New Nuclear PlantsIn the United States:Progress and Expectations

U.S.-Japan RoundtableOn Nuclear Energy Cooperation

February 23, 2011

Near-Term Market Signals Negative …

North American electricity demand struggling back to pre-recession levels

Most regional power markets likely to remain oversupplied for the next several years

Spot power prices projected to remain soft in 2011-2012 at least

Low natural gas prices likely to persist

No price on carbon until …?

… But Have the Long-Term Fundamentals Changed?

02468

101214

'00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11

U.S. Natural Gas Wellhead Prices(In 2010 dollars per thousand cubic feet)

Sources: Energy Information Administration, Ventyx Velocity Suite

Age of U.S. Generating Capacity Years

Long-Term Fundamentals Remain Solid

<10

10-19

20-29

30-39

40+

U.S. Needs 24% MoreElectricity by 2035

4,000

4,500

5,000

5,500

2010 2015 2020 2025 2030 2035

Nuclear New Build: Progress Continues

12 COL applications (20 reactors) and two early site permits under NRC review

Two combined construction/operating licenses expected late this year or early next year

– Vogtle 3 & 4

– V.C. Summer 2 & 3

Three design certifications expected this year

– ABWR

– AP1000

– ESBWR

Economics of New Nuclear Capacity

Economic case for new nuclear capacity still solid in regulated markets

– Analysis by regulated companies and public service commissions based on long-term levelized costs

Economic case for new nuclear capacity highly stressed in merchant markets

– Plant must be competitive on commercial operation date

New Plant Financing: Mixed Results

DOE loan guarantee program a struggle

– Additional loan volume difficult

– Challenges with credit subsidy cost calculations

Construction work in progress in regulated states successfully implemented in Fla., Ga., S.C.

President Obama at the International Brotherhood of Electrical Workers Local 26 headquarters in Lanham, Md., for the announcement of an $8.3 billion loan guarantee offered to the Vogtle project on Feb. 16, 2010

V.C. Summer 2 & 3

Owners: SCANA 55%, Santee Cooper 45%

Location: Jenkinsville, S.C.

Design: AP1000

Anticipated COL approval: late 2011/early 2012

Spending as of Sept. 2010: $1.38 billion

Scheduled start-up: 2016, 2019

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Overview of Project Status

Note: Amounts are as of September 2010 BLRA Quarterly Filing

SCANA Generation Mix – 2009 and 2019

As of December 31, 2009

Non-emitting 23.4%

Non-emitting 59.4%

Module Assembly Building & Unit 2 Excavation

Soldier Pile wall

Auxiliary Building Module

Images are copyrighted and are courtesy of Westinghouse Electric Company LLC

Sanmen Unit 1 June 29, 2009

Comprised of 72 sub-modules

Size:44’-0” x 68’-9” x 68’-0”

Weight:850 - 1150 tons

Vogtle 3 & 4 Owners: Georgia Power 45.7%,

Oglethorpe Power 30%, MEAG 22.7%, Dalton Utilities 1.6%

Design: AP1000

Location: Burke County, Ga.

Anticipated COL approval: late 2011

Employees on site: Currently 1,500, at peak about 3,500, permanently about 800

Scheduled start-up: 2016, 2017

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Background

Began planning for generation in 2005 to meet demand

The Southeast has a projected growth rate of 34% in kWh sales between 2008 and 2030

Filed for early site permit in 2006, granted in 2009

Entered into an EPC contract with Westinghouse and Shaw in 2008

PSC certified the units and Senate Bill 31 passed in 2009

Customers throughout Georgia will benefit

Received DOE loan guarantees in 2010

Project Financials

Estimated total cost of the units—$14 billion

Georgia Nuclear Energy Financing Act reduces certified costs for Georgia Power Co. from $6.4 billion to $6.1 billion

Cumulative amount spent by Georgia Power Co. through year-end 2010—$1.3 billion (includes financing)

Vogtle Unit 3 Nuclear Island

Sanmen Basemat Rebar

Arrival of First Containment Vessel Bottom Head Plate

Sanmen Containment Vessel Bottom Head

Vogtle Module Assembly Building

Sanmen Structural Module

Summary

The NRC’s new licensing process is working successfully

Public opinion is favorable

Incorporating construction techniques and lessons learned

Projects are on schedule and within budget

The Next Nuclear Plant: Watts Bar Unit 2

Project remains on schedule and under budget

Fuel load April 2012 Full power operations

October 2012 Engineering 90% complete Construction 64%

complete 3,500 people working

on-site

Global Leadership in Development of Uranium Enrichment Capacity and Technology

GE-HitachiLaser Enrichment

AREVACentrifuge Enrichment USEC

Centrifuge Enrichment

Urenco-USACentrifuge Enrichment

$400 Billion Global Nuclear Energy Market

Sources: International Atomic Energy Agency, World Nuclear Association

Worldwide Development 65 reactors under construction 156 reactors on order or planned

50

27 18

5

14

11

China IndiaRussia

Planned

UnderConstruction