The%20American%20Nuclear%20Renaissance

1
The American Nuclear Renaissance

• Nuclear Utility Meteorological Data Users Group
• June 2008 Meeting
• Charlotte, NC

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Safe Harbor Statement Under the Private
Securities Litigation Act of 1995

• This document contains forward looking
  information which is subject to risks and
  uncertainties that could cause actual results to
  be different than those contemplated, including,
  but not limited to
• changes in state, federal or international
  regulatory environments
• project costs
• operational performance
• commercial, industrial and residential growth in
  the Companys service territory
• natural phenomena
• the timing and extent of changes in commodity
  prices, interest rates, and foreign currency
  exchange rates
• general economic conditions
• changes in environmental and other laws and
  regulations to which Duke Energy and its
  subsidiaries are subject or other external
  factors over which Duke Energy has no control
• the results of financing efforts
• the effect of accounting pronouncements
• growth in opportunities for Duke Energys
  business units, and other risks described in the
  Companys most recent earnings release filed with
  the Securities and Exchange Commission on Form
  8-K and other Securities and Exchange Commission
  filings.

3
Nuclear Energy in the U.S. On the Rise Again

• Four Certified Designs Three in Review
• Three Early Site Permits One in Review
• Four Combined License Applications Submitted
  Many More to Come

4
Nuclear Energy in the U.S. On the Rise Again

• Four Certified Designs Three in Review
• Three Early Site Permits One in Review
• Four Combined License Applications Submitted
  Many More to Come

Nine

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COL Applications - NuStart-Based Design Centers

• AP1000
• TVA - Bellefonte (2) - Reference Plant
• Duke Lee (2)
• Southern - Vogtle (2)
• Progress - Harris (2)
• SCEG - Summer (2)
• Progress - Levy Cy, FL (2)
• FPL - Turkey Point (2)
• ESBWR
• Dominion - North Anna (1) - Reference Plant (not
  a NuStart member)
• Entergy - Grand Gulf (1)
• Entergy - River Bend (1)
• Exelon Victoria Cy, TX (2)
• Detroit Edison Fermi (1)

? - indicates COL application submitted
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COL Applications - Other Design Centers

• ABWR
• NRG South Texas (2)
• EPR
• Unistar Calvert Cliffs (1)
• Ameren Callaway (1)
• Unistar Nine Mile Point (1)
• PPL Bell Bend (1)
• AEH Bruneau (1)
• Amarillo Amarillo (1)
• APWR
• Luminant Comanche Peak (2)
• Total new applications (including
  unannounced)
• 23 applications for 34 units

Source NRC website
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Early Site Permit

• Applicant designates a site for one or more
  reactors
• NRC review and approval prior to COL application
• Intended to reduce uncertainty by resolving many
  site issues prior to commitment of construction
  resources
• Includes
• Safety analysis for bounding reactor design
• Environmental Report
• Information on emergency management
• Site redress plan
• Valid for as long as 20 years
• Some uncertainty as to finality

8
Design Certification

• Provides for NRC approval of standard plant
  design
• Design can be implemented by utility with
  significantly reduced uncertainty
• Limits variability to
• Small number of standard designs
• Relatively minor site-specific changes
• Limits uncertainty by resolving significant
  number of safety review issues
• Valid for 15 years
• Some uncertainty as to finality

9
Combined License

• Permits licensee to construct and operate a plant
• Subject to Inspections, Tests, Analyses, and
  Acceptance Criteria (ITAAC) and other
  confirmatory processes
• May reference an ESP, a certified design,
  neither, or both
• COL application
• Addresses changes to or exceptions from certified
  design (if used)
• Confirms design fits within ESP plant
  parameters envelope (if used)
• Information that was not provided as part of ESP
  or DC
• ITAAC confirmed by NRC as complete during
  construction
• Reduces uncertainty by
• Resolving siting and design issues (if ESP or DC
  used)
• Reducing significant financial risk by resolving
  construction and operation issues at front end

10
Public Involvement

• 10 CFR Part 52 is streamlines regulatory process,
  but does not limit public participation
• Interactions open to the public, applications are
  publicly docketed
• Hearings and public comments are provided for at
  each step
• Early Site Permit subject to hearing process for
  construction permits
• Design certification
• Issued via rule change
• Rulemaking typically occurs over a year,
  including public comments on proposed rule change
• Legislative hearing may also be held
• Combined license proceeding
• Subject to formal hearing requirements
• Also subject to opportunity for hearing on ITAAC
  compliance
• ESPs, DCs, and COLs also referred to Advisory
  Committee on Reactor Safeguards for review

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Economic Drivers for New Nuclear Option

• Increase in demand
• Need for baseload capacity
• Emissions requirements
• Natural gas price volatility

12
Widening Gap Between Those WhoFavor and Oppose
Nuclear Energy
Source NEI
13
Nuclear energy may just be the energy source
that can save our planet from another possible
disaster Nuclear energy is the only large-scale,
cost-effective energy source that can reduce
CO2 emissions while continuing to satisfy a
growing demand for power. And these days it can
do so safely.
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Nuclear energy may just be the energy source
that can save our planet from another possible
disaster Nuclear energy is the only large-scale,
cost-effective energy source that can reduce
CO2 emissions while continuing to satisfy a
growing demand for power. And these days it can
do so safely.
Dr. Patrick Moore, leading ecologist and
environmentalist, founder of Greenpeace, Chair
and Chief Scientist of Greenspirit, co-chair,
Clean and Safe Energy Coalition Going Nuclear
A Green Makes the Case The Washington Post April
16, 2006
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The only technology ready to fill the gap and
stop the carbon dioxide loading of the atmosphere
is nuclear power. It also has advantages
besides the overwhelming one of being
atmospherically clean. The industry is mature,
with a half-century of experience and ever
improved engineering behind it. Nuclear power
plants are very high yield, with low-cost fuel.
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The only technology ready to fill the gap and
stop the carbon dioxide loading of the atmosphere
is nuclear power. It also has advantages
besides the overwhelming one of being
atmospherically clean. The industry is mature,
with a half-century of experience and ever
improved engineering behind it. Nuclear power
plants are very high yield, with low-cost fuel.

• Stewart Brand, noted environmentalist and
  founder, publisher, and editor of The Whole Earth
  Catalog
• Environmental Heresies
• Technology Review (Massachusetts Institute of
  Technology)
• May 2005

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Only one immediately available source does not
cause global warming, and that is nuclear energy.
Nuclear energy from its start in 1952 has proved
to be the safest of all energy sources.
18
Only one immediately available source does not
cause global warming, and that is nuclear energy.
Nuclear energy from its start in 1952 has proved
to be the safest of all energy sources.

• James Lovelock, leading environmentalist,
  creator of the Gaia theory
• Nuclear Power Is the Only Green Solution
• The Independent (U.K.)
• May 24, 2004

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Rhode Island
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William States Lee III Nuclear Station
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Duke Energy Nuclear
Davie County (possible future ESP)
Davie County (ESP)
Davie County (ESP)
McGuire Nuclear
McGuire Nuclear
McGuire Nuclear
Station
Station
Station
Oconee
Oconee
Oconee
Nuclear
Nuclear
Nuclear
Station
Station
Station
Catawba Nuclear
Catawba Nuclear
Catawba Nuclear
Oconee County (possible future ESP)
Station
Station
Station
Lee Nuclear
Lee Nuclear
Lee Nuclear
(COL)
(COL)
(COL)
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Lee Nuclear Site

• Historical
• Cherokee Site initial development as part of
  P-81 project initiated in early 1970s
• NRC EIS (NUREG-75/089) and Construction Permit
  issued in 1975
• Unit 1 partially constructed Unit 2 largely
  excavated Unit 3 partially excavated
• Duke Power cancelled Cherokee Project 1983
• Sold property to private party
• Site Partially Developed including
• Nuclear Service Water Pond
• Cooling Water Sedimentation Basin
• Excavation of Power Block
• Partial Construction of Unit 1 Containment

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Lee Nuclear Site

• Duke announced in 2005-2006
• Intent to pursue COL for new plant
• Reactor technology selection (AP1000)
• Site Selection (reacquired former Cherokee site)
• Construction plans for two units
• No decision to construct has been made
• Site characterization commenced 2005
• Demolition of previous facilities underway
• Base slab of Cherokee Unit 1 legacy structures to
  remain in-place as fill concrete

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Previous Warehouse
Broad River
Previous Nuclear Service Water Pond
Previous 3-Unit Excavation
Sedimentation Pond
The Once and Future Cherokee Site
29
Warehouse
Broad River
2-Unit Excavation
Makeup Pond B
Makeup Pond A
Lee
The Once and Future Cherokee Site
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Adaptation of WS Lee AP1000s to Former Cherokee
Site
WLS Unit 2
WLS Unit 1
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Lee Nuclear Site As-Found Condition
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Site Cleanup
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Dewatering Site Characterization
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Environmental Sampling
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Remediation
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Project Schedule

• Project Initiation Early 2005
• COLA Submittal 12/13/2007
• Acceptance Review End 02/25/2008
• Issuance of NRC Schedule 03/31/2008
• COL Issuance 2011-2012
• Commercial Operations 2016-2018

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NuStart Energy

• Consortium partnering to keep nuclear generation
  part of national energy strategy
• Deliverable 2 Combined Construction and
  Operating Licenses (COLs)
• Westinghouse AP1000 at Bellefonte (Scottsboro,
  AL)
• GE ESBWR at Grand Gulf (Port Gibson, MS)
• Complete design certification of AP1000 and ESBWR
• Reduce cost uncertainty
• Finalize AP1000 and ESBWR designs
• Establish competitive pricing and contractual
  terms
• Quantify going forward OM costs
• Validate construction costs and schedule
  assumptions

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AP1000 Design-Centered Work Group
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Key Issues

• NRC acceptance issues
• NRC review capabilities
• Technical issues
• Programmatic issues
• Standardization

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Challenges and Opportunities

• Design-centered approach to COL application
  development
• Incorporation by reference and DCD finality
• ITAAC closeout
• 10 CFR 52 rule change
• SRP revision (NUREG-0800)
• COL Application Guidance (RG-1.206)
• Infrastructure
• Supply chain
• Human capital
• Cost, schedule, short-term impact on shareholders

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