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Managing Nuclear Power Stations for Success Gregory Smith Senior Vice President Darlington Nuclear Station Ontario Power Generation to the Canadian Nuclear.

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Presentation on theme: "Managing Nuclear Power Stations for Success Gregory Smith Senior Vice President Darlington Nuclear Station Ontario Power Generation to the Canadian Nuclear."— Presentation transcript:

1 Managing Nuclear Power Stations for Success Gregory Smith Senior Vice President Darlington Nuclear Station Ontario Power Generation to the Canadian Nuclear Society June 12, 2006 Toronto, Ontario

2 CONTENTS OPG Nuclear Performance Update Continuous Improvement Strategy Challenges Going Forward New Nuclear Wrap Up

3 OPG Nuclear: 2005 Highlights Darlington -- best performing multi- unit nuclear station in Canada; 2nd consecutive year Four OPG nuclear units among 10 best performing CANDUS in 2005 Pickering A, Unit 1 returned to service Pickering A receives Five Year licence from CNSC Decision made not to return Pickering A, Units 2 & 3 to service New Mandate negotiated with Shareholder Pickering A and B Darlington

4 OPG Mandate Our Mandate Targets Nuclear Improvement Operate with a commercial focus Improve performance -- emphasis on nuclear Benchmark against the best Expand generating capacity - hydroelectric

5 OPGs Nuclear Performance is Improving Production (TWh) Capability Factor (%) Forced Loss Rate (%) All Injury Rate (#/200,000 hrs worked) Nuclear Performance Index Event Free Day Resets 4033

6 Decision not to Refurbish Pickering A, Units 2&3 was a Sound Business Decision Consistent with our Mandates commercial focus Refurbishing Units 2 & 3 was technically feasible… …but commercially unjustified due to higher financial risk Units 2 & 3 were in poorer condition than Units 1 & 4 Enhanced OPGs credibility Allows OPG to continue to improve performance at its 10 operating units Pickering A (foreground)

7 People are the Key to Achieving our Performance Goals Nuclear energy is a people intensive business. Improve the performance of the people and you improve plant performance Pickering Darlington

8 has Significant Progress in Improving Human Performance OPG has made Significant Progress in Improving Human Performance Event free-day resets are a key HP metric Events = human actions with negative consequences Fewer is better From 223 to 33 in four years – 84% reduction

9 OPG is Committed to Continuously Improving its Nuclear Operations Maintain Focus on Excellent Safety Performance Put People First Improve human performance, leadership & productivity Attract highly qualified young people Improve material condition of the plant Reduce forced outages through improvements in equipment reliability Optimize planned outages Reduce maintenance backlogs Mitigate technological risks through comprehensive inspection & testing programs Ensure availability of parts and proactively address obsolescence Build Effective Leadership Behaviours

10 Each OPG Nuclear Station Has a Specific Performance-Improvement Strategy Path to Excellence Pickering B Darlington Navigator EACH STRATEGY IS COMMITTED TO IMPROVING Human Performance Station Reliability Leadership Behaviours

11 Darlington Maintain performance as Canadas top performing multi-unit nuclear station through: improved human performance improved plant performance leadership behaviours Move to three-year outage cycle Outage Work at Darlington, Unit 3 Human Performance - Station Reliability - Leadership Behaviours

12 Pickering B Achieve and sustain 85% capacity factor and 5% forced loss rate by 2007 Complete inspection & maintenance of all fuel channels (SLAR) Move to 40 day outages Pickering B, Unit 8 Outage Human Performance - Station Reliability - Leadership Behaviours

13 Pickering A Continue to improve plant reliability through: improved equipment reliability preventive maintenance reduced backlogs Successfully manage safe- storage of Units 2 and 3 Feeder Tube Inspections at Pickering A Human Performance - Station Reliability - Leadership Behaviours

14 Challenges Going Forward Feeders Supply Chain Life Extension Human Resources Pickering B, Unit 6 Planned Outage

15 Anticipate replacement in planned outages Mitigation strategies: Inspections Advanced Stress Analysis Titanium Injection Weld Overlay Advanced Cut & Weld Tooling Management strategies: Advancing feeder replacements where beneficial Aligning business plans with most likely replacement schedule Three year outage cycle Feeder Tubes

16 Improve procurement engineering and purchasing Improve materials planning and align with the outage and on-line work management processes Implement process improvements to better align procurement with the safety significance of components Maintain qualified supplier base for work programs Supply Chain

17 Life Extension Maintain Community Confidence/Licence to Operate Complete Plant Condition Assessment for Pickering B in 2007 Begin Environmental Assessment process Undertake safety reviews required by CNSC Conceptual engineering for replacement of components such as: feeder tubes, fuel channels; steam generators Project plan and business case must be approved by OPG Board Pickering B life-extension decision needed by 2008 to give time for engineering, planning, procurement Pickering B (foreground) Darlington

18 Strengthening Human Resources…because OPG needs highly qualified employees to support operations and nuclear life extension Workforce Demographics over 30% retirements at OPG nuclear in skilled trades and technical staff in next 5 years Life-extension/Refurbishment/New Build activity expected to increase in North America/worldwide Intense competition for qualified people is expected Pickering A, Unit 1, refurbishment

19 Strengthening Human Resources…through Leadership Development WANO programs visits to high-performance plants rotations and secondments Leadership behaviours delivering on commitments acting with integrity Recruitment visible presence in the community, high-schools, colleges, universities Darlington Employees

20 New Nuclear is not part of OPGs mandate OPG sites could be considered as possible sites for nuclear new build If shareholder asks, OPG would consider participating in new nuclear based on: our expertise in earning regulatory approvals; operating nuclear facilities. Bottom Line: Performance Speaks for Itself Performance excellence key to participating in new nuclear New Nuclear?

21 Summary: OPGs Approach to Managing Nuclear Assets Build exceptional human performance Focus on understanding plant condition Implement preventative, not reactive, maintenance Move to shorter outages Enhance inventory/procurement management Plan ahead Learn from others

22 Managing Nuclear Power Stations for Success Gregory Smith Senior Vice President Darlington Nuclear Station Ontario Power Generation to the Canadian Nuclear Society June 12, 2006 Toronto, Ontario


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