Effluent Releases ANI - Update William Wendland, P.E. American Nuclear Insurers Glastonbury, Connecticut USA Mashantucket, CT June 2006 “ RETS – REMP WORKSHOP 2006” AMERICAN NUCLEAR INSURERS

Risk  Term is all inclusive, many components  Biological  Radiological  Financial  Corporate Liability  Others “RETS – REMP 2006"   AMERICAN   NUCLEAR   INSURERS

Nuclear Liability Insurance Risk  $300 Million US Provided to Each US NPP Site  Protection Covers Operators & Suppliers Against Bodily Injury or Property Damage Caused by Nuclear Hazard  Losses Can Be Catastrophic or Non-Catastrophic  Claims Defense Costs Can Be Major Portion of Claim “RETS – REMP 2006"   AMERICAN   NUCLEAR   INSURERS

Nuclear Liability Insurance Risk (Effluent Releases)  Increased Public Awareness of NPP Effluent Releases & Perception of Personal Risk  Public does not differentiate between Isotope of Cobalt and Tritium  1 atom Co-60 ~ 1 atom of Tritium (perception)  NPP Releases Cause Harm ! (Perception) “RETS – REMP 2006"   AMERICAN   NUCLEAR   INSURERS

Nuclear Liability Insurance Risk  Recent Global Risk Management Experience – Compliance with Applicable Jurisdictional Regulations does not always offer protection from future environmental liabilities  Facilities Can Mitigate Excessive Claims Defense Costs Through Evidence of Due Care and Proper Operation “RETS – REMP 2006"   AMERICAN   NUCLEAR   INSURERS

How  Proactive Contemporary Risk Management Principals (not necessarily regulatory driven) Risk Minimization Risk Minimization High Quality Decisions High Quality Decisions Balanced Effluent Release Program Balanced Effluent Release Program “RETS – REMP 2006"   AMERICAN   NUCLEAR   INSURERS

ANI Environmental Guidelines  Distributed March 1996  4 Principal Areas Environmental Management Environmental Management Effluent Release Management Effluent Release Management Environmental Monitoring Environmental Monitoring Radioactive Materials Management Radioactive Materials Management “RETS – REMP 2006"   AMERICAN   NUCLEAR   INSURERS

Environmental Management  Groundwater Monitoring (pp 24-25)  Experience underground piping breaches underground piping breaches pond liner leaks pond liner leaks above ground tank & SFP leaks above ground tank & SFP leaks  On and Off-Site GW Contaminations “RETS – REMP 2006"   AMERICAN   NUCLEAR   INSURERS

Environmental Monitoring - Experience  Many sites installed wells to monitor for leaks to groundwater at ANI request. ANI Recommendations Underwriting Adjustments ANI Recommendations Underwriting Adjustments  Wells provided indication of piping, pond, tank or SFP integrity breaches “RETS – REMP 2006"   AMERICAN   NUCLEAR   INSURERS

Recent Industry Experience  Recent Industry Experience  Challenging Public Confidence “RETS – REMP 2006"   AMERICAN   NUCLEAR   INSURERS

Industry Initiative Objective  Improve management of situations involving inadvertent radiological releases to groundwater  Enhance trust and confidence on the part of local communities, States, the NRC and the public in the nuclear industry’s commitment to a high standard of public radiation safety and protection of the environment. “RETS – REMP 2006"   AMERICAN   NUCLEAR   INSURERS

Industry Initiative Action Plan  Issued last Thursday 6/22/06  July 31, 2006 Milestone  Voluntary Reporting Questionnaire  Implement Action Plan “RETS – REMP 2006"   AMERICAN   NUCLEAR   INSURERS

Summary  ANI Supports the Industry Initiative and looks forward to its successful implementation. “RETS – REMP 2006"   AMERICAN   NUCLEAR   INSURERS