A NUCLEAR RENAISSANCE

1. A NUCLEAR RENAISSANCE Ping Wan The 10th NUMUG Meeting June 2005

2. Concerns in Development of Nuclear Power • High front-end project development and plant capital costs • Perceived adverse safety, environmental and health effects – lack of public acceptance and stake-holder support • Potential security risks stemming from proliferation and potential terrorist attack • Long-term management of nuclear wastes • Securing financing for project to be built in developing country

3. Recent Nuclear Power Industry Movement • Nuclear Technology Advances Capable of: • Enhanced safety features : passive safety features • Reducing severe accident possibility : multiple safety systems, backup, designed to accommodate human error • Producing less radioactive waste releases • Promotion in Innovative and Proliferation-resistant Nuclear Technologies • Strengthening Nuclear Safety Worldwide : building a global nuclear safety culture through international collaboration • Nuclear Regulatory Reform in the United States

4. U.S. Nuclear Energy • Quick facts - 103 nuclear plants - 20% of the nation’s electricity - 90.7% capacity factor - No new contracts since 1975 - No new plants since 1995 - >23,000 MWe of new capacity since 1990

5. U.S. Nuclear Drivers • Safe • Proven nuclear plant performance • Affordable • Energy security/energy independence • Emission free • Energy demand

6. U.S. Energy Demand 50 Percent More Electricity Needed by 2025 Commercial Use Residential Use Industrial Use 5,787B kWh 2005 3,839B kWh 2003 1970 1980 1990 2003 2015 2025 Source: U.S. Department of Energy

7. Formula for New Plant Deployment • Energy Policy • Proven Technology • Financials • Regulatory Certainty • Spent Fuel Management • Infrastructure • Public and Bipartisan Support

8. U.S./DOE - Nuclear Power 2010 • Call for building new nuclear power plants by 2010. • Support engineering of advanced designs. • Validate regulatory process. • Develop concepts to mitigate financing risks. • Cost share industry/government.

9. Proven Technology • Approved • ABWR • AP 600 • AP 1000 • System 80+ • Certification Process • ESBWR • ACR 1000 • EPR (in near future)

10. PBMR Pty. Ltd. • Pebble Bed Modular Reactor Innovative fuel design Gas cooled On-line refueling ~120 MWe per module • General Electric • ABWR NRC-certified design Two units operating in Japan; two under construction in Taiwan Improved safety systems ~1350 MWe per unit • Westinghouse • IRIS Single integral pressure vessel Accident scenarios engineered out of design Passive safety systems ~335 MWe per unit • Westinghouse • AP600/1000 AP600 design is NRC certified AP1000 (1117 MWe)under NRC review Passive safety systems, simplified design, modular construction • General Atomic • GT-MHR Gas cooled Underground construction Integral turbine-generatorand compressor ~286 MWe per module New Nuclear Reactor Designs

11. Energy Efficiency Plant Reliability Global Warming Potential Air Pollutant Emissions Acid Runoff Deforestation Energy security Extremely efficiency Compare well with others No greenhouse gases Insignificant None None Increased fuel diversification Economic Competitiveness of Nuclear Power

12. Financial Certainty New Nuclear Power Plant Cost Comparison to Coal and Gas (capital and O/M cost) Nuclear Coal Gas $47–$71 per MWh No policy assistance $33–$41 per MWh $35–$45 per MWh Engineering costs(3 plants); no policy assistance $31–$46 per MWh $33–$41 per MWh $35–$45 per MWh Limited productionand investment tax credit for nuclear $25–$45 per MWh $33–$41 perMWh $35–$45 per MWh Note: Under a greenhouse gas reduction policy, the capital cost of new fossil-fuel plants would increase significantly, according to the University of Chicago study. Coal-fired plants would cost $83 to $91 per megawatt-hour (MWh) and gas-fired plants would cost $58 to $68 per MWh. Source: University of Chicago study; MWh=megawatt-hour

13. Spent Fuel Management • Near-term Solutions - Yucca Mountain • Long-term solutions - Nonproliferation fuel - Generation IV technology

14. U.S. Regulatory Reform • Provide Regulatory Certainty • Early Site Approval • Design Certification • Combined License for Construction and Operation (COL)

15. Part 50 & 52 Licensing Process Comparison

16. Part 52 Licensing Process Equivalent Environmental Siting Information OR Early Site Early Site Staff ACRS Mandatory Permit Permit Review Review Hearing Decision Application Application Construction Staff ACRS Mandatory Decision on Finding on COL for Combined and ITAAC Review Review Hearing COL ITAAC License (COL) Completion Application for Certification Decision on Staff ACRS Design Rulemaking/ Design Review Review Certification Hearing Certification OR Design Equivalent Design Information

17. Economic Benefits • Part 52 improvements in economic risk issues of nuclear power: • Allows reduced siting risk by Early Site Permitting • Allows siting to proceed without commitment to a single design • Allows reduced licensing risk by use of a certified design • Allows design certainty at the time of construction • Provides for “step-wise” financial commitment

18. Hypothetical Deployment Schedule and Financial Commitment for New Nuclear Generation Year 1 2 3 4 5 6 7 8 9 10 11 12 ESP COL 100% 0% SER Issued EIS Issued LWA-1 Start Application Submit Application ESP Issued ESP Prepare ESP Review Hearings Start Application Submit Application SER Issued LWA-2 Issued COL Issued COL Review Hearings COL Preparation Site Engineering ~ Engineering FOAK Engineering ~ Procurement Planning ~ First Safety-Related Concrete Site Specific Engineering ~ Plant Deployment Fuel Load In Service ITAAC Site Preparation Construction Cumulative Plant Deployment Expenditures Engineering COL ESP 6665-4/04-1

19. Demonstrating the Process • Energy Bill • NP-2010 Government and Industry C O L E S P NuStart (Testing the Process) (Cost Studies) Certification

20. Evidence of U.S. Nuclear Revival • New Nuclear Capacity Equivalent to 23 new 1,000 MW power plants (uprates, capacity factors and 3 new plants) • License Renewals - Granted : 32 - In NRC Review : 16 - Renewal Intent : 25 - Not Announced : 31 • Browns Ferry #1 (1,289 MWe) restart

21. Conclusions • Cost, Safety and Environmental concerns can be alleviated, in part, through technological advances. • A stable and predictable licensing process is in place. • The United States is demonstrating we are in “a Nuclear Renaissance” • Both Government and industry can work together to rebuild its nuclear future.