24 Thats all I have.
25 MR. BEZILLA: Okay. Thank you.
MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
11 1 Next slide, Kevin.
2 Our Desired Outcomes for today are to demonstrate 3 that Davis-Besse operations continue to be safe and 4 conservative; would like to provide you with an overview of 5 our performance since the last public meeting; and status 6 you on our improvement initiatives and Confirmatory Order 7 activities.
8 Next slide.
9 Barry will start things off with an overview of 10 plant performance. Then Clark, Barry and Jim will discuss 11 improvement initiatives performance utilizing information 12 from some of our performance indicators and discuss our 13 upcoming independent assessments. Ill then spend a few 14 minutes to provide information and insights from a number 15 of recent assessments. And, finally, Steve will provide 16 you with his oversight perspective.
17 And with that Ill turn it over to Barry.
18 MR. ALLEN: Thank you, Mark.
19 Next slide, please, Kevin.
20 As of this morning, plant status was one hundred 21 percent power, approximately 920 megawatts. With the heat 22 and humidity this afternoon and one circ water pump out of 23 service, which Ill talk a little bit later, were at 24 approximately 98 percent power currently, just maintaining 25 a proper margin of, commensurate throughout the weather MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
12 1 change. Also have 46 continuous days of service and the 2 station has 56 Human Performance success days.
3 Next slide.
4 In terms of recent plant performance, Ill provide 5 an overview of the highlights from the past month and there 6 will be some additional details on some of these to follow 7 through the remainder of the presentation.
8 One of the highlights for the station was that we 9 hosted the Company Nuclear Review Board at Davis-Besse.
10 This board is chaired by the Vice President of Oversight 11 with numerous external to FENOC board members. And this 12 board is there to provide a critical assessment of our 13 safety focus, our conservative decision-making, our 14 communications and alignment throughout the organization.
15 Mark will share some of the specific CNRB insights for the 16 station later in the presentation.
17 We also initiated our first monthly Safety Culture 18 Assessment at the station. That allows us to assess our 19 safety culture from an individual, plant management, and 20 also a corporate commitment perspective. As a result of 21 that assessment, assessed our safety culture as healthy 22 with improvement in some areas. And well cover some more 23 of the Safety Culture Assessment in greater detail later in 24 the presentation as well.
25 In the training arena, we performed an assessment of MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
13 1 our technical training programs using the format of a mock 2 INPO Accreditation Team; give us a good self-assessment of 3 our training program and validated our initiatives we had 4 laid out in the area of training.
5 Also, we initiated monthly performance reviews for 6 the station. This is where we assess our station 7 performance using our indicators which are tied to our 8 Business Plan, as well as our Operational Improvement 9 Plan.
10 Then, oversight of our Monthly Performance Review 11 Meetings is provided by the Executive Leadership Team and 12 we will provide more detail, as Mark said, on some of the 13 performance indicators throughout the presentation.
14 The photograph there on this slide is a picture of 15 our number 1 circulating water pump motor. This was taken 16 when we removed this motor from service to have it 17 overhauled, completely rewound. It would also be 18 representative of activities early this morning as we 19 received a completely refurbished motor; installed that, 20 set that this morning, and began alignment of circulating 21 water pump number 1. And we would anticipate return to 22 service of the number 1 circ water pump Saturday 23 afternoon.
24 Next slide.
25 Additional highlights from INPO, Institute of MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
14 1 Nuclear Power Operations. We recently completed a one-week 2 simulator evaluation of our operators performance and a 3 two-week station evaluation and assessment of our 4 performance. And Mark is going to spend some detailed time 5 talking about the preliminarily results which INPO 6 presented to the station at their debrief.
7 Also, the Maintenance Backlog Reduction Plan is an 8 initiative thats been approved for the station, and this 9 is a commitment in terms of multi-million dollar commitment 10 to work off our maintenance backlog. We have that targeted 11 not only through 2004, but also through calendar year 12 2005.
13 There is slightly less than 2400 work orders we have 14 targeted to work off through this initiative. And the 15 initiative is set up to allow us to screen, plan, schedule, 16 and execute these work orders to resolve approximately, 17 again, 2400 work orders in our backlog.
18 This will be similar to the engineering backlog 19 effort which Jim will discuss later when he talks about 20 some of the engineering initiatives that are going on.
21 MR. GROBE: Barry, what 22 impact is the maintenance backlog having on your 23 accomplishment of preventative maintenance?
24 MR. ALLEN: Jack, right now if 25 we look at our corrective maintenance backlog, our MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
15 1 corrective maintenance backlog is 74 for today. Our goal 2 for the year is 75, so our corrective maintenance backlog 3 is in very good shape.
4 So, a lot of this is really targeted at our elective 5 maintenance backlog, which is a larger population. So, the 6 interference between resources to work preventative 7 maintenance versus corrective maintenance is really not a 8 struggle for us right now.
9 Its just more working off our elective maintenance 10 backlog and then assuring that we get our preventative 11 maintenance tasks scheduled as the appropriate windows for 12 the equipment come up.
13 MR. BEZILLA: Jack, also, as we had 14 approached restart, there was some PMs that we had 15 deferred. And as restart got deferred, those got pushed.
16 So, we do have a, Ill say, a slight bow wave of PMs.
17 Were working that off. And I believe the team has that 18 laid out for, say, the next six weeks; and I believe after 19 that, well be in pretty good shape.
20 So, we have a pretty good handle on that. We did 21 have a couple PMs that went overdue. Thats not 22 forbidden -- I mean, thats not allowed, thats forbidden.
23 We had discussions at the Manager level and Senior 24 Leadership Team level and I believe we have that well in 25 hand now.
MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
16 1 MR. ALLEN: In fact, we are 2 zero overdue preventative maintenance tasks at this time.
3 So, any tasks Mark talked about, the delay in startup 4 having to move some preventative maintenance tasks because 5 the equipment was not in service and could not perform the 6 PMs on the equipment. And all those deferrals all get 7 reviewed by Engineering and Operations before those can be 8 retargeted.
9 MR. GROBE: So, what is the 10 preventative maintenance backlog right now, roughly?
11 MR. ALLEN: Jack, thats a 12 good question. I dont have an exact number for you. Ill 13 be glad to get that and provide it to you, but I do not 14 have an exact number of those.
15 I do know that for the next 6 to 7 weeks, we have 16 all the PMs that are due in that time laid out and 17 integrated into our work schedule.
18 MR. GROBE: The data I get is 19 somewhat dated, but I think there was several hundred 20 preventative maintenance that had been deferred. And 21 youve evaluated the integrated effect of that on equipment 22 reliability; not each one individually, but also looked at 23 the integrated effect?
24 MR. BEZILLA: Thats right. Jims 25 organization, as well as Operations, takes a look at those.
MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
17 1 And, in each of those deferral, Jack, looks individually, 2 but then the plant engineer, the system engineer would look 3 to make sure his system was okay, and there wasnt some, 4 Ill say, more aggregate impact or effect on those 5 preventative maintenance tasks.
6 MR. GROBE: What was your 7 expectation on missed preventative maintenance, Mark?
8 MR. BEZILLA: Well, we write 9 conditions reports. Jack, if there is something thats 10 missed, we write Condition Reports. And then, as I said, 11 we had a few that were overdue, where they had written 12 Condition Reports, and what Ive told the team is that you 13 either do the preventative maintenance; you have an 14 approved deferral; you get to the end date and you dont 15 have an approved deferral, you write a Condition Report and 16 you have an immediate determination and youre either okay, 17 or you take the equipment out of service or you dont rely 18 on the equipment.
19 MR. GROBE: Okay.
20 MR. BEZILLA: I believe thats 21 been pretty well communicated.
22 Jim?
23 MR. POWERS: Yes.
24 MR. BEZILLA: Barry, I believe 25 thats been pretty well communicated through the MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
18 1 organization.
2 MR. ALLEN: Thats correct.
3 MR. RUTKOWSKI: Barry, my 4 understanding, correct me if Im wrong, its not overdue 5 even though its been deferred, as long as its got a 6 deferral approved?
7 MR. ALLEN: What actually 8 happens, Jack, is if you have a due date for, for a task, 9 and if you evaluate moving that, you essentially generate a 10 new due date for that activity. So, you look at it, you 11 evaluate it from the aspects that we just talked about.
12 Then, you say, okay, were going to retarget a new date for 13 that, based on whatever is proper for the equipment, may 14 fall into the next equipment window when that train or 15 equipment is out of service for maintenance, and then well 16 try to evaluate to get them back into those windows when 17 theyre then in sync with our plan for taking equipment out 18 of service through our work management process.
19 MR. RUTKOWSKI: Do you have 20 multiple deferrals on the same piece of equipment before it 21 gets done for real?
22 MR. ALLEN: As long as you 23 have multiple evaluations, Jack, so you can not evaluate a 24 deferral and say I already evaluated that, I can move 25 further. You have to go back then through Operations and MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
19 1 System Engineering, because youve got the time interval 2 which would have changed and then you have again the 3 aggregate impact which may have changed, depending on the 4 time of year, system conditions, weather conditions; there 5 is a lot of things that you have to consider when you 6 evaluate those things. So, in theory, you could do that, 7 but youve got to go back through that entire process once 8 again.
9 MR. RUTKOWSKI: Thank you.
10 MR. GROBE: I was reviewing 11 some data on breakers and some of the, Im not sure Im 12 using the right word here, but the late PMs, were 13 preventative maintenance that you perform only once every 14 five or six years, which means you have an enormous grace 15 period, probably 7, 8, 9 months.
16 It wasnt possible for your organization to get that 17 work completed in that grace period and then they didnt 18 effectively evaluate the breaker reliability to properly 19 defer that maintenance? It just seemed like a significant 20 miss on that preventative maintenance.
21 MR. BEZILLA: Jack, I dont have 22 specifics.
23 Jim or Barry, do you have specifics on that?
24 MR. POWERS: No, I dont.
25 MR. ALLEN: Im not sure Im MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
20 1 familiar with the exact breakers that youre talking about, 2 Jack, but as far as the lag goes, if you have a target 3 date, again, just like you said, there is a due date for 4 the activity, and then there is a grace period before that 5 becomes overdue.
6 Now, a lot of those activities that were in post 7 restart, I mean a lot of resources dedicated to work in the 8 preventative maintenance tasks, but the delay in startup 9 did create some push of those tasks, which, you know, even 10 if we had four or five months, say, grace time, to use that 11 phrase, before it would become overdue, we may have eaten 12 up a fair amount of that just getting through restart 13 activities.
14 MR. GROBE: Okay. Just in 15 rough terms, when do you expect the Preventative 16 Maintenance Program to be back on a routine footing?
17 MR. ALLEN: Were in good 18 shape for the next 6 to 7 weeks. For the next 6 to 7 week 19 period after that, we still have some work to do. Jack, I 20 would expect in about 12 weeks, kind of give us that 21 opportunity to work through a couple of 6-week cycles 22 there, we should be in pretty good shape.
23 Another thing I believe will help us is our 24 Maintenance Backlog Reduction Plan, although its not 25 targeted at going out and working preventative maintenance, MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
21 1 it will augment shop and team resources such that I think 2 it will allow the crafts to do a good job then of focusing 3 on preventative maintenance tasks with probably fewer 4 distractions from emergent work and trying to focus on 5 knocking the overall backlog down. Thats going to allow 6 us to do a better job of focusing shop resources and not 7 having to be diverted.
8 MR. GROBE: Okay, thank you.
9 MR. BEZILLA: Let me add, I 10 didnt bring it with me. I brought a lot of stuff, but I 11 didnt bring with me. Jack, we had a Problem-Solving 12 Decision-Making Team that we put together; had Work 13 Management, had Maintenance, had Operations, had Plant 14 Engineering on there. Those guys got together, worked as a 15 team, came up with about a half dozen actions that they 16 felt were appropriate.
17 I took a look at those actions. They all looked to 18 be, Ill say, doable. And they were going to help our 19 situation from a preventative maintenance standpoint.
20 Those are being implemented now, and as Barry said, those 21 are over the next twelve-week cycle. And I think after 22 that, I think well be in pretty good stead.
23 I realize we have evaluated currently where we are 24 at and believe were okay now, but we want to get the back, 25 say, the bow wave done, get the backlog down, and now were MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
22 1 just into routine stuff.
2 MR. GROBE: Okay, thank you.
3 MR. ALLEN: Okay. Another 4 highlight for the station, an important item for us, talks 5 about the Teamwork, Ownership and Pride Team, the TOP 6 Team. This is a team that the station has initiated based 7 on employee desire and employee feedback. This provides us 8 another communications channel and forum to allow station 9 personnel to bring up issues to the senior management at 10 the station. Its a good opportunity for personnel to 11 voice concerns. Again, allow us to address little 12 precursor issues before they become significant issues for 13 people at the station.
14 One of the things that this TOP Team helps us do, 15 which I think is going to be extremely valuable, is go 16 pulse the organization after significant communications and 17 those kinds of things to ensure that messages are received 18 similar to the method we think were communicating, so to 19 help give us some validation there, if you will, be sure we 20 have good communications and alignment.
21 And the team is made up of volunteers at the grass 22 roots level throughout the organization. So, its a very 23 good team for us. Its a good enhancement for not only 24 alignment, but for communications.
25 Also, turbine valve testing. We recently completed MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
23 1 our first control valve and combined intercept valve 2 testing at power, for the first time since restart. And 3 all of our turbine valves behaved and responded as 4 expected.
5 Also, we recently provided the NRC notification that 6 the Ottawa County Sheriffs dispatcher did not initially 7 have the capability to activate the sirens. And we have 8 entered that in our Corrective Action process. We 9 understand the physics of what happened there in terms of 10 sirens being out of sync with the computer time, which is 11 part of the security process to ensure that sirens are 12 controlled by a time stamp, which is also part of the 13 signal to the sirens. We got that out of sync.
14 That was restored within a couple of hours. And we 15 understand technically what happened. Were still 16 performing investigation to determine whether that was 17 hardware, software or what exactly may have caused that; 18 however, we do pull the sirens daily; and theyre also 19 daily now ensuring all the computer systems which interface 20 with the siren system are in sync on a daily basis to be 21 sure we maintain that capability and we can understand 22 completely and exactly what happened during that instance.
23 MR. GROBE: Barry, I 24 appreciate that youre fairly new to the site, but do you 25 know if this has happened in the past?
MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
24 1 MR. ALLEN: Jack, this has not 2 happened here in the past.
3 MR. GROBE: Okay.
4 Have you evaluated what impact that will have on 5 your performance indicators for your emergency notification 6 system?
7 MR. ALLEN: No. Well take a 8 look at that emergency preparedness. Well take a look at 9 that and evaluate that from a performance indicator 10 perspective, but theres a, just by preliminary look, I 11 would suspect it would have an impact on that performance 12 indicator, Jack.
13 MR. GROBE: Okay.
14 MR. ALLEN: Also, in the area 15 of NRC initial license examinations, we had three reactor 16 operators and five senior reactor operators take their 17 initial license examinations recently. And we are 18 cautiously optimistic regarding their exam performance.
19 And were eggerly eagerly awaiting feedback from the NRC on their 20 performance. Meanwhile, they are all standing at power 21 watches working on their qualifications.
22 MR. MENDIOLA: Is this the class 23 that was delayed or postponed for a period of time?
24 MR. ALLEN: Yes, it is, Tony.
25 This was the class that was initiated at the start of the MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
25 1 13th refueling outage. And, then, due to outage 2 preoccupations and whatnot, this class wound up taking 3 awhile. But they have recently completed that, and taken 4 their initial license examinations.
5 MR. MENDIOLA: Thank you.
6 MR. GROBE: With these 7 licenses, will that give you sufficient margin to go beyond 8 the four-shift rotation?
9 MR. ALLEN: Jack, were 10 looking at taking these licensed individuals, once we 11 receive some feedback from the NRC and they complete their 12 at-power watches; and then were looking at setting up a 13 five-shift rotation.
14 MR. GROBE: Good.
15 MR. ALLEN: Next slide, 16 Kevin.
17 In conclusion, I would like to state that 18 Davis-Besses operations continue to be safe and 19 conservative.
20 With that, Ill turn the presentation over to Clark 21 Price.
22 MR. PRICE: Okay, thank you 23 Barry, and good afternoon.
24 We have three desired outcomes for this section of 25 todays presentation. First, we want to provide you with MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
26 1 an update on our continuing improvement initiatives. We 2 want to review our performance in a number of performance 3 attributes that we have developed to monitor the 4 effectiveness of our improvement initiatives. And, third, 5 we want to status you on the independent assessments that 6 we are organizing to meet the requirements of the 7 Confirmatory Order.
8 Next slide.
9 As we progress through restart and transition into 10 plant operations, we developed a number of improvement 11 actions that were either designed to continue through 12 restart or were intended to commence following restart of 13 the plant.
14 These actions were identified in the November 2003 15 Integrated Restart Report, and the February 2004 supplement 16 to that report, under Appendixes A and D.
17 The following represents a status of those actions, 18 which we are tracking, as commitments to ensure our 19 compliance with the March 8th letter from the Nuclear 20 Regulatory Commission approving restart of the plant.
21 Appendix A of the Integrated Restart Report 22 contained a total of 38 commitments; and to-date, we have 23 closed 19 of those commitments. Of those 19, two were 24 actually redundant, two actions that are contained in 25 Appendix B, and we have closed those two commitments out MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
27 1 and are tracking those underneath the Cycle 14 Operational 2 Improvement Plan.
3 We currently have 29 of the 94 Appendix D actions 4 completed underneath the Cycle 14 Operational Improvement 5 Plan; however, we still have 84 remaining commitments; and 6 out of those, 30 are currently scheduled for completion 7 during the second quarter of 2004. And we are making good 8 progress towards meeting their scheduled completion dates, 9 which we monitor on a monthly basis, as Barry discussed 10 earlier.
11 And, finally, weve developed six additional 12 commitments to track the actions to meet the requirements 13 of the Confirmatory Order.
14 Next slide.
15 MR. PASSEHL: I have a 16 question. How are you documenting completion of the 17 commitments? Do you have a package that we would be able 18 to audit when we come on site or how do you have that 19 arranged?
20 MR. PRICE: Yes, as part of 21 our commitment process, we have Regulatory Commitment 22 Tracking System, and in that there is a closure package 23 that is submitted by the owner of the commitment to 24 Regulatory Affairs and then reviewed by Regulatory Affairs 25 for completeness, and validated, and all the attached MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
28 1 documentation which supports. The commitment is attached 2 to that, so that would be available for inspection.
3 As a matter of fact, we did deliver some of those to 4 Scott Thomas a couple weeks ago for review in the 5 Operations area.
6 MR. PASSEHL: Thank you.
7 MR. PRICE: Okay, as discussed 8 in prior meetings, we have developed over 40 performance 9 attributes in our Cycle 14 Operational Improvement Plan to 10 provide us with a continuous assessment of the 11 effectiveness of the improvement actions. These attributes 12 are aligned to the four safety barriers of Individual, 13 Programs, Management and Oversight. And for each 14 attribute, we have aligned performance indicators or 15 assessments to monitor the performance in those areas.
16 On April 20th, as Barry mentioned earlier, we held 17 our first monthly Operational Improvement Plan Management 18 Review Meeting. This is a monthly meeting now that we will 19 have going forward. During this meeting, which actually 20 carried into a second day, we had a thorough discussion of 21 the improvement initiatives, the action plans, and the 22 performance indicators. And through this review came some 23 changes and enhancements that we have included in Revision 24 Four of the Operational Improvement Plan, which we 25 transmitted to the NRC on May 11th.
MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
29 1 We are currently updating the action plans and 2 performance indicators for April and have our next 3 Management Review Meeting this coming Tuesday. We continue 4 to refine some of the performance indicators to improve 5 their effectiveness.
6 We have chosen several performance attributes to 7 report on today and we have organized them for discussion 8 today under the four assessment areas identified in the 9 Confirmatory Order.
10 The first area is Operations, and Ill turn it over 11 to Barry Allen to discuss the selected attributes in that 12 area.
13 MR. GROBE: Barry, before you 14 go on. Mark, we just recently received, whats it called, 15 the Post Restart Commitments, March 2004 review. And, like 16 I said, we just recently received that. Does this form the 17 basis or part of the basis for these meetings that youre 18 having monthly?
19 MR. PRICE: That is actually 20 the agenda for the meetings. And we go through the 21 performance indicators. The first time through we went 22 through nearly all of them, especially the ones that were 23 near term coming due.
24 Going forward, well address them in a different 25 fashion, primarily looking for any that are needing help in MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
30 1 meeting their due dates.
2 MR. GROBE: So, you produce 3 this report in preparation for that meeting?
4 MR. PRICE: Yes, we do, and we 5 actually finalize it, I would say, in the meeting with that 6 management review and then we publish it.
7 MR. GROBE: Would it be 8 possible to get this on a bit more timely basis? If you 9 finalize it following this meeting, then maybe get the 10 April one, sometime in maybe the third week of May or 11 fourth week of May, instead of -- the date is a bit dated.
12 MR. PRICE: Our objective will 13 be to basically issue the final one within a week of the 14 actual meeting.
15 MR. GROBE: That would be 16 great, thank you.
17 MR. ALLEN: Okay, from an 18 Operations perspective, I would like to spend a little bit 19 of time talking about from a large operational perspective 20 at the station.
21 One positive trend at the station is our consecutive 22 Human Performance success days, which I mentioned earlier 23 currently stands at 56. One thing I would like to mention, 24 however, is that we do recognize we need sustained good 25 performance in order to increase our rolling twelve month MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
31 1 average. So, were looking at our window of success days.
2 Weve got a station clock reset due to human error. Were 3 doing very well right now. We need sustained performance 4 in that area.
5 Were also pursuing additional improvement 6 opportunities to reduce the number of challenges to 7 operators. Well briefly talk a little bit about it in the 8 area of Operations Workarounds. We currently have four 9 open Operator Workarounds. Two of the four are refuel 10 tasks, and the other two that are open are also added to 11 the list in April.
12 So, were having some turnover in this area, which 13 is good. From March to April our total remained at four, 14 however, we worked off two items and added two new items.
15 In the area of Control Room Deficiencies, we also 16 currently have four open, Control Room Deficiencies and 17 again similar to the discussion on Operator Workarounds, we 18 went from five to four between March and April. And that 19 was a reflection of we worked off three and then added two 20 new ones. So, getting good turnover there.
21 MR. GROBE: Barry, on the 22 Operator Workarounds -- in fact, Jan, can you hear okay?
23 Okay, good, thank you.
24 These ones that are refueled workarounds, these 25 require modification of equipment?
MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
32 1 MR. ALLEN: They require the, 2 these require modification or isolation of equipment which 3 is not attainable at power. So, one is on decay heat pump 4 suction, which we can not get to it and the other is like 5 main feed pump turning gear, which we actually dont need 6 that until we get in an outage, and thats on an outage 7 list there. Well take care of that during an outage just 8 to keep the main feed pump turbine on gear when its not in 9 service.
10 MR. GROBE: Do you have 11 maintenance planning in place if you have an unplanned 12 outage, to target critical work activities?
13 MR. ALLEN: Yes, Jack, we have 14 what we call like a forced outage list. So, we track those 15 and plan those and well put those on a list. And we 16 refresh that list periodically. Then we share that with 17 our duty team, which rotates around the clock. So, to keep 18 the organization refreshing in our mind what we have on 19 those lists of activities to consider, depending on if we 20 had a forced outage in what mode we would be in.
21 MR. GROBE: Okay. Thank you.
22 MR. ALLEN: Thank you.
23 Next slide, please.
24 Then well turn it over to Jim Powers and let Jim 25 discuss Engineering.
MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
33 1 MR. GROBE: Barry, before we 2 go on. Mark, I know there is a slide back here in your 3 presentation on the, the Company Nuclear Review Board.
4 Would it be better to wait until then, or would it be 5 better to ask each of these individuals as theyre talking 6 about their area to find out what insights the CNRB had in 7 the various areas?
8 MR. BEZILLA: Why dont you 9 wait, Jack. Let me go through my presentation and if you 10 have additional questions, we can answer those for you. We 11 brought the detail in case we get into the detail.
12 MR. GROBE: Great.
13 MR. BEZILLA: We tried to pick 14 the highlights and things we thought would be most 15 appropriate, but I think it would be better to wait, if 16 thats okay.
17 MR. GROBE: Okay, thank you.
18 MR. POWERS: Okay. Thank you, 19 Barry.
20 I would like to talk about the Engineering 21 performance attributes since the time of our last meeting.
22 First, I wanted to talk about in a positive area, is the 23 quality of engineering products. Our Engineering 24 Assessment Board continues to review engineering products 25 for quality.
MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
34 1 Some of the changes that weve made during the 2 course of the outage included more focus on the quality of 3 calculations, and developing specific attribute checklists 4 for the review of calculations and also procedurally 5 sending each calculation through our Engineering Assessment 6 Board so it got checked out. So, we have a consistent 7 review.
8 Were also looking at Corrective Action documents, 9 now our significant root cause and apparent cause 10 investigations in the Corrective Action Program, 11 modifications as they have been throughout the outage. And 12 were finding the quality is improving in the engineering 13 area.
14 Our current three month trend is at a score of .7.
15 And, what we did subsequent to restart, we raised the bar 16 on our scoring requirement for the engineers. This is a 17 score that the lower it is, the better. You could think of 18 it in terms of how many comments do you get on the 19 products, so they want a low score.
20 At restart we had an allowance of one was a green 21 indicator. Now its .5. And our current three month trend 22 is .7. So, were in the white performance. And our trend 23 is good in terms of our quality. Thats because were 24 getting feedback from the Engineering Assessment Board to 25 the engineers and the supervisors are providing the MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
35 1 coaching on the findings of the EAB on the engineers 2 products.
3 Another area --
4 MR. GROBE: Jim.
5 MR. POWERS: Yes?
6 MR. GROBE: Recently, I think 7 you had some turnover on the engineering board?
8 MR. POWERS: Yes, we did. One 9 of our members, our chairman left us to pursue other 10 requirements of his life, personal life, which is a loss 11 for us, but weve got budget authorization to bring another 12 individual from the outside and to continue that external 13 perspective. And we expect that new member to come on 14 board in the next several months once his current 15 assignment is completed. Hes currently working at another 16 nuclear facility.
17 But we also have maintained the continuity of the 18 other individuals on the board, both an employee, long-term 19 employee member of the board, as well as other contract 20 members.
21 MR. GROBE: Are you able at 22 this time to tell us who that new person is or is that 23 needed to be kept confidential at this point?
24 MR. POWERS: No, I dont think 25 it needs to be kept confidential. The members name is MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
36 1 Marty Farber. And hes, hes done quite a bit of work, 2 inspection work for your agency throughout the industry.
3 Did inspection work at the facility in the Corrective 4 Action Program area, as well as we did our Containment 5 Integrated Leak Rate Test; he was one of the primary 6 inspectors there.
7 Hes got good insights on areas of our weaknesses, 8 and so we think bringing him in well get an intrusive 9 external look at us. So, Im looking forward to it. I 10 think Marty is going to help us improve quality. And, it 11 will be good to get a fresh pair of eyes on the board. The 12 guys that carried us through the outage did well, I 13 believe, but change is also good, to get a good 14 perspective.
15 So, thats whats in store for the Engineering 16 Assessment Board and well be reporting on their progress.
17 MR. GROBE: Thank you.
18 MR. MENDIOLA: Before you go on, 19 Jim, you mentioned that the performance indicator you 20 looked at was a number of comments received. Was there any 21 other assessment performed on the relative importance of 22 those comments or significance of those comments?
23 MR. POWERS: Absolutely. Yes.
24 Perhaps I over simplified by number conceptually. Thats 25 why you like a low score. But the, the scoring also MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
37 1 relates to, is it something, is it a comment that needs to 2 be incorporated; is it discretionary to incorporate it; is 3 it an improvement or a must incorporate; or the document is 4 just plain wrong and you have to go back and fix it, which 5 is a score of four, for example; high score is bad. So, 6 there is a significance aspect thats built into that, 7 most definitely.
8 MR. MENDIOLA: What kind of trend 9 are you seeing there?
10 MR. POWERS: For example, the, 11 there was six documents in the last month that got two.
12 So, it means that the comment needs to be incorporated, but 13 its an improvement in the document. So, were not seeing 14 a lot of very high scores where its just a miss in terms 15 of the engineering quality.
16 MR. MENDIOLA: Okay. Thank you.
17 MR. POWERS: One of the other 18 areas is fuel reliability. And were entering our 47th day 19 of operation, and the fuel reliability looks very good.
20 The core designers, reactor engineers monitor the Reactor 21 Coolant System looking for any signs that the, that the 22 fuel might have any, any defects or, or small leaks. And 23 they see none. And thats very good for us.
24 You know, we did a lot of work during the outage.
25 We removed all of the fuel from the reactor vessel, took it MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
38 1 over to the spent fuel pool, inspected it. We also did 2 some improvements to it to structurally harden it, make it 3 more robust.
4 And we also then removed what we call the core 5 barrel from the core. So, we completely took out all the 6 internals in the core that support the fuel and then vacuum 7 cleaned the entire vessel down through the bottom of the 8 vessel to make sure there was no debris in there. Thats 9 rather unusual in the industry to go to that extent to 10 completely remove the internals from the reactor vessel and 11 clean it.
12 So, I think that that effort is now paying off some 13 dividends and were seeing good fuel reliability entering 14 into the cycle here, and thats something that we track at 15 the plant every day and well continue to. But things look 16 pretty good there so far.
17 Opportunities for improvement, we talked about the 18 backlog reduction effort in engineering similar to the 19 Maintenance Improvement Plan. We put together an 20 engineering work plan in December, and presented that to 21 our Restart Oversight Panel. And were carrying through 22 with that work plan now.
23 Weve laid out our work plan in system windows, as 24 we refer to them. We have a number of items to work on, 25 and we want to prioritize them in the right order, make MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
39 1 sure all the engineers are aligned to work on the most 2 safety significant things first.
3 So, weve laid out in a system order which systems 4 were going to work on. We put teams together, 10 to 12 5 engineers on a team. We started out with our Aux.
6 Feedwater System. We got into the 480 Volt Electrical 7 Distribution System. And now the Reactor Coolant System is 8 also ongoing this week and well be heading into our 9 Service Water System next week.
10 Those are some of the systems that weve talked 11 about over the course of the outage that we did latent 12 issue reviews on. Theyre safety significant, theyre risk 13 significant to the plant. Weve got an orderly review 14 process now thats bearing fruit. Were seeing a good 15 reduction in the number of items that engineering is 16 working on.
17 We entered the year with 7,600 items or activities 18 for engineering to work on and disposition. Everything 19 from drawing updates, procedure changes, to Condition 20 Report investigations and Corrective Actions that had been 21 categorized by our Restart Station Review Board as a 22 post-restart activity.
23 Started out with 7,600. We are down to about 6,300 24 since that time. And were on a work-off rate that should 25 follow our plan, and get us down to normal work levels MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
40 1 through the course of this operating cycle. So, thats 2 over two years, which was the duration of our plan.
3 And things are working out satisfactorily so far, 4 but its a challenge to maintain on track there and keep 5 that work productivity rate going. So far were looking 6 good.
7 One of the other items Ive got listed is the number 8 of Maintenance Rule A-1 Systems, which is currently 11.
9 The desire would be to reduce that. We would like to have 10 none. Each one of those systems has plans in place.
11 Theyre -- ten out of the eleven are in a monitoring mode; 12 what we refer to as monitoring. Changes have been made, 13 plans are in place for improvement, and now were tracking 14 and monitoring to be sure were effective.
15 One needs a change, its going to be presented to 16 the Plant Health Committee tomorrow. Thats a freeze 17 protection system. So, weve got plans. Those plans also 18 relate to our backlog reduction effort, because its all 19 engineering activities. And so, theyre linked together, 20 as we follow through with our backlog reduction effort that 21 will also reduce our number of Maintenance Rule A-1 22 Systems.
23 And one more important point here, following up from 24 Barrys discussion on the Maintenance Improvement Plan; our 25 two improvement plans are really linked in that the MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
41 1 engineers go through, they do assessments on improvement to 2 the plant and equipment, people and processes. Then, we 3 carry those through into Maintenance when its an equipment 4 change, upgrade on how we maintain the equipment. Then we 5 go into the Maintenance Improvement Plan area.
6 And how we do that linkage and prioritize is through 7 a Plant Health Committee thats in place. Its members 8 include, the Chairman is the Operations Manager, Kevin 9 Ostrowski; and our Plant Engineering Manager, Brian Boles, 10 is a major contributor; as well as the Design Engineering 11 Manager, John Grabner; our Work Control Manager, Bill 12 Mugge, also sit on it.
13 So, the issues are brought before that committee for 14 prioritization of backlog, and working it off in the proper 15 order, so we improve our system health in an ordinarily 16 fashion and in accordance with the risk ranking of the 17 systems.
18 Those are the few topics I wanted to touch on in 19 Engineering.
20 Any questions?
21 MR. GROBE: I have a question 22 regarding preventative maintenance.
23 MR. POWERS: Okay.
24 MR. GROBE: Currently, I think 25 you have five systems that your System Health or Plant MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
42 1 Health Committee has put in the red category; auxiliary 2 feedwater, 480 volt AC power, Reactor Coolant System, 3 freeze protection, and containment gas monitoring.
4 How does that red rating in System Health influence 5 your consideration of deferral of PMs?
6 MR. POWERS: Well, the, each PM 7 is evaluated, as Barry described, relative to its 8 contribution to the system health. They go through both 9 the Engineering, System Engineer and Operations. Some are 10 more important than others. For example, there may be 11 activities, such as changing the oil in a pump, and the 12 history on the oil change frequency may be every six 13 months, lets say, is that the oil test results show its 14 in pretty good condition. And the engineers would evaluate 15 and say, "How important is that that we do it at six 16 months? Can it be retargeted by some amount of time?" And 17 if the technical review says, yes, then it can be done.
18 But there are other cases where the engineers reject 19 them, and say, no, we can not defer it. Thats based on 20 their system knowledge, the contribution of the 21 preventative maintenance to the health of the system. And 22 theyre the ones that rate the system and its color. So, 23 theyre the closest to it in providing those, those 24 dispositions.
25 MR. GROBE: Okay.
MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
43 1 MR. ALLEN: Jack, Id like to 2 talk about the Corrective Action Program, from a Condition 3 Report self-identification rate. We continue to be pleased 4 with our self-identification rate and our employees 5 willingness to use our Corrective Action Program. Weve 6 maintained that rate up near --
7 (microphone adjustment) 8 MR. ALLEN: We remain pleased 9 with our Condition Report self-identification rate and our 10 employee willingness to use our Corrective Action Program.
11 We maintain a high rate and close to 90 percent 12 self-identification even with a great deal of external 13 assessment.
14 We also use less traditional forms, I talked about 15 earlier, such as Teamwork, Ownership and Pride and 4-C 16 Meetings, and Town Hall Meetings and other forms forums to 17 identify issues and encourage employees to self identify 18 issues.
19 Apparent Cause Evaluation Quality is something we 20 have spent a great deal of station effort on. We have 21 utilized a systematic approach to training, approach to 22 train our folks to perform apparent cause evaluations; and 23 were utilizing that same systematic approach to training 24 to train CR evaluators, and card CARB members to ensure we have 25 the proper rigor applied to the Condition Report process MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
44 1 and apparent cause evaluations. Weve got some very 2 positive feedback on the rigor that weve utilized on that 3 process when the INPO team was here.
4 So, the opportunity areas for improvement that were 5 focusing on; again, individual error rate, I talked about 6 the Human Performance earlier. Our individual error rate 7 continues to meet our targets. So, were in the green band 8 on that; however, we do recognize that focusing on 9 eliminating human errors does prevent events; and so, 10 therefore, that continues to be a focus area for the 11 station.
12 For the Corrective Action Program, again, thats a 13 very key program for the station. So, were focusing on 14 continual improvement there. Were driving management 15 ownership of issues. Were also focusing on our backlog 16 reduction and timeliness in the Corrective Action Program.
17 That thread ties back to not only Jims efforts in 18 engineering, but also through the maintenance efforts. And 19 the focus is to ensure we maintain the right safety focus 20 on Corrective Actions and then to resolve those issues 21 commensurate with their safety.
22 MR. GROBE: Barry, you made a 23 comment regarding INPO feedback that it was positive. Was 24 that feedback on the quality of the training youre 25 providing or the quality of the products the apparent cause MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
45 1 evaluators were producing.
2 MR. ALLEN: Jack, actually 3 both; the rigor and structure, and we got additional 4 insights from them. Mark may want to go into that a little 5 more. But what they said was; looking in the arena of 6 apparent cause evaluations, that our process and approach 7 to setting up the training and then running personnel from 8 a limited population basis through that training and then 9 seeing the change in the product that those people 10 provided; they saw that as a worthy recognition.
11 Preliminary is a beneficial primus, because they saw 12 it as something in terms of performance better than they 13 typically seen throughout the industry. So, we got some 14 very positive feedback on the rigor, the process we used, 15 and then the results as an output of that effort.
16 MR. GROBE: The data I have 17 goes through the end of March, but it shows that in January 18 and February, your evaluation of your performance in this 19 area was that you were red in colors, and then in March it 20 was green, which is a fairly significant improvement. Has 21 that been sustained through April?
22 MR. ALLEN: Which indicator 23 are you looking at?
24 MR. GROBE: That is the 25 apparent cause quality indicator.
MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
46 1 MR. ALLEN: Oh, yes, yes.
2 MR. GROBE: Thats good, thank 3 you.
4 MR. ALLEN: Any other 5 questions or comments on that?
6 MR. GROBE: Yes. Question 7 regarding the Corrective Action Program performance 8 indicator. Its kind of a roll up indicator which 9 considers quality, effectiveness, and timeliness. Its 10 kind of a complicated indicator to develop.
11 There is one aspect of the indicator that Im 12 curious about, because it seems to bounce around; that is 13 the effectiveness indicator. I think if I understand the 14 threshold for red in that area, its if you have one 15 significant root cause recurrence. And, then if the 16 following month you have no significant root cause 17 occurrence, then its green.
18 It seems to -- Im not sure that you actually are 19 red one month and green the next. Im just wondering what 20 your thoughts are on that indicator?
21 MR. ALLEN: It is somewhat of 22 an empirical indicator. It is only part of the overall, 23 its only one third of that, Jack. You have quality, you 24 have effectiveness, and you have timeliness. So, the way 25 the metrix was designed, youre either effective or youre MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
47 1 not for that month. So, if youre ineffective, that 2 portion may be red for that one third of the input to that 3 indicator. So, its to ensure that you have some, so the 4 overall roll up indicator has some sensitivity to that.
5 So, its sort of a bi-stable type input, thats correct.
6 MR. GROBE: It would generate 7 a Chicken Little when you have the one problem; and a 8 woo yippee, no problems when you don't. And it just seems to be 9 not terribly --
10 MR. ALLEN: It does one thing 11 for us, though, Jack. If we do have a repeat occurrence 12 for significant root cause type issue --
13 MR. GROBE: It brings 14 attention.
15 MR. ALLEN: -- it makes it 16 red; that makes it very visible. So, when we go through 17 our own assessments, and then we get like in the monthly 18 Performance Review Meetings when we present our monthly 19 data to the Executive Leadership Team, it ensures that that 20 portion of that indicator stands out. All right.
21 So, it has a lot of visibility; gets the proper 22 highlight, the proper focus. And I think that's probably 23 the real value of the indicator, probably more so than the 24 color. Just ensures that it's visible; we give it the 25 proper attention commensurate with its significance; and MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
48 1 then we have the proper discussions on what Corrective 2 Actions were taken relative to that outage.
3 MR. BEZILLA: Jack, we also from a 4 fleet perspective, we continue to try to improve these 5 indicators; and were trying to smooth some of these out so 6 we dont have that, but we havent figured that one out 7 yet. Okay?
8 MR. GROBE: Its a 9 challenge. You dont want to under-react, but you also 10 dont want to have the indicator give you false positives 11 or false indicators of improvement when you really havent 12 had time to do any improvement yet.
13 MR. ALLEN: Correct.
14 MR. GROBE: Okay.
15 MR. ALLEN: With that, Ill 16 turn it back to Clark.
17 MR. PRICE: Thanks, Barry.
18 Okay. The fourth area is Safety Culture. We have 19 identified some positive areas and also some opportunities 20 for improvement in Safety Culture.
21 Mark Bezilla will be discussing our recent Safety 22 Culture Assessment results in a few minutes, so I wont 23 discuss that one any further, but the first one I would 24 like to discuss is Employee Concerns Program.
25 This is an attribute that weve identified or MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
49 1 designed to identify employee satisfaction with the 2 Employee Concerns Program and we are continuing to get 3 positive feedback in the satisfaction in the program.
4 This measure -- this indicator is actually measured 5 through a feedback form for users of the program. And the 6 satisfaction rate has been a hundred percent for the last 7 two quarters. So, were very pleased with that.
8 The second attribute to discuss here is the NRC 9 Retaliation Allegation Ratio. This performance indicator 10 provides a measure of perceived retaliation against 11 Davis-Besse workers reported to us by the Nuclear 12 Regulatory Commission. Its one of the measures that we 13 use to actually look at the effectiveness of our Safety 14 Conscious Work Environment Review Team.
15 We began an improving trend in this area starting a 16 year ago. In the first quarter of 2004 results identified 17 zero retaliation allegations reported by the NRC in this 18 area. So, again, were seeing positive results and we want 19 to keep that at zero.
20 One of our performance indicators that identifies an 21 area for improvement is called the NRC Allegation Ratio.
22 This performance indicator tracks the overall number of 23 allegations compared to the industry average.
24 We had good performance in the fourth quarter of 25 2003 with only one reported allegation which was actually MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
50 1 below the industry average; however, in the first quarter 2 of 2004, we had eight reported allegations.
3 The good news behind this though is that we were 4 able to substantiate that seven of the eight allegations 5 were from noncompany sources. So, although, they were way 6 more than we want, they were not, they were from outside 7 the company.
8 So, in conclusion, based on looking at our Safety 9 Culture attributes and those performance indicators, we 10 believe we are showing a continued healthy and steadily 11 improving Safety Culture and Safety Conscious Work 12 Environment at Davis-Besse.
13 One thing I would like to mention right now at this 14 point too, that next week we will have a follow-up 15 assessment performed on the effectiveness of the Corrective 16 Actions taken from the, following the November 2003 Safety 17 Conscious Work Environment Survey.
18 We have identified that to Geoff Wright. He is 19 aware of that assessment thats going on. It will be the 20 same team that performed that assessment in December.
21 Okay.
22 MR. GROBE: Im full of 23 questions today.
24 MR. PRICE: Okay.
25 MR. GROBE: Just an MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
51 1 observation actually. Im glad to see that youre not 2 trending the number of cases that go to the Employee 3 Concerns Program as an indicator of something good or 4 something bad, because you had an Ombudsman Program that 5 was viewed as being effective because it wasnt being used, 6 because it wasnt generating cases, when in fact you had a 7 Safety Conscious Work Environment problem.
8 And, you do have an Employee Concerns Program, 9 Safety Conscious Work Environment Survey scheduled for 10 later this year. So, that would give you that indicator.
11 So, I just think thats a positive, but the way in which 12 youre looking at the effectiveness of the Employee 13 Concerns Program I think is good.
14 MR. PRICE: Okay, good. Thank 15 you.
16 Moving on to the last item I would like to discuss 17 today is our progress were making on meeting the 18 requirement of the Confirmatory Order required of 19 independent assessments.
20 MR. GROBE: Im sorry, I had 21 one more question.
22 MR. PRICE: Okay.
23 MR. GROBE: In the first 24 quarter of this year, there was change in the SCWERT. I 25 love that acronym; Safety Conscious Work Environment Review MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
52 1 Team Nonconcurrence Ratio; and its interesting from a 2 number of aspects. First off, the SCWERT had a lot more 3 work in the first quarter of this year, because its your 4 performance appraisal time frame; annual performance 5 appraisal time frame. But its also interesting that there 6 was a significant increase in the percentage of issues that 7 came before the Safety Conscious Work Environment Review 8 Team that were not accepted by them.
9 Do you have any insights as to whats going on 10 there?
11 MR. PRICE: Ill speak to 12 that, and Mark, if he wants to elaborate on it.
13 During the, as you identified, we took the 14 performance appraisals for the first, or for 2003 through 15 the Safety Conscious Work Environment Review Team, if they 16 were not meeting expectations. The Safety Conscious Work 17 Environment Review Team looked at those, and the purpose of 18 that was to ensure that those performance appraisals were 19 substantiated and could be supported by the supervisors who 20 were making those assessments.
21 Through that process, there were a number that 22 didnt meet the scrutiny of that review and were therefore 23 changed as a result of the review by the Safety Conscious 24 Work Environment Review Team.
25 So, I think it was a good effort and thats why we MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
53 1 did have a spike in the first quarter, both in quantity of 2 items going to the team and a higher than normal, I guess, 3 rejection rate.
4 MR. GROBE: Is it indicative 5 of the need for additional training?
6 MR. BEZILLA: Jack, I believe 7 that this was the first time we had taken the annual 8 assessments through the Safety Conscious Work Environment 9 Review Team. So, I would view it more as a baseline, okay, 10 and then adjustment in standards, so talk about training, 11 right. So, the people that brought, the supervisors that 12 brought those performance appraisals through; if they were 13 not successful they had immediately feedback on, hey, 14 heres why we dont believe you can substantiate that 15 rating that you provided to the individual. And, so, Ill 16 say there was immediate feedback.
17 And, well monitor that, because we do like a semi, 18 like a six month and then an annual, so I suspect well 19 have another opportunity here come probably in July, August 20 time frame, and then again next year, but I would say its 21 somewhat of a baseline, and well see how we do the next 22 time.
23 MR. GROBE: The one aspect of 24 this thats not reviewed through the PI, Performance 25 Indicator, is whether or not the Safety Conscious Work MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
54 1 Environment Review Team concluded that the performance 2 action that you were taking was influenced by Safety 3 Conscious Work Environment concerns.
4 I think what I heard you say, Clark, was the team 5 concluded that these werent well supported. Did they 6 conclude also in any of these that, in fact, they believed 7 that the performance rating was influenced by an individual 8 bringing forward safety concerns?
9 MR. PRICE: I dont have the 10 answer.
11 MR. ALLEN: Jack, I can try to 12 answer that. I sat in on at least some of the Safety 13 Conscious Work Environment Review Team discussions on that 14 panel.
15 I dont believe we saw any instances of that, but a 16 big part of the discussion in every case is, okay, what is 17 the influence on the entire organization or that group from 18 a Safety Conscious Work Environment perspective and what 19 would be the impact and influence there? Is that 20 consistent with the way we treated, looking at a similar 21 example in a sister organization.
22 So, the purpose of the SCWERT panel is really to 23 look at it from a Safety Conscious Work Environment review 24 perspective, but at the same time, it was to look at the, 25 heres the evidence presented. All right?
MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
55 1 So, whether it would substantiate it or not 2 substantiate it was not the focus of the Review Team. No, 3 the focus of the Review Team was to ensure we did maintain 4 a Safety Conscious Work Environment, but you do that 5 through looking at the evidence, and also examining the 6 situation to make sure its not being driven from a 7 retaliation perspective and you are in fact consistent with 8 the way other personnel are being rated by their 9 supervisors.
10 So, the support or not supported is a part of it, 11 but thats really not the focus of the Review Team, that 12 just happens to be part of the information that the 13 supervisor presents as theyre making their performance 14 case. Assuming it passes that hurdle, if it passes that 15 hurdle, then the Review Teams challenge is to ensure there 16 is nothing adverse from a Safety Conscious Work Environment 17 perspective.
18 If it doesnt clear the first hurdle, you just dont 19 get to the second part of that equation.
20 MR. GROBE: Okay. I think 21 were going to have to look at this a little more. Geoff 22 Wright, as Dave mentioned earlier, weve signed assigned very senior 23 inspectors to each of the four areas that were continuing 24 to monitor closely; Operations, Engineering, Safety Culture 25 and Corrective Actions. Geoff Wright is the Safety Culture lead and he MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
56 1 also led each of the inspections through the outage.
2 Ill be chatting with Geoff about this and I think 3 well look into the function of the Safety Conscious Work 4 Environment Review Team a little more closely. Okay.
5 Thanks.
6 MR. MENDIOLA: Im sorry, if I 7 could interject a stray thought here. Something, Barry, 8 you said a little bit ago, has got me thinking about the, 9 the way management currently communicates with the staff.
10 You mentioned of course that you recall that you have your 11 4-C Meetings, and your Town Hall Meetings and so forth.
12 MR. ALLEN: Yes.
13 MR. MENDIOLA: At the very onset 14 when the current management came in and began to imprint 15 its management style with the staff, you, one of the things 16 that you did and had a lot of success on, is start these 17 meetings up and begin this open communication between 18 yourself and the staff at the plant. And a lot of success 19 has come from that.
20 But what I thought I hear now is that a lot of that 21 meetings -- of those meetings seem to take, have a lot of 22 their time taken up with gathering information and data, 23 which goes into these performance indicators or supports 24 these performance attributes in one form or another, to 25 such a degree where they probably become rather routine and MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
57 1 dont really lend themselves to maybe the frank and open 2 communications that you had previously with your staff upon 3 the onset of the 4-C meetings and the Town Hall Meetings.
4 And Im just curious to know if, has there been, or 5 is there a slow creeping away from frank and open 6 communication with the staff, because of the other things 7 that youre collecting now to support the various documents 8 and programs that you have ongoing?
9 MR. ALLEN: Tony, I believe 10 what were really talking about is multiple channels of 11 communication in multiple forms, which I believe encourages 12 good discussion.
13 An example popped into my mind when you said things 14 becoming routine. We did, we probably done as many Safety 15 Culture self-assessments as probably anyone you could 16 find. When we did our first monthly one, for instance, 17 with the staff, that was like four, four to five hours of 18 just good open, frank discussion.
19 So, even looking at the next monthly one, were 20 looking at scheduling that perhaps earlier in the day, just 21 to ensure that we have plenty of time to do that. So, Im 22 not seeing any diminishment of good communications on 23 issues.
24 You know, I would just guess if you looked at that, 25 at the end of this presentation, you might think that might MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
58 1 have been like an hour discussion with the management team, 2 but its just not so. These things involve a lot of 3 discussion, good open, frank stuff.
4 Now, other forms, like 4-Cs Meetings, thats just 5 an example, an opportunity to get folks at the grass roots 6 level from all different parts of the site organization and 7 bring them all together to see what common issues are that 8 they want to roll up and get some feedback from the Vice 9 President or the Senior Leadership on.
10 The top meeting, again, its folks who really want 11 to champion ownership and pride at the station. So, 12 theyre looking at what they can do to help us change our 13 behaviors to be more successful and ensure that theyve got 14 a good link to the management team to understand where 15 were headed, so they can help us be successful.
16 So, there is just a lot of different avenues. I 17 think they all serve a function in terms of communication 18 and alignment, but a lot of different forms and sometimes 19 different personnel involved, but ultimately all reaching 20 towards the same aim of aligning us as a station and 21 ensuring we move forward.
22 MR. BEZILLA: Tony, to your comment, 23 4-Cs, as an example. This week, we have a 4-Cs Meeting, 24 we did a supervisor briefing and we did a Town Hall 25 Meeting. And, three out of four. So, that was this week, MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
59 1 okay.
2 So, from that aspect, those things were continuing 3 to do to make sure that we have those forums. I know what 4 it was -- union stewards. I met with all the union 5 stewards this week. Those are the type of things we do, so 6 they have multiple forums, and plus Im pretty much 7 available any time in case anybody has an issue.
8 So, were continuing those things that we had done, 9 and there is some more things that were adding.
10 MR. MENDIOLA: So, in your mind, 11 there are still frank and open communications, and these 12 are robust ways for the staff to communicate with 13 management?
14 MR. BEZILLA: Yesterday it was 15 pretty frank and open with the union stewards.
16 MR. MENDIOLA: Okay, thank you.
17 MR. ALLEN: Thank you.
18 MR. PRICE: Okay?
19 As I mentioned before, the next section is to 20 discuss the Confirmatory Order Independent Assessments.
21 This first slide addresses the four assessments and our 22 targeted months for the 2004 assessments for those.
23 The next slide talks specifically about our 24 Operations Performance Assessment. This is the first of 25 the four, first one that well be doing. This assessment MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
60 1 will occur the week of August 16th. We have completed the 2 assessment plan and should be transmitting that plan to the 3 NRC within the next couple of days, which is to meet the 90 4 day requirement of the Confirmatory Order.
5 The scope of the plan will include areas in the 6 Conduct of Operations, Shift Management Oversight, 7 Operations Behaviors, and Procedure Use to name a few.
8 The assessment will use both observations and interviews 9 and also reviews of various documents that will be provided 10 to the assessment team prior to the onsight assessment 11 week.
12 We expect the assessment to last one week with a 13 potential of a couple days in the following week for 14 development of a good draft report of the assessment prior 15 to the team leaving the site. With that report, with the 16 final report, we will also include action plans that were 17 required by the order, so we want to make sure that we have 18 all the issues identified prior to the team leaving the 19 site.
20 The assessment team we have selected will consist of 21 two consultants who are both past NRC license examiners, 22 and an Operations Manager from one of our sister B&W plants, 23 and Station Director from a New England plant. These 24 individuals with their qualifications will be included in 25 the assessment plan delivered to you in the next couple of MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
61 1 days.
2 Then, finally, well be submitting our assessment 3 report sometime around the 8th of October. I believe this 4 is a date that weve targeted for that report.
5 With this, we feel we have put together a good team 6 for this first inspection, and a good plan that will be 7 acceptable to the NRC and will meet the, our desired 8 objectives of having a high quality independent 9 assessment.
10 I would like to turn it back over to Mark.
11 MR. PASSEHL: Why dont we take 12 a five minute break before we continue.
13 (Off the record.)
14 MR. BEZILLA: Jack, I have a 15 number of assessments Im going through, and because this 16 is only a three-hour meeting, Ive picked out some of the 17 highlights, okay, because we just dont have enough time to 18 go through all the things. So, I try to put some balance 19 in there and Ill go through those.
20 Next slide.
21 The first item I would like to discuss was our Mock 22 Accrediting Item Assessment. This assessment was performed 23 the week of April 11th. The purpose was to determine the 24 status of our training following the extended shutdown.
25 The Assessment Team, which was made up of ten MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
62 1 industry peers and a number of our own folks from FENOC.
2 Just to let you know, these are the places we got the 3 industry peers: Firmi Fermi, Susquehanna, Indian Point Three, 4 River Bend, Wolf Creek, D.C. Cook, Byron, and Institute of 5 Nuclear Power Operations representatives.
6 The assessment team identified four strengths and 7 seven areas for improvement. The program areas reviewed 8 included Chemistry, Radiological Protection, Instructional 9 Skills, which is the instructors, Engineering Support, 10 Maintenance, both craft and supervision. So, that was the 11 population.
12 A couple of the noteworthy strengths. They said 13 training was effectively used to support emergent plant 14 needs and efforts to improve the site safety culture. And 15 they also said that trainees -- or trainers, excuse me, 16 trainers, filling the role of performance consultants are 17 instrumental in helping the line improve performance.
18 A few of the noteworthy areas for improvement; many 19 training functions were suspended during the extended 20 shutdown. As a result, key functions and process 21 effectiveness have declined. We know this and are working 22 to rejuvenate our training programs. As an example, weve 23 made sure there is appropriate resources committed to the 24 training function.
25 Another item that they noted, management MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
63 1 observations of training during the extended shutdown had 2 declined. We also knew that. We had intentionally shut 3 down, Ill say, most of the conventional training during 4 the extended shutdown. Now that were restarted, training 5 is being rejuvenated and our management observations of 6 training are a focus area for us. So well turn that 7 around.
8 MR. GROBE: Mark, do you have 9 an any performance indicators that track where you are in 10 training? Do you get any kind of reports on that?
11 MR. BEZILLA: Yes, Jack, we have 12 a quarterly picture of training thats in the performance 13 indicator mode, if you will, and those are by objective.
14 And, of course, we color everything. So, we color those, 15 and then we review those, actually review progress on a 16 monthly basis at our Site Training Advisory Council 17 Meeting, which is the top level training council meeting; 18 and then we assess those on a quarterly basis.
19 MR. GROBE: Thank you.
20 MR. BEZILLA: Youre welcome.
21 Let me go to the next slide, please.
22 The Company Nuclear Review Board reviews plant 23 activities relating to safe operation of the station. This 24 robust group, which as Barry said, is made up of, Ill say 25 a number of, Ill call them gray beards, but dont tell MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
64 1 them I called them that. Some have been Regional 2 Administrators, others have been Plant Managers or Vice 3 Presidents or Chief Operating Officers.
4 This robust group was on site the week of April 11 5 also. They provided critical independent safety focus 6 oversight. Few noteworthy item from their review or their 7 assessment. They said, Davis-Besse has numerous activities 8 to complete. Weve got our Cycle 14 Operational 9 Improvement Plan. Weve got our 2004 Business Plan 10 Initiatives. And we have the Confirmatory Order items.
11 The key point here is, they said, hey, you have all 12 this stuff. It cant diminish the focus on safe and 13 reliable operation. We know this. We have various 14 controls and tools in place to ensure our focus remains on 15 safe operation of station.
16 As an example, and Barry had mentioned this, we had 17 duty teams, director, managers, supervisors. We have daily 18 meetings, Turnover Meetings, 8:00 Manager Meeting. We also 19 have daily conference calls, 1500 hours62.5 days <br />8.929 weeks <br />2.055 months <br /> and 2100 hours87.5 days <br />12.5 weeks <br />2.877 months <br />, 20 such that we can, Ill say, stay aligned, make sure the 21 operators are receiving the support they need to ensure 22 safe plant operations.
23 Another item they had mentioned was they said that 24 Davis-Besse must align their resources to the work to 25 ensure safe operations. What we did in that regard was we MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
65 1 presented to the board our Engineering Backlog Reduction 2 Plans, which Jim spoke of, and our Maintenance Backlog 3 Reduction Plan, which I believe Barry spoke of.
4 They were supportive of these initiatives, realizing 5 that theyd keep an eye on things and that the proof is in 6 the results of our efforts.
7 Anything else on that, Jack?
8 MR. GROBE: No, thats fine.
9 MR. BEZILLA: Okay, next slide, 10 please.
11 The next assessments are related to the Institute of 12 Nuclear Power Operations activities at our site. The 13 first item was an auxiliary feedwater assist visit 14 conducted the week of March 29th. This assessment was 15 conducted by an INPO peer and an industry peer and a number 16 of FENOC personnel.
17 There were a few recommendations generated as a 18 result of this effort. A couple of the noteworthy items.
19 They said, hey, you need to assign and expedite the 20 development of a full time Aux. Feedwater System Engineer.
21 This action is currently in progress, and the selected 22 individual is in the process of qualifying as the Aux.
23 Feedwater System Engineer.
24 They also had noted, they said that we need to 25 evaluate and implement preventative maintenance activities MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
66 1 for electrical components in the Aux. Feedwater System.
2 During the extended shutdown, we had performed 3 extensive environmental qualification modifications and 4 upgrades. We now need to establish the appropriate 5 preventative maintenance tasks to ensure continued 6 reliability looking to the future. So, that was their 7 feedback.
8 The second INPO assessment was a full evaluation and 9 assessment. This evaluation and assessment started back in 10 the fourth quarter. They had some INPO and some peer 11 individuals working with INPO, watching Operations during 12 that time period.
13 It culminated in a two-week assessment running from 14 April 26th to May 7th. This assessment team which was 15 around 20 individuals was a robust body of industry and 16 INPO peers. I believe they were thorough and complete in 17 their review of our performance and our plans. And they 18 provided valuable dialogue and insights. Most important, 19 they validated that our Business Plan and our Cycle 14 20 Operational Improvement Plan are properly focused. So, it 21 was a good validation of the things we had and the actions 22 we have planned.
23 A few noteworthy items. First, Ill start with a 24 couple positives and potential strengths. Our Foreign 25 Material Exclusion Program has achieved a high level of MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
67 1 ownership at the maintenance worker level. We felt very 2 good about that. Ill say I think that shows the right 3 safety focus from our employees and the understanding of 4 how foreign material could affect the equipment and/or 5 affect safe operations.
6 Another item that they noted was, during the 7 extended shutdown, the Davis-Besse team addressed several 8 emerging industry technical issues by implementation of the 9 FLUS, undervessel humidity detection tool, and enhancing 10 the capability of the containment emergency sump. And, 11 again, this shows good safety focus by the Davis-Besse 12 team. So, those were a couple positives.
13 A few noteworthy areas for improvement. They said 14 we needed to improve our operational focus; continue to 15 work off backlogs and focus on human performance. I think 16 youve heard Barry talk about both of those.
17 This area, operational focus, is and will continue 18 to be a high priority for the site. This includes our 19 daily efforts to ensure each and every task is completed in 20 a safe and eventless manner and our focus on the Corrective 21 Action Program and its health and our maintenance backlogs 22 and to working those down.
23 Another item they pointed out, is they said, the 24 team is not fully engaged and effective in implementing the 25 work management process. This also is another high MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
68 1 priority, a focus for us. We just recently implemented the 2 online work management process in the December time frame.
3 And we really only had probably the last four to three 4 weeks where weve gotten through the startup and Ill say 5 the emergent issues that you would anticipate or expect 6 from an extended shutdown.
7 Well stay engaged in the work management process, 8 and well be monitoring and adjusting our behaviors as 9 needed to ensure that we continue to improve in the 10 execution of our work management process.
11 Thats all I was going to talk about there, Jack.
12 Anything else there?
13 MR. GROBE: Just -- no, Im 14 sorry, go ahead.
15 MR. BEZILLA: Okay. Next 16 slide.
17 This slide just depicts some additional assessments 18 that we performed in 2004. At previous meetings we talked 19 about a few of these. There are two that I would like to 20 briefly mention.
21 First, is the Shift Manager Peer Verifiers. This 22 group of individuals, which at various times consisted of 23 external to FENOC Senior Reactor Operators from other 24 sites, FENOC other than Davis-Besse Senior Reactor 25 Operators, and Davis-Besse Ex-Senior Reactor Operators, has MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
69 1 helped improve the ownership and accountability of the 2 current Senior Reactor Operators and Reactor Operators.
3 These individuals, the Shift Manager Peer Verifiers, 4 provided continuous coverage, 24 hours1 days <br />0.143 weeks <br />0.0329 months <br /> a day, 7 days a 5 week, since the third quarter of 2003. Based on current 6 crew performance and feedback from the Shift Manager Peer 7 Verifiers, were phasing out this effort.
8 They served a useful function. They helped us get 9 our current Senior Reactor Operators and Reactor Operators 10 to a level where Lew, Barry, Kevin Ostrowski, our Ops 11 Manager, and myself are confident in their, that is the 12 current Senior Reactor Operators and Reactor Operators, 13 were confident in their abilities to rigorously and 14 completely execute their duties.
15 Second, I would like to talk about briefly our 16 Management Observation Program. This program is helping us 17 correct behaviors on a day-by-day basis because it puts 18 supervision, management in the field, watching activities 19 and providing either a positive reenforcement or corrective 20 reinforcement, if we see a behavior thats not as we 21 desire. It also provides us with insights into where we 22 may need to apply additional management attention.
23 And I just wanted to point this out, because I view 24 this as a continuous use tool that will help us over time 25 to improve our overall performance.
MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
70 1 Any questions on that stuff?
2 MR. GROBE: No questions.
3 Im very glad to see that you have an aggressive 4 self-assessment program. I think your indicators have in 5 the past not been so good in this area because you werent 6 as confident that you had a good program in place that was 7 going to be lasting.
8 I want to make sure that the purpose of the 9 independent assessments that were part of the order is well 10 understood. Thats not expected to replace any 11 self-assessment; thats expected to validate the efficacy 12 of your self-assessments.
13 So, thats why I asked the question earlier, 14 privately, about the Safety Culture Assessment, whether 15 that was going to be performed in 04. I wanted to make 16 sure you werent thinking that the independent assessment 17 would be replacing any internal self-assessment; those are 18 supposed to be validations of your internal assessment.
19 That, in fact, were getting good insight from your 20 self-assessment; youre getting good insight from your 21 self-assessment.
22 MR. BEZILLA: Were not quite there 23 yet, Jack, but were trying to align our self-assessments 24 prior to the independent assessments, and then we thought 25 that would be a good chance for us to check to see if we MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
71 1 have alignment; and if were seeing and finding the same 2 issues that the independent teams will find.
3 And, as I say, were in the process of trying to 4 align ourselves to be able to take advantage of those 5 independent assessments.
6 MR. GROBE: Okay.
7 MR. BEZILLA: Okay. Next 8 slide.
9 During the week ending May the 9th, there was a typo 10 on this. Ill say during the week ending on May the 9th, 11 we hosted a Fire Protection Program Pilot Assessment. This 12 was a Nuclear Energy Institute, NEI sponsored assessment 13 using draft NEI guidance, NEI 04-06.
14 That provides guidance on how Licensees can conduct 15 self-assessments in preparing for the resumption of NRC 16 inspection activities for associated electrical circuits, 17 using risk informed criteria from Regulatory Issue Summary 18 2004-03.
19 This self-assessment was hosted by Davis-Besse. And 20 it was supported by eight industry safe shutdown and PRA 21 experts. And, again, we had some other companies 22 represented. We had Excelon, Duke, PSEG, TVA, and then 23 ourselves and NEI. Additionally, there were two NRC staff 24 members that observed this assessment.
25 The goals of this assessment were to determine the MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
72 1 extent to which the Davis-Besse circuit analysis addressed 2 the new risk informed inspection criteria, and any 3 improvements needed in NEI 04-06 as a plant self-assessment 4 tool.
5 The conclusions were that from an industry 6 standpoint, this self-assessment was very useful. It 7 substantiated the methodology in NEI 04-06. Identified 8 improvements to the process and identified areas for 9 discussion and resolution.
10 I believe improvements will be incorporated after 11 additional dialogue occurs between the NRC and the NEI.
12 MR. GROBE: Were there any 13 particularly noteworthy technical issues identified at 14 Davis-Besse during this assessment?
15 MR. BEZILLA: Jack, we looked at 16 a number of circuit or a number of areas for these circuit 17 faults. There were a couple areas that we needed to do 18 additional follow-up on. Weve entered those into our 19 Corrective Action Program and well pursue those in 20 accordance with our process.
21 But there was nothing, nothing that was like an 22 immediate impact plant operation or operability of 23 equipment or anything like that.
24 MR. GROBE: Okay, thank you.
25 MR. BEZILLA: Next slide, MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
73 1 please.
2 This is the last assessment that Im going to talk 3 about, and its our first monthly Safety Culture Monitoring 4 Assessment, and Barry had mentioned that earlier.
5 Taking a minute to look at the slide. The colors or 6 as we portrayed the attributes and commitment areas in 7 November of 2003, all right, it will take a full assessment 8 to be able to change colors.
9 This first monthly assessment we said, have we 10 maintained, have we declined, or have we improved. So, we 11 showed that with an arrow concept. As you can see, we 12 believe that we have seen sustained or improving 13 perceptions in performance in regard to all the attributes 14 and commitment areas.
15 Well continue to assess our Safety Culture. And 16 then in November of this year, well be doing another full 17 assessment.
18 MR. MENDIOLA: Just real quick, 19 Mark. You said this is a monthly assessment, so it 20 considers the month of April?
21 MR. BEZILLA: This was for, 22 well, we do it on a monthly basis, but its hard not to do 23 it and take into consideration up until the day you do it.
24 Okay?
25 MR. MENDIOLA: I understand.
MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
74 1 MR. BEZILLA: From a fleet 2 perspective, we set it up quarterly. We are going to 3 attempt to do it on a monthly basis, but I think whats 4 going to happen, its going to be similar to the one 5 performance indicator Jack talked about, where it could be 6 going like this or like this, based on what may be 7 occurring at the site.
8 And, we had done the November assessment. And then 9 when we got restarted, we did the first monthly, using this 10 short version, if you will. We felt pretty good, because 11 we had like a quarter plus in there. Were going to do it 12 I think this next week.
13 MR. PRICE: Tuesday.
14 MR. BEZILLA: Im not sure how 15 thats going to work. Well see how that goes and may have 16 additional dialogue with you on that.
17 MR. MENDIOLA: These arrows are 18 measurements or comparison to what, last month or last 19 quarter?
20 MR. BEZILLA: In this case, it 21 was looking from the November assessment through --
22 MR. MENDIOLA: Today?
23 MR. BEZILLA: Through when we 24 did it, which was, Ill give you the exact date, through 25 April 20th. Okay? And, so, thats a reflection of how we MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
75 1 had perceived things from November through mid April.
2 Okay?
3 MR. MENDIOLA: Thank you.
4 MR. BEZILLA: Youre welcome.
5 Okay. With that, that concludes my presentation, 6 and I would like to turn it over to Steve Loehlein.
7 MR. LOEHLEIN: Thank you, Mark.
8 Jack, I think your folks are well aware of our 9 Continuous Assessment Process, but Ill just review 10 briefly.
11 That we report out to the organization on a 12 quarterly basis. That allows us to provide ratings on a 13 quarterly basis. Take a snapshot, report out on the 14 organization how theyre doing in a number of areas. And 15 then it allows us to adjust our focus for upcoming 16 quarters.
17 So, what I thought I would do today is give you sort 18 of the highlights from our most recent quarterly report, 19 and go into how thats adjusting what were looking at here 20 in the near future.
21 Next slide, please.
22 For the quarter, we looked at a total of 16, what we 23 call, primarily elements and the scores in those areas. We 24 had one good area. Good is like green. You can think of 25 it that way. Eight were rated as satisfactory; seven MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
76 1 marginal; and for the quarter, there were no unacceptable 2 ratings.
3 Some of the key areas of improving trends, positive 4 trends that weve seen are listed on this first slide.
5 Particularly of note, improvements in the Operations 6 support area. This is an area weve been watching closely, 7 because in the past, the organization at times was slow to 8 respond to an emergent issue. So, weve been watching for 9 the Problem-Solving Decision-Making Teams; how they form 10 up, how quickly the organization responds to an emergent 11 issue. There has been good team response in this last 12 quarter in that area.
13 The sensitivity to Reactor Coolant System leakage.
14 This was a case where the unidentified leakage now in the 15 plant is very, very low. Most of the time measures zero 16 and bounces around zero.
17 So, recently the plant measured a very slight leak 18 rate, .05 gallons per minute is what was starting to 19 appear. Operations responded to that and led a team to 20 look for where this leakage might be coming from; found it 21 was coming from the sampling system and was able to isolate 22 it. And, as a result, plant identified leakage is again 23 zero. So, we thought that was a kind of team response we 24 wanted to see.
25 Youve heard already from Mark and others about MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
77 1 improvements in their planning in the training area, and 2 Condition Reports.
3 Next slide, please.
4 MR. GROBE: Steve, before you 5 go on, I just wanted to comment. Your observations of the 6 Operations organization response to Reactor Coolant System 7 leakage is extraordinary. And its just a reflection of 8 how painful the lesson was.
9 The challenge is to learn the same level of 10 sensitivity from all other Operating experience inputs, 11 and not to forget those.
12 I recently had a conversation with a, a wise, sage, 13 nuclear professional, who shared that we have over a 14 thousand operating years of experience now. And probably 15 everything thats going to happen has already happened.
16 The challenge is to make sure that we learn from 17 each one of those. They havent resulted in accidents 18 because of the redundancy and diversity and operator 19 performance and things of that nature. But probably 20 everything thats going to happen has already happened.
21 So, its just absolutely critical that both in your 22 organization as well as the Nuclear Regulatory Commission, 23 that we continuously reflect on the operating experience 24 and make sure those lessons have been learned in a lasting 25 way, as Im sure that youve learned the Reactor Coolant MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
78 1 System leakage lessons.
2 MR. LOEHLEIN: Thanks, Jack.
3 Thats actually going to be a lead-in into something Im 4 going to be talking about in a few minutes here.
5 Next slide.
6 These are the areas from the core that were a 7 continued area of focus for us. One is in the area of 8 procedure use, adherence, and content. We examined for the 9 quarter the trend data in NQA had been picking up, and 10 concluded that there was a continued adverse trend in this 11 area.
12 What we identified to the organization was that in 13 use, or in-hand procedure use, by and large is pretty 14 good. We only see an occasional misstep there, but the 15 more global, the broader administrative procedure are the 16 ones that the organization still continues to have some 17 problems in application rigor. So, we identified that on a 18 higher level Condition Report, and Barry Allen is the 19 sponsor to follow-up on that. So, thats something just 20 recently identified to them.
21 Weve been continuing to follow engineering rigor.
22 And as you know, Jack, that is an item in the Operational 23 Improvement Plan that well be doing throughout the cycle.
24 And, this particular quarter, we identified an engineering 25 rigor issue in reactor engineering. Heres a case where MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
79 1 the organization is well experienced, well seasoned, and 2 some of their processes are overly reliant in our 3 assessment on that experience and those peoples ability to 4 do their job and the processes themselves need improved 5 rigor built into them.
6 These have to do with the calculation review and 7 approval process with how they absorb external work, like 8 from the contractor who provides various analyses to them; 9 how they do the owner acceptance process. Its those type 10 of things that we identified needed improvements in.
11 On the trending area, the performance improvement 12 group is getting better and better at producing quality 13 reports for the line organization to use. They do a good 14 binning of what are the cause codes and so forth for the 15 different departments, but we are still focused on having 16 the departments themselves taking that binning data and 17 further mine it and refine the trend analysis to look for 18 where in their particular areas are their greatest 19 potential areas of vulnerability and therefore areas of 20 improvement.
21 So, thats an area of continued focus for us, we are 22 following, that they improve on.
23 MR. GROBE: Mark, I have a 24 question in this area. Trending analysis is very difficult 25 to do; and, because its very difficult to properly MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
80 1 interpret from a statistical basis what issues mean, but 2 its also a very powerful tool.
3 Is the department level concerned that the trending 4 data isnt useful the way its presented, or they dont see 5 significant value from doing further evaluation or just not 6 a matter of having time to focus in the area?
7 MR. BEZILLA: Jack, there is probably 8 a little of all of that in there, but as Steve said, the 9 product from our Performance Improvement Group is getting 10 pretty good, right from a binning, sorting, getting the 11 piles correct. All right.
12 The next focus for us now is on the managers of the 13 various departments, taking that information and saying 14 okay, take a deeper look, and whats it really telling me.
15 Numbers will tell you some things, but then youve got to 16 go look and, Ill say, slice and dice it a little deeper, 17 and thats where our focus is now, getting the managers to 18 assess that data.
19 I think there was hesitancy earlier because the 20 product wasnt that good. And now that the product has 21 gotten better, I believe theyll grab a hold of that and 22 see what else they can glean from that information.
23 MR. GROBE: The best trending 24 analysis doesnt come from this organization. I remember, 25 Jim, I cant remember the individuals name, but it was the MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
81 1 Engineering Administrative Support Unit, where he was just 2 seeing, or she, I dont recall, was just seeing too many 3 administrative problems with engineering packages and said, 4 thats enough, lets do a significant condition adverse to 5 quality review or whatever it is, whatever you call it.
6 MR. POWERS: Collective 7 significance.
8 MR. GROBE: Collective 9 significance review. Thats the focus. Im wondering if 10 there is a lack of that kind of focus at the supervisor and 11 manager level or across the board? Is that something that 12 needs to be tuned up, as they would say on Hill Street 13 Blues?
14 MR. BEZILLA: Yes.
15 MR. GROBE: Okay.
16 MR. PASSEHL: I have a 17 question. Steve, in the areas of elements that you found 18 marginal, I assume some of these, you mention, in 19 continuing focus areas?
20 MR. LOEHLEIN: Right.
21 MR. PASSEHL: How do you plan on 22 following up in the future with assessing, you know, what 23 improvements the line has made?
24 MR. LOEHLEIN: What we do, some 25 of the things are cross-functional, like Corrective Action MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
82 1 Program, which means all the functional areas use it all 2 the time. So, we get assessment data on it every quarter 3 and its good data we can compare.
4 The engineering rigor is a similar one. There is 5 things going on every quarter that allows us to keep tabs 6 on it. So, typically, thats not a problem.
7 Now, if we have an area like, thats more defined, 8 and their effort may be more periodic, then what well do 9 is occasionally go in and look at whats being done in 10 response to the Condition Reports that were written on it.
11 Well follow it that way. Then, when it comes 12 implementation time for those changes, say its something 13 that may only appear next outage; well, then, at the outage 14 period is when we would take a look at and see if it was 15 effective in response to the issue we identified.
16 So, it kind of depends. Some things lend themselves 17 to nearly immediate continued assessment; others we have to 18 wait for the opportunity to see if the response was 19 effective.
20 MR. PASSEHL: Thank you.
21 MR. BEZILLA: Steve, before you 22 continue, Jack -- or Clark triggered another thought for 23 me.
24 From an assessment standpoint, we put into place 25 from a FENOC perspective a collective assessment to be done MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
83 1 on a semi-annual basis. The first one of those is due this 2 month; and thats where the departments pull in all the 3 stuff and sort it and bin it and slice it and say, "Okay, 4 whats this telling me? Is there something Im not focused 5 on that I need to be focused on?"
6 So, that will be another opportunity for us to 7 practice and use those skills and see if there is something 8 else out there, but thats a new tool and our first 9 opportunity will be this month to use that.
10 MR. GROBE: I was just going 11 to say that highly experienced and seasoned Dave Passehl is 12 our lead in the Corrective Action area, and he may want to 13 be out at that meeting. So, make sure he knows when thats 14 going to happen.
15 MR. PRICE: Okay.
16 MR. LOEHLEIN: Next slide, 17 please.
18 Now, kind of the springboard then from this last 19 quarterly report, this is part of the adjustment on what 20 now is in the near term that were going to focus on.
21 The first bullet in Management/Human Performance 22 speaks to most of the interaction that I had with the 23 Senior Leadership Team. And, really, the two main areas 24 that Ive been discussing with them lately is two 25 concepts. One, Jack, you touched on just a few minutes ago MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
84 1 when you talked about the Reactor Coolant System leakage 2 and the sensitivity there.
3 What Ive been talking to them about is what we can 4 do to better have our organization learn how to recognize 5 issues at the precursor level. And thats where trending 6 comes in and some of these other concepts are. If you can 7 mine the data and find things absent an event, youre way 8 better off.
9 And OE falls, operating experience falls into that 10 same kind of lesson you learn from somebody else, event or 11 higher level issue that occurred; you examine yourself and 12 take care of it before it ever effects affects you.
13 So, its something that were developing with the 14 SLT (Senior Leadership Team) or I am in terms of discussion, like, what do we do at 15 8:00 daily meetings to encourage this type of discussion 16 among the management teams so were mining these issues and 17 ensuring that we get every opportunity to address things at 18 a precursor level.
19 So, thats one main topic in terms of 20 Management/Human Performance that weve been spending time 21 on.
22 The other is this concept that Ive got on the sub 23 bullet up there, in terms of behaviors and wanting to have 24 plant folks continue to improve day after day, month after 25 month and year after year in terms of performance, all MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
85 1 based on a system of what is the perception of what is 2 viewed as proper behaviors and proper performance, and 3 where is the reward system or recognition system for that 4 and how does management recognize that.
5 And then on the other side is, what if the opposite 6 occurs? What if performance is not proper and the outcomes 7 are not appropriate? Then what is the perception of how 8 management deals with those, because they influence long 9 term behavior. And thats another main topical area that 10 were discussing now on how to do that; be consistent as a 11 management team in conveying how the Senior Leadership Team 12 conveys those messages to the rest of the organization, so 13 that alignment on what good is and how its achieved is 14 built on for the future.
15 Theyre kind of higher level concepts, but theyre 16 the kinds of things, as things come up, the Senior 17 Leadership Team has to ask itself, are we supporting the 18 right and the positive behaviors in the way we respond to 19 those, or could we give the office a perception.
20 So, its a little high level, but its the kind of 21 thing I think in the long term well see that the company 22 can achieve its vision for operational excellence over the 23 long haul.
24 The other couple of focus areas for us, particularly 25 for my assessors are being, were going to be following a MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
86 1 lot of activities in terms of training improvements that 2 Mark and others mentioned earlier, because that is key to 3 the long term success of the station.
4 And in the Work Management area; up until recently 5 here, the plant was trying to restart in a normal 6 twelve-week scheduling process. It doesnt lend itself 7 well to that sort of thing. Now that the plant is running, 8 this schedule fidelity and the need to try to do that, to 9 work with that, that becomes important from a safety 10 perspective, because if you cant plan work and get it done 11 as expect, you can end up having safety systems out longer 12 than they should be; or if you get into trouble with your 13 PMs, you can end up having reliability issues.
14 So, thats why we consider this Work Management item 15 an area of focus for the near term, because its an area of 16 performance improvement will benefit plant safety and 17 reliability.
18 I guess I might touch for a minute just on the 19 preventative maintenance things, since there was a 20 discussion on it earlier.
21 Some of the problems that were encountered recently 22 with preventative maintenance tasks going overdue had to do 23 with the fact that late in the work period that became 24 resource issues or other impediments to getting the 25 preventative maintenance task done; and, therefore, it went MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
87 1 overdue. And it went overdue in such a way that it 2 happened so late term that the organization really didnt 3 know where it was on the component.
4 Thats now been corrected, but thats the kind of 5 thing you avoid entirely if youre working your plan more 6 rigorously and more successfully. So, its an area well 7 continue to monitor now that the plant is working that 8 process on a regular basis.
9 MR. GROBE: I dont want to 10 disappoint you and not have a question or two.
11 MR. LOEHLEIN: Okay.
12 MR. GROBE: The first 13 question, Im not sure has an answer. But it has to do 14 with your sub bullet, "Rewarding positive performance 15 behaviors and consequences for negative performance 16 behaviors."
17 Another issue, and this is something that the SCWERT 18 (Safety Conscious Work Environment Review Team) needs to think about also, 19 and that is how to deal with self-reporting of negative performance problems. And 20 thats when an individual brings forward that they made a 21 mistake. And thats a very difficult issue to deal with.
22 It probably warrants, if youre going to be thinking about 23 those two, that third one probably warrants some thought.
24 The other question, Steve, I think has an answer.
25 One of the issues that was a contributor to long term MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
88 1 shutdown was the lack of meaningful insights from 2 independent assessment, whether its the Off-Site Review 3 Committee, (Company Nuclear Review Board), or Quality 4 Assurance. And one of the Corrective Actions for that was 5 to completely, to put in organizational barriers between 6 the quality organization and site management.
7 This is all one cohesive set of slides, but I was 8 just curious what management, site management review of 9 your slides occurred?
10 MR. LOEHLEIN: Oh, you mean in 11 preparation for the meeting?
12 MR. GROBE: Yes.
13 MR. LOEHLEIN: I would say, its 14 interesting, we do dry runs that include the slides Im 15 going to present. There is very little that gets adjusted 16 in my slides; occasional grammatical error and that sort of 17 thing, but we are truly independent of on what were able to 18 put in these presentations.
19 MR. GROBE: I was fairly 20 confident that was the answer, but I just wanted to make 21 sure. I mean, youre sitting there among the boys, and 22 slides are numbered sequentially and I just wanted to make 23 sure that was the case.
24 MR. LOEHLEIN: As a matter of 25 fact, I tell you, Jack, I send my slides in and Kevin MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
89 1 incorporates them. So, thats how independent I am on 2 these.
3 MR. GROBE: Okay. Good, thank 4 you.
5 MR. BEZILLA: We dont know 6 until the final dry run, Jack, what hes going to say; and 7 even then, hes pretty evasive, so.
8 MR. LOEHLEIN: I tell them Ill 9 adjust my whole tenor based on how you guys report things.
10 MR. LOEHLEIN: Im done, if you 11 folks are done.
12 MR. GROBE: Are there 13 questions?
14 MR. BEZILLA: Okay. Jack, I 15 would like to thank you for the opportunity to discuss our 16 performance and prospectus, and we appreciate you alls 17 questions, challenges and comments. Our vision, as shown 18 on this slide, is to have "People with a strong safety 19 focus delivering top fleet operating performance." and safe 20 and reliable operation is our focus. Thank you very much.
21 MR. GROBE: Okay. Any final 22 questions?
23 MR. PASSEHL: I dont have any.
24 MR. GROBE: Ive got, I just 25 have a couple of observations. Jack Rutkowski highlighted MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
90 1 the findings of a recent inspection report that was 2 issued. I wanted to talk a bit about that, and maybe a 3 little bit of where were going forward.
4 The inspection that we performed during the restart 5 of Davis-Besse was, I think, unprecedented both in its 6 intensity and duration. We had over 30 managers and 7 inspectors from across the country that descended, I guess 8 is maybe how it felt, on Davis-Besse. And, by and large, 9 as Jack reported, we saw methodical, disciplined, careful 10 recovery of the plant to an operating status.
11 A couple of problems that made their way into the 12 report. We saw careful consideration of unexpected 13 situations. We also saw continuing problems in a number of 14 areas, not at a level that rose to a violation or safety 15 concern, but whats comforting is that most of those 16 problems are reflected in your performance indicators and 17 reflected in the feedback youre getting from quality 18 assessment and reflected in all of the feedback youre 19 getting from independent assessments, self-assessments.
20 So, youve structured a situation where I think you 21 know whats going on, and youre responding to it in a 22 careful, methodical manner. I dont want to leave the 23 impression that Davis-Besse is a star performer, because as 24 indicated in your presentation today, you still have a 25 number of areas that youre working on, but whats MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
91 1 noteworthy is that the performance of the plant is safe, 2 and that you understand areas that you have to improve and 3 that youre working on.
4 So, I spoke with a number of your managers and 5 directors this morning. I understand that youre 6 continuing to refine the performance indicators. I 7 encourage that. Just because theyre in this document 8 doesnt mean that they cant be changed. I would strongly 9 encourage you to continue to refine them, and add to them 10 as you see necessary to give you further insights. Just 11 make sure you give us a copy occasionally, as you change 12 things.
13 MR. BEZILLA: I understand.
14 MR. GROBE: Those are the only 15 comments I have right now.
16 Anything else?
17 Okay. Thank you very much.
18 Dave.
19 MR. PASSEHL: Okay. We would 20 like to take a short five minute break and then regroup to 21 hear comments and answer questions from anyone in the 22 audience. Thank you.
23 (Off the record.)
24 MR. PASSEHL: Okay. Were at 25 the point of the meeting now where we would like to take MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
92 1 questions or hear comments from members who would like to 2 come forward. If you do want to ask a question or make a 3 comment, please speak in the microphone and state your name 4 clearly, so we can get it in the transcription.
5 MR. GROBE: Maybe we should 6 put a chair there.
7 MR. PASSEHL: If anybody would 8 like to step up to the microphone, we would be ready to 9 answer any questions.
10 MR. GROBE: Youre being way 11 too nice to us. No questions or thoughts to share with us 12 or comments to make?
13 Let me just make an observation and maybe I can get 14 some feedback from you.
15 We didnt, were not conducting an evening meeting 16 tonight. We conducted this meeting later in the afternoon 17 to give people an opportunity to come after work hours, if 18 they wanted to. Do you have any thoughts on whether or not 19 this is sufficient or should we continue conducting an 20 evening meeting?
21 We got no questions last month. And we seem to have 22 no questions today. Just any thoughts on that?
23 Okay, Carl.
24 MR. KOEBEL: Just an idea. I 25 know we had bounced off the idea of possibly having a day MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
93 1 meeting this time, the next time have an evening meeting; 2 see if that does any difference, but personally I dont 3 think youre going to see any local response at either.
4 MR. GROBE: I think thats 5 actually an excellent idea, Carl. So, maybe next time 6 well conduct the same meeting, but start at 6 or 6:30, 7 something like that.
8 MR. PAPCIN: Right, alternate 9 them.
10 MR. GROBE: Thats an 11 excellent idea, thank you.
12 Any other thoughts?
13 Any thoughts on what day of the week would work 14 best for a meeting?
15 MR. KOEBEL: Sunday afternoon.
16 MR. GROBE: Sunday, I would 17 expect to be out on the lake in a fishing boat. No, we 18 probably wont do Sunday.
19 Its just were really committed to making sure 20 were connecting with the public and giving them access to 21 whats going on. I appreciate the feedback.
22 MR. KOEBEL: Jack, on the day 23 of the week, actually Wednesdays or Thursdays would be the 24 best, for what goes on in the community, those would be the 25 most open days.
MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
94 1 MR. GROBE: Okay, well try 2 to focus on Thursday. The other thing is -- go ahead, sir.
3 MR. JAMES: Jack, I would 4 discourage Wednesdays, simply because many churches have 5 Wednesday evening services.
6 MR. GROBE: Yeah, we avoid 7 Wednesdays for that exact reason. Wednesday is a very 8 active church night.
9 The other thing is, were probably going to start 10 extending the time frame between the meetings. Im 11 probably looking at early July for the next meeting.
12 Any thoughts on that, as far as frequency of the 13 meetings?
14 MR. WITT: Thats fine. I 15 think thats plenty.
16 MR. GROBE: While we were 17 chatting, has anybody come up with another thought or 18 comment of any nature that you would like to share with us?
19 Okay. Anything else, Dave?
20 MR. PASSEHL: No.
21 ---
22 23 24 25 MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO
95 1 CERTIFICATE 2 I, Marie B. Fresch, Registered Merit Reporter and 3 Notary Public in and for the State of Ohio, duly 4 commissioned and qualified therein, do hereby certify that 5 the foregoing is a true and correct transcript of the 6 proceedings as taken by me and that I was present during 7 all of said proceedings.
8 IN WITNESS WHEREOF, I have hereunto set my hand and 9 affixed my seal of office at Norwalk, Ohio, on this 21st 10 day of May, 2004.
11 12 13 14 15 Marie B. Fresch, RMR NOTARY PUBLIC, STATE OF OHIO 16 My Commission Expires 10-10-08.
17 18 19 20 21 22 23 24 25 MARIE B. FRESCH & ASSOCIATES 1-800-669-DEPO