Watts Bar Project Update from TVA

TVA released their second quarterly report (that’s six months into the reporting) regarding the progress being made at the plant. While they report that the project is on schedule, they did leave in a caveat, saying in paragraph five that there were still hurdles ahead that will effect the schedule. They also announced an incentive plan to hopefully retain workers on the project through completion. We hope the continuation of this project extends the recovery we are starting to see here in the the area.

Watts Bar Unit 2 Performance On Track

Efforts In Progress to Keep Project Moving Forward

December 20, 2012

SPRING CITY, Tenn. – Tennessee Valley Authority’s Watts Bar Unit 2 is on track with the revised cost and time estimates established in April 2012 when the TVA board of directors approved continuing with completing construction of the project.

The second quarterly update to the Watts Bar Unit 2 Estimate to Complete (August – October 2012) shows the project is meeting targets for completion between September and December of 2015 and within the projected total cost range of $4 billion to $4.5 billion. The update also verifies safety performance remains excellent and the quality of work remains high.

“The Watts Bar Unit 2 team continued to make good progress during the quarter,” said Mike Skaggs, TVA senior vice president for Nuclear Construction. “Workers achieved over 17 million work hours without a lost-time incident, and the overall acceptance rate of quality control inspections remained above 95 percent. Cost and schedule performance achieved established goals.”

During the quarter, the project focused on efficient performance of construction activities; maintaining the overall pace of installing commodities, such as valves, piping, and cable; and continuing to implement improvement initiatives.

“While we have not identified any new short-term risks that compromise project completion, there will be challenges as we build this unit, with regulatory and licensing issues being our primary challenges,” said Skaggs.

“One step we are taking to ensure safety and that the Watts Bar Unit 2 construction timeline and budget remain on track, is implementing a project incentive completion program for eligible TVA and contract employees. The incentive completion program will help retain these highly skilled workers during construction. It is the continued performance of those building the unit that will make a difference in how it is completed, when it is completed, and how it will operate for years to come.”

The incentive program will be funded with savings from the project being completed in a safe, timely, and cost-effective manner. For any incentive payout to be made, commercial operation for Watts Bar Unit 2 must be certified by TVA by Dec. 31, 2015, and the project must be completed at or below $4.4 billion.

“TVA has invested in nuclear power as a key component to generating safe, reliable, clean, and low-cost energy,” said Skaggs. “Completing Watts Bar Unit 2 safely, on time and on budget will validate this investment and increase confidence across the industry that building new nuclear is the right course of action in preparing for future energy needs.”

For a copy of the Quarterly Update to the Watts Bar 2 Estimate to Complete (August – October 2012), go to http://www.tva.com/power/nuclear/wattsbar_unit2.

The Tennessee Valley Authority, a corporation owned by the U.S. government, provides electricity for business customers and distribution utilities that serve 9 million people in parts of seven southeastern states at prices below the national average. TVA, which receives no taxpayer money and makes no profits, also provides flood control, navigation and land management for the Tennessee River system and assists utilities and state and local governments with economic development.

Media Contact

Ray Golden, Chattanooga, 423-509-5242
TVA Public Relations, Knoxville, (865) 632-6000
www.tva.com/news

About gvenice

I have over 25 years of electrical engineering and business management experience. I previously owned and managed a multi million dollar engineering firm. My work took me all over the globe, managing the construction of manufacturing plants where I built a reputation of providing superior service, getting projects done on time and within or under budget. My dedication to the fine details and logical approach to accomplishing tasks provide a huge benefit to my Real Estate clients. After selling my business and retiring to this area, I found a new passion in the Real Estate business and I bring to this business the same level of professional skill and conduct that has made mr successful in the past. My global exposure and extensive travel are also an asset when dealing with a customer base that is located worldwide. An avid boater, I have a thourough understanding of the waterways of East Tennessee and the intricacies involved in dealing with the TVA and the Army Corps of Engineers.
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