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. 38, September 21, 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.
