New Reactor Construction Inspection Hal Thornberry Vice President, Nuclear Construction NRC Regulatory Information Conference March 11, 2009

V.C. Summer, Vogtle Levy County Projects Shaw responsibilities: Engineering Procurement Turbine island/balance of plant Site-specific systems Yard work Construction Engineering, procurement, limited site development underway Permanent plant construction cannot begin until NRC approval of COLA in 2011-12, unless granted Limited Work Authorization First new unit at each site scheduled to begin commercial operation in 2016

Sanmen and Haiyang Projects Twin AP1000™ units at each site Excavation started ahead of schedule Sanmen: February 2008 Haiyang: July 2008 Start of commercial operation: Sanmen: 2013 Haiyang: 2014 Westinghouse/Shaw Consortium working on 4 new reactors in China in partnership with SNTPC and the two facilities owners, Sanmen Nuclear Power Co., Ltd, and Shandong Nuclear Power Company Ltd. SANMEN/HAIYANG EXCAVATION Excavation for the first of the two plants will take approximately three months to create a 39-feet-deep hole that will house the nuclear reactor and turbine buildings. Shaw is responsible for reviewing and evaluating the geological technical report that was produced by Hebei Nuclear Industry of China Geotechnical Engineering Co. Ltd., as well as for developing excavation specifications and the excavation design and construction drawings for the Nuclear Island. Shaw also supports the excavation through its involvement in the Site Project Management Organization by overseeing construction and project management functions and using its experience as a worldwide leader in nuclear power plant construction.

Sanmen Module Assembly Area

Inspection Preparation for Modules In-house fabrication and module expertise leveraged in creation of Global Modular Solutions Shaw Fabrication & Manufacturing maintained ASME certification for all activities related to construction of nuclear components Assembly of modules in manufacturing setting will provide consistent quality, reduce construction site activity Fabrication of assemblies at one location will simplify some NRC inspection activity

Preparation for Construction Inspection Applying lessons learned from current Shaw nuclear projects MOX (design, construction management) LES (design) China AP1000s (construction management) Evaluating lessons learned from first generation of nuclear construction, recent industry activity Flow mapping of construction installation activities, turnover and documentation processes Aligning construction procedures with NRC programs (including ITAAC), focus on ease of implementation 8

Preparation for Construction Inspection (cont.) Nuclear culture Build on first NRC-approved Nuclear Quality Assurance Program Continued development of Safety-Conscious Work Environment Construction readiness reviews Develop key project milestones Ensure reviews are timely and focused Establish a level of confidence Identify areas for improvement Identify programmatic issues

Preparation for Construction Inspection (cont.) Training and qualification Construction training Craft skills training Process certification New plant construction Training on Part 52 and ITAAC ITAAC planning and scheduling ITAAC maintenance

Preparation for Construction Inspection (cont.) Teamwork and interface with AP1000™ partners U.S. AP1000™ project staff taking active role in construction management and other key activities on China projects Development of QA/QC programs and policies Need for strong interaction with on-site NRC inspector