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Welcome and Logistics
Carol BerriganSr. Director, Industry Infrastructure
Nuclear Energy Institute
Welcome and Logistics
George FletcherExecutive Director, New Carolina
Keynote Address
Honorable Lindsey GrahamU.S. Senator
Keynote Address
Ronald A. JonesSenior Vice President,
Nuclear Operations and Chairman, Carolinas Nuclear Cluster Initiative
Duke Energy
Why Nuclear?
• Clean-Air Electricity• Proven Technology • Cost Effective Baseload Generation• Good for Our Communities
Clean–Air Energy
• Zero emission generation- currently produces 20 percent of our nation’s electricity
• Value of Environmental Benefits — annually the 104 nuclear plants in the U.S. save …– 1 million short tons of nitrogen oxides and 3.1
million short tons of sulfur dioxide = taking more than 51 million passenger cars off the road!
– 681 million metric tons of carbon dioxide. Almost as much as is released from all U.S. passenger cars!
Proven Technology
• Today’s nuclear plants are safe and reliable
• Over 3 decades of commercial nuclear power experience
• New plant technology builds on what we operate today– evolutional, not revolutional
Cost Effective Baseload Generation
• Nuclear provides about 20 percent of our US electricity needs today
• Need for power- additional 260 gigawatts by 2030
• High & volatile natural gas prices• Increasing cost of coal/transportation• Average nuclear production costs have declined
more than 30 percent in the last 10 years
Good for Our Communities!
• Annually an average nuclear plant generates …– jobs in our communities!– $430 million in sales of goods and services in the local
community – nearly $60 million in total labor income– total state and local tax revenue of almost $20 million to
benefit schools, roads, and other state and local infrastructure– although not a local benefit, federal tax payments of roughly
$75 million• Every dollar spent by the average nuclear plant results in the
creation of $1.07 in the local community • Nuclear plant employees give back to their communities!
Carolinas Nuclear Cluster
• New Carolina– South Carolina’s Council on Competitiveness
• 22 leading companies and institutions across NC and SC
• One of 18 active cluster committees• Carolinas Nuclear Cluster focused on:
– Workforce– Public policy– Economic development
Market Outlook
Adrian HeymerSr. Director, New Plant Deployment
Nuclear Energy Institute
New Nuclear PlantsGlobal Status (Jan 2008)
• 35 plants under construction ~ 28 GW• 93 plants on order or planned in 18 countries
– Expected to be in operation by 2017• 200 projects under consideration in 27 countries
– Statement of intent/proposal• Media reports US Navy production expansion to
two Virginia class submarines per year in 2012– Reactor equipment orders in 2010– Additional equipment orders for nuclear aircraft
carriers periodically
Source WNA Jan 2008
Potential New Nuclear Plants
Short-Term
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
COL review
Order long-lead items
Construction
Site preparation
Arrange financing
COL Approval
Load fuel
COL submitted
Start-up testing (4-6 months)
Commercial operation
Pre-COL construction
General procurement
Licensing & Construction Then and Now
Plant designed before construction beginsDesign as you build
More opportunities to intervene at well-defined points in process. Intervention at the end of the process must be based on objective evidence that acceptance criteria, defined in the license, have not been, and will not be met
Main opportunity public intervention when plant is essentially complete
Lessons learned from overseas projectsModular construction practices
Inefficient construction practices
Standard NRC-certified designs – 70+% StandardNo design standardization
More stable process: NRC approves site, design, construction & operation before construction begins and significant capital is placed “at risk”
Changing regulatorystandards and requirements
NOWTHEN
US Commercial Outlook to 2020
• First 4 – 8 plants expected to start commercial operations in 2016– Others under construction– Building rate and projects adjusted based on
the success of the first few projects
• Potential for new plants – 15 - 20 in 2020; 35+ in 2030– If first projects are successful
Equipment & Commodities for First Eight Plants (Examples)
• Control & power cable – over 1800 miles• Nuclear grade valves -- Over 11,000 • Pumps -- 1400 to 2200 • Nuclear grade piping – 30 – 150 miles• Concrete – over 3 million cubic yds• Electrical components -- Over 700,000• Structural & reinforcing steel -- 500,000 tons
approx.• Large and small heat exchangers -- 500 to 1300 • Fasteners -- 320,000
Support for New Nuclear & Expanded US Manufacturing Base• Bipartisan political support• Strong public support• Solid support from labor• Strong support from other industries• Growing support from environmental
community– Increasing concern about carbon emissions
The Future
• New nuclear power plants will be built– Need for power, environmental limitations and
need for long-term stability in electricity prices
• Strong policymaker support– High potential for incentives for US
manufacturing sector
• Opportunity is there -- will US-based manufacturers be able to take advantage?
What Does a Nuclear Project
Look Like?
Duane OlscvaryGeneral Manager,
WBN Unit 2 Procurement Tennessee Valley Authority
TVA Nuclear Experience
• Watts Bar Unit 1– Last U.S. Nuclear Unit to License (Appendix B)
– Commercial Operation in 1996
• Browns Ferry Unit 1– Last U.S. Nuclear Unit to Come Online (2007)
– 60 months, $1.8 billion
TVA Nuclear Experience
• Watts Bar Unit 2– Only U.S. Unit Currently Under Construction
(Appendix B, ASME Section III)
– 1180 MWe, Westinghouse PWR
– Project Estimate 60 months, $2.5 billion
– Prime Contractor Bechtel (EPC scope)
– Westinghouse NSSS Refurbishment
– Siemens T/G Refurbishment
A Successful Nuclear Project
• An Effective Plan:– A Detailed Scope of Work
– A Detailed List of Required Equipment and Materials
– An Integrated Project Schedule• Equipment and Material Prioritization, Required
Delivery
• Required Project Contracts
The Participants
• The Owner(s)
• Original Equipment Manufacturer (OEM)
• The Contractors
• The Qualified Equip/Material Suppliers
• The Regulators
• The Public
Project Estimation: A Sample
• Browns Ferry 1:–1,800,000 feet of cable
–10,000 instruments
–53,000 feet of small bore pipe
–33,000 feet of large bore pipe
–243,000 feet of conduit
–12,000 feet of cable tray
–238,000 electrical terminations
Project Schedule: An Example
• Pre-Project Execution:– Project Estimation Complete
– Supply Chain Plan Approved, Executed: • Approved Suppliers Identified, Qualified—and Engaged
• Project Storage and Logistics Plan Ready
• Long-lead Items Identified and Ordered
• Strategic Procurement Plan Ready (Commodities)
– Prime Contracts Negotiated and Executed:• Sub-contracts Identified and Prioritized
Project Schedule: An Example
• At Project Start:– Project Controls in Effect:
• Project Cash Flow Managed to Approved Plan
• Contractor Key Performance Indicators Measured and Managed
• Supplier Performance Measured and Managed– Delivery Accuracy
– Quality (Material and Documentation)
– Nonconformance Reporting
Lessons Learned From Several Projects
• Allow Ample Time For Project Contracting • Consider All Economic Ordering Options• Supplier Partnerships Can Benefit
Everyone• Increased Supplier Surveillance For Critical
Items• Conduct An In-depth Labor Assessment
What You Can Do
• Understand Your Capabilities—And Make Sure Others Know
• Engage Active Nuclear Supply Chain Groups, Owners, and Prime Contractors
• Expand Your Capabilities
• Don’t Wait Too Long
The Opportunity Before Us
• A Generation of New Nuclear Generation
• Growth of U.S. Infrastructure
• The Right Solution to Baseload Power Needs—Clean Air Energy.
New Plant Vendor/Supplier Meeting Quality
Assurance Program Requirements
James Fisicaro, NEIClayton Smith, Fluor
Marion Smith, STP NOC
Impact of Nuclear QA
on Suppliers
Jeff KikelManager, Welding Engineering
The Babcock & Wilcox Company
1
NEI Manufacturing Outreach Workshop Columbia, SC. March 27, 2008
Good morning. I would like to thank the Nuclear Energy Institute for providing me the opportunity to share with you some insights on the impact of commercial nuclear quality assurance on suppliers of nuclear components, materials and services. My presentation will focus on discussing what is required to supply nuclear qualified, safety related components. Some aspects of my discussion are equally applicable for components or materials that are considered balance-of- the-plant.
I am employed by Babcock & Wilcox Nuclear Operations Group, Inc., a wholly owned subsidiary of The Babcock & Wilcox Companies. The Babcock & Wilcox Company, also known as B&W, was formed in 1867 by Stephen Wilcox and George Babcock. Eleven years earlier, in 1856, Stephen Wilcox patented the water tube boiler. This invention provided for the rapid development of a commercial supply of electricity and was a major factor in the industrial revolution. Ever since the early days, B&W has been a leader in the design and manufacture of power generation equipment. In the 1940’s the Company participated in research projects aimed at developing viable nuclear power systems for naval applications and in the 1950’s participated in the design and manufacture of the power system for the world’s first nuclear powered submarine, the USS Nautilus. In 1956 the Company designed and built the first privately licensed commercial Critical Experiment Laboratory and began operations at the Lynchburg Research Center, the first privately financed US nuclear facility. In 1962 we designed and furnished reactor systems for the first commercial reactor using Highly Enriched Uranium 233. B&W was a major supplier of reactor equipment and steam generators from the 1960’s and into the 1980’s when a substantial portion of today’s North American commercial nuclear power generation capacity was developed. Today the Company serves a broad spectrum of energy related markets and continues our 50 plus year record as a premier designer and manufacturer of heavy equipment and fuel for nuclear systems. Notably, B&W is the only North American company to continuously manufacture nuclear steam generators for the industry since the 1950s. B&W has supplied the nuclear industry with over 1,300 large, heavy‐walled vessels worldwide. With dedicated manufacturing operations in the U.S. and Canada, B&W has the skills, knowledge base and infrastructure for fabricating pressure vessels, reactors, steam generators, heat exchangers, drive mechanisms, and other auxiliary equipment. Though many nuclear businesses lost their manufacturing proficiency as a result of the decline in the commercial nuclear market, B&W kept its sites operational by strategically using its capabilities to develop products for the government as well as other customers.
Our long history allows us to share with you a solid perspective of how to successfully operate in an industry that requires a high level of discipline in all related activities. The design, manufacture, construction and operation of commercial nuclear power plants are highly regulated activities. Properly executed, these activities provide a highly reliable, safe, clean and affordable source of commercial power. Properly managed these can also
2
provide substantial financial returns for those that choose to participate. Properly led, society as a whole will benefit.
In order to qualify as an “N” stamp supplier of equipment and services to the commercial nuclear market requires implementation of a quality assurance program that meets the requirements of ASME Section III, Subsection NCA, Article NCA‐4000 and NQA‐1. Additionally, NRC 10 CFR Part 50 Appendix B provides the regulatory framework for quality assurance for the licensing of production and utilization of nuclear facilities and any components, equipment, materials, or other goods or services, that relate to a licensee's or applicant's activities . The NRC endorses NQA‐1‐1983 in regulatory guide 1.28. NQA‐1 is the only US standard specifically developed for commercial nuclear quality assurance. The standard reflects industry experience and the current understanding of the quality assurance requirements necessary to achieve safe, reliable and efficient use of nuclear power. NQA‐1 covers eighteen specific quality assurance requirements including items such as design control, control of purchased items and control of special processes, inspection, quality assurance records and audits.
These standards are focused on meeting the overall requirements necessary to ensure the safe use of nuclear power and as a result substantially increase the burden on nuclear suppliers as compared to generic quality assurance standards such as ISO 9001. In a November 2002 letter to the NRC, ASME provided its perspective on the use of ISO 9001 as a replacement to the 10 CFR Part 50 Appendix B and NQA‐1 requirements. ASME cautioned that although ISO 9001 may be initially appealing, ISO 9001 is a management or process standard and not a safety related standard. Requirements in NQA‐1 are more definitive than ISO 9001 in areas such as design controls, independence of design verification, software controls, configuration control, audits and training, qualification and evaluation of personnel.
No other industry is more scrutinized or contested by the public than nuclear power. In Joseph Rees’s book titled “Hostages of Each Other, the Transformation of Nuclear Safety since Three Mile Island” the Institute of Nuclear Power Operations’ board of directors chairman was quoted as stating “Each licensee is a hostage of every other licensee”. In the US a single catastrophic failure at any nuclear power plant would destroy the entire nuclear industry and undermine any public support of nuclear power. We have all read newspaper accounts of nuclear facilities where lapses in values have resulted in potential equipment or system failures, and each of these events resulted in an increase in the negative perception by the public, not to mention the risk of a significant nuclear accident. As a nuclear supplier, quality and compliance to requirements cannot be comprised.
In making a decision about participating as a nuclear supplier one must first fully recognize the significance of the responsibility that must be accepted and the potential consequences of failure to properly execute, manage and lead. Seemingly minor failures can ultimately lead to dire consequences with devastating potential. The primary mission of those
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engaged in this industry must be to safeguard the public, the environment, the national security, the international relations, the employees and the investors alike. Such a responsibility suggests that only those truly committed to excellence should apply.
Proper execution and management of all activities depend first and foremost on leadership. Although leadership can be described or defined in many different ways, effective leadership results in an organization which reflects the values and commitment of its leaders. Leadership establishes the principles under which the organization will behave. Leadership determines the minimum standards which will be accepted by the organization. Leadership establishes the clarity of the direction in which the organization will move and the pace at which it will travel.
In the commercial nuclear industry effective leadership is essential to assure that the mission is always known, understood, embraced and accomplished. Our experience suggests that there are number of essential characteristics that effective leaders must possess in this business. Their behavior will always demonstrate ownership and personal accountability. Their behavior will further demonstrate that:
They do what is right even when it hurts; they place the success of the mission ahead of personal, financial or other goals.
They passionately pursue, promote and expect continuous improvement and a relentless pursuit of excellence of their operations.
They recognize that humans are fallible and even the best err; they promote organizational structures, systems, procedures and behavior that defend against error and minimize the effects of error.
They value diversity of thought and welcome dissenting opinions as they seek to understand the basis and what is meant not just what is said.
They encourage identification of organizational and system weaknesses and promote the reporting of non conformance.
They nurture a culture that is open to oversight and critique recognizing that this is a key element in the pursuit of excellence.
They devote resources necessary to assure that specification requirements are known and understood.
They place high value on training and development and recognize that the success of the organization and the accomplishment of the mission is a function of the education, experience, talent and dedication of the individuals involved.
They are intolerant of behavioral choices that do not comply with these requirements.
4
They do not tolerate normalization of deviation and act to ensure that complacency does not take root.
And finally, they exhibit and demand the highest level of integrity in word and action.
In a moment I will move on to some more tangible aspects of operating in the commercial nuclear environment. Before I do however I want to acknowledge that the leadership characteristics that I have discussed are ones that most would agree should be common tenets of leadership regardless of the mission. However, most individual and organizational failures do not rise to the same level of potential consequence. If one chooses to participate in the nuclear arena, one must be fully prepared to provide this type of leadership; anything less is to ignore the mission.
Now, I would like to provide you with some specifics needed to effectively operate in the commercial nuclear industry. The first area I would like to discuss in more detail is the infrastructure needed to support a commercial nuclear quality assurance program.
The quality assurance organization which supports the construction of commercial nuclear products must be independent from, and have equal authority to the design and manufacturing organizations. A nuclear industry quality system is driven by the Quality Manual which defines the delineation of roles and responsibilities at the highest levels of the organization. The Quality Manual is a requirement of the ASME Code and converts the Code and NQA‐1 requirements into your organization’s quality system. The Quality Manual requires approval by an independent authorized nuclear inspection agency, such as Hartford Steam Boiler. Once the Quality Manual is in place, the high level roles and responsibilities must be further broken down into policies, procedures, and work instructions that direct and control the day‐to‐day activities required to design, manufacture, inspect, and ship components.
A strong and well‐constructed quality system will not succeed without developing a culture that consciously designs and manufactures your product with quality at the forefront of all activities and decisions. Simply having a quality control department that inspects and tests product features will not achieve the quality levels demanded by the commercial nuclear industry. The quality focus must be integrated into all activities every minute of every day. A quality conscious culture must also encourage and accept a questioning attitude and open communication throughout your organization. Each of your employees must feel they can speak up with a dissenting view, quality concern or error without fearing reprisal.
5
A commercial nuclear based quality system must establish strong controls to meet the stringent requirements for document development, document control, and retention of documents and records. The document control system must address both the generation of the original document and the control of subsequent revision of the documents to design, manufacture, inspect, and test your product. Traceability of a specific activity to a specific revision level of documents is paramount to a successful quality system. Detailed record keeping and configuration management are fundamental to the successful operation of your business. Quality records document nearly all phases of production including the design, material procurement, fabrication and testing. Without proper certification, a piece of material is rendered useless. Detailed fabrication travelers follow each production component and document signoffs at each stage of the production and inspection phase. All testing operations require test plans and test reports. A major component can easily generate in excess of 10,000 pages of quality records. Additionally, a records retention system must be established to retain the records as required by contract. Some typical documents requiring such controls are the Code Design Data package, procurement documents, manufacturing documents and records, and inspection and test results.
When product deviations or deficiencies occur, the quality system has to be structured to thoroughly evaluate and document the impact of the deficiency as well as capture and disseminate lessons learned from the deficiency. Commercial nuclear quality systems require technical evaluation of the deviated condition, identification of cause and corrective action for the condition, and preventive actions to avoid future recurrence of the condition. Follow up actions to determine the effectiveness of corrective actions are also a key element of the quality system. Trending of deficiencies along with cause and corrective action data becomes a tool for your continuous improvement program.
The commercial nuclear industry imposes stringent requirements for the qualification of personnel performing inspection and testing activities. For example, to qualify as a level II radiographer requires upwards of 600 hours of documented experience over three years in addition to minimum training requirements and qualification testing. Not only must your personnel be qualified to strict industry standards, but maintenance and possible requalification of those personnel are also required. The maintenance of personnel qualifications can be demonstrated by performing the qualified inspection or test during a defined time frame or requalification is required. Level 3 Examiners must be developed to administer the qualification of Level 1 and Level 2 personnel. The Examiner also has duties to perform periodic overchecks of the Level 1 and Level 2 qualified personnel. The number
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of available people with commercial nuclear NDE experience is limited which may require you to sublet some or all of your NDE until documented experience is obtained by your employees. Similar to personnel qualification, a formal gage management system is needed to manage calibration and usage of gages and tools used for acceptance inspections and tests.
In his book Quality Without Tears, Phil Crosby postulates that “quality is free” and zero defects are achievable. While this philosophy is true, the quality system to support commercial nuclear design and construction is NOT free. The staffing level and infrastructure for a nuclear industry quality system must be larger in number, well‐trained, and more technically qualified than a comparable quality assurance organization for a non‐nuclear facility.
The second area I will discuss with you in more detail is the human resources side of your organization. Even with a commercial nuclear quality system, your ultimate success in the commercial nuclear market will come down to the people in your organization and their willingness to embrace and implement the changes I am outlining to you today.
As most companies are acutely aware, skilled craftsmen and engineering professionals are becoming harder to find and it is expected that this shortage will worsen as the baby boom generation starts to retire in large numbers. Retaining your current employees will become a challenge as companies start competing for the available talent. Probably the most significant challenge you will face is staffing your company to support your nuclear quality assurance system. We are already experiencing this competition for human resources today and the commercial nuclear renaissance is still in its infancy. A successful nuclear quality assurance system must have a strong and extensive training program. In addition to initial employee process and qualification training, recurrent mandatory training that includes reiteration of the company’s quality culture, values and employee expectations must be incorporated into the program. The value of this recurring training cannot be overstated in maximizing your long term success in this business. Each employee must be acutely aware of the consequences of noncompliance and substandard workmanship in your products. Incorporation of lessons learned from other critical component failures or near misses such as the NASA Challenger Launch Decision, Davis Bessie Reactor Head Corrosion Incident, as well as others should be incorporated into your training programs to provide real world examples of how even highly regulated and controlled operations are not immune to failure and can have disastrous consequences. Each person in your organization must feel they are personally responsible for the quality
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of their work and the product your organization supplies to the commercial nuclear industry. Quality concerns must be promptly investigated and formal documented responses should be provided to the employee raising a concern. And legitimate concerns must be quickly and formally addressed while the reporting of errors must be positively recognized in order to reinforce and ingrain the desired nuclear quality assurance culture. And finally, I would like to provide you with some insights to barriers that can impede your success. For a company entering into the commercial nuclear market, it is critical to understand the barriers that must be overcome on the path to becoming a commercial nuclear component, material or service supplier.
In order to be successful in the commercial nuclear supplier environment, all sectors of the business must have a solid understanding of the requirements that their organizations must meet. These requirements which have been previously discussed may easily exceed 10,000 pages of text including administrative, regulatory and technical requirements. It is therefore critical to establish key organizations and key staffing to understand the body of requirements. Understanding the requirements imposed by the contract and the regulations is the key to compliance. The understanding of requirements must permeate throughout your organization, beginning with the proposal process, carrying through material procurement, fabrication, testing and acceptance by the customer and concluding with contract closeout and records retention. Proceeding with a “Business As Usual” culture is a sure fire way to find your business wounded in a mine field. Countless pitfalls exist; to illustrate my point is the simple breaking of a fluorescent light bulb in the manufacturing shop. In a nuclear quality assurance system this breakage may bring your production process to a halt due to concerns with mercury contamination. Recovery can involve costly testing programs to prove the component has not been degraded or worse yet the solution may be to scrap and replace the item. In most other industries the breakage of a fluorescent bulb would not get a second thought relative to component quality.
Both of these barriers have highlighted the importance of providing resources to support the increased overhead requirements. There is significant investment required in human capital to design and implement the systems and controls required to successfully design and construct nuclear components. Do not underestimate the need for people as you enter into this business. In your drive to succeed and to meet your financial and production goals caution must be exercised in trying to do more with less so as to not compromise product quality and requirement compliance.
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With quality paramount in this business, another barrier to success is oppression of communications. When production or quality issues arise, management must exercise great care in their reaction to the issue. If the reaction is one of anger, blaming, and negativity, it can promote a culture of oppression and secrecy which is highly counterproductive. Management must therefore strive to resist blaming and punishment and seek to understand the underlying reasons why things have gone awry. Failures should be viewed as milestones to strength rather than opportunities for punishment. Another potential pitfall that your business may experience is a gap between what the written procedure states and what actually occurs in the execution of day‐to‐day activities. This is known as the “work as perceived versus the work as performed gap”. Open communications and gaining employee input during development of the quality system can reduce this gap. Ongoing involvement of your management team in the daily activities can also be used to reduce this gap and insure procedure compliance. At Toyota, where their quality is world renowned this process is known as “genchi genbutsu” which means “go and see “.
As a goal, authority should be pushed down to the lowest practical level of the organization. If one places the responsibility for a process or product with an individual process owner, then the authority to change and improve that process should also be granted. And finally, I would recommend that your organization consider using Human Performance Improvement techniques developed by INPO, the Institute of Nuclear Power Operations, to help you reduce the number of errors as you develop and implement your nuclear quality system. These techniques can be used to identify error likely situations, and latent organizational weaknesses which can lead to human errors. INPO has successfully utilized Excellence in Human Performance principles in the commercial nuclear industry to drive down the annual average significant events since INPO’s inception in 1978 to levels previously thought unattainable. In closing, I would encourage your organization to take advantage of the opportunities that will develop as the nuclear energy renaissance grows. The commitment to developing the systems and staff to meet the demands of a commercial nuclear supplier cannot be overstated. Leadership, culture and values cannot be changed overnight, and there are no shortcuts. Your leadership team and employees must be committed for the long term.
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However, when properly developed and implemented, the combination of solid systems and talented, trained staff will increase the likelihood of your success as a nuclear component, material or service supplier.
State Initiatives
David LogsdonChief Operating Officer
South Carolina Department of Commerce
Conclusions
Brian ReillyPrincipal Vice PresidentManager, Operations
Bechtel Power Corporation
Conclusions…& Beginnings
• Support for new nuclear power is strong• The market in the U.S. is viable and has
growth potential• Today’s nuclear industry is better focused
on certainty of outcome• Quality is a key component for success
Lunch
Reactor Design Panel
William A. Fox IIIVice President, Construction and
ProcurementAreva NP New Plants Deployment
AREVA’s 2030 Scenario: Construction or LifeExtension of More than 500 GWe of Nuclear Power
2006 2030
GWe net installed
Theoretical end of life
Life extension
Newconstruction
267
186
635
372
344
AREVA Seeks to Deploy its Range of Reactors
Europe N. America Asia Africa World
New installed nuclear generating capacity after 2006by geographic area
(2007 - 2030)
0
50
100
150
200
250
300
350
400
2007 2009 2011 2013 2015 2017 2019 2021 2023 2025 2027 2029
GWe Net
0
50
100
150
200
250
300
350
400
Our Goals
• We will:
– Manage multiple large projects on an international scale
– Meet industry requirements
– Satisfy demand from new customers
“We expect to deliver 30 to 40 new power plants by 2020 all
over the world”
AREVA Vision: Share with more suppliers
• A new generation of suppliers for a new generation of reactors
– Increase the capacity of the current supply base / add new suppliers
• Long-term partnerships will be developed with suppliers in order to:
– Offer competitive solutions worldwide to our customers
• INTERNATIONAL PROJECTS
– Respond to national localization programs
• DOMESTIC PROJECTS
Involve Suppliers in a Continuous Improvement Approach
• Stimulate supplier creativity through contracts focused on quality, cost and delivery objectives
• Encourage active supplier participation in co-development initiatives
• Develop and formalize long-term partnerships
– Including multi-project agreements
40 to 60 billion dollars at stakefor EPR suppliers through 2020
We need you…
Reactor Design Panel
Stephun CliverVice President, Supply Chain Nuclear Plant
ProjectsGE Hitachi Nuclear Energy
GEGE--Hitachi Nuclear Hitachi Nuclear EnergyEnergy
Stephun E. CliverStephun E. Cliver
Supply Chain Vice PresidentSupply Chain Vice President
Nuclear Plant ProjectsNuclear Plant Projects
•Operating in 100+countries … 125+ years … 300,000+ employees worldwide … 2006 Revenue $163B•Operating in 100+countries … 125+ years … 300,000+ employees worldwide … 2006 Revenue $163B
Structured For Growth … The “New GE”
Infrastructure Industrial
Commercial FinancialServices
NBCUniversal Healthcare
ConsumerFinance
• Energy•GEH Nuclear
• Oil & Gas• Water• Energy Fin Svcs• Aircraft Engines• Rail• Aviation Fin Svcs
• Consumer & Ind.• Equip Svcs• Plastics• Silicones/Quartz• Security• Sensing• Fanuc• Inspect Tech
• Network• Stations• Entertainment• Universal• Sports/Olympics
• Diagnostic Imaging• Clinical Systems• Info Technology• Services• Bio Sciences
• Insurance• Leasing• Real Estate• Corp Fin Svcs• Healthcare Fin Svcs
• Europe• Asia• Americas• Australia /
New Zealand
ServicesTubes
Powder &Components
Tubes, Powder &
Components
Marketing JV
Kurihama, Japan (GNF-J) Wilmington, NC USA (GNF-A)
Juzbado, Spain (ENUSA)
Tubes, CANDU Fuel
Toronto,Peterboro, Armprior
SJ/VallecitosTraining Center
EngineeringHot Cells
Nuclear HQGNF
Nuclear’s Global Footprint~2500+ employees
Morris Custom Fab
Nuclear Fuel• BWR & Candu Fuel• MOX Fuel• Fuel Engineering Services
Nuclear Power Plants• ABWR• ESBWR• Next Gen / Hydrogen
Nuclear Services• Reactor & Field Services• Performance Services• Medical Isotopes & Nuclides
GEH Nuclear Energy …Profile
ABWR ESBWR
New Unit Platforms
• 1350MWe Net• Certified in USA, Japan and Taiwan• Built in 39 months (1st pour to Fuel)• Global Supply Chain in place• Licensed design to Toshiba & Hitachi• The only Gen 3 design in operation• Japan � Taiwan � US � Other…
• 1520MWe Net• Simplified, passive design• Natural circulation• ~20% cost reduction• Improved Safety & Security• Lower Dose / Reduced Rad waste• US � UK � Other…
• Contracted for long lead items• COL application submitted• Full contract negotiations underway
• Contract for long lead items• Full contract negotiations underway
• Selected ESBWR technology• Contract for long lead items
New Unit Update - Customers
• UK licensing proceeding on schedule• Multiple utilities in support
Dominion
Entergy
Exelon
UK
Parts(Debris Strainers,
Motors, Valves, CRD, CRB’s, Parts
Inventory Management)
Water& Chemistry
(TEPCO Flowmeter, NobleChem, Autocatalytic Recombiners)
Uranium Supply(Uranium Enrichment and Supply, Uranium
Management)
Steam Turbines(Main Steam
Turbine, Turbine
Services)
Financial Services
(EFS)
ESBWR/ABWR Technology Cross-Flow
Optimization & Controls(Mark VI, γ
Thermometers, OC Solutuons)
Inspection & Outage
Services(Multi-Bundle Fuel
Mover, Training Facility, Startup)
Core Optimization(N-Streaming, e-
Prometheus, AETNA)
“Digital” Plant(Simulation
Assisted Engineering, e-Configuration Management)
Fuel(GNF-4, Debris
Filters, Channeled Fuel)
Nuclear Vertical
New Plants• ABWR• ESBWR• Control Systems
• ST (50 & 60 Hz)• Generators
Power Gen Energy Svcs Nuclear
Nuclear Fuel• BWR• CANDU• Components• Container IP
Fuel Engineering Services• Core Design• Reload Optimization• Technical Services
• Outages• Mods & Repairs• Inspection Services
Field Services
Performance Services
• Outages• Mods & Repairs• BOP Services
• BOP
• Power Uprates• Water Chemistry• Control Systems• Technical Services
• ST Gen Upgrades• I & C• ST & Gen M&D• BOP M&D
• Economic Analysis• Grid Analysis
Parts
• Control Rods, Drives & BOP
• ST & Gen• BOP
Plus Water, Security, Financing & Healthcare
ESBWR Procurement NeedsHeat Exchangers
PCCSICS
Turbine Island Condensers/Exchangers
• Numerous Exchangers throughout Nuclear Plant
• Estimated # = 56
• Different Metallurgies
Valves
Safety Relief Valves
Squib Valves
• Numerous Valves throughout Nuclear Plant
• Estimated # = ~14,000
• Different Metallurgies
1
23
4
6 5
79
10
8
ESBWR Procurement Needs
DCIS, Control Room• DCIS characteristics: High reliability, tight control, stronger HFE
• Safety & Non-Safety Related Systems
• Greater Diversity
• 40,000 points
ESBWR Procurement Needs
Concrete/Structural• Emphasis on Modules –Base Mat, Drywell, Pool Liner, etc
BIMAC Concrete/Rebar Containment
ESBWR Procurement Needs
Modularization
• Need for Ultra Large Cranes, Ocean Going Vessels, Transporters
• Large Haul Equipment: Reactor, Reactor Internals, Turbines, Generator, Modules, Gantry Cranes
• Module fabricators, factories needed, location critical
Reactor Pressure Vessel
Reactor Internals Cranes, Pressure Vessels, Turbines, Etc
ESBWR Procurement Needs
ESBWR Procurement Needs
Miscellaneous Equipment
• Numerous Miscellaneous Equipment:
Fuel Systems
Instrumentation
Pressure Vessels
Cranes – TI, RB, FB
Nuclear Doors & Hatches
Quenchers/Strainers
Inclined Fuel Transfer
Incore Instrumentation
Standby Liquid Control
E S B W R
C o n t a i n m e n t
R e a c t o rP r e s s u r e
V e s s e l
C o r e
F l e x i b l e C a b l e s
S R N MA s s e m b l y
Your Important Part in ESBWR…..
• Support Quoting Activity
• Provide Design Engineering Support
• Provide us Your Ideas to Minimize Costs
• Work with GEH and EPC Partners
• Be More Than Just a Supplier
• Be Patient
Reactor Design Panel
Joe HutterVice President, NSSS Components and
Nuclear ServicesMHI Nuclear Energy Systems
March 27, 2008Mitsubishi Heavy Industries, Ltd.
Mitsubishi US-APWRNEI Manufacturing Outreach Workshop
1. MHI Nuclear Capabilities2. US-APWR Overview3. Possible US-APWR Construction Schedule4. Mitsubishi’s Infrastructure Requirements
for US-APWR
CONTENTS
1. MHI Nuclear Capabilities
Mitsubishi has accumulated extensive experience in the supply of reliable products and services in the areas of:
PWR Nuclear Power PlantsDesign, Manufacture, Construction, Maintenance/Repair Services
Nuclear FuelPWR Fuel, Advanced Reactor Fuel, Non-Fuel Core Components
Advanced Reactor PlantsFast Breeder Reactor, High Temperature Gas Cooled Reactor, Nuclear Fusion Reactor
Nuclear Fuel Cycle Equipment/ComponentsSpent Fuel Reprocessing Facilities, Waste Disposal System Equipment, Radioactive Material Transport Cask, Uranium Enrichment Device
Mitsubishi: Experience
Takasago Machinery Works
TOKYOKOBETAKASAGO
Kobe Shipyard&Machinery WorksMitsubishi Electric Corporation
Takasago R&D CenterMitsubishi Nuclear Fuel
Nuclear Energy Systems Headquarters
TOKAI
Nuclear Steam Supply System Design and Manufacturing
Nuclear Power Training Center
Research&
DevelopmentNuclear Fuel
Manufacturing
Electrical Equipment Design and Manufacturing
Nuclear Energy Systems Engineering Center
Turbine System Design and Manufacturing
TSURUGA
Operator Training Services
Nuclear Development Corporation
Research & Development of nuclear fuels
Planning and basic design of nuclear plants
Mitsubishi Nuclear Organization
TOKYO
YOKOHAMA
KOBETAKASAGO
TSURUGA P/S
MIHAMA P/SOHI P/S
TAKAHAMA P/S
GENKAI P/SSENDAI P/S
IKATA P/S
TOMARI P/S
In Operation
Under Construction(3 loop PWR)
22
22
22
223
3333
33
3
3
44 44
4
4
4
44
NNumber of Loops
Under Licensing(APWR)
Mitsubishi has constructed 23 PWR NPPs.The 24th PWR plant is under construction.A twin APWR is under licensing.
MHI PWR Plants in Japan
Construction Schedule of Japan PWR
Construction
F/C : First ConcreteC/O:Commercial Operation
Approval of Reactor
Establishment License F/C
C/O (Dec-2009)
Application of Reactor
Establishment License
(3 loop)
(APWR)
Approval of Reactor
Establishment License
Construction
#3 C/O (Mar-2014)F/C
Site Preparation
Site Preparation
Construction Status (Aug-2006)
Safety Review
Safety Review
東京
Kobe
敦賀
Application for Reactor License:March, 2004Commercial OperationUnit 3 : 2014Unit 4 : 2015
Tsuruga 1/2
Tokyo
Tsuruga 3/4
Tsuruga
(From web-site of the Japan Atomic Power Company)
The First APWRs (Tsuruga 3/4)
Tomari Unit 3(Under Construction)
Mitsubishi has introduced advanced construction methods to construct the best possible plant in the minimum delivery time.
Construction
Improved Construction Methods
Computerized Construction Planning(Reactor Vessel Carry-in)
Large Module Structure(Main Steam / Feed Water Piping Module)
Primary Radiation Shield Wall (SC)
SC Structure
Steel Concrete Structure
Improved Construction Methods
Fuel Loading
CommercialOperation
FirstConcrete*1
Ikata-2 (CO’82)(2 Loop Plant)
0M
0 20 40 60 80
40MOhi-3 (CO’91)( 4 Loop Plant)
(months)
Unit-A (CO’02)(Overseas Plant)
Unit-B (CO’98)(Overseas Plant)
Short Construction Schedule of Mitsubishi PWR
(9)
(8.5)
Results(F/C~F/L)
72M
64M
(6)
(5)
34.5M
Mitsubishi PWR
Other Examples
Excellent Performance
2.US-APWR Overview
The basic design concept of the US-APWR is the same as that of the Japanese APWR.New technologies of the APWR are fully tested, well-verified and established. The US-APWR, 1700MWe class, is based on the established APWR technology with
The latest technologies to improve plant efficiencyMinor modifications to meet U.S. utility requirements
What is US-APWR
1,700 MWe Class1,538 MWe1,180 MWeElectric Output4,451 MWt4,451 MWt3,411MWtCore Thermal Output
3/4”3/4”7/8”Tube size
LP last-stage blade
Model
Model
44 inch
93A-1
54F
Current4 Loop
70 inch class54 inchTurbine
100A100AReactor Coolant Pump
91TT-170F-1Steam Generator
US-APWRAPWR
Plant Parameters and Major componentsComparison of US-APWR to PWR
1970’s
1980’s
2000’s
Shift supervisor console Shift supervisor console
Large Display PanelLarge Display Panel
Compact Operator ConsoleCompact Operator Console
Improvement after TMI
Systematic Human-Factor approach
Human centered design with new technology
Easy recognition of plant overview for all of shift operator crew membersSmooth operations realized by concentrating monitoring and operation functions in a compact console
Advanced Control Room Design
3. Possible US-APWR Construction Schedule
US-APWR NRC Licensing Schedule
DC :Design CertificationCOL:Combined construction permit and conditional operating license
2006 2007 2008 2009 2010 2011 2012 2013
#1(July)
COLA
DC application (Dec. 2007) DC
Design Certification
Pre-application review
DCD
FSAR
US-APWR Construction Schedule
Aux. Buildings
Turbine Island
Nuclear Island
YardConstruction
Pre-Application
Design CertificationCOL
Licensing
PJ Milestone
0-1-2-3-4-5-6-7-8-9
LOI COLA First Con. Power Supply Fuel Load CO
DC Application
Site Preparation Work
Basemat
PCCV Base LinerPCCV
Heavy Components Set
Polar Crane Set
Inner Con. ModuleMechanical / Elec. Installation
HFTFlushing & Test
Commissioning
Building
T/G Foundation
Mech. / Elec. Installation
Civil Work
Mech. / Elec. Installation
4. Mitsubishi’s Infrastructure Requirements for US-APWR
MHI Resource Base in Japan
In Japan, Mitsubishi has over 4,500 nuclear employees in its nuclear businesses (including affiliates).
65
MHI Nuclear Engineering Center- Planning and Basic Design of NI and TI
MHI Nuclear Energy Systems Headquarters- Commercial & Project Management
MHI Kobe Shipyard & Machinery Works- NI Components and Fuel
MHI Takasago Machinery Works- TI Components and Fuel
Mitsubishi Electric Corporation- I&C and Electrical Equipment
Number of Engineers
331
1,841
535
327
Establishment of MNES in U.S.A.
MHI established MHI Nuclear Energy Systems Inc. (MNES) in Washington, D.C. in July 2006
Outline of MNES:A wholly owned subsidiary of MHI Staff: Approx. 50 (end of Feb. 2008)Annual Sales: approx. $50MOffices in the U.S.
- Head office (Washington, DC)- Engineering Office (Arlington, VA)- Nuclear Service Office (Pittsburgh, PA)- Commanche Peak Project Office (Dallas TX)
US-APWR Equipment Requirements
Equipment supplied from Japan:Reactor VesselsSteam GeneratorsPressurizersReactor Coolant PumpsAccumulatorsSteam Turbines / Generators / AuxiliariesEmergency Power Systems
US-APWR Equipment Requirements
Equipment supplied from U.S. / Canada:Containment VesselsCranes, Hoists. MonorailsEquipment HatchesAir LocksTanksHeat Exchangers, CondensersFeedwater SystemsPiping, Valves, Silencers, Filters, SupportsPumps, Motors, Baskets, Screens, StrainersCooling Towers Fire Detection and SuppressionFuel Storage Racks
US-APWR Equipment RequirementsEquipment supplied from U.S. / Canada cont’d:
Compressors, Coolers, ChillersSensors, Alarms, PanelsInsulationInstrumentation, Switch Gear, Transformers, Relays, Controls, CabinetsConduit, Cables, Trays, PenetrationsLighting, MonitorsHVAC, Fans, DampersSecurity systems Radiation Monitoring, Protection
US-APWR Equipment Requirements
Equipment supplied from U.S. / Canada cont’d:Structural Steel, PlatformsConcrete, Re-barBuildings, Warehouses, Maintenance Shops
US-APWR Equipment Requirements
U.S. Supplier Lists:Engineering, Manufacturing, QA Assessments (started)Qualification of Safety Related Equipment Suppliers (May 2008 to Sept. 2009)Qualification of non-Safety Related Equipment
(in-progress)First Purchase Orders
Engineering (Started)Manufacturing (*Fall 2009)
(*): Estimated
Reactor Design Panel
Brenda PetrilenaDirector, Programs and Engineering
Westinghouse Electric Company
Presentation Overview
• The Demand for Nuclear Power – AP1000 in the US
• AP1000 Overview - Simplification
• Westinghouse Challenge
• Supply Chain Challenges
• Summary
The Demand for Nuclear PowerAP1000 in the US
Lee NuclearDuke/Southern Co.
2 AP1000s
HarrisProgress Energy
2 AP1000s
BellefonteTVA/Southern Co.
2 AP1000s
RiverbendEntergy
1 ESBWR
Grand GulfEntergy
1 ESBWR
VC SummerSCE&G/Santee Cooper
2 AP1000
VogtleSouthern Co./Co-owners
2 AP1000s
North AnnaDominion1 ESBWR
Constellation1 EPR
Levy CountyProgress Energy
South TexasNRG Energy, Inc.
.2 ABWRs
2 AP1000s
Lee NuclearDuke/Southern Co.
2 AP1000s
HarrisProgress Energy
2 AP1000s
BellefonteTVA/Southern Co.
2 AP1000s
RiverbendEntergy
1 ESBWR
RiverbendEntergy
1 ESBWR
Grand GulfEntergy
1 ESBWR
Grand GulfEntergy
1 ESBWR
VC SummerSCE&G/Santee Cooper
2 AP1000
VogtleSouthern Co./Co-owners
2 AP1000s
North AnnaDominion1 ESBWR
North AnnaDominion1 ESBWR
Constellation1 EPR
Levy CountyProgress Energy
Levy CountyProgress Energy
South TexasNRG Energy, Inc.
.2 ABWRs
2 AP1000s
Best Solution for New Plants–Simplification
Simplicity in:• Design
• Safety
• Construction
• Procurement
• Operations
• MaintenanceAP1000 Design Certification Approved by the NRC on 12/30/2005
4 AP1000 Units contracted in China (Haiyang & Sanmen)2 AP1000 Combined Operating Licenses (COL) submitted to date
Westinghouse Challenge….
Transition from “Design” to “Delivery”
“Can the Supply Chain Support the Nuclear Renaissance?”
Answer: “Yes”If
• As an Industry, we address macro level issues in support of the Nuclear Renaissance including both New Plant Builds and Existing Plant Life Extensions
• We identify and mitigate potential constraints in the supply chain early
Supply Chain ChallengesHigh Level Concerns
• The US Commercial Nuclear Industry is competing for limited domestic manufacturing capacity with:
– Fossil Fuel– Petrochemical– Aerospace– DOD
• Does the supply chain consider the renaissance real?
• The risk and cost of investment for suppliers must be addressed
Summary• Make the US Commercial Nuclear Industry the
“customer of choice” for critical suppliers– A balanced sharing of cost, risk, and benefit
• Communicate to the supply chain, the enormous gain to be realized by the nuclear renaissance and acknowledge and deal with the risk and cost at all levels of the supply chain
• Owners, A/Es, NSSS Suppliers, and industry organizations must demonstrate an unwavering commitment to Nuclear Energy
Engineering, Procurement and Constructor Panel
Brian P. ReillyPrincipal Vice President
Manager of Nuclear OperationsBechtel Power Corporation
Engineering, Procurement and Constructor Panel
Jay BristerVice President, Business Development
CH2M Hill
CH2M HILL At A GlanceHistory• Employee owned since 1946• Merged with Clair A. Hill and Associates in
1971• Included on the Fortune “100 Best
Companies To Work For” list in 2003, 2006, and 2007
• Included on the Fortune “Most Admired Companies” list for six consecutive years
• Global HQ in Englewood, CO
23,000 people workingin 40 countries
Integrated Client Solutions
Each client and project has access to the collective knowledge and skill of the entire enterprise.
C O
R E
S
E R
V I
C E
S
C L I E N T G R O U P S
PROGRAM MANAGEMENTCONSULTING
ARCHITECTUREENGINEERING
PROCUREMENTCONSTRUCTION
CONSTRUCTION MANAGEMENTOPERATIONS & MAINTENANCE
APPLIED TECHNOLOGIES
CivilInfrastructure
CivilInfrastructureIndustrialIndustrial FederalFederal
Nuclear is in our Federal Client Group
Nuclear Business Group Serves Four Market Segments
• Nuclear Generation– Program Management for new build– Siting, licensing, permitting of new nuclear power plants– Balance of plant, capital upgrades, program management/owner’s
engineer for existing power plants• Liabilities Management
– Federal and non-federal traditional environmental management (D&D, waste management, environmental restoration, etc)
• Nuclear Infrastructure Management– DOE NNSA/Science/Nuclear processing operations and maintenance,
infrastructure upgrades, process and facility engineering/design and facility EPC
• Nuclear Fuel Cycle Management– Enrichment, fuel reprocessing – Spent nuclear fuel handling, storage and disposition
Nuclear New Build
• 2008 is a Critical Year– Need for Power
• Must meet long term load demand growth• Environmental drivers point to nuclear as source
– Federal Incentives• COL Applications submitted by end of 2008
– NRC expecting 15 applications for 22 units
• Federal Loan Guarantees
– Designs Moving Forward
Now is the time to get involved!
Engineering, Procurement and Constructor Panel
R. Wayne ParkerDirector, Procurement and Contracts
Flour Corporation
Who is Fluor Employees: 46,000+ (2,750 with nuclear experience)
Corporate HQ: Dallas, TX
Five Business Groups
Nuclear Power HQ: Greenville, SC
International Nuclear Power Office: Camberley, UK
Recent Annual Spend: $14 billion
Fluor Nuclear Experience
Fluor has provided Nuclear Services to clients since 1946
Reactor Design & Modification
Recent Non-Reactor Nuclear Design / Build
Self Perform Reactor Construction
Reactor Operating Plant Support Services
Nuclear Facility Decommissioning
Fluor Nuclear Renaissance Commitment
January 2007 re-established Fluor Nuclear Power to focus on the following markets:
Nuclear new build in U.S., UK and other (selective) global markets
Capital projects at operating nuclear plants
During 2007 we stood ASME audits for regaining Nuclear Code Stamp and Nuclear Certificates
February 2008 we received our Nuclear Code Stamp and Nuclear Certificates
Fluor Current Nuclear Projects
Oconee Nuclear FacilityDuke Oconee
Engineering - Natural Phenomenon Barrier System
Procurement and Construction - Protected Service Water System and Natural Phenomenon Barrier System
South Texas Project
STPNOC Units 3 & 4Engineering, Procurement and Construction of 2 x 1300 MW ABWR
Fluor Strategic Supplier Relationships
pROCUREMENT
CO
STIN
FLU
ENC
E
T I M EThe ability to influence the cost of a project is greatest at the beginning of a
project – bringing strategic suppliers in early is essential to success
EPCbecomes
PEpCENGINEERING
CONSTRUCTION
PROCUREMENT
FLUORStrategic
Suppliers
Construction Industry
Institute (CII) indicates:
4%–8% cost savings
10%–15% savings in
time
Supplier Integration – The PEpC Process
Strategic RelationshipsStrategic Relationships
Fluor Supply Chain Agreements
Supplier Relationship Agreements (SRA)
Contractor Strategic Relationship Agreements (CSRA)
Becoming a Fluor Supplier/ContractorBecoming a Fluor Supplier/Contractor
SCORE
Fluor's Supplier and Contractor Online Registry E-version
Register TODAY! http://www.fluor.com/about/supplier.asp
Click on Supplier / Contractor and then on SCORE
Please be sure to enter the keyword "Nuclear" in the referral field in SCORE!
Complete the Questionnaire
Engineering, Procurement and Constructor Panel
Bobby BoltVice President, Nuclear Projects and
District Quality ManagerKiewit Federal Group
Engineering, Procurement and Constructor Panel
Orest HrynewychSenior Manager
Sargent & Lundy LLC Nuclear Power Technologies
Engineering, Procurement and Constructor Panel
Ed TerresDirector, Nuclear AP1000 Procurement
Shaw Power
Corporate ProfileCorporate Profile
• Name: The Shaw Group Inc.• Headquarters: Baton Rouge, Louisiana• Public corporation: NYSE Symbol: SGR• 2007 Revenue: $5.7 Billion• Backlog: $14.0 Billion*• Number of employees: 27,000 • Web site www.shawgrp.com
Founded in 1987, The Shaw Group Inc. provides premier engineering, design, construction, maintenance, fabrication and manufacturing services to private-sector and government clients in the energy, chemicals, power, nuclear, environmental, infrastructure and emergency response markets.
* As of the three month period ending 11/30/07
Worldwide Locations
138 U.S. Locations
33 International Locations
Shaw Power- Nuclear• Full service engineering,
design, procurement and construction
• Configuration management
• Licensing support and safety analysis
• Major component replacement
• Operating plant services
• Maintenance & modifications services
• Decontamination & decommissioning services
• Environmental services
• Spent fuel dry storage
• China State Nuclear Power Technology Company
• Duke• Southern• Entergy• SCANA• Exelon• Progress • LES - National Enrichment
Facility• Tennessee Valley Authority • Dominion• Entergy• TXU• KOPEC• Florida Power and Light• FENOC
AP1000 Consortium awarded 4- Nuclear reactors in China;
Nuclear new-build backlog over $700 million
AP1000 Consortium awarded 4- Nuclear reactors in China;
Nuclear new-build backlog over $700 million
Services Significant Customers
Westinghouse/ Shaw Consortium furnishes AP1000 to domestic utilities• Conceptual design• Detailed engineering• Project management• Construction
management• Engineering and
design services• Site-specific
engineering
AP1000 Domestic Opportunities
AP1000 Domestic Opportunities
AP1000 Offshore Opportunities
• South Africa
• Europe
• Asia
Doing Business with Shaw Nuclear
• Need suppliers that can provide Balance of Plant and Construction Support Materials and Equipment
– Pumps (CCW, Condensate, Misc. Vertical, Misc. Horizontal)– Mechanical Equipment (Heat Exchangers, Water Treatment)– Electrical Equipment (Switchgear, Bus Duct, MCCs, Panel
boards, etc.)– Civil Support ( Rebar, Structural Steel, Grating, Decking)– Bulk (Electrical & Mechanical)– Instrumentation– Construction Support (Welding, Safety Supplies, Hand Tools
Doing Business with Shaw Nuclear
• Perspective new suppliers need to complete Shaw Pre-Qualification Questionnaire to begin the qualification process
• Key Attributes for Qualification Considerations
• Meeting quality & schedule requirements • Technical expertise and problem solving• Demonstrated financial strength • Strong Quality Program in accordance with industry norms• Adequate capacity to meet long term supply commitments • History of competitiveness in product group or market
• Contact Shaw Procurement representatives for information regarding the qualification process
Engineering, Procurement and Constructor Panel
Bill MachuskySenior Manager, Strategic Sourcing
URS – Washington Division
Washington Division
• Fully integrated engineering, construction and technical services organization with the capabilities to support the project life cycle—from inception through start-up and operation to decommissioning and closure
• Washington Division Headquarters―Boise, Idaho
• Power Business Unit Headquarters—Princeton, New Jersey
• Recently opened the URS Nuclear Center in Fort Mill, SC
• Internet sites— www.urscorp.comwww.wgint.com
Formed from a Rich HeritageRustIsbill
LitwinKaslerEbasco
CatalyticGibbs & Hill
HK FergusonStearns-Roger
Morrison KnudsenCentennial Engineering
Washington Construction GroupUnited Engineers & Constructors
Westinghouse Government ServicesRaytheon Engineers & Constructors
Washington Group International
Washington Division
Bob ZaistSR. EXECUTIVE VICE PRESIDENT
BUSINESS DEVELOPMENT
Larry L. MyersSR. VICE PRESIDENTHUMAN RESOURCES
Jerry LemonEXECUTIVE VICE PRESIDENT
FINANCE
Thomas H. ZargesPRESIDENT
Randy HillSR. VICE PRESIDENT& GENERAL COUNSEL
Energy & Environment
David PethickPRESIDENT
George DudichSR. VICE PRESIDENT – BUSINESS DEVELOPMENT
Industrial/Process
Frank C. GrossPRESIDENT
Mark A. CostelloEXEC. VICE PRESIDENT – BUSINESS DEVELOPMENT
Infrastructure
Greg P. TherrienPRESIDENT
Steve E. RichardsSR. VICE PRESIDENT – BUSINESS DEVELOPMENT
Power
Louis E. PardiPRESIDENT
George L. NashEXEC. VICE PRESIDENT
Defense*
Terri L. MartsPRESIDENT
Larry E. ShawEXEC. VICE PRESIDENT – BUSINESS DEVELOPMENT
Mining
Steve B. KeslerPRESIDENT
Ken HeckerVICE PRESIDENT – BUSINESS DEVELOPMENT
EXECUTIVE OFFICE
• San Roque Hydroelectric Project (Philippines)
• E-470 Tollway (Denver)• Hudson Bergen Light Rail (NJ)
• North Las Vegas water pumping station
• MIBRAG Lignite Mine (Germany)• Five additional coal mines in U.S. and
Venezuela• Gold mine and phosphate mine in U.S.
• Exxon Mobil Gas Production Programs• Burlington Lost Cabin Production• Sanofi-Pasteur Fill and Finish Plant• Kraft Foods
• U.S. Army Chemical Weapons Destruction– Umatilla, OR– Pine Bluff, AK– Anniston, AL– Pueblo, CO– Johnston Atoll
• U.S. Defense Threat Reduction Agency
• Savannah River Spent Fuel Storage, Treatment, and Disposal
• West Valley (Nuclear) Demonstration Plant• Miamisburg (Ohio) Closure Project for
Environmental Restoration
* Now part of the EG&G Division
• Watts Bar Completion• Diablo Canyon Steam Generator
Replacement• GE ESBWR Development• LES Uranium Enrichment
• Port Washington Combined Cycle• Weston Unit 4 Coal-Fired Station
URS Corporation2007 Financial Highlights*
• Gross Revenues: $5.38 billion• Operating Income: $311.2 million• Net income: $132.2 million• Cash on hand: $256.5 million• Shareholders equity: $3.5 billion• Repaid $239 million on bank debt, including $125 million related to
the Washington Group International acquisition• Backlog: $18.71 billion• NYSE symbol: URS
* Results include six weeks of operations from the former Washington Group International, Inc.
URS Corporation is the 4th largest publicly heldE&C company in the U.S.
Proven Safety Performance
First ever alliance between an engineering and construction
company and OSHA
Voted one of America’s 17 safest companies –“Occupational Hazards” magazine
Washington Division training program has certified 1,500
managers/supervisors
Washington Division
Port Washington Generating Station earned OSHA VPP Star status in August 2007OSHA Corporate Pilot Program VPP Star status awarded to Washington Division in August 20065th Company inducted into program / First E&C Company
— Georgia Pacific, International Paper, U.S. Postal Service, Dow Chemical
2004 2005 2006 2007Days Away from Work Rate 0.1 0.1 0.1 0.1Medical Recordable Rate 0.7 0.6 0.7 0.5Total Recordable Cases Rate 1.1 1.0 1.1 0.9EMR 0.68 0.68 0.65 0.68Direct Hire Exposure Hours 57,596,419 52,693,614 52,832,614 54,274,471
Power Business Unit2004 2005 2006 2007
Days Away from Work Rate 0.14 0.03 0.18 0.02Medical Recordable Rate 0.87 0.7 1.2 0.61Total Recordable Cases Rate 1.17 0.76 1.46 0.64EMR 0.68 0.68 0.65 0.65Direct Hire Exposure Hours 10,113,023 7,610,051 7,828,373 8,497,463
M&O Provider at DOE SitesSavannah River SiteWaste Isolation Pilot PlantWest Valley Demonstration ProjectHanford River Corridor ClosureLos Alamos National LaboratoryIdaho National LaboratoryRocky FlatsIdaho Cleanup Project
Savannah River, Los Alamos, and Idaho National Laboratories
Next generation reactor plant developmentNuclear nonproliferation and national securityNuclear Waste Management and Environmental RemediationComputational modeling, waste processing, vitrificationWaste Isolation Pilot Plant and West Valley Demonstration Project
Nuclear Maintenance and Mods300 million nuclear craft hours 30 General President’s Agreements40+ continuous years of service to the nuclear industry
New Nuclear Engineering & ConstructionCurrently performing CM services & construction on National Enrichment Facility35,000 MW engineer or constructor of record – 49 UnitsFirst commercial nuclear facilities in Italy, Japan, Mexico, Switzerland, Brazil, Spain, and Taiwan
SGT LLCA limited liability company owned by URS Washington Division and AREVA NPLeading Steam Generation Replacement contractor. Twenty-one units completed, four units in backlogReactor Vessel Head Replacement. Eight units completed, one in backlog
Quality ProgramsQuality program development, inspection at 109 power sites
Wholly Integrated Commitment to the Nuclear Industry
A Heritage of Companies with aDiversity of Nuclear Experience
Diablo CanyonCallaway 1
ANO 2St. Lucie 1
Turkey Pt. 4Oconee 1Oconee 2Oconee 3
Prairie Island 1Calvert Cliffs 1Calvert Cliffs 2
St. Lucie 1Point Beach 2
Salem 1McGuire 1McGuire 2
Vermont YankeeMillstone
North AnnaSeabrook
Point Beach 1Browns Ferry
Millstone 2D.C. Cook 2
Point Beach 2Calvert Cliffs 1 & 2
Chernobyl 4Indiant Point 2Prairie Island 1
Indian Point 2Indian Point 3
Dresden 2Dresden 3
Quad Cities 1Quad Cities 2
Three Mile Island 1Seabrook 1Brunswick 1Brunswick 2
Salem 1Salem 2
Washington Nuc Project 1Washington Nuc Project 4
Waterford 3Vermont Yankee
St. Lucie 1St. Lucie 2
Harris 1Robinson 2
South Texas 1South Texas 2Chin Shan 1Chin Shan 2Fukushima 1Fukushima 2Fukushima 6
Tokai 2Tsuruga 1
Santa Maria de GaronaLaguna Verde 1Laguna Verde 2
Washington Nuc Project 3Washington Nuc Project 5
Comanche Peak 1Comanche Peak 2
Angra 1Jose Cabrera 1
Beznau 1Beznau 2CofrentesAlmaraz 1Almaraz 2
Caorso
• Engineer of Record 38 units
• Constructor of Record 23 units
• Engineering Modifications 100 units
• Maintenance 56 units
• Plant Support Services 79 units
• QA 109 units
• Licensing Support 58 units
• SGRPs 21 units completed, 4 units backlog
• RPV Head Replacements 8 units completed, 1 unit backlog
• First nuclear facilities in Italy, Japan, Mexico, Switzerland, Brazil, Spain, and Taiwan
Nuclear Experience
A Leader in the Nuclear Renaissance
• On the GE team to design and construct the Economical Safe Boiling Water Reactor (ESBWR).
• Prepared the licensing documents (Design Control Document and Combined Operation License application) for the Mitsubishi Nuclear Energy Systems Advanced Pressurized Water Reactor and expect to have a major role in design and construction.
• On the General Atomics and AREVA teams for design and licensing of the Very High Temperature Gas-Cooled Reactor for the USDOE’sNext Generation Nuclear Project
• On the AREVA Team for design of the reactors and reprocessing plants for the DOE Global Nuclear Energy Partnership Program
• Assisting the Chinese in Project Management for their burgeoningnuclear program
A Leader in the Nuclear Renaissance
• Constructing the National Enrichment Facility in New Mexico• Providing engineering and construction services to complete TVA’s
Watts Bar Unit 2• A leader in providing support to operating nuclear plants
– Exelon - Systemwide Engineer of Choice– Detroit Edison - Fermi 2-Exclusive Alliance Partner– Entergy - Indian Point– Florida Power & Light - Seabrook, Turkey Point, Point Beach, Duane
Arnold– CFE - Laguna Verde
Expectations of Suppliers, What Do We Really Need
• To provide quality programs, personnel and infrastructure to meet industry standards and inspection criteria, which are heavy expenses to manage
• Seek out and align ourselves with long-term quality, reliable, capable, service orientated equipment manufacturers
• Technical documents - capability to provide required design/production data (e.g., drawings, procedures, etc.)
• On time, predictable - proven delivery performance • Proven track record with industry for providing value added
service's • Subcontract management - strong sub-tier relationships • Proven design-certified to appropriate nuclear standards