Nuclear Power Update for The Society of American Military Engineers September 15, 2010

Nuclear Power Facilities- Safety is Key Multiple Layers of Safety 45 inch steel-reinforced concrete 1/4 inch steel liner 36 inch concrete shielding 8 inch steel reactor vessel The large reactor vessel has steel walls 8 inches thick. The vessel is surrounded by 3 feet of concrete shielding. At most plants, a leak-tight steel liner covers the inside wall of the containment building. The containment building is a massive, reinforced concrete structure with walls 4 feet thick. nuclear fuel assemblies

Industry Activities Licensing risk is a key issue for the industry to move forward with actual plant orders Previously separate construction and operating licenses were required No certainty provided by this process Many physical changes were required prior to receipt of operating licenses Costs increased due to schedule delays and rework required Industry has adopted new process which results in combined construction and operating license

New Licensing Process provides regulatory certainty New page 23 New Licensing Process provides regulatory certainty Licensing decisions finalized before major construction begins Inspections to verify construction Limited work may be authorized before license is issued Pre-Construction Construction Verification Early Site Permit Standard Design Certification Combined License Review, Hearing, and Decision Verification of Regulations with ITAAC Reactor Operation Decision Optional Pre-Application Review

Industry Activities Industry has adopted several standard designs Westinghouse AP 1000 (design certified 1/2006) General Electric ESBWR General Electric ABWR (design certified 5/1997) Areva US EPR Mitsubishi US APWR

New Technology - Advanced Reactor Characteristics Safety Use of passive safety systems Gravity flow and natural circulation designs for cooling Design Reduced number of components and bulk commodities Eliminate pumps and valves previously needed Use digital controls and fiber optic cables Procurement Standardization of components based on NRC approved design

Fewer Components Reduce Plant Costs 45% Less Seismic Building Volume 70% Less Cable 50% Fewer Valves 35% Fewer Pumps 80% Less Pipe Confidential and Proprietary

New Technology - Advanced Reactor Characteristics Construction Extensive use of modular construction improves quality and reduces on-site construction requirements Digital controls reduce size and complexity of systems Shorter construction schedule Operation and Maintenance Use of proven systems and components Man-machine interface advancements Fewer systems to maintain and test reduces staff

Smaller and Simpler than Current Plants Many Evolutionary plants improve PRA and safety by adding equipment thereby adding redundancy (4 train) and diversity. Passive safety presents an alternative approach to improved safety which simplifies the plant. Sizewell B is a 1250MW 4-loop PWR in England. AP1000 net electrical output is 1117MW. The comparison is to scale. The AP1000 is much smaller and simpler than Sizewell B. The four colors represent the Safety related Electrical Divisions for AP1000 and Sizewell. Sizewell B AP1000 74147A

Economics What makes Nuclear attractive? Fuel volatility, both gas and coal, is a major concern Fuel transport and supplies are showing signs of capacity constraints Environmental compliance measures are increasing cost of coal base load resources Regulation of carbon dioxide (CO2) emissions is gaining traction New licensing process expected to allow cost control New design units are smaller and less costly to construct

Costs of Competing Fuels

Plant Vogtle Reactor Containment Bldg. Cooling Towers Turbine Bldg. Electrical Switchyard

Plant Vogtle Expansion

PSC Certification Process (complete) Schedule Overview 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 ESP Preparation ESP and LWA Review 08-15-06 ESP and LWA Received 8-26-09 PSC Certification Process (complete) EPC Contract Signed 4-8-08 PSC Certification received 3-17-09 COLA Preparation NRC COL Review COLA Submitted COL Received 3-31-08 Fall 2011 Pre-Construction LWA Activities Construction S/U COD U3 4-1-2016 Commercial operation date is April 2016 & 2017 for Units 3&4 S/U As of 6/30/2010

Permit and License Activities Early Site Permit Submitted to NRC in 2006 Issued by NRC August 2009 First to include Limited Work Authority Combined License Application COL Application Filed in March 2008 Application Under Review at NRC Anticipate License in Fall 2011 Vogtle Named Reference Plant

Vogtle 3 & 4 Construction Phases Pre Certification Pre Construction LWA COL Surveying Subsurface Exploration Environmental Protection Site-clearing Demolition & Relocation of existing facilities Construction of training & storage buildings Excavation of the nuclear island Back Fill Waterproof Membrane Rebar Basemat Concrete Safety Related Construction Onsite Workers 2009 2010 2011 2012 PSC Certification LWA COL

Construction Activities – Module Assembly Building

Construction Activities Steam Generator Head Circulating Water Pipe Reactor Vessel Head

Construction Activities – Foundation Excavation and Backfill

Chinese Construction AP1000 Sanmen U1 Nuclear Island

Questions