TVA’s Integrated Project Delivery for Nuclear Projects The Challenges of Transitioning to Long Term Major Nuclear Plant Construction Mark J. Hellstern, CAPT USN (ret) General Manager, NGDC Oversight Mark J. Hellstern, General Manager for Nuclear Generation Development and Construction Oversight. I have been in the position for one year, and I provide the quality assurance, project assurance, and benchmarking oversight for all NGDC projects. Additionally, my group identifies process improvement and technology enhancements/tools to improve project planning, execution, and monitoring. Previously, I served 26 years in the Navy as a Commanding Officer, Reactor Officer, Major Project Manager, and most recently, at Naval Reactors, as the senior oversight advisor for all aircraft carrier construction, refueling, modernization, and operations. Tennessee Valley Authority provides electrical power to the Tennessee Valley through nuclear, fossil, coal, and river operations. TVA also effectively manages the Tennessee River System for commercial, private, and environmentally responsible use.

TVA’s Integrated Project Delivery Nuclear Generation Development and Construction (NGDC) Genesis and Development Late 2007: Established NGDC and a small oversight group April 2009 Self-Assessment: need for a project process standardization, formal governance and oversight, risk management, and process improvement. Late Summer 2009: INPO cited a strength in the designation of NGDC to provide major construction activity separate from Nuclear Power Group Operations November 2009: TVA stands up a Project Management Peer Team to standardize Fleet project management. FY 2010/11: NGDC Project Manual implementation, Project management software integration, key performance indicator development, and piloting initiatives Late 80s, TVA transitioned from construction capable to an operating company Institute of Nuclear Power Operations (INPO) cited the NGDC organization as a strength, because it allows the Nuclear Power Group to concentrate on operational excellence of the operating units NGDC was designed to tackle large outage projects and major construction for NPG

NGDC Projects Watts Bar Unit 2 - 2012 Five year project Budget of $2.5 Billion Current staffing – 2,623 Licensing process on schedule Watts Bar Completion project (65% complete when started). Being completed as an EPC project. Bulk Construction being conducted in a “Stick-Build” approach. Some perspective: For every $1 spent in modular construction, $3 is spent in integrated construction, and $8 is spent in “stick” construction working off bulk work. BIM is more efficient than modular.

Bellefonte Current Status NGDC Projects Bellefonte Current Status S-COLA for AP1000 Construction permits reinstated Preservation of assets Potential Bellefonte Completion project of one unit or new AP1000 Unit Looking at the Bellefonte potential completion project (85% complete in 1985, but, will more likely be 65% complete at construction), NGDC desires to move toward a modular approach with integrated project management as an owner-managed project with a “best athlete” approach to constructors. Longer term focus of new nuclear builds over the next 20-30 years and the need for construction expertise within the organization.

NGDC Strategic Projects Several Strategic Outage Projects to include: Watts Bar Re-rack Sequoyah Steam Generator replacement Browns Ferry Extended Power Uprate (EPU) License renewal Modular Reactors, etc. For new nuclear builds, NGDC is focused on BIM approaches and definitely modular construction with an owner-managed project with excellent partnering arrangements with the NSSS contractor and other major contractors. Strategic projects are designated through Licensing, the Chief Nuclear Officer, NGDC Senior Management, and the COO

Integrated Project Team Manual Standardization of TVA’s project processes incorporating benchmarking of industry best practices. 42 processes. Benchmarked NASA, U.S. Navy, CURT, CII, APQC, state DOTs, and other utilities Incorporates regulatory, environmental, TVA, and business unit policies, procedures, and processes Stresses team building, process improvement, self-assessment, integration, and accountability Signed out in April 2010. Being piloted on Bellefonte and Watt’s Bar rerack projects.

Facilities Management Discipline Communications Corrective Action Integrated Project Team Manual Safety & Health Environmental Program Human Resources Diversity/Inclusion Training/ Qualifications Facilities Management Discipline Communications Corrective Action Operating & Construction Experience Self Assessment Employee Concern Independent Oversight Quality Project Work Management Procedures/ Records Security Program Licensing Legal/Regulatory Compliance Info Tech/ Cyber Security Transition to Ops Financial Government & Accounting Contract Surveillance Project Management Project Controls Conservation & Energy Efficiency Project Risk Management Continuous Improvement Change Management Safety & Environment Project Management People Project Management Performance Improvement Work Management Work Management

NGDC Oversight Standard Governance and Oversight procedures Blocking and Tackling: Robust, intrusive Quality Assurance Oversight Project Assurance (cost, schedule, scope) assessments based on INPO assessment process: data analysis, observations, interviews Knowledge/Risk Mgt with project approval process tied to risk plans. Business Planning. Implement Knowledge Capture process with push/pull of knowledge for present and future projects

NGDC Project Management Integration FY 10 Initiatives Pilot of the Project Manual on Bellefonte/Watt’s Bar Rerack projects. Successful implementation of behavior-based NGDC safety programs Incorporating Primavera 6 in Bellefonte as a pilot for a Fleet solution. Implement a mature Risk and Opportunity Management Key Performance Indicators, which roll-up for senior management into INPO’s nine principles of construction excellence. Approving a pilot for a wireless site at Bellefonte with electronic configuration management and work flow tools Approval for a Fleet Knowledge Management System The Safety KPI effort was a proof of concept for the new KPI waterfalls for the other 8 principles of nuclear construction excellence. A risk software program for risk-based decision-making at project phases with off-ramps and kill-points Standing up two Knowledge Sharing Networks in FY 11. Nine Principles of Construction Excellence: Leadership Alignment on a commitment to excellence with owners and contractors Strong First Line Supervision Personnel are Qualified Schedules are realistic and understood Nuclear Plants have Special Requirements Personnel Safety is highly valued Plant is Built as Designed Deviations are ID’d, Communicated and Resolved Transition to Plant Operations is started early

Project Management Integration System (PMIS) eFMS Project Portfolio Powerplant - Fleet Document Mgmt (BSL) Work People HRIS elance ATIS Collaboration Tools (Sharepoint/Outlook) Configuration Mgt Maximo Risk System Schedule Primavera 6 Estimating Fleet Solution eWorkplace Performance KPIs/Dashboards Knowledge Mgt System Contracts Compliance Wireless Infrastructure Wireless Infrastructure Project Management Cost Processor/EVMS Conceptual Design

Challenges Cultural resistance to change management Requires consistent Senior Management focus and support for change implementation and funding Mature work force Accurate metrics Changes required in owner-contractor relationships Develop a self-critical culture focused on process Not a self-learning organization … yet Lack of historic knowledge management Developing trained, experienced future project teams Ability to self-assess Needs robust oversight of processes including quality assurance (regulatory requirements) and project assurance processes. Accurate metrics are the key.

Long Term NGDC Goals Standardized TVA Fleet project management processes Nuclear construction conducted using BIM and extensive modular construction processes Target a 48 mon new nuclear construction schedule Target $$/kW overnight cost for new nuclear construction Cradle-to-grave electronic configuration management Standardized TVA Fleet manual, project management tools, risk management, knowledge management, fleet knowledge sharing networks for key business processes, and project approval process. Targeting $4000/kW (zero carbon emission requirements under CAP and trade) through process mapping and process improvement in the construction phase based on CAP and trade. Work with ASME, NEI, NRC, INPO to develop electronic processes for QA records and N-stamps