7671-9/06-1

Nuclear PowerPoised for Expansion

7671-9/06-1

Jimmy WangVice President

Bechtel Nuclear

7671-9/06-2

Projected U.S. Energy Demand

The U.S. Is Projected to Need 50% more Electricity by 2025

Source: U.S. Department of Energy

1980 19901970 2003 2015 2025

5,787BkWh

3,839BkWh

7671-9/06-3

103 nuclear plants 20% of the nation’s electricity

U.S. Nuclear Energy—Quick Facts

Displaces 680 million metric tons of CO2/yr

Equivalent to 131 millionpassenger cars/yr

7671-9/06-4

U.S. Nuclear Drivers

Safety first

Proven performance

Cost effective

Affordable

Energy security andindependence

Lowest cost base load generation/grid stability

Emission-free

7671-9/06-5

U.S. Nuclear Drivers

92%

'82 '84 '86 '88 '90 '92 '94 '96 '98 '00 '02 '04

55

60

65

70

75

80

85

90

95

Ca

pa

cit

y F

ac

tor

(%)

0

0.2

0.4

0.6

0.8

1

NRC significant events Continuously declining

Proven performance Continuously increasing Record levels

‘05

Years ‘05

Years

7671-9/06-6

U.S. Nuclear Drivers

Cost effective 1.68 cents/kWh

Emissions Emits no GHGs On par with renewables

1041

622

17 18 46 14 39 150

200

400

600

800

1000

1200

0

1

2

3

4

5

6

7

8

9

10

11

Years‘05

Coal

Gas

Nu

clear

Hyd

ro

Bio

mass

Win

d

Sola

r

Geo

1.682 ¢/kWh

Life Cycle CO2 EmissionsTons CO2-equiv./GWeh

7671-9/06-7

Source: Bisconti Research Inc.

Increasing Public Support

Important

for our energy

future

83%

Keep the option to build nuclear plants

74%

Definitely build

nuclear plants in

future

58%

Accept new

reactors at nearest

plant

69%

Favor use of nuclear

energy

70%

Evidence of U.S. Nuclear Revival

86% of People Within 10 Miles of Existing Nuclear PlantsFavor New Nuclear Power Plants

7671-9/06-8

DeliveringInvesting in

Insuring Reliable

Jump Start

Transmission

InfrastructureDiversityof Fuels

NuclearNew Plant

Construction R&D

Energy Policy Act of 2005

7639-8/06-8

7671-9/06-9

Nuclear

New PlantConstruction R&D

Loan guarantees Risk assurance Production tax credit Price-Anderson Decommissioning funds

Next generation nuclear plant Nuclear hydrogen production Advanced fuel cycle initiative Nuclear engineering program Medical isotopes

Energy Policy Act of 2005

7639-8/06-9

7671-9/06-10

Key Provisions for New Nuclear Plant Construction

Loan guarantees 80% of project cost Higher leverage Lower debt cost

Production tax credit $18/MW hr Through 2021 $125M/1000 MW per year 6,000 MW eligible

Risk assurance Delay protection $500M for 1st 2 plants $250M for next 4 plants

Price-Anderson Nuclear liability insurance Reauthorization for 20 years

Decommissioning funds

Updates for treatment Allows companies to establish funds and make contributions

Allows transfer of nonqualified funds to qualified funds

7671-9/06-11

Nuclear R&D—Key Provisions

Next generation nuclear plant $1.25B Test 2 advanced designs of INL

Nuclear hydrogen production $200M Demonstrate production of hydrogen

Advanced fuel cycle $580M More proliferation-resistant fuel

University nuclear engineering program $56M Recruit and educate students in

nuclear science and technology

Medical isotope assurance Clarifies procedures for licensing the export of HEU

Ensure a robust, affordable supply of isotopes to U.S. medical community

7671-9/06-12

Reactor Designs Being Considered

Design Vendor TypeDesign Certification

Status

ABWR GE Nuclear BWR Approved

System 80+ Westinghouse PWR Approved

AP 600 Westinghouse PWR Approved

AP 1000 Westinghouse PWR Approved

ESBWR GE Nuclear BWRDocketed—December 2005

Certification—2008

EPR Framatome ANP PWR COL Application—December 2007

Certification—June 2010

Genera

tion III +

Genera

tion III

7671-9/06-13

New Generation in the United States

EPREPR

ESBWRESBWR

AP 1000AP 1000

ABWRABWR

Southern

Constellation

Dominion

SCE&G

Entergy

Duke

Progress Energy

TVA

FPL

STP

Amarillo Power

TXU

Technologies

Utili

ties

AREVA NP

Westinghouse

General Electric

7671-9/06-14

New Nuclear Plant Players: The ScorecardCompany Application Status Plant Technology

Constellation EnergyPlans to submit COL Application AREVA NP’s EPR

Plans to submit ESP and COL Application Westinghouse’s AP 1000

Dominion Submitted ESPPreparing COL General Electric’s ESBWR

Submitted ESPPreparing COL Application

Plans to submit ESP and COL

General Electric’s ESBWR

Preparing COL application Westinghouse AP 1000

Preparing COL application Westinghouse AP 1000

Preparing COL application Westinghouse AP 1000

Preparing COL application Westinghouse AP 1000

Plans to submit COL TBD

Plans to submit COL ABWR

Plans to submit COL ABWR

Plans to submit COL TBD

Vogtle

North AnnaNorth Anna

Grand Gulf

River BendRiver Bend

Harris

Bellefonte

V.C. Summer

Cherokee

Calvert Cliffs

Nine Mile Point

TBD

South Texas

ABWR

South Texas

7671-9/06-15

Potential New Nuclear Construction Plans

Company Site DesignNumber of Reactors COL Application Filing Date

Projected Date of Operation

Dominion North Anna (VA) ESBWR 2 September 2007 TBD

Duke Power Cherokee (SC) AP 1000 2 Late 2007/Early 2008 TBD

Entergy Grand Gulf (MS) ESBWR 1 4th Qtr. 2007/1st Qtr. 2008 TBD

Entergy River Bend (LA) ESBWR 1 Early 2008 TBD

TVA/ Southern Bellefonte (AL) AP 1000 2 4th Qtr. 2007 TBD

Progress Energy Harris (NC) AP 1000 2 Late 2007/Early 2008 2015

Progress Energy Florida (TBD) AP 1000 2 Late 2007/Early 2008 2015

SCE&G/Santee Cooper

V.C. Summer (SC) AP 1000 2 3rd Qtr. 2007 2015

Southern Co. Vogtle (GA) AP 1000 2 March 2008 TBD

UniStar Calvert Cliffs (MD)Nine Mile (NY)(FL)

EPR 1 – 4 June 2008 and June 2009 2015

STP South Texas (TX) ABWR 2 June 2008 2014

Amarillo Power Amarillo (TX) ABWR 2 August 2008 2014

TXU Comanche Peak TBD 6 TBD TBD

PotentialConstruction

27 – 30

7671-9/06-16

Summary Estimate of New Nuclear PlantsBased on the Design NRC-Centered Approach

COLs Units

AP 1000 6 12ESBWR 3 4EPR 2 4ABWR 2 4Unspecified 3 6

Total 16 30

7671-9/06-17

U.S. Nuclear Industry—First Movers

ConstellationCalvert Cliffs

SouthernVogtle

FPLTBD

DominionNorth Anna

TVA/SouthernBellefonte

EntergyGrand Gulf

EntergyRiver Bend

Progress EnergyFlorida—TBD

Duke/SouthernCherokee

Progress EnergyHarris

SCB&GVC Summer

ConstellationNine Mile

STPSouth Texas

AmarilloAmarillo

TXUComanche

Peak

7671-9/06-18

New Reactor Licensing Applications20122011201020092008200720062005

AP 1

00

0 P

rog

ram

Revie

wES

BW

RPro

gra

m R

evie

wU

nsp

eci

fied

AB

WR

Pro

gra

m

Revie

wEPR

Pro

gra

m R

evie

w2013

Design Cert

Design Certification

UniStar—Calvert Cliffs (MD) Hearing

UniStar—Nine Mile Pt (NY) Hearing

Design Certification

Dominion—North Anna (VA) Hearing

NuStart—Grand Gulf (MS) Hearing

Entergy—River Bend (LA) Hearing

Unannounced Applicant ESP Hearing

Duke—Cherokee (SC)

Hearing

Progress Energy—Harris (NC) Hearing

HearingSouth Carolina E&G—Summer

Progress Energy—TBD (FL) Hearing

Southern—Vogtle (GA) Hearing

FPL No Site or Vendor Specified Hearing

NuStart—Bellefonte (AL) Hearing

Amarillo Power Hearing

Vogtle ESP Hearing

North Anna ESP Hearing

Grand Gulf ESP Hearing

UniStar—EPR—COL 3 Hearing

UniStar—EPR—COL 4 Hearing

UniStar—EPR—COL 5 Hearing

NRG Energy—South Texas Project Hearing

Duke ESP Hearing

Duke ESP Hearing

Unannounced Applicant COL Hearing

Clinton ESP Hearing

7671-9/06-19

Infrastructure Challenges

Skilled and experienced personnel Architect/engineers and constructors

• Design • Construction management

• Engineering • Craft Nuclear power plants

• Operators • Engineers• Project managers • Rad Protection

technicians• Long lead times for major components

NSSS suppliers• Engineering• Design

NRC• Engineers for COL reviews• Construction inspection personnel

Supply chain Nuclear grade equipment, components, and materials

• N-stamp • App. B QA program• Fabrication capability/capacity• Quality issues

Nuclear fuel Availability with nuclear expansion Cost

Areas of Concern

7671-9/06-20

Nuclear PowerPoised for Expansion

7671-9/06-20

Jimmy WangVice President

Bechtel Nuclear