2010

An Overview of Ameren Missouri’sCallaway Plant and Site Permit Legislation

2011

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AMEREN MISSOURI

Ameren Missouri (orange) 1.2 million Electric customers 126,000 Natural Gas customers 500 communities served 24,000 square mile territory 4,400 Employees

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AMEREN MISSOURI GENERATION…over 10,000 MW

Rush IslandJefferson Co.

1,204 MW1976

Taum SaukReynolds Co.

440 MW1963 & 2010

MeramecSTL Co.839 MW

1953

OsageLakeside, MO

234 MW1931

CallawayCallaway Co.

1,200 MW1984

LabadieFranklin Co.

2,407 MW1970

SiouxSt. Charles Co.

986 MW1967

KeokukIowa

137 MW1913

CTGsMO & IL

2,966 MW

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AMEREN MISSOURI – PLANNING FOR THE FUTURE

• Utilities are required to file an Integrated Resource Plan every 3 years• Ameren Missouri filed Feb. 23, 2011 (charts below from report)• A very important and very resource intensive process with a great deal

of discussion with stakeholders with a broad range of interestsLevelized Cost of Energy of Generation Options

Cents/KWh

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Missouri’s demand for electricity is expected to increase by 20 to 25 percent in the next 20 years.

The state of Missouri will need new base load generation in the future, even with implementation of energy efficiency programs and investing in renewable energy sources such as wind and solar.

Within the next 20 years, about 90% of Missouri’s coal-fired power plants may or could have to be retired

Anticipated federal regulations and consideration of federal carbon tax proposals would drive up the cost of power derived from fossil fuels

MISSOURI ELECTRICITY DEMAND

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MISSOURI’S AGING POWER PLANT FLEET

These plants provide 58% of Missouri’s capacity and 89% of our energy

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RETIRING U.S. POWER PLANTS

Nearly 70 percent of power plants are retired by the age of 50

The planning and construction process for major power plants is long, possibly more than a decade.

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POSSIBLE UPCOMING COSTLY REGULATIONS

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RESIDENTIAL RATES IN THE USA AND PERCENT CHANGE 2000-2010(EEI SURVEY - SUMMER 2010)

Over 15¢

Between 11¢ and 15¢

Between 9¢ and 11¢

Between 8¢ and 9¢

Below 8¢

Ameren Missouri 2%

Ameren Missouri 2%

CURRENT 12 MONTH AVERAGE(IN CENTS /KWH)

BASED ON EEI’S TYPICAL BILL SURVEY, SUMMER 2010. (Nebraska based on EIA data)

2000 - 2010ELECTRICITY PRICESPERCENT CHANGE USA

Average 39%

USA Average 39%

USA AVERAGE 11.74¢AMEREN MISSOURI 7.18¢39% BELOW USA AVERAGE

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AMEREN MISSOURI RESIDENTIAL RATES

• Ameren Missouri’s average electric rates are significantly below the national average.

Source: Edison Electric Institute (EEI)

1991 2001 2005 2006

8

7

6

10

2010National Avg.

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7.79Cents/KWh

6.98Cents/KWh 6.52

Cents/KWh

6.60Cents/KWh

Cen

ts p

er

KW

h

11.74Cents/KWh

2009

7.03Cents/KWh

7.90Cents/KWh

2010

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NUCLEAR ENERGY 101

and AMEREN MISSOURI’S CALLAWAY PLANT

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How many nuclear plants are

operating in the United States?

A) 17

B) 39

C) 104

D) 565

QUESTION:

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Nuclear power provides what percentage of electricity in the United States?

A) 5 percentB) 20 percentC) 46 percentD) 63 percent

QUESTION:

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Largest producer of nuclear energy in the

world

Nuclear energy provides 20% of U.S. electricity

A 1,200 megawatt reactor like Callaway powers 700,000 average households each year

Oldest operating plant is located in Oyster Creek, N.J. (1969)

UNITED STATES

104 reactors in 31 states

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CALLAWAY PLANT

Operating safely and reliably since Dec. 1984

4th highest lifetime generation among the 104 U.S. nuclear plants through 2010

18th highest lifetime generation, through 2010, among the 439 nuclear plants worldwide

Provides 19% of the total electricity generation for Ameren Missouri

In 2009, generated the most electricity in any calendar year since coming online in 1984 (10.2 million megawatt-hours)

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CALLAWAY PLANT – BENEFITS MISSOURI’S ECONOMY

By City: By County:

Fulton = 264 Callaway = 435

Columbia = 169 Boone = 181

Jefferson City = 151 Cole = 162

Holts Summit = 48 Gasconade = 35

New Bloomfield = 28 Montgomery = 30

Hermann = 27 Audrain = 21

Steedman = 25 Franklin = 13

Mokane = 23 St. Charles = 12

Auxvasse = 18 Warren = 6

Mexico = 17 Osage = 5

Montgomery City = 15 St. Louis, Madison, Moniteau (tie) = 2

Tebbetts = 13 All Other Counties = 5

All Other Cities = 113

Callaway Plant employs over 900 people

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Safety is our highest priority – Three Types:– Nuclear - protect the public and our environment– Radiological – limit our employees’ exposure to radiation– Industrial – protect our employees from injury

Completed one of our safest years in 2010: Had no Lost Workday Accidents Had zero nuclear safety events

NRC inspectors work at each plant for daily inspections Stringent physical security barriers & armed guards protect the plant Automatic shutdown mechanisms Highly-trained personnel – including Licensed Operators Plant Design includes multiple back-up safety systems

– Redundant (back-up) Systems– Alternate Sources of Water– Alternate Sources of Power

Radiological Emergency Response Plan– Protection of the General Public, 10 Mile Emergency Planning Zone

(EPZ)

SAFETY and SECURITY

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HOW DOES NUCLEAR ENERGY WORK?

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EARTHQUAKE IN JAPAN

• On March 11, 2011 a 9.0 earthquake struck off the coast of Japan

• The Fukushima Daiichi plants automatically tripped offline with emergency diesel generators supplying backup power to complete the shut down of the plant

• The resulting tsunami compromised the plant’s emergency power systems

• Japan has 54 nuclear reactors, with two more under construction

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FUKUSHIMA DAIICHI NUCLEAR POWER FACILITY BEFORE THE NATURAL DISASTERS

Unit 1Unit 2

Unit 3

Unit 4

Units 5, 6

At the time of the earthquakeReactors 1, 2 and 3 operating

Reactors 4, 5 and 6 shutdown for maintenance, inspection, refueling

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BOILING WATER REACTOR DESIGN AT FUKUSHIMA DAIICHI

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Examples of Differences Between U.S. and Japanese Reactor Operations

United States Japan

1. Post 9/11/01 actions to address large fires and explosions

1. No similar action taken

2. Independent regulatory agency with 4,000 employees and $1 billion budget

2. Regulator is part of Ministry of Economy, Trade and Industry

3. Industry organization for oversight and sharing operating experience – Institute of Nuclear Power Operations (INPO)

3. No similar industry organization

4. Site-specific simulator for each reactor; operators train one week out of six

4. Shared simulators for multiple plants

5. Command and control in the hands of highly-trained operators

5. Command and control in the hands of government and corporate management

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CALLAWAY PLANT DESIGN FEATURES

Emergency Safety Systems include multiple emergency power sources:• 2 Ameren power lines to the site• 2 Emergency Diesel Generators (onsite)• 1 power line from local Rural Co-op• 4 Standby Diesel Generators (offsite)

Additional Emergency Safety Features:• Steam powered cooling water pump with DC battery powered controls system

• A 30-day cooling water supply stored on-site in a seismically designed retention pond

• Severe Accident Management Procedures developed for beyond design events

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Offsite Emergency Generators

Inside Containment

Callaway Plant Safety Features

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NUCLEAR FUEL SAFEGUARDS

Nuclear fuel has three barriers to protect the public:

1. Fuel pellets are sealed in zirconium tubes

2. Fuel assemblies are enclosed in the steel reactor pressure vessel that is 8-inches thick

3. Reactor is enclosed in the concrete containment structure that is 4-feet thick

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All U.S. nuclear plants store their own used fuel

All the used fuel at Callaway Plant since 1984 is stored in a fuel pool about the size of a tennis court

U.S. Government is no longer funding a national repository underneath Yucca Mountain in Nevada

U.S. one of the few countries with a significant nuclear power program that does not recycle used fuel

MANAGING USED FUEL

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THE PATH FORWARD

The Missouri Utility partnership is committed to providing safe, clean, reliable and low cost nuclear power as a part of our state’s energy future.

Despite the recent tragedy in Japan, nuclear energy is a viable long term solution.

The U.S. and worldwide nuclear community will learn from the Japanese events and make our current fleet of plants, as well as future plants, even safer.

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ESSENTIAL FACTS ABOUT A SITE PERMIT

• Granted by the Nuclear Regulatory Commission

• Commonly used to preserve the option of nuclear power as a future energy source

• The application review takes up to three years and includes:

– Site safety analysis

– Environmental report

– Emergency planning information

• Requires studies and other expenditures totaling approximately $40 million

– Costs would be paid by Missouri’s electric service providers and would cost the average

residential consumer less than two dollars per year

– For commercial and industrial customers the impact is less than a 0.2% increase in rates.

• Streamlines process for obtaining a construction permit if Missouri decides that a new

nuclear plant is the best option for meeting future energy needs

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THE LEGISLATION

• HB 462 died without a vote on the Senate floor on May 13, 2011 (end of session)

• Was a compromise bill agreed to by all parties, including industrial customers

• Sen. Kehoe (R-dist. 6) – Jefferson City requesting Gov. Nixon to call a special session

• It would have allowed recovery of permitting costs over 20 years only after the NRC

grants the Site Permit (2014 timeframe) and the MO PSC deems expenditures prudent.

• Consumer Protections:

– Sets a hard $45 million cap on recoverable costs of a Site Permit

– Contains a clawback (includes all monies collected from consumers), plus interest and a

sharing of profits, if an approved Site Permit were sold or transferred to another utility or

company

– Contains a clawback for imprudence if the project doesn’t move forward in the future.

– Contains significant reporting requirements to the PSC on the project.

– Contains Office of Public Counsel (OPC) funding from MO General Revenue