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The second example of tipping point failure is Philadelphia Electric’s Limerick nuclear<br />

power plant. Construction of the two 1065 megawatt units began in June of 1974. The<br />

construction schedule at the issuance of the construction permit called for Unit 1 to be<br />

competed in April of 1979 and for Unit 2 to be completed in September of 1980 (NRC, 1982).<br />

The total estimated cost for both units in 1974 was $1.2 billion (Days & Sellers, 1985). As Figure<br />

2 shows, both units were well behind schedule at their respective planned completion dates<br />

(Unit 1 at 48% complete and Unit 2 at 36% complete) (NRC, 1982). Unit 1 finally came on-line in<br />

August of 1985, five and a half years behind schedule with a final cost of $3.8 billion (Days &<br />

Sellers, 1985). Construction of Unit 2 was halted in July 1982 by order of the Pennsylvania<br />

Public Utility Commission due to escalating costs (NRC, 1982).<br />

% Complete<br />

100%<br />

90%<br />

80%<br />

70%<br />

60%<br />

50%<br />

40%<br />

30%<br />

20%<br />

10%<br />

0%<br />

Original completion date: April 1979<br />

Original completion date: September 1980<br />

Dec-73 Apr-75 Aug-76 Jan-78 May-79 Oct-80 Feb-82 Jul-83<br />

=<br />

=<br />

==================^Åèìáëáíáçå=oÉëÉ~êÅÜW=ÅêÉ~íáåÖ=ëóåÉêÖó=Ñçê=áåÑçêãÉÇ=ÅÜ~åÖÉ=======- 342 -<br />

=<br />

=<br />

Unit 1<br />

Unit 2<br />

9/23/80<br />

Increase of scope due to design changes<br />

and new regulatory requirement and design<br />

problems associated with Mark II<br />

containmnet.<br />

Figure 2. Limerick Nuclear Power Plant Construction (1974-1982) (NRC, 1982)<br />

The Philadelphia Electric company attributed at least part of the cost and schedule<br />

problems to added new tasks and rework, two factors which Taylor and Ford (2006) showed<br />

capable of generating tipping point dynamics. In a September 1980 report submitted to the<br />

NRC, the estimated completion date was increased by two years for Unit 2 due to an “increase<br />

of scope [added new tasks] due to design changes and new regulatory requirements [rework]”<br />

(NRC, 1982). The degrading backlog behavior pattern is displayed on Unit 2 in Figure 2<br />

between May 1979 and October 1980 as the percent complete begins to decrease. The<br />

Limerick plant was not the only plant to experience problems. A survey of senior managers at a<br />

firm specializing in nuclear plant construction revealed that nearly all surveys credited regulatory<br />

changes as the major cause for delays in both design and construction of nuclear power plants<br />

(Arditi & Kirsinikas, 1985).

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