1. Application of ANI Guideline 07-01 William Wendland, P.E. American Nuclear Insurers Glastonbury, Connecticut USA Philadelphia, PA June 2007 “ RETS – REMP WORKSHOP 2007” AMERICAN NUCLEAR INSURERS

2. Risk  Term is all inclusive, many components  Biological  Radiological  Financial  Corporate Liability  Others “RETS – REMP 2007"  AMERICAN  NUCLEAR  INSURERS

3. Nuclear Liability Insurance Risk  $300 Million US Provided to Each US NPP Site  Protection Covers Operators & Suppliers Against Bodily Injury or Property Damage Caused by Nuclear Hazard  Losses Can Be Catastrophic or Non-Catastrophic  Claims Defense Costs Can Be Major Portion of Claim “RETS – REMP 2007"  AMERICAN  NUCLEAR  INSURERS

4. Nuclear Liability Insurance Risk (Effluent Releases)  Increased Public Awareness of NPP Effluent Releases & Perception of Personal Risk  Public does not differentiate between Isotope of Cobalt and Tritium  1 atom Co-60 ~ 1 atom of Tritium (perception)  NPP Releases Cause Harm ! (Perception) “RETS – REMP 2007"  AMERICAN  NUCLEAR  INSURERS

5. Nuclear Liability Insurance Risk  Recent Global Risk Management Experience – Compliance with Applicable Jurisdictional Regulations does not always offer protection from future environmental liabilities  Facilities Can Mitigate Excessive Claims Defense Costs Through Evidence of Due Care and Proper Operation “RETS – REMP 2007"  AMERICAN  NUCLEAR  INSURERS

6. ANI Guideline 07-01 (“Potential for Unmonitored & Unplanned Off-Site Releases of Radioactive Material”) Fuel Pool Integrity Fuel Pool Integrity Sumps Sumps GW Intrusion into Structures GW Intrusion into Structures Storage Tanks Storage Tanks Pipe Integrity Pipe Integrity “RETS – REMP 2007"  AMERICAN  NUCLEAR  INSURERS

7. Drinking Water Drinking Water Storm Drains Storm Drains Settling Ponds Settling Ponds Sanitary Sewage Sanitary Sewage On-Site Landfills On-Site Landfills Ground Water Monitoring Program Ground Water Monitoring Program “RETS – REMP 2007"  AMERICAN  NUCLEAR  INSURERS ANI Guideline 07-01

8.  Underground Piping Breaches  Pond Liner Leaks  Above ground tank & SFP leaks  On and Off-Site GW Contaminations “RETS – REMP 2007"  AMERICAN  NUCLEAR  INSURERS Experience

9. Experience  Many sites installed wells to monitor for leaks to groundwater at ANI request. ANI Recommendations Underwriting Adjustments ANI Recommendations Underwriting Adjustments  Wells provided indication of piping, pond, tank or SFP integrity breaches “RETS – REMP 2007"  AMERICAN  NUCLEAR  INSURERS

10. Recent Industry Experience  Recent Industry Experience  Challenging Public Confidence “RETS – REMP 2007"  AMERICAN  NUCLEAR  INSURERS

11. ANI Response “RETS – REMP 2007"  AMERICAN  NUCLEAR  INSURERS  Nuclear Liability Insurance Inspections  Increased Attention in Select Areas

12. Summary  ANI Supports the elements of the Industry Initiative and looks forward to successful implementation. “RETS – REMP 2007"  AMERICAN  NUCLEAR  INSURERS