General Overview of the Romanian Nuclear Utility NUCLEARELECTRICA Dumitru Dina Head of Nuclear Safety Department 1WASHINGTON DC, USTDA , September

2 1. Introduction; 2. Nuclearelectrica’s structure; 3. Mission and strategic objectives; 4. Units technical design characteristics; 5. Nuclear spent Fuel storage; 6. Romania’s energy structure; 7. Cernavoda NPP performance; 8. Cernavoda Units 3&4 Project; Content:Content: WASHINGTON DC, USTDA , September

3 Romania chose to develop the nuclear program based on Canadian, American and Italian technology, recognized as Western safe design. The first Nuclear Power Plant in Romania was designed to operate with 5 units, CANDU-6 type, with a Generated Power of MW(e) each. The site was chosen in SE of Romania, on Danube River, close to Cernavoda town, about 180 km far away east from Bucharest. 1. Introduction WASHINGTON DC, USTDA , September

4 1. Introduction (cont’) WASHINGTON DC, USTDA , September

Shareholders: - Romanian State – 90.28% - Property Fund – 9.72% Main Activity: Electrical Power and Heat Production, NPP Construction and Commissioning and Nuclear Fuel Fabrication SNN S.A. Cernavoda NPP – Units 1&2Nuclear Fuel Plant Pitesti Safe & Efficient operation of Units 1&2 – CANDU-6: 700 MWe Nuclear fuel fabrication for two units 2. Nuclearelectrica’s Structure 5WASHINGTON DC, USTDA , September

Mission To produce electrical and thermal energy using nuclear fission, to develop the nuclear industry and fuel manufacturing, in full compliance with the highest nuclear safety standards, economic efficiency and protection of people and environment – 2015 SNN Strategic Objectives General Objective: maintain it’s identity as a nuclear electricity producer, increase profitability and continuously improve the technical-economic indicators; Target-indicators associated with the Strategic Objective 1. Gross Capacity Factor: 93% for each unit; 2. Personnel Indicator: 1man / installed MW for Units 1 and 2 Cernavoda NPP operation; 3. Operation Cost: increase over period - capped to 30%; 4. Annual Profit Margin: 4-6% of the annual turnover; 5. Installed capacity increase: by 50% through completing Units 3&4 (51% Romanian quota share) 3. Mission and Strategic Objectives 6WASHINGTON DC, USTDA , September

4. Units technical design characteristics 7WASHINGTON DC, USTDA , September

8 Nuclear Spent Fuel Storage (AECL Canada) – first module 2003; the second 2006; the third 2007; fourth 2010 Final profile: 4 small-sized modules (MACSTORE 200) and 34 large-sized modules (MACSTORE 400) – covering 40 years of operation for 4 Units ; 5. Nuclear Spent Fuel Storage WASHINGTON DC, USTDA , September

6. Romania’s Energy Structure (2008) 9WASHINGTON DC, USTDA , September

6. Romania’s Energy Structure (2009) – (cont’) 10WASHINGTON DC, USTDA , September

7. Cernavoda NPP’s Performance – (cont’) Gross Capacity Factor for Units 1&2 7. Cernavoda NPP’s Performance – (cont’) Gross Capacity Factor for Units 1&2 11WASHINGTON DC, USTDA , September

7. Cernavoda NPP’s Performance – (cont’) CANDU reactors performance-Quarter Cernavoda NPP’s Performance – (cont’) CANDU reactors performance-Quarter WASHINGTON DC, USTDA , September

13 INVESTORS NUCLEARELECTRICA 8. Cernavoda Units 3 & 4 Project WASHINGTON DC, USTDA , September

14 MAIN CHARACTERISTICS: Reactor Type:CANDU 6 Installed Output:2 x 720 Mwe Delivered Power:2 x 5,239 TWh/year Completion Cost: aprox. 4 bl. Euro (preliminary) Schedule: 77 months per unit (preliminary) Unit Life: 30 years, possible Cernavoda Units 3 & 4 Project (cont’) WASHINGTON DC, USTDA , September

15 Milestones (preliminary) Construction 77 Months Construction 8. Cernavoda Units 3 & 4 Project (cont’) WASHINGTON DC, USTDA , September

Why CANDU? Existing Cernavoda site –licensed by Romanian Regulatory Body Take advantage of the advanced status of site civil works:52% Unit 3 and 30% Unit 4 started on CANDU 6 technology Excellent operating records at Cernavoda Units 1&2 Proven technology: CANDU Units in operation are among top ranked plants worldwide Existing local qualified expertise for CANDU plants in: design and R&D manufacturing fuel and heavy water construction, commissioning, operation & maintenance Licensing process initiated: Licensing Basis Document : approved Environmental Permit: in final stage Other main licenses activities: in progress 8. Cernavoda Units 3 & 4 Project (cont’) 16WASHINGTON DC, USTDA , September

Notification to EURATOM on the basis of art. 41  Art. 41 of the EURATOM Treaty “The individuals and industrial sectors described in Appendix II (nuclear power reactors of all types and for all usage purposes) have the obligation to notify the Commission the investment projects regarding new installations, as well as replacements and transformations in conformity to the criteria regarding the nature and the importance defined by the Council and established at the proposal of the Commission”  EnergoNuclear has notified the European Commission in accordance with art.41 of EURATOM treaty in June 2009  Currently, the European Commission is analyzing the project from the point of view of compliance with the provisions of the EURATOM Treaty and will send the Romanian authorities the official opinion. The favorable opinion of the European Commission represents a condition to start construction works on the two nuclear units and also for a possible EURATOM credit request by the Romanian Government. 8. Cernavoda Units 3 & 4 Project (cont’) 17WASHINGTON DC, USTDA , September

EnergoNuclear develops the Project, according to the Investor Agreement endorsed by GD 1565/2008, in two phases: Phase 1: The Pre-Project Phase 1. To arrive at final Project definition and cost and to perform the work required to achieve FID (Final Investment Decision) Inspection and evaluation of the existing assets Selection of main contractor Review of the feasibility study Negotiation and conclusion of main contracts and agreements (O&M, electricity off-take, decommissioning and waste disposal, etc.) Obtaining necessary approvals and licenses Financial agreement 8. Cernavoda Units 3 & 4 Project (cont’) 18WASHINGTON DC, USTDA , September

2. To perform technical/commercial work required to meet the project schedule post-FID Tech Specs for long term delivery equipment Initial plan for recruiting key operational staff 3. The Pre-Project Phase shall have as a result the Final Investors Decision by FIDD (September 30th 2010) Remarks Only activities necessary to obtain the construction license and to meet project schedule requirements will be undertaken No construction work will take place during Pre-Project phase 8. Cernavoda Units 3 & 4 Project (cont’) 19WASHINGTON DC, USTDA , September

Phase 2: The Project Phase Implementation of the Project by the Main Contractor. Main activities to be delivered: detail design and licensing equipment procurement construction and installation commissioning and testing starting commercial operation 8. Cernavoda Units 3 & 4 Project (cont’) 20WASHINGTON DC, USTDA , September

21 THANK YOU! WASHINGTON DC, USTDA , September