1. Nuclear Oversight Conference Bill Pitesa, Duke Energy CNO July 26, 2017

2. Charlotte, NC Charlotte as an energy and nuclear leader in the US:
Energy sector
Over 200 energy companies in the Charlotte region
34,000 employees
55,000 indirect employees
$7.1B wages and benefits
$19.5B total economic impact
19 institutions offer 29 programs in the energy field
Nuclear hub
Carolinas is home to largest nuclear generating capacity in the US - exceeding 23,000 employees producing $20B annually in value
Charlotte has 6 times the national average employment in the Nuclear power generation sector 2

3. Who is Duke Energy?
Regulated utility operations serves 7.5 million retail electric customers in 6 states
49,300 megawatts total generating capacity in Carolinas, Midwest and Florida
32,200 mile transmission network
268,700 mile distribution network
Approximately 29,000 employees
Acquired Piedmont Natural Gas in 2016 – expanded natural gas services in the Carolinas and Tennessee
Serve more than 1.5 million natural gas customers system-wide 3

4. Duke Energy Nuclear Operating Fleet
Brunswick Nuclear Plant
Robinson Nuclear Plant
Harris Nuclear Plant
Oconee Nuclear Station
McGuire Nuclear Station
Catawba Nuclear Station 4

5. Nuclear Industry Costs
US nuclear power plant costs have risen significantly since 2000 5

6. Recently Shutdown/Planned Shutdown Nuclear Plants
Crystal River
Vermont Yankee
Kewaunee
Diablo Canyon 1, 2
San Onofre 2, 3
Fort Calhoun
Pilgrim
Oyster Creek
Indian Point 2, 3
Palisades
Three Mile Island
Since 2010:
Six nuclear units have shut down.
Eight nuclear units have announced shutdown/retirement. 6

7. Delivering the Nuclear Promise
Safe, Reliable, Cost-effective
57 total efficiency bulletins (EBs) have been issued by the industry to date
20 additional EBs are planned for issuance in 2017
Duke Energy has implemented 35 EBs with 14 more to be implemented in 2017
At Duke, ~300,000 work hours have been eliminated through DNP initiatives

8. The Duke Energy Approach
Efficiency Improvements
Organizational Optimization
Outage Excellence
Cost Management

9. EB 16-27b - Optimized Corporate Oversight and Assessment
At Duke, we are reorganizing assessment functions to be aligned with CFAMs
Audit and Quality Controls will remain in Nuclear Oversight Organization (NOS)
By mid-2018, approximately 20 personnel reductions in NOS and assessments
Strong governance and change management to more clearly delineate roles and responsibilities are in place to assure effective transition

10. EB 16-23 – Streamlined Use of Off-site Review Committee
Nuclear Safety Review Board meetings will be reduced from 12 per year (with 4 subcommittees each) to 4 per year (with 1 subcommittee per site)
NSRB subcommittee will focus on the most significant gap area at the site
Three sites combined into single review week. Subcommittees will perform review at given site and travel to host site for full committee meeting.
Duke will continue to use external consultants to provide external oversight via the NSRB
Provides substantial resource, soft and hard dollar savings while providing corporate executives with an external oversight model tailored to the performance needs of the station

11. Challenges Inherent with Industry Changes to Oversight
With multiple oversight and performance improvement functions changing simultaneously…
We must keep the holes from lining up
Line leaders must fill the gap, even while their own organizations get smaller
Oversight organizations need to focus on the line’s ability to find and fix their own problems while they are small, by assessing the line’s:
Self criticality
Threshold for identifying and acting on emerging trends
Willingness to coach and correct at every level, every time