Entergy Nuclear Decommissioning

Supply Chain Perspective

RAPID INDUSTRY CONFERENCE2018

Entergy Transformation to Regulated based utility business

Transformation Level 1 timeline

Supply Chain response to shift in company strategy

Lessons learned from early transactions

Opportunities for future transactions

People

Risk Mitigation

Return on Investment

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Topics

PNP 2019 IP2 2020 PLP 2022IP3 2021VY 2018

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Entergy Nuclear Units

Entergy Wholesale CommoditiesVermont Yankee – S/D 2015Fitzpatrick – SOLD 2016Pilgrim – S/D 2019IP2 - S/D 2020IP3 – S/D 2021Palisades – S/D 2022

Merchant Units (EWC)

Regulated Units

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Transformation Level 1 Timeline

– Provide oversite of Merchant - EWC Station Managers / Teams

– Unwind EWC business, develop and implement Decommissioning Project Plans or Transition Project Plans (DPP/TPP)

– NDO PMO Team - Supply Chain Lead, T-Meetings, Schedules, Actions

– Reallocate personnel from decommissioning units to support southern teams

• Manage and Process Employee Separations / Retirements

• Pipeline to Regulated Nuclear and other parts of Company

– Lead Investment Recovery actions for station inventory ($250M) and site assets

– Mitigate risk and close or transfer Contract and Purchasing activity

– Create station operating procedures for SC through phases of decommissioning

– Project close-out for each unit

X 4 units / 3 Stations

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Sr Manager SC - EWC Duties

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Nuclear Supply Chain Org Restructure

• Made change to adjust for new workload

• 2019 thru 2022+

Mark OsborneProgram Manager

Pat McKenneySr Manager SC

EWC – Lead TeamESS Governance Board

Legal SupportSupply Chain Corp Sourcing

Nuclear Decommissioning Organization

Governance

Oversight

Execution

Support

Justin McCabe IRS Manager

Staffing Management-Staffing Planning -Separation Execution-Asset Recovery

Asset Recovery-DOS Management-Disposition Channels-Logistics

David Bauer Decom PM

Michael Catino PNP SC Manager

Scott RoweSupv Site Staff

Wyatt DavisInvestment Rec

Logistics Support-Asset Recovery Team-Asset Disposition -Cat Id HC Fleet Transfers-Procedure Changes-Transition Coordination-Change Mgmt Plan-Fleet Lessons Learned

*PNP Proc Staff (3)

Contract Management-Legal Interface -Contract Oversight-Contract Transfer,Termination, Closeout

-Purchase Orders-Leases and Rentals

SC Organization – GOES Model and Matrix SupportSC Line Management

CSO / DIR

Opportunities – Disposal Streams

Specialized Nuclear/

Power Plant

Office Equipment

General Industrial(InventoryShop EquipToolingRolling Stock)

Scrap Metal

Nuclear Resellers &Speculators

Other Utilities

Auction Houses

Resellers

Bid Board

Office Furniture Dealers

Bid Board

Entergy Sites

Donations

Bulk Scrap Dealers

Surplus Stream

RecoveryOptions

Trash, Waste,Chemicals,

Hazards

Disposal Contracts

Sell with Plant

2% 7% 0% 1% 150%Return on Asset Value

Transferable Materials

Entergy SitesNuclear

FossilT&D

Impair

AUP

What's in the WH to move ?

Specialized Nuclear/

Power Plant

Office Equipment

General Industrial(InventoryShop EquipToolingRolling Stock)

Scrap Metal

Nuclear Resellers &Speculators

Other Utilities

Auction Houses

Resellers

Bid Board

Office Furniture Dealers

Bid BoardEntergy

SitesDonations

Bulk Scrap Dealers

Surplus Stream

RecoveryOptions

Trash, Waste,Chemicals,

Hazards

Disposal Contracts

Sell with Plant

2% 7% 0% 1% -150%Return on Asset Value

Transferable Materials

Entergy Sites

NuclearFossilT&D

Impair

AUP

Specialized Nuclear

Transferable

General Industrial

Breakdown by Inventory Value

WH Value by Category

• Nuclear Power Plant – Special 25%• Industrial - General 70%• Transfers - Site to site / Pulls 5%

1) Identify Surplus non-inventory material, tools, equipment, vehicles that can be immediately turned over to Investment Recovery.

2) Identify design/project materials /repairs/Maintenance items that can be cancelled. – Cancel unneeded POs/Contracts– Review POs to evaluate any cancellation fees or obligations– Pull reorders from Corporate and purchase from the site, evaluate continued need - order points / quantities.

3) Adjust off-site rebuild program to remove un-needed equipment

4) Identify inventory that will no longer be needed– Develop inventory reports that summarize CID – (description, P/N, application/System, etc.)– Obtain System Engineering resources to evaluate inventory.

5) Develop inventory reports for review by other Entergy sites for transfer. -- Run reports for “hits” at other stations, force transfers

6) Update RAPID to list surplus inventory as “For Sale”

7) Review Contracts to identify those requiring notification of termination > 30 days (PIM- example)

8) Meet with Supply Chain Staff and Site Staff to review steps for selling material (paradigm shift)

9) Establish a cross-functional Investment Recovery Team for review of material disposition recommendations. – Maint, I&C, Supply Chain, Finance, Corp Inv. Recovery, Communications, Projects – Hold routine meetings to discuss surplus equipment and recovery options.

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Lessons Learned

10) Organization work does not stop with Rx Mode Switch to S/D

11) Do not trim site structure - too much - too fast

12) Identify how Corporate SC Staff can support transition periods

• Central PE

• Central Purchasing / Contracts

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Lessons Learned

PO Contr Rec Lines

2014 468 342 1131

2015 417 271 569

0

200

400

600

800

1000

1200

VTY Workload Comparison2014 to 2015

Suggested Staff - S/D + 1 Year

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Corporate Business Services

(CBS)

Questions?