U.S. Utility Perspective on Nuclear Energy

Transcription

1 U.S. Utility Perspective on Nuclear Energy Seminar Nuclear Energy in Chile July 8, 2008 David Jones Director, Nuclear Policy & Strategy 1

2 Topics Overview of Duke Energy & Duke s Nuclear Operations What Does it Mean to be a Nuclear Plant Owner/Operator? U.S. Nuclear Industry Performance Expansion of Nuclear Generation Expanding the Duke Energy Nuclear Fleet What is Driving the Renewed Interest in Nuclear? Key Issues for New Nuclear Plants 2

3 Duke Energy A Fortune 500 company Traded on the NYSE as DUK Assets of $50 billion in 2008 Approximately 17,800 employees 40,000 megawatts total generating capacity in North & South America Provide electric service to ~3.9 million customers in Carolinas, Ohio, Kentucky and Indiana Over 100 years of energy expertise 3

4 North America Generation 4

5 South & Central America Generation Brazil 2,307 MW Peru & Ecuador 870 MW Central America 605 MW Argentina 576 MW 5

6 Duke Energy Carolinas Service Territory VA NC GA SC (22,000 sq. miles) Duke Power Generation Facilities Charlotte Nuclear Facilities Fossil Facilities Hydro Facilities Combustion Turbine 6

7 Nuclear Fleet Overview Duke Energy s Nuclear Fleet Seven nuclear units 6,996 megawatts of capacity ~50 percent of DE-Carolinas generation McGuire Nuclear Station Oconee Nuclear Station Catawba Nuclear Station Oconee Nuclear Station Reactor type: pressurized water Number of units: 3 Station capacity: 2,538 megawatts Located on Lake Keowee in Oconee County, South Carolina Began generating electricity in nd U.S. nuclear station to have its license renewed 7

8 Nuclear Fleet Overview McGuire Nuclear Station Reactor type: pressurized water Number of units: 2 Station capacity: 2,200 megawatts Located on Lake Norman in Mecklenburg County, North Carolina Began generating electricity in 1981 Catawba Nuclear Station Reactor type: pressurized water Number of units: 2 Station capacity: 2,258 megawatts Located on Lake Wylie in York County, South Carolina Began generating electricity in 1985 Jointly owned* *Catawba co-owners: North Carolina Municipal Power Agency Number One, North Carolina Electric Membership Corporation, Piedmont Municipal Power Agency, Duke Energy and Saluda River Electric Cooperative Inc. 8

9 What Does it Mean to be a Nuclear Plant Owner/Operator? Openness and Transparency Internal and External Oversight Nuclear Safety Culture 9

10 We Are Only as Strong As Our Weakest Link We are each others keepers if one fails we all fail Training classes Audits Partnerships Self critical nature combined with external oversight Procedure use and adherence Questioning attitude 10

11 External Oversight & Review 11

12 Safety Culture What is it? Safety Culture An organization s values, behaviors modeled by its leaders and internalized by its members that serve to make nuclear safety an overriding priority Culture is for the group what character and personality are for the individual 12

13 Principles for Nuclear Safety Culture Leaders demonstrate commitment to safety Everyone is personally responsible for nuclear safety Trust permeates the organization Decision-making reflects safety first A questioning attitude is cultivated Organizational learning is embraced Nuclear safety undergoes constant examination 13

14 U.S. Nuclear Industry Performance Then and Now: The Biggest Differences The 1970s and 1980s Cost overruns, schedule delays Capacity factors in mid-50% range Refueling outages 100-plus days Indestructible attitude so much safety margin Today Major overhauls, plant restarts on time, on budget Capacity factors in the 90% range Refueling outages days Self-critical attitude maximizing safety margin The industry operating to today s high standards is the industry that will build new nuclear plants 14

15 U.S. Electricity Production Costs , In 2007 cents per kilowatt-hour Coal Gas Nuclear Petroleum Production Costs = Operations and Maintenance Costs + Fuel Costs Source: Global Energy Decisions Updated: 5/08

16 Fuel as a Percentage of Electric Power Production Costs 2007 Fuel 77% Fuel 92% Fuel 26% O&M 74% 4% 7% 11% 26% 52% Conversion Fabrication Waste Fund Enrichment Uranium O&M 23% O&M, 8% Coal Gas Nuclear Nuclear Fuel Cost Components Source: Global Energy Decisions Updated: 6/07 16

17 U.S. Nuclear Industry Capacity Factors * * Source: Global Energy Decisions / Energy Information Administration Updated: 4/08

18 Significant Events at U.S. Nuclear Plants: Annual Industry Average, Fiscal Year Significant Events are those events that the NRC staff identifies for the Performance Indicator Program as meeting one or more of the following criteria: degradation of important safety equipment; a major transient or an unexpected plant response to a transient; degradation of fuel integrity, the primary coolant pressure boundary, or important associated structures; a reactor trip with complications; an unplanned release of radioactivity exceeding the technical specifications or regulations; operation outside the technical specification limits; other events considered significant Source: NRC Information Digest, 1988 is the earliest year data is available. Updated: 11/07 18

19 Expanding Duke s Nuclear Fleet Proposed William S. Lee III Nuclear Station Site: Gaffney, South Carolina Station capacity: 2,234 megawatts Number of units: 2 Reactor technology: Westinghouse AP1000 pressurized water reactor Architect/Engineer: Shaw Passive design features Construction & operating license application submitted to U.S. Nuclear Regulatory Commission in December 2007 McGuire Nuclear Station Oconee Nuclear Station Lee Nuclear Station Catawba Nuclear Station 19

20 What is Driving the Renewed Interest in Nuclear in the U.S. Need for baseload generation Climate change concerns and potential controls on carbon emissions Increasing support for nuclear energy from the public and policymakers Tremendous safety and performance record of existing nuclear fleet 20

21 Growing Need for Additional Baseload Capacity U.S. Energy Information Administration 2007 Annual Energy Outlook Electricity demand in 2030 will be 45% greater than today To maintain current fuel supply mix would mean building: 21

22 Climate Change Considerations 22

23 Public, Policymakers Support for Nuclear Power Polls show record high support for nuclear energy Governors, state and county officials express desire for new plants in their districts Energy Policy Act of 2005 bipartisan support for new nuclear plant construction 23

24 Key Issues for New Nuclear Plants Economics & Financing Spent Fuel Management Workforce Manufacturing 24

25 Economics of New Baseload New baseload capacity will be expensive Key financial considerations Loan guarantees from the federal government Supportive rate policies at the state level New nuclear plants will be competitive with other new sources of baseload electricity 25

26 Spent Fuel Management Spent Fuel Pool Storage Dry Cask Storage 26

27 U.S. Department of Energy s Yucca Mountain Site 27

28 U.S. Spent Fuel Policy Direct Disposal v. Recycle Japan s Rokkasho Recycling Complex U.S. Department of Energy Global Nuclear Energy Partnership 28

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