Atoms for Peace +50Atoms for Peace +50

Andy White – President & CEO, GE Nuclear Energy

Sustainable Nuclear GrowthSustainable Nuclear Growth

The original Atomic Industrial Forum members envisioned an Industry prospering through:

• Advanced Engineering

• Business Acumen

• Enlightened Public Policy

Suppliers, Owners & Policy Makers … All Have Key RolesSuppliers, Owners & Policy Makers … All Have Key Roles

Nuclear Industry SuccessNuclear Industry Success

• Safety

• Plant Performance

• Economics and owner value

• Environmental impact

The measures of success are the same today as they were 50 years ago:

Has The Vision of Atoms for Peace Been Achieved?Has The Vision of Atoms for Peace Been Achieved?

Nuclear Performance Gains UnparalleledNuclear Performance Gains Unparalleled

Safety & Performance Gains Are LinkedSafety & Performance Gains Are Linked

0%

50%

100%

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

Year

Cap

acit

y F

acto

r

0

500

1000

Gen

erat

ion

(B

illi

on

Kw

hr)71 71 74 77 76 74

80 85 87 89 90

RecordPerformance778 Billion kWhrs

GenerationCapacity FactorCDF

Nuclear Generation Costs Down 40% Nuclear Generation Costs Down 40%

Driven by Performance ImprovementsDriven by Performance Improvements

0

5

10

15

20

25

30

35

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

Gen

erat

ion

Co

sts

($/M

wh

r) 30.3 29.927.3

25.5 25.227.2

23.521.2 20.5 19.4 18.8

FuelCapital ImproveO&M

2002 Dollars

The EnvironmentThe Environment

Provides Emission Free & Sustainable Energy ResourceProvides Emission Free & Sustainable Energy Resource

Over the past 50 years, US Nuclear Plants Have:

• Generated 13.7 Trillion Kilowatt-Hours of Electricity

• Zero Carbon Depletion & Emission Free!

Avoiding:

• 3.1 Billion Metric Tons of Carbon

• 73.6 Million Tons Sulfur Dioxide

• 35.6 Million Tons of Nitrogen Oxides

BWR

PWR

The US Nuclear FleetThe US Nuclear Fleet

Anchors the Grid and Stabilizes Generation CostsAnchors the Grid and Stabilizes Generation Costs

Where Are We Today?Where Are We Today?

A Key Part of the US Energy Generation Portfolio A Key Part of the US Energy Generation Portfolio

Installed CapacityInstalled Capacity EnergyEnergy

11% 10%

31%

34%

14%

Hydro Nuclear

Coal

Gas

Other

8% 19%

51%

18%

4%

Hydro Nuclear

Coal

Gas

Other

Global Power GenerationGlobal Power Generation

335 GW Market Potential over Next 4 Years335 GW Market Potential over Next 4 Years35% of Orders Come from China35% of Orders Come from China

2003 – 2006 Orders Forecast2003 – 2006 Orders Forecast

Asia AIM Europe Ltn. Amer. N. Amer.

187

57 50

2815

China

125

Rest of Asia62

Rest of Asia62

Source: EPM S1 Forecast

(GW)(GW)

Improving PerformanceImproving Performance

Nuclear Economics Good for New UnitNuclear Economics Good for New Unit

0

5

10

15

20

25

30

35

40

ExistingNuclear Plant

New AdvancedNuclear

(ESBWR)

New Coal New CCGT Gas

$/M

Wh

r

Capital

O&M

Fuel

$37.3$34.4

$29.4

$22.5

Setting the Stage for New Nuclear PlantsSetting the Stage for New Nuclear Plants

Next Generation Reactors• Design Highlights

– 1,400 MWe Plant With Simplified Systems

– Passive Safety Features

• Overall Schedule

– Licensing Process Started 2002

– Regulatory Approval Expected 2006

• Key Benefits

– Faster Construction, Lower Costs

– Improved Safety and Security

– Improved O&M Costs

ESBWR Can Meet U.S. Owner’s New NeedsESBWR Can Meet U.S. Owner’s New Needs

Latest Design for U.S. MarketsLatest Design for U.S. Markets

ESBWRESBWR

Hydrogen Energy …Hydrogen Energy …

Advantages

• Most Abundant Element

• Catalytic Process Creates Water (Fuel Cells)

• Energy/kg = 3x Natural Gas or Gasoline

Advantages

• Most Abundant Element

• Catalytic Process Creates Water (Fuel Cells)

• Energy/kg = 3x Natural Gas or Gasoline

Nuclear Role

• HTGR - Zero Carbon Depletion & Emissions

Nuclear Role

• HTGR - Zero Carbon Depletion & Emissions

HH22 Energy … A Slow Transition Energy … A Slow Transition

The Challenge

• Infrastructure Not in Place

• Cost of Energy Drives Market - No Cost of Carbon Dioxide (Greenhouse) Today

The Challenge

• Infrastructure Not in Place

• Cost of Energy Drives Market - No Cost of Carbon Dioxide (Greenhouse) Today

Final ThoughtsFinal Thoughts

•Nuclear Energy Is Key To a Balanced Energy Portfolio

•Credits for Emission Free, Zero Carbon depletion Nuclear Energy

•Next Generation Reactors Address Safety & Economics

•Need New Unit Incentives For Customers

A Key Role In A Sustainable & Balanced PortfolioA Key Role In A Sustainable & Balanced Portfolio