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OPGs Nuclear Operations: Progress, Performance and Environmental Benefits Pierre Charlebois Chief Nuclear Officer Ontario Power Generation Engineering Institute of Canada Climate Change Technology Conference Ottawa, Ontario May 12, 2006 Slide 2 CONTENTS 1. Nuclear Energys Role in a Carbon Constrained Economy 2. OPG and its Nuclear Operations 3. Summary Slide 3 Nuclear Power Produces Almost 15% of Canadas Electricity Source: National Resources Canada, 2005/Canadian Nuclear Association April 2006 Slide 4 Nuclear Energy Can Play an Important Role in Mitigating Climate Change Globally, 2 to 3 billion tonnes of CO2 avoided per year In Canada, CANDU reactors avoided 1.4 billion tonnes of emissions since 1972 Source: Japanese Central Research Institute, 2002/Canadian Nuclear Association April 2006 Slide 5 Leading Environmentalists Support Nuclear the world nuclear industrywill give civilization the chance to survive through the difficult times soon to come. James Lovelock, originator of the Gaia Theory Nuclear energy is the only non-greenhouse gas emitting energy source that can effectively replace fossil fuels and satisfy global demand. Patrick Moore, co-founder of Greenpeace and Chairman and Chief Scientist of Greenspirit Strategies Ltd. Nuclear power already provides 18 per cent of the worlds electricity, with no CO2 emissions. Tim Flannery, The Weather Makers (2006) Slide 6 OPG and its Nuclear Operations Slide 7 OPGS MANDATE Operate assets cost effectively and efficiently Continuously improve our nuclear generation and benchmark its performance Expand, develop and/or improve hydroelectric Operate fossil plants according to commercial principles until they shut down under Ont. Govt. coal replacement policy. Follow highest standards of corporate governance, social responsibility, corporate citizenship and environmental stewardship. Slide 8 OPG Profile 108.5 TWh in 2005 Approx. 70% of Ontarios electricity generation 22,173 MW capacity Nuclear: 6,606 MW Fossil-fuelled 8,578 MW Hydroelectric: 6,982 MW and Wind: 7 MW Approx. 11,000 employees TWh Electricity Production Slide 9 OPGs Nuclear Operations 10 nuclear units at 3 stations Pickering A in service: 1971-73 2 operating units 2 others in safe storage 1,030 MW Pickering B in service: 1983-86 4 units 2,064 MW Darlington in service: 1990-93 4 units 3,512 MW Nuclear = 30% of our capacity, but 41% of our production (2005) OPG nuclear delivered almost 30% of Ontarios electricity (2005) Pickering A and B Darlington Nuclear GS Slide 10 OPGs Nuclear Performance Is Improving The Unit Capability Factors of the Darlington and Pickering B stations have increased over the past three years* In 2004 and 2005 Darlington was the best performing multi-unit nuclear station in Canada Four of the top 10 CANDU units worldwide are OPG units 0 50 100 Unit Capability Factor (%) 69 83 70 88 78 91 20032004 Pickering B 2005 20032004 Darlington 2005 Unit capability factor = percentage of maximum electricity a plant can supply limited only by factors within the control of plant managers. Slide 11 Mitigating Climate Change CO2 Total Emissions (tonnes) Avoided by OPG Nuclear -- 1999-2005 Slide 12 Returned to service Nov. 2005 Adds 515 MW of virtually emission-free capacity to Ontarios electricity supply 1.7 TWh since in operation = approx. 1.7 million tonnes avoided CO2 Potential to avoid 3 million tonnes CO2 annually Mitigating Climate Change: Pickering A, Unit 1 Slide 13 OPG Nuclear Has Strong Community Support Virtually no one could identify anything additional OPG should be doing in the [Durham] community; [community leaders] request was to keep doing what youre doing including continuing transparency and proactive communication 2004 Durham Community Research OPG and its nuclear station are dynamic forceshelping to drive the Citys success. Dave Ryan, Mayor of Pickering I get fewer complaints from the public about Darlington Nuclear than about any other business in the municipality. John Mutton, Mayor of Clarington November 2002 Darlington Waterfront Trail Darlington Bird Houses Pickering Tree Planting Slide 14 Many Ontarians Support Nuclear Energy 61% of Ontarians support nuclear power to produce energy 75% believe nuclear should play the same or an increased role in the next few decades 73% support upgrading or refurbishing Ontarios nuclear power plants 57% support building new nuclear power plants 79% agree that nuclear energy is reliable, affordable and environmentally clean. Source: Ipsos-Reid/CNA Jan. 2006 Slide 15 Timely Decision-Making is Critical December 2005: OPA releases Supply Mix Advice report on options for future development of Ontarios electricity system options include nuclear refurbishment/life extension...decisions about how and whether aging units are to be refurbished or replaced are complex, calling for extensive assessment and coordination. Ontario Government is studying the OPA report and developing its response. To achieve successful refurbishment project, decisions must be made in a timely manner Darlington Slide 16 OPG is Undertaking Nuclear Life Extension Feasibility Assessment Complete Plant Condition Assessment for Pickering B in 2007 Begin Environmental Assessment process Undertake safety reviews required by CNSC licensing requirements Conceptual engineering for replacement of components such as fuel channels and steam generators Project Plan and Business case must be approved by OPG Board and Ontario government Life-extension decision needed on Pickering B by 2008 to allow time for detailed engineering, planning and procurement Pickering B (foreground) Darlington Slide 17 OPG Needs Highly Qualified Employees to Support Operation and Nuclear Life Extension Workforce Demographics over 30% retirements at OPG nuclear in highly skilled trades and technical staff in next five years Life-extension/Refurbishment/New Build activity expected to increase in N. America/worldwide Intense competition for qualified people is expected Significant additional work for the manufacturing and service industry to support projects Slide 18 New Nuclear is not part of OPGs mandate OPG sites could be considered as possible sites for nuclear new build If shareholder asks, OPG would consider participating in new nuclear based on: our expertise in earning regulatory approvals; operating nuclear facilities. New Nuclear Slide 19 Summary Nuclear in Ontario is making an important contribution to CO2 emission reduction. OPG Nuclear production has been steadily increasing thereby improving contributions to greenhouse gas emission reduction and helping to moderate the prices of electricity in the province OPG is preparing for the future by undertaking the necessary planning for plant life extension Pickering A Nuclear GS (in foreground) Slide 20 OPGs Nuclear Operations: Progress, Performance and Environmental Benefits Pierre Charlebois Chief Nuclear Officer Ontario Power Generation Engineering Institute of Canada Climate Change Technology Conference Ottawa, Ontario May 12, 2006