Muskrat Falls becomes 2 projects as new Nalcor boss makes changes

NewNalcor CEO Stan Marshall is dividing the Muskrat Falls project into two components, and ushering in changes to the company's executive structure.

On Wednesday, Marshall explained thechanges to the structure of Nalcor that he said will help the company zero in on itsmain priorities.

• Nalcor Energy and Astaldi locked in tough negotiations over Muskrat Falls

Marshall said those priorities are the completion of Muskrat Falls, the integration of the provincial electricity system with Muskrat Falls powerand separation between Newfoundland and Labrador Hydro and Nalcor'sunregulated business operations.

He said the Muskrat Falls project will now be divided into two separate areas of focus: Power supply and power development.

Power supply will focus on all transmission-related activities for the project, while power development will be focused on completing the hydroelectric generating facility at Muskrat Falls. Marshall says dividing those two will help focus in on priorities and timetables.

"The timing of the two are not the same, so one has to prepare for operation sooner than the other," he said.

"What it reallydoes is bring more focus and more resources forthat project overall and so we hope it will improve performance and execution as well."

'They're good people'

Marshall said as part of the transition, he's bringing former N.L. Hydro employee Jim Haynes out of retirement to become president of N.L. Hydro.

Haynes retired in 2013 after 35 years of work with Nalcor, and the company said "his experience and expertise will be invaluable" to the organization going forward.

Nalcor said Hydro will become a separate business unitto ensure its separation from unregulated business activities.

In an email to CBC, Nalcor also said Haynes'spension from his previous time with the companywill be put on holdwhile he is working for the company this time around.

Hayneswill not be getting extra compensation, the emailstated,with the exception of a possible performance-based bonus, car allowance, vacation and other standard employee benefits package.

New positions for major players

Elsewhere at Nalcor, Marshall outlined several key areas where the company is shuffling its deck and shifting key players into newpositions, however said there will be no major personnelchanges at Nalcor.

Marshall defended the decision to keep most of the same executiveson forthe project, despite a bit of shuffling around.

He gave the simple explanation of "because they're good people," when asked about the decision at a Wednesday press conference.

Gilbert Bennett, the current VP of the Lower Churchill Project, will now be the Executive VP ofPower Development whileJohn MacIssac, the current president of N.L. Hydro, will become Executive VP of Power Supply.

Derrick Sturge, Nalcor's Chief Financial Officer, will continue in his role under the new title of Executive VP, Finance.

Finally Jim Keating, the current VP of Nalcor's Oil and Gas line of business will become theExecutive VPof Corporate Services and Offshore Development.

His position will include his former duties, while making him the executive lead forBull Arm Fabrication, Energy Marketing, and the company's corporate services

It's all part of an effort that Marshall said will streamlineNalcor'sefforts on its main priorities.

"I'm confident these changes will clearly focus the company's attention on our areas of key risk and allow us to deliver on our commitment to providesafe, reliable, cost-effective electricity service to the people of this province," said Marshall.

An updated chart ofNalcor'sorganizational structure is below.