Westinghouse and the Nuclear Renaissance

The Westinghouse AP1000 – A technology solution for Slovakia

Mike Kirst Vice President Central and Eastern Europe Westinghouse

Slovak Nuclear Society Bratislava, Slovakia September 24, 2009 1 The Nuclear Renaissance Has Arrived ● However, it must not be forgotten that the Renaissance would not be possible without the continued safe and effective operation of the current worldwide fleet

● Capacity factors are up and safety-related occurrences are down, providing the most economic baseload generation in the world.

THIS IS BOTH A SHARED RESPONSIBILITY AND ACKNOWLEDGEMENT TO ALL OPERATORS AND VENDORS

Slovak Nuclear Society Bratislava, Slovakia September 24, 2009 2 Challenges We Will Face as an Industry

• Public Acceptance • Competitive Solution • Certainty – Performance – Schedule – Price • Regulatory and licensing • Financing • Risk management

Slovak Nuclear Society Bratislava, Slovakia September 24, 2009 3 Supply Management Challenges

● Abrupt, expanding demand; diminished supply chain ● Long lead times for specialty steel forgings, SG tubing ● Logistics of moving large components around the world ● Competition with supply to other industries and competitors

Standardized plant advantages - efficiency, lower costs: ● Opportunity to establish a learning curve ● Multiple standard plants = higher production volumes

Slovak Nuclear Society Bratislava, Slovakia September 24, 2009 4 Westinghouse Commitment and Focus on Leading-Edge Nuclear Technology ● The future renaissance is also dependent on the successful development of advanced plant designs, standardized, built on time and within budget, providing superior running costs ● Westinghouse has a long history in leading innovations of plant design and a philosophy of continuous investment and sharing of technology in new markets to drive successful projects all over the world ● This success is driven by our singular commitment to nuclear technology

Slovak Nuclear Society Bratislava, Slovakia September 24, 2009 5 Westinghouse Lead the First Renaissance and Prepared to Lead the Next

● Following the first commercial plant at Shippingport, Westinghouse designs have been the platform for each subsequent generation of designs ● Westinghouse has also lead the global introduction of commercial nuclear power through successful technology transfer programs: – France (Framatome/Areva) - Korea – Japan (MHI) - Brazil – Spain - China

Slovak Nuclear Society Bratislava, Slovakia September 24, 2009 6 AP1000 Units Under Contract

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Sanmen 1

Haiyang 1

Sanmen 2

Haiyang 2

Vogtle 3

Levy 1

V C Summer 2

Vogtle 4

Levy 2

V C Summer 3

Slovak Nuclear Society Bratislava, Slovakia September 24, 2009 7 Westinghouse in Europe ● Designer / Supplier of 25 nuclear units in Belgium, Finland, Slovenia, Spain, Sweden, Switzerland and the UK

● Supplying Fuel and Services to both Pressurized (PWR) and Boiling Water Reactors (BWR), Russian designed VVERs, the UK AGRs and MAGNOX plants

Slovak Nuclear Society Bratislava, Slovakia September 24, 2009 8 AP1000 Satisfies EUR

● AP1000 assessed against EUR, Rev. C, Volumes 1 & 2

● AP1000 Assessment detailed and thorough – Over 5000 requirements assessed

● EUR Certified in 2007

Slovak Nuclear Society Bratislava, Slovakia September 24, 2009 9 Central & Eastern Europe - Nuclear Landscape

LITHUANIA UKRAINE RUSSIA POLAND 1 RBMK 1300 2 VVER440 6 VVER440 MIN. OF ENERGY 13 VVER1000 8 VVER1000 NNEGC STATE OWNED 11 RBMK 1 BN600 4 GRAPH MOD BWR CZECH REPUBLIC ROSENERGOATOM 4 VVER440 STATE OWNED 2 VVER1000 CEZ/ 67% STATE ROMANIA OWNED 2 CANDU PHW NUCLEARELECTRICA STATE OWNED SLOVAK REPUBLIC 4/6 VVER440 BULGARIA ENEL 67% OWNED 2/4 VVER1000 NEC STATE OWNED

HUNGARY ARMENIA 4 VVER 440 1 VVER440 MVM STATE OWNED ARMATOMENERGO, STATE OWNED

Slovak Nuclear Society Bratislava, Slovakia September 24, 2009 10 New Build

● CEZ: Temelin 3 & 4 – 2019/2020 – 2026 (plus 3 plants) – Dukovany – Bohunice (Slovak Republic) ● Hungary: 2 units ● Poland: 6 units 2020 first unit ● Lithuania: 2 units 2018 ● Bulgaria: 2 units ● Romania: 2013/2014 (Candu Units at Cernavoda) – New greenfield units (non Candu) being assessed ● Slovenia: 1 unit

Slovak Nuclear Society Bratislava, Slovakia September 24, 2009 11 Simplification and Standardization are Key to Future Nuclear Plant Construction

● Simplicity and standardization in Design through reduced number of components and bulk commodities

● Simplicity in Safety through use of passive safety systems

● Simplicity in Construction through modularization

● Simplicity in Procurement through standardization of components and plant design

● Simplicity in Operation and Maintenance through use of proven systems and components, and man-machine interface advancements

Improved Safety, Competitive Economics and Good Performance

Slovak Nuclear Society Bratislava, Slovakia September 24, 2009 12 Slovak Nuclear Society Bratislava, Slovakia September 24, 2009 How AP1000 reduces investment risk 13 Slovak Nuclear Society Bratislava, Slovakia September 24, 2009 14 All Advanced Reactors Can Achieve Low Core Damage Frequency

● Evolutionary plants achieve goals by adding redundant safety features – 4 Train Safety Injection – 4 Train Decay Heat Removal INCREASED – 4 Train Containment Cooling CAPITAL AND – 4 Train Residual Heat Removal O&M COST – 4 Train Diesel Generators ● Passive Plants achieve goals by reducing active safety features – No safety related pumps – No safety related fans REDUCED – No safety diesels/no safety AC power CAPITAL AND – Small number of valves actuate passive systems O&M COST – Natural forces provide plant safety

Slovak Nuclear Society Bratislava, Slovakia September 24, 2009 15 AP1000 Provides Improved Safety

U. S. NRC Current US Utility AP1000 Requirements Plants Requirements Results

-5 1 x 10-4 (a) 5 x 10-5 1 x 10 (a) 5.1 x 10-7 (a) Core Damage Frequency per Year

Slovak Nuclear Society Bratislava,Note (a) CDFSlovakia includes random and internal hazard events from at-power and shutdown conditions. September 24, 2009 16 Simplification of Design Eliminates Components and Reduces Cost

50% Fewer 35% Fewer 80% Less 45% Less 70% Less Safety-grade Pumps Safety-grade Seismic Building Cable Valves Pipe Volume

Slovak Nuclear Society Bratislava, Slovakia September 24, 2009 17 Simplification - Smaller Footprint

Evolutionary PWR AP1000

Slovak Nuclear Society Bratislava, Slovakia September 24, 2009 18 Competitive Economics

500 Invest. Fuel O&M CO2 455 474 431 400 354 368 300 279 286 270 279 283 289

200 177 155 100 PLN MWh / 0

e Wind ck d iz d IGC 0 od a ze e C R o ze z T Straw i i C EP 00 W + b p uidd didi r uidized GC e fl fl fl u AP1 ind ulver l ulv coal W p p nite d g coa ar as oal H c rd ge Li l g a gnite H lud Li s Hard .+ Natura

H.c Courtesy – Ministry of Economy (Poland)

Slovak Nuclear Society Bratislava, Slovakia September 24, 2009 19 Thank You

Slovak Nuclear Society Bratislava, Slovakia September 24, 2009 20