Jim Hill Nuclear Management Company

Nuclear Plant Operation under NRC Reactor Oversight Program

Prairie Island Nuclear Generating Plant Safe – Reliable – Predictable –

Leader

1

Spectrum of Performance

StakeholderValue

Customer &RegulatorPerception

Managementand Employee

Skills andCulture

ProcessCycle Time

ProcessQuality

Safe, Reliable,Cost-Effective

Generation

Management Vision & Stra tegyNuclear Generation will remain a long-te rm

reliable provider of electr icity at acompetitive price

Process ManagementSet Performance Goals. Use measures to assess

whether per formance is meeting goals. Useinformation to improve process.

Culture of Learning/ImprovementManagement and personnel skills and a ttitudes

suppor t conservative decision-making andperformance assessment. Culture makes data-based decisions and uses process management

for continuous improvement.

LaggingResults

LeadingIndicators

NRC - Focused on Safety of Operations

Adapted from: EED-99-01 Recommendations for the Implementation of Selected Leading Indicators of Performance at Nuclear Power Production Plants, ASQ, 1999

Recognition of Need to Improve • NRC performance determination previously

implemented by Systematic Assessment of Licensee Performance (SALP)

• In late 1994 NRC conducted in-depth review of SALP process. Issues noted:– Lagging…consequences initiated late, sometimes after

performance decline had already been turned– Inconsistent regulatory response– Determination sometimes driven by upper

management bias with incomplete data

Bottom Line: The process the NRC used to determine licensee performance needed to be more effective

Developed with input from plant owners/operators, facilitated by NEI

• Baseline Inspection– Finding Significance Determination Process (Green Red)

• Performance Measures – Performance thresholds established (Green Red)– Reported on a quarterly basis

• Measures “rolled up” with inspection results for periodic performance assessment

• Regulatory Response matrix– Additional and more intrusive Inspection– Continued degradation in performance leads to shut down

Piloted at 8 nuclear plants prior to full industry use

Revised Reactor Oversight Process

Positive Results• Industry Performance in areas measured has improved• Rigorous process for performance measures

– Ensure current measures are adequate and provide value

• Predictable Regulator Action – Data Driven

• Accuracy of performance data has improved– Problems found early on in data reporting– NRC cannot accomplish performance-based oversight without

accurate data…poor reporting is serious issue

• Periodic review and improvement to ROP is ongoing. – Moving to a new set of equipment performance measures– Adequacy of Security and facility protection from external

threat continues to be a priority

Example – Hypothetical Nuclear Site

NRC ROP Indicators – 2nd Quarter 2005

Initiating Events

Mitigating Systems

Barrier Integrity

Emergency Preparedness

Occupational Radiation

Safety

Public Radiation

SafetyPhysical

Protection

Unplanned ScramsEmergency AC Power System

Reactor Coolant System Activity

Drill/Exercise Performance

Occupational Exposure Control

RETS/ODCM Radiological

EffluentProtected Area

Equipment

Scram with Loss of Normal Heat

RemovalHigh Pressure Safety

InjectionReactor Coolant System Leakage

ERO Drill Participation

Personnel Screening Program

Unplanned Power Changes

Auxiliary Feedwater System

Alert and Notification System

FFD/Personnel Reliability

Residual Heat Removal System

Safety System Functional Failures

2Q/2005 (Projected) G No Findings This

Quarter G No Findings This

Quarter

No Findings This

Quarter

No Findings This

Quarter

1Q/2005No Findings This

Quarter

No Findings This

Quarter G No Findings This

Quarter

No Findings This

Quarter

No Findings This

Quarter

4Q/2004No Findings This

Quarter

No Findings This

Quarter G No Findings This

Quarter

No Findings This

Quarter

No Findings This

Quarter

3Q/2004No Findings This

Quarter G No Findings This

Quarter

No Findings This

Quarter

No Findings This

Quarter

No Findings This

Quarter

2Q/2004 G G G No Findings This

Quarter

No Findings This

Quarter

No Findings This

Quarter

Current Action MatrixColumn

-Licensee Response

INSPECTION FINDINGS

REACTOR SAFETY

2nd QUARTER PERFORMANCE INDICATORS

RADIATION SAFETY SAFEGUARDS

Human P erformance Safety Conscious Work Environment P roblem Identification & Resolution

No Substantive Cross-Cutting Issues No Substantive Cross-Cutting Issues No Substantive Cross-Cutting Issues