Plant shutdown forces changes in operations

Article Abstract:

The closure of Philadelphia Electric Co's Peach Bottom Atomic Power Station prompted the utility company to implement a radical organizational change. The electric utility has had a history of performance excellence, but it has grown complacent over the years since it operates in a monopolistic environment. It did not address repeated complaints about operations problems at Peach Bottom, which prompted the Nuclear Regulatory Commission to order the plant's closure. The shutdown lasted for two years and cost Philadelphia Electric millions of dollars in lost revenue. The company called in an outside consulting firm to examine what went wrong and how it could be remedied. The recommended measures included the establishment of the Peach Bottom operation as a separate organization, and the re-assessment of Philadelphia Electric's management-selection and -development process.

Electric and other services combined, Management, Public utilities, Organizational change, Philadelphia Electric Co.

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Think tanks power up employees

Article Abstract:

Pacific Gas and Electric Co. (PG&E) has turned itself into one of those companies that can quickly solve problems and create solutions with the help of its employees. This rejuvenation started in 1993 when massive downsizing compelled management to introduce the so-called action-forum process. This process, which is aimed at removing problems portion-by-portion within a period of three months, involves the participation of anyone in the company at any level to propose areas for change. If the issue raised can be addressed within 90 days, the action forum will focus on it and find solutions to it. From its inception to 1996, PG&E has facilitated about 80 action forums, reducing cycle times, enhancing productivity and performance, cutting cost, increasing revenue, and eventually saving over $270 million.

Utilities, Electric & Gas Utilities, Case studies, Human resource management, Electric utilities, Gas utilities, Participatory management, PCG, Pacific Gas and Electric Co.

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