1. U.S. Energy Policy Legislation Thelma L. Wiggins Manager, Media Relations Nuclear Energy Institute ENS PIME 2004 Barcelona, Spain Feb. 9, 2004

2. Energy Re-emerges as a Policy Imperative Energy a non-issue for more than 15 years California energy crisis in 2001 August 2003 blackout Natural gas supply/price volatility

3. National Energy Policy Bill Diversified, comprehensive energy policy $31.1 billion price tag Legislation stalled in Senate over cost Nuclear provisions among the least controversial Bi-partisan support and chance for passage Decision expected in March

4. Demonstrated Support of Nuclear Energy President’s State of the Union Address Congressional support during consideration of nuclear energy provisions of the legislation Northeast blackout prompts call for more nuclear Designation of Yucca Mountain repository 77-fold increase in nuclear energy R&D since 1998

5. Used Fuel Management: Continuing Progress Increased funding to meet project needs and maintain schedule –DOE budget request of $907 million for FY05 highest- ever for Yucca Mountain program DOE developing transportation infrastructure DOE to file license application with NRC this December Major industry initiatives under way

6. Incentives for Energy Sectors Wind energy: $3 billion production credit Clean coal: $1.5 billion investment credit Natural gas: $1.5 billion R&D direct spending $1.3 billion pipeline tax credits $2.2 billion other initiatives Electricity reliability: $300 million net direct spending Nuclear energy: $200 million production credit - 1.8 cents/ KWh for first 8 years - advanced design certified by NRC after bill passage - plant must be in service before 2021 - saves consumers up to $6 million annually; $16 billion over the plant’s 60-year lifetime

7. The Business Logic Behind Nuclear Energy Safe, reliable, low-cost electricity Stable cash flow Hedge against volatility in natural gas price and supply Safeguard against escalating environmental requirements Safe and Reliable Forward Price Stability Environmental Value Low Cost

8. Sustained Political Support For Nuclear Energy 2003: Energy legislation provided major stimulus package for nuclear energy –Price-Anderson Act renewal –Financial incentives for new nuclear plants –Favorable tax treatment of decommissioning funds –Nuclear/hydrogen cogeneration project –Favorable regulatory changes –Removal of tariffs on steam generators, reactor vessel heads

9. Validating the Licensing Process for New Reactors Implementing cost-shared programs with the federal government to validate new licensing process and develop competitive designs –Exelon, Dominion, Entergy seeking early site permits –Department of Energy solicited proposals to demonstrate process for obtaining combined construction/operating license

10. Nuclear Power: Clearly Competitive