ML20213G616

Responds to 870331 Order to Show Cause.Multiple Team Approach Instituted to Assess Situation,Implement Corrective Actions & Develop Recovery Plan.Assistance Team Formed to Perform Independent Analysis of Operations & Investigation

ML20213G616
Person / Time
Site:	Peach Bottom, 05000000
Issue date:	04/20/1987
From:	Everett J PECO ENERGY CO., (FORMERLY PHILADELPHIA ELECTRIC
To:	Stello V NRC OFFICE OF THE EXECUTIVE DIRECTOR FOR OPERATIONS (EDO)
Shared Package
ML20213G127	List: IA-87-229, Advises That NRC Will Provide Comments on Draft Proposal to Use Financial Incentives to Improve Nuclear Util Performance ML20213G124 ML20213G205 ML20213G414 ML20213G422 ML20213G500 ML20213G548 ML20213G576 ML20213G594 ML20213G616 ML20213G652 ML20215G168 ML20215G170 ML20215G176 ML20215G189 ML20215G207 ML20215G211 ML20215G229
References
FOIA-87-229 NUDOCS 8705180369
Download: ML20213G616 (2)

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g PHILADELPHIA ELECTRIC COMPANY 2301 MARKET STREET P.Op. BOX 8699 PHILADELPHI A. PA.19101 (ass)ses.aoco

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April 20, 1987 Mr. Victor Stello Executive Director for Operations United States Nuclear Regulatory ~

• Commission Washington, D. C. 20555 Re: In the Matter of Philadelphia Electric Company, et al.

Peach Bottom Atomic Power Station Units 2 and 3 Docket Nos. 50-277 and 50-278

Dear Mr. Stello:

This letter responds to the Order to Show Cause issued by the Nuclear Regulatory Commission on March 31, 1987, with respect to Units 2 and 3 of the Peach Bottom Atomic Power Station. Tha Order provided that the Company could show cause by* written arswer within 20 days why the Order should not have been issued, or might consent to the Order pursuant to 10 C.F.R. Section 2.202(d).

In accordance with the Order, the Company provided Region I on April 7, 1987 with a description of its actions to assure compliance with all requirements, including station procedures, while Units 2 and 3 are in a cold condition.

The Order to Show Cause also required that, before the Company proposes to operate either Unit 2 or Unit 3 above a cold condition, it shall provide the Administrator of Region I, for his approval, a detailed and comprehensive plan, including schedule, to assure that the facilit; will safely operate and comply with all requirements, including station procedures.

Our investigation of this matter is continuing. Our efforts are now focused upon identifying the root causes of the situation which led to the issuance of the Order and taking prompt, effective corrective actions necessary to return the Peach Bottom units to safe operation. We intend to v?rk closely with the NRC to achieve these objectives.

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Mr. Victor Stello April 20, 1987 We have instituted a multiple-team approach to assess

the situation, implement corrective actions and develop a recovery plan. One team is headed by the President and Chief Operating Officer; and includes the Senior Vice President, Engineering and Production and the Vice President, Nuclear Operations. The Management Analysis Company will assist the Company in its investigation and advise management on the development of an action plan designed to lead to restart.

The Board of Directors has also formed a special committee consisting of our outside directors to act independently to evaluate the problem and its solution. Retired Admiral Eugene P. Wilkinson, a past president of the Institute of Nuclear Power Operations (INPO), has agreed to serve as a consultant to the special committee. In addition, an assistance team of nuclear industry senior management and operating personnel has been formed by INPO to perform an independent analysis of Peach Bottom operations, evaluate the Company's investigation and provide advice for cor-ective actions.

In short, I wish to assure you of the Company's strong 7

commitment to the highest standard of safety and quality in the operation of our nuclear facilities. I am confident that our approach to assessing the situation and implementing corrective action, as described above, will enable the Peach Bottom Atomic Power Station to once again achieve excellence-3 in performance and management leadershi Toward this end, i

you have my, assurance that the Company'p. s senior management, including myself, will remain closely and personally involved

! in all ongoing activities necessary to return Units 2 and 3 of the Peach Bottom facility to safe operation.

Very uly yours,

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J. L. EVERETT JLE/as cc: Dr. Thomas E. Murley Regional Administrator, Region I James Lieberman, Esq.

Assistant General Counsel for Enforcement Document Control Desk k

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