© 2018 Nuclear Energy Institute, Inc.1

John KotekVice President, Policy Development

and Public Affairs

October 2, 2018

NUCLEAR ENERGY

Status & Outlook

© 2018 Nuclear Energy Institute, Inc.

This is an explanation of the main idea

NUCLEAR ENERGY IN THE UNITED STATES

• 98 reactors across 59 sites in 30 states

• 99,010 MWe of baseload capacity

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Nuclear20.0%

Natural Gas31.7%

Coal30.1%

Hydro7.6%

Wind – 6.3%Biomass & Petroleum – 2.1%Solar – 1.3%Geothermal – 0.4%

Source: U.S. Energy Information AdministrationUpdated: March 2018

U.S. ELECTRICITY GENERATION FUEL SHARES IN 2017

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• 804.9 billion kWh in 2017 – 20% of U.S. electricity

• 92.2% capacity factor in 2017

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NUCLEAR CONTRIBUTIONS

© 2018 Nuclear Energy Institute, Inc.Source: EIA Annual Energy Outlook 2016

US ELECRICITY DEMAND GROWTH

© 2018 Nuclear Energy Institute, Inc.

$-

$20.00

$40.00

$60.00

$80.00

$100.00

$/M

Wh

ISONE Conn.

ISONE NE Mass.

MISO Mich. Hub

MISO Illinois Hub

NYISO West

NYISO Hudson Val

PJM Eastern Hub

PJM Western Hub

PJM Chicago HubForward

Prices

$30 - $50/MWh

$45 - $75/MWh

$28 - $36/MWh

DECLINING ELECTRICITY PRICES

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© 2018 Nuclear Energy Institute, Inc.

$ 2 9 . 2 42 0 0 2

$ 3 1 . 3 9 2 0 0 7

$ 4 1 . 3 5 2 0 1 2

Efficiency Improvements

Source: Electric Utility Cost GroupUpdated: September 2018$/MWh in 2017 dollars

$37.60 2014

$34.65 2016

$33.50 2017

To t a l G e n e r a t i n g C o s t s7

© 2018 Nuclear Energy Institute, Inc.

Premature Nuclear Power Plant Closures and Announced Shutdowns

Plant MWe Closure Year Reason Final Year Generation(billion kWh per year)

Final Year CO2 Avoided(M tons/year)

Crystal River 3 860 2013 Mechanical 7.0 3.8

San Onofre 2 & 3 2,150 2013 Mechanical 18.1 8.0

Kewaunee 566 2013 Market 4.5 3.8

Vermont Yankee 620 2014 Market 5.1 2.4

Fort Calhoun 478 2016 Market 3.4 3.3

Oyster Creek 625 2018 Policy 5.4 4.0

TOTAL 5,299 43.5 25.3

Three Mile Island 1 803 2019 Market 6.9 5.0

Pilgrim 678 2019 Market 5.1 2.3

Davis-Besse 908 2020 Market 7.9 5.7

Duane Arnold 619 2020 Market 5.2 5.0

Indian Point 2 & 3 2,061 2020-2021 Market & Policy 15.3 7.1

Beaver Valley 1 & 2 1,872 2021 Market 15.3 11.1

Perry 1,268 2021 Market 9.8 7.1

Palisades 789 2022 Market 6.1 5.3

Diablo Canyon 1 & 2 2,240 2024-2025 Policy 17.9 6.9

TOTAL 11,238 89.5 55.5Source: Emissions avoided are calculated using regional and national fossil fuel emissions rates from the U.S. Environmental Protection Agency and latest plant generation data from the U.S. Energy Information Administration. Updated: September 2018.

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© 2018 Nuclear Energy Institute, Inc.9

STATES RECOGNIZE NUCLEAR’S VALUE

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Nuclear Plants Saved from Premature Closures

10

• 11,683 MWebaseload capacity

• More than 7,400 direct jobs saved

• More electricity generation than all U.S. utility solar in 2017

• 60.0 million metric tons of CO2 avoided

Plant MWeProjected Closure

Year

Reason for Potential Shutdown

Electricity Generated

in 2017(billion kWh

per year)

CO2 Emissions Avoided in 2017(Million metric

tons/year)

Clinton 1,065 2017 Market 8.3 8.1

Fitzpatrick 852 2017 Market 6.2 2.9

Ginna 582 2017 Market 4.7 2.2

Hope Creek 1,172 ~2020 Market 10.6 7.7

Millstone 2 & 3 2,096 ~2020 Market 16.5 7.4

Nine Mile Point 1 & 2 1,770 2017-

2018 Market 16.0 7.4

Quad Cities 1 & 2 1,819 2018 Market 15.4 11.2

Salem 1 & 2 2,328 ~2020-2021 Market 18.0 13.1

TOTAL 11,683 95.7 60.0

Source: Emissions avoided are calculated using regional and national fossil fuel emissions rates from the U.S. Environmental Protection Agency and latest plant generation data from the U.S. Energy Information Administration. Updated: August 2018.

© 2018 Nuclear Energy Institute, Inc.

PRESERVING NUCLEAR - BIPARTISAN SUPPORT

• “If you want to see the environment and the climate that we live in affected in a positive way, you must include nuclear energy with zero emissions to your portfolio. Do it safe, do it thoughtfully, do it economically. Under the leadership of the United States, the world can benefit from that.” – Secretary Rick Perry

© 2018 Nuclear Energy Institute, Inc.

PRESERVING NUCLEAR - BIPARTISAN SUPPORT

• “When natural gas has displaced coal, that has one CO2 impact; when it displaces nuclear, it has the opposite. This is not very complicated.” – Secretary Ernie Moniz

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NUCLEAR ENERGY IMPERATIVES

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NUCLEAR’S NATIONAL SECURITY ROLE

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THE EMISSIONS REDUCTION IMPERATIVE

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NUCLEAR ENERGY – PROJECTED GLOBAL GROWTH

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EIA forecasts >35% growth in world nuclear electricity capacity from 2016 to 2040, led by non-OECD countries

Source: https://www.eia.gov/todayinenergy/detail.php?id=33672

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GLOBAL NUCLEAR EXPANSION UNITS UNDER CONSTRUCTION

Building additional reactorsPlanning or interested in additional reactors“Newcomers” building reactors“Newcomers” planning or interested in building

2 20

7

64

3

3

12

2

1

1

1 22

Sources: IAEA PRIS database. July 17, 2017 for reactors under construction, multiple sources for other information.

© 2018 Nuclear Energy Institute, Inc.

International Nuclear Influence

28C H INA

9R U S S I A

11

I N D I A 10

S . KO R EA

1

5

4

5

2

6

21

4

8U SA

Constructed Since 1997 (domestic design)

Under Construction (domestic design)

Domestic Design being Constructed in Other Countries(Since 1997 + Under Construction)

11

18Source: International Atomic Energy Agency: PRIS DatabaseUpdated: March 2018

China and Russia are leading in constructing their domestic designs

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GLOBAL MARKET PLACE

NEARLY2/3

NUCLEAR POWER PLANTS UNDER CONSTRUCTION

OF ALL

CHINESE OR RUSSIANDESIGNS

RUSSIA

CHINA

USE

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Large LWRs

NuScalePower Module

Advanced Non-LWRs• Hi-temp gas• Liquid metal• Molten salt

20202016 2025

GEH ESBWR

Watts Bar 2

Small Modular Reactors

2030

Vogtle 3 & 4

CONTINUUM OF INNOVATION

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SMALL MODULAR LWRS

NuScale Power Module GEH BWRX-300

Holtec SMR-160

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Members Include

© 2018 Nuclear Energy Institute, Inc.

• TVA Clinch River Early Site Permit Application, May 2016; Approval Q1 2020

• NuScale Design Certification Application, January 2017; Approval Q1 2021

• NRC agrees NuScale can safely operate without safety grade power source; Jan 2018

• UAMPS Construction Operating License Application, To Be Determined

23UAMPS = Utah Associated Municipal Power SystemsNuScale Power Module

SMR LICENSING

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TerraPower

X-energy

Framatome

GE PRISM

NON-WATER COOLED REACTORS

Molten Salt ReactorsHigh

Temperature Gas Reactors

Liquid Metal Reactors

Terrestrial Energy

Westinghouse eVinci

Micro Reactors

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NEW APPLICATIONS

Source: Idaho National Laboratory

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Creating a streamlined and predictable licensing pathway

2 1 3

Reverse The Trend

Safety Focused Reviews

Staged Approvals

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Nuclear energy represents the

most complete value proposition

of all sources of electricity.

Raising awareness of the value of nuclear is

essential to achieving policy outcomes.