1. CANDU Owners Group Inc. “Strength Through Co-operation” 1 Presentation to CNC-IAPWS May 23, 2003 AN OVERVIEW OF CANDU OWNERS GROUP R&D PROGRAM for CNC-IAPWS WORKSHOP by P. C. Ernst May 23, 2003

2. CANDU Owners Group Inc. “Strength Through Co-operation” 2 Presentation to CNC-IAPWS May 23, 2003 Introduction Strategic Direction Program Overview Program Management Program Planning Program Execution CANDU Owners Group Inc. “Strength Through Co-operation”

3. CANDU Owners Group Inc. “Strength Through Co-operation” 3 Presentation to CNC-IAPWS May 23, 2003 Introduction Basic Water Systems in a CANDU Power Plant

4. CANDU Owners Group Inc. “Strength Through Co-operation” 4 Presentation to CNC-IAPWS May 23, 2003 Introduction Participants in COG ’ s R&D Program · AECL · Bruce Power · Hydro Quebec · New Brunswick Power · Ontario Power Generation

5. CANDU Owners Group Inc. “Strength Through Co-operation” 5 Presentation to CNC-IAPWS May 23, 2003 Strategic Direction Foster Programs to: Enhance plant operating margin Address impact of plant aging Improve plant reliability/outage management Support plant life extension and life cycle management Address fundamental R&D issues Maintain Capability for Emerging Issues CANDU Owners Group Inc. “Strength Through Co-operation”

6. CANDU Owners Group Inc. “Strength Through Co-operation” 6 Presentation to CNC-IAPWS May 23, 2003 Program Overview: Areas R&D Program addresses issues in four general areas: Fuel Channels Safety and Licensing Health, Safety and Environment Chemistry, Materials and Components CANDU Owners Group Inc. “Strength Through Co-operation”

7. CANDU Owners Group Inc. “Strength Through Co-operation” 7 Presentation to CNC-IAPWS May 23, 2003 Program Overview: Size COG’s R&D Program ~27 M$ expenditure per year 150-200 Work Packages undertaken per year 200-300 reports produced per year CANDU Owners Group Inc. “Strength Through Co-operation”

8. CANDU Owners Group Inc. “Strength Through Co-operation” 8 Presentation to CNC-IAPWS May 23, 2003 Generally deal with CANDU-specific subjects not reported elsewhere: Heavy water Carbon-14 Tritium Fuel bundles Pressure tubes Calandria tubes Program Overview: Content

9. CANDU Owners Group Inc. “Strength Through Co-operation” 9 Presentation to CNC-IAPWS May 23, 2003 Program Overview: Issues of Interest 103 - Deuterium Ingress 201 Large LOCA Margins (RD14 M Tests) 209 - Critical Heat Flux 210 - Bundle Void and Flow Quality 216, 217 – Thermalhydraullic codes 222 - Normal Operating Condition Technologies 305 - Emission Reduction 401 - Chemistry 408 - SG & HX Integrity and Cleaning

10. CANDU Owners Group Inc. “Strength Through Co-operation” 10 Presentation to CNC-IAPWS May 23, 2003 Program Management: Organization Project Manager (COG) Project Management Technical Committee (Participants) Technical Direction of the Program Technical Representatives (Participants) Working Groups (Participants) Contract Officer (Contractor) Execution of Work Package

11. CANDU Owners Group Inc. “Strength Through Co-operation” 11 Presentation to CNC-IAPWS May 23, 2003 Program Management: Information Transfer Web site COG R&D Reports Technical Notes Workshops for targeted audiences Seminars CANDU Owners Group Inc. “Strength Through Co-operation”

12. CANDU Owners Group Inc. “Strength Through Co-operation” 12 Presentation to CNC-IAPWS May 23, 2003 Program Planning Covers both On-going & New Work Participants needs identified Budgets estimated Work Packages defined Project priorities determined Budgets established Purchase Orders Issued

13. CANDU Owners Group Inc. “Strength Through Co-operation” 13 Presentation to CNC-IAPWS May 23, 2003 Program Planning: On-going Work TC Reviews On-going Work Packages (end of Sept.) Contractor updates Work Package estimates (end Oct.) COG establishes Budget (end Nov.) Contractor Updates On-going WPs (end Jan.) COG defines next year’s program (end Feb.) Purchase Orders issued (end March)

14. CANDU Owners Group Inc. “Strength Through Co-operation” 14 Presentation to CNC-IAPWS May 23, 2003 Program Planning: New Work COG Identifies Needs – SORs issued (end Sept.) Contractor submits Preliminary Submissions (end Oct.) COG Ranks Submissions – Budget Established (end Nov.) COG issues Requests For Proposals (RFPs) (end Jan.) Proposals submitted by Contractor (end Feb.) Purchase Orders issued (end March)

15. CANDU Owners Group Inc. “Strength Through Co-operation” 15 Presentation to CNC-IAPWS May 23, 2003 Program Execution Executed via Work Packages Contract Officer executes Work Package Financial data and progress tracked monthly TC endorses changes to WP via COG Change Requests and WP Revisions Quarterly Progress Reports Performance Indices Completion of Tasks & Deliverables

16. CANDU Owners Group Inc. “Strength Through Co-operation” 16 Presentation to CNC-IAPWS May 23, 2003 Program Execution Work Packages Cost & Schedule Status Report (CSSR) COG Change Request (CCR) Quarterly Progress Report Tasks Completed Deliverables

17. CANDU Owners Group Inc. “Strength Through Co-operation” 17 Presentation to CNC-IAPWS May 23, 2003 End