Proud To Power Iowa. Chief Nuclear Officer, FPL Group. January 9, Today, and Into the Future

Transcription

1 January 9, 2014 Chief Nuclear Officer, FPL Group Proud To Power Iowa Today, and Into the Future Tom Vehec Site Vice President, Duane Arnold Energy Center

2 NextEra Energy (NYSE: NEE) is comprised of two strong businesses supported by a common platform $17.5B Consolidated Revenues 46,400 MW in operation 14,300 employees One of the largest U.S. electric utilities 4.8 MM customer accounts U.S. leader in renewable generation Assets primarily in 25 states and Canada World s largest generator of renewable energy from the wind and sun No. 1 in electric and gas industry in Fortune s 2016 list: World s Most Admired Companies Recognized often by third parties for its efforts in sustainability, corporate responsibility, ethics and diversity 2

3 NextEra Energy is the second largest utility company in North America and fifth largest in the world by market capitalization 3 NextEra Energy generates energy in 27 states and Canada

4 NextEra Energy s nuclear fleet is 4th largest in MW generation and number of reactors in the U.S. Point Beach (Wisconsin) 1,193 MWe Seabrook (New Hampshire) 1,245 MWe St. Lucie (Florida) 2,000 MWe Duane Arnold (Iowa) 615MWe Turkey Point (Florida) 1,600 MWe NextEra Energy s nuclear plants represent approximately 27 percent of our generation 4

5 5 History of Duane Arnold Energy Center

6 Duane Arnold Energy Center Has Three Owners NextEra Energy Resources owns 70% and operates the plant Largest generator of wind and solar power in North America In Iowa, wind farms in Hancock, Osceola, Story, and Winnebago counties Central Iowa Power Cooperative (CIPCO) owns 20% Member-owned not-for-profit with 13 member-owned rural electric cooperatives and associations CIPCO is Iowa's largest cooperative energy provider with nearly 70 years of service to our member systems Corn Belt Power Cooperative owns 10% Supplies electricity to nine member cooperatives and one municipal cooperative that serve 41 counties in northern Iowa 6

7 Brief History of Duane Arnold Energy Center Pre-construction activities begin in October 1969 DAEC produced its first electrical power to the grid on May 18, 1974 Reached 100% power for the first time August 12, 1974 Originally rated at 550MW Estimated to have saved 55,000,000 tons of coal and avoid disposal of 8,000,000 tons of slag and fly ash over first 40 years of operation 7

8 Splitting Atoms Releases Neutrons, Making Heat Heat Neutrons 8

9 9 Heat Produces Steam, Generating Electricity

10 Containing the Power Containment Vessel 1.5-inch-thick steel Shield Building Wall 3-foot-thick reinforced concrete Dry Well Wall 5-foot-thick reinforced concrete Reactor Vessel 4- to 8-inches thick steel Fuel

11 The Source of the Power The energy from one uranium fuel pellet equals about: 2,000 pounds of coal, or 175 gallons of fuel oil

12 The Nuclear Power Industry has the Highest Security Standards of any U.S. Industry. Extensive Security Program DAEC s security programs meet strict NRC standards and oversight All of the DAEC s armed officers are former military, police or have field experience with a criminal justice degree Layer upon layer of security systems Experienced employees DAEC has received 2 awards from the National Guard and Reserve organization for our support for hiring Guard and Reserve veterans. 12

13 All Fuel Stored On-site Spent Fuel Pool What happens to the Spent Fuel? Robust steel canisters Canisters stored inside concrete vaults Fuel remains in canister for transport 13

14 All NextEra Energy nuclear plants are designed for and practice responding to even the most unlikely scenarios Planning, preparation is key Seasonal readiness: Formal review of plant equipment and personnel Formal preparation for worst case severe weather Preparation includes: Flooding, tornadoes and earthquakes Pre-staging tools, materials, fuel and equipment Pre-staging recovery teams During 2008 s 500-year flood, the DAEC continued to operate safety and reliably because of design and elevation. Seismic monitoring capability 14

15 15

16 Invested in Powering Iowa s Future Operating license renewed through 2034 Capacity now 625MW Energy for ~500,000 households Power Purchase Agreement with Alliant Energy through 2025 We continue to invest in long-term equipment reliability We are the lowest cost nuclear plant for our size in the country. 16

17 Challenges Challenges and Opportunities Regulatory costs continue to climb Low natural gas prices driving closure of less viable nuclear plants based on purely economic vs. strategic decisions; Vermont Yankee Pilgrim - Massachusetts Oyster Creek New Jersey Fitzpatrick New York Kewaunee Wisconsin (Note all of the above were single unit plants like Duane Arnold) Opportunities HSB 651 tax exemption on inventory parts currently in Iowa house for approval, would save the plant approx. $1M/year. Extension of the PPA with Alliant to the end of the current license in We have commenced discussions with Alliant on this topic already. 17

18 Duane Arnold Energy Center Community Benefits Employment 580 employees 2,350 direct & indirect jobs $255,000,000 of economic activity in Iowa Employees donate $100,000 each year to local non-profits Environment 500 acre site; land used for crops and animal grazing, and lease dollars are distributed as charitable contributions to community. CO 2 reduction of 4 million tons per year Annual equivalent of removing 800,000 cars from the road 18

19 Duane Arnold s 2015 Charitable Contributions Human Services Variety, the Children s Charity American Cancer Society Habitat for Humanity Education Future City Eastern Iowa Science & Engineering Fair Science Center The Environment Wickiup Hill Community Development Palo Fire Department Cedar Rapids Metro Economic Alliance Iowa Association of Business and Industry 19

20 Engaging with Our Community Employees are proud to play an active role in the community. 20

21 Powering Iowa and its Economy with Safe, Clean, Reliable Energy today, tomorrow and for years to come