2/18/2013. We all take them...and usually, there are decisions to be made along the way. There is usually NOT just ONE WAY to get to your destination

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1 NATIONAL ASSOCIATION OF EMPLOYEE CONCERNS PROFESSIONALS February 26, 2013 Rafael Flores Senior Vice President & Chief Nuclear Officer Luminant Power We all take them...and usually, there are decisions to be made along the way There is usually NOT just ONE WAY to get to your destination 1

2 A Journey to Servant Leadership KEY MESSAGES Servant Leadership can have an impact in the historically COMMAND & CONTROL nuclear industry It s a difficult journey; one that never ends It s a rewarding, healthy, sustainable journey for organizations Comanche Peak Nuclear Power Plant Construction commenced October, 1974 Unit 1 - Commercial Operation August 1990 (22 years) Unit 2 - Commercial Operation August 1993 (19 years) In 2012, CPNPP provided ~ 28% of the total Luminant generation, with a combined Capacity Factor of ~ 95% CPNPP employs ~ 900 people Glen Rose, Texas VISION CPNPP will be the best in safety, performance and cost through a Constructive Culture led by Servant Leaders 2

3 MISSION To generate electricity using nuclear energy safely, reliably and with the best long term benefit for the Company and the Community Early Achievements Goal Alignment with Steady Progress Executive Leadership Manager & Supervisor Advocates Plant Reliability Vision & Goals Established Nuclear Safety Establish Goals SALP 1 INPO 1 Personnel Safety Establish Goals No Lost Time INPO ISA 0.1 Performance & Cost Establish Goals 35 Day Outages Generation Cost Industry Involvement TEAMING Employee Ownership EIA Core - Core Values Values STARS Station Priorities CULTURE SAFETY 3

4 Nuclear Safety NRC Performance Indicators Reactor Safety Radiation Safety Safeguards Initiating Events Mitigating s Barrier Integrity Emergency Preparedness Occupational Radiation Safety Performance Indicators Public Radiation Safety Physical Protection Unplanned Scrams Safety Functional Failures Reactor Coolant Specific Activity Drill/Exercise Performance Occupational Exposure Control Effectiveness RETS / ODCM Radiological Effluents Protected Area Equipment Unplanned Power Changes Emergency AC Power Reactor Coolant Leakage ERO Drill Participation Personnel Screening Program Unplanned Scrams with Complications High Press. Injection Alert & Notification FFD/Personnel Reliability Program Heat Removal Residual Heat Removal Cooling Water Industrial Safety Industrial Safety Accident Rate 04-12; 18 mo. rolling avg. rate Total station This indicator tracks how many industrial accidents per 200,000 worker-hours result in lost work time, restricted work or fatalities. In 2008, the industry started reporting non-utility employee data along with utility workers. Drops to ZERO in April 2013 Industry avg. Luminant only

5 Historical Generation GWhrs Generation Two outage years Unit Capability Factor Ranking 4 th Quarter 2012 (69 U.S. PWRs) Comanche Peak 2 (93.24%) Comanche Peak 1 (91.8%) Unit Capability Factor (18 mo.) Top Decile 0.00 Top Quartile 2nd Quartile 3rd Quartile 4th Quartile U.S. Pressurized Water Reactor (PWR) Units Source: INPO - 5

6 Historical Outage Durations Days 18 Unit 1 Unit 2 Historical Generation vs. Cost Year End Total Generation Production Costs GWhrs Production Costs ($/MWh including fuel) 6

7 Operating Costs U.S. Nuclear Plants Industry Cost Comparisons CPNPP VISION CPNPP will be the best in safety, performance, & cost through a Constructive Culture led by Servant Leaders CULTURE CPNPP MISSION To generate electricity using nuclear energy safely, reliably & with the best long term benefit for the Company & the community 7

8 Servant-Leadership Servant leadership grows every person to enthusiastically own exemplary results by learning to participant as an interdependent team member. The foundation is mutual trust, active listening, replacing debate with dialogue, learning from mistakes, encouraging creativity, questioning assumptions and putting team goals ahead of self interest. A Servant Leader Is... A servant-leader is a person who begins with the natural feeling of wanting to serve first tohelp, support, encourage, and lift up others. And because of their noble role model, others begin to lead by serving. The best test of a servant-leader is: do those served grow as persons; do they, while being served, become healthier, wiser, freer, more autonomous, more likely themselves to become servants? -Robert K. Greenleaf Why Move Our Culture Toward Servant Leadership? It is the Right Thing to Do... It is all about the PEOPLE Grow the People Trusting Work Environment Continually Improving Performance Excellent / Sustainable Performance Will Follow 8

9 Constructive Culture Led by Servant Leaders Long Range Goal To create an environment in which our employees can excel thru the use of Servant Leader behaviors. Excellent Results Environment Described As 10 th Box Fulfilled employees Constructive / Adaptive (Aligned / Healthy / Satisfied / Motivated / Dedicated) Community of Partners Leaderful Employees Policies Programs Practices PEOPLE Team Sponsoring a string of visible / meaningful actions that illustrate our commitment to supporting the employees. Indirect Impact Direct Vision Impact Mission Goals Indirect Impact SERVANT LEADERSHIP Leader Behaviors Norms to Nurture & Sustain Indirect Impact External Event Change Growing from Traditional boss/ subordinate to Mentor / Coach Servant-leader Power Ego Command & control Intimidation Hierarchy Silos Coercive Power Blaming Mutual trust By example Assuming good will Growing leaderful cultures Hired hands Engaged Hearts & Minds Supportive/Encouraging Communicating Copyright 2003 Ann McGee-Cooper and Associates, Inc Traditional Culture of U.S. Nuclear Power Industry 9

10 How Does a Servant Leader Compare to a Command & Control Leader Command & Control Motivated by ego/drive to achieve personally Views accountability as assigning and feeling blame Speaks first; their ideas are most important Servant Leader Humble and open; motivated by a desire to serve others Views accountability as creating a safe environment for learning from experience Listens first; values others input & builds strength through differences Controls information; information is power Reactive; crisis-driven Highly competitive Shares information broadly Proactive Highly collaborative Copyright 2003 Ann McGee-Cooper & Associates, Inc Why Move Our Culture Toward Servant Leadership? It is all about the People: Grow the People Trusting Work Environment Continually Improving Performance Focus on Leadership LEADERSHIP is a process through which others are inspired and influenced to own objectives and collaborate in ways that make the organization stronger, more flexible, responsive, and synergistic. 10

11 Test of Success An Aligned, Cohesive Team Maturity Continuum: Teaming Relationships INTERdependence Servant Leadership Work cooperatively. Seek others welfare as well as our own. Together, we create something much better than either of us could have created alone. High gratification comes from helping team and others succeed. Positive Have better product or service because of the benefit of more perspectives, information. Have better resource management, can use skills, talents where needed. Grows and balances talent of each participant. Negative Initially requires more time and effort. Long term this process saves time. Independence Rely on self. No longer depend on others. Positive Initiative can work without constant connection. Personal responsibility will get a job done based on personal views and experiences. Negative Hard to trust others by delegating Doesn t want others ideas or views, I ll do it myself, my way, and make sure it gets done. Can contribute to learned dependence. Dependence Rely on other people Positive Asks for input from others in areas of weakness. Negative Blames others when things go wrong. Can t act without someone telling or reminding them of what needs to be done. Depend on others to supervise, measure performance, and enforce. Copyright 2003 Ann McGee-Cooper and Associates, Inc Communication Communication is the KEY to being a great Servant Leader Simply said, if you have all the rest of the qualities, and you don t have good communication skills, then you will never be a great Servant Leader 11

12 Visionary Outlook This quality is dependent on what position & what group you are with Must look beyond the good of the individual group; must look to the good of the station Must set a vision of continuous improvement with a set road map that is followed Must follow the company / station vision and mission Selecting a Good Team Must have a strong bench strength Must select a group that compliments strengths of each individual Must select individuals that promote mutual trust and respect among management and all the contributors A good team must have a good attitude Must select and promote those committed to be great Servant Leaders Action Speaks Louder than Words Servant Leaders must be able to put aside their concerns to listen to those around them Must have knowledge of what is going on by both what is said and what is said between the lines Ability to know what is needed without being told what is needed Servant Leaders act on knowledge, attempting to help fulfill the needs of employees, peers, and their management Servant Leaders wield influence to solve problems for those around them, often before being asked 12

13 Ability to Stand for What Is Best for the Station As the success rate increases your critics multiply and become louder You must realize there will always be a camp of people that will criticize every decision you make Understand you will always have problem identifiers rather than problem solvers Develop your skills of staying open yet objective with critics so that they do not diminish your confidence or enthusiasm Ability to Stand for What Is Best for the Station It takes focus and confidence not to be adversely affected by criticism Strong leaders will listen to critics, but ultimately make decisions for the good of the department, the station, and the company and not the critics Future Success Striving for Excellence SERVANT LEADERSHIP 2010 CPSES CPNPP DRIVE FOR TOP DECILE PERFORMANCE Top Decile Vision & Goals Established Metrics remain consistant Nuclear Safety Events Operating Personnel Safety Rad Exposure INPO Injury WORLD RECORD SG & RVH REPLACEMENT OUTAGE Performance & Cost 19 Day Outages Top Decile Production Top Decile O&M TOP Decile Larger Involvement by Teammates Model D New Teaming BPO 13

14 Our Strengths Focusing on SAFETY First Conservative Decision Making Ownership & Teamwork Reliability Improvements Benchmarking Self Assessments & Continuing Improvement Positive Regulator Results...ALL maintained within a culture of SERVANT LEADERSHIP Where Will Our Continuing Journey Take Us? 14

15 INPO 1 Excellence Excellent Safety performance Excellent standing with NRC Constructive culture led by Servant Leaders Capacity factor of 99.5% consistently Overall cost in top 5% of industry 18 day outage durations consistently Bill J. Priest Institute for Economic Development Luminant Servant Leadership Learning Community 15