Management Consulting Services for Nuclear Power Operators

Overview of The Nuclear Industry and New Build In the U.S.A – Issues and Challenges

A Presentation for

IAEA Mission Supporting Nuclear Energy Infrastructure Development National Workshop on Workforce Planning and Human Resource Development

August 19-21, 2013 Riyadh, Saudi Arabia

1 Presentation Outline

• Overview of Goodnight Consulting • Overview of The U.S. Nuclear power Industry • Impacts From Fukushima Dai-ichi • Progress in The U.S. Nuclear Power Industry • Construction Progress of New Nuclear • Key Issues & Challenges In The U.S.A. • Key Issues & Challenges for Newcomers to Nuclear Power • Appendix – Small Modular Reactor Information

2 Goodnight Consulting Provides Important Services To The Electric & Nuclear Power Industries

Workforce Process Organizational Strategic Planning & Cultural Analysis & Analysis & Planning Staffing Assessments Redesign Redesign Benchmarking

3 Goodnight Consulting Has Developed Staffing Models For New Nuclear Plant Designs • Under separate contracts to Westinghouse (AP1000), Areva (EPR), and GE Hitachi (ESBWR) we have developed proprietary NPP staffing models: ➢ Multi-Unit Staffing Models For Steady State Operations

➢ Staffing ramp-up curves, for each functional area ➢ Refueling outage duration and cost estimates ➢ Comparative Staffing relative to Gen II designs • We also developed a multi-unit model for the Emirates Nuclear Energy Corporation for KHNP’s APR1400

4 We Have Also Provided A Wide Range of Support To All Aspects Of Utility Operations

• Staffing Benchmarking • Staffing Model Development • Work Force Planning Generation • Operational Analyses • Fossil • Hydro • Outage Performance Analyses • Nuclear • Cost Analyses Transmission • Compensation & Benefits Benchmarking Distribution • Process Analyses & Redesign Customer Service • Performance Benchmarking Corporate Administration • Organizational Analysis & Redesign • Organizational Migration • Cultural Assessments • M &A Support 5 We Maintain Real-World Staffing And Organizational Databases To Apply As A Baseline For Nuclear Staffing • Goodnight Consulting, Inc. maintains detailed proprietary databases including information from GOODNIGHT CONSULTING 74 nuclear plants in 6 countries STAFFING DATABASE

126 Operating Units • These databases include staffing on a functional 74 NUCLEAR PLANTS 7 3-Unit or 4-Unit Plants level: 33 Dual-Unit Plants 34 Single-Unit Plants ➢ Utility/Company site employees

STAFFING DATA MAINTAINED ➢ Utility/Company corporate employees INDEPENDENT OF ORGANIZATION ➢ Contractor/Vendor employees/Full-Time STRUCTURE Equivalents (FTEs)

• We also maintain an extensive library of detailed nuclear power company organization charts 6 Goodnight Consulting, Inc. Has Global Experience Serving The Electric Power Industry

Ameren Corporation Exelon Omaha Public Power District

American Electric Power FirstEnergy Ontario Power Generation (Canada)

AREVA (France) Florida Power & Light Pacific Gas & Electric

British Energy (United Kingdom) GE Hitachi Philadelphia Electric Company

Constellation Energy Hydro Quebec (Canada) PPL Susquehanna

Detroit Edison Indianapolis Power & Light Progress Energy

Dominion IAEA (Austria)* PSEG Nuclear

Duke Energy Kaiser Hill South Carolina Electric & Gas

Electricite de France (France) Luminant Power South Texas Project Nuclear Operating Company

Entergy Maine Yankee Atomic Power Company Strategic Teaming & Resource Sharing Alliance

Electric Power Research Institute Nebraska Public Power District Tennessee Valley Authority

E.On (Germany) New York Power Authority Westinghouse Electric Company

Emirates Nuclear Energy Corp (UAE) North Atlantic Energy Services Co. Wolf Creek Nuclear Operating Company

Eskom (South Africa) Nuclear Management Company Worley-Parsons Bulgaria, Ltd. (Bulgaria)

* IAEA support includes authoring, co-authoring, and reviewing TecDocs on Human Resources and Knowledge Management, and Expert Missions to the Governments of Chile, Dominican Republic, Egypt, Kuwait, South Africa, Thailand, and Ukraine 7 Presentation Outline

8 There Are 100 Operating Commercial Nuclear Reactors In The U.S.A. Today

• The U.S. is a large country with diverse population centers • Most U.S. population centers developed along fresh water sources • Most commercial nuclear power plants are relatively close to large population centers (but not too close: NIMBY) Image Courtesy of U.S. NRC • The large number of nuclear plants created the environment for a large nuclear support industry; the combination of many nuclear plants + a large support industry + NRC + INPO has created a significant number of nuclear power experts in many different areas of specialty 9 Most U.S. Nuclear Plants Have Received (Or Are Expected To Apply For) License Renewal For Additional 20 Years

• Over 70% of the U.S. Nuclear industry has already received license renewal approval from the NRC: Unit Name (s) Date Approved # Rx's Unit Name (s) Date Approved # Rx's Calvert Cliffs 1 & 2 3/23/00 2 Brunswick 1 & 2 6/26/06 2 Oconee Units 1, 2 & 3 5/23/00 3 Nine Mile Point 1 & 2 10/31/06 2 Arkansas Nuclear One 1 6/20/01 1 Monticello 11/8/06 1 Edwin I. Hatch 1 & 2 1/15/02 2 Palisades 1/17/07 1 Turkey Point 3 & 4 6/6/02 2 FitzPatrick 9/9/08 1 North Anna 1 & 2 3/20/03 2 Wolf Creek 1 11/20/08 1 Surry 1 & 2 3/20/03 2 Shearon Harris 1 12/17/08 1 Peach Bottom 2 & 3 5/7/03 2 Oyster Creek 1 4/8/09 1 St. Lucie 1 & 2 10/3/03 2 Vogtle 1 & 2 6/3/09 2 Fort Calhoun 11/4/03 1 Three Mile Island 1 10/22/09 1 Catawba 1 & 2 12/5/03 2 Beaver Valley 1 & 2 11/5/09 2 McGuire 1 & 2 12/5/03 2 Susquehanna 1 & 2 11/24/09 2 H.B. Robinson 2 4/19/04 2 Cooper 11/30/10 1 V.C. Summer 4/23/04 1 Duane Arnold 12/16/10 1 Ginna 5/19/04 1 Kewaunee 2/24/11 1 Dresden 2 & 3 10/28/04 2 Vermont Yankee 1 3/21/11 1 Quad Cities 1 & 2 10/28/04 2 Palo Verde 1, 2 & 3 4/21/11 3 Joseph M. Farley 1 & 2 5/12/05 2 Prairie Island 1 & 2 6/29/11 2 Arkansas Nuclear One 2 7/1/05 1 Salem 1 & 2 6/30/11 2 Donald C. Cook 1 & 2 8/30/05 2 Hope Creek 1 7/20/11 1 Millstone 2 & 3 11/28/05 2 Columbia Generating Station 2 5/22/12 1 Point Beach 1 & 2 12/22/05 2 Pilgrim 1 5/29/12 1 Browns Ferry 1, 2 & 3 5/4/06 3 • 17 additional nuclear plants are currently under review, and 13 others are expected to apply for license renewal

10 Nuclear Energy Has Become A Significant, Reliable, And Safe Energy Source For The U.S.A.

~ 20% of Energy Produced Is Average Capacity From Nuclear Factors Have Stabilized Near 90%

Industrial Safety Accidents Have Dropped To ~0.07 Per200,000 Work Hours

11 Presentation Outline

12 While Most U.S. Nuclear Plants Are Not Vulnerable To Tsunamis, There Are Some That Could Be At Risk

• Most U.S. nuclear plants are far enough from coastlines that tsunamis pose no real risk • However, several coastal plants are only slightly above sea level and a large tsunami could have a significant impact

13 The U.S. NRC Is Requiring Licensees To Begin Adopting New Post-Fukushima Requirements

• The NRC has begun to require that U.S. nuclear plants develop a 3 phased approach for “mitigating beyond design-basis external events” (EA-12- 049, dated March 12, 2012): ➢ Phase I – “The initial phase requires the use of installed equipment and resources to maintain or restore core cooling, containment and spent fuel pool (SFP) cooling capabilities.” ➢ Phase II – “The transition phase requires providing sufficient, portable, onsite equipment and consumables to maintain or restore these functions until they can be accomplished with resources brought from off site. ➢ Phase III – “The final phase requires obtaining sufficient offsite resources to sustain those functions indefinitely.” • These requirements include the development of an “overall integrated plan” which must be complete within 2 refueling cycles or December 31, 2016, whichever comes first

14 NRC EA-12-049 Has 5 Key Requirements For The Licensees To Implement 1. “Licensees or construction permit (CP) holders shall develop, implement, and maintain guidance and strategies to maintain or restore core cooling, containment and SFP cooling capabilities following a beyond-design-basis external event.” 2. “These strategies must be capable of mitigating a simultaneous loss of all alternating current (AC) power and loss of normal access to the ultimate heat sink and have adequate capacity to address challenges to core cooling, containment, and SFP cooling capabilities at all units on a site subject to this Order.” 3. “Licensees or CP holders must provide reasonable protection for the associated equipment from external events. Such protection must demonstrate that there is adequate capacity to address challenges to core cooling, containment, and SFP cooling capabilities at all units on a site subject to this Order.” 4. “Licensees or CP holders must be capable of implementing the strategies in all modes.” 5. “Full compliance shall include procedures, guidance, training, and acquisition, staging, or installing of equipment needed for the strategies.” 15 Presentation Outline

16 There Are 28 Proposed New Nuclear Reactors At 18 Locations In The U.S.A. (5 Different Reactor Designs)

Proposed New Reactor(s) Design Applicant Bell Bend Nuclear Power Plant U.S. EPR PPL Bell Bend, LLC Bellefonte Nuclear Station, Units 3 and 4 AP1000 Tennessee Valley Authority (TVA) Callaway Plant, Unit 2 U.S. EPR AmerenUE Calvert Cliffs, Unit 3 U.S. EPR Calvert Cliffs 3 Nuclear Project, LLC and UniStar Nuclear Operating Services, LLC Comanche Peak, Units 3 and 4 US-APWR Luminant Generation Company, LLC (Luminant) Fermi, Unit 3 ESBWR Detroit Edison Company Grand Gulf, Unit 3 ESBWR Entergy Operations, Inc. (EOI) Levy County, Units 1 and 2 AP1000 Progress Energy Florida, Inc. (PEF) Nine Mile Point, Unit 3 U.S. EPR Nine Mile Point 3 Nuclear Project, LLC and UniStar Nuclear Operating Services, LLC (UniStar) North Anna, Unit 3 US-APWR Dominion Virginia Power (Dominion) River Bend Station, Unit 3 ESBWR Entergy Operations, Inc. (EOI) Shearon Harris, Units 2 and 3 AP1000 Progress Energy Carolinas, Inc. (PEC) South Texas Project, Units 3 and 4 ABWR South Texas Project Nuclear Operating Company (STPNOC) Turkey Point, Units 6 and 7 AP1000 Florida Power and Light Company (FPL) Victoria County Station, Units 1 and 2 ESBWR Exelon Nuclear Texas Holdings, LLC (Exelon) Virgil C. Summer, Units 2 and 3 AP1000 South Carolina Electric & Gas (SCE&G) Vogtle, Units 3 and 4 AP1000 Southern Nuclear Operating Company (SNC) William States Lee III, Units 1 and 2 AP1000 Duke Energy

17 Most Locations Of Proposed New U.S. Nuclear Power Plants Are At “Brown Field” Sites

• The proposed locations for new nuclear power plants are mostly on existing nuclear sites • This approach provides a significant economic advantage compared to a “green field” site: - Site Licensing - Environmental Impact Studies - Skilled local work force - More Local Support

Image Courtesy of U.S. NRC

18 The U.S. NRC Currently Has Several Nuclear Reactor Design Certifications Under Review

• The NRC has significantly expanded its internal staff to accommodate the many design reviews and new license applications • While 2 recent combined construction/operating licenses (COLs) have been approved, the NRC has a large remaining workload in these areas 19 Small Modular Reactors (SMRs) Are Also Part Of The Developing U.S. Nuclear Power Industry

• Established and new U.S. companies are pursuing SMRs (images not to scale) ➢ Westinghouse: SMR Additional details from each company’s ➢ GE Hitachi: web site are provided PRISM in the Appendix

➢ Babcock & Wilcox: generation mPower

➢ NuScale Power: NuScale SMR

➢ Holtec International: HI-SMUR 20 Presentation Outline

21 Vogtle Units 3 & 4 (Southern Nuclear) Have Received NRC Approval For Construction & Operation

22 Vogtle Units 3 & 4 (Southern Nuclear) Completed Significant Earth Works Prior To COL License Approval

Image Courtesy of Southern Nuclear Operating Corporation

23 Vogtle Units 3 & 4 (Southern Nuclear) Have Completed Significant Milestones On Their Construction Schedule

24 V.C. Summer Units 2 & 3 (SCANA) Have Also Received NRC Approval For Construction & Operation

Image Courtesy of SCANA Corporation

25 V.C. Summer Units 2 & 3 Have Already Completed Much of The Non-Nuclear Construction Work

Image Courtesy of SCANA Corporation

26 V.C. Summer Units 2 & 3 Are Installing And Receiving Heavy Components

Images Courtesy of SCANA Corporation 27 Presentation Outline

28 Key Issues & Challenges For New Nuclear Power In The U.S.A.

• Public Acceptance – While nationally above 50%, acceptance/favorability varies by region or community across the country • Public Financing – Different financing models and requirements exist due to varying state laws regarding how costs can be recovered from the rate base • Government Financing – While the 2005 National Energy Policy Act provided for some load guarantees for the first new reactors, no approvals have been given thus far • Meeting Expectations – Most previous U.S. nuclear plants were over budget and over schedule; promises for new plant costs and schedules must be kept • Design Approval for New Reactors – There are only a few approved new designs, and none yet for Small Modular Reactors (SMRs)

29 Presentation Outline

30 There Are 10 Key Issue Areas For Newcomers That Cover The Total Lifecycle of Nuclear Power

➢ Each issue area will require planning, organizational development and human resources acquisition and development ➢ Each Issue Area Also has its own timeline, varying from a few months up to 60+ years ➢ Some degree of external support will be required in most areas

31 Human Resources Are Required In Each of The 10 Key Issue Areas, And Detail Planning Will Be Required • Identification of Staffing Requirements - Determine all of the individual jobs that must be fulfilled, across the nuclear power program (Regulatory Body, NEPIO, Construction, Commissioning, Operations, Decommissioning)

• Recruitment - Identify and target for recruitment those who will be able to meet educational, psychological, and security requirements

• Selection - Select highest qualified personnel in each area of expertise (operations, maintenance, engineering, etc.)

• Training - Develop and deliver training Corporate to the personnel who are selected Plant 4 Plant 3 Plant 2 • Qualification - Test/Qualify and re-test/ Plant 1 re-qualify personnel who successfully complete the training programs

32 Using Current U.S. Based Staffing Models, High-Level Estimates Include ~850 Personnel During Operations

• The staffing estimates shown here are based on current staffing models in the U.S. from Gen II NPPs, and are exclusive of: – Major contractor/vendor personnel, i.e. new NPP construction staff – Refueling outage support personnel

33 Issues Emerge When Maximum Staffing Levels Are Plotted For Each Year During The Complete Life Cycle

• Maximum staffing levels will peak between around 850 workers • Several working generations will be required during the full life cycle • There will be different human resources management challenges at the beginning, in the middle, and at the end of the NPP’s life cycle

34 Each of These Issue Areas Also Requires Organizational Development

• Initial Organizations will be high level, but further planning will be required • The IAEA has provided a sample Nuclear Energy Program Implementing Organization (NEPIO) model – it can be varied as needed • Other organizational plans must also be completed to early ensure the target organizations are realized: ➢ Regulatory Body ➢ Construction Organization ➢ Operating Organization • All of these organizations will require a detailed Human Resources Development Plan

35 Appendix – Small Modular Reactor (SMR) Details

• Westinghouse: Small Modular Reactor

• GE Hitachi: PRISM

• Babcock & Wilcox: generation mPower

• NuScale Power: NuScale SMR

• Holtec International: SMR-160 36 Westinghouse: Small Modular Reactor

37 GE Hitachi: PRISM

PRISM Sodium-Cooled Reactor

Turning Used Energy into New Energy. The PRISM (Power Reactor Innovative Small Modular) is GE Hitachi Nuclear Energy's next generation sodium-cooled reactor. The dynamics of using liquid sodium as a coolant instead of water allows the neutrons to have a higher energy that drives fission of the transuranics. This reaction produces heat energy, which is then converted into electricity by a conventional steam turbine. The PRISM reactor consumes transuranics in used nuclear fuel from water- cooled reactors, essentially turning waste into energy.

Features & Benefits

Passive design features, such as passive reactor core cooling, eliminate active systems and increase safety Simplified modular design allows factory fabrication and ultimately lower construction costsCoolant pumps have no moving parts, leading to increased reliability Simplified design eliminates valves and motors, increasing operational flexibility Alleviates storage burdens by consuming used nuclear fuel One PRISM power block generating 622 MW of electricity reduces annual CO2 emissions equivalent to taking 700,000 cars off the road

38 NuScale Power: NuScale

NuScale system details Thermal capacity – 160 MWt Electrical capacity – 45 MWe Capacity factor – > 90 percent Dimensions – 65’ x 14.5’ cylindrical containment vessel module containing reactor and steam generator Weight – ~ 400 tons as shipped from fabrication Transportation – Barge, truck or train Manufacturing – Can be forged and fabricated at any mid-size facility Cost – Numerous advantages due to simplicity, modular design, volume manufacturing and shorter construction times Fuel – Standard LWR fuel in 17 x 17 configuration, each assembly 6 feet in length; 24-month refueling cycle with fuel enriched less than 4.95 percent

Benefits of the NuScale technology Light-water reactor design is based upon existing knowledge base and known technology for both the industry and the NRC. Small, modular nuclear power plant that can increase size and capacity incrementally over time by adding modules at a multi-module plant. Owners can co-locate multiple units at one site – up to 12 units at single location. Simple design - passive cooling enhances safety. All manufacturing can be done in the U.S. at multiple locations. Shorter time from COL to COD. Online refueling provides for constant reliability and uptime.

Regulatory procedures and timeline Licensing – Requires federal U.S. Nuclear Regulatory Commission to approve Design Certification for reactor and Construction & Operating License prior to construction. The company is in the pre-application review phase with the NRC. Initial Operations – NuScale forecasts the first plant will go into operation in the early 2020s.

39 Babcock & Wilcox: generation mPower

40 Holtec International: SMR-160 (HI-SMURTM)

Reactor Overview:

The Holtec Inherently-Safe Modular Underground Reactor (HI-SMUR) is a 160 MWe reactor designed to provide an economical and safe source of clean energy from nuclear fission. The rated electric power output of HI-SMUR is enough to supply pollution free energy to 150,000 US households.

The design mission to ensure utmost safety and reliability under all conceivable threats of nature and of the kind visited upon mankind on September 11, 2001 has shaped the design embodiment of HI- SMUR for the post Fukushima age:

• HI-SMUR will benignly absorb the one-two punch of a mighty earthquake and a ferocious tsunami without the threat of overheating of its reactor core or its fuel pool or any risk of containment radiation release. In fact, a flood submerged HI-SMUR reactor will continue to reject its residual heat (that crippled Fukushima) to the ambient air, theoretically forever, without requiring a single watt of power.

• HI-SMUR's reactor core is located deep underground placing the nuclear fuel beyond the reach of terror.

• HI-SMUR incorporates the wisdom received from over six decades of reactor operations by placing all components known to be relatively susceptible to failures within easy access for ease of operation and preventive maintenance.

41 Thank You For Your Attention…..Questions?

IAEA…atoms for peace.