Nuclear New Build and Early Decommissioning in Todays Environment

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Nuclear New Buildand Early Decommissioningin
Todays Environment

• Tom ONeill
• VP, New Plant Development
• EnergySolutions
• 10th Annual Customer Conference
• January 16, 2008

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Exelon Corp one of the nations largest utility
companies- Distributes electricity to 5.2
million customers in Illinois and
Pennsylvania distributes gas to 460,000
customers in PA- Generation operations in 6
states
Byron
Limerick
Quad Cities
Three Mile Island
Oyster Creek
Dresden
Peach Bottom
Braidwood
LaSalle
Clinton

• Exelon Nuclear
• 17 units at 10 sites in 3 states
• 18,000 MW capacity
• Largest US nuclear operating company 3rd
  largest in world

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Exelon is one of the premier nuclear operators
Average Capacity Factor
Range of Fleet 2-Yr Avg Capacity Factor
(2002-2006)
EXC 93.2
Percent
Note Exelon data prior to 2000 represent
ComEd-only nuclear fleet. Sources Platts,
Nuclear News, Nuclear Energy Institute and Energy
Information Administration (Department of Energy).
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Potential Nuclear New Build

• Intend to file Construction and Operating License
  (COL) for plant in Texas by end of 2008
• Preserves option to participate in Energy Policy
  Act incentives
• Long-lead material for dual unit ESBWR has been
  reserved
• Texas is attractive market for new nuclear
• Growing demand for baseload power, robust market
  prices
• State and local support for new nuclear
• Existing Exelon presence in Texas
• Exelons phased approach allows for go/no-go
  decisions at major funding/commitment milestones
• Exelons conditions for new build remain
  unchanged the economics must be right

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Critical Success Factors

• Federal, state and local regulatory and political
  support
• Regulatory process stability
• Bipartisan state and local support
• Path to resolution of spent fuel
• EPC commercial terms
• Risk sharing, performance guarantees, liquidated
  damages
• Project financing and equity protection
• Federal loan guarantees
• Equity partner participation
• Off-take agreements
• Ownership and operating agreements
• Confidence in project feasibility
• Supply chain, infrastructure, project management

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New Build Summary

• Strong future for nuclear generators and their
  key strategic partners IF
• We continue to manage costs
• Carbon constraints are implemented
• We continue to win political, regulatory and
  public support
• And if we continue to perform

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Early Decommissioning of Zion Station

• Zion Status
• Permanently ceased operations 1998
• In mothballed configuration
• Environmentally compliant
• Used fuel stored in fuel pool secure
• Synchronous condensers
• Current Decommissioning Plans
• Not if, but when
• NRC regs require decommissioning by 2058
• Trusts are funded at NRC required levels
• Funds will grow to cover projected traditional
  costs
• Current Exelon schedule complete decom by
  2030 subject to change

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Early Decommissioning with EnergySolutions

• Transfer plant and trust funds to EnergySolutions
• ES core competency
• ES rip and ship method takes down plant in 10
  years ships low level waste to Clive UT
• Site is partially returned to greenfield status
• Fuel placed in dry cask storage switchyard stays
• Revenue neutral to Exelon
• ES holds obligation to return any excess funds to
  Illinois customers.
• NRC, IRS approvals needed

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Benefits/Risk Mitigation of Early Decommissioning

• Responsive to the community
• Grassroots support to do something
• Discussed with federal, state, local officials
  labor
• Fulfills promise to decommission
• Returns land to beneficial use much sooner
• Mitigates potential environmental risk
• Certainty of cost and disposal
• Protections against fund depletion in deal terms
• No cost to electric ratepayers
• Innovative precedent-setting

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