Nuclear Power Plant New Build Activity A Market

Nuclear Power Plant New Build Activity: A Market Overview Tim Collier Vice President Customer Relations & Sales - Asia Westinghouse Electric Company 1

The Need for Power and Energy Security 2

Asia Electricity Demand Growth Rate The electricity sectors of the countries in developing Asia are expected to be the fastest-growing in the world. In the region as a whole, net electricity consumption is projected to increase at an average rate of 3. 7 percent per year from 2001 to 2025. Net Electricity Consumption 3 Source: Energy Information Administration

Anticipated Global Demand for New Nuclear Capacity Ref: The Future of Nuclear Power An Interdisciplinary MIT Study (2003) and Westinghouse Analysis 477 200 175 91 68 62 46 49 37 32 39 17 4

New Build Activity Where? Just about everywhere! New plants under construction or strong consideration: Canada South Africa China South Korea Czech Republic Switzerland Finland Taiwan France Turkey India U. K. Russia U. S. Vietnam Japan Indonesia 5

Challenge: Nuclear Power Must Be Cost -Competitive Comparative electricity generating cost projections for year 2010 6

Westinghouse History and Strength 7

Reactor Vessel for Westinghouse Shippingport PWR First US Commercial Nuclear Power Plant (1957) 8

Westinghouse Strategic Objectives Achieve Sustainable Growth by Contributing to Our Customers’ Success Customer Intimacy Operational Excellence Technology Leadership 9

Leader in Advanced Reactor Licensing l 20 years ago Evolutionary ALWR reactor technology – System 80+ Design Certification (DC) on May 21, 1997 l 15 years ago Passive reactor technology – AP 600 DC on December 16, 1999 l Extended to Generation III+ AP 1000 – DC December 30, 2005 l Generation IV nuclear plant technology – PBMR and IRIS (Pre-Application reviews underway) 10

Key for Success: Localization and Technology Transfer Robust ROK new build program will also help us ensure success with other new build efforts 11

Westinghouse AP 1000 12

A Historical Plant Perspective l Current nuclear power plants are safe, economic and increasingly competitive l Complicated systems with numerous active components l Quest for improved performance and safety pursued through redundancy and diversity l Operators required to take action on a relatively short time in response to plant upset conditions l Numerous designs with diverse project delivery teams and equipment suppliers l “Stick-build” construction and large on-site staffs 13

Westinghouse Passive Technology AP 1000 Modular Construction Short Engineering and Construction Schedule US Licensing Approval Passive Safety Systems NRC Approves Certification of Westinghouse AP 1000 Advanced Reactor Design – the only Genreation III+ design to receive such certification Innovative Design Features Reduced Components & Commodity Components 14

AP 1000: Simplicity and Standardization Design l Safety l Construction l Procurement l Operations l Maintenance l Schedule for a Standard AP 1000 Plant – 60 Months 15

Involve Suppliers Early in the Process l To improve cost efficiencies l Streamline the overall planning of the project l Manage and identify global capacity, determine worldwide demand, identify gaps and implement gap closure plans l Align supply strategies to the area of the world where the plant is to be built l Identify customer localization The result: A power plant with fewer sourced requirements, reduce lead times, components from a pool of tightly and continue the pursuit of integrated suppliers and sub suppliers qualified suppliers 16

U. S. Market Signals Are Clear Utility Nu. Start – TVA Dominion Progress #1 Duke Constellation Nu. Start–Entergy #2 Progress #2 Southern SCANA Submittal 2007 2008 2008 2007 Technology AP 1000(2) ESBWR(1) AP 1000(2) EPR(1) ESBWR(1) AP 1000(2) U. S. Utilities are Overwhelmingly Choosing Passive Reactor Technology Westinghouse in discussion with other utilities on AP 1000 applications 17

AP 1000 – The Right Choice for New Build 18