Reactor Decommissioning Marketplace Perspective Ken Robuck – Decommissioning Focus & Commitment President - Logistics, Processing and Disposal (LP&D) EnergySolutions Proprietary Information 1 EnergySolutions D&D Commitment EnergySolutions is growing and committed to supporting the commercial nuclear industry Commercial nuclear D&D is our #1 “Strategic Initiative” for the future We are expanding our resources and committing to the future EnergySolutions Proprietary Information 2 EnergySolutions D&D Team Ken Robuck John Sauger Operations • • Tom Nauman Business Development John Hess Commercial Our EnergySolutions leadership team brings over 50 combined-years of direct hands-on D&D experience Our D&D projects include: SONGS Zion Fukushima Daiichi Maine Yankee EnergySolutions Proprietary Information Big Rock LaCrosse Connecticut Yankee TMI-2 Humboldt Bay Fort St. Vrain Saxton Millstone-1 Dresden-1 3 D&D Market Overview Tom Nauman Senior VP of D&D Business Development EnergySolutions Proprietary Information 4 Decommissioning Strategic Initiative • EnergySolutions for the last 20-plus years has been a leader in D&D From Fort St. Vrain to San Onofre … EnergySolutions has delivered • EnergySolutions has been a reliable partner to our clients and the future of nuclear power hangs in the balance of successful D&D • EnergySolutions is committed to Safety and Environmental Stewardship • We need to “End with the Start in Mind” Earning the trust of all stakeholders is key to success EnergySolutions is uniquely committed to making the investments necessary to be positioned for the upcoming wave of D&D projects. Examples include: Waste Management, Transportation, & Disposal Infrastructure Having the resources necessary to provide Technical “Solutions” Providing the capital commitment to remove financial barriers EnergySolutions Proprietary Information 5 Key Nuclear Statistics (January 2015) • • • • 30 NRC regulated reactors in the US have entered into D&D 12 Units have completed DECON 6 Units - DECON is underway or beginning (Includes SONGS 2&3) 12 Units are in SAFSTOR (Including VY, Kewanee & Crystal River) 30 countries worldwide are operating 437 nuclear reactors for electricity generation and 71 new nuclear plants are under construction in 15 countries License renewal: 75 reactors have received 20-year license renewals to operate for a total of 60 years, 25 reactors have applied for or announced intentions to renew their licenses for another 20 years. Average D&D costs per unit have increased significantly to a range exceeding $1B/unit (inclusive of associated fuel and site restoration costs) EnergySolutions Proprietary Information 6 • Current Domestic D&D Active Projects Over the past 18 months, 5 commercial nuclear reactors have entered the initial D&D process and 4 units are continuing active DECON activities Vermont Yankee LaCrosse Kewaunee Humboldt Bay Zion 1 & 2 San Onofre Crystal River Active DECON projects (Humboldt Bay, Lacrosse, and Zion 1&2) EnergySolutions Proprietary Information Newly Retired Units Entering SAFSTOR (Crystal River , Kewanee & Vermont Yankee) Newly Retired Units DECON D&D Op’s Contract “DOC” Under Development” (SONGS 2/3) 7 International Commercial Nuclear D&D Amenable Market International Commercial Nuclear D&D Market ($B) 2015 to 2025 Total $ Billions* United States $13.5 $29.0 Projected International Commercial D&D Market Growth ($B) Europe $18.7 $131 $150 $89 $100 $58 Asia Pacific $20.3 $27 $50 $21.5 $18 UK Russia $0 2015 2020 2025 2030 2035 Approximately half of the world’s nuclear reactors are expected to be closed by 2030, creating a substantial market for the commercial nuclear reactor decommissioning industry in the years to come, states a new report from business intelligence experts GlobalData. EnergySolutions Proprietary Information 8 Domestic Commercial Nuclear D&D Amenable Market Plants Actively Pursuing DECON or Entering SAFSTOR 2015 2015 Domestic Commercial D&D Market Total $ Billions* SONGS $53 $60 Crystal River $0.6 $0.1 Kewanee $1.2 $1.0 $1.0 $4.3 Vermont Yankee $50 $37 $40 $23 $30 $20 Humboldt Bay $10 LaCrosse $0 $8 $10 2015 2020 2025 2030 2035 * Estimates include Spent Fuel Management Costs EnergySolutions Proprietary Information 9 License Stewardship “Zion Model” • What is the Zion D&D model and why is it a good for the Industry…and ES? D&D is not a typical Utility core competency Transfer risk for D&D – one contracting entity to carry the risk SAFSTOR is not a low risk model Disposal space is finite Regulatory baselines can change (Fukushima) Plants continue to need managing – cost money Stakeholders do not like multi-generational “mothballing” the problem • • We have proved accelerated cleanup can be achieved at lower cost The business model is good for ES. It provides a long term project backlog and early waste management and disposal EnergySolutions Proprietary Information 10 Zion Model D&D -“Different by Design” • EnergySolutions acquired the Zion plant on September 1, 2010 10 CFR 50 Licenses transferred from Exelon to ZionSolutions NDT funds transferred to ES/ZS Trustee • 10-Year Maximum Completion Schedule 12-14 years earlier than Exelon’s previous schedule Current plan is to finish in 8-9 years Exelon’s Schedule ZionSolutions’ Schedule D&D Planning Start 2013 2010 D&D Operations Start ~2015 2010 Site Restoration Complete 2032 2020 2019 EnergySolutions Proprietary Information 11 Zion Project Update John Sauger Executive VP of D&D Operations EnergySolutions Proprietary Information 12 Zion Project Status • Key Project Status & Overview ISFSI and Spent Fuel Campaign Reactor Vessel Internal Segmentation License Termination Plan Development and Submittal Schedule & Upcoming Major Milestones Cost Projection Update EnergySolutions Proprietary Information 13 Zion ISFSI • • • • Industry record setting cask loading campaign (61 casks in 52 weeks) Largest Decommissioned site ISFSI in the US to date Extra effort (fuel bale repairs) expended to ensure ultimate compliance with TBD Department of Energy requirements First modern D&D ISFSI Security command center to be accepted by NRC Zion Fuel Transfer Team - January 10, 2015 EnergySolutions Proprietary Information 14 Reactor Vessel Internals Segmentation EnergySolutions Proprietary Information 15 Reactor Vessel Internals Segmentation • Mechanical cutting completed in both Reactor Vessels. Utilized mechanical cutting to avoid significant secondary waste creation and eliminate the significant radiological concerns experienced in previous D&D projects Lessons learned and experience to provide benefit to future D&D projects • Most cost effective vessel internal segmentation project to date Optimized cutting and waste loading campaign to minimize class B&C waste costs Worked both units in parallel to stay off of critical path and not interfere with Spent fuel loading • Setting up for innovative reactor vessel segmentation project that will allow for gondola car transportation of vessel and Class A disposal at Clive EnergySolutions Proprietary Information 16 License Termination Plan Submittal • • The Draft Zion License Termination Plan was finished and submitted to the NRC in December 2014 End State Conditions Include: Lake Intake and Discharge Piping abandoned in place All Class A,B & C waste disposed off site Spent Fuel & GTCC in Dry Storage on ISFSI ISFSI, switchyard, roads, rail & fences remain Land restored to allow unrestricted use of the site IAW NRC criteria with the exception of the ISFSI All structures removed to 3 ft below grade The NRC License revised for ISFSI only and transferred back to Exelon Land returned to Exelon for future beneficial re-use EnergySolutions Proprietary Information 17 Zion Project: Schedule Update • Schedule Update per Exelon Agreement: Major Milestones Include: Completion of ISFSI (Complete) Completion of Reactor Vessel Segmentation (Complete) Completion of Major Component Removal Projects (In Progress) Submittal of approval of LTP (Complete) Completion of Radiological DECON (2018) Completion of Final Site Survey (FSS) (2018) Completion of Site Restoration (2019) EnergySolutions Proprietary Information 18