1. A NUCLEAR RENAISSANCE Ping Wan The Tenth Nuclear Utility Meteorological Data Users Group Meeting June 2005

2. 2 Concerns in Development of Nuclear Power  High front-end project development and plant capital costs  Perceived adverse safety, environmental and health effects – lack of public acceptance and stake-holder support  Potential security risks stemming from proliferation and potential terrorist attack  Long-term management of nuclear wastes  Securing financing for project to be built in developing country

3. 3 Recent Nuclear Power Industry Movement  Nuclear Technology Advances Capable of: –Enhanced safety features : passive safety features –Reducing severe accident possibility : multiple safety systems, backup, designed to accommodate human error –Producing less radioactive waste releases  Promotion in Innovative and Proliferation-resistant Nuclear Technologies  Strengthening Nuclear Safety Worldwide : building a global nuclear safety culture through international collaboration  Nuclear Regulatory Reform in the United States

4. 4 U.S. Nuclear Energy  Quick facts - 103 nuclear plants - 20% of the nation’s electricity - 90.7% capacity factor - No new contracts since 1975 - No new plants since 1995 - >23,000 MWe of new capacity since 1990

5. 5 U.S. Nuclear Drivers  Safe  Proven nuclear plant performance  Affordable  Energy security/energy independence  Emission free  Energy demand

6. 6 U.S. Energy Demand 19801990197020152025 Commercial Use Residential Use Source: U.S. Department of Energy 3,839B kWh 2003 Industrial Use 5,787B kWh 2005 50 Percent More Electricity Needed by 2025

7. 7 Formula for New Plant Deployment  Energy Policy  Proven Technology  Financials  Regulatory Certainty  Spent Fuel Management  Infrastructure  Public and Bipartisan Support

8. 8 U.S./DOE - Nuclear Power 2010  Call for building new nuclear power plants by 2010.  Support engineering of advanced designs.  Validate regulatory process.  Develop concepts to mitigate financing risks.  Cost share industry/government.

9. 9 Proven Technology  Approved -ABWR -AP 600 -AP 1000 -System 80+  Certification Process -ESBWR -ACR 1000 -EPR (in near future)

10. 10 New Nuclear Reactor Designs PBMR Pty. Ltd. Pebble Bed Modular Reactor Innovative fuel design Gas cooled On-line refueling ~120 MWe per module General Atomic GT-MHR Gas cooled Underground construction Integral turbine-generator and compressor ~286 MWe per module Westinghouse IRIS Single integral pressure vessel Accident scenarios engineered out of design Passive safety systems ~335 MWe per unit General Electric ABWR NRC-certified design Two units operating in Japan; two under construction in Taiwan Improved safety systems ~1350 MWe per unit Westinghouse AP600/1000 AP600 design is NRC certified AP1000 (1117 MWe) under NRC review Passive safety systems, simplified design, modular construction

11. 11 Economic Competitiveness of Nuclear Power  Energy Efficiency  Plant Reliability  Global Warming Potential  Air Pollutant Emissions  Acid Runoff  Deforestation  Energy security Extremely efficiency Compare well with others No greenhouse gases Insignificant None Increased fuel diversification

12. 12 Financial Certainty New Nuclear Power Plant Cost Comparison to Coal and Gas (capital and O/M cost) Note: Under a greenhouse gas reduction policy, the capital cost of new fossil- fuel plants would increase significantly, according to the University of Chicago study. Coal-fired plants would cost $83 to $91 per megawatt- hour (MWh) and gas-fired plants would cost $58 to $68 per MWh. $47–$71 per MWh No policy assistance $31–$46 per MWh Engineering costs (3 plants); no policy assistance $25–$45 per MWh Limited production and investment tax credit for nuclear Source: University of Chicago study; MWh=megawatt-hour $33–$41 per MWh $35–$45 per MWh Nuclear Coal Gas

13. 13 Spent Fuel Management  Near-term Solutions - Yucca Mountain  Long-term solutions - Nonproliferation fuel - Generation IV technology

14. 14 U.S. Regulatory Reform  Provide Regulatory Certainty -Early Site Approval -Design Certification -Combined License for Construction and Operation (COL)

15. 15 Part 50 & 52 Licensing Process Comparison

16. 16 Part 52 Licensing Process Early Site Permit Application Staff Review ACRS Review Mandatory Hearing Early Site Permit Decision Equivalent Environmental Information OR Application for Design Certification Staff Review ACRS Review Certification Rulemaking/ Hearing Decision on Design Certification Equivalent Design Information OR Application for Combined License (COL) Staff Review ACRS Review Mandatory Hearing Decision on COL Construction and ITAAC Completion Finding on ITAAC Design Siting COL

17. 17 Economic Benefits  Part 52 improvements in economic risk issues of nuclear power: –Allows reduced siting risk by Early Site Permitting –Allows siting to proceed without commitment to a single design –Allows reduced licensing risk by use of a certified design –Allows design certainty at the time of construction –Provides for “step-wise” financial commitment

18. 18 Hypothetical Deployment Schedule and Financial Commitment for New Nuclear Generation 12356789101112 ESP COL 100% 0% 4 ~ ~ ~ ~ Start Application Submit Application SER Issued EIS Issued LWA-1 ESP Issued Year Start Application Submit Application SER Issued LWA-2 Issued COL Issued Site Engineering FOAK Engineering Procurement Planning Site Specific Engineering COL Preparation COL Review HearingsESP PrepareESP Review Hearings Site Preparation First Safety-Related Concrete Construction ITAAC Fuel Load In Service Plant Deployment Cumulative COL Engineering ESP 6665-4/04-1 Expenditures Plant Deployment Engineering

19. 19 Demonstrating the Process Government and Industry NuStart ( Testing the Process) COLCOL ESPESP  Energy Bill  NP-2010 Certification (Cost Studies)

20. 20 Evidence of U.S. Nuclear Revival  New Nuclear Capacity Equivalent to 23 new 1,000 MW power plants (uprates, capacity factors and 3 new plants)  License Renewals - Granted : 32 - In NRC Review : 16 - Renewal Intent : 25 - Not Announced : 31  Browns Ferry #1 (1,289 MWe) restart

21. 21 Conclusions  Cost, Safety and Environmental concerns can be alleviated, in part, through technological advances.  A stable and predictable licensing process is in place.  The United States is demonstrating we are in “a Nuclear Renaissance”  Both Government and industry can work together to rebuild its nuclear future.