2010 An Overview of Ameren Missouri’s Callaway Plant and Site Permit Legislation 2011

2 AMEREN MISSOURI Ameren Missouri (orange)  1.2 million Electric customers  126,000 Natural Gas customers  500 communities served  24,000 square mile territory  4,400 Employees

3 AMEREN MISSOURI GENERATION…over 10,000 MW Rush Island Jefferson Co. 1,204 MW 1976 Taum Sauk Reynolds Co. 440 MW 1963 & 2010 Meramec STL Co. 839 MW 1953 Osage Lakeside, MO 234 MW 1931 Callaway Callaway Co. 1,200 MW 1984 Labadie Franklin Co. 2,407 MW 1970 Sioux St. Charles Co. 986 MW 1967 Keokuk Iowa 137 MW 1913 CTGs MO & IL 2,966 MW

4 AMEREN MISSOURI – PLANNING FOR THE FUTURE Utilities are required to file an Integrated Resource Plan every 3 years Ameren Missouri filed Feb. 23, 2011 (charts below from report) A very important and very resource intensive process with a great deal of discussion with stakeholders with a broad range of interests Levelized Cost of Energy of Generation Options Cents/KWh

5  Missouri’s demand for electricity is expected to increase by 20 to 25 percent in the next 20 years.  The state of Missouri will need new base load generation in the future, even with implementation of energy efficiency programs and investing in renewable energy sources such as wind and solar.  Within the next 20 years, about 90% of Missouri’s coal-fired power plants may or could have to be retired  Anticipated federal regulations and consideration of federal carbon tax proposals would drive up the cost of power derived from fossil fuels MISSOURI ELECTRICITY DEMAND

6 MISSOURI’S AGING POWER PLANT FLEET These plants provide 58% of Missouri’s capacity and 89% of our energy

7 RETIRING U.S. POWER PLANTS Nearly 70 percent of power plants are retired by the age of 50 The planning and construction process for major power plants is long, possibly more than a decade.

8 POSSIBLE UPCOMING COSTLY REGULATIONS

9 RESIDENTIAL RATES IN THE USA AND PERCENT CHANGE (EEI SURVEY - SUMMER 2010) Over 15¢ Between 11¢ and 15¢ Between 9¢ and 11¢ Between 8¢ and 9¢ Below 8¢ Ameren Missouri 2% Ameren Missouri 2% CURRENT 12 MONTH AVERAGE (IN CENTS /KWH) BASED ON EEI’S TYPICAL BILL SURVEY, SUMMER (Nebraska based on EIA data) ELECTRICITY PRICES PERCENT CHANGE USA Average 39% USA Average 39% USA AVERAGE 11.74¢ AMEREN MISSOURI 7.18¢ 39% BELOW USA AVERAGE

10 AMEREN MISSOURI RESIDENTIAL RATES Ameren Missouri’s average electric rates are significantly below the national average. Source: Edison Electric Institute (EEI) National Avg Cents/KWh 6.98 Cents/KWh 6.52 Cents/KWh 6.60 Cents/KWh Cents per KWh Cents/KWh Cents/KWh 7.90 Cents/KWh 2010

11 NUCLEAR ENERGY 101 and AMEREN MISSOURI’S CALLAWAY PLANT

12 How many nuclear plants are operating in the United States? A) 17 B) 39 C) 104 D) 565 QUESTION:

13 Nuclear power provides what percentage of electricity in the United States? A) 5 percent B) 20 percent C) 46 percent D) 63 percent QUESTION:

14  Largest producer of nuclear energy in the world  Nuclear energy provides 20% of U.S. electricity  A 1,200 megawatt reactor like Callaway powers 700,000 average households each year  Oldest operating plant is located in Oyster Creek, N.J. (1969) UNITED STATES 104 reactors in 31 states

15 CALLAWAY PLANT  Operating safely and reliably since Dec  4 th highest lifetime generation among the 104 U.S. nuclear plants through 2010  18 th highest lifetime generation, through 2010, among the 439 nuclear plants worldwide  Provides 19% of the total electricity generation for Ameren Missouri  In 2009, generated the most electricity in any calendar year since coming online in 1984 (10.2 million megawatt-hours)

16 CALLAWAY PLANT – BENEFITS MISSOURI’S ECONOMY By City:By County: Fulton = 264Callaway = 435 Columbia = 169Boone = 181 Jefferson City = 151Cole = 162 Holts Summit = 48Gasconade = 35 New Bloomfield = 28Montgomery = 30 Hermann = 27Audrain = 21 Steedman = 25Franklin = 13 Mokane = 23St. Charles = 12 Auxvasse = 18Warren = 6 Mexico = 17Osage = 5 Montgomery City = 15St. Louis, Madison, Moniteau (tie) = 2 Tebbetts = 13All Other Counties = 5 All Other Cities = 113 Callaway Plant employs over 900 people

17  Safety is our highest priority – Three Types: –Nuclear - protect the public and our environment –Radiological – limit our employees’ exposure to radiation –Industrial – protect our employees from injury  Completed one of our safest years in 2010:  Had no Lost Workday Accidents  Had zero nuclear safety events  NRC inspectors work at each plant for daily inspections  Stringent physical security barriers & armed guards protect the plant  Automatic shutdown mechanisms  Highly-trained personnel – including Licensed Operators  Plant Design includes multiple back-up safety systems –Redundant (back-up) Systems –Alternate Sources of Water –Alternate Sources of Power  Radiological Emergency Response Plan –Protection of the General Public, 10 Mile Emergency Planning Zone (EPZ) SAFETY and SECURITY

18 HOW DOES NUCLEAR ENERGY WORK?

19 EARTHQUAKE IN JAPAN On March 11, 2011 a 9.0 earthquake struck off the coast of Japan The Fukushima Daiichi plants automatically tripped offline with emergency diesel generators supplying backup power to complete the shut down of the plant The resulting tsunami compromised the plant’s emergency power systems Japan has 54 nuclear reactors, with two more under construction

20 FUKUSHIMA DAIICHI NUCLEAR POWER FACILITY BEFORE THE NATURAL DISASTERS Unit 1 Unit 2 Unit 3 Unit 4 Units 5, 6 At the time of the earthquake Reactors 1, 2 and 3 operating Reactors 4, 5 and 6 shutdown for maintenance, inspection, refueling

21 BOILING WATER REACTOR DESIGN AT FUKUSHIMA DAIICHI

22 Examples of Differences Between U.S. and Japanese Reactor Operations United StatesJapan 1.Post 9/11/01 actions to address large fires and explosions 1.No similar action taken 2.Independent regulatory agency with 4,000 employees and $1 billion budget 2.Regulator is part of Ministry of Economy, Trade and Industry 3.Industry organization for oversight and sharing operating experience – Institute of Nuclear Power Operations (INPO) 3.No similar industry organization 4.Site-specific simulator for each reactor; operators train one week out of six 4.Shared simulators for multiple plants 5.Command and control in the hands of highly-trained operators 5.Command and control in the hands of government and corporate management

23 CALLAWAY PLANT DESIGN FEATURES Emergency Safety Systems include multiple emergency power sources: 2 Ameren power lines to the site 2 Emergency Diesel Generators (onsite) 1 power line from local Rural Co-op 4 Standby Diesel Generators (offsite) Additional Emergency Safety Features: Steam powered cooling water pump with DC battery powered controls system A 30-day cooling water supply stored on- site in a seismically designed retention pond Severe Accident Management Procedures developed for beyond design events

24 Offsite Emergency Generators Inside Containment Callaway Plant Safety Features

25 NUCLEAR FUEL SAFEGUARDS Nuclear fuel has three barriers to protect the public: 1.Fuel pellets are sealed in zirconium tubes 2.Fuel assemblies are enclosed in the steel reactor pressure vessel that is 8-inches thick 3.Reactor is enclosed in the concrete containment structure that is 4-feet thick

26  All U.S. nuclear plants store their own used fuel  All the used fuel at Callaway Plant since 1984 is stored in a fuel pool about the size of a tennis court  U.S. Government is no longer funding a national repository underneath Yucca Mountain in Nevada  U.S. one of the few countries with a significant nuclear power program that does not recycle used fuel MANAGING USED FUEL

27 THE PATH FORWARD  The Missouri Utility partnership is committed to providing safe, clean, reliable and low cost nuclear power as a part of our state’s energy future.  Despite the recent tragedy in Japan, nuclear energy is a viable long term solution.  The U.S. and worldwide nuclear community will learn from the Japanese events and make our current fleet of plants, as well as future plants, even safer.

28 ESSENTIAL FACTS ABOUT A SITE PERMIT Granted by the Nuclear Regulatory Commission Commonly used to preserve the option of nuclear power as a future energy source The application review takes up to three years and includes: –Site safety analysis –Environmental report –Emergency planning information Requires studies and other expenditures totaling approximately $40 million –Costs would be paid by Missouri’s electric service providers and would cost the average residential consumer less than two dollars per year –For commercial and industrial customers the impact is less than a 0.2% increase in rates. Streamlines process for obtaining a construction permit if Missouri decides that a new nuclear plant is the best option for meeting future energy needs

29 THE LEGISLATION HB 462 died without a vote on the Senate floor on May 13, 2011 (end of session) Was a compromise bill agreed to by all parties, including industrial customers Sen. Kehoe (R-dist. 6) – Jefferson City requesting Gov. Nixon to call a special session It would have allowed recovery of permitting costs over 20 years only after the NRC grants the Site Permit (2014 timeframe) and the MO PSC deems expenditures prudent. Consumer Protections: –Sets a hard $45 million cap on recoverable costs of a Site Permit –Contains a clawback (includes all monies collected from consumers), plus interest and a sharing of profits, if an approved Site Permit were sold or transferred to another utility or company –Contains a clawback for imprudence if the project doesn’t move forward in the future. –Contains significant reporting requirements to the PSC on the project. –Contains Office of Public Counsel (OPC) funding from MO General Revenue