Pennsylvania Code › Title 52 - PUBLIC UTILITIES › Part I - Public Utility Commission › Subpart C - Fixed Service Utilities › Chapter 57 - ELECTRIC SERVICE › Subchapter J - CONSTRUCTION COSTS OF ELECTRIC GENERATING UNITS › Section 57.107 - Construction management guidelines

Current through Register Vol. 54, No. 28, July 13, 2024
The following guidelines represent recommendations and
						are nonbinding on the public utility involved in a construction program as
						defined in
						66 Pa.C.S. §
												515
						(relating to construction cost of electric generating units). The following
						guidelines are not intended to include all actions which a prudent management
						could or should take but are intended to provide guidance to a utility engaged
						in a major construction program:
(1)
					 The extent of a construction management or monitoring program by a utility
					 should be commensurate with the financial risks of the project.
(2) The utility should have a management or
					 monitoring program designed to recognize problems, react to them in a timely
					 fashion and mitigate the effect of those problems.
(3) The utility management or monitoring
					 program should provide information on the status of expenditures and cash flow
					 requirements to upper level management.
(4) The utility management or monitoring
					 program should provide meaningful reports on construction progress and
					 completion to upper level management.
(5) The utility should have a management
					 program which coordinates the diverse elements involved in large construction
					 projects, including but not limited to: scheduling, licensing, design,
					 engineering, construction, procurement, quality control, quality assurance,
					 vendors, consultants, systems turnover and startup testing.
(6) The utility management program should
					 ensure that utility staff has the training and experience, which is necessary
					 to successfully oversee the particular construction project. The utility should
					 also review the training and certification of contractor personnel.
(7) In the case of a nuclear unit, the
					 utility should ensure that construction management treats Nuclear Regulatory
					 Commission regulations as minimum requirements and not as ultimate
					 goals.
(8) The utility should
					 ensure that construction is adhering to quality assurance/quality control
					 standards generally accepted by the respective construction industry.
(9) The utility construction management
					 program should be able to evaluate the effectiveness of its own organization
					 and should require periodic internal or external audits of the project.
					 Evaluations of the utility construction management program should be forwarded
					 directly to upper level utility management.
(10) The utility construction management
					 program should define its own organizational and personnel responsibilities as
					 well as have review and approval authority over the organizational and
					 personnel responsibilities of other groups involved in the project.
(11) The utility construction management
					 program should ensure that its own personnel are knowledgeable about the
					 organizational and personnel responsibilities of the diverse groups-for
					 example, architect/engineer, constructor, subcontractor, Nuclear Steam Supply
					 System (NSSS) vendor and the like-involved in the project.
(12) If possible, vendors and contractors
					 should be selected by competitive bidding. A utility should maintain
					 documentation on the rationale used in the selection of the vendors and
					 contractors.
(13) The construction
					 management program should ensure that construction personnel are aware that
					 cost and schedule considerations are not more important than safety and the
					 application of sound engineering judgment.
The provisions of this §
													57.107 issued under Public Utility
						  Code, the Public Utility Code,
						  66 Pa.C.S. §
														§
														501,
						  515,
						  1301 and
						  1308.