FirstEnergy announces reforms in management of nuclear power plants

 

Akron Beacon Journal, Ohio - June 25, 2003

FirstEnergy Corp., which has finished repairing a major rust hole on top of its Davis-Besse nuclear power plant, is nearly done plugging holes in how it runs its three nuclear plants.

The Akron utility announced Thursday it has finished the first of a three-phase effort designed to put the three plants, Davis-Besse, Perry and Beaver Valley, under the same management structure and make the plants more efficient.

The changes, expected to be completed in August, will result in an unspecified number of job losses at the 2,800-employee FirstEnergy nuclear operating company subsidiary, the company said. The job reductions, to be accomplished through attrition and layoffs, are not expected to be significant, a spokesman said.

"Some of our departments will be larger. Some will be smaller," spokesman Todd Schneider said. "Now, all our plants' department structure will be the same."

FirstEnergy began the organizational changes following the discovery in March 2002 of unprecedented corrosion on top of the Davis-Besse reactor in Oak Harbor. The company spent more than $600 million in repairs and to buy replacement power for Davis-Besse, which federal regulators allowed to restart earlier this year after a more than two-year shutdown.

The Nuclear Regulator Commission has also increased its oversight at the Perry plant because of operational problems there.

Following the formation of the parent corporation, FirstEnergy, in the late 1990s, the three nuclear power plants had different management and organizational structures, Schneider said.

"For the first time since (the nuclear subsidiary) was created, all three generating plants will have the same structure, job titles and descriptions, and functional design," Gary Leidich, president of the nuclear operating subsidiary, said in a statement.

The changes include a larger central organization at FirstEnergy's headquarters, the company said. Of the 110-member nuclear management team, 37 people moved into new positions and 13 people were promoted, the company release said.

The second phase, expected to be finished in July, will name supervisors and staff members at the plants, the company said.

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