Organizaonal Development and Workforce Planning “Developing ”

Tennessee Valley Authority Nuclear Generaon Development and Construcon Presentaon by Ed Boyles August 25, 2011

Nuclear Generaon Development and Construcon . 155 local distributors . 56 directly served customers . 9 million people in an 80,000 sq mile service area . Public users of land and recreaonal facilies . Communies with economic development assistance

2 Nuclear Generaon Development and Construcon Hydro; 8% Combuson Turbine and Fossil Plants Combuson Nuclear Diesels; 2% Turbines Plants Renewables, less than 1%

Nuclear; 37%

Fossil/Coal; 53% Hydroelectric Pumped- Dams Storage Green Power

Generaon(Capacity)

3 Nuclear Generaon Development and Construcon . 11 fossil sites (53 units) . 3 nuclear sites (6 units) . 29 hydro sites (109 units) . 11 combuson turbine sites (96 units) . 1 pumped storage staon . 1 wind energy site . 17,000 miles of transmission line

4 Nuclear Generaon Development and Construcon TVA’s Current Nuclear Porolio

Sequoyah Nuclear Plant Was Bar Nuclear Plant

Browns Ferry Nuclear Plant

5 Nuclear Generaon Development and Construcon TVA’s Original Nuclear Vision

Hartsville Phipps Bend Watts Bar

Sequoyah Yellow Creek Bellefonte

Browns Ferry

— Planned Units

Nuclear Generaon Development and Construcon Our Nuclear Fleet Today

Watts Bar

Sequoyah

Bellefonte

Browns Ferry

— Operational

— Construction

— Engineering

— Potential Nuclear Generaon Development and Construcon Our Approach Today

Under Construcon Engineering Studies

Was Bar 2 Bellefonte 1 Future Nuclear

Expected in- service 2013 2018-2020 >2020

Megawas 1,180 1,260 TBD Was Bar

Compleng Unit 2 Will Provide an Addional 1,180 MW of Generang Capacity to the TVA System

High Pressure Turbine for Unit 2 Moisture Separator Reheaters being delivered Was Bar Nuclear Plant being lied in the Turbine Building • Five year project • Current staffing – 3,600

9 Nuclear Generaon Development and Construcon Developing Two Nuclear Opons For Future Generaon

BLN 1 and 2 BLN 3 and 4

Babcock & Wilcox (AREVA) Wesnghouse • Construcon permits • Pursuing combined operang reinstated in deferred status licenses • Preserving exisng asset • Standardizaon of plant design and licensing

August 18 TVA Board approved compleon of Bellefonte Unit 1 10 Nuclear Generaon Development and Construcon . Babcock and Wilcox Model 205 – 205 fuel assemblies – 264 fuel rods; each rod contains 143” of UO2 low enriched fuel pellets

. Two Pressurized Water Reactors (PWRs) – 1260 MWe/3600MWt (with steam path upgrade)

. Design Addresses New Regulatory Requirements – TMI Lessons-Learned – Fire Protecon – Dual Containment Configuraon – Seismic

11 Nuclear Generaon Development and Construcon Percepon Reality • Full digital upgrade of instrumentaon and control (I&C) system • Evaluaon and applicaon of current NRC regulaons • Evaluaon and refurbishment and/or replacement of acve plant components • Systems, structures and components (SSCs) will be verified to meet all applicable design basis requirements

If completed, Bellefonte will be the most modern U.S. operang nuclear facility.

Cartoon by Clay Benne, Published by Chaanooga Times Free Press on 5/26/2010 18 Nuclear Generaon Development and Construcon Value of Exisng Asset

• Electrical • Piping • Valves • Rebar/Steel • Concrete • Site Infrastructure/ Cooling Towers

Embedded value versus new construction - $1.9 billion

Nuclear Generaon Development and Construcon B&W 205 Improves a Reliable Design

Evoluonary B&W 205 Design Improvements • Hardened used fuel pools • Redundant equipment separaon • Lower core power density • Raised reactor coolant loop design • Improved steam generator design • B&W Owner Group improvements • Larger steam dump capacity

Seven B&W • State-of-art control and protecve Designed Units systems Operating in U.S. • Secondary reactor shield building

Nuclear Generaon Development and Construcon Bellefonte Modernizaon

Original Main Control Room • Improvements in safety margins over original design, meeng industry requirements for new reactor designs

• New steam generators

• Redesigned main turbine

• Digital instrumentaon and controls

• Modernized main control room Planned

• Components refurbished or replaced

• New main condenser tubing

• Newest PWR fuel design

Nuclear Generaon Development and Construcon Public and Community Percepons

• Support for nuclear at all-me high • Public support is crical • Community acvies essenal – Specific tours – Targeted community audiences – Economic and workforce development

Pictures are of tours with student and community groups at 25 Bellefonte Nuclear Plant. Nuclear Generaon Development and Construcon New Equipment and Modernizaon

New Equipment and Modernizaon n $2.1 Billio

Nuclear Generaon Development and Construcon Design for Disasters

Natural Disaster Worst Recorded Bellefonte Design

Elevation Elevation 627 602.2 Flood

F5—Rainsville, F5 Alabama (360 MPH) (261-318 MPH) Tornado

8.0—New Madrid, 8.9—New Madrid Missouri Earthquake Nuclear Generaon Development and Construcon Bellefonte Project Status

Construction completion approved August 18 • $4.9 billion • Construction work to follow Watts Bar 2

Project staffing • ~650 on site • ~350 across nation

Established contracts for steam generators

Site facilities renovated and expanded

Nuclear Generaon Development and Construcon Bellefonte Virtual Tour

20 Nuclear Generaon Development and Construcon Bellefonte 1 Conclusions

• Least cost base load supply alternave, and would be a key part of a balanced generaon porolio that delivers cleaner energy.

• Needed to meet capacity shorall between 2018-2020.

• Contrary to some percepons Bellefonte will: – Be one of youngest reactor designs in country – Be among the safest of any of the exisng reactors in the country – Meet latest NRC requirements including Fukushima recommendaons

– Be one of the most modern nuclear plants in country

• Potenal impacts from Japan event have been conservavely assessed and included in project cost and risk esmates.

• Project thoroughly evaluated for over two years.

Nuclear Generaon Development and Construcon One Team One Goal

Nuclear Generaon Development and Construcon TVA Bellefonte Unit 1 Project Organizaon

23 Nuclear Generaon Development and Construcon Contract Model One Team – One Goal

TVA

Project Controls

NSSS BOP AE NSSS Construcon BOP Construcon

Facilies Facilies & T/G OTSG Construcon Maintenance

24 Nuclear Generaon Development and Construcon Project Governance

Execuve Steering Commiee 6 mo

Project Steering Commiee 2 mo

Daily Project Controls

Engineering Plant Licensing Construcon Projects

NSSS BOP Maintenance NSSS Constructor 1 Facilies

BWC Specialty T/G Security BOP SGT

NPG Constructor 2 Others Others Specialty

25 Nuclear Generaon Development and Construcon A New Workforce Planning Process

…ENSURING THE RIGHT EMPLOYEES, WITH THE RIGHT COMPETENCIES, IN THE RIGHT JOB, AT THE RIGHT TIME. Shonna R. Moore, MBA/HR, SWP Valley Authority

Nuclear Generaon Development and Construcon Nuclear Generaon Development and Construcon TENNESSEE VALLEY

AUTHORITY WORKFORCE PLANNING PROCESS

Recruing Strategic Developing Business Plan The new WFP

Budgetary Training process will be Resources TVA Workforce integrated with TVA’s vision, Goals & Planning Retenon Objecves Model values, goals

Succession Vision & Values and key Planning Mission Statement processes

Nuclear Generaon Development and Construcon TVA STRATEGIC WORKFORCE PLAN: FOUR PHASE PROCESS Workforce Planning at TVA serves as the foundation for managing our organization’s human capital. It enables us to plan strategically, to meet current and future workforce needs, and prevents unnecessary surprises in maintaining a steady-state workforce. The Workforce Planning Process has been designed to represent four (4) phases. These phases are as follows:

• Ensure alignment with Strategic Plan, TVA Business Plan, and BU Business • Analyze gaps between Plan. actual staffing and current staffing plan in order to help • Idenfy and analyze current staffing forecast and develop future supply and demand. staffing needs. • Consider the four main types of risk: Talent Risk, Knowledge Loss Risk, Legal Risk, and Cost Risk. Phase 1: Phase 2: Current & Future State Gaps & Risk Analysis Analysis

Phase 4: Implementaon Phase 3: • Implementaon strategies will Strategy & help deal with issues such as Monitoring/ Staffing Plans staffing gaps and surpluses Evaluaon once staffing plans are • Develop short-term staffing plan forecasted. that will meet staffing needs for • Monitoring and evaluaon the next fiscal year. will ensure that connuous • Develop long-term staffing plan improvement is made within that will fulfill the staffing needs the WFP process. for up to five years.

Nuclear Generaon Development and Construcon TENNESSEE VALLEY AUTHORITY WORKFORCE PLANNING PROCESS High-Level View of High-Level View of Process Flows TVA Process Flows IAEA

Nuclear Generaon Development and Construcon TENNESSEE VALLEY AUTHORITY WORKFORCE PLANNING PROCESS

Phase One: Current State Analysis 1. Alignment with Strategic Plan and Business Plan 2. Staffing Supply and Demand Snapshot Supply/Demand: STAFFING SUPPLY/DEMAND: CORE HEADCOUNT TVA Employees & Contractors ACTUAL EMPLOYEE STAFF MNG'D TOTAL HEADCOUNT AUG TASK HEADCOUNT

• Staff Augmentation

# of # of # of Other

Department TOTAL TOTAL TOTAL TOTAL Hires & END OF END OF END OF # of New Transfers # Empl at Voluntary Fiscal Year Fiscal Year Fiscal Year MANAGED Changes in Involuntary STAFF AUG EMPLOYEES Rerements Beginning of Beginning of Beginning of EMPL TOTAL FISCAL YEAR FISCAL YEAR FISCAL YEAR Terminaons HEADCOUNT • Managed Task

S/D Worksheet

Nuclear Generaon Development and Construcon TENNESSEE VALLEY AUTHORITY WORKFORCE PLANNING PROCESS

Phase Two: Gap and Risks Analysis Report includes: 1. Gap Analysis: Idenfy staffing gaps and surpluses TVA employees 2. Risk Analysis: Talent, Knowledge, legal and Cost Staff Aug. Contractors Gaps Report Managed Task Contractors

EMPLOYE Employee STAFF Staff Aug MANAGED Managed 2010 Actual VS 2010 ES GAP AUG GAP TASK Task GAP Targets Targets D

E

P Approved A R T Headcount vs.

M Rerements Rerements

E Benchmark Data Benchmark Data Benchmark Data Actual Empl Count Actual Empl Count Actual Empl Count Voluntary Turnover Voluntary Turnover Approved VS Actual Approved VS Actual Approved VS Actual Involuntary Turnover Involuntary Turnover Budgeted Headcount Budgeted Headcount Budgeted Headcount Budgeted VS Actual Budgeted VS Actual Budgeted VS Actual Approved Headcount Approved Headcount Approved Headcount N New Hires & Transfers New Hires & Transfers Budget vs. Actual T

Risk Analysis includes: Succession Planning Knowledge Gaps

Nuclear Generaon Development and Construcon TENNESSEE VALLEY AUTHORITY WORKFORCE PLANNING PROCESS

Phase Three: Short and Long Term Staffing Plans Short Term Detail 1. Short Term: 12 month staffing plan includes: Time to fill, skills and 2. Long Term: Beyond 12 month to 5 years competencies and time to proficiency LONG-TERM STAFFING PLAN Scenario Core Posions : Long Term Address EMPLOYEE PROJECTIONS CONTRACTORS positions with PROJECTED NEW SUCCESSION PROJECTED PROJECTED

EMPLOYEES HIRES PLANNING RETIREMENTS CONTRACTORS

extended training Posion 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 Ready Current # Current # Current # Long -Term Deep Dives Ready Now requirements or those that are difficult to fill. Long-Term Staffing Plan

Nuclear Generaon Development and Construcon TENNESSEE VALLEY AUTHORITY WORKFORCE PLANNING PROCESS

Phase Four: Implement, monitor, evaluate 1. Implementaon strategy and KM plan 2. Monitor and Evaluate

WFP: ATTACHMENT 8

ACTION STATUS

DUE BY REQUIRED TOOLS & TEMPLATES

Implementation Plan

ACTION OWNER Barriers NOTES Pending Yes/No Compleon Date Projected Compleon Date Address - actions,

Oct-11 Alignment Review WFP BU Rep & ER rep due dates, required

Nov-11 Current BU Empl Headcount WFP Aachment 1 WFP BU Rep & ER rep tools, owner, and PHASE 1

Current BU Staff Aug Headcount WFP Aachment 1 WFP BU Rep & ER rep action status Implementation Plan

Current BU Managed Task Headcount WFP Aachment 1 WFP BU Rep & ER rep

Current Staffing Metrics WFP Aachment 1 WFP BU Rep & ER rep

Current Skills & Comp For Each Posion WFP Aachment 2 WFP BU Rep

Nuclear Generaon Development and Construcon Nuclear Generaon Development and Construcon Quesons

36 Nuclear Generaon Development and Construcon