ML20236F223

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Forwards marked-up Transcript of 870715 Meeting Indicating Util Corrections
ML20236F223
Person / Time
Site: Peach Bottom  Constellation icon.png
Issue date: 07/23/1987
From: Bradley E
PECO ENERGY CO., (FORMERLY PHILADELPHIA ELECTRIC
To: Martin R
NRC
Shared Package
ML20236F221 List:
References
NUDOCS 8708030260
Download: ML20236F223 (112)


Text

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l PHILADELPHIA ELECTRIC COMPANY 2301 M ARKET STREET P.O. BOX 8699 cowAno s. sauca, an. PHILADELPHIA A. PA.19101

  • "..... i cuacue;...A.Le, #2i u 454ooo oON ALo 9 A ME avooLenA.ew.LL.., July 23, 1987 E. C. Min K H ALL T. M. M AME R CO R N E LL DQUL AUE MB ACM EoW A Ro J. C ULLE N, JR.

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1 Mr. Robert E. Martin Project Manager U. S. Nuclear Regulatory Commission Phillips Building 7920 Norfolk Avenue Mail Stop 110 l Bethesda, Maryland 20814 j i

Re: Peach Bottom 2 and 3

Dear Mr. Martin:

Enclosed are two copies of the transcript of the i Peach Bottom meeting on July 15, 1987, with one copy showing Philadelphia Electric Company's corrections to the transcript.

Very truly yo rs

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I EUGENE .B DLEY EJB/as Encls.

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2 UNITED STATES OF AMERICA i i 2 I NUCLEAR REGULATORY COMMISSION l f MEETING WITH 3i i PHILADELPHIA ELECTRIC COMPANY 4

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5l Nuclear Regulatory Commission 6 i Room P-ll8 q Phillips Building l 7

7920 Norfolk Avenue j Bethesda, Maryland I 8 j Wednesday, July 15, 1987 9l l i

10 l The meeting convened at 2:10 p.m., Bob Martin, NRC, y il presiding.

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- DAVbw 1 PROCEEDINGS 2 j MR. MARTIN: I believe we are ready to begin our 3 meeting. I am not using a PA system. I will try to speak f

i 4 i up, so everyone can hear. If you can't, please let me know.

5 i I am Bob Martin. I am the NRC Project Manager t

6[ for the Peach Bottom activities here in Bethesda. The b l 74 purpose of our meeting today is to receive a presentation  !

b l l 8 from the Philadelphia Electric Company regarding their 9 recovery program for the Peach Bottom Atomic Power Station I

10 operations.  ! 1 i

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11 This is a meeting between the Licensee,  !

12 Philadelphia Electric Company and Staff. If others have 1

13 questions that they would like to raise, we would be happy  ;

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4 14 to entertain those with you at the conclusion of our meeting j 15 g} with the Licensee. i l

l 16 [ As we are aware, the plant was shut down per NRC l l

l 17 order that was issued on March 31, concerned, principally, I i!

18 with operation personnel performance.

l 19 I will introduce some of our principal NRC Staff i l l 20 people here today, and then Dr. Murley and Mr. Taylor have l 21 some opening comments, and then we will move on to PECO's j 22 presentation.

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23 With us today are Mr. Taylor, the Deputy i

I 24 Executive Director for Operations, Mr. Murley, the Director j l

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of NRR.  !

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DAVbw 1 Ue also have representatives from our office of l

2 l OI and our regional. office here.

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This meeting is being transcribed, so I would ask i

4 that, for the benefit of the reporter, you give your name l l

i 5 before speaking. People who are interested in getting a l

6 i copy of the transcript can contact me, and I will have a 7 number of copies be made up. The transcript will be 8 i attached to the meeting summary of the meetingr.

9 That's about it for my comments.

l 10 o VOICE: Would it be good to go around and I b o .I 11 introduce ourselves, just so we all understand who the l i

l 12 audience and the disciplines are?

13 p MR. MURLEY: There are a number of i 0 l 14 ll representatives, I understand, from the State of i 15 Pennsylvania and the State of Maryland, so perhaps it would l l l h

! 16 ; be useful to introduce ourselves, so we know who's here.  !

i 17[ l' (Introductions made.)

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18 - MR. MURLEY: Jim Taylor has some comments and I  ;

I 19 have some. I l

20 MR. TAYLOR: I am Jim Taylor. I would like to 1 21 note to Philadelphia Electric, that in your present9 tion i

22 today, that you may touch on matters resulting from your own 23 investigation of the cause for NRC's shutdown. As you know, l 24 NRC is conducting its own investigation into the matters of 25 Peach Bottom. So at this time, NRC is not prepared to l

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-DAVbw 1 discuss or comment on the results or the status of our own 2 l investigation. We intend to listen to your presentation 3

i today, as well as seek clarification for our understanding l l

l 1 I i I 4  ! about what you have found, but you should not take our '

5  ! silence or comments today, either as agreeing or disagreeing 6 , with Philadelphia Electric's course of action.

t 7

l You must be aware that NRC's ultimate actions 8 will both take cognizance of what you have done, but will 9 '

also be based upon the results of our own investigation and i

10 j analysis of what must be done, leading to any restart of the 11  ! Peach Bottom Station.

i Is that clear?  !

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13  ; MR. AUSTIN: Ouite clear, sir.  ! ,

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MR. MURLEY: When John Kemper called me, John 15 i mentioned that he had done a lot of work, done'their own b

16 f! investigations. He had take a lot of actions, and you are l b i  ;

17 h heading down a certain path, and John thought it was time l I i i I

18 that we got together and talked.

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19 I agree. We would like to hear what you've done, l  :

I l 20 t where you are going. We will try to give you some i

21 indications, if we think that that is the right path, and so l

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forth. We will need to await your final report, and your 1

23 own comprehensive report. And as Jim says, we have our own 24 I

internal things that are going on, b'ut insofar as we can 25 today give you some indication whether we think you are

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7250 01 01  ! 5 DAVbw 1 l headed in the right direction, we will be glad to do that.  ;

2 With that, I guess we will turn it over to you, j i .

1 3 l MR. EVERETT: Thank you, ladies and gentlemen. j 4 Good afternoon.  !

5 My name is Lee Everett. I am Chairman of 6 Philadelphia Electric Company.

7' There are four speakers that we have for you  :

i 8 today that will outline the elements that we feel will 9 enable us not only to restart Peach Bottom but bring it up 10 to a standard of excellence in the industry..

11  ! John Austin, cur president, who has led the l 12 effort to put together this program will speak to you after 1 i.

1 13 h: I finish, i f

14 f He will be followed by Dick Smith, who is Manager

'll 15 f of our Peach Bottom facility, and he will present to you the 16 , situation at Peach Bottom, what we found and what we are D

17 - doing.  ;

i i 18 Finally, John Kemper, our Senior Vice President, t

19 will present to you an analysis of the plant situation and I i

20 the preparation for the restart program.

21 Then I will have some concluding remarks, and at l

22 that point, we would be happy to open it for any questions 23  ! or comments that your Staff would have.

h 24 I don't think that there has been ever a more '

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25 devastating event in our company's history. My own history

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l-DAVbw 1 l with the company only goes back 37 years, but I can assure 1

2 you that nothing has been more devastating, in my history l 3 with the company than to be shut down at Peach Bottom for l

4 sleeping and inattentiveness to duty-on the part of our 1

5 I operators.

6 And I want to assure you all that this is a total l

l 7 corporate commitment not only to return Peach Bottom to l

8 I operation, but to bring it up to a standard of excellence 1

9 that we can all be proud of in the industry.

l 10  ; Following the shutdown order, we immediately put in both, both an inside effort and an outside team of I 11 l -

l 0  !

12 expertise to find to the root causes and the means to t'

h 13 eliminate them.

14 The in-house team was headed up by our Prsident, i

15 t John Austin, whom you will hear from. We immediately h

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1 6 ;. brought aboard the Management Analysis Corporation, which I

17 has had extensive experience in other plants with problems l 18 in putting together recovery programs.

l 19 ,

At my request, the Board appointed a special i

20 committee to oversight the entire operation to see that we 21 ,

left no stoae unturned or left no resource needed untapped 22 to accomplish our mission.

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23 , That beerd is supplemented by Admiral Dennis  ;

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Wilkinson as a consultant. As you know, Admiral Wilkinsin  !

t 25 l was the first president of the Institute for Nuclear Power I,

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-DAVbw I  ; Operations, as well as having extensive experience in the 1

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We have looked at the problem hard and long with 4  !

a lot of outside help and a lot of inside help, why we got

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5 i to where we were at Peach Bottom.

I 6 i It is not an easy thing to outline to you, but

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one you strip away a lot of the contributory causes, I thin 8 we can identify the basic reasons. It would be very easy 9

, for us to quickly address the inattentiveness to duty 10 I

problem and try to fix that for an early restart.

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We are not approaching it that way. We feel that 12 0 is a symptom, among other, of a disease, and we want to f .

i 13 I correct the entire disease. And when we go back into l 14 operation, we will have a different Peach Bottom from the i

15 j ground up.

16 The basic problem that we have identified is lack i 17 ' I of leadership at the plant, which higher management did n,ot- ,

18 recognize at the appropriate time and do something about a t

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1 lack of communication between the plant management and ,

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corporate management staff, which we should have recognized j 21 but did not recognize in time, and there are many l 22 contributory clauses that we can discuss with you in great i  !

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l depth, if you like, but the result of this whole situation 1 24 " i was poor morale at the plant, particularly among the 25 operatorsh'lackofprofessionalattitude, in spite of their \

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technica1' competence, a surly attitude at time, which we saw 2

l and felt we were addressing, but we obviously did not i

3 l address it with strong enough and stern enough measures and  !

4 generally poor communications inside the plant.

5 That is an oversimplification.

l 6 We will document all of the root causes when we 7 present, in several weeks, our written restart plan, but I l

l 8 believe, if you look at the essence, you will find that 9 that's what we had to deal with. I j 10 i We have done a number of things, and we have a -

I  ! I 11 number of things under way. You will hear about them. We r

12 ; have made rather sweeping management changes, some of them l

F 13 i. as a result of the Peach Bottom shutdown order. Some of l 14 l them were initiated by retirements and a desire to 1

( lb C:L4jf 15 g strengthen the management of our c1 car operations that i ,

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occurred just prior to the Peach Bottom shutdown order l l

17 , between the first of the year and the end of March.

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Between those those two reasons for changing our  ;

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operation, by the time we restart Peach Bottom, every level i t

I i l of management frc3 the president down to the control room 20 '

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operators will have been changed. We will have an entirely 22 i new management team. '

23  ! At Feach Bottom and from headquarters, we have

( I 24 l engaged in a detailed operator evaluation screening, and we j j 25 are in the beginning of a-retrainingLprogram that we believe l 1

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7250 01 01 l 9 DAVbw 1 will rehabilitate operators that are rehabilitatable and  ;

2 return them to duty with a new sense of professionalism and .i I

3  ; a dedication that we lacked before. j 4 l We are reviewing and will update all technical r

l 5 l procedures and administrative procedures and controls by the l

l 6 l plant.that is in process. I i

7l We have added additional personnel, particularly, '

l 8 additional personnel for training as licensed operators.

9 Never again will we fail to have a surplus of licensed ,

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10 operators. We had a deficiency, and we did not recognize it l l

l 11 in time. We are addressing many human relations factors at  ;

12 the plant that contributed to poor morale. He have i 13 , developed a new code o# professional conduct, backed by a 14 much stronger code of discipline and disciplinary 15 procedures. You will hear about it later.

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16 lli Ue will have a requirement that each individual i I

17 , commit him or herself to a professional conduct that we I:

b 18 require, will require, as a condition of reemployment in the 19 new Peach Bottom. l l 1 20 We have reviewed all past criticisms by the NRC 21 and by INPO, and we have reviewed all the elements of the

! l 22 two programs that were in place to improve our operations ,

23 l down there at the time we received the shutdown order. The f' I

24 Peach Bottom improvement program and the Peach Bottom i 25 enhancement program. They will all be addressed in our  !

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- DAVbw 1 restart plan. I 2 l Ue come to you with considerable assets, we i.

3 l believe, that will enable uc not only to restart Peach

! l 4 Bottom but to return it to a top plant in excellence of l

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5 operation.

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l 6 l First of all, we have in-depth technical l 7 competence in the plant and in the staff of the utility. We i l

8 are one of the older utilities that have been involved in I i

9j nuclear power, getting into it in the early '50s and with l I:  !

10 } our own plant in the early '60s. .

1 i i 11  ! Ue have a plant that does not have the kind of ,

t 12 serious hardware deficiencies that would prevent it to be '

i 13 n restarted safely. He have excellent support from an in- l 1

14 , depth, inside corporate staff and from longstanding I

15 g relationships with outside consultants and outside  ;

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i 16 contractors, but most of all we have our dedication to do j

17 . whatever it takes to bring Peach Bottom up to and beyond 18 '

Limerick's level of performance, of which, as you know, are l i I e

i 19 i very proud.

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20 l Ue are convinced that when the programs we i

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outline to you today are completed, they will enable us to l 22 operate Peach Bottom without question as one of the most 23 excellent plants in the industry.

24 I have said publicly that my own job is on the 25 line. It i s7 I , indeed, feel that way, because if we can't ,

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l DAVbw 1 l put together a plan that will restart Peach Bottom and bring 2

l it to excellence, then perhaps we ought to make changes at i

3 l the top of the company. And I can assure that if I feel j l

I 4 that way, the whole company feels that way.

l 5  ! Now I am going to introduce to you, John Austin, 6 ,

our President, who will present to you, in more detail, what 7  ! we found and what we are doing in putting together the i

l 8  ; re. start program.

i At the end of his presentation, Dick Smith will 9

10 I; take you through the situation at the plant, particularly 11 i with respect to personnel and what we are doing.  ;

12 And finally, John Kemper will present to you an 13 analysis of the plant situation and the preparation of the  !

i 14 , plant for comprehensive restart.

I  ;

15 At the end of that point, we would be happy to I

16 entertain your questions and comments.

17 U I hesitate to ask you not to interrupt us, ,

l 18 because if you feel you should interrupt us, please do, but  ;

D.s w l 19 I think if you will jot your questions donw, as we go u 20 through these presentations, you may find that we have 21  ; answered most of them by the time we complete our 22 presentations.

23 In the event that we have not, then, of course, i

24 we will go into detail.

i 25 l John?  !

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- DAVbw 1 MR. AUSTIN: Thank you, Lee. Dr. Murley, ladies l

2 and gentlemen. l 3 What I would like to do with you is summarize the 4  ! actions that we have taken since the shutdown order, the i

5 l conclusions that we have reached, give you an overview of l

6 the corrective actions we are taking, the details of which l

7 will be presented by Dick Smith and John Kemper, who will B

f follow me.

9 Then I think it would be appropriate to touch j 10 very briefly on a question that I think all of us asked i

11 through all of this. Why, in one company, such a difference l l

12 between two plants, Peach Bottom and Limerick?

  • 13 4 Turning first to the actions that we have taken  !

i 14  ;

t since the shutdonw order on March 31. Of course, l

10

[ immediately, we took a number of steps that'were 16 (!g subsequently filed with the NRC to fulfill our mandate-to l 17 maintai'i the plant in a safe shutdown condition. I won't 18 review all of those details with you. They were in our 1

19 filing.

20 l I can assure you that we have strictly adhered to 21 I everyone of them and particularly have maintained an i

22 l i

additional management presence on all shifts and with OA 23 '

presence on all shifts to maintain the quality of operations .

i l 24 i in cold shutdown. I i

25 As Lee mentioned, we formed an internal i

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  • management team, personally. under my direction, composed of  !

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2 our senior operating and engineering executives and with l

3  ! representation of our co-owners. And throughout this l i 4

l restart effort, we have established a direct line from my l 1

5 f office to the plant manager at Peach Bottom for all matters

! l 6 relating to the restart of that plant, j l '

l 7 i We retained Management Analysis Company to assist 8 us in making an independent root cause investigation and to j 9 repor to us their independent conclusion of what were the I

10 i real root causes of the problems that led to shutdown and j l

11  ; were not just symptoms. 1 l

12  ! And in addition, to conduct a thorough 13 l investigation of the plant on our behalf, so that we would  !

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not be investigating ourselves, and we would have the 15 benefit of an independent, impartial investigation for fact 16 i finding purposes.

17[ Ue also enlisted the assistance of our brethren h l 18 ' in the industry through the INPO., Institute for Nuclear Power 19 ,

operations. We asked for, and they formed, an Industry 20 Review Committee, which has met a number of times. Its 21 purpose is to bring together to as the best minds and i

22 experience in the nuclear industry to address this problem l

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at Peach Bottom.

24 Claude Cross of INPO is on this committee. Jim i l

25 Hampton of Duke Power, Don Hintz, from Wisconsin Public l

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DAVbw 1 Service, Bruce Kenyon, from Pennsylvania Power & Light, and l 2 1 Ed Utley, from Carolina Power & Light.

3 I know that these gentlemen are all known to you l l

4 l as seasoned experts in the nuclear industry, and we were 5 delighted to have their help. 1 6 He have a special committee of our Board of 7 Directors with a consultant'to that committee, Admiral 8 Wilkinson. Their role is to provide oversight for our i

I 9 response to the NRC in the recovery of Peach Bottom and will to 's 10 ,

hae a continuing oversight thereafter. '

11 We have also conducted our own internal i L i 12 investigation and interrogations of the events that led to L ,

13[ the shutdown of Peach Bottom. , I h

14ll This investigation was conducted by our own f I 15 [ Ph'iladelphia Electric Company Security Division. This is l 16 independent of nuclear plant security. This is a corporate  !

17 resource. It is composed of people with professional h ,

i 18 f, investigatory background. It is headed by an ex-FBI agent i i

19 and many of the investigators came to us from various police  !

20 i backgrounds. They are skilled and experienced in performing 21 these kinds of investigations in any matter anywhere in i 22 Philadelphia Electric that requires their services.

I 23 i This group questioned every person in and 1

24 affiliated with the control room operations at Peach Bottom, l 25 and they not only conducted interrogation on matters related  ;

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- DSVbw 1 to those cited in the shutdown order, but we made sure that 2  !

each interrogation included broad questions of all other I

l 3 areas of control room performance and behavior, to see if ,

4 there were any other problems there that had not become i

5 apparent to us.

t 6 As you know, per request of the NRC Staff, the 7l actual copics of statements of these interrogatories have 8 been furnished to the NRC. In addition, every statement 9 taken both by the Philadelphia Electric Security Division I

10 I interrogators, as well as the work papers developed by MAC, i i

11 l in their impartial or independent root cause analysis, have i 12  !

been given several levels of review by us at Philadelphia 13[E Electric, including engineering, engineering management, i

i '

14 nuclear operations.

We have been over each i~ statement to e 15 make absolutely sure that no information was contained 16 therein that.even a potential for either an LER-type event 17 that had not been properly reported or some other I j i i 18 unacceptable activity that either should be addressed by our I 19  ; company or should have been reported. i I

20  ; We identified, in that analysis, 17 items that at 21 ,

l least were questionable and should be followed, and they all t i

22 l have been. 15 have been closed. Two very minor ones are i

23 still open, and I can report to you no significant event has 24 f come to our attention that had not been appropriately f 25 i i reported. I I

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~ DAVbw 1 Ue also formed a project management team, headed l

tv I 2 l by Gene Fogerty, who is here, who is our Chief Research and i

3 Planning Engineer, currently on detached duty as Project 4

l Manager. This Project Managment Team is put together to i

5 coordinate, manage and schedule all of the activities that 6 will be brought together in the Station Recovery Program.

7 i Currently, 70 people are working full-time on 8 this project and the number could grow as high as 200 before 9 we are done. MAC is also giving its consulting assistance 1

10 i to this Project Management Committee, and we have labeled 11 j this whole effort more than a restart plan, more than a i h

12 l:i recovery plan. It has been labeled Commitment to Excellence 13 at Peach Bottom, because it is going to be a continuing I 14 , commitment by this plant and all of its people, not just to 15 restart, but to attain excellence and keep it.

i 16 '

on May 4th, roughly one month after the shutdown, l 1 i 17 we hire a new manager for the Peach Bottom plant. He is t t i

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Dick Smith, who is here today. You will hear from him in a j I

i t 19 i few minutes. Dick retired last year from the Navy as a rear j I

20 admiral, after 30 years of experience, primarily in nuclear l

i 21 =

submarines, commander of nuclear submarines, personal 22  ! servicew on the staff of Admiral Rickover, and other general - i I  !

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Navy command. i

! l 24 Dick is manager of our plant, and we are l 25 delighted to have him on our team.

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Vbw 1 l What are the~ conclusions that we have reached 1

2 from this very detailed analysis of the events that led to 1) 3 the shutdown at Peach Bottom?

4 We have concluded that the cause, the' root causes )

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of the declining performance at Peach Bottom'and the 6 I development of patterns of_ unacceptable behavior that_ led to i

7 the shutdown order was management deficiencies at the plant, '

'. K a i. . . . l .

8 specifically, poor personal leadership and management skills t 9_ on behalf of the senior management of the plant. The l4 10 failure to initiate a comprehensive and timely program for q 11 l licensed operator replacement training, to have both reserve

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l 12 i licenses and replacements ready, as the existing operating 13 force became older, transferred or retired.-

14 Additionally, this plant, which initially was 15'! established in the early 1960s and was then staffed and I i 16

, managed, both operating and engineering management, from our u

17 I fossil power plant family, carried with it a transplanted 18 fossil station structure and culture, which worked very well-19 l i

when it started and very well in the first decade of the 20 ! plant's operation, but then as time passed and conditions l

i 21 i changed in the nuclear industry, became out of date and i

I 22

  • didn't adapt to the new world.

23 And lastly, although those of us in corporate 24 ,

management clearly over the last two or three years 25

, recognized that problems were developing at Beach Bottom, i

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'7250.02 02 18 DAVbw 1 the root cause was that we failed to recognize soon enough-2 j and fast enough the severity of those problems. J l ~

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l Having made these conclusions as to root cause,3, +

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4 l we also conclude that these management problems at Peach 5 Bottom.are, in fact, site-specific to Peach Bottom. .I will-

-6 come back to that point in a few minutes.

}

7 i Our consultants' independent root cause j l

8 investigation at Peach Bottom.has confirmed all of the above '

9 root cause conclusions, and I will say, categorically, that 10 not only have we formed our own conclusions, but we have l

11 ,

taken the conclusions and. recommendations, not only of our I U

consultant, but also prior conclusions and recommendations l 12 0  ;

}

13  ; from various NRC documents, INPOs and SALPs. Every one of f i

14 l them are accepted by this company, are'being addressed in-15 e the commitment to excellence and will be followed through.

S 1 16 f Many of these problems at Peach Bottom have been

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17 1 recognized over the last two to three years, and in i

18 .

. .e uuali; every case have been addressed and substantial or '

l i

19 substantive action had been taken and'was currently in 20 progress. Following the INFO evaluation of the plant in 21 .

1985, we. implemented the Peach Bottom fmpr,ovement plan _

22 specifically to programmatically address the findings of 23  ! that INPO investigation and annual review.

! i 24 Following the SALP report in 1986, we instituted 25 a Peach Bottom enhancement plan to specifically target and i

l ACE FEDERAL REPORTERS, INC.

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.7750 02 02 19

"'Vbw 1 f track every one of the recommendations growing out of that i

2 l

SALP review, and that program is continuing under its own 3 i project management. It is on time and on target and will be 4 j integrated into the total Commitment to Excellence Program I

5 that we will present to you shortly.

6 In addition, as John Kemper will give you more 7  ! details on, the facilities needs of the Peach Bottom plant 8 have been addressed, roughly, every two years since the 9  ; early '80s, and in fact, millions of dollars have already 10 been spent in facilities additions and additional facilities l

11 are under construction and committed.

i 12  ! John Kemper will give ou more details on those.  !  !

13 The management changes that have taken place in 14 l 1985 and '86 were addressing these emerging problems.

I 15 And all of the above will be integrated into our 16 j' Commitment to Excellence.

F ,

17 [9 Let me turn now to an overview of the corrective l'

1 18 actions that we have already initiated in the recovery of '

i 19 Peach Bottom and leading to its restart and continuing 20 Commitment to Excellence.

l 21 Dick Smith will give you more details on some of l

22 these as he makes his presentation, as will John Kemper, but 23 I want to give you an overview of the package and how it all 24 fits together.

l

~ l l

25 We have said that our conclusion, as supported by j i I l

ACE FEDERAL REPORTERS, INC.

200 347 3700 Nationside Cosera;c MKk3366646

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7250 02 02 20 I l

- DAVbw 1  ! the consultant, is that we have a management problem, I

l 2 i therefore, our corrective problems have appropriately 3 .

focused on management. We include in that the I

.- l

! 4 accountability fr-the management then in place for the v l i

5 unacceptable performance, the changes that have been made in j l l 6j management to address these problems, and then, thirdly, a '

I' 7 general upgrading of the quality of the management to be on

! l 8 shift in this plant in the future.

9  :

Let me touch on those. '

l l 10 Since the shutdown order, all levels of operating l 11 ( management at Peach Bottom have been replaced, or in a few E  !

12 ( instances are in the process of being replaced, as 1oon as  :

h ,

13 [ the replacements have been licensed and/or trained and can be i ll 14 released. In every case, every level of the management has 1

15 been changed or has been informed that he will be relieved G

16 [ when his replacement has been licensed. The manager of the D

!i )

17 [ plant has been replaced. Dick Smith is.there now. The '

1 i

18 superintendent of operations has been informed that he will  ;

i i -

19  ! be reassigned as soon as his replacement, who has been  !

20 ! designated, is licensed. '

21 l I am h'opeful we can accomplish that in the next 22 i month or two.

23  ! The senior engineer in charge of operations has I 24 been replaced.

25 At the time of the shutdown, under our then form i l l /LCE. FEDERAL REPORTERS, INC.

200-347-3700 Nationwide CoseraFe 800-336-6646

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21 i ~ I- -

i -

DAVbw 1 r er-organization, the senior management person in the plant s-2 I on every shift responsible for the total operations of the 3 plant on that shift, night or day, weekend or week day, was i 4

4 i a shift superintendent, and we had six of them, one per 1 l

i I 5  ! shift. None of these men will return to duty after restart.

I 4 6 One has retired, the remaining five have agreed 7 to continue to stand watch and have been, since the ti 8 shutdown, in cold shutdown, to man the plancand provide L I 9 their experience in the control room while a retraining l 10 program is in place.

I 11  !

None of them, however, will return to power l 12 . operation.

13  : As Lee mentioned, all levels of corporate '

14 management between Lee and myself down to the plant manager 15 i had already been replaced at the end of 1986. And with one 1 '

16 ,

possible exception, none of these people are ex-Peach 17 Bottom. The exception is John Kemper, who was the first l i

l 18  : superintendent at Peach Bottom, over ;' years ago.

l l 19 'I At the time we made that management structural >

1

' i 20 l change at the end of 1986, it was with specific objectives 21 l to address the problems and gear up for a larger nuclear 1

l 22  ! operation, as Limerick was now in service.

1 r 23 We created the position of Senior Vice Prsident _

l i

l 24 for Engineering and Production, John Kemper. The purpose wa-i l

25 i to provide, under one responsible and accountable group 1

l >

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202-347 3700 .Nationvide Coverage MG336 6646 F

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'DAVbw 1 i executive, all aspects of nuclear support, nuclear i

' i 2 operations, nuclear maintenance, engineering and i i

3  ; construction support, instrument and control, technical l I

4 support. That was specifically done for that reason,

! l 5 whereas nuclear station operations in the past have  !

l 6 . reported, along with fossil stations, to a single vice .l l

7 , president. We established a Vice President of Nuclear 8 Operations, whose only responsibility was the quality safe 94 operations of both of our nuclear plants. j t

10 .

That is the new position effective this year, and  !

1 l

11 Joe Gallagher is that vice president. l l

i 12 d Then we established a Manager of Nuclear  :

G 13 Generation, Graham Leach, who brought his successful i i

l 14 l experience in the construction and startup of our Limerick j 15 Station, directly into the nuclear operations chain of c  ;

16 [ command.

L 17 ! Those were all done at the end of 1986. '

i 18 l Upon restart, we will propose, for NRC approval, l i

ll 19 in the appropriate documentation, that a higher level of 20 management be present on each shift. A shift manager, we i

l l 21 will call him, who is an' will be independent of the shift t j

! i I

He wil Not be an up-from-the-ranks operator. -

4 22 progression.

l l

23 He will not be a permanent shift worker. He will ba '

l 1

l  ! 1 l 24 '

independent of the shift progression and will be rotated in j 25 that job every three to four year. \'

l J /

l l q l

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7250 02 02 23 DWbw 1 l

Shift managers will be experienced, degreed 2  ! engineers with senior licenses and will report directly to l 1 l 3 . the Superintendent of Operations. He will in fact, be the i 1 4 i embodiment of the Superintendent on every shift.  !, i i \ '

5  !

'" - j

! 'i

'6 l )

I' i 7

l 8 )

9  !

I l 10 t 1

i  !

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13 14 l

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15 l

16 17 '  ;

i 18 i l

19.  !

i 20 l 21 I 22 l 23 ,

24 l l

25

! ACE-FEDERAL REPORTERS. INC.

, 200 3r 3700 Nanonwide coserage 800 336 6646 l

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- DAVbur 1  ! This is a key element to solve the root cause of-1 2 the Peach Bottom problem. It addresses the isolation from l

3 l management that had grown up wi thin the operator'sg. It t

J.

4 i provides for that personal presence of senior station 5 management on every shift, and it does in fact provide a

]

6 I management development opportunity for future 7l superintendents and managers.

l l 8 We will furthermore create opportunities for l l

9d licensed operators to have their own career path, which will l 0

10 provide for periodic experiences of both day work and l 11 serving on the management side of the plant in' support of  ;

h i 12 U operations and then going back to licensed operation and to l 13 P provide that licensed operator is not a dead-end job. There 5 14 '

will be opportunities both in support activities and in line ,

I 15 management for the superior licensed operator to progress  ;

F 16[ and not be dead-ended in the control room.

17 I Lastly, we are in the process, as you will see in i i

1 18 John Kemper's presentation, of providing that upon restart -

19  ! there will be OA personnel on shift, all shifts, to monitor 1 I I

20 ) the quality of operations.

l 21 >

Site management authority is being strengthened 22

  • in areas of discipline, grievances and selection  ;

)

i I

23 requirements for promotion to assure the highest quality of  !

1 24 ,

people, both that are selected for operators'and are j l

25  !

selected for promotion within the operators.  :

! I i

I ACE FEDERAL REPORTERS, }NC.

200.147 3700 Nanonwide Coserage 80M36-6646 ,

7250 03 03 l l 25

~DAVbur j 1

All of these things, then, fit into that general I 2  ;

category of upgrading the quality of shift management upon 3 l restart.

{

4 l Let me turn now to the control room operators and l

)

5 first level supervision under the management shift 1 6  ; superintendent level.

7j These operators, licensed operators, are being 8 carefully screened for acceptance to volunteer for a 9  ;

t rigorous retraining program, and I carefully emphasize both 10 i,

to volunteer for and to be screened for acceptance.

11 l We did find in our investigations that all of the l.

12 ,

operators at one time or another and to varying degrees on 13 h occasion had indulged in inattentive er otherwise improper '

14  ;

control room behavior. There was evidence of sleeping, but 15 inattentiveness goes beyond that. It goes to posture, f  !

l 16 [ position, attentiveness to controls, reading unauthorized 17 o material, et cetera.

18(0 The NRC has all of the detailed evidence of these 19 findings from both their own investigations and the i i

20 investigative statements that we have forwarded to them. ,

21 I We did come to the conclusion that on the basis '

22 of that evidence none of the operators then on duty at Peach I

23 Bottom at the time of the shutdown could be considered i

I 24 acceptable for return to power operations without  !

i t 25 retraining.

l l

i 0 /\CE. FEDERAL REPORTERS, INC.

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26 DAVbur 1 We found in many cases that shift management l

2 itself had condoned unacceptable behavior and on occasion 3

1 had itself set an improper example, and it was on the basis 4

of that evidence that we made the decision that no shift i'

5 superintendent senior manager present at the time;would S be t 6 returned.

7 Furthermore, on the basis of the evidence from 8 the investigation, selected operators have been excluded I

9 l from the opportunity for retraining and excluded from the i i 10 opportunity to return to duty as a licensed operator based 11 i on their past performance, the results of our s

i 12 investigations, individual interviews with Dick Smith and 13 i his plant management, and independent psychological I

14 evaluations. l' i

15 After all of that selection process, those 4

ll 16 operators who have volunteered and have been accepted for 17 i

retraining will receive a serious written reprimand in their ,

18 service record and will commit to a new code of professional 1

19 -

conduct.

20 -

And, as Dick will tell you, the first group of l

]

ll 21 j these operators began their ' raining program last week. i 22  !

In summary, of 36 plant operations personnel on i

23 duty in the rotation in Peach Bottom at the time of the i i

24 shutdown, three senior management at the plant, six shift  !

25 e management / shift superintendents, and 27 RO/SROs, of those i

l l  !

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~ D'Vbur i 1 j 36 people we have already decided that 12 of them, or one-i  !

2 l third, will not be permitted to return to power operations.

! 4 l

3 i on a parallel path, we have already embarked on a j l

i 1 4 l recruitment and training program for new licensed operators I 5 and have accelerated the class that we already have and have l 1 i

6 l set higher standards of entry.into operator training and l l

7 higher qualifications for initial hiring that will lead to l

8 i operater training.

l 9 I This comprehensive and integrated program of j

I '

10 strict management accountability, strengthened on shift l

. . i

( i . .

11 , managements _s presence and retraining of acceptable operators '

12 is the cornerstone of the company's plan to restart Peach  ; l l .

r 13  ; Bottom and is critical to its success. It goes to the heart I i

14 of the management problem.

{

15 I It enhances the quality of shift operations for 16 [ the long run because it provides for a degreed senior 17 license operator to be on shift at all times. It avoids an l 18 s unnecessary loss of very valuable, many years of operating ,

Y Jn l 19 .

experience, and we would indeed, as Tom Murley had offered, i

20 , seek your reaction.

1

! ?1 While all of this has been going on, our project l l 22 '

management team has been engaged in a total review of all l

I 23 . other plant deficiencies, and this part is now in progress.

1 I

24 1 He have made an intensive document review of all NRC, INPO, 25 and SALP reports of recent years.

I l  !

! /\CE FEDERAL. REPORTERS, INC.

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7250 03 03 20 l

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- DAVbur 1 We are looking at procedures, rad waste, i

2 l maintenance, capital facilities improvements, training, l

3 l health physics, and more. All will be committed and i

4 scheduled in the action plan and many have actually already l

5 I been started.

6 Priority 1 tasks will be committed to be 7 completed before restart. John Kemper will give you the 8 details on these activities.

l 9  ! And, lastly, to fill in this picture of

! l 10 l preparation for restart, we have continued our plans to 11 l I

begin a one-year outage on Unit 3 for large pipe 12 i replacement. We plan to start that outage on October 15th I i

l so that the plant, when it restarts, will be restarted with i 13 j l

14 only one unit and will run for a substantial period of time j l

15 i with only one unit before a second unit is ready to come on.

16 Let me come back to that question that I am sure  ;

, i 17  ;

has been on many of your minds and certainly has been on 18 ! ours throughout all of this. Limerick is such a superior  !

I l 19 l plant and has such a superior record, and yet we have Peach l l l 20 l Bottom, the problems at Peach Bottom. How come? How can i

21 this be, as they say? ,_, ,7 ,

22 l Limerick had a superior restert, one of the best i

23  !

in the industry, and it had an outstanding performance  !

l i

24 ,

during its first 18-month fuel cycle and recently received a

, i 25 SALP report of which we are genuinely proud.

l j ACE FEDERAL REPORTERS, INC. l 1 202 347 .1700 Nationwide Coverage 800 336 6646  !

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s 8 7250 03 03 29

'DAVbur 1 l Peach Bottom had an excellent record of 2 availability and performance in its first decade, but in 1

l 3

recent years had shown declining performance and had in fact 4 had a series of enforcement actions.  !

l 5 Yet both of these plants were built, operated,- ..

6 >

supported, and maintained by the same management, the same 7 engineering and maintenance support, the same technical I

8 l

support staffs. They had the same nuclear steam supply i

l 9 system vendor and in fact were built by the same architect 10 l engineer.

11 l

We have come to the conclusion that the genesis I i ,

12 l of the manaaement deficiencies that have been identified as N

13 I root causes at Peach Bottom are site specific and are I 14 -

directly attributable to the age, history, and location of I f

15 ! the power plant. j h

F 16 As I mentioned a moment ago, Peach Bottom is one 17 of the earliest commercial nuclear installations in the j

I 18 United States. It began in the early 1960s as a prototype
  • 19 l experimental HDTGR. In 1974, Peach Bottom 2 and 3 went into

! \

20 '

commercial operation. So it has been there a long time, as 21 have the people. For 20 years this was the only nuclear i

22 j installation on the Philadelphia Electric system, and to i

23  ; compound the probicm it was in a remote, isolated area of 24 , York County, some 80 to 90 miles from corporate i

23 l headquarters.

l

)

1 I

/\CE. FEDERAL REPORTERS. INC, l 202 3G3700 Nationwide Coverage 800-336-6646

. i 7250 03 03 ( 30 (

I

- DAVbur 1 l As I mentioned earlier, originally and very 2 properly, it was staffed and structured from our fossil l I i 1 3 plant people and brought with it fossil plant experience. t 4

It brought with it in those days the concept that the good 5 power plant operator was good because be knew his i

6  ! procedures. It brought with it a culture that tended to I

7 l isolate the control room operators from the rest of the 8 plant because they had their own progression, they had their l

9 ! own structure, and there had not been a tradition of having I ]

l 10 independent senior management on all and every shift.

I 11 ): This all worked well in the early days, but times  !

12 , changed. In addition, there was an in-growth of the n

i personnel progressions. It was the only plant on the 13 ] t i

14 i system, and it had to have site specific licenses. So I

, 15 people tended to grow up within that plant, and in some l n 1

16 [ cases people had spent 25 years at that plant and that was  !

i <. .

l 17 the. plant they knew.

kq I 18 They were technically competent people, but they B

, I i

}

19 f failed to change with the changes in the nuclear industry, '

l l 20 l particularly after Three Mile Island.

21  !

Take that comment I made about what makes a good ,

i i 22 fossil operator is that he knows the procedure. Yet in i

23 l today's nuclear world, no matter how many times,you put that i

24 pump on, you get the procedure out. That is a cultural 1

25 change that had not been made and, quite frankly, in some i

! /LCE. FEDERAL REPORTERS. INC.

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7250 03 03 31 l l

1

"*Vbur 1 cases was resisted.

l I 2 l Compounding this, there was some lack in good

}

3 , personal leadership skills that might have overcome seme of i

l 4 l these hardships, and as I mentioned earlier, they did not t

l 5 start fast enough, soon enough to provide for a replacement. l 6 , training program as the existing licensed operator force l

7 i attritioned with age, retirement, tr'ansfers, and medical 1

8 problems.

I 9 , Again, our consult' ant supports this conclusion, ,

t i 10 and our restart recovery plan, our commitment to excellence, f

i 11 I while being focused specifically at Peach Bottom, will carry  ;

12 with it our commitment that the lessons we learn at Peach  ;

13 l Bottom will be transplanted to Limerick ~1ater because we l I

i 14 l want to make sure the same thing doesn't grow over time in i

15 our new pl' ant.

16 To wrap up, I repeat the same personal commitment l l

l l 17 that Lee Everett made to you,,we are and I am committed to a l

l 18 permanent quality fix once and for all of the root causes of  !

l 19 ) the problems that have developed over time at Peach Bottom.

i 20 This effort has been and will be under my personal direction 21 <

and carries my personal commitment.

l l 22 -

We are going to take the time to do it right. We 23 are going to address all of the needs and deficiencies of i t 24 the plant, not just the causes that precipitated the l i  !

25 i shutdown, and the full resources of our corporation are I

~

i I

I f

] ACEdFEDERAL REPORTERS, INC.

20:_% 3700 Natiomude Cmerare MK).136.66.M j s

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7250 03 03 32 l l

- DAVbur 1 behind what it takes to do the job, behind excellence in ,

2 ,

nuclear operations and not just at Peach Bottom but at both I

3 plants. J 4 i Our schedule is necessarily not yet totally firm, 1

l 5 l but the directions of our action plan are well-defined, and l I i l i 6 that is why we thought it would be timely to review them j 7 with you today. Here are our current goals.

8 Our plan is to file with Region 1 an action plan j 9c for recovery and restart during the first week in August to i

10 provide you with ample lead time for your staff reviews, l 1

11 processing, comments, feedback, and supplemental information ,

i 12 you may ask us for. I 1

13 h As Dick Smith will ,show you, we anticipate at l U j i

14 this time that the plant operating staff will be ready, in 15li place, people retrained and qualified to restart one unit j n i .

' (

16 around the end of October. Of course, our commitment is 1 l

1 17 , that all other technical and support work in Priority 1 that j 18 I we are committed to do will be done to support the plant to l 19  !

meet that date. t 20  ! We are also very mindful -- and I know you are --

21 f that you don't take a big unit like this that has been off 22 i for six or eight months and suddenly turn it back on. We 1

23 recognize that when I say that in late October we expect the ,

i 24 ,

staff to be ready, there is a lot of work that will need to t .

I 25 be done -- reoperation testing, system checkouts, i  !

! 1 j dice. FEDERAL REPORTERS. INC.

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  • 7250 03 03 33 DAVbur 1 checklists, valve configurations, surveillance testing.

2 This work will take time but will also provide an l

f 3 opportunity for the new shift teams to work together and 4 develop experience as a team to supplement the individual l

5 f training they will have completed by that time, and likewise

)

6 f in this period, between training and through startup, we 7 will utilize our sixth training shift every week for 8 additional simulator team training for these new shift 9 teams.

i We have titled our action plan a commitment to I 10 i l

11 excellence. I have used that term many times in my i

( '

12 presentation this morning. It was coined by Dick Smith, who ll.

13 said when he first arrived, I am not here just to turn 14  ! around the plant; I am here to commit it to permanent 1

I i

15 excellence.

i a

Our goal was to have Peach Bottom be one of the i 16 (I i 17 best plants in these United States, just like Limerick. He i

18 know we can do it. We are here to pledge that we will do 19 it.

20 Now, I will ask Dick Smith if he will tell us 21  ; what is going on at.the plant.

4 t

22 I MR. SMITH: Thank you, Mr. Austin.

23 Dr. Murley, Mr. Russell, Mr. Taylor, ladies and j 24 <

gentlemen.

25 j As Mr. Austin has said, I joined the Philadelphia 4

0 1

ACE-FEDERAL REPORTERS, INC.

20: 447-3700 Nationwide Coseras: MO-3 36-6M6 l  ;

7250 04 04 34

- DAVbur 1 Electric Company on the 4th of May. I went out to the Peach 2

Bottom Station and took over as Station Manager on the 6th 3 , of May.

I 4 l That is ten weeks ago today. In those ten weeks 5  ! I have spent my time talking to the personnel out at the I l 6 i plant and talking to the people at headquarters. I have 7 been reading all the past reports I can get my hands on --

J, !\-

8 your SALP reports, the INPO reports, the AsI reports, 9 rereading the NRC inspection reports, looking at the 10 commitments that Peach Bottom has made and Philadelphia l

! )

11 Electric has made and.,various agencies.  !

I 12 .l I have in-depth reviewed the Peach Bottom i i l 13 h enhancement program which has been spoken of and the  :

I i 14 improvement program.

15 I have been studying plant information to enhance 1

16 hl my personal knowledge of boiling water reactors like Peach 17  !

Bottom and spent my time walking and walking and walking the '

18 plant.

19 My emphasis in my ten weeks has been to I

20 understand the extent of the problem. Do we really know 21 what the boundaries are? Are there any more rocks to turn 22 j over? Do we know what the problem is?

23 I have also tried very hard to improve l

24 communications, communications with the local NRC residents l i

25 and visiting inspection teams. Your senior resident

) 14CE. FEDERAL REPORTERS. lNC.

l , 202 347-3700 Nationwide Coserage W) 336 6646

l 35 7250 04 04 DAVbur 1 inspector and I have a formal meeting once a week, and we l

2 meet on many occasions between those formal meetings .

i 3  ;

whenever there is anything that either of us wants to bring i I

4 i

to the other's attention. I think we have a good working l l

i 5 .

relationship.

I 6 I have set up senior station staff meetings so l l

7 that everybody that is in charge of any one of the parades t i 8 l out there meets with me on a weekly basis, 9 I found too much of a "we" and "they" attitude  ;

l 10 out at the site. But now I meet with the vendors, with the i

l 11 i people that report to corporate headquarters, and the people  ;

i 12 that are on my payroll on a weekly basis so we can get to i

I 13 l know each other and work together as one team.

f I have met with the shift operators whenever I 14  :

i 15 had anything I needed to put out to them, and I have set up 16 a weekly meeting to meet with them just to talk to them to  ;

17 see what they have on their minds. I would be there this i 18 afternoon in another half hour if it were not for this i l

19 meeting. I i

20 i Beyond those people, I have tried to talk to 21 everybody. As I said, I have spant a lot of time walking l

22 the plant, engaging in casual conversation and trying to get 1

23 people to open up and tell me what they think we need to do l i

i 24 i and where they think the problems are.  !

25 l I have recently set up a "Tell it to the manager" l 1

I l

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~ DL.Vbur 1 suggestion box' system, and, believe me,, I am~getting a lot l

2 i

! cf inputs and a lot of questions, very good comments from o

l 3 the people.

l 4 I In addition to communications, I have been 1

' ~

l 5 reviewing our total organization. Are we properly set up to 6 ,

do the. job that needs to be done?

I 7 l Perhaps most important, I have been trying to 8I i

assess the operator attitudos to determine their usability 9 in this e~cellence program. ,

I 10 .

i In general, and in very short summary, in general 11 I have found very strong corporate support to an . excellence ,

12 ; progra.m.  ! have found the people were eager and waiting to g -

13 h be told what to do, ready to accept positive-direction, and l k

14 [ wanting to move forward. I have found there were many V

15 [ ongoing improvements projects that were showing definite l 16 i positive results.

e ., 1 17 h.

v All of the trends ef- Peach Bottom were and are in )

18 I the right direction.

l 19 I am going to dim the lights and put up my '

20 visuals.

21 I (Slide.)

22 Based on my ten weeks of observation at Peach 23 Bottom Atomic Power Station, I would spotlight the areas 24 shown on this slide as the ones with which I am most 25 concerned.

I I

i ACE. FEDERAL REPORTERS, INC. l

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7250 04 04 37 "Vbur 1 Of course, number one would be people.

l I am not 2 l talking about the 30-plus operators that are operating the 3 plant under licensed conditions. I am talking about all of I

4 the people out there, the 1200 to 2500 that come through  !

5  !

that gate every day. We must have one team working as a 6

l, unit, dedicated to excellence, and as I said, historically 7  !

there was too much of a "we" and "they" attitude. ,

(.~

8 The site personnel do have a general positive e s 9 attitude. They readily accept that there is a need for a 10 '

change, and they are eager to have change. I think there l l

11 i has been progress.

12 p Recent outside inspectors have made specific ,

b 13 '; concents to me concerning the attitudes they have observed i i

14 I at Peach Bottom recently as compared to their experiences at 1

15 Peach Bottom in the past. i 16 [ I am looking at organization.

We are reviewing L

17 L all of the organizations at Peach Bottom, and we plan to n

18 " revise, where necessary, any of those organizations, 19 .

including the ones that report to corporate in a matrix l

20 organizational setup.

21 I am going to come back to people and 22 organization in the area of operators and operations I

23 specifically. . Let me move on then to procedures.

24 .

There are many procedures at Peach Bottom which 25 4 are not clearly and crisply written and could be interpreted

! i I

I j

' ACE-FEDEPAL REPORTERS. INC.

E3r suo . Nationwide cmerare mo336*a6

A

-7250 04 04  : 38

- DAVbur 1  ; as guidance rather than specific direction.

2 The discipline necessary to take a required 3  ; procedural change or to write a new procedure and make it an 4 in-plant document in a reasonable period of time did not 5 i exist. There is therefore a large backlog of procedures 6 , awaiting typing and a' waiting distribution.

7 At Peach Bottom we routinely review our 8 procedures on a once every five-year basis. Ar. action we s

9l  !. ave recently taken has reduced the backlog and clear

(

10 j direction on handling future procedures and changes is being 11  ; written.

I 12 ,' We will move to a two year review cycle in the '

[

future. Many procedures are being written originally or 13 ] i 14 f reviewed and rewritten as part of an ongoing improvement i 15 i program. These include procedures in'the area of health J

16 [ physics, rad waste, maintenance, I&C, and trip procedures. l I

h 17 ' Many others are already scheduled for rewriting this summer 18 '

and fall.

19 l In addition to the programs which were ongoing,  ;

! l 20  !

all administrative procedures which direct operator' '

21

\

performance will be rewritten and proper training conducted  : ,

1 22 prior to our restart. Other administrative procedures will j  !

I 23 be upgraded as necessary after restart. '

I 24 l All general plant procedures are being evaluated l 25 l now, and many will be rewritten and proper training  ;

l l 1

4 i

i

/\CE FEDERAL REPORTERS, INC.

, 202 3 C 3T(Ki Nationwide Cmerage MKL)36-6M6 l l

I

7250 04 04 39 J

- DAVbur 1 conducted prior to restart. Other general plant procedures )

2 ,

will be rewritten and upgraded to higher standards af ter i

3 '

restart. i j . ,

4 i All system procedures will be upgraded over the ,

5 course of the next year and a half to two years. Other l

}

6  ! procedures not specifically mentioned are being reviewed to 7 de te rmine if there is a need for revision or upgrading prior 8 to or after restart.

9 In summary, the procedural area has been'a 10 problem area, but much action was underway and more action 11' is now being taken.

12 In the health physics area, I found many programs l'

ready to be implemented to upgrade a weak program. He will i 13[1 14 l be implementing total dose control and implement.ing major 15 needed revisions to the radiation work permit system within )

16 , a month.

17 We are now training health physics supervisors to l

18 provide badly needed on-shift health physics supervision. i 19 [! Other personnel changes in this area will follow.  !

l 20 I think you will see significant progress in the area of 21 health physics very soon.

l 22 ! In the radioactive waste area, I again found many  !

23 improvements projects underway. A senior engineer and a 24 dedicated rad waste organization had been recently  !

i  ! i 25 established. There may be a need for more personnel l j i l-l l

ACE FEDERA1. REPORTERS, INC. .

200 317-3700 Nationwide Coserage 800-33M/i.16 l 1

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. . i 7250 04 04 <

40 l l

- DAVbur 1 l

dedicated to this effort. We do have a large backlog of rad i i

r 2  ;

waste, and we need to expedite reduction and shipping or I l 1 3

storage of this waste. i

)

l 4 We are using an onsite supercompacter and an oil I l

5 rec.laiming system. We are shipping noncompactables to a 6 contractor who is expert in volume reduction. l l i 7 Within the past month, a dewatering system has I i 8 '

become operational, which is showing a marked improvement in )

i 9f volume reduction of demineralized resins, which make up ,, j f I l 10 [ about half of our rad waste. We have an Aztech system plan- ,!

Y 1

11 !i which will further reduce the resins. i j l

12 [L i

We have commenced using our low level rad waste I L . i storage building, and we are shipping wastes offsite,while v I 13 [ ~ ]

14 lj  !/6 l progress is being made in inventor reducing and handling '

15 [t the backlog y We know there is more to be done. , j 1

e . i 16 [ In addition to handling the backlog, we need more '

)

1 17 emphasis on reducing the generation of rad waste. Condenser 18 tube plugging and more sensitivity to leaks of river water ,

1 19  ! and leaks of oil will help us, as will continued plant i )

! l i'

20 decontamination and education.

l 21 Beyond these major areas -- j 22 (Slide.)  !

l N l 23 --j the other areas, I am particularly monitoring i 24 '

the ones listed on this slide.  !, ,

I '

25 There are many positive improvements going on in l e

! I ACE-FEDERAL REPORTERS, INC, 1

20:-34* ?W 6 Nationwide Coverape Mod 36 6646 l

E_______________

7250 04 04 .

41

- DAVbur 1 l the physical plant, but more is to be done.

Surface 2

i contamination is tco high for a boiling water reactor; Q( .. lv 3L probably 50 percent of the plant has some contanima(ion. ,

t v .

4 But we have rccaptured many areas and have an active ongoing T Q. C *t u n e d 5

program in fmtum$ capturegareas. b C

In conjunction with this decontamination, the 7 plant is being repainted. Again, it is about half done.

i 8 i i

The completed areas look good, and they are being kept 9 i clean.

i j 10 I '

A program for labeling of valves, pumps, and  ;

h' 11 piping is well underway but is not completed.

j 12 ,

In the maintenance area we need to complete the  !

13 Ij ongoing program to identify the preventive and corrective 14 :

i maintenance backlog and to analyze its size and its causes. i 15 g i'

We need better tracking of this maintenance backlog.

16 i Looking forward, we need better planning for -

17 I future maintenance and particularly for outages, so we can

{

18 [ reduce the length of down-time. Organizational changes will 2 E

19 I probably be necessary to strengthen this area.

I 20 In the area of nuclear security, we presently 21 have a soft area. Our contractor guard force has been on i 22 12-hour shifts for over two months, and they are a generally 23  !

demoralized force. The firing of two watch persons for 24 ,

sleeping has heightened their concern.

25 q Ue have sat down with the contractor's corporate

~

l L ACE-FEDERAL REPORTERS, INC. I

[ 20 3700 Nationwide coserage 800 336-6646 l

i 7 4 . ". j i

. i 7250 04 04 l 42 l

(

DAVbur 1 managers and are told that eight-hour shifts will be in .

l l

effect the day after tomorrow.

l 2 Their corporate management

]

1 3 l has recognized their previous lack of supervision, and they l l )

4 l have made improvements.

5 The Philadelphia Electric Company has also l

6 i increased its supervision of the security force. New X ray -

)

I 7 machines were installed this past weekend, and other 1

)

8 material improvements are coming soon. While this is ) l 94 presently a weak area, strong action is underway to bring it l 8 l 10 ,

back where it belongs. l l l l

l 11 (Slide.) l t

i l 12 ["

I will now go into some detail concerning the i

13 L operations organization and the operations personnel.

14 '

Shown on this slide is our present organization.

l l 15 g As Mr. Austin has said, there have been many replacements U l l 16 f out at the site. Shown in yellow, highlighted'in_ yellow, 1 1 L ,

1 i i -

17 - are those people who have either been replaced or who have i j H  : 4 18 " been informed that they will be replaced.  ;

19 The operations engineer was replaced shortly j J

20 after the shutdown.

21 I came on as the manager in early May, l

22 The superintendent of operations has been

' l 23 informed that he will be replaced by the former  !

! l 24 superintendent of plant services, Mr. Cotton, as soon as Mr. I 25 Cotton is able to fill his position because of licensing )

i ALCE. FEDERAL REPORTERS, }NC. l 20 .3 c 37(o Na:ionwide coverage Mn336-6M6 l

i . .

I i

7250 04 04 l 43 i

DAVbur 1 l requirements.. We are meeting with you to see how soon that ,

~

2 j can be done because of course it requires a technical

s? A u w.<

e 3 l specification check. '

i l

4 j The shift superintendents have been told they 5  ! will not be part of the restart and will be replaced.

6 , In the shift supervisor area, we operated with l'

7 two shift supervisors, one designated the inside shift 8 supervisor, which meant inside the inner control room area 9 l by the control panel, and the outside shift supervisor, i

10 which was meant to be outside of the control room, out i

11 '

supervising the operations and being where the action was, i

12 Unfortunately, we never fully manned these l 13 f positions. He never had enough senior licensed operators to i i

  • c.. ~. q ; . % i '.e%% > >

14 l fully man the two positions, and LL.o degenerated into a

  • l 15 paperwork administrator. He did not actually provide 16 [

supervision outside for the nonlicensed operators.  !

l' 1 17 C We operated with three reactor operators, one .n t

i 18 each of the units and one as.the chief operator handling the ,

i 19 common panels. This developed into a separate qualification i 20 i snd a subunion among the reactor operators.

I 21 .

We attempted to maintain sir shifts with 22 '

inadequate numbers of people. This degenerated into 23  !

excessive overtime and a feeling among the operators that 24 there was no way from the time they started as a helper I

25 until they ended up as a shift superintendent that they  !

1 I

l

/\CE FEDERAL REPORTERS, INC.

l '00 3C-3700 Nationwide Coserage 800 336W46 l

7250 04 04 l 44

- DAVbur l'I would ever get off shift rotation.

2 We think there are significant weaknesses in this l

/' i 3 organization. We are considering significant changes, and I i 4 will discuss those plans with you this afternoon.

5[ Ue need final Philadelphia Electric Company 6 approval of the changes that I am going to talk about, and 7 of course they must be. submitted as a technical 8 , specification change for NRC approval. I think the elements l l

l 9 ji that are proper are in place, but I do recognize this is not l  !!

10 g a final organizational plan. .

I 11 As I leave this chart, I want to point out the l 12 ; senior chemist and the engineer technical also report to the H

'j 13 I superintendent of operations.  !

h

{ '

14 " (Slide.)

15 This is an overall chart of the proposed i 16 operations organization, and I show you that the senior l t i 17 l chemist and engineer technical have been taken from the last I  !

[

18 h chart and appear here. That is unchanged. ,

i I

19 f I am going to blow up parts of this chart, and I i

20 i will come back to the overall.

21 (Slide.)

22 , This is the shift organization. The l

23 superintendent of operations will have an assistant I,  !

l 24 superintendent of operations working for him. The '

25 performance of operations out at Peach Bottom is so  !

i i

l ACE.FEDI SAL REPORTERS, INC.

l

, 20:-3c3700 Nationwide coverage 8cn336-oM6  ;

7250 04 04  ! 45 DAVbur 1  ! important that we feel it needs more than one person l

2 l dedicated to that task. The superintendent of operations .

I 3 and the assistant superintendent of operations will assure '

i (a ,

4 us that one of them is always I; always'available to the v' '

5 shift organization.

i 6 i But the major change that we are making is the 1

7 assignment of shift managers, shift managers who are 6

l experienced and senior licensed operators who have I

9 l significant experience at Peach Bottom. They will come on  ;

10 shift, as Mr. Austin has said, for a three or four-year  ;

4

'3 r. ws 11 +

period w-ith other assignments.at Peach Bottom or within v' 12 Philadelphia Electric Company, remain on shift, as I say, '

ll 13 L that three or four-year period, and then go off. So they

\

14 l are not dependent upon the hierarchy of the shift 15 organization for their position in the company.

16 They will report direct]y to the superintendent l

F 17 of operations. So there will be no question that in the i

18 , absence of the superintendent of operations and the station '

l 19 , manager they are the embodiment of management, they are  !;

1 20 fully in charge.

{

l 21 i We are showing on this organizational chart HP j ll l

22 supervision, chemistry, maintenance, security, et cetera, to j

i 23 educate all of our people at the site as well as the shift j i

24 managers that they are truly in charge. They are 25 responsible for these functions, particularly on the l i

/4CE. FEDERAL REPORTERS, INC.

Occ.34 3700 Natiormide Cmerage Mn3364M6 t

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V 7250 04 04 .

46 I

DAVbur 1 weekends and on the back shifts.

l 2 l MR. MURLEY: Dick, I have to interrupt. There is ,

3 a gray box up there that I can't read.

i 4l MR. SMITH: This is modern graphics, Dr. Murley. j i

5 The gray is the ful'1 chart. The light colors are the same 6 things brought up and exploded large so that you can see ,

\

7 them clearly. l

]

8 MR. MURLEY: Right. But what is that gray box 9 I between the shift manager?

I  !

10 l MR. SMITH: This is clerk, that is clerk. This 11 is shift manager, that is shift manager. It is blown up. j h 12 It is an overlay. If we took off the blue, all the gray is i i 13 l the previous chart. I i

l 14 MR. MURLEY: Okay, so the shift manager does l 15 gl report directly to the operations superintendent?

l 16 MR. SMITH: Directly. This is the same box. l l 17 My graphic artist assured us this would make it l 18  ;

much clearer. l i

19 f (Laughter.) i 20  ; MR. TAYLOR: We need a third dimension.

I 21  ! MR. SMITH: Is it clear now, Dr. Murley?

i 22 l MR. MURLEY: Yes.

I 23 i MR. SMITH: Okay.

I I

24 (

We have shown four foreman to provide the

_ 25 necessary supervision to the nonlicensed operators. We are l ACEJFEDERAL REPORTERS, INC. .

202 34 .3*00 Nationwide Coverage 8(433t -6M6 l

\

l l .

7250 04 04 l 47

~ DEVbur 1 , looking for someone that will be out worrying about their 2  ;

watch-standing ability, their attentiveness to duty, their I! t 3 ll training, their health and welfare, It[chovertherest \

4

\

of these people andr-ey weaud bout their overtime schedules,  ;

,e their vacation schedules, et cetera, provide the missing

  • 6 supervision.

7 i Ahis organization shows two shift supervisors,

,,a' k...,

l 8

l both senioicensed qualified of course. One would be the b 9 lead, one would be the assistant. We would not have an h! t ,,

10 l inside and ttre outside. You would have two shift v

L. u a N r. c q c m f., c., c L t il , U 4 11 s upe rv i sor s pe r r c q u i ame-n.ts . One would remain in the L f

12 c control room area, but the other would be free to go to 13 jj where the action is to observe what is going on in the rest I li 14  !

y of the plant.

.i 5 p .

We show here a reactor operator on Unit 2 and one n 7 e one v .. i r , s >. s .

15 on Unit 3, and reactors operators -- in additio e we+PJ

[ _

l ~s [ eventually wou-ld' have four reactor operators. As we will v i li i

18 see in a momentfwhen we come back upj,we only have enough v l 19  ; people to have three reactor operators.

20 I But these gentlemen will be equally qualified and 21 able to shift from position to position. So we will get rid 22 -

of the subunions.

l 23 j I

l 24 25 l  !

l l l

I I i

ACE-FEDERAL REPORTERS. INC.  !

200-3 C 3700 Nanonwide Coterap MKL33(-6M6 l

7250 05 05 48' -

i DAV/bc 1 l Finally, on this chart, we show the shift i

2 ftechnicaladviserreportingtotheshiftmanager.

3 Previously, he received his work assignments from the

! l 4 i operations engineer, and it was not clear as to what his '

5 I duties were and what his responsibilities were to the shift 6 superintendent. .

I 7 . That should clarify that.  !

l l l

8 MR. MURLEY: Could you point out the people who  !

l 9 are licensed on that chart and the degree of license they 10 hold?

11 MR. SMITH: Yes, sir. Reactor operator license 12 or higher. Senior licensed operator. i 13  ; MR. MURLEY: Both the assistant shift?  !

I i 14 MR. SMITH: Yes, sir, equally qualitied. Senior

!?M~ '

15 licensed operator. Could be license not required. Reactor ,

16 operator, not senior. Could be, but not required.

17 i MR. EVERETT: And the professional people, the 18 degrees? ,

l  !

19  ! MR. SMITH: These, of course, would not only be l l 1 20 ,

licensed but degreed engineers and there would be a license  ;

21 in these two positions, a senior license.

j I l 22 i Go back one more, Bob. i 23 (Slide.)

24 , MR. SMITH: Doctor, our technical specifications l

l

' l 25 require the engineer technical to be senior licensed also.  !

I l

^

1 l ACE. FEDERAL REPORTERS. INC.

202-34L3700 Nationwide Coverage 800-336 6646 l I

i i

i -

72'50 05 03 49 DAV/bc 1 (Slide.)

l I

2 This is the daytime organization to support the 3 shift. Again, this is the superintendent operations, the i

4 same, blown up. We've established a new position of senior l l

5 engineer operations support.

6 The purpose of this side of the organization is 7 to try to take some of the administrative work away from the 1

8 I shifts to get the shift people worrying about the operation 9 ' of the plant, and not writing the paperwork.

l 10 i The operations engineer support will have a d/)8 t 11 technical staff reporting to shes and will have the ( l 12 operations support superintendent, another new position.

o 13 i: This superintendent will be senior license L i i

14 5 qualified, will be an experienced operator either at the 15 superintendent level or the shift supervisor level, who has f

16 [ an exemplary record of performance, and who has long i i 17 ! experience and can be looked up to by the other operators. I 18 He will work in close conjunction with the shift  ;

managers and he will provide guidance to the supervisors.

19  !

20 f He will worry about the administrative things for the  !

21 supervisors, such.as their vacation schedules, overtime 22 schedules, training, and he will be very much and very 23 heavily involved in work planning to try to provide work 24 schedules to t'he shifts.

l l

25 Assisting him will be a blocking group. This i'

i i ACE. FEDERAL REPORTERS, INC. -l 20:4 r-3%O Nationwide Ccnerage S(0436-6M6 l

u ,

l l .

7250 05 05  ; 50 DAV/bc 1 would be a senior licensed position, and I'll mention that i ,

i 2 I in just a moment again, and he will have a staff working  !

l l 3 with him to help work on work permits and the red tags in l 4 order to get work done. I 5 , And, finally, I show on this chart the utility

! i

~

6  !

shift operators reporting to the operations support l

7 .

superintendent, and the utility shift manager reporting to i 8 the senior engineer.

9 Presently, we have a utility shift on day shift f l 10  ! five days a week and it doesn't have clear and definite l

11 reporting responsibilities and tasks. ,

i 12  ! Let me go forward to the next one. ,

13 (Slide.)  !

14 l This is the overall chart then. Putting it back I

15 l together, I'd like to discuss w. bat we see as the advantages i

16 ! to this organization.

17 First off, as mentioned, the one over one i

18 superintendent operations and assistant superintendent 1

19 operations is to demonstrate the importance that we put on l

t 20 operations at Peach Bottom. The major change is going to 21 shift managers, and this will be a major cultural change at  !

i 22 i Peach Bottom.

i

! w Ja ,; n ' . . I 1 23  !

We have ershift supervision by putting two'

! l  ;

i a 24 j equally-qualified shift supervisors en and trying not to l i

j 25 burden era c' them with administrative work. j U

, i

! l 5

/LCE. FEDERAL REPORTERS, INC, I l 202 3C3700 Nanonwide Coverare 800 336-6646 l I

n 7250 05 05 l 51 .

DAV/bc 1 l We've put on a fourth reactor operator to allow 2 more presence in the room. We've added a section for l )

I 1 3 ,

administrative support to try to reduce the burdens on the  ;

i 4 l operating shifts. We've added floor supervision and not i

5 , obvious from this chart, this position is the opportunity  ;

I i 6 ,

for these people to see a way off shift. This position )

1 7 ,

would be a senior license and would be filled for a period

}

8 of two or three months by one of the shift supervisors, who 9 would then return to shift duty.

10  ! It would give them a short break away from shift 11 operations. These writers would be qualified reactor 1

l' 12 operators wh would come off, again, for two to three i  !

[c '

, i 13 months, and then',back on shift.

l i l

14 ,

This position of electrical supervisor would be a j i

15 l shift supervisor, an SLO license. It would be a day work

1 16 s position off shift. There would be other positions in other l l

17 parts of the organizations -- not operations, but other  ; l h  ! '

18 [ i parts o'f the organization -- for shift supervisors to move  !

19 to for periods of one to three years.  !

i 20 f And then come back on shift as the shift l i

21 , supervisors. This position would be a promotion position 22 '

off shift work, permanent day work. And there would be 23 positions like this in other parts of the organization. So 24 i that the super'b shift supervisor would look forward to the 25 opportunity to not only get off shift work permanently, but j i

l i i

i t ,

I ACE-FEDERAL REPORTERS,1NC.

200 3 C-3AX6 Nationwide Ceterage 800 336-6646

L 725'O 05 05 52 l

l DAV/bc 1 to do so with a promotion.

l i

2 We feel that the assignment of two shift 2 l

3 supervisors plus a shift manager, which is one beyond the

{

l 4 , technical specification requirements, and four reactors, 5 will allow us sufficient flexibility to get proper control l 1

i s 6 i of overtime. i l I 7 MR. MURLEY: Could I expand on that point just to l ]

8 I make sure I understand it?

l l

9 Let's say a young person coming in and being I

10 trained can see his pathway up off of shift work if he l

11 wants, and on into management if he wants to get a degree,

! I' 1

12 or has a degree.

c i 13 i MR. SMITH: That's correct. Yes, sir. ,

14 l MR. MURLEY: There's no reason he couldn't be the 15 fpresidentofthecompany. He's not dead-ended, in other 16 words?

17 MR. SMITH: It's one of my hopes, Doctor, that l 18 l l

sometime while I'm working for Philadelphia Electric j i

19 , Company, one of these people -- and I don't know where he is 20 l now, and hopefully, more than one, but at least one of these 1 1

1 21 l people -- ends up.here. l l l 1

22  ! It 's not going to be easy f or him, but it's not I 23 l crossed off forever. This is a management position and 24 there will be positions in outage planning and other places l 25 where the talents of superior performers can be used. There l

l ACE-FEDERAL REPORTERS, INC.  ;

'02-347-3700 Nationwide Coserage 800-336-6646 l l

l i . ,

7250 05 05 f 53 i

~

DAV/bc 1 t will be an opportunity.

2 Now I've talked about the organization, not about 3 I want to talk to you about how we're going to fill

!. people.

L 4 these positions because it's not going to be easy.

5 The superintendent of operations, the assistant l

i 6 superintendent of operationse the operations support a

7 engineer, we can handle with the people that are available 8 4 to us.

l 9 The operations support superintendent is a key 10 ,.

position in this organization. And, frankly, I don ' t think I

11 we have anybody at Peach Bottom that is the quality person 12 to fill this position.

l 13 [ So we will advertise that job and seek someone h

14 1 from the outside to come in. Someone who would not have a 15 Peach Bottom license, but would have a senior license on a li

  • 16 boiling water reactor.

i-17 I The obvious source of that would be the Limerick  !

18 , plant. But if that's not successful, we'll look elsewhere.  ;

19 l We need the right person in that position. l 20 l The blocking group. The blocking coordinator, we 21 would like to have a senior licensed operator and would ,.

22 l like to have some writers to work for him; to help us with 23 l

this difficult problem we have with taking equipment out of 24 service for maintenance. We'd like these to be reactor  !

25 l operators.

l l

ACEJFEDERAL REPORTERS, INC. i 20
3 3 3700 Nanonwide Coverage 800 336-6M6  !

l , .

7250 05 05 54 l

DAv/bc 1 l We don't have enough of our own. We've I

2 ' asked...we will talk to Limerick about the possibility of I ll l 3 [ having loans from them. We 'll go to our co-owners to see if I 4 the re 's 6 possibility to get a loan of reactor operators for i l

5 those functions for the near-term. ,

1 6 We will, however...those would only be on a I

7 short-term basis until we can grow our own. l

L 8  ! The four floor foremen position, which we need 1 I

i 9  ! and would like very much to have, would logically come from 1

l 10 '! our own plant operators. Our immediate need is for more.

11 reactor operators and we're going to start training reactor j 12 operators to such an extent out of these ranks, that we do l

13 not have enough people to man this floc.r position for about .

l l 14 another year.

15 Because we feel the primary need is to get more 16 , reactor operators. '

l 17 The shift technical advisers jof course had a

v 18 shift technical adviser on each shift before'the shutdown. l 19  ! u

. Four will continue as shift technical advisers. One n. 4 5 \. l.

1 l 20 i replaced routinely before the shutdown and one has been I i

21 .

replaced. .s eJ. "

22 i The shift managers will be selected from a group 23 of 12 qualified engineers at Peach Bottom. They will be 24 selected based on their past performance, based-on their own 25 personal desires, based on psychological interviews which I

l -

l

,J J ACE. FEDERAL REPORTERS, INC.

202-3 3 3700 Nationwide Cmerage

{ {

f00-336-6M6 (. l

E l

j = ,

7250 05 05 55

- DAV/bc 1 l will be conducted with them, and based on my extensive t

2 I

interviews'with them.

I 3

{ This is in progress. 'I expect to make the 4 selection of the shift managers in the next three to four i

5 weeks, the sooner the better.

6 The shift supervisors will come from those senior 7  ! licensed operators at Peach Bottom that have been retrained t

8 i bef ore powe r operations.

9

! We 'have nine senior licensed operators as the 10 population, plus we have three reactor operators in training , ,

11 for upgrade to senior license who are scheduled to take the  ; ,

I 12  !

NRC examination in October. '

i ,

i l

13  : Thus, our maximum population of shift supervisors  !

j

! i 14 l 1s 12 if we don't lose any more. All of those will be i

15

} retrained in a training program I will discuss in a moment, 16 before we go to power operation.

I l 17 Reactor operators. We have 15 reactor operators  !

{

l 18 ready for retraining. We have four nonlicensed operators

}

j 19  ! presently in our reactor operator training course, taking i 20 the exam this fall. That number then gives us a maximum of 1

j l

21 19 reactor operators, and we do wish to stay on six shifts i 22 and have three reactor operators per shift.

23 i We need a minimum of 18, so we are right at the l I

i 24 line. We arer therefore, talking to the General Electric l 25 Company about the possibility of contracting for four er I

i l ACE-FEDERAL REPORTERS, INC,

[l 200-347-3700 Nauonwide Coserage 8(G336 6646

{

l 1

1

i. . .

~

7250 05 05  ! 56 1

l DAV/bc 1 l five of the five limited licenses that have been at Peach  ;

l 2 ,

Bottom working with us to come on board as contractors until l 1 3 l -we can train our own people.

l

~. ,

i 4

  • We are discussig with the region the possibility u 5 of their being afforded a license examination late this 6 l fall.

l 7 All reactor operators that have been operating at 8 Peach Bottom will be retrained before we go back to power 9 operations.

10 We are commencing a training class from among 11 / these ranks for 17 candidates, and that training course will il '

12 4 commence in August.

13 '

We have screened those candidates for success.

i 14 i We've given them aptitude tests. We've talked to the 15 loperationspeopleabout their performance and.we've talked l

16 to our own instructor staff about their capability to pass F

17 such a course, ,

t 18 We expect a high degree of success out of that  !

i 19  ! group of operator trainees. We have just within the last j l l 20 week hired 15 new helpers who are all ex-Navy experienced 21 petty officers. They start coming on board next Monday.

i 22  ! That's where we intend to get the people.

23 i But we're going to go through a training program l

l 24 j which I've talked about. We have designed a training I

25 j program to rehabilitate those licensed operators that we d

ACE. FEDERAL REPORTERS, lNC.

[ 02-3 3 3XKI Nationwide Coserage Wh336-6646

. . . . l 72'50 05 05 57 DAV/bc 1 plan to use for the return to power operations.

2  ! This training program is called People, the i

3 .

Foundation of Excellence. The program was designed by our 4 i nuclear trair.ing department with consultant assistance and l

5 is being conducted by our own instructors, by consultants l

6 i and by guest lecturers.

7 l This is not a technical course. It is designed i

8  ! to yield dedicated operators who will diligently meet their 9 responsibilities with enthusiasim and teamwork.

I 10 Candidates for this training have been 11 I selected...

I i 12  ; (Slide.) l' l l

I 13 ... based on the items shown on this chart.

I 14 My own personal interviews with each and every 15 i oneofthem,hhenI initially interviewed them, I came away ,

p l 16 with two large question marks. One, a senior license holder l'

17 !: and one a junior license holder. j l i

18 l I continued observation of all of the operators i I

19 and this, of course, is still going on. The two that I was l

20 worried about in their initial interviews have eliminated 21 ,

themselves. One has left the company; the other has said 22  ! that he does not desire to go through retraining and be part i

23 of the operating crew when we start up.

24 l Additionally, we have one supervisor who has i

25 medical problems, and he will be eliminated from the program '

l I

! ALCEd7EDERAL REPORTERS, INC.  !

I y 200-347 3700 Nationwide Ccierage 800 336 6M6  :

i . .

j . .

7250 05 05' l 58 i

. DAV/bc 1  ! and will not be used.

2 He is not presently being used and will not be i

3 used. When the Philadelphia Electric Company made the -

4  ! decision on accountability concerning the shift '

l 5  !

superintendent's, it of course dropped those superintendents 1 6  ! from further consideration.

r 7  ! When we reviewed the results of our own company 8 investigation, there vas one shift technical adviser whose 9 performance stood out as particularly unacceptable, and he 10 has been eliminated.

11 l We are conducting psychological interviews of all 12 ,

of the candidates for this retraining.of the class that is a  ;

~

M.L  !

13 h(.in session now, 4heAA-have bee:n evaluated by the C l l

14 psychologists. And the psychologists have said very 15 positive things about them. They are all positively

(

16 i endorsed by the psychologist $.

I l

17 l Finally, they must be volunteers. To be a f

18 volunteer, they have to accept the discipline that we've 19 l discussed previously and agreed to sign a new code of l 20 l behavior which is entitled A Commitment to Excellence.

21  ! In my interviews, I have found the operators I

22 l ready to meet any standards set by management. They are as l t. w. .

\

23  ; a group perhaps somewhat resentful, but they see themoelves . l i

24  : taking the rap' for what they perceive as poor management, )

! .. i 25 which seems to condone unacceptable behavior. I ACE FEDERAL REPORTERS, INC.

202 347 3700 Nationwide Coserase - 800-336 6646 i

f l7230 05.05 I i

59 DAV/bc 1 l But they recognize that their performance did not

~

2 ' match the high standard expected of licensed operators.

3 They want to achieve excellence. They are active  !

l l 4 i participants in the training program, and have expressed j

5 ,

regret that they did not have such training previously.

6 The length of this training that I've discussed 7 is shown on this slide.

8 , (Slide.)

l 9 i For the licensed operators and tne shift ,

! l

  • i, 10 technical advisers, it is the six-week course, Sw- have to -

11 conduct this course at three separate times. We have half i 12 , the operators in training at this time and that will ,

[ .x - , , t. m r : '

l 13 L complete,, Essentially, we'll start the other half on the t..

I h i l 14 h' 17th of August, but once that course is over, we'll have to ,

l l 15 f come back again with the four reactor operator candidates j l i b

16 and the three senior licensed operator candidates who are i

)

17 lj presently studying for their NRC licenses. l 18 Because, as we've said before, no one will go to l I

19 ,

power optrations as an operator that has not completed this l 20 course. So, we will have to go through it a third time  ;

! 1 t .

21 , later this fall.  ;

22 The shift managert will be pulled off shift. j

! j l

23 '

They're now serving as shift supervisors. And, in two j i

i l 24 l cases, as reactor operators. They'll be pulled off shift l l

I l 25 once these first two training cycles are completed and we l

l  !  :

! l, i  !

ACEJFEDERAL REPORTERS, INC.  !

[ 202 3c 3700 Nationwide coserage 800-336-6646 l' 1

__________________m____ _ , _

.7250 06 06 60 '

)

DAV/bc 1 ,

have a . .t1 staffing back on.

I I 8 I 2 j They'll be pulled off shift for some specific  !

I l 3 training as managers. Not technicapmanagerialtraining. L {

]

4 That will probably be three weeks. That has not been fully l 5 defined as yet. j i

I 6 We realize that we need to go beyond the licensed 7 operators. We need to train the nonlicensed operators and i

(

8 the others that relate with the operating crews. And we 9 need to train everybody out at Peach Bottom.

l 10 j I've listed some lengths of time there. That's i  !

i 11 l

i rny estimatedhose courses are being designed. But there , j 12 [ will be some training for everybody before we go back to j i 13 ll power operation.

i i 14 i And as Mr. Austin said, once our team is '

i 15 established, our shifts retrained and established, we've got 16 i to do some vertical training. We've got to train some l

l 17 teams. We'll use a simulator at Limerick and run through l

18 plant scenarios to make sure they have adequate training.

l 19 l And we will observe them during the test programs that will l

20 l be required for restart.

l 21 i All the training, again, all the training will be 22 l completed prior to our considering any operator qualified 23 l for power operation.

24 (Slide.) i 25  ! In summary, I've spent the 10 weeks at the l I

I ACE. FEDERAL REPORTERS, INC.

I 20:.w -3700 Nationwide coverare . 800 336-6646 j

250 06 06 61 l

DAV/bc 1 plant . . . I 'm sorry, that's the wrong one. Flip to the next i

2 one.

i 3 i In summary, I am looking at all areas out at i

4 Peach Bottom, and I'm looking at all of the personnel, not 5 just operations and operators, although that's what I have 6  ! highlighted here.

7  ! There is a big job to be done before we will be 8 I able to tell the NRC that we are ready for power operation, 9 but that job is do-able.

10 l We know the extent of the problem and we are 11 ' working on all aspects of it. Good progress is being made.

12 ,

I am receiving enthusiastic corporate support, 13 L and I have direct access to the president of the company. I h  !

14 The licensed operators in particular and other site l

15 personnel have positive attitudes and have the desire to l.

16 achieve excellence.  !

17 .

When the Philadelphia Electric Company asks  !

18 permission to restart, I will be fully satisfied that we are I l 19 ready and I will stand behind that request. i J

20 Now, I turn it over to Mr. Kemper.

21 l MR. KEMPER: I don't know whether we're in the 22 ' fourth quarter getting ready to go into the third quarter, l

23 i to the fourth quarter, or we're in the seventh inning. But I

24 ,

I'm also interested in human factors. And if you don't all l 25 stand up, I might leave.

I ACE FEDERAL REPORTERS, INC.

l, x .34:.3:oo sationwide cenerage an.336.ous

o I .

y l

.j 0 -

j

  • 7250 06 06  ; 62 DAV/bc 1 So, if it's all right, I'd like to go off the i

2 record for just about five minutes for everybody to stretch, 3 ,

I know I'm pleased to stand up and maybe everybody else. ,

i 4 I Don't leave the room...

l 5 (Laughter.)

l i

6 (Recess.)

7 MR. KEMPER: You've heard from Lee Everett, John 8 Austin and Dick Smith about our Commitment to Excellence i l '

9 l Program. Dick has gone into some detail about the

! )

10 operational plans for recovery, and of course they're part  !  !

l l

11  ! of that commitment to excellence.

I i 12 l I will cover the other areas of concern that have i

.l  !

13 ,

been referred to.

14 (Slide.)

J i

15 l No stone has really been left unturned. We've I 16 looked everywhere. The Commitment to Excellence . Program has I

17 '

looked across the board. We've looked at operations, as ,  ;

> 4 18 q Dick has pointed out, and covered. i l 19 We've talked about quality assurance, rad j 20 protection, rad waste, our facilities, communications and 21  ; security.

22 l John Austin has led the development of this 23 I commitment to excellence program. He's been intimately I

f 24 l involved in its day to day. And we spent the last three k l lI .

l 25 ] months developing this commitment to excellence program.

l

~

l ACE FEDERAL REPORTERS, INC. '

[. x.m3:m sanonssiee coserne sm.n6mc  !

7250 06 06 63 l

DAV/bc 1 i We have now over 800 tasks for our recovery plan.

2 But what about the root causes in the other aress?

i I l I 3 (Slide.) .

t i

l 4 '

Why? What was the cause? I believe John Austin' '

! ,.'e 5 covered 90 percent of it with you. And if look at the I

6 l other areas, we'll find that the root causes that we have i

7  ! developed for our operation reflect and go across all of the i

8 areas of concern.

9 Let me just review again a little bit with you.

10 , At Peach Bottom I, we had the HTGR with its experience and 11 background in that time period. We had the boiling water 12 reactor on Peach Bottom II and III that both went commercial .

i 13 in 1974, in July and December of that year.  !

I 14 , We had high availability excellent operations. '

15 Then came TMI. And we came into a change and into a Y '

16 ,' transition. And we 're also building Limerick .  !

i 17 What happened when we were seeing these changes 18 coming, when we would talk to the site, every time we would 19 review the problem with the site because of their being l 20 priority -- or however you want to look at it -- I'll call -

i 21  ; it the paratrooper approach.

22 They always underestimated the number of people

'i ' t.. V '

23 they felt was going to be required to do,as we moved into 24 the future. And we were always underestimating the number j 25 and size of the facilities. No matter when we looked at it.  !

1

\

3 I

j ACEJFEDERAL REPORTERS, INC.

200 3C-WO Nationwide Coserage Wi 336-6616 l

_ _ - - - - - _ - _ __ _ _ . I

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DAV/bc 1  ; Whenever we reviewed it.

I' 2 It was a moving target. Each time we looked I h

l 3 ahead, we thought we'd reached a new level and it would l 1

t 4 plateau. However, when we got to the new level, the new l

5 level was already higner than the target when we reached l

6  ! there. And it truly was a belated recognition by corporate  ;

h 7 p, management of the signals that we were receiving from the 8 8 site. i l

9 l So, across the board, th3se were the basic root i

10  ; cause problems. What about our commitment to excellence? {

i 11 (Slide.)

12 We've broken it down into six major areas: l 13 Organization, staffing an' itructure -- Dick 34 l Smith has certainly gone over with you what we plan to do l

15 l and what our program is, and we will submit this in detail 16 ,-

to you in the first week in August.  ;

I I 17 p i One of the other things that we've done, of  ;

18 . course, is not only looked at operations, but we've relooked 19 at health physics, rad waste and quality assurance. I'll l

20 get into that a little oit more in detail as I go along i 21 through my presentation.

l 22 i We've looked at organization leadership and 23 l management. We 've got to clarify the responsibilities and l l

24 relationships'between the site organizations and corporate, l i

25 then we've got to document it.

ALCE. FEDERAL REPORTERS, INC, 20.N 34"-3 *00 Nadonuide Coserate MG336-6616

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l 1 l . .

P.250 06 06 l 65 i

DAV/bc 1 We have to get it down in wrfting as to what 2 those responsibilities are and how we should be working with 3 i one another between site to site and corporate to site.

F 4 i

"*'ve got to improve communications. I'll get l

5 into that and I'll review that with you a little bit later. l 6  ! The site management's got to be involved in the 7 l day to day operation and Dick Smith has sure been doing 8 i that. He pointed out his plans and programs and I'll go

! l 9  ! into a little bit more of that later. I i

10 l We must review and improve our personnel policies l' l 11 and practices. We're well into that. And we have a good i l

12 program in that area. I c

13 !: Most importantly of a.11, we've got to improve our I

14 supervisory skills because, aa we see these people coming up i

15 l through the operating ranks and through the engineering i \

16 ; ranks, we just can't be looking at their technical I i

17 ,

capabilities; we've got to be looking to see that they have j

, 1 18 i that extra ability to be a good supervisor.

19 f That's going to be part of our planning program.

20 j Dick has gone through with you our plant procedures. But i

21 '

not only are we looking at the plant procedures with respect 1

22 to operations, but we 're also ' Soking across the board.

23 We're also going to develop and we have been developing in 24 working with you an integrated living schedule.

25 f Part of that planning and looking ahead, we will l

i l

! / ICE. FEDERAL REPORTERS, INC.

202 34~ 3HO Nationwide Covera;te 800-336-6646 ,

l l I i . . t 7250 06 06  ! 66

  • l i

I i

DAV/bc 1 and we have that program well underway and we're working on l

2 > that in the near future. We will have a complete integrated l 3 living schedule. We're looking at ou'; programs with respect 41 to how we do our surveillance testing.

5 i We were doing most of our surveillance testing at 6 Peach Bottom on day shift. We're goina to see now that 'that s l l

l 7 surveillance testing goes on around the clock. I j

8 Our quality assurance programs, (we 're looking at-9 our preventative maintenance programs, our health physics  !

i 10 g programs and our rad waste -- across the board. We're not

! i

? 1 11 1 only looking at the procedures, but the program and the work l

12 , management systems associated with them. l 1  !

13  ! Plant facilities and systems, I'll get into that  ; i 14 i in detail in just a minute.

15 External relations. Very, very important area, 16 and an area where we really dropped our guard. And that's

. ., . ~ -

17 oru relationships with the r-egulatory, be it the NRC, the 18 ' authorized nuclear inspector, INPO, the Public Utility .

I 1 I 19 1 Commission, the Department of Environmental Resources and l

' \ c' . s t h i i .

20 the EPA. They are the major regulatories that we deal with.'

I 21 And an. attitude was being developed at Peach ,

22 Bottom that was entirely unacceptable.

23 Then review and integration of the commitments.

l 24 And the ongoing programs. You've heard reference to that by 25 the other speakers. But let me just personally say that I 4

! t

ACE FEDERAL REPORTERS, INC.

200 W 3700 Nationwide Coserage M10 3k6646

o 7250 06 06 67  ;

I DAV/bc 1 have been involved in the enhancement program, and that the 2 ,

Peach Bottom enhancement program is well underway. It's l 3 j going alcng. ,

l 4 l And as of the 1st of July, we are to the point i

5 i now where we have 75 percent of our targets and programs and i

6 tasks identified and compelted on schedule. We're right on .;

J 7 schedule in that enhancement program. '

8 I know Dr. Murley was involved in some of the l l

9 earlier programs when he was at Re gion I. We continue to I l

I 10 have those meetings, that commitment, and that program is 11 well underway.

l I

12 ( Our Peach Bottom improvement program, that is

i 13 .! being incorporated. The tasks that were underway in that l 1 l 14 are being incorporated in our Commitment To Excellence i I

1 15 Program.  !

i 16 ,

We're also looking and going back again, as has ,

l l .a 'i l \

17 i been pointed out by the other speakers, that our outstanding 18 Nuclear Regulatory Commission's requirements and 19 commitments; we're also looking at what we've done in our j 20 past with INPC with respect to their investigations.

21 l (Slide.)

l '

22 l How are we breaking down?

23 You've heard John Austin talk about priority ones 24 i or category ones. Category ones are the ones that we're i

25 going to have all finished, completed and documented. They l

l j ACE-FEDERAL REPORTERS, INC. I 202 3.:7 3700 Nationwide Coserage MO-336 6M6

7250 06 06 4 68

  • i lDAV/bc 1 i

will be done before we go back to power operation with unit i

2 two.

~

l 3 Ecr category two, activities are ones which we i I

4 '

will plan, program and have started and have an ending, have '

{

5 a schedule, have a commitment, or a schedule and commitment 6 i on category two. Category three will be defined. We ' ll 7 i i

have it outlined and be scheduled as to where we're going, l 8

l but we won't be into the details necessary on these long-9 term commitments. But they're there and we will do them.

10 It's the specificity with respect to when we will l

11 be absolutely finished.

12 Where are we?

i 13 I'll get into some more of the details on that.  !

14 '

But how do they break down?

15 There's about 200 tasks associated with category 16 one, about 400 with category two, and about 200 with ,

L 17 L category three. l l

18 ,

(Slide.) j i

19 Process step. This has not been an informal, l l 20 easy going, careless development. It's been a very careful, 1

i 21 i detailed development by people that have been dedicated to 22 doing this and doing this alone.

23 As I said, we had about 70 people who have been 24 assigned to this task fulltime. They've left their i

25 assignment. We've taken key principal people throughout the i

~

l0 t

/\CE-FEDERAL REPORTERS, INC. l 202-3 0 3700 Nanonwide Coserage 500 336-6M6 l

I

. '. 4 k

7250 06 06 69 i

_ , .DAV/bc 1 Philadelphia Electric organization, supplemented with i I

2 outside help, to stay right on top of this. They come I 3 across the board from our engineering, from nuclear 4 operations, and have been dedicated to developing this.

5 , It hasn't been a management down program, it's i

6 l been a bottom up program. We've gone out and talked to i

i 7 every man at Peach Bottom: j 8 If you were in our position, what tasks? What 1 1

9 has to be finished? What should be done? What should be l

10 incorporated in this program to make 1%dch Bottom the best I i i

11 l plant in the country? t l l l c '. .: ^ a i>

12  ;

We've done that. We've eoelated that. We've ,

i i

13

  • gone through that. And that's the task identification. And l I 14 l we're to the point now where we're in the high 90's,95-100 l

15 percent finished on this.

16 Ij Task planning. You know, we just don't talk 17 i; about it. How are we going to accomplish that? Whose going i b

l 18 1 to be responsible for it? And not who, but whom? The -

1 19 {specificperson. It's your job. It's your responsibility

{

l 20 i to get it done. It's your fanny if it isn ' t finished. We ' re 21 i getting it specifically assigned.

I 22 l How does that task impact what you're doing

,  ?

23  ! across the board? If you do this, how do we schedule it?

l 24 j How do we get'it done? How do we integrate it?

25 Right now, we're reviewing. We're going right I

l

ACE. FEDERAL REPORTERS, lNC.

200.14~ !d00 Nationwide Coserage 80 N M 6646 ,

.l l7250 06 06

, 70

}

DAV/bc 1 i down and we're down to about here on the category one 1

2 programs. We know where we are. They've been reviewed. .

l 4

l I 3 They've been with the management and they've been approved, I l i

4 all the category ones. i

{

5 j Action plan implementation. Some of them, as you i

6 1 l

note from Dick Smith's presentation, are already underway.

, 4 l 7 i And I'll get into some of the other things that we've l I l 8 already done. 1 I

9 In addition to this, we're not just talking about l 1

(

10 l it, it's going to be followed and tracked and there's going l l

11 l to be a monitoring program and a closecut and a verification i

12 ) of this.

We have unlimited resources on this. We aren't l l l i.

l 13 C cutting any corners. We're doing everything we can to get ,

l 1

14 the best program that we have to go through, to follow 1

i 15  ! through and get this done.

i 16 ,

And then, above all this, this is a quality 17 program and it's going to be monitored, documented, 18 controlled and reviewed by quality assurance. And only when 19  : it's finished and signed off by them are the tasks truly 20 l completed.

l l

21 (Slide.)

22' ,

What about the restart of unit two? Category one 23 items. Items that will be completed. All the Appendix R 24 and alternate' shutdown modifications and requirements will 25 be done.

i l  !

I l

4 l

/\CE. FEDERAL REPORTERS, INC.  ;

202 333XC Nationwide Coserage M 336 646 l l

L7250 06 06 71

~

DAV/bc 1 I Hydrogen water chemistry. All systems will be i l 2 available across-the-board. We'll have everything available b

3 L to start the hydrogen water chemistry addition and control 4 Il and program for Peach Bottom II.

5  !

To reduce our rad waste problems, and also to i

6  ! help with the hydrogen and also to help with the chloride 7 stress corrosion problem, we must get %w'there. And we.are -

l v!P l v s.

8

  • going to do -- I don't want to say a .m/+GiA tact-ieg t H- , but any q-9 l

current testing of every one of our condenser tubes and i

l 10 those that show more than 4 0 percent' wall thinness, we 're 1 l 11 l going to plug those tubes.

I 12 Another area, the critical valves. As you know, l h l l 13 " Philadelphia Electric has developed and worked with the I Il l I l 14 i industry in developing Movats, which is a way of taking the i I i 15 l Limitorque valve operators and, instead of just setting the i

16 I limits on the torques by screws, and what not, we're g

L 17 actually monitoring and being able to really know how the L i l

18 ll valve strokes -- be able to set the limits and be able to do I 19 it in a proper engineered manner.

20 I We will complete all the 85-03 requirements of I I I i 21 , the NRC before we.go back. In addition to that, we're going i

22 l to do all of the motor-operated valves inside containment, j 23  !

1 so we will have them all behind us and have that done.

l 24 We're going to relocate the secondary alarm l '

25 l system from the security system from the control room to a

, 4 j

l l l /\CEJFEDERAL REPORTERS, INC.

l 202-34L3700 Sationwide Coserage 800 336-6646 1

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l l

,t .

7250 06 06 '

72

. 4 DnV/bc 1 l new building. This will be finished before we go back. The 2 new dewatering system that Dick Smith talked about, we have i  !

i I

3 installed that, had that underway. That system has been l 4 , through a shakedown a'nd is now operational.  !

5  ; This is a very important one here, probably a 6

l critical path item. We will complete the human f actors on 7 >

the unit two control boards before we go back. )

1 i

8 We will be current with all of our NRC 9

j commitments. Our procedure updates we've been going through 10 j and all the procedures. As Dick pointed out, where we 11 l can'5,'our admin procedures, our GP procedures, our system 12 procedures, our alarm card responses and all of those have 13 g been broken down. 4<' s L i ' ""

/ '.  ! .

i I l 14 We have a team of some 30 people that are looking t

l 15 l at that, working on that and getting all of our procedures 16 g so that they will be current, up-to-date and, in Dick l '

17 l Smith's description, crisp and proper. i l

18 Preventive maintenance, very critical, very  !

19  !

important, I think the industry across-the-board has a need 20 i for an upgrade in preventive maintenance. We have 21 .

completed, or will have totally completed our planned 22 preventive maintenance program for unit two. We will have 23 l all of our tasks that we have in our present program done 24  ; and underway. {

25 Over and above that, instead of doing preventive l

f

'l ACE. FEDERAL REPORTERS, INC.

202 3C.37(O Nationwide Coserage S(A336-6646

7250 06 06 73

,DAV/bc 1 maintenance by what the manufacturer tells you or by the 2 time the moon goes up and down, we're going to have a l i I 3 statistical trending technique and method involved, the same j 4 as we now have on our instrumentation preventive 5 maintenance. We're going to put that across-the-board and i 1

6 l we will have that up and operational by the time we go back.

7 l Over and above that, we're going to, because of I

8 the maintenance and what-not, our team from the site, the 9 site people are going to go to other facilities throughout 10 the country.

11 ,! One specifically we're going to in the next few i

12 l weeks is Crystal River to see how they are doing with their l

13 ,' program, because we understand that they have an excellent

.l J 14 one.

15 Category two...

16 j (Slide.) j c

j 17 ... restart. Some of the items. These are kind '

f 18 f of more hardware-oriented. The new public address system. l i

19 That we hope if we can get the manufacturer to get the i

! l 20 ,

system and the equipment forus] W'e will have it before l \

21  !

unit two gets back on, but we're having trouble with the 22 equipment and the hardware, so it may be a little later I

23  ! than when we get back. ,

l i,o 24 l The control . improvement program is well underway 25 i

i and that will continue. The plant process computer, we will fl j ACE. FEDERAL REPORTERS, INC.

202 347 3 % 0 Nationwide Coserage 8(4 336-6646

7250 06 06 74

  • DAV/bc 1 , have been started on that in some of the common areas that )

! e i

, u. . \

2 we can get -down while both units are down. We'll be making '  ! l 3

that interface and getting that done. l I j

4 The new plant process computer will be up and '

l l

5 j operational on unit three when the unit three pipe l l

6 replacement is over. Also associated with that is the I

7 emergency displays and all of the CRTs, afrd-a,1,-1-the--other . I 1

8 Our plant-specific simulator is well underway. I 1

9 It's finishing up.

10 l In the manufacturing, our acceptance test will be l l l

1 11 '

started soon and we hope that early next spring, if we can s

I s%,'

12 (

j i get through the qualification of acceptance tests with the k

, i manufacturer at his facility before it's shipped to the i

l 13 i l

14 I site, that this will be fully operational with the human l

l 15  !

factors that we will have on the unit two boards and 16 _

everything. That- that will be operational in the spring of '

o l 17 next year.

18 y Rad waste reduction. We talked about rad waste h

j 19 reduction. And we were really working on that. And I'll 20 l get into a litt3e bit more about that later.

i t

21 l The rad waste building. We're going to put a new

(

22 rad waste building in at the back of the plant. The 1

23 '

contract has been awarded for that and that's underway. And 24 as Dick or John pointed out, we also have purchased an l i

25 , Aztech system, which ic another advanced system, to try to  ;

l' l

i ACE-FEDERAL REPORTERS, }NC. [

200 W 3X0 Nationwide Coserage

, 800 336-6 4 6 (

7250 06 06 75 DAV/bc 1  ! take care of the resin problem. We think it's probably the )

I 2 most advanced system that's anywhere available. We have l l

3 that now.  !

1 4

l The skid is here. We ' re ready' now and we 'll be ]

l 5 l putting it into the rad waste building and, hopefully, will 6 l have that operational next year.

7  !

I I

I 8 i  ;

9 10 i I

)

11 l 12 l

13 i! l i! l 14 l 15 f II l 16 V l l! ,

n 1 17 l 18  :

f I  !

19  ! i I

i 20  !

21 22 l l l

23  :

1 24 i i

25 l l l 1 l

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! ACE FEDERAL REPORTERS, INC.

200-3:73700 Nationwide Coserare 800-336-6n46

, . l 7250 07 07 76 +

DAv/bc 1 We have tried as a result of the TMI accident to l 5 l 2

do a lot of valve monitoring. Know where your valves are, l 3 , stay on top of your valves.

4 . We have a system that we've spent now over $6 5 million on a critical equipment monitoring system, a  !

6 computerbased system, where the operator can go out, follow his checkoff list or his operating procedures and feed back 7] i 8 information to the control room to assure that the valves are 1ined up in their proper position and proper

~

9 ,

10 i orientation.

i 11 I We have worked very hard and long on this. It's i

12 been difficult. But I think we're to the point now where  !

13 I we'll have that improved and we will have utilization of 14 that when we 're going back with unit two and unit three. It .

1 J

15 will be a real breakthrough if we can get that up and get it 16 ,

developed. It's been a tremendous software development to 17 I have that where it is.

P 18 ( Slide . )-  !

l  :

19 Facilities. We have tried, and part of our l 20 problem that we've been talking about with lowballing and 21 underestimating. .Back in ' 83, we had a bout 300-500 people 22 on the job site. Back at that time, when we estimated where i

23 ' we were going, we thought we'd have 500-1,000 people between l

24 l normal operation and outages.

25 j We spent some $30 million putting in a new I

_ j 14CE. FEDERAL REPORTERS, INC.

ll l; 200 3 C-3*(O Nationwide CmeraFe 800 336-6616

l l

7250'07 07 77

_ DAV/bc 1 administration building, personnel processing building, a

\ l 2  : rad waste storage building and a security building.  !

! l 3  ! We looked at it again and uc put in new buildings  !

,g.. 1 4 ,

to help with the control room, the resin dewatering) type fab ,

l 1 5 ' shops and others, another $8.7 million. )

l 6 Then we looked at it again. We've just completed l

)

7 a study that was over a half a million dollar study with an 8 outside consultant and contractor, looking at where we're l i

)

9 going and what is it going to be. l I l 10 { Now, the numbers, gentlemen, have gone from the q i

11 l day to day operation when we're looking out into 1990 some 12 l 1,400 people on the job site and, during an outage, over ,

i i 13 l 2,000.  !

! 1 l

14 l So we are spending the money and the commitment.

i a y, s.r ta 15  : We've been wish this with Lee Everett and John Austin and we i

l 16 1 have their approval to go ahead with this program. We put  !

h i

17 in additional rad waste buildings, control room upgrades, a I

18  ; brand-new auxilliary services building on the north end of  ;

~

I 19 the building, a huge facility, a new rad waste storage l

20 building, an additional administration building, a 21  ! tremendous maintenance facility.

22 i And of course one of the things that the industry 23 across the board is working on is a training facility. We 1

24 l are taking our old Peach Bottom I facility and we're going l l

25  : to change that into a complete nuclear training facility. l i

l ACE. FEDERAL REPORTERS, INC,

{ 202 347-3700 Nationwide Coserage 8(4 336 6646

72F0 07 07 78- * .

i Driv /bc 1 l It would be the equivalent of a junior college. And the 2 warehousing. } i

! l 3 We have now the warehousing for about 30,000 I

{ ,

i 4 items. We know that we have to go to 60,000 items. So 5 ,

that's what we're doing. And we're committed to go ahead I 1 6  ; and we'll have that all finished, and probably have it all 7 l up and done in stages up through 1990.

(Slide.)

I 8

9 Quality assurance. I think one of the things i

10  ! that if we were to look at an area at why we had the  ;

1 11 l problem, the quality assurance and quality control program i

f i

12  !

across-the-board has been a reactive or an audit basis '

i i

13 L instead of proactive or current. And we intend that Peach

1 14 l Bottom have quality control and quality assurance people 15 i dedicated to shift operations to monitor and follow the l l  !

16 I conduct of operation, be it in rad waste, be it in the 17  ; control room, be it security. They will all be dedicated i

18 and they will follow that and ensure that we're having the j j

19 proper conduct of operation. l l

20 This will be done before unit v two goes back) 21  ; category one, so we will have quality control, quality ,

I 22 assurance people on site. l l

23 We're going to review and look at and restructure l  ;

}

24 our management organization with respect to quality i i

25 assurance, quality control.  !

! 1

)

j /\CE. FEDERAL REPORTERS, INC.

200.?C-3700 Nationwide Coserage 800 336 6M6

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7250 07 07  ! 79 i

,DAV/bc 1 l One of the reasons we want to look at this in the i

2 long term, at Philadelphia Electric, quality assurance for l l I 3 construction is within the engineering and research '

l \

4 l department. And quality assurance and quality control for a l l l 5  ;

nuclear operr. tion is in their department. It's really all

~

.s:n 6 in my department now, but really with Limerick,.we wind down l

7 on Limerick II construction, we want to relook at that and 8 see whether we ought to bring this altogether, 9 So this is one.of our long-term programs. We 2 10 i just want to look at what's the best quality assurance 11 fprogramandqualityassurancemanagement organization.

12 The other thing, as I pointed out, is that when ,

1 13 f we're doing this commitment to excellence program, the sign- l i I 14 ' off of'it is with quality assurance. They will take care of I

15 the closeout on the action to make sure that it's a quality I

I 16 program.

I 17 And just as I -- and I think many others, but I  !

18 think I was somewhat instrumental at Limerick, we insisted  !

I 19 on quality all the way through construction and startup. We i . as

[

20 l'had it in ops: ation and, by golly, we're going to have it at

{

21 l

Peach Bottom. So.the quality will be there, and we're going l

22 l to insist on it.

I 23  !

(Slide.)

24 Rad waste. We have recognized as a result of our I l  ! l 25 -

own internal investigation, as a result of NRC concern, as a  :

i l

l l l

l l

l ACE. FEDERAL REPORTERS, INC. i 20: 447 3700 Nationwide Coserage MG336-6646 l

7250 07 07 80

' DA V/bc 1 l result of INPO evaluations, that our rad waste and rad

)

i I

2 protection needed to be improved. One of the major problems i

3 ' that we had is the fact that we,had too wide a span of 4 control, or had one management taking care of chemistry, rad 5 protection and rad waste. i 1

i

! i 6 i What have we done about that? I l

7 We have separated church and state and now l

! 1 8 chemistry has their own management and organization. ' Rad i

9 protection has theirs. Rad waste has theirs. We've brought f 10 in people from the outside with experience and skill, i I , 4 1

i 11 f And so, to bring in a fresh look and to come up ,! j j

12 .

and reorganize it and restructure it, as Dick Smith has l

! i l

13 pointed out, he recognizes, too, how that's coming and we're '

14 just really moving into that. And we have dedicated <

l 15 additional personnel to each area.

l 16 3 The other thing of it is we have too many l

[ l 17 [ contractors and we have a plan and program to reduce that, h

18 have our Philadelphia Electric personnel, and also to i

19 minimize the span of supervision and to have more l

1 20 l supervisors in the health physics area that are Philadelphia l

21  ; Electric personnel, i

22 l Facilities and systems we talked a little bit t

23 l about. Part of our new facilities, we're going to relocate 24 l the work area for health physics, get those fellows out of 25 the area they are in now and out into a much better work ACE FEDERAL REPORTERS, INC.

2 c 3 n 3700 Nationwide coverage Ma336aa6

n

(

7250 0' 07 ,

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l hp  !

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environment. The new dewatering building snathe system is  !

2 already in.' The m' >.:te c r. systemAmdweste -syst,e'm-is s i

l 1

3 alreudy A n. The super compactor is being used. l 4 Can I have the next one, Bob, please?

5 i (Slide.)

6 l Procedures. You've heard about that. We are 7 working on them. He are well into that, well along on it, l su s) l 8 and we're getting excellent health physics at rad waste l l

l 9 1 procedures. That program is well underway. That will be up 1 i 10  ; and operational when we go back in the necessary areas unit i

11 j two.

12

)

j Programs. Dick Smith talked a little bit about i 13 l i this. Rad waste volume reduction. A real necessity and 14 something we have to do. lie have a goal that by the time we i

15 [ go back with unit two that we'll have our existing rad waste e

16 volume down to 50 percent of where it is. That will be a 17 l major reduction. '

i

' h 18 The other thing of it is that we're going to go j

! 19  ; out and recapture these contaminated areas. That program is i

j i

20  !

well along. We've got a good handle on it.

21 i And now when we're finishing up on the refueling 22  ! outage on unit two, we've never had a more golden 23 opportunity to recaptitre and reduce those contaminated 24 l areas. And we've had a program tnat we're going after that. l l

I 25 One of the things that we have to do is reduce  !

l l

l ACE. FEDERAL REPORTERS, INC.

'02-347 3700 Nationwide Cmerag MG336-6646

1 l

l 7250 07 07 82

'DAV/bc 1 i the volume: rad waste or materials that go into the areas of a i

l 2 potential contamination. To reduce that volume we've got a ]

(

3 plan and a program underway. We are training our people and j 4

we're getting to the point now that we're going to develop a l 5
program that this is the way and these are the only l

{

6 materials that you can take into a rad waste potential area I 7 of contamination.

I 8 l We've got to be more strict in this area and i I

9 we're developing the controls, the plan, the program and the i

i 10 discipline if that is not followed,las far as the drums and

' j

\ >-

11 l the storage that we have on site.  !

12 h We have barcoded all the drums. We know what's i

13 h in them. We know what our program is. And as Dick Smith I i .

14 pointed out, we have a dry active waste processer. We do i

15 i have a contaminated oil processer -- all this to reduce the 16 ! volume. And it's well underway. i I  !

17 And over and above this and in addition to this, i h

i 18 we know that other folks have gone through the problems that 19 we are havino with respect to the older plants with this i

20 amount of rad waste. And we are going to send our people 21 .

from the site to places like Brunswick where they have a l

good program, find out what they're doing so we can grow and 22 23 understand on that.

24 ,

The other thing we're' going to do when we go back i

25 - l on unit two, our cleanup, paintup program will be 90-100 f

n ACE. FED.ERAL REPORTERS, INC. l

[ 200 3c.3700 Nationwide coserage 800436 6M6 l

)

. . l 7250 07 07 83 DAV/bc 1 percent complete for unit two.

2 l (Slide.)

3  ; Security. As a result of continuing evaluations 4 '

from the NRC from INPO and our own internal review and the i

5 SALP reports, we recognized there was the need to do l l

6 something about security.

7 We'have taken steps. We ' re enforcing those i

8 steps. And now Philadelphia Electric manages the security 9  ! program. We have 24-hour shift monitoring of the security ]

i ,

10 l forces by dedicated Philadelphia Electric personnel, whose l  !

11 only concern is following security. l l

l 12 Ue have dedicated nuclear operation management n

Y 13 q for nuclear plant security. It's not part of security. l i- t i

14 i It's part of nuclear operations. And we've dedicated people 15 to that.

i i >

16 We now have the vendor management under close  ! l l >

l 17  ; control. As Dick Smith was pointing out some of the things l 18  : we were doing in that area. We will have a new security I  ;

19 computer and that will be category one. We'll have six  ;

i 20 weeks of parallel operation between the old system and the I 1

6 21 new system and that will be done before we go back. i l t l

22 l And we alr , as part of our long-range plan, f

i I

we're going to have a new security building.

23  !

24  ! (Slide.)

i 25 Communications. That's trite. And you hea .

l i

i l

i ACE. FEDERAL REPORTERS, INC.

l

, 200 30 3XO Nationwide Coserate 800.t36 6M6 l l

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7250 07 07  ;

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DAV/bc 1 fabout it all the time. We have to improve communications. i i

2 I don't know of one organization or one company or one 3 structure that you don't hear the cliche, "We have to 4 , improve communications."

5 Well, by golly, we had to improve communications t

6 at Peach Bottom. Wearehn$fhbinht$ibcommitmentto _

i.

7 excellence program to all Philadelphia Electric personnel.

8 I We're committed to it. The president, it sure has got our I n, < , , S -. ~

' l' 9 attention. And I'm admittedly involved in it.

)

10 We've got to clarify the roles and .

11  ! responsibilities of the interfacing organizations. Some of I i

12 the things that I talked about site to site and site to I

13 corporate, we have to do that with our matrix organization.

I 14 . He also have to understand what ou. .

i 13 responsibilities are. We have to improve communications to l

16 [:. and from the site. That's easy to say, but we are working j V ~ ,

17 ;, on it and have tasks assigned be how to do that.  ! l 1

l-i 18  !

Dick has already started this and has an l 19  ; excellent program underway. We're already getting l l  !

20 1 tremendous feedback that the management cares. Dick is i I 21 , doing an excellent job in that area.

I  !

22 One thing I've found. I think down through the l i l

l <

l 23 .

years, that a monthly meeting that I've run in construction i

24 for many, many years is one way to bring everybody together 25 to keep their handle on it. I'm going to be running a

! l l

q ace-FEDERAL REPORTERS., INC.

[ xx.3w sationwide coserage 800 336 6a6

  • D i

7250 07 07 l 85 I

- DAV/bc 1 j monthly meeting at Peach Bottom on this commitment to I 2 , excellence program so I can monitor it, stay on top of it, j l

3 have each and every one of the people report to me i

4 i responsible for meeting their commitments and see to it that 5 y it's done.

6 This commitment to excellence program has been 7 dev9 loped with great care and consideration. As I said at l

i 8 the beginning, no stone has been left unturned. It's well-9 defined and will be implemented on schedule.

l 10 l We have dedicated all the necessary resources to  ;

i 11 l do it. It will be a quality program and, hence, will lead  ;

i i j

12 j c

to quality operation at Peach Bottom when we return to power 13 4 operation. i I

14 MR. EVERETT: Just a few closing comments.

15 We've aired considerable dirty linen with yoa I

16 today. It wasn't always that way. Not too long ago, that 1 i

17 linen was clean and shiny and carefully pressed. We had an I 1

I t

18 excellent operation at Peach Bottom.

I t

i 19 Somehow in the last couple of years, we've 20 slipped. We let it get dirty. But, linen is a durable

{

21 cloth. It washes well. It takes a good crease. We're 22 f i

committed to making it clean and shiny again. We would 1

23 l l not have elected to do it this way, to be shut down, and to l i i i 24  ! make a quantum jump into excellence.

25 He had a program, we felt, in place that was i l ACE. FEDERAL REPORTERS, }NC.

l! 202 3C 3!00 Nanonwide Coserage 80c 336-6646

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s 4 I I

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7250 07 07 l 86 I

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going to get us there in an evolutionary way. It was not i I  !

2 enough. We're going to get there in a revolutionary way l

3 , during this shutdown period. j 4 We're going to take every advantage of the time 5 we have during shutdown not to return Peach Bottom to the l

6  !

industry average. But to go beyond -- if we can think of

, 1 7 anything, if we can glean anything from our interaction with  !

, l 8 the NRC or any other agency, or any other group, that we j l i 9 l think will improve that operation, it's going to be l 10 l incorporated in the Peach Bottom restart plan.

l I

11 I All of us are dedicated to it. Nothing has a 12 higher priority in our corporation. Our board is absolutely 13 fully aware of it. We have a special board committee that I ,

I 14 has spent literally hundreds and hundreds of hours reviewing l

t 15 f how we got where we were and what we're going to do about h

it, make sure it's complete. And it will lead us into a 16 l L

17 4 position of excellence. ,

i I, >

18 ! We're dedicated to that at this point. i j i

19 Dr. Murley, we'd be happy to respond to questions i

20 or comments. And the meeting is back to you.

l 21 MR. MURLEY: Okay. Thank you. I think we do j i

22  ; have some questions that we've all jotted down from time to 23  ; time.

24 Jim, do you want to go ahead?

l 25 MR. TAYLOR: Yes. You indicated you're open to

, 1 d

ACE FEDERAL REPORTERS, INC.

200-3 c 3700 Nationwide coserage MKi 336 646 l

7 l  !

7250 07 07 I 87 I

. DAV/bc 1 thoughts. I notice that you've directed a great deal of I

2 i attention to the licensed operators. Unlicensed operators  ;

3 l can be very important to safety.

1 4 Have you looked at that situation? Although that s i

5 wasn't the immediately identified problem, did any of that j 6

inattentiveness in conduct carry over into that group? Are 7 you satisfied that when you do get to restart that you won't i l

1 8 have some of the same problems with the nonlicensed i l

9 personnel out on the floor?

10 MR. SMITH: I think we've be naive to think that l

11 l the licensed operators were inattentive and the nonlicensed i

!' I 12 ; operators were sitting on the edge of their chairs or on l l i 13  :

their tiptoes, fully attentive.  !

l 1

14 I We do recognize there's a problem there. That's ]

I why we are saying we're going to go through some sort of 15 [

16 retraining with all of the people, but particularly l

17 nonlicensed operators.  !

I  !

18 j I don't think that we need to go to the extent of

! , , s .

19 -

the 27-day e* tent with them. But we will be doing V l

20 retraining with them and evaluating them.

e 21  ; We do not presently plan to eliminate any of them 22 from the restart. We plan to retrain.

I 23  : MR. TAYLOR: Do you know whether any of them 24 contributed to this type of behavior at the plant? Were 25 they participants in any of this that you're aware of?

u 1

14CE. FEDERAL REPORTERS,1NC.

20 M ai 3700 Nationwide Coserage 800 336-6646

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.j 7250 07 07 i 88 l l

DAV/bc 1 i MR. SMITH: There are some indications in the .

)

i i

company investigation.

2[ I believe they were nonspecific as ll 3 ' to what they had observed in various areas. But not on .

i 4 specific individuals at specific times. But that leads to 5 f; conclusions that certainly the nonlicensed operators were t

6 inattentive. And I thought that, on occasion, was true. J 1

t i 4 7

l MR. TAYLOR: A second question is, based upon i

8 l this event, there's been serious discussion with NRC staff J

9 proposing a rule that the presence on site at entry of an 10 ] NRC inspector would not be the basis of notification or l ,

11  ; announcement in the plant.  !

12 Have you taken any steps to correct that i

13 1 condition if it e.xisted at Peach Bottom? Not only for the  !

i l; NRC inspectors, but for your own management, that when they 14 15  ! enter the site on backshifts and backhours, they proceed to i

16 observe'the operations as they are instead of as they've 17 [ been corrected because they're there?

! I 18 -

l l 19 ,

20 l 21 22 l l i l' 23 ,

i l

i 25 j l

I j ACE. FEDERAL REPORTERS, INC.  ;

200-3C-3W0 Nanonwide Coserage 800-336-6M6 l

7250 08 08 f 89 i

~DAVbur 1 l MR. SMITH: Your resident inspector that is on 2 i the site, of course, has full access to the control room and l l

3 f walks in the control room any time he desires without being l l 1

4 l preannounced. W 5 In the back shifts and in the middle of the night 6 ! when a senior person comes on the site, I would expect that 1

7 the control room would be notified that the senior person l )

l 8 would be onsite. l l'

9 l If that is offensive to you --

l I

10 MR. TAYLOR: That prevents the ability to observe 11  ;

the shift as it is really being conducted if there is 12 h notification of the presence or the entry on the back side,  !

b l .

13 as we try to do. As you know, we don't have enough people I l  ;  !

I 14 to do that. Therefore, we do on occasion ask our people, 15 nll the residents and inspectors, to go onsite in back shifts.

h U

16 ll I guess I would ask you to look at that situation 17 ( because we are seriously considering possibly a rulemaking ,

18 1 on that subject, which would make it a violation of NRC 19 l rules to notify operators or other plant personnel that 20 inspectors are in the plant.

l 21 So maybe I should make the request of you to look 22 l at that.

I 23 MR. SMITH: We will certainly look at it, Mr.

I i

'24  : Taylor.

25 I recall a few Sundays ago an inspection team I.

ACE. FEDERAL REPORTERS, INC.

202 347 3700 Nationwide Coverage 800 336-6646

7250 08 08 , 90

'DAVbur 1 .

showed up unannounced and came in to see me. Certainly when I t 2  ; they came into the guardhouse they had to be processed i

31 through the guardhouse.

4  ; MR. TAYLOR: I am not talking about processed. I i

5h am talking about passing the word ahead that they are i

r 6 l arriving onsite.

l 7

l MR. KEMPER: I personally think that is reactive 8 instead of proactive. I think if we have.the quality _and 9  ; you have the plant up and you have the people there that I

10 they know what is right. I think the NRC inspector, if he

  • l 11  ! comes in and requests the guard not to pass that information I l

12 , forward, that would be acceptable. '

{

1 13 MR. TAYLOR: I don't,know why you don't instruct  !

l I

14 him not to do that.

4 15 MR. KEMPER: That is the way to do it. It is l 16 g giving the proper deference to the people that come into the v

]7 i plant. It has been an acceptable procedure for 20 or 30 h'!

18 1, years.

19 That doesn't make it right, but if Dick or I l

20 ,

arrive at the plant site, the guards immediately call the 21 l shift supervision out of deference to say that the i

22 l management is in the pl a nt .

l 23 I think if the inspector specifically does not l

i 24 want himself to be announced he could ask the security l

i 25 personnel to do that, and they would accept that.

i i

Acr FEDER u REPORTERS, INC.

, 200 3C3700 N.rinnuide Coserate M0-336 6646

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. t e72$0 08 08 l 91 i j i

~DAVbur 1 l MR. TAYLOR: Again, there may be a rulemaking on 2 i that.

( 3

MR. SMITH
Let me amplify a bit on that. I 4 don't know that when Mr. Johnson or his other residents come 1 5 l through the gate at . night that that is reported to the 6 i control room. I don't know that for.a fact, but it would be i

\.

7 easy enough to stop because they have full access. They can' 8 draw a badge just like anybody else.

i 9

But'I do think if your other inspectors who need i f jl to be processed come, it is to be expected that the security 10 f

11 guards who are making a determination if those are valid 12 . credentials and all, would call the management. I l

i 13 I

In the case of a Sunday af.ternoon-a few  !

14 afternoons ago, I was the senior management. Another time 15 it might be the shift manager. To say this person is here, 16 are his credentials all right?

]

?

I'

'17 t

i I differentiate be" tween the residents and the .

j 18 outside inspectors.

19 MR. TAYLOR: '

{ You understand the basis?

I 20  !

MR. EVERETT: I don't have any' trouble with the 21  ;

rule because I think we can certainly honor that. LI hope 22 i you would in your rulemaking look carefully at who would be )

l 23 t designated to come in unannounced.

24 MR. TAYLOR: I don't say unprocessed.

I mean 25 unannounced ahead.

1 i

i i i ACE FEDERAL REPORTERS, INC. ] -

200-347 3700 Nationwide Coverata WJ 33(,6646 I

l l

I . .

7250 08 03  ! 92 i

l>^Vbur 1 l MR. EVERETT: We don't just allow anybody'to come l I'

2 ,

in unannounced, as.you well know, and so you would have to i designate to us the people from your staff.

3 4 l! MR. TAYLOR: We could very well do that. Okay, I'

h 5 ': enough on that point. l l

6  !

Those are my questions.

i 7 i MR. MURLEY: I !.ad a series of questions.

I 8 The first one is have you set a limit on the 9  ;

number of people you are going to draw from Limerick to 16 Peach Bottom?

11 l At sorae point we are going to get concerned about ,

12 what you are doing to Limerick if you start draining too 13 many people.

14 j MR. KEMPER: It would be by each, and it would be i

15 [ a very, very limited selection. It would be two to three 16 ! people at most.

i 17 We are not going to let that operation be t I

l 18 decreased in its excellence in any way, shape, or form. l i

19 h That is why I think Dick said if we ccin find maybe one or l

20 two people that are acceptable to us and they want to go, 21  ! then that is what we are talking about.

I 22 l MR. MURLEY: Apparently, there are some good 23 people there. I mean, we know that. I was wondering if you  ;

i i 24 have taken a look at the whole thing and said no more than l L

25 five or ten cr whatever. f i

i

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i j ACE. FEDERAL REPORTERS. INC.

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'DAVbur 1 MR. SMITH: Are you limiting yourself to licensed l 2 operators or anyb^dy who works at Limerick?

3 i MR. MURLEY: I was thinking primarily licensed  !

4 1- operators, but if you start taking key management people i I i

5 l away, too... )

1 6 l MR. SMITH: I think that the number of licensed 7 operators will be very limited.  !

8 MR. KEMPER: And the total number of people -- we

)

9 l have Limerick 2 coming and we have to keep that' team j

!- 10  ! to...ather, and we have got an increased workload in that i I 11  ! area, and we are not going to dilute that in any way, shape, l

l 12 p or form. It would be by each, and it would be maybe two or

, l l ll i 1

13 i three people at most. ,

i 1 l 14  ! MR. SMITH: When I say I think the number of 15 licensed operators would be very limited, that is assuming l

' f; 4 ). t <

16 [d i

that our program of retraining and rehabilitating.using D

i 17 h shift supervisors and reactor operators is acceptable. If b c 18 that is not acceptable, we will have a very difficult 19 problem in locating operatc s.

20 l Then I think the company will have to look egain.

21 j MR. AUSTIN: Let me try to come back at your 22  ;

concern the other way, Tom.

23 I Early in the shutdown, as we were looking at the i i 24 l need to make substantial management replacements at Peach I i

25 Bottom before Dick Smith was on board, one of the options l

, i i

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'~LAVbur 1 l that we ' studied was to transplant some of the excellence and i i

2 talent from Limerick to Peach Bottom. That would be the l I

3 ,

obvious option. I 4 I start out by saying that the actions we made l

5 show that we consciously rejected that. We were not going .

I I l 6 l to drain a success story at Limerick with a second unit l 1 7 coming on to solve Peach Bottom. So we resolved to solve 8 the Peach Bottom problem without stealing from Limerick, 9 , whether you are talking about superintendents, engineers, or I

l 10 operators, and we resolved to go just the opposite direction i t

i 11 l and in fact brought a manager in from outside for Peach  :

1 12 Bottom.  ;

[l1 13 i Since that time on a selective case-by-case ba. sis i i

14 l only, and it will continue, as Dick says, we have moved a 1

l 15 >

couple of engineers, not at the top levels o'f Limerick.but 16 !! middle level engineers, down to help Peach Bott'om, but it is i i

I 17 f

a case-by-case. We made that determination early on. <

h 18 ll MR. SMITH: And one senior engineer came down to l 19 be a superintendent.

L i 20 l MR. MURLEY: You talked about - you called it 1  ?

21 ,

your senior license manager on shift. Do you call it shift 22 manager?

I

! 23 MR. SMITH: We intend to call it shift manager.

l 1 24 l MR. MURLEY: You are looking at a pool of 12 25 people, as I understand it. I didn't understand where that

{

l l

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- D AVbur 1 pool was coming from.

l l

2 l MR. SMITH: Those are people who have Peach i

}i l 1

3 ,

Bottom senior licenses which are still in existence, valid -

i 4 senior licenses.

5 MR. MURLEY: What are they doing now?

i 6  ; MR. SMITH: One is working for corporate in the j

7 l

independent safety evaluation group; two are operations i l

B l technical engineers; three or four were in the operations i

l 9  ; technical section in various positions; one is in 10 maintenance engineering; one is in outage planning -- l

! )

11  ! scattered throughout the organization.

l 12 q MR. MURLEY: These clearly are going to be, I ,

t 13 h think, key people in the organization that we are going to  !

14 j look to to make sure that attitudes changed on shift because l I

l 15 we have got to think three and four, six months down the 16 l road after restart. At night things have settled back in.  !

h 17 " We have to make sure they haven't fallen back into the old i 18 habits. These are the guvs.

I 19 How do you know that out of this pool of 12 you 20  ! have got six that are the right people?

21 MR. SMITH: I don't know that we have got six.

22 We are in the process of interviewing and evaluating i

I I

I 23 -

psychologically, lookirg for their personal desires, and we l'

24 will conduct a training program to continue to evaluate.

l-25 Six is our goal. 12 ir the pool we are presently working i

i / ACE FEDERAL REPORTERS, INC.

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-DAVbur 3 with.

2 MR. MURLEY: There is at least a chance that you 3

may not fird six qualified people.

4 MR. SMITH: It is possible. They all have senior  !

l 5[ I license qualifications. So it is not a matter of that level 6 of qualification. It is a matter of their acceptability as {

7 shift managers.

j 8 ,

MR. MURLEY: We are going to be looking ourselves l

9 at that one. i 10 I guess you have talked a little bit about the 11 licensed operators. I did the numbers. You have got 24 who 12 were licensed for operating at Unit 2 and 3 who are going to 13 be the new complement of licensed people.

l t 14 MR. SMITH:

l 24 who have not yet been eliminated, i

15 and we would hope would be in the new group, plus three l'

16 [ reactor operators who are in training for upgrade, which i i

U I 17 i would make a total of 27.

g 16 MR. AUSTIN: If they all make it.

19 MR. SMITH: They are reactor operators.

.i 20 '

MR. MURLEY: Maybe you have said it, but maybe I 21 need to hear it again.

22 i How do you intend to assure yourself that these 23 people have in fact had a chance in attitude because we 24 l found it was a pretty pervasively poor attitude among the 25 ones we talked to?

l ACE. FEDERAL REPORTERS, INC. l 202. W -3XO Nanonwide Coserage MG 336-M46 l

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- D7iVbur 1 MR. SMITH: I have personally talked to them, and  !

l 2 l I felt that all of them, with the exception of three, are i

3 amenable to a change of attitude or had a positive attitude, 4 l one way or the other. All but three.

I:

5 ' We have had professional psychologists interview 6  ! them. They weren't told we need all these operators. They 7 l were just told to evaluate them and let us know.

j 8 They evaluated half of them, and frankly, Doctor, 1 I

9 r their responses were surprisingly positive. They were more 10 .

satisfied with what they saw than they had expected to be l I

I 11 i based on what they had heard about Peach Bottom. They felt

{

12 [ that the half the group that they talked to all wanted to do  !

13 ,

things right, were willing to accept whatever direction they 14 i get, and were amenable to attitude correction.

15 In addition to that, we are evaluating them as we 16 go through the training course. As the training course 17 started -- it is a very interactive type of course, and as -

i 18 3 it started, they were noninteractive, not participating, 1

19 withdrawn, but they have gotten into it very much. They 20 i are reinforcing each otner, and they are showing a positive i

21  !

attitude. All we can do is keep watching them.

I t

22 MR. MURLEY: I guess another question is how are l

i 23 , you personally going to measure the readiness of this team t

I 24 that you are putting together, a lot of whom would not have k 25 worked as a team before? What are you going to look for to l

i i /4CE FEDERAL REPORTERS, INC.

i .02 34 3XK) Nanonwide Coverage MKh336 646 I

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' DAVbur 1 fmakesureyouaresatisfied?

2 l MR. SMITH: After we have gone past the point of

! il 3

l the individuals that we have just discussed, then we have f

, 4  !

gou to see how the shift operates together. That is going I i 5

l to be fairly difficult. It will take some managerial skills 1

6 i

to know if we have put the right people together and we have

'l '

the right strengths on our team.

8 We will have to base that on their past 9 l performance and past work experience, put them together and huaN ,

10 watch them, develop specific scenarios where.they go through 4 I

i 1

11 in a simulator and watch for specific reactions and working l II 12 1 together.

i 13 We will just have to train those teams. We will i 14 l 08

! wattn them, do the necessary lining up of testing before b I

15 i restart. There is a significant amount to be done there.  ;

i 16 ( Particularly in that effort, the new resident i

f 17 f, inspectors will have a lot of opportunity to observe their  !

18 h" performance. I l

l 19 MR. MURLEY: Of course, we are going to come to i

1 20 our own independent judgment. What I am kind of looking for i 21 l are the roots o' the problem that you have learned. >

l l

22 MR. SMITH: I can't write down at this point any 23 decisions. I need to see how they operate as a team.

l i 1 24 They are technically qualified.' They have the.

l 25 appropriate licenses. They will have gone through this I i

1 '

l l ,

l l l! /\CE FEDERAL REPORTERS, INC.

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7 50 08 08  ! 99

-DAVbur 1  ! rehabilitation, this attitude development program. There 2

l is no reason they shouldn't be able to work as a team.

l l 3  ; We will monitor them and evaluate them.

i 4 i MR. MURLEY: A lot of this is all qualitative of I i

5 course, and that creates some problems.

6 Bill, did you have any questions?

7 MR. RUSSELL: I have a couple of questions.

8 l My understanding on how you conducted your i

9 interviews so far is that you have not yet utilized the 10 investigative results as it relates to particular l

I l

11  ! individuals. ,

l' 12 MR. SMITH: I don't follow you.

i

,13 ,

MR. RUSSELL: We have received in the course of l 14 , the investigation reports of interviews, et cetera. We have t

i 15 d not yet see the completed investigative report by your lj 16 corporate security personnel.

i i

17 . My question is to what extent have you factored 4 i

l l

18 into your personnel screening process to date the results of l

i, i

19 l the investigative work as it relates to particular

\ ,

20  ! individuals? l 21 MR. AUSTIN: Let me respond to that. We have 22 .

completed the in-house investigation that I referred to in i

23 my comments. Each individual result of interrogation 14 resulted in a statement, of which you received a copy.

25 As I mentioned it briefly in my comments, each of ACE-FEDERAL REPORTERS, INC.

, 20:.3c.3700 Nationwide coverage no3364ue l l

I l . .

1 7250 08 08 l 100 i

DAVbur' 1 those statements was then put through an intensive review l ,

1 2 process within our own company. It was reviewed by the l i

3 management of our security division. It was reviewed for j l ]

4 legal content. It was reviewed by the senior management of f 5 l the nuclear operations department. It was reviewed by our 1 0 l 6[ independent safety engineering group for other possible t

7 violations or LERs or personnel errors.

8 All of this review was done internally. It has 9 been compiled into volumes, simply assembly, if you will, of i

the statements. I 10 ('  !

11 We consider that a finished product. It has been I i

12 [ placed in the hands of the management of the nuclear h

13  ;

operations department, Joe Gallagher and Dick Smith at the  !

l 14 i plant.

i 15 l He has that information and has in fact used it 16 , in each case of his review and evaluation of that h

17 h individual's acceptability for the future operation of the i l'

18 " plant. That is how it is being used.

19 ,

MR. SMITH: Let me say, Mr. Russell, I eliminated i'

I 20 one candidate from training based on reading those i

21 intervicws. I know of no one that is in training that I 22 I have not reviewed the interviews of.

1 23 > There is one operator whose report I have not yet 24 seen. He has not yet entered training.

25 MR. RUSSELL: You have used the-raw material from i

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the interviews as compared to a synopsis or compiled

- DAVbur 1 l

2 i conclusory type report as to individual responsibility and 3L other materials?

i 4  ! MR. SMITH: No. I have used the reports that i

5 l were compiled by our investigators.

l 6 l MR. EVERETT: They are the raw interviews.

s 7 MR. RUSSELL: The same materials we have.

8 MR. AUSTIN: The same material.

l l

9 MR. SMITH: Some of those interviews lasted 10 10 hours, and I didn't read 10 hours1.157407e-4 days <br />0.00278 hours <br />1.653439e-5 weeks <br />3.805e-6 months <br /> worth of transcript,- but l I )

11 statements which the individuals signed.

l l l I

12 i MR. AUSTIN: That is how we have used the  ;

i 13 I material. '

\

l 14  ! MR. SMITH: There is only one that I have not l

1 15 seen, and that person has not entered training as yet. '

I 16 MR. RUSSELL:

The short answer is to the best of r

17 , your ability to date you believe you have factored in the l

! j 18 i results of your own investigation into your screening j 19 process.

l 20 You talked about a reoperation surveillance 21 l testing program and an approach to restart.

22  ! Is that program going to be described in your i l

23  ! submittal the first week in August as to what its approach I I

l

. I 24 is in detail or broadly described?

l l 25 MR. KEMPER: It will be broadly descr.ibed. It i ACE. FEDERAL REPORTERS, INC.

i 200 347 3700 Nationwide Coverage 800-336-6646 l k

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7250 09 09 f 102 i

DAVbur 1

{ will be in pretty good detail.

2 i MR. RUSSELL: The reason that I am interested in i

3 that is because you describe that both from the stanopoint i

4 I of assuring hardware readiness and personnel readiness. l j l These are the training aspects and how that f actors in that 5  ; {

i 6  ! is clearly going to be an area of significant emphasis. l i

7 MR. KEMPER: We will have the outline of the l

i 8 j program when we submit it.

9 j MR. RUSSELL: Will your submittal describe what i

10 ' criteria were used other than the one-two-three, where one 11  ! is prior to restart -- I understand what the categories are.

12 I am interested in the criteria utilized to put the 800 )

i 13 items into those various bins. How did you decide that I 14 i something had to be done prior to restart? j i i l l 15 l MR. KEMPER: That will be in the submission as I i

16 g part of it. j li l 1

17 i MR. RUSSELL: That covers the questions I have.  : l Ii '

l 18 l MR. MIRAGLIA: Frank Miraglia, NRR.  !

19 I My concern would be the criteria by which you are 1 l

20 judging the acceptability of the operators to be 21 rehabilitated. Some kind of clear exposition -- I think 22  ! that is the point that Tom and Bill raised. That is the 23 question that came to my mind.

i 24 '

Clearly, the criteria by which you are saying  ;

25 that certain procedural fixes are required.

~

l ACE-FEDERAL REPORTERS, INC.

! .20:4 n 3 M NationeJe coverage mi 336-6M6 l

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. I 7250 09 09 103

- DAVbur 1 To take one of Bill's points and expand it i

2 further, you talked about the prestartup, preoperational l

3 surveillance testing which gets you to restart.  !

t 4 l Is there a plan for a power ascension. program i 5  ! that goes beyond that in some sort of phased way?

t 6 } It wasn't clear how might that relate to

}

7  ; assessing the ability of the shifts to function.

8 I think we are on a consistent theme when you 9  ! hear the questions coming out.

l 10 l That is all that comes to my mind.

11 MR. MURLEY: Did you want to respond to that? ,

12 MR. KEMPER: We will have a power ascension i

i 13 i program, but I think it will be -- I don't know that we will .

14 stop at 25 percent and 50 percent, but I think we will have i 15 l a power ascension program and we will stop and see that the i!

16 L shifts have each had a chance to demonstrate that they are a ,

I l

17 team. l l t 18 l So we will have that program. l l t i

19 At this point I think it is more the attitudinal i 20 thing rather than the skills. The plant is ready. Are the

]

21 men ready?

22 He just have to have a program when we have our 23 power ascension which shows that the men are skilled in i l 24 their attitude, not in their technical capability. That is  !

i '

25 a detail that we have to do, and it is best to take it up, f

, I l

j ACE FEDERAL REPORTERS, INC.

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7250 09 09  ! 104 1

' D?Nbur 1 have each shift come down and bring it back up again, and 2

q what the details of that are is sometning we have not worked ,

! i 3 out at this time.

4 MR. VARGA: Early in the presentation during the 5 historical discussion, there was a discussion about some 6

d[ problems that occurred in '84 or something. Then there was 7 an improvement plan. Then there was another problem that l 8 j occurred somewhat later, and there was another improvement 9  ! plan.

i 10 We have another problem. Now we have another 11 improvement plan. I just had a perception. I wonder why 12 ,

those other improvement plans -- whether the focus was f

13 l different or were they any help in perhaps trying to prevent '

14 the problem that just occurred? .What was the evolution of i

15 the program plans, and will this be perhaps the same history l

16 and results that the previous ones had?  !

i[-  !

17 MR. AUSTIN: The history is different because the ,

18 root is different. The result will be the same because the l l

l 19 l commitment to complete will be the same. I 4

a 20 Let me elaborate.

l 21 In 1985, as a result of a routine ann __ INPO ,

22 accreditation and visit to the plant, a substantial list of l 23

\

I , ti sks to be done emerged, substantial enough that in our I l l i

)

24 j judgment and I think in INPO's they needed something more j 25 than, yes, we will do them. j

! /\CE. FEDERAL REPORTERS, INC.

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l ._ - - - _ _ _

l 7250 09 09 i 105 DAVbur 1 They were primarily in such areas as procedures, ,

2 health physics, specific tasks to be done. l i

3 We created a program at the plant. Wecanhut a 4 l label on it, the improvement plan, so that it had an entity, l

5 which essentially was a commitment within certain timeframes l

6 to specifically relate and respond to each of those INPO 7  ! commitments.

l 8

That is what that was. We called it an 9' improvement plan, and either it was done or, as John said, 1 10 the remaining taski like the longer one, procedural reviews I

11 l that at that time had an acceptable five-year timeframe to  !

12 g INPO, will be rolled into the procedural component of this A s au r we 13 L plan. So we don't war.t it or an old and a new h- 3+ l l

14 l Significantly, at enat point in time there wasn't f

15 d L a single finding that I recall that related to the control 16 room. So they were totally in a different area.

17 In more recent history, in 1986, as you will  !

18 l recall, the NRC had a SALP review at the plant which also 19 l generateo significant deficiencies in each of the SALP r

l o L. t i . c: .

20 i categories ney,, and we esoa44deddhat. There was some 21 overlap, but not a great deal with the INPO, and established i 22  !

a broader based improvement plan. We called this the i

23 enhancement plan.  !

! l 24 That is in fact continuing and will continue to l 25 be monitored. As John Kemper said, it is on time, on I

l L

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106 DsVbur 1 schedule, 75 percent done, and will be finished with very 2 3 little overlap.

' . .e , i. , i > .

' e ih . 3 l 3 -r Again, some peripheral particularly in the *  !

4 physical facilities

the control room, but control room i

l 5

competence and behavior was a nonproblem at that point.

6  !

l l So in a sense we have these two historical l 7

documents dealing with problems of the time. All need to be i l

8 done and in fact are being done. This is a totality because 9

c l

it strikes at the heart of people, and as I said earlier and l

10 as John repeated, while we are fixing people problems we are  !

l C

11 1 going back and fix everything else, and that will cover the 12 : completion of the two priors'$

L t Un.fd.r's 13 u,-

t Does that explain the history?

l 14  ; MR. VARGA: Yes. f i I 15 MR. AUSTIN: Do you want to add anything to that?

16 h MR. KEMPER: No.

17

[I MR. MURLEY:

Chester, did you have any questions?

i'  ;

18 L MR. WHITE: Chester White, Office of '

i 19 Investigations, Region 1.  !

i 20 i Several times it was mentioned in the course of 21

! your presentation that individuals have been removed from i 22 their positions. i My question is:

' f 23 1 Has anybody been terminated as a result of your l 24 l

investigation or the MAC review from Employment, from PECO,  ;

25 i or from Peach Bottom?

l l ,

l i l

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- DWbur 1 MR. AUSTIN: I will answer that.

2 i One person has resigned from Philadelphia 3 Electric. one person has retired from Philadelphia 4

Electric. Everyone else removed from their assignment has i'

5 been transferred within Philadelphia Electric and outside of l

6  : that power plant.

l I .i j 7 l MR. MURLEY: Any more NRC staff questions. I 8 l Jim Lieberman.  !

9 MR. LIEBERMAN: As a follow-up to that question, I'

10 has anyone been disciplined, lost pay, been demoted, and the -

11 like?

12 (( MR. AUSTIN:

I will respond. l l

t 13 I consider the transferj a reduction in pay and j

l 14  ; removal from career path of a superintendent, plant manager, 15 or senior engineer a serious form of discipline, and the 16 three senior managers at the plant who either have been --

i 17 1 or in one case will be -- have been removed from a career

\

(

18 .{ path, have been transferred and had a reduction in pay, and 19 their performance this year will be noted in their annual I

20 performance review for management purposes.

21 i That is discipline. As Dick Smith said, those 22  ; operators who have been accepted and volunteered for I

23 -

retraining did voluntarily do so and did accept a fornal  ;

I j

I 24 serious written reprimand in their service record regarding t

25 what brought them to this point.

i l

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. 1 DAVbur 1- There are a number of other people; namely, the  ;

2 shift superintendents, who have not yet been reassigned. l 3 They will be reprimanded and reassigned with some loss of j f

4 pay commensurate to wnere they go, but that is next October l 5 or November, and no decisions have been made, but they have {

6 ,

been informed of that discipline.

l i 7

l As Dick said, the other half of the t erators for 8 retraining are currently in process, and their cases, also.

9 MR. LIEBERMAN: Another question I had, how can l

10 you conclude that a licensed operator really holds a 11 responsible position who has either slept or who either i i i 12 j allowed or condoned others to be sleeping could be l -

13 considered competent now to hold a similar position in the l 14 future?

15 MR. AUSTIN: Let me start out with that, and Dick i

16 i Smith may want to add to that.

17  ! We started out on the premise that in our I '

i 18 organization the shift superintendent is the senior licensed l , J l i 19 l operator management position on shift in a plant, and if he 20 either set an example of improper or inattentive behavior in i

21  ;

any form himself or condoned it, we were not content to put i

22 '

i him back. Hence, a decision was made that all six of those 23 f people would not return to duty. That is done.

24 l Of the nonmanagement operators it is being done 25 on a case-by-case review of that man's individual past i i

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i e  !

4'

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i 7250 09 09  ; 109 7 bur 1 record and the results of the evidence from the

. 2  ! investigation, and Dick Smith has already been over how that i

3  ; was done. '

i 4 j MR. MURLEY: Any further questions? (No I l 5 l response.)

6 MR. MURLEY: If not, I think we do owe you some i

l 7 thoughts on the approach and what we have heard today, I

8 although these, you recognize, can't be our definitive word I

9 because we need to see exactly in writing what you are' )

n ,

10 j planning and to some extent, since we are dealing i i

11 qualitatively here, it is awful difficult to be definitive.

12 p Nonetheless, I think it is clear that you are on '

I; 13 h the right path. We think you have taken a number of l

14 <

difficult steps that we feel are important. I guess I am 15 personally pleased at your decision to move to the shift g  ;

)

I 16 manager concept.

L 17 !; We are going to be looking very carefully at that L 4 9' i i 18 position, the people that you put in it, and so forth. '

19 We cannot say today that what you are doing is l

)

1 20 l enough simply because we haven't heard it all.  ;

21 l 1 f And, second, there is this lingering question -- )

i 22 and it is going to be a difficult question -- that was 23 alluded to here -- is we have to satisfy ourselves that the 24 people whose performance was inadequate in the past have now

, 25 become adequate and that they are properly supervised. l l

i ACE-FEDERAL REPORTERS, INC.

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e l s 7250 09 09 110 DAVbur 1 With that, then I think we will close this 2 meeting. l l

3 So we will terminate then the record.

l 4 (Whereupon, at 4:50 p.m., the meeting was

.i 5 adjourned.)

i 6

7 l

! l l

8 9

10 hl  ;

i 11 i

} '

12 13 i

14 l l

l 15 16 ,j[

i 17 ,,

18 f l:

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19 i

20 21 I 22 I

23 24 i l i I 25 i l l

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i ACE FEDERAL REPORTERS, INC.

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, CERTI?ICATE OF OFFICIAL RFPORTER This is to certify that the attached proceedings before the UNITED STATES NUCLEAR REGULATORY COMMISSION in the matter of:

NAME OF PROCEEDING: MEETING WITH PHILADELPHIA ELECTRIC COMPANY I

l l

DOCKET NO.:

PLACE: EETHESDA, MARYLAND l l

DATE: UEDNESDAY, JULY 15, 1987 1

were held as herein appears, and that this is the original transcript thereof for the file of the United States Nuclear  !

Regulatory Commission.

(sigt).:24L(j , e

/ '

(TYPED)

DAVID L. HOFFMAN J l

Official Reporter j ACE-FEDERAL REPORTERS, INC. I Reporter's Affiliation J

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