Darlington Nuclear Generating Station - vital part of Ontario s energy supply mix

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1 Darlington Nuclear Generating Station - vital part of Ontario s energy supply mix CNSC Public Hearing on Matters related to Darlington Refurbishment, Darlington Waste Management Site and Darlington Operating License CMD12-H13.83 Ron Oberth President Organization of CANDU Industries (OCI) December 4, 2012

2 OCI Overview OCI is an industry association representing 180 private sector suppliers of products and services to the Canadian and offshore nuclear industries. OCI member companies, located mainly in Ontario, employ more than 12,000 highly qualified nuclear specialists. Many OCI companies are smaller enterprises located in communities across southern Ontario. Skilled and well-paid jobs in OCI companies are vital to the economic health of these communities creating long term employment opportunities for local graduates Promoting a Healthy Nuclear Industry

3 Chalk River Nuclear Labs Key organizations and facilities in Ontario s nuclear industry Darlington site Bruce site Pickering site Network Organizations

4 Nuclear Power is Critical to Ontario s Economy Reliable and cost competitive electricity supply is a cornerstone of Ontario's economy Nuclear supplies more than 50% of Ontario s electrical energy Darlington produces 3500 MWe of electricity at just over 5 cents/kwh this is less than half the cost of electricity from wind and just over a tenth of the cost of solar electricity. Ontario s Long Term Energy Plan forecasts that the price of electricity in Ontario will increase by 30% over the next five years as more costly renewables come on line Removing 3500 MWe of low cost power from Ontario s energy mix would have serious and broad economic consequences

5 Capacity Contribution at Time of Peak (MW) Ontario needs a robust and diversified power system to sustain and attract industry OPA Supply-Demand Forecast shows surplus supply in near term, adequate supply mid term and need for new supply in 2022 (March/12) 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5, Coal Nuclear Gas Hydroelectric Other Renewables Demand Response Pickering Continued Low Growth: Demand & Reserve Medium Growth: Demand & Reserve High Growth: Demand & Reserve

6 Darlington is key to the Durham Region Economy Refurbishment of Darlington will create 2000 direct jobs and thousands of indirect jobs across the Durham Region The continued operation of Darlington for another 25 years beyond refurbishment will sustain 2500 skilled jobs in Durham with attendant positive impact on local business, schools, colleges and universities in the region

7 Darlington is a Top Performer Darlington is one of the top performing nuclear units in the world - its performance was recognized at an Institute for Nuclear Power Operations event in Atlanta in November Darlington has received numerous Safety and Operational Awards over the last five years from international associations Darlington has also been given various international environmental awards from the Wildlife Habitat Council and other similar bodies.

8 Darlington benefits the Environment The latest Ontario Environment Ministry Annual Greenhouse- Gas Report describes climate change as the defining issue of our times New York City Mayor Michael Bloomberg asserted that Hurricane Sandy should compel all elected leaders to take immediate action to deal with the risks of climate change The replacement of Darlington's electrical output by coal burning units would create an additional 20 million tonnes per annum of greenhouse gases It would be irresponsible to replace the output of four units at Darlington with electricity from fossil generating units

9 CO 2 Emissions (g/kwh) Nuclear has the lowest lifecycle GHG footprint of all generation sources Source: IAEA Spadero et al Coal Oil Natural Gas Solar Panels Electric Energy Technology Wind Hydro Nuclear

10 Conclusion The Organization of CANDU Industries encourages the Canadian Nuclear Safety Commission to approve the three subject Darlington-related projects as quickly as possible so that Ontario and Canada can benefit from the significant socio-economic and environmental benefits that will be result from the continued operation of this important nuclear power generation facility.

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