1. Hydrogen’s promise Fuel Cell... Store Enormous Quantities Of “Electricity” For Use On Demand A Clean “Abundant” Fuel Clean Transportatio n Stationary Applications In Home & Industry “Micro” Applicatio ns

2. Hydrogen is versatile Makes Sense Only If Hydrogen Is Produced With Non-GHG Emitting Processes Biomass Hydro Wind Solar Biomass Hydro Wind Solar Biomass Hydro Wind Solar Nuclear Coal Oil Natural Gas Sequestration Multiple Sources & Applications Stationary - Commerci al, Residentia l Transportati on Micro Apps

3. Getting hydrogen from nuclear Conventional Electrolysis (A Proven Technology) –Overall Efficiency ~24% (LWR), ~ 36% (HTGR) High Temperature Electrolysis (HTE) –> 50% Efficiency Thermo-Chemical Water-Splitting  Developing Technologies –Set Of Chemical Reactions That Use Heat To Decompose Water Into H 2 & O 2 –Overall Efficiency ~ 50% –Requires Generation IV Or High Temperature Gas Reactors –Several Cycles under Consideration – Sulfur Iodine, Calcium Bromine, Copper Chlorine (ALTC), etc. Steam Methane Reforming w/Nuclear Heat Source –Transition to non-fossil fuel economy

4. Thermo-chemical water splitting Sulfur Iodine - “SI” Process 800 o C + + SO 2 H2OH2O ½ O 2 Heat + 450 o C H2H2 I2I2 O2O2 H2H2 Efficiencies 47%- 53% 600 MWTh Module  ~200 Tons / Day 120 o C H2OH2O Heat I2I2 + SO 2 2HI H 2 SO 4 WATER

5. The Idaho National Lab project “Artist’s Conception” High Temperature Electrolysis Thermochemical Water Splitting NGNP Demo – 2015 Electricity & H 2 Production INE EL

6. Nuclear: A promising potential A “Bridge” – From Electric Energy Sector To The Larger Spectrum of Energy Use Public Mandate – for improved forms of energy that are safe, clean and diverse to ensure future generations’ standard of living and the health of our environment Long Term Effort – transformation from fossil based to hydrogen based economy is a 20 to 30 year effort A Future Of Radical Change – Either In The Way We Produce Energy Or In The Health Of Our Planet

7. Future generations are counting on us … Can we afford to be wrong? NASA photo, Natural Resources Defense Council

8. New Nuclear and its Role in Environmentally Friendly Generation W. Kenneth Hughey Senior Manager, Nuclear Business Development Entergy Nuclear

9. New Nuclear Power and Climate Change: Issues and Opportunities Mary Quillian Director – Business and Environmental Policy Nuclear Energy Institute

10. Nuclear Energy’s Role in The United States November 3, 2006 AWMA-NES Fall 2006 Conference and EBC-NE Seminar Mary Quillian Nuclear Energy Institute

11. Share of Total Electricity Generation by Fuel (2005) Source: Global Energy Decisions / Energy Information Administration Updated: 4/06 United StatesNew England

12. U.S. Nuclear Industry Production Costs 1995- 2005 (In 2005 cents per kilowatt-hour) Production Costs = Operations and Maintenance Costs + Fuel Costs Source: Global Energy Decisions Updated: 6/06

13. U.S. Electricity Production Costs 1995-2004 (Averages in 2004 cents per kilowatt-hour) Production Costs = Operations and Maintenance Costs + Fuel Costs Source: Electric Utility Cost Group and Global Energy Decisions Updated: 6/05

14. Fuel Type Average Capacity Factors Nuclear90% Coal (Steam Turbine)73% Gas (Combined Cycle)38% Gas (Steam Turbine)16% Oil (Steam Turbine)30% Hydro29% Wind27% Solar19% Nuclear and Coal Provide Baseload Power Source: Global Energy Decisions / Energy Information Administration U.S. Capacity Factors by Fuel Type 2005

15. Fuel as a Percentage of Electric Power Industry Production Costs 2004 Source: Electric Utility Cost Group and Global Energy Decisions Updated: 6/05

16. Emissions Prevented by Nuclear Energy (2005) CO 2 (metric tons) SO 2 (short tons) NO X (short tons) United States681,900,00 0 3,320,0001,050,000 New England21,200,00065,20017,100 RGGI * Region 89,800,000515,000123,000 * RGGI region includes CT, DE, ME, MD, NH, NJ, NY, and VT Source: Emissions avoided by nuclear power are calculated using regional fossil fuel emissions rates from the Environmental Protection Agency and plant generation data from the Energy Information Administration Updated: 4/06

17. U.S. Electric Power Industry CO 2 Avoided Million Metric Tons (2005) Source: Emissions avoided are calculated using regional and national fossil fuel emissions rates from the Environmental Protection Agency and plant generation data from the Energy Information Administration. Updated: 4/06

18. Used Fuel Management: Where We Stand Today Yucca Mountain site judged suitable in 2002 –20 years of scientific investigation –$6-7 billion of research License application expected in 2008 Complex program with many moving parts: –A collision of science, politics, the federal budget, technology, federal versus state prerogatives, business imperatives, and international policy issues

19. “Closing” the Nuclear Fuel Cycle Worldwide expansion of nuclear energy prompting renewed interest in: –recycling used nuclear fuel –advanced used fuel reprocessing technologies –developing new type of fuel from reprocessed product –new reactor designs able to consume fissile materials recovered from used fuel Together, these advanced technologies reduce volume and toxicity of nuclear waste and are the underlying technologies of Global Nuclear Energy Partnership (GNEP) But... still need Yucca Mountain disposal facility

20. Used Fuel Management: Long-Term and Short-Term Goals Long-term goal: License and build disposal facility for waste by-products at Yucca Mountain with multi- decision points on closure Short-term goal: Maintain flexibility as we move toward long-term goal –Accommodate advances in fuel processing and recycling technologies –Provide federal storage capability before shipment to Yucca Mountain at interim storage sites linked to future recycling

21. Near-Term Need for New Capacity Source: Cambridge Energy Research Associates and EV Power ®, Global Energy Decisions, Inc. Notes: (1) Required reserve margin assumed to be 18 percent in New England, New York, PJM, WECC, and FRCC; otherwise it is 15 percent; (2) Includes only known scheduled retirements. Projected Excess Capacity by NERC Region, 2005–12, Including Power Plants Under Construction (megawatts) Region200720082009201020112012 ISO-NE8612130000 NYISO1,35300000 MAAC1,58300000 ECAR12,3449,9708,6866,4414,1691,869 MAIN6,7407,3905,6614,8844,3673,024 MAPP-US3,6212,9392,4221,5756900 VACAR000000 Southern2,7381,0290000 TVA1,3172360000 Entergy16,33015,69115,10915,18414,58613,977 FRCC2,4721,488145000 SPP5,7294,6903,7462,7501,759750 ERCOT000000 WECC-US20,73117,93115,94514,14011,5478,900

22. Energy Policy Act of 2005 Federal loan guarantees –Covers up to 80% of project cost –Allows more highly leveraged capital structure –Reduces project cost –Applies to other technologies that reduce emissions (IGCC, renewables, etc.) Production tax credits –$18/MWh for up to 6,000 MW new nuclear –For 1,000 MW of capacity, that is worth up to $125 million in tax credits per year for 8 years

23. New Generating Capacity: Estimated Power Costs ($/MWh) *Assumes 15% cost of equity, 8% cost of debt, and a 50/50 debt/equity structure; Source: NEI Analysis

24. New Generating Capacity: Estimated Power Costs ($/MWh) *Assumes 15% cost of equity, 8% cost of debt, and a 50/50 debt/equity structure; **Assumes 15% cost of equity, 6% cost of debt and an 80/20 debt/equity structure.. Source: NEI Analysis

25. Containing the Perceived Risk Of First New Nuclear Plants New licensing process reduces risk of delay –Project developers will have regulatory approvals before significant capital is spent –Standardized designs complete before construction begins Federal standby support –Provides $2 billion of risk insurance for first six plants –Covers delays resulting from licensing or litigation

26. Significant Industry Investment Underway Design and engineering: –2 designs certified: AP1000, ABWR –ESBWR under review, U.S. EPR being prepared for certification Supply chain: Major investments underway in long-lead procurement, expansion of U.S. manufacturing capability –BWXT renewed “N-Stamp” accreditation from ASME –BWXT-AREVA joint venture to manufacture heavy components –LES enrichment facility licensed Licensing –3 ESPs (Exelon, Dominion, Entergy) under NRC review: approval 2007 –Southern Nuclear preparing 1 ESP (Vogtle), Duke considering 2 –13 companies, consortia preparing license applications for as many as 31 units: submittal 2007-2009 (public announcements only)

27. New Nuclear Plants Under Consideration CompanyLocationUnits Date for Filing COL Application DominionVirginia12007 NuStart Energy (TVA)Alabama22007 NuStart Energy (Entergy)Mississippi12007/2008 EntergyLouisiana12008 Southern Co.Georgia1-22008 Progress EnergyNorth Carolina and Florida 2-42007 South Carolina Electric & GasSouth Carolina 1-22007 Duke EnergySouth Carolina 22008 UniStar NuclearNew York or Maryland 1-52008 Florida Power and LightTBD 2009 NRG (at South Texas Project)Texas22007 Amarillo PowerTexas2  2007 TXUTexas2-5  2008 ExelonTexas22008

28. Growing Need for Additional Baseload Capacity Electricity demand in 2030 will be 45% greater than today To maintain current electric fuel supply mix would mean building: Nuclear reactors (1,000 MW) Renewables (100 MW) Natural gas plants (400 MW) Coal-fired plants (600 MW) 50 93 279 261 Source: 2006 Annual Energy Outlook, Energy Information Administration

29. New Nuclear Power and Climate Change: Issues and Opportunities Dr. Tom Sowdon Manager of Emergency Preparedness Entergy

30. Nuclear Power and Emergency Planning Tom Sowdon, ScD, CHP Manager, Emergency Preparedness Entergy, Pilgrim Station

31. What is Nuclear Emergency Preparedness? Equipment Facilities Procedures Training Drills Personnel Communications Agreements

32. What is Emergency Preparedness (Really)? It’s an organizational state-of-mind that we have anticipated and planned for unlikely, unexpected and even unthinkable events and we maintain a high state of readiness to deal with those events

33. What does it do for us? Prepares us to manage a very unlikely catastrophic events and protect lives and property Allows us to manage the inevitable minor events and keep them from becoming perceived as major ones thereby ensuring continued plant operation

34. Emergency Preparedness Matured after Three Mile Island (TMI) March 28, 1979 at 4:00 AM - a pump failed Ultimately melted over a third of the uranium fuel Permanently disabled the plant Cost in excess of a billion dollars Resulted in widespread anxiety and evacuation of some members of the public Had a significant financial impact on the utility Created a lasting perception that nuclear power is ultra-hazardous Nearly ended nuclear power in the United States

35. Consequences Environmentally – a non-event Total radiation dose to maximally exposed member of the public ≈ 20% of annual background (70 millirem/360 millirem) Created a lasting paranoia that any event at a nuclear power plant is significant

36. What did we learn? Depending who you talk to, TMI demonstrated that nuclear power is either inherently dangerous or incredibly safe Everything that could go wrong – did! Lots about training, instrumentation, equipment, failure modes, even plant design and how people are likely to make mistakes Even more about Emergency Planning

37. The Three Most Important EP Lessons from TMI 1)Communications

38. The Three Most Important EP Lessons from TMI 1)Communications 2)Communications

39. The Three Most Important EP Lessons from TMI 1)Communications 2)Communications 3)Communications

40. What do you mean by that? Communications must be; –Prompt –Accurate –Consistent –Clear –Meaningful –Empathic

41. TMI Errors (some) Information was inconsistent –whether or not there was a release in progress depended on who you talked to Information was techno-jargon –Well meaning, but untrained engineers showered the public and media with incomprehensible terminology Information was sometimes just wrong –Is there a hydrogen “bubble” about to explode

42. Minor Events are Inevitable! In part because of TMI and in part because of lack of knowledge of the behavior and effects of radioactive materials and ionizing radiation, every minor event could be blown out of proportion.

43. Emergency Action Levels Unusual Event, Alert, Site Area, General EALs define what events need to be reported Entry into an EAL condition will be reported to all Towns within 10 miles and the State within 15 minutes Follow-up communications will occur every hour or sooner EALs are NOT discretionary or arbitrary

44. A Matter of Survival Nuclear power has not only survived, but appears to be enjoying a renaissance This is due in part to effective, structured emergency planning that fosters confidence A structured response program where every abnormal event of even trivial significance gets reported immediately (<15 minutes) to offsite authorities Prompt and open communications and cooperation with local and state government Accurate and consistent sources of meaningful information in any type of event – large or small

45. Does it work? It seems to be working well. Every year there are dozens of low-level events that get reported to local, state and federal authorities under Emergency Plans None of these events appear to result in undue concern In most cases, local authorities understand the plant condition and have answers for citizens before they even realize an event has occurred

46. How Important is this? Nuclear Power cannot survive without public confidence Public confidence cannot be maintained without sharing of information on even the most trivial operational occurrence Yes, the standards that get applied to nuclear power are NOT the same as other industries – so we need to be better than anyone

47. Contact Info Tom Sowdon, ScD, CHP Manager, Emergency Preparedness Entergy, Pilgrim Station tsowden@entergy.com 508-830-8834

48. New Nuclear Power and Climate Change: Issues and Opportunities Jay Maisler Consultant and Certified Health Physicist Enercon

49. Nuclear Power Plant Radioactive Waste Jay J. Maisler, CHP Enercon Services, Inc.

50. Radioactive Waste Overview Low Level Radioactive Waste The U.S. Nuclear Regulatory Commission defines low- level waste as including items that have become contaminated with radioactive material or have become radioactive through exposure to neutron radiation. Low- level waste is typically stored on-site by licensees, either until it has decayed away and can be disposed of as ordinary trash, or until amounts are large enough for shipment to a low-level waste disposal site in containers approved by the Department of Transportation.