2. Jim Hill Nuclear Management Company Nuclear Plant Operation under NRC Reactor Oversight Program

3. Prairie Island Nuclear Generating Plant Safe – Reliable – Predictable – Leader

4. Adapted from: EED-99-01 Recommendations for the Implementation of Selected Leading Indicators of Performance at Nuclear Power Production Plants, ASQ, 1999

5. Recognition of Need to Improve NRC performance determination previously implemented by Systematic Assessment of Licensee Performance (SALP) In late 1994 NRC conducted in-depth review of SALP process. Issues noted: –Lagging…consequences initiated late, sometimes after performance decline had already been turned –Inconsistent regulatory response –Determination sometimes driven by upper management bias with incomplete data Bottom Line: The process the NRC used to determine licensee performance needed to be more effective

6. Developed with input from plant owners/operators, facilitated by NEI Baseline Inspection –Finding Significance Determination Process (Green Red) Performance Measures –Performance thresholds established (Green Red) –Reported on a quarterly basis Measures “rolled up” with inspection results for periodic performance assessment Regulatory Response matrix –Additional and more intrusive Inspection –Continued degradation in performance leads to shut down Piloted at 8 nuclear plants prior to full industry use Revised Reactor Oversight Process

7. Positive Results Industry Performance in areas measured has improved Rigorous process for performance measures –Ensure current measures are adequate and provide value Predictable Regulator Action –Data Driven Accuracy of performance data has improved –Problems found early on in data reporting –NRC cannot accomplish performance-based oversight without accurate data…poor reporting is serious issue Periodic review and improvement to ROP is ongoing. –Moving to a new set of equipment performance measures –Adequacy of Security and facility protection from external threat continues to be a priority

8. Example – Hypothetical Nuclear Site NRC ROP Indicators – 2nd Quarter 2005