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Jack KeenanJack KeenanChief Nuclear OfficerChief Nuclear OfficerPacific Gas and Electric CompanyPacific Gas and Electric Company

Keynote AddressKeynote Address2007 Joint IEEE / HPRCT Conference2007 Joint IEEE / HPRCT Conference

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PG&E’s Journey

• Consults with leading economists, environmental leaders, business leaders and policy makers.

• Customer Energy Efficiency Programs

• Electricity Demand Management

• PG&E’s ClimateSmart Program

• Nuclear’s Role in a Carbon Neutral Society

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History of Nuclear Plants in California

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PG&E: A Nuclear Utility since March 1956

• Vallecitos Boiling Water Reactor (VBWR) • First nuclear power plant to be licensed by the Atomic Energy Commission (AEC), predecessor to

the NRC, being issued Power Reactor License No. 1.• 5.1 MW Plant - This was the world's first commercial generation of electricity by nuclear power.• The 5.1 MWe turbine/generator supplied by PG&E for the VBWR was salvaged from a WWII

merchant ship. • VBWR operated for six years during which it produced 40,400 Mwh (net).

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Humboldt Bay Power Plant

• Humboldt Bay Power Plant was a 65 MWe, natural circulation boiling water reactor.• Operated from 1963 to 1976. • Plant is being decommissioned.

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Diablo Canyon Power Plant

• Unit 1 started Commercial Operation May 7, 1985• Unit 2 started Commercial Operation March 13, 1986• Twin Westinghouse 4-loop Pressurized Water Reactor 1,100 megawatt units provide

enough power to meet the electric needs of over 2 million homes and is a vital part of California's electric power system.

• Located 100 miles south of Monterey, near San Luis Obispo, California

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Recent Projects at Diablo Canyon

• ISFSI• Low Pressure Turbine Replacement• Steam Generator Replacement• Instrumentation and Controls Obsolescence Program

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NRC Expected New Plant Applications

7

1819

0

12

28

0

27

0

5

10

15

20

25

30

2006 2007 2008 2009

Num

ber o

f App

licat

ions

Cumulative ApplicationsCumulative Units

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Nuclear Performance Excellence

• The industry has improved in all areas: performance,

reliability, safety.

• A continuous improvement culture is important to

continued success for the industry

• Keys to continuous improvement: self critical culture,

benchmarking, assessing gaps to excellence

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2006 WANO Unit Capability Factor - Percent

60

65

70

75

80

85

90

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

89.8*

40

50

60

70

80

90

100

1971 1976 1981 1986 1991 1996 2001 2006

U.S. Nuclear Industry Capacity Factors1971 - 2006

* Preliminary

Source: Global Energy Decisions / Energy Information Administration

Updated: 6/07

0.0

2.0

4.0

6.0

8.0

10.0

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Coal - 2.37Gas - 6.75Nuclear - 1.72Petroleum - 9.63

2006

U.S. Electricity Production Costs 1995-2006, In 2006 cents per kilowatt-hour

Production Costs = Operations and Maintenance Costs + Fuel Costs

Source: Global Energy DecisionsUpdated: 6/07

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WANO Industrial Safety Accident Rate

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

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Human Performance – Defined

• Human Performance is a behavior that is influenced by human nature mixed with the systems and the environments in which people work.

• Systems and environment examples: procedures, the systematic approach to training, human system interface design for current and advanced control station design, the analysis of human performance contributors to events, communications, shift working hours, and fatigue management programs, culture, standards, management expectations and reinforcement of standards.

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Human Performance – The Final FrontierA

ccid

ent r

ate

evol

utio

n

Design

Training & Development

Human Performance

Regulations

Procedures

60’s 80’s 90’s

1

30

16

Diablo Canyon Significant HU Events by Year

EFD Resets by Year

0

2

4

6

8

10

12

14

16

2003 2004 2005 2006 2007

Sum of Event

Year

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Human Performance – Key Elements

• Leadership♣ Setting high standards♣ Observation and coaching

• Performance Measurement♣ Trending

• Solid Plant Design♣ Human Factors Design Tools♣ Human Reliability Analysis

• Organizational Effectiveness♣ Safety Culture♣ Fitness for Duty

• Corrective Action Program♣ Root Cause Analysis♣ Use of Operating Experience

• Self-Assessment

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Why this conference is important

• Event-free operations is key to the viability and sustainability of the

nuclear industry worldwide

♣ Build on excellence of current operating fleet

♣ New plant design can improve human performance interface

♣ New workforce – new human performance challenges

• This conference brings together the key players that support the

industry in achieving event-free operations

♣ IEEE design improvements and standards

♣ Human Performance tools

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In Conclusion…

PG&E Welcomes You to Monterey!

Have a Safe and Enriching week.