ANP Milford Plant

ANP Acquires Enron Asset

Sterling Energy assisted American National Power (ANP) in the acquisition of Enron’s 158 MW Milford Plant.

Sterling Energy was contracted to serve in the capacity of “Transition Manager” for the acquisition of this power plant asset. Prior to the start of the formal Transition Program, Sterling Energy met with ANP over a week-long period to establish a “common vision” with regard to policies and practices.  Areas addressed included:

Mission and vision statements

• Capital improvements
• Payroll processing
• On-site accounting
• Chart of accounts
• Hiring packages
• Employee orientation
• Bonus program
• Community relations
• Marketing and contracts management
• Procedures (site vs. corporate)
• Local area network (LAN)

Selection of the maintenance and materials management system (MMMS) to replace existing system.

Pre-Turnover Phase

The Pre-Turnover Phase represented the period leading up to the August 1, 1996 take over of the asset by ANP. Our specific objectives during this 3 month transition period, all of which were achieved, included:

• Establish an approved Transition Management Plan, including budget and schedule
• Establish “payroll readiness” such that paychecks can be written at the site by August 1
• Develop an effective suite of policies and procedures
• Establish the “flattest” possible organization structure
• Interview, select and hire those existing personnel who will contribute positively to the ANP team environment
• Recruit, select and hire additional Team Members, as required
• Identify and define training of new or existing personnel as may be required to safely and effectively operate the plant
• Plan the outage (scheduled to begin just after take over)
• Plan and execute the transition through the Pre-Turnover Phase so as to avoid any impacts to ongoing operation and production

Turnover Phase

The Turnover Phase was defined as that period of time beginning August 1, and continuing through the successful transition from Enron to ANP in terms of staffing, paradigm/cultural shifting, procedures implementation, and training. In actuality, it represented approximately a period of 3 months. The successfully completed objectives included:

• Complete the new hire orientation and team building program
• Shift the paradigm to the ANP culture/vision
• Implement the procedures, and make necessary revisions, as required
• Implement the “Sponsor Program” to establish stewardship of the physical plant systems and programs to individual “Sponsors” (Team Members)
• Implement the management of information system (MIS)
• Identify gaps between the vision and current reality, and develop plans for closing the gaps
• Successfully complete the annual maintenance outage

In addition to Sterling Energy providing the leadership and overall management of the transition program, we provided a small, experienced team of mobilization professionals to write the Policies and Procedures Manual, implement the MMMS program, build the reporting program, and work with ANP counterparts in establishing the safety/health program and regulatory compliance program for the project.

Plant Location:

   Milford

Plant Description:

   158 MW Combined Cycle

Owner:

   American National Power

Transition Date:

   August 1, 1996