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Practices Aligning Palo Verde ECP and HR In Changing Times

NAECP Fall 2016 ConferenceSeptember 27-29, 2016

Annapolis, MD

Tony MarcoDirector, PV HR

Michael SheaDirector, Safety Culture

David DuBeyManager, PV HR

Themes of Presentation

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Overview of Palo Verde – nations largest power plant

Palo Verde Leadership Model – what binds us together

Top 20 ECP & HR Practices – how we partner together

Strategies for Success– sustain practices

Questions and Discussion – a time to talk

SAFELY and efficiently generateelectricity for the long term

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Palo Verde Participants

10.20% 5.91%

5.70%

29.10%17.49%

15.80%

15.80%

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Palo VerdeUnique Aspects

and Considerations

• Three large independent standardized CE System 80 units– Economies of scale– Common mode vulnerability– Design has the highest number of

components• Two refueling outages per year• Large site (approximately 4,150

acres) and large Security Owner Controlled Area (SOCA)

• Separate independent Water Reclamation Facility

• Onsite Security, Fire Protection, Fuel Core Design/Analyses and Fuel Procurement Departments

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• The station has been the nation’s largest power producer for 24 consecutive years, meeting the electrical needs of approximately 4 million people.

• Palo Verde produces 80% of Arizona's carbon free electricity.

• Palo Verde employs approximately 2600 employees.

• Reliable Performance− Six breaker-to-breaker runs

Other Facts

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2015 Nuclear Generation

US Rankings World Rankings

Rank Unit

GrossGeneration (millionMwH)

CapacityFactor

1 Palo Verde 1 12,233,702 99.61

2 Grand Gulf 1* 11,114,114 92.56

3 Millstone 3 11,112,626 99.42

4 Comanche Peak 1 11,095,077 101.32

5 Palo Verde 3 11,083,098 90.05

6 Nine Mile Point 2**  11,072,563 97.24

7 Palo Verde 2 10,991,609 89.24

8 Susquehanna 1**  10,908,973 96.76

9 McGuire 1 10,546,402 92.25

10 Diablo Canyon 2 10,183,417 97.12

Rank Unit

GrossGeneration (millionMwH)

CapacityFactor

1 Palo Verde 1 12,233,702 99.61

2 Grand Gulf 1*  11,114,114 92.56

3 Millstone 3 11,112,626 99.42

4 Comanche Peak 1 11,095,077 101.32

5 Palo Verde 3 11,083,098 90.05

6 Nine Mile Point 2**  11,072,563 97.24

7 Palo Verde 2 10,991,609 89.24

8 Susquehanna 1** 10,908,973 96.76

9 McGuire 1 10,546,402 92.25

10 Brokdorf*  10,345,488 87.20

Source: Nucleonics (Feb. 2016)*One month data missing.

** Net generation reported.7

Net Generation

Mill

ion

Meg

awat

t-ho

urs

8.8

13.5

23.4

7.8

20.6

25.125.6

22.023.2

27.0

28.8 29.530.3 30.4 30.4

28.8

30.9

28.628.1

25.8

24.0

26.8

29.2

30.6 31.231.3 31.9 31.4

32.3 32.5

5.06.07.08.09.0

10.011.012.013.014.015.016.017.018.019.020.021.022.023.024.025.026.027.028.029.030.031.032.033.0

Year

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Nuclear Industry EmploymentDistribution by Age

0%

5%

10%

15%

20%

25%

30%

18‐22 23‐27 28‐32 33‐37 38‐42 43‐47 48‐52 53‐57 58‐62 63‐67 67+

% employees

Age Range

2003 2005 2007 2009 2011

2013 2015 2005 Trend 2013 Trend 2015 Trend

Total Employment:

2015 - 56,568

2013 - 62,167

2011 - 59,700

2009 - 57,200

2007 - 55,900

2005 - 57,900

2003 - 58,400

Source: 2015 Gaps in the Energy Workforce Survey Results. Contractors and vendors not included.

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10

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Palo Verde Distribution by Age and YOS

0

50

100

150

200

250

300

350

400

450

500

25 and under 26‐29 30‐34 35‐39 40‐44 45‐49 50‐54 55‐59 60‐64 65 and over

< 1 year 1‐2 years 3‐4 years 5‐9 years 10‐14 years 15‐19 years 20‐24 years 25‐29 years 30+ >

Palo Verde Leadership Model

What binds out team together

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The Palo Verde Leadership Model

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Leadership Model Philosophies

• Every employee is a leader, regardless of title or position

• Results count• Values-driven organization• Attitude is important• Continuous learning organization• Communicate, Communicate,

Communicate• History + New + Change = Palo Verde Way

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Leadership Model Philosophies

• Knowledge is fundamental – share it• We are in the refueling outage business• Cost effective does not necessarily mean

cheap• Working efficiently and event free• Make conscious, informed decisions• Excellence in Operational Focus• Operations Leads the Station• End of Licenses and Beyond 60• Our Leadership Model - Our future

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Top 20 ECP & HR Practices

How We Partner Together

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Practices for Alignment

ECP Monthly  andQuarterly Safety Culture 

Meetings

Monthly meeting with ECP, HR and Legal

Focus on program issues

Anonymous Issues (CAP) 

Discuss critical issues

Quarterly Safety Culture Meetings Follows NEI guidelines

Development of culture challenges

Measurement of safety culture indicators

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People Health Committee

VP Level Participation

Alignment around HR Programs results

Focus on Talent Management

Succession Planning

Performance Management

Employee Issues

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Key Performance Indicators

Employee turnover

EEOC Charges

Number of interactions

Status of open issues

Hiring results

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Practices for Alignment

Talent Acquisition Committee

Oversight of employee selection process

Senior leadership review and approval of all job postings

Review of selection choices

Management of staffing levels

Review of hiring results

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Union Relations

Sharing of grievance info

Notification of contract preparation

Review of contract results

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Discipline Review Panel

Notification of pending discipline Written Warning

Decision Making Suspension

Terminations

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Practices for Alignment

HR Touch Points

Number of employee contacts within the HR department – 1400 YTD

Used to track and trend types of issues

Metrics shared with ECP as part of monthly meeting

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Ethics

Aligned with Corporate Ethics Group (reports to HR VP)

Work in relationship with HR on ethics issues

77Integrated Issues Resolution 

Process (IIRP)

Condition Reporting (CR)

Differing Professional Opinion (DPO)

Employee Concern Program

Mgmt Issue Tracking/Resolution (MITR)

Used to manage significate HR issues

Governed by organizational procedure

Time bound for resolution

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Practices for Alignment

ECP Legal Interface

Monthly review with Legal Counsel on open issues

Review of critical cases with Executive VP

1010

Working Together

Understanding issues managed by HR and those managed by ECP

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Demographic Impact

Over 1,400 new hires in the last 7 years

Education and knowledge of ECP and HR

Projected another ~ 400 additional retirement in the next 5 years

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Practices for Alignment

Employee Engagement Groups

Affinity groups focused on improving processes and results

Employee led with leader guidance

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New Hire Orientation

40 hour orientation for all new employees

ECP Supports HR during orientation with presentation and information

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PV Leadership Academy

Three (3) week training program for all new leaders

ECP and HR teach several topics during academy

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Practices for Alignment

Performance Objectives and Criteria (PO&C’s)

Industry criteria for HR• Succession Planning

• Selection

• Workforce Planning

• Knowledge Mgmt

• Leadership Development

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Organizational Oversight

PV Oversight Committee – reports to the Board of Directors

OSRC

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Delivering Nuclear Promise

Palo Verde Approach

Leverage of employee engagement groups

Future challenges

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Practices for Alignment

Anonymous  Issues (CAP)

Managed by both HR and ECP

Align on how to address concern

Anyone can issue an anonymous concern (employee or contractor)

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Contractor ECP Involvement

Primary contractor labor supplier has provided their own ECP coordinator on site.

Weekly meetings with vendor ECP

2020

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Strategies for Success

Sustainability

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Institutionalize your processes

Create guides or procedures to ensure sustainability

Have objective evidence that your programs are working

KPI’s – what are you measuring

Benchmark others and choose a process that works for your organization

Are you getting the results you areexpecting

Success Strategies

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Questions and Discussion

Human Resources

How do you manage 

resources?

Can you explain your DRP process?

Employee Concerns

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Thank you!!

Tony MarcoTony.Marco@aps.com

Michael SheaMichael.Shea@aps.com

David DuBeyDavid.DuBey@aps.com

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