From Power Engineering
Power producers across the industry are under pressure from flat electricity usage growth rates and the need to comply with environmental regulations. The nuclear industry in particular has to contend with the high cost of new build and safety regulation compliance. In the search for cost savings, some power producers have turned to outsourcing maintenance and outage services to third parties. These long-term agreements, known as "alliance contracts", can yield substantial savings with added benefits like workforce flexibility and the shared knowledge that comes with a long-term partnership.
Since 1995, Day & Zimmermann has maintained a strategic partnership with the Tennessee Valley Authority and in 2009 began to oversee modification, outage, and maintenance work on the TVA's Browns Ferry, Sequoyah, and Watts Bar nuclear plants. Nuclear Power International caught up with Preston Swafford, Executive Vice President and Chief Nuclear Officer at TVA, and Mike McMahon, President of Day & Zimmermann ECM, to discuss the ins and outs of alliance contracts.