The Benefits of Energy Diversity Christine Csizmadia Director, State Outreach & Advocacy Nuclear Energy Institute September 30, 2016 Women in Government Thank WIG staff Carol and Pam

Plant Capacity by Source and MW Give you sense of what we’re talking about, these are all the power plants of all generation sources all over the country. Nuclear is the pink. One the coasts and some midwestern plants. Big dark spots are gray circles. Source: The Washington Post

U.S. Electricity Generation Fuel Shares 2015 All of the color splotches are represented with this chart. Nuclear is 19%. And this has changed over the years. 10 years ago when I started in nuclear, coal was closer to 50% and gas was closer to 20% than 30% Source: Energy Information Administration Updated: 3/16

Nuclear Energy’s Solid Value Proposition Safe, Reliable Electricity 24/7 Plus … Anchors the Local Community: Jobs, Tax Base Avoids Carbon Emissions Contributes to Fuel and Technology Diversity (Portfolio Value) Provides Clean Air Compliance Value Even before the introduction of the clean power plan, the conversation about energy has taken into account that electricity is not a usual commodity. It’s not like corn or coffee where you can stockpile it. It’s a very unique commodity, as are its attributes. When we talk about nuclear we further drill down into the conversation to talk about nuclear’s unique attributes Nuclear is an economic powerhouse on jobs and taxes It runs 24/7, it’s reliable, that’s the backbone of the energy grid, resources that run all the time are called “baseload”, that’s grid stability Times like the Polar Vortex a few years back, when the midwest was frozen spotlight the times when reliability and fuel on site/don’t need have frozen pipelines or fuel shortages to worry about It avoids carbon free (fuel pellet example) Runs When Needed (Fuel on Site) Provides Price Stability Supports Grid Stability

Preventing Electric Sector Carbon Emissions U.S. Electric Power Industry CO2 Avoided Million Metric Tons 2013 Source: Emissions avoided are calculated using regional and national fossil fuel emissions rates from the Environmental Protection Agency and generation data from the Energy Information Administration. Just a spot light on the environmental benefits of nuclear. There are 99 operating reactors in the U.S. generating about 20% of the generation. Within that 20% wedge, nuclear makes up 64% of the carbon free electricity This chart is the inside of the other pie chart I showed you U.S. Carbon-Free Electricity Sources 2013

America’s Power Supply Challenge: Fuel Diversity at Risk As much as one-third of today’s coal-fired capacity may be lost in next 5-10 years 342,000 megawatts of gas-fired generation built since 1995 (75% of all new capacity) Renewables will expand, but they’re not baseload I would be remiss to not note that when the attributes I mentioned before are not given fair credit, it has market implications. In Illinois there are conversations about a Zero Emissions Standard, which is a sister policy to a Renewable Portfolio Standard, which would include nuclear. Other states have considered “low carbon standard” or a “clean energy standard” The need to have these types of policy changes comes from the implications of other policies, that and market and pressures. What I mean by that is low natural gas prices coupled with renewable portfolio standards in states have causes so much pressure in energy markets that the energy pricing is supressed and what happens when you put pressure somewhere? It has to release somewhere else. And that’s what happening to nuclear.

Impact of Plant Shutdowns in Illinois PJM analysis for Illinois Commerce Commission: $307 million-$437 million annual increase in load payments in ComEd zone $752 million-$1.3 billion annual increase in load payments in PJM “Significant thermal and voltage violations” NEI analysis: 2,500 direct jobs lost; 9,000 direct and indirect $2.4 billion in direct lost economic value; $3.6 billion direct and indirect These energy market signals are causing pressures on nuclear plants and resulting in closures of fully functioning and capable plants With that comes thousands of lost jobs and economic revenue

Impacts of Losing Electricity Diversity $93 billion increase in cost of electricity per year 25% increase in retail power prices, along with increased price volatility $200 billion reduction in GDP each year due to higher electricity prices 1 million fewer jobs resulting from lower GDP $2,100 increase in electricity costs per year for the typical household A couple of years ago and I NEI provided WIG with a similar presentation years ago about a report that we commissioned with the US chamber of commerce and the Edison Electric Institute which is our big sister trade association about what happens when you lose energy diversity I think for your purposes I would point to the last bullet $2100 increase in electricity costs per household. The only way to save your constituents from price volatility in their electrical bills, is to preserve energy diversity You need it all and you need policies that are inclusive and comprehensive There are 30 states with RPSs and 20-30 years ago when states started passing RPSs, I don’t know if the conversations considered the implications for nuclear power down the road but that’s the kind of policy