New Nuclear Plants In the United States: Progress and Expectations

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1 New Nuclear Plants In the United States: Progress and Expectations U.S.-Japan Roundtable On Nuclear Energy Cooperation February 23, 2011

2 Near-Term Market Signals Negative North American electricity demand struggling back to pre-recession levels Most regional power markets likely to remain oversupplied for the next several years Spot power prices projected to remain soft in at least Low natural gas prices likely to persist No price on carbon until? But Have the Long-Term Fundamentals Changed?

3 Long-Term Fundamentals Remain Solid U.S. Natural Gas Wellhead Prices (In 2010 dollars per thousand cubic feet) '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 Age of U.S. Generating Capacity Years < ,500 5,000 4,500 4,000 U.S. Needs 24% More Electricity by Sources: Energy Information Administration, Ventyx Velocity Suite

4 Nuclear New Build: Progress Continues 12 COL applications (20 reactors) and two early site permits under NRC review Two combined construction/operating licenses expected late this year or early next year Vogtle 3 & 4 V.C. Summer 2 & 3 Three design certifications expected this year ABWR AP1000 ESBWR

5 Economics of New Nuclear Capacity Economic case for new nuclear capacity still solid in regulated markets Analysis by regulated companies and public service commissions based on long-term levelized costs Economic case for new nuclear capacity highly stressed in merchant markets Plant must be competitive on commercial operation date

6 New Plant Financing: Mixed Results DOE loan guarantee program a struggle Additional loan volume difficult Challenges with credit subsidy cost calculations Construction work in progress in regulated states successfully implemented in Fla., Ga., S.C. President Obama at the International Brotherhood of Electrical Workers Local 26 headquarters in Lanham, Md., for the announcement of an $8.3 billion loan guarantee offered to the Vogtle project on Feb. 16, 2010

7 V.C. Summer 2 & 3 Owners: SCANA 55%, Santee Cooper 45% Location: Jenkinsville, S.C. Design: AP1000 Anticipated COL approval: late 2011/early 2012 Spending as of Sept. 2010: $1.38 billion Scheduled start-up: 2016, 2019 Insert picture here

8 Overview of Project Status Note: Amounts are as of September 2010 BLRA Quarterly Filing

9 SCANA Generation Mix 2009 and 2019 Non-emitting 23.4% Non-emitting 59.4% As of December 31, 2009

10 Module Assembly Building & Unit 2 Excavation Soldier Pile wall

11 Auxiliary Building Module Sanmen Unit 1 June 29, 2009 Comprised of 72 submodules Size: 44-0 x 68-9 x 68-0 Weight: tons Images are copyrighted and are courtesy of Westinghouse Electric Company LLC

12 Vogtle 3 & 4 Owners: Georgia Power 45.7%, Oglethorpe Power 30%, MEAG 22.7%, Dalton Utilities 1.6% Design: AP1000 Location: Burke County, Ga. Anticipated COL approval: late 2011 Employees on site: Currently 1,500, at peak about 3,500, permanently about 800 Scheduled start-up: 2016, 2017 Insert picture here

13 Background Began planning for generation in 2005 to meet demand The Southeast has a projected growth rate of 34% in kwh sales between 2008 and 2030 Filed for early site permit in 2006, granted in 2009 Entered into an EPC contract with Westinghouse and Shaw in 2008 PSC certified the units and Senate Bill 31 passed in 2009 Customers throughout Georgia will benefit Received DOE loan guarantees in 2010

14 Project Financials Estimated total cost of the units $14 billion Georgia Nuclear Energy Financing Act reduces certified costs for Georgia Power Co. from $6.4 billion to $6.1 billion Cumulative amount spent by Georgia Power Co. through year-end 2010 $1.3 billion (includes financing)

15 Vogtle Unit 3 Nuclear Island

16 Sanmen Basemat Rebar

17 Arrival of First Containment Vessel Bottom Head Plate

18 Sanmen Containment Vessel Bottom Head

19 Vogtle Module Assembly Building

20 Sanmen Structural Module

21 Summary The NRC s new licensing process is working successfully Public opinion is favorable Incorporating construction techniques and lessons learned Projects are on schedule and within budget

22 The Next Nuclear Plant: Watts Bar Unit 2 Project remains on schedule and under budget Fuel load April 2012 Full power operations October 2012 Engineering 90% complete Construction 64% complete 3,500 people working on-site

23 Global Leadership in Development of Uranium Enrichment Capacity and Technology AREVA Centrifuge Enrichment Urenco-USA Centrifuge Enrichment USEC Centrifuge Enrichment GE-Hitachi Laser Enrichment

24 $400 Billion Global Nuclear Energy Market Planned 50 Worldwide Development 65 reactors under construction 156 reactors on order or planned Under Construction China Russia India Sources: International Atomic Energy Agency, World Nuclear Association