Secretary Ray LaHood Named Chair of NiSource's Quality Review Board, Providing External Governance for Safety Management System (SMS) Implementation
MERRILLVILLE, Ind., March 14, 2019 /PRNewswire/ -- NiSource Inc. (NYSE: NI) today announced that former Secretary of Transportation and Congressman Ray LaHood will serve as chair of the company's Quality Review Board, a new independent body formed to provide oversight and governance over the company's implementation of Safety Management Systems (SMS) across its seven-state footprint.
Joe Hamrock, president and CEO of NiSource, said "I am honored that Secretary LaHood has agreed to chair our Quality Review Board and guide our SMS implementation. His experience and oversight will be invaluable. This is a critical step for our organization as we proactively identify and mitigate risk and take tangible safety actions to protect our customers and communities from harm."
Secretary LaHood said: "Safety must be the top priority of any natural gas company and implementing SMS is the right thing to do. I look forward to providing rigorous oversight throughout this process, with a clear objective: promote the safety of the public."
SMS is an advanced, comprehensive approach to managing safety, emphasizing continuous improvement and identifying and mitigating potential risks. NiSource is joining other industries, from the airline industry to the nuclear energy industry, in adopting this forward-looking approach to safety.
Through SMS, NiSource will identify and mitigate risk from human error, mechanical systems, and equipment and then put in place barriers--through processes, redundancies, and enhanced training and operational practices--to significantly reduce risk to its customers, communities, and the general public.
On SMS, Hamrock said: "At NiSource, safety is not just a commitment we talk about--it is our top priority. It is the foundation of our business and guides all our actions. At its core, SMS is about identifying and mitigating potential risks before they happen. It's also about strengthening our culture. We are working to continuously improve our safety practices, and SMS is a key part of that. SMS is the most important priority for me and for NiSource and it will transform our company for the better."
Quality Review Board
The Quality Review Board will provide independent review and oversight over SMS workstream products, results, priorities and actions. In addition to Secretary LaHood, the Quality Review Board is comprised of experts with diverse backgrounds spanning the nuclear, aviation, and energy industries. The five members are:
-- Secretary Ray LaHood, Former United States Secretary of Transportation
(Chair): Secretary LaHood currently serves as a Senior Policy Advisor at
DLA Piper. With a 36-year career in public service, Secretary LaHood has
extensive experience on major national policy issues, among them
transportation and infrastructure. He served as the 16th Department of
Transportation Secretary from 2009 to 2013. His tenure was marked by
landmark efforts to improve safety in every mode of transportation, from
aviation and rail to pipelines and automobiles. Before heading the US
Department of Transportation, Secretary LaHood served from 1995 to 2009
in the US House of Representatives on behalf of the 18th District of
Illinois and also served on various House committees, among them the
House Appropriations Committee and the House Intelligence Committee. He
also served as chief of staff to US House Minority Leader Robert Michel
from 1982 to 1994.
-- John Durham, Retired Director, Enercon Services, Inc.: Durham has more
than 40 years' experience in the management of power plant and
engineering service organizations, performance assessments and review
boards, strategic recovery planning, and senior management consulting.
His experience includes working at an electric utility, the Institute of
Nuclear Power Operations, and several engineering and consulting
services firms.
-- Gary Harland, President, Work Management Inc.: Harland is a co-founder
and President of Work Management Inc., an organization focused on
providing best-in-class work control and outage management services to
the commercial nuclear industry. Providing management and implementation
infrastructure, WMI provides extensive services relating to project
management, cost estimating, planning, and scheduling.
-- John Cox, President & CEO, Safety Operating Systems: After an extensive
career as a major airline, corporate, and general aviation pilot, Cox is
now the President and CEO of Safety Operating Systems, a full-service
consulting firm providing services related to all aspects of a large
airline safety department. Throughout his career Cox has been involved
in numerous airline crash investigations as an NTSB group member,
specializing in crisis management plans, media relations, legal expert
research and testimony, accident/incident investigations, and technical
aviation support.
-- Jeff Wiese, Vice President for Pipeline Integrity, TRC Companies: Wiese
brings more than 25 years' experience in pipeline safety and resource
management. Beginning with roles at the US Department of the Interior
and the US Department of Transportation, Wiese has managed a wide range
of programs relating to pipeline safety and risk management, personnel
and budget oversight, implementation of new technology, and customer and
client service.
Internal Governance
NiSource is also setting up new aspects of internal governance, at both the state and enterprise level, to ensure it is delivering on its commitment. The company has appointed a senior executive to oversee the implementation of SMS and has stood up a significant operation. The company has created a new state role focused on safety, compliance and risk. Additionally, each state will establish cross-functional teams, responsible for evaluating and prioritizing state-level risks and elevating them to the enterprise level.
SMS
NiSource's SMS program will be aligned with a framework developed for the pipeline industry by the American Petroleum Institute, in the form of Recommended Practice 1173 (RP 1173). RP 1173 provides pipeline operators with an approach for rigorously identifying and managing risk, communicating with stakeholders, ensuring the effective operation of key processes, and promoting a learning environment.
As part of SMS implementation, NiSource is focused on the following, among other areas: conducting a comprehensive asset assessment; integrating a probable risk assessment; assessing leadership capabilities and culture; and enhancing emergency preparedness capabilities.
About NiSource
NiSource Inc. (NYSE: NI) is one of the largest fully-regulated utility companies in the United States, serving approximately 3.5 million natural gas customers and 500,000 electric customers across seven states through its local Columbia Gas and NIPSCO brands. Based in Merrillville, Indiana, NiSource's approximately 8,000 employees are focused on safely delivering reliable and affordable energy to our customers and communities we serve. NiSource has been designated a World's Most Ethical Company by the Ethisphere Institute since 2012, is a member of the Dow Jones Sustainability - North America Index and was named by Forbes magazine as the top-rated utility among America's Best Large Employers in 2017. Additional information about NiSource, its investments in modern infrastructure and systems, its commitments and its local brands can be found at www.nisource.com. Follow us at www.facebook.com/nisource, www.linkedin.com/company/nisource or www.twitter.com/nisourceinc. NI-F
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