AEIC Presentation October 19 - PowerPoint PPT Presentation


Title: AEIC Presentation October 19


1
The Resurgence of Nuclear PowerBriefing to the
Nuclear Science and Engineering Department at
Massachusetts Institute of Technology
Admiral Frank L. (Skip) BowmanUSN
(Retired)President and CEONuclear Energy
InstituteDecember 3, 2007
2
Todays Briefing
  • Nuclear Power
  • Today and Tomorrow
  • Opportunities
  • Challenges Yes we need more nuclear, but
  • what about safety?
  • what about used fuel?
  • what about proliferation?
  • what about the infrastructure?
  • what about the cost?

3
NuclearPower Today and Tomorrow
4
Sources of U.S. Electricity
(2006)
20.0 Natural Gas Low construction cost Volatile
fuel cost Combined cycle capacity factor
39.9 Steam plant capacity factor
17.2 Emissions NOx, CO2
1.6 Oil Volatile fuel cost Capacity factor
14.9 Emissions SO2, NOx, CO2
19.4 Nuclear High construction cost Stable
fuel cost Capacity factor 89.6 Emissions None
7.0 Hydro Large-scale opportunities gone No fuel
cost Capacity factor 31.8 Emissions None
49 Coal High construction cost Capacity factor
71.1 Emissions SO2, NOx, CO2, particulates,
mercury, toxic metals
3.1 Renewables (and Other) Very high
construction cost No fuel cost Capacity factor
26.8 Emissions None
Source Global Energy Decisions / Energy
Information Administration
5
Nuclear Power in the United States Today
  • 104 operating commercial reactors (102 operating
    naval reactors)
  • Stable and affordable production costs
  • 1.7 cents/KWh
  • 90 average capacity factor
  • 20 of US electricity supply with 12 of the
    installed capacity
  • Used fuel safely stored on 64 sites
  • Zero emissions during electricity production
  • Valuable business assets
  • Safe and secure operations
  • No proliferation risk from commercial nuclear
    fuel

6
Whats Driving the Interest in New Nuclear?
  • Growing need for baseload generation
  • Near-term need for new generating capacity
    (e.g., Northeast, mid-Atlantic, Southeast,
    South, Texas)
  • Increasing environmental concerns and potential
    controls on carbon emissions
  • Chronic volatility in natural gas prices
  • Nuclear power safety record

7
Nuclear Power in the United States Tomorrow
  • Evolutionary advances of light water reactors in
    use today
  • Westinghouse AP 1000
  • General Electric - Hitachi ESBWR
  • General Electric ABWR
  • Areva EPR
  • Mitsubishi US APWR
  • 17 companies (or groups), 31 reactors
  • 3 COLs for 5 reactors submitted to the NRC, 1 or
    2 more COLs expected in 2007

8
Opportunities
9
Policymakers Support Nuclear Power
  • Growing appetite for clean, safe, affordable
    energy
  • Governors and other state and county officials
    express desire for new plants in their districts
  • Energy Policy Act of 2005 bipartisan support for
    new nuclear plant construction
  • Grassroots support CASEnergy clean and safe
    energy

10
National Leadership Leaning Toward Nuclear Energy
  • We also need to take advantage of clean safe
    nuclear power. Nuclear power is the one existing
    source of energy that can generate massive
    amounts of electricity without causing any air
    pollution or greenhouse gas emissions.
  • President Bush
  • September 28, 2007
  • Nuclear power is almost the only answer for
    clean electricity to meet our growing needs. When
    I look at all the options, I think nuclear is the
    leading technology.
  • Sen. Lamar Alexander (R-TN)
  • January 28,2007

11
Strong Public Support Near Existing Plants
81 Utility protecting environment
82 Favor nuclear energy
86 Favorable impression of nearest plant
71 Willing to see new reactor built near them
86 Give nuclear high safety rating
Source Bisconti Research Inc. August 2007 poll
of 1,152 U.S. adults margin of error is /- 3
12
Challenges
13
Yes, We Need Nuclear Energy, But
  • The vast majority of the members on my
    committee support nuclear power, and so do the
    majority in the Senate. I dont think there is
    any question that we are going to be seeing new
    plants.
  • Sen. Barbara Boxer (D-CA)
  • Chair, Environment and Public Works Committee
  • December 17, 2006
  • The technology has changed, and I bring a more
    open mind to that subject now because I think we
    should look at this technology, and compare it to
    the alternatives.It has to be on the table.
  • House Speaker Nancy Pelosi (D-CA)
  • February 8, 2006
  • Nuclear power faces some difficult problems
    theres the waste problem the cost problem
    there are continuing safety issues
  • Sen. Hillary Clinton (D-NY)
  • November 10, 2007

14
Yes, But What About Nuclear Safety?
Nuclear critics say Inherently dangerous
technology no independent oversight no way of
knowing whether nuclear plants are safe.
15
Nuclear Safety
  • Safety is our highest priority
  • Operating practices and process
  • Government/industry oversight
  • Outstanding safety performance shown by safety
    related metrics
  • Unplanned shutdowns are at near-record lows
  • Lost-time accident rates at record low levels
  • Forced plant outage rates and unplanned
  • safety system actuations all are down

16
Defense in Depth Safety Approach
  • Dedicated, talented, and professional workforce
    receives comprehensive integrated training and
    education and is fully qualified within rigorous
    standards
  • Plant design includes redundant, reliable safety
    systems
  • Strict knowledgeable procedural compliance
  • Industry-wide database to catalog plant operating
    experience so that the entire industry can learn
    from each plants operations
  • Multiple barriers to accidental radiation release

17
Nuclear Safety Process
  • Nuclear Regulatory Commission
  • Resident and regional inspectors
  • Baseline inspectionsat least 2500 man-hours per
    year
  • Key Performance Indicators
  • Routine resident inspector walk-arounds
  • GAO gave positive assessments of the NRC reactor
    oversight process
  • Institute of Nuclear Power Operations
  • On-site inspections once every two years, lasting
    two weeks
  • INPO team and industry peers inspect
  • Exit interviews conducted by INPO
  • Formal out brief with CEO, CNO, Site VP and
    General Manager
  • INPO CEO discusses evaluation score with utility
    CEO

18
Yes, But What About Used Fuel?
Nuclear critics say Used fuel is a threat to
public safety and to the environment Nuclear
plants have been operating for decades so there
must be lots of used fuel piling up Neither the
industry nor the government know what to do with
used fuel Theres no plan
19
Simple Facts About Used Nuclear Fuel
  • Uranium is a highly concentrated source of
    energy
  • After 50 years of nuclear plant operation, only
    small volume of used nuclear fuel
  • Would cover one football field 7 yards deep
  • Solid, ceramic material Easy to manage, store,
    monitor and secure
  • In 50 years of commercial operation, zero impact
    on public health or the environment

20
Deep Repository Plan
  • Once through fuel cycle
  • Technically sound, secure and safe
  • Most countries with used nuclear fuel use this
    plan (some with partial reprocessing)

21
Straight Talk About the Yucca Mountain Project
  • International scientific consensus (including
    U.S. National Academy of Sciences) Optimum
    approach is underground disposal in stable
    geologic formations
  • 9-billion of independent research by Americas
    top scientists has demonstrated Yucca Mountain is
    suitable site for nuclear waste disposal
  • Before construction and operation, Yucca Mountain
    project must be licensed by the Nuclear
    Regulatory Commission

22
Three-Part Integrated Plan for Used Nuclear Fuel
  • Consolidated interim storage at centralized sites
  • Conduct research and technology development to
    demonstrate techniques to recycle used nuclear
    fuel
  • Extract additional energy from used nuclear
    fuel
  • Reduce volume and radiotoxicity of waste
    by-products requiring permanent disposal
  • Consolidate used nuclear fuel at future
    recycling centers
  • Build and operate permanent disposal facility for
    waste by-products
  • Repository monitored for 100-300 years to
    ensure safety

23
Yes, But What About Nuclear Proliferation?
Nuclear critics say We cant have developing
nations have access to nuclear power its like
giving them nuclear weapons
24
Preventing the Proliferation of Nuclear Weapons
The commercial use of nuclear technology is vital
for generating clean electricity, diagnosing
diseases and treating cancer, sterilizing medical
equipment, irradiating food products, and
hundreds of other purposes.
  • Global mission that requires the transparent
    participation and cooperation of all nations
  • Material accountability, physical security and
    monitoring is the basis of international
    nonproliferation policy
  • IAEA safeguards program verifies a country is
    living up to the agreement not to use commercial
    nuclear programs for nuclear weapons purposes

25
Misuse of Uranium Enrichment or Recycling
Facilities
  • Uranium used in nuclear power plants CANNOT be
    used to make a nuclear weapon
  • Uranium enrichment or reprocessing used fuel can
    yield sufficient material for nuclear weapons,
    however
  • International protocols ensure facilities are
    not used as covers to disguise production of
    highly enriched uranium
  • Reprocessing can be conducted in a way that
    does not result in a pure plutonium byproduct
  • The IAEA monitors and inspects fuel cycle
    facilities

26
Ensuring Non-Proliferation Today
  • Nations and companies that already have
    enrichment and reprocessing capabilities can
    provide an assured supply of fuel to other
    nations seeking to develop commercial nuclear
    technology
  • Additional expensive and exploitable uranium
    enrichment and reprocessing facilities would not
    have to be built
  • U.S. nuclear plants already make a significant
    contribution to nonproliferation
  • Megatons to Megawatts program is a 20-year, 8
    billion government/industry partnership
  • Since 1993 uranium from the equivalent of 11,000
    Russian warheads has been used to produce
    electricity
  • Fuel is used to produce 10 of all of the
    electricity in the United States

27
Yes, But What About the Infrastructure?
Nuclear critics say We stopped building nuclear
power plants 30 years ago there are no U.S.
manufacturers to supply materials and no skilled
workforce to build the new plants
28
Infrastructure Workforce
  • Resurgence of interest in nuclear careers most
    notably evidenced by the rapidly increasing
    enrollments in nuclear engineering programs
  • Undergraduate enrollments grew from just 470 in
    1998 to 1,933 in 2007
  • Graduate enrollments also climbed from 220 in
    1998 to 1,153 in 2007
  • America Competes Act creates the framework for
    addressing challenges in the Science, Technology,
    Engineering and Math workforce
  • Each new plant that is built will require between
    1,400 and 1,800 workers for construction and
    between 400 and 700 workers for operation these
    are great jobs!
  • Repatriating jobs in the manufacturing sector

29
Infrastructure Manufacturing
  • 17 companies or consortia have announced that
    they are developing combined license applications
    for up to 31 new nuclear reactors
  • Major investments are underway in long-lead
    procurement items and should force expansion of
    U.S. manufacturing capability
  • More vendors and manufacturers are expressing
    interest in entering the commercial nuclear
    industry and some have taken the next step and
    applied for and/or received their N-stamp
  • Recently Babcock Wilcox and Peter Kiewit
    renewed their nuclear accreditation

30
Yes, But What Aboutthe Cost of Nuclear Power?
Nuclear critics say, Nuclear power costs too
much Nuclear power can only survive because
its heavily subsidized New nuclear power
plants are too costly and cannot compete
31
Fast Facts About Nuclear Power Economics
  • 104 operating nuclear power plants are
    lowest-cost source of baseload (24-by-7)
    electricity
  • Stable fuel costs
  • Higher (90 average) availability than any
    other source of electricity
  • Nuclear power plants are immune to
  • Volatility in fossil fuel prices
  • Increasingly stringent controls on air
    pollutants and carbon dioxide emissions
  • New nuclear power plants will be competitive with
    other sources of clean electricity
  • All energy sources are subsidized (because energy
    supply is a public good)
  • Nuclear energy is not the most heavily
    subsidized

32
Operating Nuclear Plants
Average nuclear plant production costs have
declined more than 30 percent over past 10 years
U.S. Electricity Production Costs 1995-2006
cents per kwh (2006)
Production Costs Operations and Maintenance
Costs Fuel Costs Source Global Energy Decisions
33
New Nuclear Power PlantsCompetitive with Other
Sources
  • All baseload technologies have high capital cost
  • Capital cost less important than lifetime
    operating cost
  • Total nuclear operating cost comparable to
    advanced coal- based plants and better than
    gas-fired plants
  • Renewables do not compete with nuclear
  • Nuclear Baseload 24-by-7 (90 availability)
  • Wind Intermittent (30 availability)
  • New nuclear benefits justify use of investment
    support
  • Federal government Support for debt financing
    through loan guarantees
  • State governments Assurance of investment
    recovery through rates

A portfolio of fuels, technologies is essential
to meet U.S. energy security, environmental goals
34
All Energy Sources Are Subsidized
  • Since energy crises of the 1970s, federal
    government spending on RD (1976-2006)
  • Nuclear 4.2 billion
  • Coal 5.9 billion
  • Renewables 7.3 billion
  • Federal expenditures on energy (RD, tax
    benefits, etc.) since 1950
  • Oil and natural gas 435.9 billion
  • Coal 93.4 billion
  • Hydro 80.5 billion
  • Nuclear 64.7 billion
  • Renewables 43.9 billion
  • Geothermal 6.4 billion

Management Information Services, Inc., Federal
Expenditures on Energy 1950-2006, November 2007
35
Energy Policy Act of 2005Investment Stimulus
for New Plants
  • Federal loan guarantee
  • Not nuclear-specific All clean energy sources
    qualify
  • Reduces cost of capital and cost of electricity
  • Federal delay insurance
  • 2 billion of coverage for first six new nuclear
    plants
  • Covers delays beyond the private sectors control
  • Production tax credit
  • Provides emission-free nuclear power with similar
    tax treatment as renewables
  • Price-Anderson Act renewal
  • Over 10 billion industry-funded accident
    insurance protecting the public

36
Subsidy or No Subsidy?Sub-si-dy (subsi dé). n.,
a direct financial aid furnished by a government
to a private commercial enterprise
Incentive in Energy Policy Act How the Program Operates Subsidy or No Subsidy?
Loan Guarantee Program is self-financing Private sector pays cost to federal government of issuing loan guarantee, plus all administrative fees No subsidy
Delay Insurance Program operates like commercial insurance Private sector pays Department of Energy a premium to receive coverage No subsidy
Production Tax Credit Unlike production tax credit for renewables, nuclear tax credit is limited to 6,000 megawatts of capacity, is not indexed for inflation Limited subsidy
Price-Anderson Insurance Federal government has never paid a claim under Price-Anderson. Insurance program is financed by nuclear industry. No subsidy
37
Return on Investment The True Measure of a
Subsidy
  • 2005 Energy Policy Act provides 6 billion of tax
    credits to new nuclear plants Is it worth it?
  • Benefit of a typical nuclear power plant over its
    40-year operating lifetime 27.5 billion to 32
    billion
  • Local, state and federal taxes
  • Salaries to personnel who operate the plant and
    indirect employment that results
  • Value of the electricity produced by the plant
  • 6 billion investment by the taxpayer produces
    165 billion to 192 billion in value

38
Subsidies A Rational Perspective
It is the interest of the society to submit
to a temporary expense, which is more than
compensated by an increase of industry and
wealth, by an augmentation of resources and
independence, and by the circumstance of eventual
cheapness Alexander Hamilton, Report on
Manufactures, December 1791
  • Subsidies are an essential part of American life
  • (subsidy is not a pejorative)
  • Subsidies encourage production of goods and
    services that serve the public interest and
    general welfare
  • For example, federal government manages a 1.1
    trillion loan guarantee portfolio
  • Loan guarantees widely used to ensure development
    of critical infrastructure

39
Conclusions
40
Whats in Our Future? "The future ain't what it
used to be." Yogi Berra
  • Solid base of political and public support
  • Nuclear is recognized as essential part of U.S.
    electricity supply
  • Industry must address challenges/preconceived
    ideas
  • 15 to 20 COLs by the end of 2008
  • 6 to 8 plants start construction 2010 - 2011
  • 4 to 6 more start construction 2012 - 2015
  • 10 to 14 plants on line by 2020

41
An Energy Policy forAn Energy Secure Nation
  • Implement energy efficiency and conservation in
    all phases of electricity generation and use
  • Employ renewable energy sources to the full
    extent possible
  • Rely on proven, large-scale, emission-free energy
    sources for baseload generation

42
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AEIC Presentation October 19

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Title: AEIC Presentation October 19


1
The Resurgence of Nuclear PowerBriefing to the
Nuclear Science and Engineering Department at
Massachusetts Institute of Technology
Admiral Frank L. (Skip) BowmanUSN
(Retired)President and CEONuclear Energy
InstituteDecember 3, 2007
2
Todays Briefing
  • Nuclear Power
  • Today and Tomorrow
  • Opportunities
  • Challenges Yes we need more nuclear, but
  • what about safety?
  • what about used fuel?
  • what about proliferation?
  • what about the infrastructure?
  • what about the cost?

3
NuclearPower Today and Tomorrow
4
Sources of U.S. Electricity
(2006)
20.0 Natural Gas Low construction cost Volatile
fuel cost Combined cycle capacity factor
39.9 Steam plant capacity factor
17.2 Emissions NOx, CO2
1.6 Oil Volatile fuel cost Capacity factor
14.9 Emissions SO2, NOx, CO2
19.4 Nuclear High construction cost Stable
fuel cost Capacity factor 89.6 Emissions None
7.0 Hydro Large-scale opportunities gone No fuel
cost Capacity factor 31.8 Emissions None
49 Coal High construction cost Capacity factor
71.1 Emissions SO2, NOx, CO2, particulates,
mercury, toxic metals
3.1 Renewables (and Other) Very high
construction cost No fuel cost Capacity factor
26.8 Emissions None
Source Global Energy Decisions / Energy
Information Administration
5
Nuclear Power in the United States Today
  • 104 operating commercial reactors (102 operating
    naval reactors)
  • Stable and affordable production costs
  • 1.7 cents/KWh
  • 90 average capacity factor
  • 20 of US electricity supply with 12 of the
    installed capacity
  • Used fuel safely stored on 64 sites
  • Zero emissions during electricity production
  • Valuable business assets
  • Safe and secure operations
  • No proliferation risk from commercial nuclear
    fuel

6
Whats Driving the Interest in New Nuclear?
  • Growing need for baseload generation
  • Near-term need for new generating capacity
    (e.g., Northeast, mid-Atlantic, Southeast,
    South, Texas)
  • Increasing environmental concerns and potential
    controls on carbon emissions
  • Chronic volatility in natural gas prices
  • Nuclear power safety record

7
Nuclear Power in the United States Tomorrow
  • Evolutionary advances of light water reactors in
    use today
  • Westinghouse AP 1000
  • General Electric - Hitachi ESBWR
  • General Electric ABWR
  • Areva EPR
  • Mitsubishi US APWR
  • 17 companies (or groups), 31 reactors
  • 3 COLs for 5 reactors submitted to the NRC, 1 or
    2 more COLs expected in 2007

8
Opportunities
9
Policymakers Support Nuclear Power
  • Growing appetite for clean, safe, affordable
    energy
  • Governors and other state and county officials
    express desire for new plants in their districts
  • Energy Policy Act of 2005 bipartisan support for
    new nuclear plant construction
  • Grassroots support CASEnergy clean and safe
    energy

10
National Leadership Leaning Toward Nuclear Energy
  • We also need to take advantage of clean safe
    nuclear power. Nuclear power is the one existing
    source of energy that can generate massive
    amounts of electricity without causing any air
    pollution or greenhouse gas emissions.
  • President Bush
  • September 28, 2007
  • Nuclear power is almost the only answer for
    clean electricity to meet our growing needs. When
    I look at all the options, I think nuclear is the
    leading technology.
  • Sen. Lamar Alexander (R-TN)
  • January 28,2007

11
Strong Public Support Near Existing Plants
81 Utility protecting environment
82 Favor nuclear energy
86 Favorable impression of nearest plant
71 Willing to see new reactor built near them
86 Give nuclear high safety rating
Source Bisconti Research Inc. August 2007 poll
of 1,152 U.S. adults margin of error is /- 3
12
Challenges
13
Yes, We Need Nuclear Energy, But
  • The vast majority of the members on my
    committee support nuclear power, and so do the
    majority in the Senate. I dont think there is
    any question that we are going to be seeing new
    plants.
  • Sen. Barbara Boxer (D-CA)
  • Chair, Environment and Public Works Committee
  • December 17, 2006
  • The technology has changed, and I bring a more
    open mind to that subject now because I think we
    should look at this technology, and compare it to
    the alternatives.It has to be on the table.
  • House Speaker Nancy Pelosi (D-CA)
  • February 8, 2006
  • Nuclear power faces some difficult problems
    theres the waste problem the cost problem
    there are continuing safety issues
  • Sen. Hillary Clinton (D-NY)
  • November 10, 2007

14
Yes, But What About Nuclear Safety?
Nuclear critics say Inherently dangerous
technology no independent oversight no way of
knowing whether nuclear plants are safe.
15
Nuclear Safety
  • Safety is our highest priority
  • Operating practices and process
  • Government/industry oversight
  • Outstanding safety performance shown by safety
    related metrics
  • Unplanned shutdowns are at near-record lows
  • Lost-time accident rates at record low levels
  • Forced plant outage rates and unplanned
  • safety system actuations all are down

16
Defense in Depth Safety Approach
  • Dedicated, talented, and professional workforce
    receives comprehensive integrated training and
    education and is fully qualified within rigorous
    standards
  • Plant design includes redundant, reliable safety
    systems
  • Strict knowledgeable procedural compliance
  • Industry-wide database to catalog plant operating
    experience so that the entire industry can learn
    from each plants operations
  • Multiple barriers to accidental radiation release

17
Nuclear Safety Process
  • Nuclear Regulatory Commission
  • Resident and regional inspectors
  • Baseline inspectionsat least 2500 man-hours per
    year
  • Key Performance Indicators
  • Routine resident inspector walk-arounds
  • GAO gave positive assessments of the NRC reactor
    oversight process
  • Institute of Nuclear Power Operations
  • On-site inspections once every two years, lasting
    two weeks
  • INPO team and industry peers inspect
  • Exit interviews conducted by INPO
  • Formal out brief with CEO, CNO, Site VP and
    General Manager
  • INPO CEO discusses evaluation score with utility
    CEO

18
Yes, But What About Used Fuel?
Nuclear critics say Used fuel is a threat to
public safety and to the environment Nuclear
plants have been operating for decades so there
must be lots of used fuel piling up Neither the
industry nor the government know what to do with
used fuel Theres no plan
19
Simple Facts About Used Nuclear Fuel
  • Uranium is a highly concentrated source of
    energy
  • After 50 years of nuclear plant operation, only
    small volume of used nuclear fuel
  • Would cover one football field 7 yards deep
  • Solid, ceramic material Easy to manage, store,
    monitor and secure
  • In 50 years of commercial operation, zero impact
    on public health or the environment

20
Deep Repository Plan
  • Once through fuel cycle
  • Technically sound, secure and safe
  • Most countries with used nuclear fuel use this
    plan (some with partial reprocessing)

21
Straight Talk About the Yucca Mountain Project
  • International scientific consensus (including
    U.S. National Academy of Sciences) Optimum
    approach is underground disposal in stable
    geologic formations
  • 9-billion of independent research by Americas
    top scientists has demonstrated Yucca Mountain is
    suitable site for nuclear waste disposal
  • Before construction and operation, Yucca Mountain
    project must be licensed by the Nuclear
    Regulatory Commission

22
Three-Part Integrated Plan for Used Nuclear Fuel
  • Consolidated interim storage at centralized sites
  • Conduct research and technology development to
    demonstrate techniques to recycle used nuclear
    fuel
  • Extract additional energy from used nuclear
    fuel
  • Reduce volume and radiotoxicity of waste
    by-products requiring permanent disposal
  • Consolidate used nuclear fuel at future
    recycling centers
  • Build and operate permanent disposal facility for
    waste by-products
  • Repository monitored for 100-300 years to
    ensure safety

23
Yes, But What About Nuclear Proliferation?
Nuclear critics say We cant have developing
nations have access to nuclear power its like
giving them nuclear weapons
24
Preventing the Proliferation of Nuclear Weapons
The commercial use of nuclear technology is vital
for generating clean electricity, diagnosing
diseases and treating cancer, sterilizing medical
equipment, irradiating food products, and
hundreds of other purposes.
  • Global mission that requires the transparent
    participation and cooperation of all nations
  • Material accountability, physical security and
    monitoring is the basis of international
    nonproliferation policy
  • IAEA safeguards program verifies a country is
    living up to the agreement not to use commercial
    nuclear programs for nuclear weapons purposes

25
Misuse of Uranium Enrichment or Recycling
Facilities
  • Uranium used in nuclear power plants CANNOT be
    used to make a nuclear weapon
  • Uranium enrichment or reprocessing used fuel can
    yield sufficient material for nuclear weapons,
    however
  • International protocols ensure facilities are
    not used as covers to disguise production of
    highly enriched uranium
  • Reprocessing can be conducted in a way that
    does not result in a pure plutonium byproduct
  • The IAEA monitors and inspects fuel cycle
    facilities

26
Ensuring Non-Proliferation Today
  • Nations and companies that already have
    enrichment and reprocessing capabilities can
    provide an assured supply of fuel to other
    nations seeking to develop commercial nuclear
    technology
  • Additional expensive and exploitable uranium
    enrichment and reprocessing facilities would not
    have to be built
  • U.S. nuclear plants already make a significant
    contribution to nonproliferation
  • Megatons to Megawatts program is a 20-year, 8
    billion government/industry partnership
  • Since 1993 uranium from the equivalent of 11,000
    Russian warheads has been used to produce
    electricity
  • Fuel is used to produce 10 of all of the
    electricity in the United States

27
Yes, But What About the Infrastructure?
Nuclear critics say We stopped building nuclear
power plants 30 years ago there are no U.S.
manufacturers to supply materials and no skilled
workforce to build the new plants
28
Infrastructure Workforce
  • Resurgence of interest in nuclear careers most
    notably evidenced by the rapidly increasing
    enrollments in nuclear engineering programs
  • Undergraduate enrollments grew from just 470 in
    1998 to 1,933 in 2007
  • Graduate enrollments also climbed from 220 in
    1998 to 1,153 in 2007
  • America Competes Act creates the framework for
    addressing challenges in the Science, Technology,
    Engineering and Math workforce
  • Each new plant that is built will require between
    1,400 and 1,800 workers for construction and
    between 400 and 700 workers for operation these
    are great jobs!
  • Repatriating jobs in the manufacturing sector

29
Infrastructure Manufacturing
  • 17 companies or consortia have announced that
    they are developing combined license applications
    for up to 31 new nuclear reactors
  • Major investments are underway in long-lead
    procurement items and should force expansion of
    U.S. manufacturing capability
  • More vendors and manufacturers are expressing
    interest in entering the commercial nuclear
    industry and some have taken the next step and
    applied for and/or received their N-stamp
  • Recently Babcock Wilcox and Peter Kiewit
    renewed their nuclear accreditation

30
Yes, But What Aboutthe Cost of Nuclear Power?
Nuclear critics say, Nuclear power costs too
much Nuclear power can only survive because
its heavily subsidized New nuclear power
plants are too costly and cannot compete
31
Fast Facts About Nuclear Power Economics
  • 104 operating nuclear power plants are
    lowest-cost source of baseload (24-by-7)
    electricity
  • Stable fuel costs
  • Higher (90 average) availability than any
    other source of electricity
  • Nuclear power plants are immune to
  • Volatility in fossil fuel prices
  • Increasingly stringent controls on air
    pollutants and carbon dioxide emissions
  • New nuclear power plants will be competitive with
    other sources of clean electricity
  • All energy sources are subsidized (because energy
    supply is a public good)
  • Nuclear energy is not the most heavily
    subsidized

32
Operating Nuclear Plants
Average nuclear plant production costs have
declined more than 30 percent over past 10 years
U.S. Electricity Production Costs 1995-2006
cents per kwh (2006)
Production Costs Operations and Maintenance
Costs Fuel Costs Source Global Energy Decisions
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New Nuclear Power PlantsCompetitive with Other
Sources
  • All baseload technologies have high capital cost
  • Capital cost less important than lifetime
    operating cost
  • Total nuclear operating cost comparable to
    advanced coal- based plants and better than
    gas-fired plants
  • Renewables do not compete with nuclear
  • Nuclear Baseload 24-by-7 (90 availability)
  • Wind Intermittent (30 availability)
  • New nuclear benefits justify use of investment
    support
  • Federal government Support for debt financing
    through loan guarantees
  • State governments Assurance of investment
    recovery through rates

A portfolio of fuels, technologies is essential
to meet U.S. energy security, environmental goals
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All Energy Sources Are Subsidized
  • Since energy crises of the 1970s, federal
    government spending on RD (1976-2006)
  • Nuclear 4.2 billion
  • Coal 5.9 billion
  • Renewables 7.3 billion
  • Federal expenditures on energy (RD, tax
    benefits, etc.) since 1950
  • Oil and natural gas 435.9 billion
  • Coal 93.4 billion
  • Hydro 80.5 billion
  • Nuclear 64.7 billion
  • Renewables 43.9 billion
  • Geothermal 6.4 billion

Management Information Services, Inc., Federal
Expenditures on Energy 1950-2006, November 2007
35
Energy Policy Act of 2005Investment Stimulus
for New Plants
  • Federal loan guarantee
  • Not nuclear-specific All clean energy sources
    qualify
  • Reduces cost of capital and cost of electricity
  • Federal delay insurance
  • 2 billion of coverage for first six new nuclear
    plants
  • Covers delays beyond the private sectors control
  • Production tax credit
  • Provides emission-free nuclear power with similar
    tax treatment as renewables
  • Price-Anderson Act renewal
  • Over 10 billion industry-funded accident
    insurance protecting the public

36
Subsidy or No Subsidy?Sub-si-dy (subsi dé). n.,
a direct financial aid furnished by a government
to a private commercial enterprise
Incentive in Energy Policy Act How the Program Operates Subsidy or No Subsidy?
Loan Guarantee Program is self-financing Private sector pays cost to federal government of issuing loan guarantee, plus all administrative fees No subsidy
Delay Insurance Program operates like commercial insurance Private sector pays Department of Energy a premium to receive coverage No subsidy
Production Tax Credit Unlike production tax credit for renewables, nuclear tax credit is limited to 6,000 megawatts of capacity, is not indexed for inflation Limited subsidy
Price-Anderson Insurance Federal government has never paid a claim under Price-Anderson. Insurance program is financed by nuclear industry. No subsidy
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Return on Investment The True Measure of a
Subsidy
  • 2005 Energy Policy Act provides 6 billion of tax
    credits to new nuclear plants Is it worth it?
  • Benefit of a typical nuclear power plant over its
    40-year operating lifetime 27.5 billion to 32
    billion
  • Local, state and federal taxes
  • Salaries to personnel who operate the plant and
    indirect employment that results
  • Value of the electricity produced by the plant
  • 6 billion investment by the taxpayer produces
    165 billion to 192 billion in value

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Subsidies A Rational Perspective
It is the interest of the society to submit
to a temporary expense, which is more than
compensated by an increase of industry and
wealth, by an augmentation of resources and
independence, and by the circumstance of eventual
cheapness Alexander Hamilton, Report on
Manufactures, December 1791
  • Subsidies are an essential part of American life
  • (subsidy is not a pejorative)
  • Subsidies encourage production of goods and
    services that serve the public interest and
    general welfare
  • For example, federal government manages a 1.1
    trillion loan guarantee portfolio
  • Loan guarantees widely used to ensure development
    of critical infrastructure

39
Conclusions
40
Whats in Our Future? "The future ain't what it
used to be." Yogi Berra
  • Solid base of political and public support
  • Nuclear is recognized as essential part of U.S.
    electricity supply
  • Industry must address challenges/preconceived
    ideas
  • 15 to 20 COLs by the end of 2008
  • 6 to 8 plants start construction 2010 - 2011
  • 4 to 6 more start construction 2012 - 2015
  • 10 to 14 plants on line by 2020

41
An Energy Policy forAn Energy Secure Nation
  • Implement energy efficiency and conservation in
    all phases of electricity generation and use
  • Employ renewable energy sources to the full
    extent possible
  • Rely on proven, large-scale, emission-free energy
    sources for baseload generation

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