NEI Perspectives on Small Modular Reactors September 12, 2016 CREA Energy Innovations Summit Marc Nichol, mrn@nei.org, 202-739-8131

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 Runs When Needed (Fuel on Site) Provides Price Stability Supports Grid Stability September 12, 2016 CREA Energy Innovations Summit

Portfolio of Complementary Nuclear Technologies Large Light Water Reactors ~1,000 MWe Advantages Use proven technology Applications Baseload electricity Large stable grids Available: today Light Water Small Modular Reactors <300 MWe Enhanced safety Incremental addition of capacity Small to large grids Secure power source Locate at retired fossil plants Available: 2020’s Non-Water Cooled Reactors Large or small Fuel cycle options Electricity Industrial input Isotopes Hydrogen Remote locations Available: mid-2030’s September 12, 2016 CREA Energy Innovations Summit

Small Modular Reactor Designs Key design features Smaller source terms Lower decay heat levels Eliminates possibility of many types of accident Largely located below ground Use of natural circulation for core cooling Slower accident progression Leading designs US: NuScale, mPower, Westinghouse, Holtec Argentina: CAREM under construction South Korea: SMART NuScale Power Module September 12, 2016 CREA Energy Innovations Summit

Market Potential for SMRs Domestic Need 196 GW in new capacity by 2040 About 126 GW of coal to retire by 2030 SMRs potential >15 GW by 2040 International Growth in nuclear of 624 GW by 2040 Market size of $500B to $750B over next 10 years Approximately 5,000 to 10,000 jobs for every $1B in exports Sources: International Atomic Energy Agency; World Nuclear Association; U.S. Department of Commerce; Energy Information Administration September 12, 2016 CREA Energy Innovations Summit

CREA Energy Innovations Summit Challenges Sustained low-price of natural gas Subsidies for solar and wind Electricity market flaws Slow growth in electricity demand First-of-kind challenges September 12, 2016 CREA Energy Innovations Summit

DOE continues to support SMR development Licensing Technical Support program (LTS) 50/50 cost share with industry $452M authorized for 6 year program starting FY2012 $89.6M FY2017 funding request Awards to mPower, NuScale, TVA, UAMPS More is needed Design finalization costs ~$500M Challenges for first facilities Ernest Moniz, Secretary of Energy September 12, 2016 CREA Energy Innovations Summit

CREA Energy Innovations Summit SMR Start Mission SMR advocacy SMR commercialization Members – currently 15 Potential customers, and vendors investing in SMRs Chair: Dan Stout, TVA Vice-Chair: Jamie Mallon, PSEG Nuclear Policy statement on federal public-private partnerships September 12, 2016 CREA Energy Innovations Summit

Right-sizing the regulatory requirements Account for reduced risks Smaller size and enhanced safety Progress is being made Emergency preparedness Security Annual Fees Applications moving forward TVA, NuScale, UAMPS September 12, 2016 CREA Energy Innovations Summit

CREA Energy Innovations Summit SMR Path Forward Strong political support Clarity on SMR regulatory issues Deployment of first facilities in mid-2020s Westinghouse SMR NuScale Power Module mPowerTM Reactor Holtec SMR-160 September 12, 2016 CREA Energy Innovations Summit