The Nuclear Potential

1
The Nuclear Potential

• Charles Pardee
• President and Chief Nuclear Officer
• Exelon Nuclear

2
Agenda

• Exelon Overview
• U.S. Energy Dynamics Why New Generation?
• Nuclear Energy Current State
• Challenges Facing New Nuclear

3
Exelon Corporation Overview

• Among Nations Largest Electric Utilities
• Headquartered in Chicago
• 19 Billion in Annual Revenues
• Energy Generation, Energy Delivery Power
  Marketing
• 5.2 Million Electric Customers in IL and PA
• 460,000 Gas Customers in Philadelphia
• Owns/Operates the Largest Nuclear Fleet in the
  U.S.
• 17,500 Employees 8900 in Nuclear
• NRG Acquisition being Pursued

4
U.S. Energy Dynamics Why New Generation?
5
U.S. Electricity Consumption
6
Electrical Generation Reserve Margins
7
Capacity Brought Online by Fuel Type 1965-2007
(Nameplate Capacity, MWe)
U.S. Generation Mix Additions
Source NEI Nuclear Policy Overview Nov/Dec 2007
Addition of Traditional Baseload Capacity Now
Non-Existent
8
U.S. Primary Electricity Consumption by Source
and Sector,  2007(Quadrillion Btu)
9
U.S. Electricity Production Costs 1995-2007, In
2007 cents per kilowatt-hour
10
Nuclear Energy - Current State
11
U.S. Nuclear Landscape

• Existing Generation
• 104 Reactors - 20 of Americas Electricity
• Equivalent of 16 Units Added since 1990 thru
  Capacity Improvements
• Half of Current Reactors have extended Operating
  Licenses
• Forward Looking
• Steadily rising capacity factors - near Best
  Achievable
• 3,400 MWe of Power Uprates in Progress
• Anticipate License Extensions for Remaining
  Plants
• 30 New Units announced

12
Challenges Facing New Nuclear
13
Factors Driving Nuclear Debate

• Existing Nuclear Performance
• Environmental Considerations
• Security of Energy Supply
• Public Sentiment
• Cost
• Spent Fuel Management

14
U.S. Nuclear Performance
Nuclear Safety
Capacity Factor
15
U.S. Nuclear Industrial Safety Accident
Rate One-Year Industry Values
ISAR Number of accidents resulting in lost
work, restricted work, or fatalities per 200,000
worker hours. Source World Association of
Nuclear Operators Updated 4/08
16
Environmental Considerations

• Green House Gases - Essentially Carbon Free
• Infrastructure Demands
• Heat Sink
• Water Consumption
• Transmission Access
• Discharges
• Thermal
• Liquid
• Gaseous
• Waste Disposal

17
Energy Security

• Uranium Sources in Friendly Nations
• Abundance of Fuel Source
• Closed Fuel Cycle?
• Stockpile Capabilities
• Swords into Plowshares

18
Public Sentiment

• Global
• Carbon-Free Advantage
• Three Mile Island /
• Chernobyl Legacy
• Proliferation
• Local
• Economic Benefits
• Terrorism Target Risk
• Environmental Footprint

19
Cost Uncertainties

• Regulatory Process
• Cost / Cost of Capital
• Component Availabilities
• Experience Base
• Skill Availability

Energy Policy Act of 2005
20
Spent Fuel Management

• Yucca Mountain
• Centralized Interim Storage
• Onsite Temporary Storage
• Transportation Concerns

21
Key Enablers

• Public confidence in Continued Safe Operation
• Public Opinion Regarding Environmental Benefit
• Public Desire for Less Threatening Energy Source
  (Energy Independence)
• Local Community Support
• Availability of Capital

22
Key Enablers Contd

• Predictable Cost Structures
• Stable Regulations
• Spent Fuel Management Solutions
• Manufacturing and Educational Support

23
Questions?