Columbia IPR 2 and Cost-effective Operation Brent Ridge VP - - PowerPoint PPT Presentation

columbia ipr 2 and cost effective operation
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Columbia IPR 2 and Cost-effective Operation Brent Ridge VP - - PowerPoint PPT Presentation

POWERING A CLEAN ENERGY FUTURE Columbia IPR 2 and Cost-effective Operation Brent Ridge VP Corporate Services/CFO/CRO Kent Dittmer February 15, 2017 Asset Manager/Controller Phone Bridge: 1-203-692-7388 Passcode: 8405158# Please mute/unmute


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POWERING A CLEAN ENERGY FUTURE

Notice: This document is a public record and will be released to the public. Therefore it shall not contain Confidential/Proprietary/Trade Secret Information (“Confidential Information”) of organizations such as the Institute of Nuclear Power Operations, the Utilities Service Alliance, Inc., or the World Association of Nuclear Operators.

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Columbia IPR 2 and Cost-effective Operation

Brent Ridge VP Corporate Services/CFO/CRO Kent Dittmer Asset Manager/Controller February 15, 2017 Phone Bridge: 1-203-692-7388 Passcode: 8405158# Please mute/unmute using *6 WebEx meeting: Join the meeting Meeting number: 992 984 422 Meeting password: UMkSC382

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SLIDE 2

POWERING A CLEAN ENERGY FUTURE

Notice: This document is a public record and will be released to the public. Therefore it shall not contain Confidential/Proprietary/Trade Secret Information (“Confidential Information”) of organizations such as the Institute of Nuclear Power Operations, the Utilities Service Alliance, Inc., or the World Association of Nuclear Operators.

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SLIDE 3

POWERING A CLEAN ENERGY FUTURE

Notice: This document is a public record and will be released to the public. Therefore it shall not contain Confidential/Proprietary/Trade Secret Information (“Confidential Information”) of organizations such as the Institute of Nuclear Power Operations, the Utilities Service Alliance, Inc., or the World Association of Nuclear Operators.

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Topics

  • Columbia’s Long Range Plan (LRP) and O&M

Reductions

  • Long Term Plan – Cost Effective Operation

– Focused Initiatives – Staffing Projections – Delivering the Nuclear Promise

  • Operational Excellence
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SLIDE 4

POWERING A CLEAN ENERGY FUTURE

Notice: This document is a public record and will be released to the public. Therefore it shall not contain Confidential/Proprietary/Trade Secret Information (“Confidential Information”) of organizations such as the Institute of Nuclear Power Operations, the Utilities Service Alliance, Inc., or the World Association of Nuclear Operators.

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Changes to Columbia’s LRP

  • O&M Net Decreases over 10-Year Period

– Cost-effective Operation (CeO) and IPR Reduction Plan – Reduction in risk reserve – Reduction in escalation for non-labor

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SLIDE 5

POWERING A CLEAN ENERGY FUTURE

Notice: This document is a public record and will be released to the public. Therefore it shall not contain Confidential/Proprietary/Trade Secret Information (“Confidential Information”) of organizations such as the Institute of Nuclear Power Operations, the Utilities Service Alliance, Inc., or the World Association of Nuclear Operators.

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IPR O&M Expense Reductions

  • $7M annual average reduction made in initial

IPR

  • $6.3M annual average reduction with IPR 2

Review

 Continue cost reduction through attrition  Near-term O&M Non-Labor Reductions in rate case period  Reduced O&M Risk Reserve  Annual assessment of escalation  Reduced outage duration: 40 to 35 days in FY19

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SLIDE 6

POWERING A CLEAN ENERGY FUTURE

Notice: This document is a public record and will be released to the public. Therefore it shall not contain Confidential/Proprietary/Trade Secret Information (“Confidential Information”) of organizations such as the Institute of Nuclear Power Operations, the Utilities Service Alliance, Inc., or the World Association of Nuclear Operators.

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  • $13.3M annual average 2018-19 rate period

reduction

Scenario Columbia

BP-16 - 2016-2017 Rate Case 292.7 CGS FY 2017 Draft Long Range Plan 312.1 IPR 306.6 IPR Closeout 305.1 IPR2 Proposal 298.8 Increase from BP-16 2.1%

Summary of 2018–2019 Budget Proposal

Dollars in Millions – Annual Average

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SLIDE 7

POWERING A CLEAN ENERGY FUTURE

Notice: This document is a public record and will be released to the public. Therefore it shall not contain Confidential/Proprietary/Trade Secret Information (“Confidential Information”) of organizations such as the Institute of Nuclear Power Operations, the Utilities Service Alliance, Inc., or the World Association of Nuclear Operators.

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Basis for planned O&M reductions and

  • ngoing sustainability
  • Improved zero based budgeting for recurring O&M

projects/programs (improved predictability in cost)

  • Optimized certain non-critical preventative maintenance

programs (aligned frequency with standard)

  • Reduction in outage duration
  • Transfer of risk related to mid to large unknowns or

significant material escalation to Bonneville Risk Reserve

  • Delivering the nuclear promise initiatives and focus on

eliminating low value work

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SLIDE 8

POWERING A CLEAN ENERGY FUTURE

Notice: This document is a public record and will be released to the public. Therefore it shall not contain Confidential/Proprietary/Trade Secret Information (“Confidential Information”) of organizations such as the Institute of Nuclear Power Operations, the Utilities Service Alliance, Inc., or the World Association of Nuclear Operators.

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Columbia Cost-effective Operation

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SLIDE 9

POWERING A CLEAN ENERGY FUTURE

Notice: This document is a public record and will be released to the public. Therefore it shall not contain Confidential/Proprietary/Trade Secret Information (“Confidential Information”) of organizations such as the Institute of Nuclear Power Operations, the Utilities Service Alliance, Inc., or the World Association of Nuclear Operators.

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Cost-effective Operation - 2016

  • Project goal is to achieve a reduced cost of power that

continues to be regionally competitive.

  • The focus is to approach Bonneville Power Administration

preference customer Tier 1 pricing by FY2026.

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SLIDE 10

POWERING A CLEAN ENERGY FUTURE

Notice: This document is a public record and will be released to the public. Therefore it shall not contain Confidential/Proprietary/Trade Secret Information (“Confidential Information”) of organizations such as the Institute of Nuclear Power Operations, the Utilities Service Alliance, Inc., or the World Association of Nuclear Operators.

10 $30.00 $32.50 $35.00 $37.50 $40.00 $42.50 $45.00 FY14* FY15* FY16* FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 Dollars/MWh

Regional Cost of Power

CGS vs. Industry Target

BPA Tier 1 Price 2-year Average COP

Cost-effective Operation

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SLIDE 11

POWERING A CLEAN ENERGY FUTURE

Notice: This document is a public record and will be released to the public. Therefore it shall not contain Confidential/Proprietary/Trade Secret Information (“Confidential Information”) of organizations such as the Institute of Nuclear Power Operations, the Utilities Service Alliance, Inc., or the World Association of Nuclear Operators.

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Operations and Maintenance Cost Excellence Initiatives

  • Columbia Cost-effective Operation
  • Industry Initiatives – Nuclear Promise
  • Fuel Savings
  • Ensure Safe, Reliable Operation of Columbia Generating

Station

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SLIDE 12

POWERING A CLEAN ENERGY FUTURE

Notice: This document is a public record and will be released to the public. Therefore it shall not contain Confidential/Proprietary/Trade Secret Information (“Confidential Information”) of organizations such as the Institute of Nuclear Power Operations, the Utilities Service Alliance, Inc., or the World Association of Nuclear Operators.

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Cost-effective Operation

  • Implementing Phase IV Focus Area

– Defined goal/target:

  • Pacific Northwest Target Reference
  • Supports BPA Focus 2028

– Project Team and Oversight Committee – Station Alignment – Excellence Model – Training/Briefings/All-Hands meetings – Communication and Messaging - “Less with Less” – Monthly management review on metrics for Budget/Cost – Delivering the Nuclear Promise – Utilizing budget challenges, performance review actions and incentives to achieve targets

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SLIDE 13

POWERING A CLEAN ENERGY FUTURE

Notice: This document is a public record and will be released to the public. Therefore it shall not contain Confidential/Proprietary/Trade Secret Information (“Confidential Information”) of organizations such as the Institute of Nuclear Power Operations, the Utilities Service Alliance, Inc., or the World Association of Nuclear Operators.

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Cost-effective Operation

Columbia Cost Control: How will we achieve the goal?

Ensuring Safe, Reliable Operation of Columbia Generating Station

  • Risk Assessments to Avoid Negative Impact on Safety &

Reliability

  • O&M Cost Reductions
  • Attrition Management (Hiring Panel)
  • Contractor Management
  • Process Streamlining
  • Benefit Cost Review
  • Personal Time/Vacation Requirements
  • Nuclear Promise Initiative – efficiencies now and future

sustainability

  • Reset Targets Annually
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SLIDE 14

POWERING A CLEAN ENERGY FUTURE

Notice: This document is a public record and will be released to the public. Therefore it shall not contain Confidential/Proprietary/Trade Secret Information (“Confidential Information”) of organizations such as the Institute of Nuclear Power Operations, the Utilities Service Alliance, Inc., or the World Association of Nuclear Operators.

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Columbia Staffing Levels

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POWERING A CLEAN ENERGY FUTURE

Notice: This document is a public record and will be released to the public. Therefore it shall not contain Confidential/Proprietary/Trade Secret Information (“Confidential Information”) of organizations such as the Institute of Nuclear Power Operations, the Utilities Service Alliance, Inc., or the World Association of Nuclear Operators.

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POWERING A CLEAN ENERGY FUTURE

Notice: This document is a public record and will be released to the public. Therefore it shall not contain Confidential/Proprietary/Trade Secret Information (“Confidential Information”) of organizations such as the Institute of Nuclear Power Operations, the Utilities Service Alliance, Inc., or the World Association of Nuclear Operators.

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Improvement Areas

  • Corrective Action Program
  • Engineering
  • Preventative Maintenance
  • Radiation Protection
  • Regulatory Efficiency
  • Security
  • Supply Chain Efficiency
  • Training
  • Transform Engineering and Maintenance Org.
  • Work Management

NUCLEAR PROMISE

an industry Chief Nuclear Officers’ initiative

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SLIDE 17

POWERING A CLEAN ENERGY FUTURE

Notice: This document is a public record and will be released to the public. Therefore it shall not contain Confidential/Proprietary/Trade Secret Information (“Confidential Information”) of organizations such as the Institute of Nuclear Power Operations, the Utilities Service Alliance, Inc., or the World Association of Nuclear Operators.

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POWERING A CLEAN ENERGY FUTURE

Notice: This document is a public record and will be released to the public. Therefore it shall not contain Confidential/Proprietary/Trade Secret Information (“Confidential Information”) of organizations such as the Institute of Nuclear Power Operations, the Utilities Service Alliance, Inc., or the World Association of Nuclear Operators.

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  • Questions
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POWERING A CLEAN ENERGY FUTURE

Notice: This document is a public record and will be released to the public. Therefore it shall not contain Confidential/Proprietary/Trade Secret Information (“Confidential Information”) of organizations such as the Institute of Nuclear Power Operations, the Utilities Service Alliance, Inc., or the World Association of Nuclear Operators.

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Contact Us

Comments can be sent to:

Participants can submit comments on BPA’s IPR 2 proposed levels during a public comment period which opens Feb. 15 and closes March 13, 2017. Comments can be submitted:

  • Online at www.bpa.gov/comment
  • By mail to: BPA, P.O. Box 14428, Portland, OR 97293-4428.
  • By email to BPAFinance@BPA.gov

Please send questions to: BPAFinance@BPA.gov

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POWERING A CLEAN ENERGY FUTURE

Notice: This document is a public record and will be released to the public. Therefore it shall not contain Confidential/Proprietary/Trade Secret Information (“Confidential Information”) of organizations such as the Institute of Nuclear Power Operations, the Utilities Service Alliance, Inc., or the World Association of Nuclear Operators.

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Financial Disclosure

  • This information was made publicly available on

Feb.10, 2017, and contains information not sourced directly from BPA financial statements.