1. COG Official Use Only Excellence through Collaboration CANDU Owners Group Inc. Research & Development Program Peter Ernst Program Manager, Health, Safety and Environment Program, Research & Development Nuclear 2013, Pitesti Romani - May, 2013

2. 2 of 29 Introduction to COG COG Research & Development Program Recent R&D Highlights

3. 3 of 29 The Company Is a Federally Incorporated Not-for-Profit Corporation President is accountable to a Board of Directors Board is accountable to the Shareholders COG: VotingNon Voting OPG, Canada NPCIL, India AECL, Canada KHNP, Korea Bruce Power, CanadaTQNPC, China NB Power, CanadaNASA, Argentina SNN, RomaniaHydro Quebec, Canada PAEC, Pakistan Members are: AMEC NSS; Kinectrics; B&W; CAMECO; CPUS; GE Hitachi; Candu Energy; Aecon There are also Supplier Participants:

4. 4 of 29 CANDU Reactors in the World *2 CANDUs – the other units are indigenous PHWRs

5. 5 of 29 COG Mission and Vision To improve the performance of CANDU stations worldwide through member collaboration. Mission CANDU Excellence Through Collaboration Vision

6. 6 of 29 The Business Approximately a $75M annual business that is designed to bring value to the Industry by: Leveraging investments by identifying common needs and initiating Joint Projects Solving Industry problems by either linking Members to solution sources or facilitating solutions Looking across the Industry to identify opportunities for collaboration and avoidance of duplicated effort Managing CANDU operationally focused R&D investment – so that each Member gets leveraged investment and benefit Providing OPEX – Events, Pattern Analysis, Alerts, Good Practices Linking Members to a warehouse of Information

7. 7 of 29 Organizational Structure Information Exchange Tom Henderson Nuclear Safety and Environmental Affairs Martin Reid Research & Development Frank Doyle –OPEX –CANTEACH –EPRI Interface –Communications –Workshops and Conferences –Supplier Participants –Knowledge Management –Nuclear Safety –Environmental Affairs –Risk Informed Regulation –Regulatory Issues Support and Information Exchange –Fuel Channels –Safety & Licensing –Health, Safety & Environment –Chemistry, Materials & Components –Industry Standard Tool Set Business Services Rod McIvor President & CEO Robert Morrison –CANPAC –Joint Projects –Fuel Channel Life Management –CANDU Inspection Qualification Bureau Strategic Planning & Transition Bob Goodman Office Services Bernice Brooks Information Technology Carmen Trandafir Joint Projects & Services Barry Collingwood

8. 8 of 29 Introduction to COG COG Research & Development Program Recent R&D Highlights

9. 9 of 29 COG R&D GOAL COG’s R&D Goal is to assist participating Members to achieve excellence in the safety, reliability and economic performance of their CANDU stations worldwide by initiating and managing jointly funded R&D COG R&D addresses current and emerging operating issues to support the safe, reliable and economic operation of CANDU reactors. is sponsored by Ontario Power Generation, Bruce Power LP, New Brunswick Power Nuclear, SNN-SA (Romania), KHNP (Korea) and by Atomic Energy of Canada Limited. Deals mainly with CANDU-specific problems.

10. 10 of 29 R&D Program Overview Chemistry, Materials & Components addresses a diverse range of CANDU reactor operating and maintenance issues that impact the economics and reliability of a station and may shorten its operating life: chemistry control regimes; material aging effects; valves; cables; sealants; lubricants and other organically based materials. Fuel Channels addresses the issue of fuel channel life cycle management through technical support for fitness for service (CSA N285.8). refining the models to predict deformation, corrosion and deuterium ingress. Safety and Licensing addresses issues relating to the safety design basis and safe operating envelope of existing facilities focuses on the resolution of outstanding generic safety and licensing issues

11. 11 of 29 R&D Program Overview Health, Safety and Environment Addresses issues related to radiation monitoring and dosimetry, including the establishment of the risks of radiation exposure Addresses regulatory aspects of ecological impact, emission reduction and techniques for monitoring emissions and the environment Industry Standard Toolset Is a consolidation of the validation, development and maintenance activities on different computer codes used for the design, safety analysis and operational support of CANDU reactors

12. 12 of 29 Leveraged R&D Investment Fuel Channels Safety & Licensing Health, Safety & Environment Chemistry, Materials & Components Canadian COG Members, SNN in Romania, and KHNP in Korea are participants This investment is leveraged and provides access to approximately $40M of R&D program annually Of the programming being invested in, members typically use approximately 85% of the products

13. 13 of 29 R&D Strategic Direction Develop and implement long term strategies for COG R&D, including capability maintenance Undertake R&D to improve plant performance and life cycle management Complete R&D to close regulatory actions (GAIs) and to address emerging safety issues Contribute to the maintenance of CANDU-specific R&D technical response capability Utilize national and international R&D programs to leverage COG R&D

14. 14 of 29 COG R&D Funding Distribution FY 2012/13 2012/13 Budget 38.5M$ - ~400 projects

15. 15 of 29 COG R&D Value High Investment leverage: 14:1 for SNN High Product Utilization (88% - 10 year average) Proven Track Record on Delivery and Costs Low Program Management Costs (7%) International Collaboration Cost Effective Knowledge Preservation & Capability Maintenance

16. 16 of 29 EPRI – COG Collaboration Good Engagement with EPRI on a number of Collaborative R&D Programs Materials Degradation Matrix (MDM) EPRI has issued the CANDU MDM Next steps (Issues Management Table) in discussion Exploring additional synergy and collaboration on Programs : Specific Programs on Long Term Operation: Buried Piping, Cable Aging, Concrete Aging Specific Programs on Radiation Protection Collaboration in Revising EPRI Alpha Monitoring Guidelines

17. 17 of 29 Introduction to COG COG Research & Development Program Recent R&D Highlights

18. 18 of 29 Performance Highlights - Chemistry, Materials & Components (TC Directed) COG-11-4049 Plant Assessment of Indirect Inspection Techniques for Detection of Coating Defects on Buried Piping Indirect inspection techniques, which are being successfully used in the oil and gas pipeline industry, are facing challenges in nuclear power plants. In this project, selected over the line survey techniques were evaluated in a plant test. This document reports and discusses the findings of the testing performed in AECL Laboratories at Chalk River, providing some valuable insights into the capabilities and limitations of the indirect inspection techniques for plant buried piping integrity management programmes. Schematic Illustration of Close Interval Survey

19. 19 of 29 Fuel Channel Program The Fuel Channel R&D program in place for 30 years. The CSA Standard for Fuel Channel Life Assessment was developed by the R&D program and the focus of the R&D program is to primarily provide technical justification that address issues in the CSA Standard. The Fuel Channel Program supports JPs on: Fuel Channel Life Management Pressure Tube End-of Life Hydrogen Equivalent Fracture Toughness Testing and Assessment Project

20. 20 of 29 Performance Highlights - Fuel Channels Highlights from 2011-2012 from 101 Program Area Radial Hydrides Enhanced crack growth after crack initiation during test Accumulation of hydrides on crack face indicates DHC or hydrogen assisted crack growth

21. 21 of 29 Performance Highlights - Safety and Licensing Confirmatory Critical Heat Flux and Post-Dryout Experiments Using the Modified 37-Element Fuel Simulation in Water experiments were performed to confirm the results of the tests that were originally performed in 2008 using the modified bundle that exhibited improved CHF performance that could be beneficial in increasing safety margins in aging reactors.

22. 22 of 29 Modified 37 Element Fuel Bundle – Background/Heat Distribution Temperature maps from recent tests of Reference (left) and Modified (below) bundles at left demonstrate impact of design change Same boundary conditions Reduced centre element diameter results in: Reduced temperature in the centre of the bundle Reduced maximum temperature More even radial heat distribution

23. 23 of 29 Performance Highlights - Health, Safety & Environment con… WP 30478 – Thermal Effect Benchmarks addresses the need to further refine thermal effect endpoints for fish species at risk to permit accurate risk assessment evaluations by life stage for these species. The objective of the study was to develop updated thermal preferences and tolerances for round and lake whitefish eggs. Earlier studies on developing thermal tolerances for round whitefish are over 30 years old, and were not conducted with ambient lake temperatures. Present studies were conducted in a hatchery specially design for thermal inputs which were computer controlled (see next slide). Egg incubation studies focused on the temperature effects on embryo development for both species. This project has generated considerable positive interest in several government departments, both federal and provincial. A paper on interim results given at the recent American Fish Society conference was well received.

24. 24 of 29 Performance Highlights - Health, Safety & Environment con…

25. 25 of 29 Performance Highlights - Health, Safety & Environment con… Hatched Lake Whitefish (Lake Huron) and hatched Round Whitefish (Lake Ontario)

26. 26 of 29 Performance Highlights - Health, Safety & Environment con… WP 30716 - Investigation of 2-Phase Systems for Application to Hose-Less Plastic Suit was completed successful advances in the development of a dual adsorbent cartridge described in this document brings the hose-less plastic suit another step closer to field use The enhanced mobility, with continuous protection within nuclear containment and during entry and egress of radioactive environments will have a positive impact on reducing radioactive dose to the worker with a strong potential for enhancements in field productivity

27. 27 of 29 Performance Highlights - Health, Safety & Environment con… WP 30716 Dual phase cartridge testing

28. 28 of 29 IST Program Background The Industry Standard Toolset (IST) Program is a consolidation of the qualification, development, maintenance and support activities on different computer codes used for the design, safety analysis and operational support of CANDU reactors. The IST program is currently structured around 18 computer codes Code Group (Discipline Area) Codes Containment & Severe Accident Management GOTHIC, SMART, ADDAM, MAAP-CANDU ThermalhydraulicsASSERT-PV, MODTURC_CLAS, TUF, CATHENA PhysicsRFSP, WIMS, DRAGON, DOORS/ORIGEN, MCNP Fuel & Fuel ChannelsELESTRES, ELOCA, SOPHAEROS, SOURCE, TUBRUPT

29. 29 of 29 CANDU Excellence through Collaboration