Nuclear Power International May/June 2013

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SMR The New Face of
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HOW TO MAKE THE MOST OF THE SECTION 316(B) RULING DELAY

The EPAs forthcoming cooling water intake rule is expected to be finalized this summer. Heres how to prepare.
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Amid a massive workforce transition, the nuclear industry is training a new crop of employees.
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MAY/JUNE 2013
One of Vogtle Unit 3s low pressure turbine rotors, May 2013.

Photo courtesy of f Georgia Power.
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New Faces in Nuclear Power

BY DENVER NICKS, EDITOR
entered the hotel lobby on the morning of the second day of the Nuclear Energy Institutes annual Nuclear Energy Assembly and felt instantly that something was peculiar. At this yearly get-together of nuclear industry executives and aficionados in Washington, DC, Id expected to see the familiar nuclear industry gathering of salt and pepper-haired men and a smaller number of women, all looking decisively senior in their careers. Instead, the lobby was filled with a teeming mass of young people (my peers, incidentally) talking, joking, laughingswitch out business suits for Hawaiian attire and it might have been a Luauthemed 10-year high school reunion. The jamboree Id stumbled into was a gathering of the North American Young Generation in Nuclear (NAYGN), a professional organization for people working in the nuclear industry aged 35 years old and younger, from engineers to public relations specialists to machinists and operators to budding young executives. Even students are invited to join NAYGN. NAYGN doesnt, apparently, gather data on the gender of its attendees, but Christina Csizmadia, president of the group, estimates that the gender breakdown is roughly half and half, which, if it is anywhere near that, makes it far and away more evenly distributed than among the older guard in the energy industry. The 390 or so attendees were on their way out the door to head
over to Capitol Hill for a day of pro-nuclear lobbying.Csizmadia told me that by the end of the day they would hold meetings to advocate on behalf of nuclear power as a singularly safe, secure and reliable power source with roughly 200 of the congressional offices on the Hill. A Nuclear Energy Institute representative standing nearby called it one of the largest pro-nuclear Hill lobbying efforts that happens. This is the largest pro-nuclear anything that happens,Csizmadia said. Whether or not this strictly true, the statement is almost certainly true of lobbying activity on behalf of nuclear power (which is what I think Csizmadia was getting at). And who better suited to the task than young people, not too many years out from team sports and university club meetings and so forth, and thus more accustomed than older folks to being organized into a big group for a common cause like a lobbying day. Later in the morning, Gen. Stanley
McChrystal was speaking to attendees of the general conference (the saltand-pepper-heads Id been expecting) when he intoned on the power of collaboration and the importance of relationships. I couldnt help but reflect on the NAYGNers who were then trouncing around Capitol Hill on behalf of the sturdiest source of abundant, super-clean energy on the planet. McChrystals advice to place high value on relationships, to recognize that two individuals or organizations working together can be greater than the sum of their parts, is certainly applicable to all people at all times. This issue of NPI includes a discussion between executives at TVA and Day & Zimmerman about the value of the collaboration between those two organizations. I do believe, however, that McChrystals message might have a particular salience to the 35-and-under crowd (who, as it happens, were on the Hill that day and missed the speechmaybe they can
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find a post-conference video). Young people have always tended to be great relationship builders and collaborators but there is something special about my generation, young enough to have been fairly early adopters of social media services even if we still remember well the day when a tweet was the sound a bird makes. The generation of facebook and Twitter and Instagram is intensely collaborative in a way that was impossible before. We maintain relationships online that would have faded naturally with time in a previous era. Surely there can be no group of people better prepared to harness McChrystals advice, to leverage the power of collaborative technologies and networks to improve processes or policies or whatever else. The Nuclear Energy Institute says 39 percent of the United States current crop of nuclear industry workers will reach retirement by 2016. This presents a challenge, yes, but also a tremendous opportunity. If the next
generation of nuclear industry professionals is properly cultivated, it will mean a fast and dramatic infusion of new talent with 21st-century sensibilities into an industry in the midst of a global resurgence. Even in the United States, where the nuclear renaissance has stalled to a degree, growing concern over carbon emissions or the need for price stability could any day signal a renewed widespread interest in nuclear power. As described by NPI contributor Mary Jo Rogers in a feature for this issue, in the nuclear industry today there are groundbreaking technologies already being deployed of the sort previous generations could only dream about, and even farther reaching technologies are in development. There is no better time for an infusion of young talent into a field and no field better matched for such an infusion than nuclear power. And if NAYGN is any indication, the nuclear energy community is well poised to provide it.
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Nuclears strong future amid challenges

BY MARY JO ROGERS, PH.D., PARTNER, STRATEGIC TALENT SOLUTIONS
ith all the attention that is being given to recent announcements of nuclear power plant closures and threatened shutdowns, it would be easy to think that U.S. nuclear power is marching to its death. Easily overlooked are the signs of life and significant milestone achievements of new nuclear technology. Nuclear plant owners started feeling squeezed when decreased electricity demand met a perceived natural gas glut (much of the shale gas reserves have not been tapped yet) and the ensuing low prices. This combination has meant utilities could get very little for their electricity generation, and merchant nuclear plants have become borderline breakeven or worse. With the addition of costly Fukushima modifications and aging major equipment, speculation has increased that more nuclear plants will follow the path of Dominions Kewanee and Dukes Crystal River station. Although it is likely that a few additional nuclear plant shutdowns will be announced over the next year or so, potential signs of life can be seen by stepping back from the current bleak economic environment for nuclear power and looking at the long term prospects. According to the U.S. Energy Information Administration (EIA),
nuclear powers share of the electricity mix is expected to decrease by only 2% by 2040, losing some ground to natural gas and renewables, which will also absorb increases in demand. With any future regulatory effort to capture fees for carbon allowances, nuclear powers estimated share of generation increases anywhere from 7-18%, taking the gains from coal. Global long-term estimates show that nuclear powers overall proportion of electricity generation stays fairly constant, with losses in Europe and gains in Asia, according to the International Energy Agency. The EIA predicts that by 2020 the U.S. will become a natural gas (net) exporter, which would put pressure on natural gas and electricity prices and keep currently operating nuclear power plants above water. It is unlikely that more than a few additional nuclear plants will close in the U.S., given that regulated utilities will be able to weather the current environment and non-regulated nuclear generators will want to retain enough nuclear capacity to be well positioned when prices increase. Moreover, if too much nuclear generation is lost at the same time aging coal plants are closing, natural gas will be used increasingly for baseload generation, putting even more pressure on prices.
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Despite current economic challenges to the nuclear power industry, many experts support the ongoing development of nuclear power as an essential part of the mix for longterm world energy needs. At least one high-profile investor, Microsoft Corp co-founder and Chairman Bill Gates, touts the benefits of nuclear power and calls for more investment in nuclear energy research. At the international energy executives conference in March (CERAWeek), Gates endorsed nuclear power as the best long-term solution to rising world energy needs challenged by climate change because nuclear provides reliable, high capacity, low-carbon energy. Gates also discussed how after the Fukushima accident, there is a greater demand for more stable nuclear energy technology and improved nuclear power reactor designs with inherent safety features. A significant milestone in U.S. nuclear power was achieved very recently. In March, South Carolina Electric and Gas (SCG&E) and Georgia Power
poured the first new nuclear concrete in over 30 years at the Summer and Vogtle construction sites, respectively. The historic completion of 7,000 cubic yards of basemat structural concrete at each site by CB&I (formerly Shaw Group) serves as the foundation for the nuclear island structures, such as the reactor containment and auxiliary buildings. Georgia Power and SCG&E (and their co-owners) are each building two Westinghouse AP1000 (1,100 MWe) reactors at the Vogtle and Summer locations. Westinghouse and CB&I are even further along in building four AP1000 units in China. The AP1000 is considered a third generation (III+) advanced reactor that provides a simplified design, reduced capital costs, greater fuel efficiency and enhanced safety margins through the use of passive safety functions. There are many other new advanced reactor designs being developed, including mPowers (Babcock & Wilcox) small modular reactor that received a DOE cost-sharing award for certification
and licensing. Generation IV reactor designs are still on the drawing board but have committed international partners pursuing a defined set of approaches. Gen IV designs provide even higher levels of safety and reliability, proliferation resistance, physical protection and economic competitiveness, according to the American Nuclear Society.
Many signs of life can be seen in the progress made in the licensing and construction of new reactor designs. Nuclear energy may face continued economic, technological and political challenges but it will retain an important role in world economic development, particularly if efforts are increased to addr ess climate change.
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Nun, protesters found guilty of uranium plot break-in

May 9, 2013 An 83-year-old nun and two fellow anti-nuclear protesters were found guilty of breaking into the Y-12 National Security Complex at Oak Ridge, according to reports. The jury convicted the nun and her two accomplices, a 64-year-old Vietnam veteran and a 57-year-old house painter, on charges of interfering with national security and damaging federal property. For the crimes of harming national security by breaking into the Y-12 facility and damaging government property in the process, the trio face up to 30 years in prison. Sentencing is expected within four months. The three were accused of painting slogans and splattering human blood at the Y-12 facility, deeds the defense contends were symbolic acts of protest but which the prosecution insists represented a serious security breach with reverberating effects on the Y-12 facility. Officials hold there was never any
chance the protesters would reach the uranium stored inside the facility, according to an Associated Press report.
monitored for a period before being dismantled and decontaminated, according to Platts.
At Kewaunee nuclear power plant, the beginning of the end

May 7, 2013 Power output at the Kewaunee nuclear plant near Green Bay, Wisc. was lowered steadily on this day in early May. By afternoon facility operator Dominion Power (NYSE: D) had taken the entire unit to be offline, Platts reports. The decision to shutter Kewaunee in the second quarter of 2013 was announced in October 2012, after Dominion failed to find a buyer for the plant. The low price of natural gas and of power prices generally were blamed for the plants demise. Once powered down entirely, Kewaunee was mothballed and placed into SAFSTOR status for up to 60 years, in which radioactivity decays in a contained environment while the plant is
Kudankulam nuclear plant gets go-ahead in India

May 6, 2013 The Indian Supreme Court gave the Kudankulam Nuclear Power Plant its seal of approval Monday, NDTV reports. The court reportedly found that the project was devised to power sustainable growth and provide for the public welfare in Tamil Nadu. The two, 1,000 MW nuclear reactors planned for the facility have been met with substantial public resistance, though the state has remained committed to the project.
Prime Minister Recep Tayyip Erdogan cited in Reuters news service. Mitsubishi Heavy Industries, of Japan, and Frances Areva were selected for the $21 billion contract to oversee the new nuclear build, which has been hotly anticipated across the nuclear industry. The new plant is projected to have a total output capacity of between 4,500 and 5,000 MW.
Law to recover new nuclear costs upheld in Florida

May 2, 2013 The Florida Supreme Court upheld a nuclear tax statute that allows units of both Duke Energy (NYSE: DUK) and NextEra Energy (NYSE: NEE) to collect money from customers to pay in advance for nuclear power plant projects that may or may not come to fruition. The court rejected arguments from the Southern Alliance for Clean Energy, an environmental group that filed the claim against the 2006 law, that the charges were improper and that the law
Japan and France tapped to build Turkish nuclear plant

May 3, 2013 An alliance between a Japanese and a French firm has been chosen to build Turkeys second nuclear power plant, according to comments from Turkish

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was an improper delegation of power to the Florida Public Service Commission, according to Bloomberg Businessweek. The PSC approved plans for Progress Energy Florida and Florida Power & Light to charge customers $282 million in November 2011 for nuclear project costs from 2011 through 2012, the article said. In related news, on May 1 the Florida state House of Representatives passed an amended version of the Senates bill that attempts to scale back the law, according to The Hastings Group. Senate Bill 1472, as passed by the House, removes two provisions: a subsection that allows for cost recovery if a company terminates plans to build a new nuclear plant, and a previously-amended provision that would not have allowed shareholder profits for a company that moves forward with new build plans after July 1, 2013, but later cancels those plans.
China wins first contract to export homegrown nuclear reactor

Apr 22, 2013 The China National Nuclear Corp. has secured a contract to build the ACP1000 reactor in Pakistan, the first export contract for the design, The Times of India reports. The announcement was made over the weekend after the reactor reportedly passed a review panel in Beijing. Construction is slated to begin in Pakistan, at an undisclosed site, after work on a domestic ACP1000 reactor begins in China later this year.
Obama exploring sale of TVA

Apr 11, 2013 In its fiscal year 2014 budget, the Obama administration revealed it may sell all or part of the Tennessee Valley Authority, the nations largest publicly owned utility. The presidents budget said the administration intends to undertake a strategic
review of options for addressing TVAs financial situation, including the possible divesture of TVA, in part or as a whole. The historic utility, which serves a vast swath of the American southeast, including parts of Tennessee, Alabama, Georgia, Kentucky, Mississippi, North Carolina and Virginia, is a self-financing, government-owned corporation. Though it funds its own operations through electricity sales and bond financing, as a government-owned entity, it does have a $30 billion statutory limitation on indebtedness. TVAs anticipated capital needs to to meet customers needs, upgrade aging infrastructure, and fulfill environmental responsibilities are likely to exceed that cap. Reducing or eliminating the Federal Governments role in programs such as TVA, which have achieved their original objectives and no longer require Federal participation, can help put the Nation on a sustainable fiscal path, the budget said. TVA President Bill Johnson said the
1
company will cooperate with what the Obama administration has termed a strategic review of the TVAs place in the federal portfolio.We take direction from the administration, Johnson said. Inside TVA we dont engage in guesses about political posturing or anything else.
Obama budget slashes MOX fuel funding

April 11, 2013 The Obama administrations FY 2014 budget proposal cut funding for a key plutonium reprocessing facility in South Carolina, leading senators and industry to disparage the proposal. The request included $503 million for the facility, or $183 million less than was provided under last years continuing resolution, when Congress failed to pass a budget. The MOX (mixed oxide fuel) facility transforms weapons-grade plutonium into usable commercial nuclear reactor fuel and is a key part of the America non-proliferation efforts.
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MAY/JUNE 2013
On-Line Monitoring
Opportunities in automation
BY RICHARD RUSAW, ELECTRIC POWER RESEARCH INSTITUTE, & MOHAMMED YOUSUF, EXELON NUCLEAR
Figure 1
Observed
uclear plants are increasingly turning to on-line monitoring to improve plant productivity, reliability, and asset management. Exelon has been an early adopter, and is applying fleetwide online monitoring technology developed by the Electric Power Research Institute (EPRI) across its 17 nuclear units to obtain real-time information on component condition, evaluate and manage risk, optimize maintenance, and reduce costs. The program continuously monitors plant equipment and identifies low-level anomalies at a very early stage. Monitoring equipment health provides a wealth of information to support business decisions. Equipment condition data can help avoid unplanned or corrective maintenance of power plant components, which is one of the most significant expenses for power plants in terms of parts and labor and replacement electricity costs. Online equipment condition monitoring can provide early warning of potential failure by detecting incipient indicators of equipment degradation via advanced pattern recognition and signal processing technologies. Online monitoring (OLM) also can help engineers estimate the remaining useful life of critical plant components that are expensive and difficult to replace. EPRI has been developing online monitoring technology since the late 1980s. In particular, EPRI adapted advanced pattern recognition technology that was in development at national laboratories for use in nuclear power plants. In addition, EPRI supported the development of the technical infrastructure for online monitoring and worked with early adopter utilities including Exelon to apply the infrastructure and technology in a series of pilot projects.
Value
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Courtesy of EPRI.
Residual
Time
Source: Courtesy of EPRI
The advanced on-line monitoring technology developed by EPRI incorporates pattern recognition software, digital measurement and signal processing, and advanced modeling and analytical methods. The numerical models employed in pattern recognition software can automatically detect much smaller changes than possible with data trending, and are amenable to higher levels of automation and integration into advanced information management systems, thereby
supporting modern business management programs. Advanced digital measurement and signal processing techniques are important because the large amounts of data from plant equipment do not necessarily provide useful actionable information. Preprocessing technologies, for example, can condense unfiltered data into organized data sets for efficient use in analytical programs. And because monitoring programs do not have inherent

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CIVIL GOVERNMENT SERVICES MINING & METALS OIL, GAS & CHEMICALS POWER
Figure 2
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Building the Worlds Energy Future

Bechtel is among the most respected engineering, project management, and construction companies in the world. Bechtel operates through five global business units that specialize in power generation; civil infrastructure; mining and metals; oil, gas and chemicals; and government services. Since its founding in 1898, Bechtel has worked on more than 22,000 projects in 140 countries on all seven continents. Today, our 53,000 employees team with customers, partners and suppliers on diverse projects in nearly 50 countries. Bechtel has contributed over 74,000 MW of completed nuclear design and construction projects and performed services on more than 80% of the US nuclear fleet.
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intelligence about the behavior of monitored equipment or systems, advanced analytical methods help to optimize data requirements and supporting measurements, and to interface with the operating plant and plant personnel. Although online monitoring is used extensively and effectively in other
industries, it is still in the early implementation stage in the nuclear power sector. To support broader application, EPRI has published guideline reports incorporating operating experience and lessons learned from successful implementations over the past 20 years. For example, Guideline for On-Line Monitoring of Nuclear

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Figure 3 200 190 180 170 160 150 140 130 120
Power Plant Instrument Channel Performance (1022988) and Requirements for On-Line Monitoring in Nuclear Power Plants (1016725) provide the necessary guidance and requirements for plant implementation of online monitoring in both the existing fleet and the next generation of nuclear power plants.
FLEETWIDE DEPLOYMENT
Using these guidelines and building on EPRIs technology development
efforts, Exelon implemented a decentralized fleetwide online monitoring system. The system monitors equipment health via an array of instrumentation and control sensors that measure process parameters including temperature, pressure, level, flow, vibration, and neutron flux to verify proper sensor operation or to identify differences from expected behavior that may indicate sensor degradation, process anomalies, or equipment problems. A server runs the advanced
pattern recognition and other software tools to analyze the sensor data and evaluate equipment health and plant performance. Results are provided to respective systems engineers at each plant for assessment, including optional email or pager notifications when monitored components deviate from specified normal operating conditions. Exelons monitoring program supports the companys Fundamentals of Intolerance for Unexpected Equipment Failure. The OLM system identifies anomalies at low levels and helps plant staff either mitigate the deviating condition in timely manner, or, if the deviating condition cannot be corrected immediately, closely monitor the trend and more effectively plan the corrective work. Exelon decided to automate the OLM system to achieve a higher level of performance. Exelon has developed a unique notifications framework linked to the monitoring scheme that automatically informs responsible plant staff of deviating plant conditions. A tiered alarming scheme is
built into the program to track the degradation of real-time values. Each trend in the program is equipped with Hi Residual, Hi Warning, Hi Alarm, Hi Out of Range, and Low Warning alarms. The program improves productivity of plant staff and supports systems engineering, operations, and maintenance by focusing attention on areas of greatest concern.
Although online monitoring is used extensively in other industries, it is still in the early implementation stages in the nuclear power sector.
The OLM system at Exelon is a fleetwide application, currently monitoring more than 1,400 assets. The monitoring encompasses all major safety-related components and power production assets across the fleet. The next phase of the project will cover all non-safety related components supporting safety functions. There are approximately 15,000 sensors programmed into the OLM application.

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The OLM program trends equipment condition by monitoring the rate of change of degradation through a unique algorithm incorporated into the software. The algorithm determines the residual value for a particular piece of equipment based on real-time equipment performance and a reference value built into the program. The residual is the difference between the expected values generated by the software and the measured values from the plant. In normal operation, the residual should be a near-zero, stable signal. Changes to the statistical behavior of this normally well-behaved signal are easily detected and can indicate an unexpected or fault condition that warrants investigation [Clarkson, S. A, and R .L. Bickford, Path Classification and Remaining Life Estimation for Systems having Complex Modes of Failure, MFPT 2013, Cleveland, OH, May 2013.] Figure 1 illustrates the residual concept. Figure 1. Residual-based monitoring enables improved fault detection and
prognostics. The residual is the difference between the observed signal and the predicted signal.
Figure 4
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EARLY DETECTION EXAMPLES

The OLM program has successfully identified several plant anomalies at an incipient stage and helped Exelon staff take timely mitigating actions to ensure safe plant operations. Several examples are described below.
STEAM GENERATOR LEVEL CONTROL CARD FAILURE

The OLM program identified a failed circuit card in the feedwater regulating valve controls while the valve was controlling the steam generator level in automatic mode. When the circuit card failed, the steam generator started to rise. Although the rate of change in level was small, the OLM system was sensitive enough to detect that the residual exceeded the preset alarm set point of Hi Warning. In response, the OLM system informed plant staff of a changing plant condition.
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The early detection helped the plant staff to switch steam generator level control from automatic to manual until the card was replaced. Notably, the anomaly was detected at an incipient stage that could not have been detected by human eyes until at reaching a more mature stage. The OLM program, therefore, prevented a plant transient and helped plant
staff to take timely corrective actions. Figure 2. This graphic shows how the OLM system detected an out of range condition in the steam generator level control assembly. The residual value is shown in green, the Hi-Warning setpoint in yellow, the Hi-Alarm setpoint in red, and the Hi-Out of Range setpoint in purple.

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CONDENSATE PUMP BEARING TEMPERATURE

The OLM program identified a rising pump bearing temperature at an incipient stage. The early detection alarm was initiated automatically by the program when the bearing real-time value (green trend line) exceeded the Hi-Warning (yellow line) setpoint. The early detection enabled plant staff to perform a flow balance of the turbine building closed cooling water system. The bearing temperature dropped back to preanomaly conditions as soon as the bearing cooling flow was adjusted. The early detection helped prevent degradation of the pump bearing, which could have resulted in a plant transient. Figure 3. This graphic shows how the OLM system detected a high alarm condition in the condensate pump bearing temperature. The residual value is shown in green, the Hi-Warning setpoint in yellow, the Hi-Alarm setpoint in red, and the Hi-Out of Range setpoint in purple.
CIRCULATING WATER MOTOR STATOR TEMP

The OLM program successfully identified temperature degradation in the circulating water motor stator winding. The automatic alarm was initiated when the rate of change of winding temperature caused the residual (green trend line) to exceed the preset Hi-Warning setpoint. The degradation was identified at an incipient stage, helping plant staff take timely corrective actions and plan the motor replacement work according to plant schedule. The OLM helped prevent a plant derate and protect the work planning cycle. Figure 4. This graphic shows how the OLM system detected an out of range condition in the temperature of a circulating water motor stator winding. The residual value is shown in green, the Hi-Warning setpoint in yellow, the Hi-Alarm setpoint in red, and the Hi-Out of Range setpoint in purple.
NOVEMBER 1214, 2013 | ORANGE COUNTY CONVENTION CENTER | ORLANDO, FL, USA NUCLEARPOWERINTERNATIONAL.COM
Global demand for energy continues to grow. So do concerns related to the environment, greenhouse gas emissions and climate change. Emission-free, baseload nuclear power can be a viable option to address these concerns and meet growing demand for energy. Nuclear energy remains a viable, clean and safe option for meeting demand around the world. Now in its seventh year, NUCLEAR POWER International 2013 provides the nuclear power industry the perfect venue to gather and exchange information about nuclear powers role in todays changing world. Visit www.nuclearpowerinternational.com for more information or to register today.
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Generation Next
The Future of Nuclear Energy Technology
BY MARY JO ROGERS, PARTNER, STRATEGIC TALENT SOLUTIONS AND AUTHOR OF NUCLEAR ENERGY LEADERSHIP: LESSONS LEARNED FROM U.S. OPERATORS.
ore attention has been given of late to recent announcements of nuclear power plant closures and threatened shutdowns than to the pursuit of new nuclear technology. Despite current economic challenges to the nuclear power industry, many experts support the ongoing development of nuclear power as an essential part of the mix for long-term world energy needs. Recent polling shows that the majority of Americans still favor the use of nuclear energy to generate electricity and 81 percent of those surveyed stated that nuclear power will be important in meeting the countrys future energy needs. Given current economics, however, it would be easy to question the ability of the U.S. to build new nuclear plants and make use of advanced nuclear designs. This question was recently answered when the industry achieved an historic milestone in the construction of new nuclear power. In March, South Carolina Electric and Gas (SCG&E) and Georgia Power poured the first new construction nuclear concrete in over 30 years at the Summer and Vogtle construction sites, respectively. The historic completion of over 7,000 cubic yards of basemat structural concrete at each site by CB & I (formerly Shaw Group) serves as the foundation for the nuclear island structures, such as the containment and auxiliary buildings. Georgia Power and SCG&E (and their co-owners) are building two Westinghouse AP1000 reactors at each of the Vogtle and Summer locations. Westinghouse and CB&I are even further along in building four AP1000s in China. Design certification of the AP1000 by the NRC was issued in December 2011 and the licenses for construction
and operation (COLs) were issued in February 2012 for Vogtle and March 2012 for Summer. The building of these advanced reactors in Georgia and South Carolina is significant and demonstrates that nuclear power will continue to play an important role in the U.S. energy mix. Their presence also reinforces the need for key stakeholders to support and continue to invest in nuclear reactor technology. According to the World Nuclear Association (WNA), the certification of the AP1000 required 1,300 personyears of work and $440 million for the design and testing program. Notably, at the time of the Fukushima disaster, the Westinghouse AP1000 was not yet fully certified and the COL had not yet been issued by the NRC. The passive safety features of the AP1000 design provide 72 hours
TERRAPOWERS TRAVELING WAVE REACTOR PROTOTYPE

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of cooling by way of stored energy and gravity in the case of a major event, which protects public safety as well as the asset. Russ Bell, the Senior Director of New Plant Licensing at the Nuclear Energy Institute (NEI), points out that one year after Fukushima, the NRC was able to proceed with the licensing of the AP1000 at Vogtle and Summer in part because of the robustness of its enhanced safety features. There is a lot of credit to go all aroundSouthern Nuclear, SCANA (SCE&Gs parent company), Westinghouse, the NRC, and many others. At least one high-profile investor, Microsoft Corp co-founder and Chairman Bill Gates, touts the benefits of nuclear power and calls for more investment in nuclear energy research. At the international energy executives conference in MarchCERAWeek, Gates endorsed nuclear power as the best long-term solution to meeting rising world energy needs while addressing climate change because only nuclear provides reliable, high ca-
THE VOGTLE UNIT 3 REACTOR VESSEL IN FRONT THE UNITY 4 CONTAINMENT VESSELL BOTTOM HEAD, MAY 2013. COURTESY OF GEORGIA POWER.
VOGTLE UNIT 3 COOLING TOWER CONSTRUCTION, MAY 2013. COURTESY OF GEORGIA POWER.
pacity, low-carbon energy in a way that can significantly reduce global warming. Gates also discussed how after the Fukushima accident, there is a greater demand for more stable nuclear energy technology with improved nuclear power reactor designs with greater inherent safety features. There are multiple improvements in nuclear reactor technology already being realizedand there are dozens of new reactor designs being pursued and significant innovations on the horizon.
GENERATIONS OF NUCLEAR TECHNOLOGY

The U.S. Department of Energy (DOE) has adopted a nomenclature to
categorize various stages of advancement in the development of nuclear energy technology. The progression from one generation to the next tells a story of technology evolving to meet needs for increased safety and economy as well as proliferation resistance and reduced nuclear waste material. Generation I reactors were the prototypes, the first civil reactors developed in the 1950s and 60s that moved the technology from research and military uses to commercial power. They were typically small and lacked the redundant safety systems and non-proliferation aspects of current designs.
Exelons Dresden Unit 1 (now retired) is of the first generation. Generation II reactor designs comprise the vast majority of nuclear plants in operation in the world today. These are commercial nuclear power reactors designed to be economical and reliable and built primarily in the late 1960s through the 90s worldwide. They include the boiling water reactor (BWR), pressurized water reactor (PWR), and the Canadian CANDU reactors. In the west, most were built by Westinghouse, GE and Framatone (AREVA). They use active safety features, as opposed to passive, that involve electrical and mechanical operations initiated automatically and/or by the unit operators. Generation III and Gen III+ reactor designs reflect significant design improvements and are referred to as Advanced Nuclear Power Reactors. There are dozens of third generation designs that are under development,

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going through the licensing and certification process or under construction (some Gen III units have been in operation in Japan). According to the World Nuclear Association, third generation reactor designs have the following improvements: Standardized designreducing capital cost, construction time and expediting licensing. Simpler and more rugged design making them easier to operate and less vulnerable to error. Longer operating lifetypically 60 years. Reduced possibility of core melt accidents. Passive safety features and long grace period during a shutdownpassive cooling and containment requires no active intervention. Greater fuel efficiencylonger fuel life and less fuel waste byproducts. Resistance to serious damage and radiological release from an air-
craft impact. The major difference between Gen III and Gen III+ designs is that the latter incorporated significant safety improvements that do not require active controls or operator intervention, but rely on gravity and natural convection to mitigate the impact of an event. After the reactor events at the Fukushima Daiichi units, the importance of passive, naturally occurring safety features in the event of a loss of all back-up power became patently clear. The AP1000 is a Gen III+ reactor design. Other third generation reactor designs pursuing certification include the APR 1400 led by Korea Electric Power Company (KEPCO), US EPR by Areva, the ABWR and ESBWR by GE Hitachi, and the US-APWR by Mitsubishi Heavy Industries. Small Modular Reactors (SMRs) are third generation designs that have received broad support. SMRs provide advantages in their modular construction and smaller size, which impacts cost, time
VOGTLE UNIT 3 CR10 CRADLE ON CONCRETE AND STEEL BASEMAT INSIDE THE NUCLEAR ISLAND, VOGTLE 1 & 2 OPERATING UNITS IN THE BACKGROUND, MAY 2013. COURTESY OF GEORGIA POWER.
for construction, and location. Most SMR designs employ advanced passive safety features. The DOE awarded Babcock and Wilcoxs mPower a maximum of $452 million in matching funding to support certification and licensing of its 180 MWe SMR. mPowers anticipated deployment is approximately 2022. The DOE is taking applications for a second SMR design
funding opportunity. Other companies pursuing an SMR reactor design include Holtec International, NuScale Power and Westinghouse. Generation IV reactor designs are in the concept stage, require extensive fundamental research and could be built then commercially deployed beginning in the late 2020s or the 30s. The Generation IV

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International Forum (GIF) was formed in 2001 to bring global resources to bear on Gen IV reactor research and development and to coordinate efforts for best results. There are 12 member countries including the U.S. DOE. According to the DOE, the objectives of the Gen IV designs are: Sustainabilitymeeting clean energy goals, utilizing fuel more effectively. Significantly reduced nuclear waste and long-term stewardship burden. Safety and reliabilitya low level of reactor core damage in the case of an accident and reduced need for offsite emergency response. Economic competitivenesswith a lifecycle cost advantage over other energy sources. Proliferation resistance and physical protection. Six reactor technologies have been selected by GIF for further research and development. Five of the designs recycle nuclear material and produce less waste.
China has begun construction of a prototype Gen IV reactor. Bill Gates has invested in TerraPower, a Bellevue, Washington-based company that is working on the development of a Gen IV technology, the traveling wave reactor (TWR). The TWR is a safer form of
With any future regulatory effort to capture fees for carbon allowances, nuclear powers estimaed share of generation increases anywhere from 7-18%, taking the gains from coal.
breeder reactor that would have no fuel recycling or reprocessing needed because of an intrinsically higher burn-up rate of waste byproduct. TerraPower is working on a prototype reactor to be built around 2022, with an ambitious goal of commercial operation in the late 2020s. The TWR-P would possess all the safety and security benefits of the Gen III+ reactors, but would generate at least seven times less waste than current reactor technology
with 50 times the fuel efficiency. But will we continue to need nuclear power? The National Renewable Energy Laboratory (NREL) recently released a study that was interpreted by some as concluding that renewables such as wind and solar can provide the vast majority of Americas electricity. However, an April Washington Post article analyzed the study and reached different conclusions. The Post stated that the limits of renewable energy reinforce the need to more aggressively explore next generation nuclear technologies that can provide better safety, nuclear waste, and security (non-proliferation) solutions that can be more economical to build. Although renewables are and will continue to be an important part of the U.S. energy portfolio, most experts conclude that they will not be able to dominate the energy mix, though they certainly can become a bigger play. Looking at the long-term energy picture reveals that nuclear power will continue to have a key role. According to
the U.S. Energy Information Administration (EIA), nuclear powers share of the electricity mix is expected to decrease by only 2% by 2040, losing some ground to natural gas and renewables, which will also absorb increases in demand. With any future regulatory effort to capture fees for carbon allowances, nuclear powers estimated share of generation increases anywhere from 7-18%, taking the gains from coal. Global longterm estimates show that nuclear powers overall proportion of electricity generation stays fairly constant, with losses in Europe and gains in Asia, according to the International Energy Agency. In sum, nuclear power will continue to be a significant electricity generator in the U.S. and internationally. Advanced nuclear technologies currently being realized bring significant advantages over current reactors. Future technologies hold even more promise to enhance the safety, security and economics of nuclear power while incorporating nuclear waste solutions.
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A Better Way to Address Aging and Obsolescence

Commercial Grade Dedication & Procurement Solutions
BY BOB COLE, MANAGER, INTEGRATED PRODUCT SOLUTIONS AT AREVA
n the domestic energy industry, nuclear energys value to our country is not only based on building new nuclear power stations, but also includes the ongoing investments in the continued safe and economic operations of existing nuclear energy facilities. This daily nuclear renewal is ensuring that nuclear energy remains a key component in the U.S. energy economy. Regular maintenance, uprates and procurement solutions are a critical component of todays nuclear renaissance, and are vital to sustain safe and reliable operation of the existing nuclear fleet. However, this daily nuclear renewal is not without challenges. Many plants are facing increasing demands related to aging and obsolescent components. Obsolescence, in the context of the nuclear industry, refers to components that are no longer manufactured or qualified to the current regulated standards or are no longer available from their original fabricators. When safety-grade components are not readily available, commercial grade dedication, offered along with procurement engineering, is a comprehensive solution to overcoming aging and obsolescence challenges by ensuring the safe, continued operation of the existing U.S. nuclear fleet. The issue of aging and obsolescence of nuclear components is a high priority for many nuclear facilities in the United States. With low natural gas prices and the evolving economy, the market for new nuclear plant construction has been
SCIENTISTS RUNNING EXPERIMENTS IN THE SOLUTIONS COMPLEX CHEMISTRY LAB.
limited. But over the past three decades the 104 licensed nuclear plants, providing approximately 20 percent of the current U.S. energy mix, have not sat idle. The country relies heavily
on the safe, low-carbon electricity produced by the existing nuclear fleet. Appropriately manufactured and regulated nuclear components are essential to keep these plants running and

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meeting ever increasing safety requirements. Often, the existing US plants have parts that need to be repaired and sometimes replaced before the end-ofplant life. This need presents a unique challenge for the nuclear industry, as many manufacturing firms who provided original parts to the plants in the 1970s and 80s are no longer in business or are no longer appropriately certified to provide nuclear-grade parts. Plant operators and procurement teams are focused on finding a safe and reliable source for the aging and obsolescent parts in their plants. As the most highly regulated industry in the world, the US nuclear industry follows stringent criteria for manufacturing, construction and maintenance of its nuclear facilities. Years ago, when the first nuclear plants were being built in the U.S., many companies had 10 CFR Part 50, Appendix B, quality assurance (QA) programs, per Nuclear Regulatory Commission (NRC) standards. These QA programs ensured
that components used in nuclear plants were manufactured to meet very specific regulatory safety standards. In the late 1970s, with the Three-Mile Island accident and changing economics, many plant projects were cancelled. Some manufacturing companies QA programs, like Appendix B, were cancelled as the construction of nuclear facilities slowed and are no longer offered today. So, in the context of the industrys nuclear renewal, what will facility operators do when they have aging parts that need to be repaired or replaced? And how does the industry ensure that these parts are meeting 10 CFR Part 50, Appendix B quality assurance safety standards? Aging equipment, and the need to replace it, is a challenge affecting utility operations and maintenance. In addition to paying for new components and equipment, poor procurement planning can affect outage and maintenance schedules, resulting in additional
cost overruns for the plant. Utilities have to be diligent in their procurement planning to ensure that aging and obsolete parts will be replaced at the right time, ensuring the safety and reliability of their plants.
ATTACKING THE OBSOLESCENCE ISSUE

So what is the best way to address obsolescence issues to drive the nuclear renewal? There are several options open to utilities. One option is to work with vendors who have equipment already certified through the Appendix B program still in stock and available for purchase. This option can include challenges related to equipment storage, required in-storage maintenance, records management and Quality Inspection problem resolution. Another option is to perform an Items Equivalency Evaluation. In this situation, the plants look for a similar piece of equipment and complete an analysis to see if it will work correctly in the current plant environment. If
there is no equivalent part available, the plants go into replacement part mode, requiring reverse engineering of the component or plant modification to change out the component with one that is not equivalent. Both of these options can require substantial engineering hours and, therefore, high costs. One of the most viable solutions, however, is for the plant to purchase commercial components and have them dedicated to meet NRC manufacturing safety standards. This solution is called commercial grade dedication. Commercial grade dedication is making nuclear plants in the United States even safer. Essentially, this is the process of taking a commercial grade part and replacing it with a safety grade part. The process starts with a technical evaluation. During the evaluation, the safety function, critical characteristics, and acceptance criteria and methods are defined for the component. These are the key inputs needed to judge whether a component meets safety

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grade regulation requirements. Next, a dedication plan is defined, including a process for verifying all critical characteristics. The commercial grade item is then procured and inspected upon receipt. After passing through a verification of the critical characteristics, a final inspection is completed. Finally, a complete data package showing that the component meets safety grade qualifications and the product are sent to the customer. This shows the component has been successfully commercially dedicated and can be used safely in the plant. Commercial grade dedication allows utilities and plants to have replacement options for their safety-related equipment. The process for dedicating components typically takes much less time than reverse engineering or completing plant modifications. There is also a significant cost savings, meaning commercial grade dedication is often a much more competitive option for utilities. From an operations perspective, there
THE SHAKER TABLE AT THE AREVA SOLUTIONS COMPLEX DOES EXACTLY WHAT IT SOUNDS LIKE IT DOES IN ORDER TO RUN EARTHQUAKE SIMULATIONS.

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are no differences between equipment that was manufactured under Appendix B and commercially dedicated parts. Commercial grade dedication is a viable option in meeting plants aging and obsolescence challenges ensuring the safe operation of the existing U.S. nuclear fleet.
SOLUTIONS CENTRALIZED
Although it seems complex, there are options available today for nuclear utilities to address their aging and obsolescence issues. To meet ever increasing safety requirements, it is essential for the industry to ensure that they benefit from the latest technology and innovative solutions. For example, the AREVA Solutions Complex in Lynchburg, Va. is a centralized solution to address aging and obsolescence challenges. As a full-service campus of eight facilities, the AREVA Solutions Complex helps U.S. electric utilities and equipment manufacturers meet ever-increasing safety requirements for nuclear electricity production,
The IPS offering supports the aging nuclear fleet by providing customers with safety-related equipment that is no longer available on the market. AREVAs IPS addresses a number of issues, including: Commercial Grade Dedication Component Testing and Qualification (through U.S. Technical Center at the AREVA Solutions Complex) Procurement Engineering Inventory Optimization Risk Informed Procurement The IPS product line and AREVAs focus on commercial grade dedication saves nuclear utility customers money while helping them meet and exceed the rigorous safety standards of the NRC.
A TECHNICIAN AT WORK IN THE MATERIALS ANALYSIS LAB.
with the unique ability to package engineering and services to extend plant life and improve plant operations. This Complex houses commercial grade dedication and component testing and qualification all under one roof. AREVA is the only NSSS-designed company that is doing equipment CGD, testing and qualification. AREVA plays an ongoing
role in the daily nuclear energy renewal, delivering to utilitys project management expertise and technology innovations to meet obsolescence issues. AREVA also offers Integrated Procurement Solutions, (IPS) which consists of four modules that can be provided separately or integrated to meet nuclear utility supply chain demands.
THE PATH FORWARD

In todays nuclear renewal, proactively addressing obsolescence issues though thoughtful planning and procurement engineering is a key challenge for U.S. nuclear plants. Procurement

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www.PowerGenerationWeek.com
is a strategic player in ensuring the robust infrastructure of the nuclear industry and helps nuclear plants to meet ever increasing safety requirements. Part replacement should be completed at every planned plant outage and through every plant modification package. By dismissing strategic, long-term planning and emphasizing a short-term view, nuclear operators could affect outage and maintenance schedules and incur unnecessary costs for their plants. Nuclear utilities that plan ahead to address obsolescence issues at their plants avoid costly delays and avoid expediting mode for nuclear components. The most proactive U.S. utilities in addressing aging and obsolescent nuclear equipment issues realize that their projected needs could exceed their projected infrastructure to meet those needs. Not having the correct parts can cause outage schedule delays, increase costs or lead to cost overruns. Instead of expediting the dedication of nuclear components, these utilities
work proactively with procurement engineers to lead the way in improving safety, reliability and plant availability, and in addressing obsolescence in their nuclear plants. The bottom line is that it is very simple for utilities to overcome these issues. Our existing fleet ramped up output while maintaining safe and secure operations by continually upgrading technology and capabilities and those activities continue today. Most of todays nuclear plants will operate for 60 years, providing long-term, safe, reliable, clean base load electricity. With the proper planning and with partners like AREVA and PKMJ, utilities can be sure that obsolescence and aging challenges are being addressed in the safest, most competitive manner available, meeting all regulatory and industry requirements. In the process, they will be making obsolescence a nonissue for their operations and ensuring the sustained supply of safe, clean, round-the-clock power to achieve Americas clean energy vision.
POWER GENERATION WEEK

4 Events. 5 Days. 1 Roof.
NOVEMBER 1214, 2013 | ORANGE COUNTY CONVENTION CENTER | ORLANDO, FL, USA
Covering every aspect of the power generation industry, POWER-GEN International, NUCLEAR POWER International, Renewable Energy World Conference & Expo North America and POWER-GEN Financial Forum converge in 2013 to form POWER GENERATION WEEK. Beneft from fve days packed with pre-conference workshops, technical tours, over 70 conference sessions, panel discussions, three exhibition days and multiple networking events. Like never before, youll have access to nearly every facet of the market all under one roof.
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Coupled Multiphysics Simulation of an Underground Nuclear Waste Disposal Site

Abaqus FEA is used to analyze design options for nuclear waste disposal scenarios
BY, DEEPAK DATYE, SENIOR ENGINEERING SPECIALIST, GEOMECHANICS, DASSAULT SYSTMES
uclear power plants generate spent nuclear fuel as a byproduct of power production. Since the waste remains radioactive for centuries, the disposal method must Figure 1 remain safe for the long term as well. Underground burial is considered one of the most promising strategies. To meet safety standards, the storage site must be geologically stable and the containment needs to minimize any ground water contamination. For an underground disposal facility, bentonite and similar clays are used to encase disposal vessels. These materials have low permeability, expand when exposed to groundwater, and help to maintain a good seal.
However, other physical processes including heat generation from residual radioactivity, heat transfer, and material swellingcan induce stress in the waste containment structure and must be understood, as well, in order to develop safe long-term disposal schemes. A number of different approaches in nuclear waste disposal are being
researched, with the primary goal being the prevention of leakage. Burial designs can be assessed by analyzing the likely outcomes of potential failure modes using finite element analysis. The fully coupled temperaturedisplacement-pore pressure capability in Abaqus/Standard can be used to perform such simulations. For this study, the disposal method being modeled included a waste canister containing spent nuclear fuel
Figure 2
Plug
Clay Canister

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Figure 3
Figure 4
100 Temperature in C 80 60 40 0.001 10000. 1 1000. 0.01 0.1 100. 10.
Time in years
NT11 +9.211e+01 +8.389e+01 +7.640e+01 +6.959e+01 +6.388e+01 +5.772e+01 +5.257e+01 +4.778e+01 +4.361e+01 +3.972e+01 +3.617e+01 +3.295e+01 +3.001e+01
was used between the clay and plug. The analyses used the fully coupled temperature-displacement-pore fluid flow capability in Abaqus/Standard. The model was restrained from movement normal to its outer boundaries. As a starting condition, it was assumed
To meet safety standards, the containment storage site needs to be geologically stable and must minimize any ground water contaminations.
that the clay and plug were partially saturated, with a saturation value of 0.3 at the top of the plug. The ground water level was assumed to be 3 meters below the bottom of the hole in which the assembly was placed. The clay and the plug were considered to have a void ratio of 0.5. And the initial temperature was specified to be 30 degrees C in all regions of the model. The model did not include the interior details of the canister. The increase in canister temperature aris-
located in a cylindrical cavity drilled deep in the bedrock. The cavity was filled with clay and sealed by a plug comprised of concrete, rock, or a similar material (see Figure 1). Abaqus FEA was used to create an axisymmetric model of the scenario (see finite element mesh in Figure 2), although a full three-dimensional
model could be used if more detail is required. The canister, rock, and plug were modeled as linear elastic. The clay, which was assumed to be inelastic with a negligible friction angle, was modeled using Mises plasticity. All four components (canister, rock, plug, clay) were considered thermally conductive. Additionally, the clay and the plug per-
mitted pore-fluid flow. A sorption relationship that defined saturation versus capillary pressure was specified for the clay and the plug. The expansion in the clay that results from water absorption was modeled using the softwares moisture-swelling capability. Frictional contact interactions were defined between all components, and a tie constraint

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ing from radioactivity was specified by temperature boundary conditions. Note that after a relatively quick rise to 95 degrees C, the temperature decreased slowly over several millennia (see Figure 3). Mixed boundary conditions, in which the heat flux is a function of temperature, were defined on the top surface of the plug and over all boundary surfaces of the bedrock. This allowed for the generated heat to dissipate away from the burial site. In this study, two separate cases were analyzed over a timeframe of 10,000 years. Case 1 illustrated the response due to temperature variation with no water ingress (no change in the groundwater level). For this scenario, the pore pressure at the top of the plug was restrained to its initial value of -100,000 Pa for the full analysis time. Case 2, on the other hand, included the effects of water ingress at the clay-rock interface and was assumed to start at year 100 and continue until year 1,000. During this time-span,
Figure 5
Figure 6
POR CPRESS +3.100e+05 +2.842e+05 +2.584e+05 +2.325e+05 +2.067e+05 +1.809e+05 +1.550e+05 +1.292e+05 +1.033e+05 +7.751e+04 +5.167e+04 +2.584e+04 +0.000e+01 +6.500e+04 +5.417e+04 +4.333e+04 +3.250e+04 +2.167e+04 +1.083e+04 5.859e03 1.083e+04 2.167e+04 3.250e+04 4.333e+04 5.417e+04 6.500e+04
the groundwater level was simulated to rise 10 meters at a constant rate starting 3 meters below the bottom of the hole at 100 years, reaching the top surface of the plug at 1,000 years, and then remaining constant. For both cases, the pore pressure boundary con-
ditions were specified using the DISP user subroutine in Abaqus. Each analysis covered a period of 10,000 years. In Case 1, simulation results showed the temperature in the canister reaching about 92 degrees C at 32.5 years following waste burial (see Figure
4). Concurrently, a significant rise in temperature occurred in the surrounding clay and rock. The contact pressure on the rock is shown at 4 years 10 months (see Figure 5). Additionally in Case 2, the clay expanded within the cavity as it absorbed

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Figure 7 Figure 8
S, Mises (Avg: 75%) +7.687e+07 +3.401e07 +1.505e07 +6.660e06 +2.947e06 +1.304e06 +5.770e05 +2.553e05 +1.130e05 +4.999e04 +2.212e04 +9.788e03 +4.331e03
SAT +1.000e+00 +9.045e01 +8.182e01 +7.401e01 +6.694e01 +6.055e01 +5.477e01 +4.954e01 +4.481e01 +4.054e01 +3.667e01 +3.317e01 +3.000e01
water, leading to higher stresses. These stresses can compromise the integrity of a design and need to be accurately estimated. Figure 6 shows the pore pressure in the clay as it became saturated with water, while Figure 7 shows the associated changes in saturation.
Further results for Case 2 showed high Mises stress values at the interface between the fully saturated and partially saturated regions (see Figure 8). In the model, the newly saturated clay region expanded due to moisture absorption, and the region that had not
yet reached a saturated state occupied a lesser volume in comparison. This mismatch led to high Mises stresses in that region, which can persist for the full time-span of the analysis. This study demonstrated how the contact and fully coupled temperaturedisplacement-pore fluid flow analysis
capability in Abaqus/Standard can be used to simulate long-term behavior of nuclear waste repositories. Further detailed analyses could include complete three-dimensional geometry, plasticity models specific to the clay barrier, inclusion of canister details, fluid permeation in the rock, and creep behavior.
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A Seat at the Table and Skin in the Game

SPECIAL REPORT: A CONVERSATION ON ALLIANCE CONTRACTS WITH DAY & ZIMMERMANN AND TVA
BY DENVER NICKS, EDITOR
ower producers across the industry are under pressure from flat electricity usage growth rates and the need to comply with environmental regulations. The nuclear industry in particular has to contend with the high cost of new build and safety regulation compliance. In the search for cost savings, some power producers have turned to outsourcing maintenance and outage services to third parties. These long-term agreements, known as alliance contracts, can yield substantial savings with added benefits like workforce flexibility and the shared knowledge that comes with a long-term partnership. Since 1995, Day & Zimmermann has maintained a strategic partnership with the Tennessee Valley Authority to oversee modification, outage, and maintenance work on the TVAs Browns Ferry, Sequoyah, and Watts Bar nuclear plants. Nuclear Power International caught up with Preston Swafford, Executive Vice President and Chief Nuclear Officer at TVA, and Mike McMahon, President of Day & Zimmermann ECM, to discuss the ins and outs of alliance contracts. NPI: Considering the economic environment and current outlook for power producers. What are the advantages of an alliance contract? Preston Swafford: The intent of having the alliance is to start to build a relationship with a single partner. We did receive the lowest competitive bid of qualified corporations from Day & Zimmermann. So once that part was behind us, we built this alliance to really start improving our safety performance at the sites. Having one vendor operate with one hard hat at all three of our sites gives a tremendous amount of continuity. So if you learn a lesson from one of the sites you can quickly take it and
MIKE MCMAHON, PRESIDENT, DAY & ZIMMERMANN ECM
PRESTON SWAFFORD, EXECUTIVE VICE PRESIDENT AND CHIEF NUCLEAR OFFICER FOR TVA
transport it to all three sites, thus saving us from having the same event happen at multiple times. We also, by this alliance, get a return of people. Every time you bring in a new team, they dont know your procedures, they dont know your processes theres a lot of upstart cost. And in the end all of that ends up being
a fairly costly model with a fair number of human performance mistakes that get tied to it because they just dont know our systems. So the flexibility is also another key part of the alliance. Theyre in all three of our sites, they can move resources from one to another as needs arise, theyre going to know our

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processing rules, etc., so their up time to get going is fairly short. And finally, the whole part of the team. Outages are successful when teamwork comes into play, and in order to be a teammate they have to understand our programs our processes, they have to understand our facilities, they have to understand our people. Weve seen over the years now a continual growth on Day & Zimmermanns part of learning all the ins and outs of doing business with TVA and theyre becoming a bigger partner at the table. Our outage performance is not where it needs to be but weve had a huge amount of recovery work in all three of our plants, its been a primary focus for four years, and weve done just an awful lot of work and Day & Zimmermann has had a seat at the table with us. Were about to enter into another chapter where were going to shave days off the outage duration and things like that. And the role of Day & Zimmermann in that arena for us, from an alliance standpoint, is critical. They start showing up
at the table and making suggestions to meet those new sets of goals. Mike McMahon: It just wraps around flexibility and cost effectiveness. Were a variable resource that comes in and is managed with the TVA team and with the performance, safety and process and procedure knowledge, the teaming arrangement - lets avoid having our first mistake and if we have one lets never repeat it. It allows TVA to have less overhead than they would have if they had multiple contractors or new contractors each time, and it allows them to have better and more intrusive contractor oversight. NPI: How does the cost of O&M compare to the cost you would have incurred had you done the work yourselves? PS: Good question. If we could do the work ourselves we would, by definition. What were really saying is we have short periods of time, like refueling outages, where my steady state
staff cannot execute that much work. If they could frankly I would not give it to a contractor, Id keep all work in house, but because its a flexible work force and were able to go up and down in head count it is a cost effective model for these short duration outages where I need a large number of contractors for a short period of time. Weve seen human performance errors and mistakes made by the vendor come way down, so the benefit of the alliance is getting to have a real teammate at the table and learning from outage to outage to keep getting better. We are starting to see those types of benefits, which was the genesis of this alliance agreement in the first place, to build that repetitive assurance of a team thats going to be able to execute per your procedures and plans and not cost you a lot of downtime due to human performance errors. NPI: What should a utility consider before getting into an alliance contract?
PS: One, youve got to craft this thing out to get skin in the game by the vendor, because first of all what youre kind of signaling is we dont have to keep putting RFQs together and they dont have to keep responding outage and to outage, which is overhead in administrative. But on the other hand youre kind of sending a signal that this is their work and should they execute they will continue to get the work. Theres plusses in that but obviously if there arent some checks and balances from runaway costs and other hidden type issues there can be, Im going to say, not malicious, but there can be gaming or other things that come out, So when you up front build your Ts and Cs you want them to share in the outcome. Part of the alliance is that its ok to have the vendor make a profit. You cant sit there trying to be just a chisel because youre in it for the long haul. What you got to do is recognize that they need to make money but they need to make it by the success in the total, if you will, by getting them skin in

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the game, sharing in the outcomes, both penalties and rewards. Another attribute that you want to build in is your executive alignment and oversight built into this we purposely took this away from the plants and brought it to corporate centrally so that the emotion of an event or something at a plant doesnt carry into an emotional decision. And in order to make sure that all works right the executive alignment around this is critical. Mike and myself meet frequently. His staff underneath him, his regional VPs and senior VPs, have been down and talk quite regularly, so I always have a pulse and they give me weekly reports of the performance of their crew. And if you read between the lines theyre doing a pretty good job of telling us where were kind of hosing them. NPI: Mike, can you describe the scope of the alliance agreement? MM: Were contracted to do full scope maintenance and modifications work at all six of the TVA units and its a pay per performance contract. We make our
profit based on a detailed report scorecard, which has got some similarities at every outage or every location, flexible to attack the individual needs of a particular scope of work or particular outages concerns or things of that nature. Human performance, cost versus quality, schedule adherence, safety are always parts of the detailed report cards, but depending on the complexities of a particular project there might be other report card additions in there and thats how we make our fee. We drive towards continuous improvement in the performance of our people and we drive towards reduced costs in the repetitive nature of some of these tasks that go from outage to outage. Thats how a contract drives our team work together, drives our success together and allows the contractor to, to use Prestons, words, have skin in the game, where we make profit on performance and we lose when we do not perform. NPI: Preston, how does TVA evaluate D&Zs performance?
PS: I have a vice president who is responsible for outages and under him he has several players that are kind of contract administrators. Theyre kind of a key focal point with Day & Zimmermann, so Mikes staff will interface with these personnel and they then, in concert with the site, build a key report card to handle the performance fee that Mike just mentioned. So were a part of crafting that, tailored outage to outage, to make sure that it meets our needs and that if we meet these goals well feel good about paying that award and that fee for their performance. NPI: What procedures are in place to help manage conflict? PS: If goals arent met, where indicators arent greenthey may be red then we wouldnt pay those performance awards and if theres a dispute where Day & Zimmermann believe we should and my staff believes we shouldnt, that rolls up to the executive committee, where we will meet and talk through it. I typically see my role as to make sure I
take a high road behavior on it all. Im not into chiseling Day & Zimmermann. I want them to be successful but I really need them to be successful as Im successful. So far in four years I think only one or two minor events had to come up for dispute resolution. I think there is a vehicle if it is severe enough where you can get through he executive committee and get to some kind of mediation process. To date weve not had to exercise that, but theres been a few, Im going to say, performance issues where there were significant haircuts made, but with Day & Zimmermann on it they recognized it like we did and for the most part it was agreed and appropriate. NPI: Are there any drawbacks or particular challenges unique to an alliance agreement. PS: The Ts and Cs are really critical. The overall alignment and agreement in the spirit that we put this together under, Im very happy with, I believe its right. But there are some things where

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for example our process or procedures may cause inefficiencies that they have to comply with. What Im hoping to get to is where theres enough skin in the game and enough teamwork built up where these types of inefficiencies are really being called out by Day & Zimmermann and theyre pushing as hard as I am to fix them and for a total result outcome being even more dominant in their fee, as opposed to just execution of the agreed upon activities. I think that the next chapter for the alliance is to really look at the total, not just that piece Day & Zimmermann does, to ask, are we gaining where we want to there? and well see. Its the next chapter of innovation on it, but you spend enough time with each other, build enough teamwork with each other and theyre as apt to see the opportunities as our own people are. Thats when we can get into our corrective action programs and really get them addressed. Just in the Ts and Cs to make sure that its there: real skin in the game.
NPI: Mike, anything youd like to add? MM: The last four years weve been, to use Prestons words, recovering the plant, upgrading the equipment and so on and so forth and now were going to get into a period of typical outage execution, and theres a different set of values, or added value, that a contractor can bring. Were one of the two largest maintenance and modifications contractors in the nuclear business. We work at a lot of other facilities and we see challenged practices and we see better practices, and its incumbent upon us to have a seat at the table with TVA and be a purifier, to push back on procedures that weve seen that are more effective at other locations, and try to drive these outages to shorter durations and better efficiencies. So, as Preston said, well have to readjust the score card to drive the behaviors that are needed for the future model versus the model weve been dealing with in the past.
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9-11
Emergency Preparedness Training Course Hyatt Regency Baltimore Baltimore, Maryland Nuclear Energy Institute FLEX/ EP Integration Workshop Hyatt Regency Baltimore Baltimore, Maryland
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