WNU - Ottawa

Andy White

Chairman, World Nuclear Association

President & CEO, GE NEV

WNU - Ottawa

Andy White

Chairman, World Nuclear Association

President & CEO, GE NEV

GE Company

Technology Infrastructure

NBC Universal

Energy Infrastructure

Capital

� 300,000 employees� 100 Countries

� $300BB Market Cap

� AAA rated

� Membership at 90% of industry and increasing

� Equal voice for suppliers, customers and utilities

� Global Industry Forum

� 12 active working groups� 12 active working groups

� World’s Major Nuclear Information Source

� World’s Leading Nuclear News Resource

� Industry is gearing up for new build

� Owner of World Nuclear Index

� International Nuclear Education Center

GE in Nuclear

Fuel Cycle• BWR & mixed oxide fuel• Candu fuel & handling • Fuel Engineering Services• Uranium Management• Enrichment• Nuclear Isotopes

Nuclear Power Plants• Generation III…. ABWR• Generation III+… ESBWR• Generation IV…Prism • Turbines & Generators• Water, Security, Electrical

Equipment & Controls

Nuclear Services• Reactors, turbines &

balance of plant• Life extension• Power uprates• Performance services • Outages and inspections

Portfolio / business modelHigh

�Units�Services

Nuclear

�Units

Gasification

Uncertainty

(regulatory / financial)

CCgas turbine

Wind(with PTC)

Pulverizedcoal

Low

Low High

�Services�Fuel

�Units�Services

�Units�Services

Cost of electricity

Uncertainty

(regulatory / financial)

�High ROTC units

�Replacement parts

�Units�Services

gas turbinecoal

modelHigh

�Units�Services

Nuclear

�Units

Gasification

CCgas turbine

Uncertainty

(regulatory / financial)

carbon

Wind(with PTC)

Pulverizedcoal

�Units�Services

Low

Low High

�Services�Fuel

�Units�Services

�Units�Services

gas turbine

Cost of electricity

Uncertainty

(regulatory / financial)

�High ROTC units

�Replacement parts

coal

Cost of Electricity

$125

$150

$175Fi

rst-

Year

CO

E ($

/MW

h)

Wind no PTCCCGT @ $8

SCPC (Bit)

IGCC

IGCC 90% CCS

IGCC 50% CCS

$50

$75

$100

$0 $20 $40 $60 $80 $100

CO2 Allowance Price ($/ tonne)

Firs

t-Ye

ar C

OE

($/M

Wh)

Nuclear

Wind w/PTC

Wind no PTC

Impact of a 50% Increase in Fuel Price

21%

38%

Perc

enta

ge in

crea

se in

gen

erat

ing

cost

3%

19%21%

Perc

enta

ge in

crea

se in

gen

erat

ing

cost

Nuclear Coal Gas Coal Steam Gas Turbine

Source: IEA World Energy Outlook 2006

Projected U.S. Energy Demand

The U.S. Is Projected to Need 50% more Electricity by 2025

5,787B

Source: U.S. Department of Energy

1980 19901970 2003 2015 2025

5,787BkWh

3,839BkWh

85

90

95

USA Plant Average Capacity Factor

91.8% in 2007

89.6% in 2006

60

65

70

75

80

'90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07

Sources: Global Energy Decisions , Energy Information Administration, NEI estimate for 2007

89.6% in 2006

89.3% in 2005

90.1% in 2004

87.9% in 2003

90.3% in 2002

89.4% in 2001

88.1% in 2000

700

750

800

USA Output at Record LevelsU.S. Nuclear Generation (billion kilowatt-hours)

807 in 2007787 in 2006782 in 2005

Highlights

5,222 MW of power uprates approved

500

550

600

650

'90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07

Sources: Global Energy Decisions, Energy Information Administration, U.S.

Nuclear Regulatory Commission, NEI estimate for 2007

782 in 2005789 in 2004764 in 2003780 in 2002769 in 2001754 in 2000

912 MW of uprates pending

1,751 MW of uprates expected

Electricity Generation (MW Hours)

20

25

30

Solid Economic Performance ContinuesU.S. Nuclear Production Cost (2007 $ per MWh)

0

5

10

15

'95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07

Sources: Global Energy Decisions, NEI estimate for 2007

2007: $16.80/MWh

2006: $17.70/MWh

2005: $18.10/MWh

2004: $18.90/MWh

48 Granted

32 Intend to Renew

9 Unannounced

Other Key Highlights From 2007

License Renewals Continue ...

15 Under NRC Review 6 Filed in 2007

Source: U.S. Nuclear Regulatory Commission

… And Plant Restarts

TVA’s Browns Ferry 1 back in service May

2007 (5-year, $1.8 billion project)

USA Environmental ContributionU.S. Emission-Free Electricity

Hydro24.1%

Source: Global Energy Decisions/Energy Information Administration

Solar0.1%

Nuclear73.0%

Geothermal1.4%

Wind1.4%

Electricity demand2X by 2030

Billions of kW hours

20,000

25,000

30,000

35,000

hr

AsiaAfricaMiddle EastEurope & EurAsiaCentral and S AmericaNorth America

Growing Global Energy Demand

Sources: EIA-DOE International Energy Annual 2004 & International Energy Outlook 2006

0

5,000

10,000

15,000

20,000

1980 1985 1990 2003 2010 2015 2020 2025 2030

bil KW-hr

Global Public Opinion

Positive on Nuclear Energy or “Use what’s there”

Negative on Nuclear Energy or “dangerous”

“Don’t Know” or “None of the Above”

Future OutlookNew Construction Forecasts … (Orders; GW Cumulative)

Europe + Asia and IndiaAmericas

38

47

58

1720

25

2010 2015 2020

1217

21

2010 2015 2020

38

2010 2015 2020

New unit construction…operating prior to 2020

Russia, 7

Iran, 1

Japan, 2

Pakistan, 1

Argentina, 1

Bulgaria, 2

Slovakia, 2

Constructing37 units

Constructing & Planning~87 units*

(Units)

UK, 4

Finland, 2

Japan, 11

Bulgaria, 2

US, 8

S. Korea, 5

Pakistan, 1

N. Korea, 1

Iran, 2

Russia, 8

France, 1 Romania, 1

Ukraine, 2

India, 6

China, 6S. Korea, 3

Taiwan, 2

Ukraine, 2

Finland, 1

France, 1

Iran, 1

Source: World Nuclear Association, Nuclear Energy Institute439 reactors under operation today

•Funding or major commitment made..most expect operation within 8 years, excepting US, UK. Taiwan

Brazil, 1

India, 10

Turkey, 1

China, 29

Taiwan, 2

Argentina, 1

Egypt, 1

USA New Nuclear

COL review

Order long-lead items

Site preparation

Arrange financing

COL Approval

Load fuel

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

ConstructionCOL submitted

Start-up testing (4-6 months)

Commercial operation

Pre-COL construction

USA - Expectations

Suppliers ramp up component manufacturing capability

Initial wave: 4-8 plants on lineby 2015-16

2010 2012 2014 2016 20202018

Second wave begins construction when it is clear that first wave can be licensed and built on time and within budget

Second wave under license review, conducting pre-COL site work

Old Two-Step Licensing Process(10 CFR Part 50)

Construction permit

application

Operating Construction

Operating license

application

Operation

Hearing* Hearing*

*Potential for challenge

New COL Process Reduces Uncertainty

(10 CFR Part 52)

COL application and review

Construction

Inspections, and review

References a certified design;

may reference an early site permit

Hearing

Inspections, Tests, Analyses and Acceptance Criteria (ITAAC)

review

Operation

Potential for challenge, but major capital investment

has not occurred

High threshold for hearing (must prove ITAAC have not been or will

not be met) and narrow scope if it occurs

Potential hearing

Nuclear Power Plants … The Old Way

� Construction before engineering & licensing were complete

� Each design & project was unique

� Project arrangements cumbersome

� Weak cost & schedule controls� Weak cost & schedule controls

� Information technology and modularization was non-existent

� Project Cancellations

� Utility Bankruptcy

Dresden-1, the first commercial plant in the U.S.

Not Cost Effective Or Timely

Nuclear Power Plants … The New Way

� Advanced designs…Pre-licensed

� Early Site Permits

� Combined Construction and Operating Licenses

� Engineering complete before construction

� Extensive use of information technology Containment � Extensive use of information technology

� New construction techniques

� Standard Plant commitment

� Quality Assurance focus

� Safety conscious work environment

Containment

Heat Exchanger using the Open-Top MethodAdvanced … Faster … More Economic

Construction Techniques

RCCV liner

RCCV Rebars

Roof Truss Steels

Central Mat Top Slab

RPV Installation

BWR & PWR Comparison

PWR vs. BWR … the main differences

Pressurized Water Reactor Boiling Water Reactor

Steam GeneratorRPV T/G

Pressure / Temperature

Pressurizer

Condenser

Condenser

Steam Generator

Turbine Generator

Reactor Pressure Vessel

2 loops heat balance/heat transfer

1 loop heat balance/heat transfer

Pressure / Temperature

BWR evolution – 50 years in the making

Dresden 1 KRB

ESBWRGen IV – Passive Safety

Simplified Design

ABWRGen III – Active Safety

Dresden 2

Oyster Creek

Parameter BWR/4-Mk I BWR/6-Mk III ABWR ESBWR

Power (MWt/MWe) 3293/1098 3900/1360 3926/1350 4500/1550

Vessel height/dia. (m) 21.9/6.4 21.8/6.4 21.1/7.1 27.7/7.1

Fuel Bundles (number) 764 800 872 1132

Active Fuel Height (m) 3.7 3.7 3.7 3.0

Power density (kw/l) 50 54.2 51 54

Optimized Parameters for ESBWR

Power density (kw/l) 50 54.2 51 54

Recirculation pumps 2(large) 2(large) 10 zero

Number of CRDs/type 185/LP 193/LP 205/FM 269/FM

Safety system pumps 9 9 18 zero

Safety diesel generator 2 3 3 zero

Core damage freq./yr 1E-5 1E-6 1E-7 1E-8

Safety Bldg Vol (m3/MWe) 115 150 160 140

Collective Dose Per Megawatt Year (1973-2006):As Generation Increases, Radiation Exposure Continues to Decrease

1.5

2

2.5

3

Co

llec

tive

Do

se (

per

son

-rem

) p

er M

W-Y

ear

400

600

800

bill

ion

kilo

wat

tho

urs

0

0.5

1

1.5

73 75 77 79 81 83 85 87 89 91 93 95 97 99 01 03 '05

Co

llec

tive

Do

se (

per

son

-rem

) p

er M

W-Y

ear

0

200

400

bill

ion

kilo

wat

tho

urs

LWR BWR PWR Nuclear GenerationSource: NRC; Occupational Radiation Exposure at Commercial Nuclear Power Reactors and Other Facilities 2003 (NUREG-0713). Updated 11/04

ABWR

ABWR ESBWR

GE - New Unit Platforms

• 1350MWe Net

• Certified in USA, Japan and Taiwan

• Built in 39 months (1st pour to Fuel)

• Global Supply Chain in place

• The only Gen 3 design in operation

• Lower Dose

• 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…

Kashiwazaki 6&7 Japan

Lungmen 1&2 Taiwan

Shika 2 Japan

Online Building - 2013

Hamaoka 5 Japan

Online Online Building

Shimane 3 Japan

ABWR experience

Building - 2014 Site Prep - 2015

Ohma Japan

Higashidori 1, (TEPCO) Japan

1 Fukushima 7&8 Japan

Planning

Planning

Higashidori 2, (Tohoku)

Japan

Planning

Higashidori 2, (TEPCO)

Japan

Planning - 2015

STP / NRG 3&4 USA

Planning

Kaminoseki 1 Japan

Planning

Kaminoseki 2 Japan

Construction Time - Existing Nuclear Plants

Source: IEA World Energy Outlook 2006

• A 50+ year old technology relationship

• Over 30 years of nuclear partnership

• Complementary capabilities

• Scale and size…few overlaps

GE Hitachi Alliance

• Experienced Partners on ABWR

• Joint-experience to next gen ESBWR

• Services, Manufacturing & Engineering

SynergiesGE Chairman & CEO, Jeff Immelt and

Hitachi Ltd President & CEO, Kazuo Furukawa

Meeting the Challenges…Supply Chain

� Global supply chain management

� Local partnering (craft labor, EPCs, etc.)

� Strategic long-lead materials…orders and plans in place

Next Gen Reactors

Customer / Industry Objectives

• Simplified design

• Lower capital costs

• Faster construction period

• Design for O&M … lower cost…easier

• Fewer O&M staff / less specialized• Fewer O&M staff / less specialized

• Streamlined Licensing

• Improved safety and security

• Lower dose & reduced waste

• Risk sharing & financing options

• Standard design

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ESBWR certified as ecomagination product

• The ESBWR does not emit greenhouse gases during

power generation

• Compared to the current mix of U.S. electricity, the

electricity produced by a 1520MW ESBWR nuclear reactor

would avoid the emissions of 7.4 million tons of

greenhouse gases per year, or the equivalent of taking

1.3 million passenger cars of the roads for one

year.year.

• The ESBWR draws upon the experience of GE’s installed

base of 35 boiling water nuclear reactors in the U.S. which

generate over 6% of America’s electricity and avoid the

emission of 170 million tons of greenhouse gases each

year, as well as preventing over 375 thousand tons

of NOx, 750 thousand tons of SOx, and 3.4 tons of

mercury (Hg) from being emitted each year.

Services TechnologyTechnology

Field Services Performance PartsModifications

• Maintenance

• Instrumentation

• Under-vessel services

• Underwater submarines & robotics

• Power uprates

• Life extensions

• Performance services

• Consulting services

• BWR Owner’s Group

• Reactor modifications

• Digital controls

• Chemistry

• Repairs

• Alloy 600

• Dedication center

• Control rods

• Reactor internals

• Steam dryers

• Fuel casksTM

Nuclear Services

robotics

• Dry Fuel Storage • Renew• Fuel casks

MELLLA+EPU

SPU

MELLLA

ELLLA ICF

120

105100

reactoroperatingdomain

Flow (%) 100

Pwr(%OLTP)

TM

Services Technology

InvaderInspections

Invader

Repairs

Fiber Optic Sensors

Jet Pump Inspection

Fuel TechnologyFuel Technology

ACRGNF3 & ESBWR

Candu Fuel Delivery & Reactor

CODE Remote Computing

Axial Enrichment

GNF2 Fuel Bundle

MOX Fuel Bundle

Customer Value

Evolutionary Design

Next-Generation Fuel

GNF2 LUAs

N-Streaming

Defender Additive Fuel

Channeled Fuel

Reactor Engineering Support

Firewall

OpenVMS Systems

Customer Server Server

GE

Firewall

PublicInternet

DMZ

GE CustomerServices Network

GE Engineers

VPNRouter

Business-to-BusinessVPN

VPNRouter

BWREDB/PERM

PrivateNetwork

Atlanta

Advanced Materials

P9 Tubing

Fuel Reliability

Zr-4, NSF Channels

Laser ExcitationMechanicalMechanicalPROCESS

3rd 2nd1stGENERATION

Gaseous Diffusion Centrifuge Laser Isotope Separation

GE Enters Uranium Enrichment …

0%40%45%% OF EXISTING

PRODUCTION1

Laser ExcitationMechanicalMechanicalPROCESS

1 Remainder from HEU

- Resolved roadblocks to attaining projected laser isotope separation efficiencies

- GE/Silex – synergies to commercialize this innovative technology

- Closed the deal Oct 4th 2006….Transition from Australia completed

- Security clearances approved…Test Loop construction underway

- Hitachi and Cameco joins GE team.

- Go / No go full scale enrichment January ‘09

Enrichment Demand & Supply 00-’20

4045505560657075

Mill

ion

SWU

Repu/Mox

RU HEU

Tenex

WNA 2005 World SWU Demand Upper & Reference

Source: Enrichment Market Outlook

05

10152025303540

00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20

Mill

ion

SWU

Other

LES/NEF

Urenco

Eurodif

USEC

* Tenex production does not include tails re-enrichment.

Advanced Advanced Programs

Advanced Recycling Closes the Nuclear Fuel Cycle

Electrometallurgical Recycling

Advanced Recycle Reactor - PRISM

Isotope technology

Cobalt60 – Cancer treatment

Cobalt60 – Food & medical sterilization

• Non-invasive brain surgery• ~½ million people treated• Growth ~ 10%/yr• 12% replenished each year • $100M+ segment by 2013

Molybdenum99 - Diagnostics (GE Healthcare)

• 232 gamma irradiators in use• 400 million curies installed base by ‘12• 12% replenishes each year• Growth ~ 10%/yr• 40 year proven technology…FDA approved• $100M+ segment by 2013

• 80% of all nuclear medicine• Immediate need at GE Healthcare• $200M+ segment by 2010

ABWRABWR

People

USA Work Force Challenge

Nuclear engineering enrollments up dramatically

> Undergraduate: from 470 in the 1998-99 academic

year to 1,933 in 2006-07

> Graduate: from 220 in the 1998-99 academic year to

1,153 in the 2006-07 academic year

Joint initiatives with organized labor and the Departments

of Labor, Education, and Defense

Industry-community college programs in 14 states

Skilled crafts: collaborative programs in 10 states

GE Talent Infusion � 500 hires 2004-2006 � Mix of college & experienced talent� Building solid bench� Hired 500 more in ‘07

2007 Hiring Demographics

250150 100

0-10 11-20 20+

Yrs. Experience

GE Engineering / Project Demographics

25 30 35 40 45 50 55 60 65

YE02 Average 52.2YE03 Average 51.4

YE04 Average 50.4 YE05 Average 48.1 YE06 Average 47.5

Average age now 46…Down from 52

External Focus

Clear Thinker

Imagination

Redefining Leadership … Growth Generation

• Defines success in customers terms

• Operates outside the bounds of GE walls

• Simplifies strategy into specific actions

• Makes decisions … communicates priorities

• Creative & challengingImagination & Courage

Inclusiveness & Connection

Expertise

• Creative & challenging

• Big swings versus incremental thinking

• Energizes global teams

• Builds loyalty and commitment

• Functional and domain knowledge

• Depth … source of confidence to drive change

� Nuclear energy…very safe & competitive

� Carbon accelerates the nuclear option

� Energy Security, Oil & Gas a major issue

� Technology advances…PWR, PHWR & BWR

� Global marketplace is expanding

Summary

� Global marketplace is expanding

� Industry is gearing up for new build

� People are coming back to Nuclear Energy

� Nuclear must be a part of the energy and environmental solution

� World Nuclear Association is key

Questions?