TENNESSEE VALLEY AUTHORITY WATTS BAR NUCLEAR PLANT Ed Freeman Engineering Manager 1

May Application for Construction Permits for WBN Unit 1 and 2 requested January Construction Permits for WBN Unit 1 and 2 issued October Application for an Operating License for WBN Units 1 and 2 Requested June Safety Evaluation Report for Operating License for WBN Units 1 and 2 (NUREG – 0847) issued September NRC “Show Cause” Letter to TVA Project History 2

Late WBN Unit 2 Construction Suspended May Nuclear Performance Plan (NPP) Describes Actions to Identify and Correct Problems at WBN December Safety Evaluation Report WBN NPP WBN Unit 1 (NUREG-1232) November NUREG-0847 Supplement 5 issued October FSAR Amendment 91 issued November Low Power Operating License for WBN Unit 1 issued February Operating License for WBN Unit 1 issued 3

Project History July TVA Formally Deferred WBN Unit 2 January 2007 – Detailed Scoping Estimating Planning Study July NRC Staff Requirements Memorandum August TVA Board Approves 5 Year Program for Completion of Construction of WBN Unit 2 August Construction Reactivation Letter July Construction Permit Extension 4

Installation Status Major structures complete System and component installations are substantially complete Approximately 6600 pipe hangers installed Substantial amount of instrument tubing incomplete Electrical cables 90+% pulled and terminated Some major components used in operating units – RCP’s, Charging Pump, Aux Feedwater Pump, RHR Heat Exchanger Equipment condition is good 5

Issues Related to Configuration Control Construction was stopped with incomplete documentation of installation status Some QA records were lost or incomplete Cable pull and termination cards were missing ASME data package assembly had not begun 79-02/-14 piping and hanger program documentation missing or not completed Operating units tended to use parts or whole components for maintenance replacements Very few as constructed drawings done 6

Objective for Completion Sound design supported by analysis Plant configuration that matches the sound design Construction completion statements or walkdown data for the configuration QA records for equipment and material ASME N-5 and N-3 forms signed off for applicable systems Refurbishment records establishing “as new” equipment condition Completed and successful test procedures documenting performance objectives met 7

Configuration Recovery Process Design Baseline Verification program – Review existing calculations produced for the licensing of U1, prepare a new U2 calc or make adjustments to the calculation for two unit operation – Review the original design documentation against current design standards and practices – Review/regenerate design criteria and system descriptions for every system – Program reviews (ie – Appendix R, EQ, 79-02/-14) for compliance status and objectives – Compare U1 existing design against U2 walkdown information – Review documentation of installations for incomplete or missing records 8

9 Configuration Recovery Process Field walkdowns Operational modes/flow diagrams “Pipe Tight” for Turbine Building Piping Isometrics Pipe Hanger detailed walkdowns (B31.1 and 79-02/-14) ASME N-5 regeneration Conduit installation and supports Cable Tray supports Cable terminations Some cable signal tracing Instrument Panels HVAC ductwork Embedded Plates 9

10 Configuration Recovery Process Walkdown information compared to U1 configuration control drawings, U1 design changes, U2 as designed drawings to determine the gap between installed and desired configuration Engineering packages issued for the gap Engineering Document Construction Release issued for incomplete construction or changes to existing design Process has controls for working in the vicinity of an operating unit Addresses ASME N-5 completion issues and deficiencies Construction closure process insures correct installation 10

WBN Unit 2 Refurbishment Refurbishment/Restoration - Performance of activities to restore a component to its former good condition. Inspections - disassembly to the extent necessary to verify or measure critical attributes (which may be affected by time), cleanliness, conditions of bearing or seating surfaces or components. Cleaning - Removal of dirt and other contaminants using pressurized air, water, approved solvents, etc., as necessary. System/component flushes, as part of the startup testing program, may be credited where applicable. Lubrication - Removal of old grease/oil from reservoirs, bearings, and other lubricated components and replacement with vendor specified or other engineering approved lubricants. Parts Replacement - Replacement of all “soft” parts which would degrade over time, such as gaskets, packing, elastomers, etc. “Passive Refurb” – Inspection of structures, piping, physical attributes to verify no significant pre-service degradation 11

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Preoperational Testing Component testing to demonstrate installation/refurbishment of individual items Full RG 1.68 testing program – Individual system functionals – System performance tests Flushing program/System cleanliness Integrated Safeguards Testing April 2011 Integrated Leak Rate Testing July 2011 Cold Hydro May 2011 Hot Functional August

Turnover to Operations Turnover process will include a validation that: – Required design calculations and other documents are complete and unverified assumptions have been closed – Design packages have been completed in the field – As constructed and configuration control drawings have been issued – Special programs and corrective actions for previous construction deficiencies have been completed – Refurbishment is complete – Preoperational testing is complete 15

Watts Bar Unit 2 Project Status Tracking to complete within the 60 month schedule Critical path - delivery of key equipment – Control systems, valves, pumps Engineering and licensing activities are on schedule FSAR amendment has been submitted Construction bulk work is gaining momentum CCW and annunciator systems turned over for startup testing 16

DSEP TVA Board Decision Full Power Operation October 2012 FSAR Amendment / OL Update Ready for Fuel Load April 2012 Regulatory Framework Construction Reactivation letter Licensing Activity Significant Project Milestone Major Engineering Complete – March 2010 Detailed Project Schedule Commence Principal Construction Activities Turbine on Turning Gear – October 2010 Primary Hydro – May 2011 Hot Functional – August 2011 Integrated Safeguards Testing – Apr 2011 U2 Emergency Plan Drill – May 2011 Fill Ice Condenser – July WBN2 Construction Completion Status

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