Mike Skaggs, Senior Vice President of Watts Bar Operations & Construction, discussed the completion of Watts Bar Unit 2 nuclear power plant. He summarized that the original project was delayed and over budget due to issues with leadership, cost estimating, project execution, and oversight. A revised estimate and schedule were developed based on lessons learned. Key priorities for completion included establishing experienced leadership, understanding the full scope of work, developing independent cost and schedule monitoring tools, and providing oversight of critical metrics. The project is now on track to be the first new nuclear plant of the 21st century in the United States.

1. Mike Skaggs
Senior Vice President,
Watts Bar Operations & Construction December 2, 2014

2.  Serving the 9 million people of
the Tennessee Valley region
through
– Energy that is safe, clean,
reliable
– Environmental stewardship of
natural resources
– Economic development that
brings good jobs to the region
and keeps them here

5. Fiscal Year 2014 Fuel Costs
0
6
31
43
58
68
0
10
20
30
40
50
60
70
80
Hydro Nuclear Coal Gas Purchased
Power
Off System
Wind
Purchases
$/MWh
Fuel Source

7.  Determined project would not meet in-service date of
October 2012 or budgeted cost estimate
 Causes of schedule delays and cost overruns
‒ Leadership
‒ Estimate
‒ Execution
‒ Oversight
 Revised estimate and schedule developed based on detailed
analysis and lessons learned

8.  Establish a staffing strategy that employs a highly
experienced core leadership team with capabilities
aligned with unique project characteristics
 Put right people in right jobs
 Use appropriate staffing approach
 Engage the workforce

9.  Understand work to be done
 Develop estimate based on detailed
analysis and lessons learned
 Incorporate an independent
assessment of external
project risks into estimate
 Ensure buy-in of cost and
schedule

10.  Develop clear execution strategy at the start
 Establish and use independent, integrated schedule and cost
monitoring tools
 Establish a process to effectively control scope changes
 Measure what needs to be achieved

11.  Provide for independent verification of performance data
 Implement cross-functional oversight to track critical key
performance indicators and risks
 Assure active risk management processes are in place and
continually assess risk exposure and mitigation effectiveness

12.  Safe and high quality
 Design basis fidelity with Watts Bar
Unit 1 – the unit currently in operation

13.  Systems, structures, and components
made like new

15.  Over 30 million work-hours
without a lost-time incident
 Greater than 97% Quality Control
Acceptance Rate
 Meeting cost and schedule
expectations

17.  Open vessel testing successfully
completed
 Cold and steam generator
hydrostatic testing successfully
completed
 Hot functional
testing and
fuel load
preparations
in progress

18.  Pilot for industry
 Designs for modifications complete
 New Flexible Equipment Storage
Building constructed
 New water storage tank built
 Required equipment onsite

20.  Protect safe, reliable operation
of Watts Bar Unit 1
 Upcoming testing milestones
 Emergent work during testing
 Dual-unit operational readiness
 Regulatory issues

21.  Staffing and training
 Demobilization plan
 Outreach initiatives

22.  Safety, quality, cost, and schedule targets
being met
 Completing and readying systems, preparing
for dual-unit operations
 Complex work and challenges remain
 On track to be nation’s first new nuclear
generation of 21st century
 Moving forward with diligence and using
lessons learned
 Responsibility to complete the project
the right way – safely and with quality