1. The Benefits of Energy Diversity
Christine Csizmadia
Director, State Outreach & Advocacy
Nuclear Energy Institute
September 30, 2016
Women in Government
Thank WIG staff Carol and Pam

2. Plant Capacity by Source and MW
Give you sense of what we’re talking about, these are all the power plants of all generation sources all over the country. Nuclear is the pink. One the coasts and some midwestern plants. Big dark spots are gray circles.
Source: The Washington Post

3. U.S. Electricity Generation Fuel Shares 2015
All of the color splotches are represented with this chart. Nuclear is 19%. And this has changed over the years. 10 years ago when I started in nuclear, coal was closer to 50% and gas was closer to 20% than 30%
Source: Energy Information Administration
Updated: 3/16

4. 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
Even before the introduction of the clean power plan, the conversation about energy has taken into account that electricity is not a usual commodity. It’s not like corn or coffee where you can stockpile it. It’s a very unique commodity, as are its attributes.
When we talk about nuclear we further drill down into the conversation to talk about nuclear’s unique attributes
Nuclear is an economic powerhouse on jobs and taxes
It runs 24/7, it’s reliable, that’s the backbone of the energy grid, resources that run all the time are called “baseload”, that’s grid stability
Times like the Polar Vortex a few years back, when the midwest was frozen spotlight the times when reliability and fuel on site/don’t need have frozen pipelines or fuel shortages to worry about
It avoids carbon free (fuel pellet example)
Runs When Needed (Fuel on Site)
Provides Price Stability
Supports
Grid Stability

5. Preventing Electric Sector Carbon Emissions
U.S. Electric Power Industry CO2 Avoided Million Metric Tons 2013
Source: Emissions avoided are calculated using regional and national fossil fuel emissions rates from the Environmental Protection Agency and generation data from the Energy Information Administration.
Just a spot light on the environmental benefits of nuclear. There are 99 operating reactors in the U.S. generating about 20% of the generation.
Within that 20% wedge, nuclear makes up 64% of the carbon free electricity
This chart is the inside of the other pie chart I showed you
U.S. Carbon-Free
Electricity Sources
2013

6. America’s Power Supply Challenge: Fuel Diversity at Risk
As much as one-third of today’s coal-fired capacity may be lost in next 5-10 years
342,000 megawatts of gas-fired generation built since 1995 (75% of all new capacity)
Renewables will expand, but they’re not baseload
I would be remiss to not note that when the attributes I mentioned before are not given fair credit, it has market implications. In Illinois there are conversations about a Zero Emissions Standard, which is a sister policy to a Renewable Portfolio Standard, which would include nuclear. Other states have considered “low carbon standard” or a “clean energy standard”
The need to have these types of policy changes comes from the implications of other policies, that and market and pressures. What I mean by that is low natural gas prices coupled with renewable portfolio standards in states have causes so much pressure in energy markets that the energy pricing is supressed and what happens when you put pressure somewhere? It has to release somewhere else. And that’s what happening to nuclear.

7. Impact of Plant Shutdowns in Illinois
PJM analysis for Illinois Commerce Commission:
$307 million-$437 million annual increase in load payments in ComEd zone
$752 million-$1.3 billion annual increase in load payments in PJM
“Significant thermal and voltage violations”
NEI analysis:
2,500 direct jobs lost; 9,000 direct and indirect
$2.4 billion in direct lost economic value; $3.6 billion direct and indirect
These energy market signals are causing pressures on nuclear plants and resulting in closures of fully functioning and capable plants
With that comes thousands of lost jobs and economic revenue

8. Impacts of Losing Electricity Diversity
$93 billion increase in cost of electricity per year
25% increase in retail power prices, along with increased price volatility
$200 billion reduction in GDP each year due to higher electricity prices
1 million fewer jobs resulting from lower GDP
$2,100 increase in electricity costs per year for the typical household
A couple of years ago and I NEI provided WIG with a similar presentation years ago about a report that we commissioned with the US chamber of commerce and the Edison Electric Institute which is our big sister trade association about what happens when you lose energy diversity
I think for your purposes I would point to the last bullet $2100 increase in electricity costs per household.
The only way to save your constituents from price volatility in their electrical bills, is to preserve energy diversity
You need it all and you need policies that are inclusive and comprehensive
There are 30 states with RPSs and years ago when states started passing RPSs, I don’t know if the conversations considered the implications for nuclear power down the road but that’s the kind of policy