November 1, 2009

Benchmarking Nuclear Plant Operating Costs

Dr. Robert Peltier, PE

Defining Consistent Data

Clear process definitions are the prerequisite for collecting comparable data from different plants. Without a common lexicon, it would be pointless to use the data for benchmarking purposes. Developing new processes, and maintaining existing ones, has been a coordinated effort between the EUCG, the Institute for Nuclear Power Operations, the Electric Power Research Institute, and the Nuclear Energy Institute (NEI).

The process definitions are organized into nine top-level groups that are defined as "level zero" processes:

• Operations. Includes operations, environmental, chemistry, and radiation protection.

• Design engineering and configuration management. Includes design changes and physical configuration management.

• Work management. Includes planning and scheduling, preventive and corrective maintenance, and tool calibration.

• Plant engineer and equipment reliability. Includes long-term planning and life- cycle management, performance monitoring, and continuous equipment reliability improvement.

• Materials and services. Includes materials management and warehousing, contracts and purchasing, and material disposal.

• Support services. Includes information technology, business services, human resources, and executive offices.

• Loss prevention. Includes security, quality assurance and control, corrective action program, emergency preparedness, and safety and health.

• Training.

• Nuclear fuel. Includes fuel management, transportation, handling, storage, and disposal.

Each of the nine processes is further divided into 46 sub-processes or "level one" processes in the NIID. Member companies can define additional sub-processes into activities (level two) and tasks (level three). However, industry standardization occurs only at "level zero" and "level one" processes.

The process definitions define how to collect and allocate costs and other important data. In addition to cost data, the NIID also contains key performance indicators (KPIs) and staffing data, making it a very useful tool for benchmarking. Many other metrics can be derived from the NIID, giving the database user extra flexibility to design additional metrics. Specifically, the types of data collected and stored in the NIID include:

• Cost data. Nuclear operating and generating costs are collected for most level one and level two functional processes or sub-processes. The differences between operating and generating costs are discussed later in this article.

• Key performance indicators. KPIs measure process characteristics in quantifiable terms and usually are economic in nature. KPIs are tracked throughout each level of the hierarchy or may be derived from or consist of combinations of other KPIs, cost data, or staffing data and be reported at the appropriate level. For example, "Unit Capability Factor" is reported at the unit level, whereas "Productivity Factor" (MWh generated/full-time employee) is reported at the plant level. This difference is important when there is more than one unit at a plant site.

• Staffing data. Staffing data allow human performance calculations and cost comparisons. For example, both cost and staffing data are required to compare utilities that outsource with those that rely on permanent employees to perform different types of work. Staffing data allow the user to make comparisons between similar plants and processes. Staffing data, like cost data, are reported at the plant level and include on-site utility employees, off-site corporate support, and baseline contractors.