Entergy Nuclear Decommissioning
Supply Chain Perspective
RAPID INDUSTRY CONFERENCE2018
Entergy Transformation to Regulated based utility business
Transformation Level 1 timeline
Supply Chain response to shift in company strategy
Lessons learned from early transactions
Opportunities for future transactions
People
Risk Mitigation
Return on Investment
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Topics
PNP 2019 IP2 2020 PLP 2022IP3 2021VY 2018
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Entergy Nuclear Units
Entergy Wholesale CommoditiesVermont Yankee – S/D 2015Fitzpatrick – SOLD 2016Pilgrim – S/D 2019IP2 - S/D 2020IP3 – S/D 2021Palisades – S/D 2022
Merchant Units (EWC)
Regulated Units
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Transformation Level 1 Timeline
– Provide oversite of Merchant - EWC Station Managers / Teams
– Unwind EWC business, develop and implement Decommissioning Project Plans or Transition Project Plans (DPP/TPP)
– NDO PMO Team - Supply Chain Lead, T-Meetings, Schedules, Actions
– Reallocate personnel from decommissioning units to support southern teams
• Manage and Process Employee Separations / Retirements
• Pipeline to Regulated Nuclear and other parts of Company
– Lead Investment Recovery actions for station inventory ($250M) and site assets
– Mitigate risk and close or transfer Contract and Purchasing activity
– Create station operating procedures for SC through phases of decommissioning
– Project close-out for each unit
X 4 units / 3 Stations
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Sr Manager SC - EWC Duties
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Nuclear Supply Chain Org Restructure
• Made change to adjust for new workload
• 2019 thru 2022+
Mark OsborneProgram Manager
Pat McKenneySr Manager SC
EWC – Lead TeamESS Governance Board
Legal SupportSupply Chain Corp Sourcing
Nuclear Decommissioning Organization
Governance
Oversight
Execution
Support
Justin McCabe IRS Manager
Staffing Management-Staffing Planning -Separation Execution-Asset Recovery
Asset Recovery-DOS Management-Disposition Channels-Logistics
David Bauer Decom PM
Michael Catino PNP SC Manager
Scott RoweSupv Site Staff
Wyatt DavisInvestment Rec
Logistics Support-Asset Recovery Team-Asset Disposition -Cat Id HC Fleet Transfers-Procedure Changes-Transition Coordination-Change Mgmt Plan-Fleet Lessons Learned
*PNP Proc Staff (3)
Contract Management-Legal Interface -Contract Oversight-Contract Transfer,Termination, Closeout
-Purchase Orders-Leases and Rentals
SC Organization – GOES Model and Matrix SupportSC Line Management
CSO / DIR
Opportunities – Disposal Streams
Specialized Nuclear/
Power Plant
Office Equipment
General Industrial(InventoryShop EquipToolingRolling Stock)
Scrap Metal
Nuclear Resellers &Speculators
Other Utilities
Auction Houses
Resellers
Bid Board
Office Furniture Dealers
Bid Board
Entergy Sites
Donations
Bulk Scrap Dealers
Surplus Stream
RecoveryOptions
Trash, Waste,Chemicals,
Hazards
Disposal Contracts
Sell with Plant
2% 7% 0% 1% 150%Return on Asset Value
Transferable Materials
Entergy SitesNuclear
FossilT&D
Impair
AUP
What's in the WH to move ?
Specialized Nuclear/
Power Plant
Office Equipment
General Industrial(InventoryShop EquipToolingRolling Stock)
Scrap Metal
Nuclear Resellers &Speculators
Other Utilities
Auction Houses
Resellers
Bid Board
Office Furniture Dealers
Bid BoardEntergy
SitesDonations
Bulk Scrap Dealers
Surplus Stream
RecoveryOptions
Trash, Waste,Chemicals,
Hazards
Disposal Contracts
Sell with Plant
2% 7% 0% 1% -150%Return on Asset Value
Transferable Materials
Entergy Sites
NuclearFossilT&D
Impair
AUP
Specialized Nuclear
Transferable
General Industrial
Breakdown by Inventory Value
WH Value by Category
• Nuclear Power Plant – Special 25%• Industrial - General 70%• Transfers - Site to site / Pulls 5%
1) Identify Surplus non-inventory material, tools, equipment, vehicles that can be immediately turned over to Investment Recovery.
2) Identify design/project materials /repairs/Maintenance items that can be cancelled. – Cancel unneeded POs/Contracts– Review POs to evaluate any cancellation fees or obligations– Pull reorders from Corporate and purchase from the site, evaluate continued need - order points / quantities.
3) Adjust off-site rebuild program to remove un-needed equipment
4) Identify inventory that will no longer be needed– Develop inventory reports that summarize CID – (description, P/N, application/System, etc.)– Obtain System Engineering resources to evaluate inventory.
5) Develop inventory reports for review by other Entergy sites for transfer. -- Run reports for “hits” at other stations, force transfers
6) Update RAPID to list surplus inventory as “For Sale”
7) Review Contracts to identify those requiring notification of termination > 30 days (PIM- example)
8) Meet with Supply Chain Staff and Site Staff to review steps for selling material (paradigm shift)
9) Establish a cross-functional Investment Recovery Team for review of material disposition recommendations. – Maint, I&C, Supply Chain, Finance, Corp Inv. Recovery, Communications, Projects – Hold routine meetings to discuss surplus equipment and recovery options.
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Lessons Learned
10) Organization work does not stop with Rx Mode Switch to S/D
11) Do not trim site structure - too much - too fast
12) Identify how Corporate SC Staff can support transition periods
• Central PE
• Central Purchasing / Contracts
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Lessons Learned
PO Contr Rec Lines
2014 468 342 1131
2015 417 271 569
0
200
400
600
800
1000
1200
VTY Workload Comparison2014 to 2015
Suggested Staff - S/D + 1 Year
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Corporate Business Services
(CBS)
Questions?