1. Nuclear Energy 2016: Status and Outlook
ECA Peer Exchange
February 17, 2016

2. Record Capacity Factor in 2015 U.S. Nuclear Plant Capacity Factor
U.S. reactors set record capacity factor: 91.9%
Nuclear plants generated 798 billion kWh in 2015
Average refueling outage duration declined again:
2015: 36 days
2014: 37 days
2013: 41 days
U.S. Nuclear Plant Capacity Factor
91.9% in 2015*
91.7% in 2014
89.9% in 2013
86.1% in 2012
89.1% in 2011
91.1% in 2010
Source: Energy Information Administration
* NEI estimate

3. Status of First License Renewal
Forty reactors have passed 40-year mark
Approximately 31,000 MW of nuclear capacity will reach 60 years between 2029 and 2035
Approximately one-half U.S. nuclear capacity will reach 60 years by 2040
81 Reactors Approved
11 Reactors Under Review
6 Reactors Intend to Renew
Source: Nuclear Regulatory Commission

4. Status of Second License Renewal
NRC regulatory process stable, well-understood; existing regulations adequate
In November 2015, Dominion Virginia Power announced intent to file second license renewal application for Surry nuclear plant
Decision to renew a second time depends on whether market conditions justify capital investment required

5. New Nuclear Plant Construction
Watts Bar 2 ready for commercial operation around midyear
Major project management improvements at Vogtle, Summer projects
Westinghouse purchase of CB&I/Stone & Webster
EPC contracts restructured
Excepted online 2019 and 2020
Fuel assemblies being loaded into Watts Bar 2

6. Preserving the Nuclear Option
NuScale Power expects to file design certification for its small modular reactor in 4th quarter
Growing interest in GEN-IV reactors

7. Market Stresses … In Brief
Low growth (in some cases, no growth) in electricity demand
Continuing surge in supply of low-cost shale gas
Fuel/technology diversity is taken for granted and undervalued
State and federal mandates and subsidies for renewables distort markets
Transmission constraints
Market design issues
Failure of markets to recognize valuable attributes
Price suppression in energy markets

8. Solutions Emerging Among the States
States beginning to recognize need to act
Ohio considering PPA for Davis-Besse
New York – Reliability Support Services Agreement for Ginna
Illinois considering low-carbon portfolio standard, New York developing Clean Energy Standard
States can also use tools available under Clean Power Plan
Closing nuclear facilities “would eviscerate the emission reductions achieved through the state’s renewable energy programs, diminish fuel diversity, increase price volatility, and financially harm host communities.”
– New York Gov. Andrew Cuomo
Dec. 2, 2015

9. Creating Additional Margin By Increasing Efficiency

10. Industry Goals: Safety, Reliability and Improved Efficiency
Sustain high levels of safety and reliability
Identify opportunities and re- design plant processes to improve efficiency and effectiveness
Use innovative technology to increase efficiency across the industry
The goal: $12/megawatt-hour cost reduction industrywide

11. The Goal: 30% Reduction in Cost
Why 30%? To drive innovative thinking, not just tinkering at the margin
How the Arithmetic Works
Starting point: 2012 total generating cost*
$40/MWh
Goal
$12/MWh reduction
Where Does the $12/MWh Reduction Come From?
Reduction in capex
$3.50/MWh
Estimated reduction in capex through 2020
$3/MWh
Estimated reduction in fuel costs through 2020
$2/MWh
Estimated cost reductions from improved industry efficiency
* was peak year for total generating cost

12. Taxpayers Paying Billions For Federal Government’s Failure to Accept Used Nuclear Fuel
$5.3 Billion paid from taxpayer-funded Judgment Fund as of September 2015 for damages incurred because DOE did not begin accepting used nuclear fuel in 1998
Liabilities will continue to grow after DOE begins accepting used fuel until backlog eliminated (decades)
DOE estimates the total taxpayer liability at $29 Billion if it begins accepting used fuel in 2021
Every year of delay in opening a facility will cost the taxpayer an additional $500 million (estimated)
Taxpayer liabilities not paid from Nuclear Waste Fund
So far 4.5 billion paid
Liabilities continue to grow – estimated at 27.1 billion last year if they begin moving used fuel in 2021

13. Everett Redmond Nuclear Energy Institute elr@nei.org 202-739-8122
Questions?
Everett Redmond Nuclear Energy Institute