Nuclear Oversight Conference Bill Pitesa, Duke Energy CNO July 26, 2017

Charlotte, NC Charlotte as an energy and nuclear leader in the US: Energy sector Over 200 energy companies in the Charlotte region 34,000 employees 55,000 indirect employees $7.1B wages and benefits $19.5B total economic impact 19 institutions offer 29 programs in the energy field Nuclear hub Carolinas is home to largest nuclear generating capacity in the US - exceeding 23,000 employees producing $20B annually in value Charlotte has 6 times the national average employment in the Nuclear power generation sector 2

Who is Duke Energy? Regulated utility operations serves 7.5 million retail electric customers in 6 states 49,300 megawatts total generating capacity in Carolinas, Midwest and Florida 32,200 mile transmission network 268,700 mile distribution network Approximately 29,000 employees Acquired Piedmont Natural Gas in 2016 – expanded natural gas services in the Carolinas and Tennessee Serve more than 1.5 million natural gas customers system-wide 3

Duke Energy Nuclear Operating Fleet Brunswick Nuclear Plant Robinson Nuclear Plant Harris Nuclear Plant Oconee Nuclear Station McGuire Nuclear Station Catawba Nuclear Station 4

Nuclear Industry Costs US nuclear power plant costs have risen significantly since 2000 5

Recently Shutdown/Planned Shutdown Nuclear Plants Crystal River Vermont Yankee Kewaunee Diablo Canyon 1, 2 San Onofre 2, 3 Fort Calhoun Pilgrim Oyster Creek Indian Point 2, 3 Palisades Three Mile Island Since 2010: Six nuclear units have shut down. Eight nuclear units have announced shutdown/retirement. 6

Delivering the Nuclear Promise Safe, Reliable, Cost-effective 57 total efficiency bulletins (EBs) have been issued by the industry to date 20 additional EBs are planned for issuance in 2017 Duke Energy has implemented 35 EBs with 14 more to be implemented in 2017 At Duke, ~300,000 work hours have been eliminated through DNP initiatives

The Duke Energy Approach Efficiency Improvements Organizational Optimization Outage Excellence Cost Management

EB 16-27b - Optimized Corporate Oversight and Assessment At Duke, we are reorganizing assessment functions to be aligned with CFAMs Audit and Quality Controls will remain in Nuclear Oversight Organization (NOS) By mid-2018, approximately 20 personnel reductions in NOS and assessments Strong governance and change management to more clearly delineate roles and responsibilities are in place to assure effective transition

EB 16-23 – Streamlined Use of Off-site Review Committee Nuclear Safety Review Board meetings will be reduced from 12 per year (with 4 subcommittees each) to 4 per year (with 1 subcommittee per site) NSRB subcommittee will focus on the most significant gap area at the site Three sites combined into single review week. Subcommittees will perform review at given site and travel to host site for full committee meeting. Duke will continue to use external consultants to provide external oversight via the NSRB Provides substantial resource, soft and hard dollar savings while providing corporate executives with an external oversight model tailored to the performance needs of the station

Challenges Inherent with Industry Changes to Oversight With multiple oversight and performance improvement functions changing simultaneously… We must keep the holes from lining up Line leaders must fill the gap, even while their own organizations get smaller Oversight organizations need to focus on the line’s ability to find and fix their own problems while they are small, by assessing the line’s: Self criticality Threshold for identifying and acting on emerging trends Willingness to coach and correct at every level, every time