OPGs Nuclear Operations: Progress, Performance and Environmental Benefits

1
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

2
CONTENTS

• Nuclear Energys Role in a Carbon Constrained
  Economy
• OPG and its Nuclear Operations
• Summary

3
Nuclear Power Produces Almost 15 of Canadas
Electricity
Source National Resources Canada, 2005/Canadian
Nuclear Association April 2006
4
Nuclear Energy Can Play an Important Role in
Mitigating Climate Change
Source Japanese Central Research Institute,
2002/Canadian Nuclear Association April 2006

• Globally, 2 to 3 billion tonnes of CO2 avoided
  per year
• In Canada, CANDU reactors avoided 1.4 billion
  tonnes of emissions since 1972

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)

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• OPG and its Nuclear Operations

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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.

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OPG Profile
TWh

• 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

Electricity Production
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
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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

• Unit capability factor percentage of maximum
  electricity a plant can
• supply limited only by factors within the control
  of plant managers.

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Mitigating Climate Change
CO2 Total Emissions (tonnes) Avoided by OPG
Nuclear -- 1999-2005
12
Mitigating Climate Change Pickering A, Unit 1

• 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
  

13
OPG Nuclear Has Strong Community Support
Pickering Tree Planting
Darlington Waterfront Trail
Darlington Bird Houses

• 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

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
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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
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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
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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

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New Nuclear

• 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.

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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)
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