Keynote Address 2007 Joint IEEE / HPRCT Conference. Jack Keenan Chief Nuclear Officer Pacific Gas and Electric Company

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1 Keynote Address 2007 Joint IEEE / HPRCT Conference Jack Keenan Chief Nuclear Officer Pacific Gas and Electric Company 1

2 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 2

3 History of Nuclear Plants in California 3

4 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 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). 4

5 Humboldt Bay Power Plant Humboldt Bay Power Plant was a 65 MWe, natural circulation boiling water reactor. Operated from 1963 to Plant is being decommissioned. 5

6 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 6

7 Recent Projects at Diablo Canyon ISFSI Low Pressure Turbine Replacement Steam Generator Replacement Instrumentation and Controls Obsolescence Program 7

8 NRC Expected New Plant Applications Number of Applications Cumulative Applications Cumulative Units

9 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 9

10 2006 WANO Unit Capability Factor - Percent

11 U.S. Nuclear Industry Capacity Factors * * Preliminary Source: Global Energy Decisions / Energy Information Administration Updated: 6/07

12 U.S. Electricity Production Costs , In 2006 cents per kilowatt-hour Coal Gas Nuclear Petroleum Production Costs = Operations and Maintenance Costs + Fuel Costs Source: Global Energy Decisions Updated: 6/07

13 WANO Industrial Safety Accident Rate

14 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. 14

15 Human Performance The Final Frontier 30 Design Accident rate evolution Regulations Procedures Training & Development 1 Human Performance 60 s 80 s 90 s 15

16 Diablo Canyon Significant HU Events by Year EFD Resets by Year 16 Sum of Event Year 16

17 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 17

18 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 18

19 In Conclusion PG&E Welcomes You to Monterey! Have a Safe and Enriching week. 19

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