ML20137B478

Undated Memo Discussing Beco Reorganization

ML20137B478
Person / Time
Site:	Pilgrim
Issue date:	03/14/1997
From:	NRC
To:	NRC
Shared Package
ML20137A722	List: IA-96-480, Second Final Response to FOIA Request for Records.Forwards Documents Listed in App B.Documents Being Made Available in PDR ML20137A717 ML20137B478
References
FOIA-96-480 NUDOCS 9703210343
Download: ML20137B478 (2)

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Subject:

Boston Edison Company (BECo) Reorganization Dj3cussion:

On July 27,1995, BECo announced the planned restructuring of the company into four business units, effective November 1,1995. As part of this reorganization, about one-third of BECo's upper and middle management positions are expected to be eliminated this year. Two of the four new business units ( i.e., the generating business units - Fossil and Nuclear) will be led by Messrs. Ronald A. Ixdgett and E. Thomas Boulette, respectively. Mr. Boulette is currently the Senior Vice President - Nuclear with the responsiblity for the operation of Pilgrim Station. Mr.

Iedgett also has nuclear experience in the operation of Pilgrim Station, having worked there as a Director of Special Projects in the late 1980's time frame. BECo also announced that these two generating business units will be further consolidated into a single unit next year. In a related matter, the BECo Chairman and CEO, Mr. Tom May, reconfirmed his intention to seek a president and chief operating officer from outside the company to replace Mr. George Davis, who is retiring on September 15, 1995. Mr. Davis formerly held the position of Senior VP -

Nuclear at Pilgrim Station.

The effect of this reorganization upon Pilgrim Station is expected to result in the elimination of some middle management (i.e., section manager) positions. These changes are anticipated to be coordinated with the existing plans to downsize the Pilgrim Station staff over the next couple years.

Regional Action: Information only. The resident inspectors have been briefed regarding projected reorganizational changes affecting Pilgrim Station. Plans for a BECo management briefing of the Region I managers on this topic are being formulated.

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9703210343 970314 PDR FOIA 'I SULLIVA96-400 PDR

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On 7/14, Bill Rothert, the BECo technical general manager, briefed the resident inspectors on the " latest" version of the reorganization. Some highlights follow:

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, -Reduce overall nuclear staffing at Pilgrim to 750 by the end of 1995.

j -Reduce nuclear staffing to 650 by the end of 1996.

) -In the long term, get to 525 nuclear workers through the use of alliances and other

arrangements to supplement the direct staff of 525.

j -Restructure BECo into 5 main groups who will report directly to the CEO: Nuclear Business Unit, Fossil Business Unit, Customers Business Unit, Corporate Services, and Headquarters.

-BECO is NOT actively seeking to replace the position of George Davis when he retires.

-Company-wide the following goals have been set: (1) reduce overall company employees from 4000 to 3200 (2) 23 company officers to 12 (3) 58 company managers to 28 managers.

-In 1996, the Section level manager positions will be eliminated.

-The goal is to reduce costs to achieve a production cost of 3.5 cents /KW-HR to allow Pilgrim to survive in the changing market conditions.

-Also, BECo has decided to implement a major CULTURE change (e.g., accountability and teamwork) at Pilgrim by contracting the services of Pacific Institute from Seattle. This company has/or is working with several major organizations including: S. African government, U.S. I military, and Davis Besse, with positive results.

-BECo will issue a strategic plan within 1 month that should capture many of the above plans.

CC: JTS,BEK,JCL,RWC,'ITM 1

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