Economic Assessment of Nuclear Power Plant Production ... 2... · The power production business using nuclear power plants has a risk. Therefore, the economical assessment of new

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© 2014 MITSUBISHI HEAVY INDUSTRIES, LTD. All Rights Reserved. ８**S-GE-20140003

Economic Assessment of

Nuclear Power Plant Production

using INPRO Methodology

IAEA INPRO 8th Dialogue Forum

August 26, 2014

Sumio FUJII Acting General Manager, Nuclear Systems Engineering Department, MHI

Ex-General Manager, corporate Nuclear Power Department, Hokkaido EPCO

(Note)

The presentation contains author’s personal views and estimations, which don’t

necessarily represent MHI’ official position.

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Contents

• User Requirements of INPRO and Model used in Assessment

• Model Case to Estimate the Production Cost

• Estimation of the Production Cost

• Sensitivities of Parameters Influencing the Production Cost

• Production Costs other than Model Case

• Conclusion

• Appendix 1. Items of construction cost

2. Progress of construction project

3. Variety of depreciation rules

4. Nuclear fuel cost in the market price

5. Prime rates and inflation rates

6. Load factor

7. Plant personnel needed

8. Administration and other operation expenditures

9. Annual earning, profit tax and balance sheet

© 2014 MITSUBISHI HEAVY INDUSTRIES, LTD. All Rights Reserved. 1

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User Requirements of INPRO

and Model used in Assessment


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INPRO User Requirements for SA of NES – Economics (1)

Economic basic principle BP: Energy and related products and

services from nuclear energy systems shall be affordable and available.

UR1 (Cost of energy): The cost of energy supplied by nuclear energy systems,

taking all relevant costs and credits into account, CN, should be competitive with

that of alternative energy sources, CA, that are available for a given application in

the same time frame and geographic region/jurisdiction.

• CR1.1 cost competitiveness

IN1.1: Cost of energy

AL1.1: CN < k * CA

(CN = cost of nuclear energy, and CA = cost of energy from alternative source;

factor k is usually > 1 and is based on strategic considerations.)


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UR2(Ability to finance): The total investment required to design, construct, and

commission nuclear energy systems, including interest during construction,

should be such that the necessary investment funds can be raised.

• CR2.1 attractiveness of investment

IN2.1: Financial figures of merit.

AL2.1: Figures of merit for investing in a NES are comparable with or better than

those for competing energy technologies.

• CR2.2 investment limit

IN2.2: Total investment

AL2.2: The total investment required should be compatible with the ability to

raise capital in a given market climate.


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UR3 (Investment risk): The risk of investment in nuclear energy systems should

be acceptable to investors.

• CR3.1 maturity of design

IN3.1: technical and regulatory status.

AL3.1: Technical development and status of licensing of a design to be installed

or developed are sufficiently mature

• CR3.2 construction schedule

IN3.2: Project construction and commissioning times used in economic

evaluation.

AL3.2: Times for construction and commissioning used in economic evaluation

are sufficiently accurate, i.e. realistic and not optimistic

• CR3.3 uncertainty of economic input parameters

IN3.3: A sensitivity analysis of important input parameters for calculating costs

and financial figures of merit has been performed.

AL3.3: Sensitivity to changes in selected parameters is acceptable to investor.

• CR3.4 political environment

IN3.4: Long term commitment to nuclear option.

AL3.4: Commitment sufficient to enable a return on investment.


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UR4 (Flexibility): Innovative nuclear energy systems should be compatible with

meeting the requirements of different markets.

• CR4.1 flexibility

IN4.1: Are the innovative NES components adaptable to different markets?

AL4.1: Yes.


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Model used in Assessment

• The objective of economics area of the INPRO methodology is to evaluate the

production cost of sustainable nuclear energy system in comparison with other

energy systems for the future.

• However, it is difficult to estimate the production cost of future system, for there is

no opened estimation of precise construction cost due to two reasons; vendors

don’t calculate it or it’s confidential even if calculated.

• On the other hand, there are many electric utilities run as private business

entities. Thus their accounts are opened to stockholders and investors in the form

of financial statements, which enable us to estimate construction costs of existing

nuclear energy systems.

• In this report production costs of Mitsubishi’ Gen-III 2660 MWt PWR power plant

equipped with fully digitalized control & safety protection system were studied by

referring electric power company’s financial reports together with some

estimations.

• The Model Case in this study is applicable to private entities because the

settlement method of bank loan interests, profit taxes and stock dividends in the

account considerably influences the cash flow and production cost. Hence, state-

owned utilities and some others are discussed separately.


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Model Case

to Estimate the Production Cost


Basic principles of economical assessment

The power production business using nuclear

power plants has a risk. Therefore, the economical

assessment of new power plant construction shall

be conservatively made based on actual previous

results together with pessimistic assumptions.

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Basic assumptions

• Two units of Gen-III 2660 MWt PWR power plant will be built in a site.

They will enter the power production in the year 201X and 201X+2

respectively.

• The construction project starts in the year 201X-10.

Now we are 10 years before the start of operation.

• The construction work is done under turn-key construction contract.

• The earth works & civil works start in the year 201X-8.

• The first unit enters into the operation in the year 201X.

• The second unit enters into the operation in the year 201X+2.

• Both units are operated with plant efficiency by 35 %. This leads to the

gross electric output of 931 MWe.

• The design life time of PWR is 60 years, however the duration of

operation is assumed to be 30 years for assessment of economics.

• In the year 201X+29 the first unit is shutdown for decommissioning.

• In the year 201X+31 the second unit is shutdown for decommissioning.


Go

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Assumptions concerning business entity (1)

A new whole sale company is established as a subsidiary of electric utility.

Construction phase

• The capital which is assumed around 20 percent of the maximum overnight cost is

shouldered by the mother electric utility (risk taker). Half of the capital is paid in for

the company establishment, and the rest half is paid at the moment of initial

concrete pouring for the first unit reactor building.

• The company borrows the amount of cash in shortage for the construction

payment with the prime interest rate from banks (risk avoiders). The bank loan

interest is added to the overnight cost. This leads to the swelling of constructed

plant assets.

Operation phase

• The company borrows the amount of cash in short after the start of nuclear power

plant operation, if necessary. It’s certain that the company will go into the

excessive debt in the balance sheet soon after the start of plant operation.

However, it’s assumed that no bankruptcy occurs and the company can borrow the

amount from the bank in any occasions.

• Null stock dividend is assumed for 30 years by taking into account that the

company is a subsidiary of electric utility, which can obtain profits through the retail

sale of electricity. © 2014 MITSUBISHI HEAVY INDUSTRIES, LTD. All Rights Reserved. 10

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Assumptions concerning business entity (2)

After 30-years operation

• The amount of reserve for spent fuel disposal (back end) has to be sufficient for

the total of spent fuel assemblies stored and that is to be saved in cash in the

balance sheet by the year 201X+31.

• The reserve for decommissioning which is 600 million US$ per unit, is to be saved

in cash in the balance sheet by the year 201X+31.


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Assumptions concerning construction (1)

Price of construction :

Costs specific to the site are not included such as;

Purchase of the land, charge for environmental condition survey service,

charge for feasibility study service, preparation/construction costs of

infrastructures outside the site land, and donations to local communities &

associations.

Population of stationed personnel working for the company :

30 to 300 increasing year by year during the construction of Unit 1.

They would be engaged in quality assurance program, commissioning

and preparation of operation.


(million US$) Unit 1 Unit 2

Machinery and equipment including installation charges 2300 2200

Civil works 400 200

Building constructions 350 300

Operation/administration facilities 200

Spent fuel storage facility 180

Go

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Assumptions concerning construction (2)

• Payment schedule : It was assumed that payments to vendors would be

made based on construction progress;


Year 201X-7 201X-6 201X-5 201X-4 201X-3 201X-2 201X-1 201X 201X+1 201X+9 Start of civil works First concrete of Startup test ▼ 　　▼ of Unit 1 　▼ of Unit 2 ▼ of Unit 1 ▼ of Unit 2Machinery and equipment 0.10 0.00 0.00 0.30 0.20 0.20 0.20

Unit 1 Civil works 0.20 0.15 0.15 0.15 0.15 0.10 0.10Building constructions 0.00 0.00 0.00 0.20 0.40 0.30 0.10Machinery and equipment 0.00 0.00 0.00 0.00 0.30 0.20 0.20 0.20 0.10

Unit 2 Civil works 0.00 0.15 0.15 0.15 0.15 0.10 0.10 0.10 0.10Building constructions 0.00 0.00 0.00 0.10 0.20 0.30 0.20 0.10 0.10

Common Spent fuel storage construction 1.00Operation/administration facilities 0.00 0.00 0.25 0.25 0.25 0.25 0.00

Go

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Assumptions concerning operation (1)

• Load factor : 90 % (55 % in the year for commissioning)

• In-house electric power consumption : 45 (MWe/unit)

• Population of plant personnel stationed: 700 persons for twin units

• Nuclear fuel cost : 70 (million US$/2660MWtEFPY) for front end.

3.5 (USD/MWh) for back end by assuming moratorium

for spent fuel disposal policy.

Procurements of refined uranium ore for every operation cycle were

supposed to be done in 3-years advance of loading.

No escalation was considered for the nuclear fuel cycle cost.

• Cost for preventive maintenance and repairs:

• Administration and other operation expenditures excluding labor cost:

21 (million US$) for single unit, 32 (million US$) for twin units


Preventive maintenance and repair Ratio to the initial value of

fixed property (%/year)

Machinery and equipment 2.0

Civil works 1.0

Buildings 1.0

Go

Go

Go

Go

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Assumptions concerning economic & accounting conditions

Common to construction phase and operation phase

• Prime rate of bank loan : 2.0 (%/year)

• Escalation rate : 1.0 (%/year)

Escalation is not applied to the construction price, nuclear fuel price,

reserve for spent fuel and reserve for decommissioning. Other

parameters including the electricity price is escalated by this rate.

• Discount rate for net present value (NPV) calculation : 2.5 (%/year)

Usually the discount rate for NPV should be assumed higher than the

bank loan rate by considering the risk of project and inflation.

• Labor cost : 120,000 (US$/person/year) for employees

During the operation

• Property tax for fixed assets : 1.5 (%/year) of the land and plant assets

• Depreciation of properties :

The total cost for machinery & equipment is depreciated by fixed value

(6.25%/year) in 16 years.

The total cost for civil works & buildings is depreciated by fixed value

(3.33%/year) in 30 year.

• Profit tax rate for annual profit : 30 (%)


Go

Go

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Estimation

of the Production Cost


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Account of the model case

Definition in this study :

• The production cost is defined as the whole sale price by which the cash in the

balance sheet becomes equal to the total of the reserves for spent fuel

disposal & decommissioning and the capital after 30 years operation.

Account of Model Case

Whole sale price and account of model case

• In case where the whole sale price is assumed 5.17 cent/kWh in the year

201X, at the moment of operation start of the second unit, that is the year

201X+2, the balance sheet of the production company is;


Assets (Million US$) Liabilities (Million US$)

Cash 59 Bank loan 5200

Nuclear fuel in storages and reactors 462 Reserve for spent fuel 83

Machinery 4174 Reserve for decommissioning 80

Civil & buildings 1236 (Total) (163)

Land ? Capital (stock) 1,400

Retained Earnings - 832

Total 5,931 Total 5,931

Go

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Production cost of the model case

• The whole sale price of 5.17 cent/kWh in the year 201X and 7.08 cent/kWh in the

year 201X+31 (the average in the life is 6.097 cent/kWh) results in the balance

sheet of the year 201X+31;

• The cash 4356 million US$ will be used for spent fuel disposal, decommissioning,

disposal of nuclear fuel in the reactor and stock dividends.

• Thus the stock holders can receive the amount of face values of their investments

(1400 million US$) in cash, but its net present value (NPV) is only 606 million US$

by the discount rate of 2.5 %/year. This situation is acceptable to the mother

electric utility because she can earn profits through retail sales of electricity.



Cash 4,356 Bank loan 0

Nuclear fuel in rectors 210 Reserve for spent fuel 1,523

Machinery 0 Reserve for decommissioning 1,200

Civil & buildings 0 (Total) (2,723)


Retained Earnings 443


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0.00

2.00

4.00

6.00

8.00

10.00

12.00

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32

Production cost in each year

Production cost in the life

Whole sale price in the life

Whole sale price in each year

Trend of production cost of the model case


(cent/kWh)

5.66 cent/kWh

Year after the first unit start

Loss

Profit

End of depreciation of

machinery & equiment

6.097 cent/kWh

Shutdown of

the first unit

6.10 cent/kWh 5.17 cent/kWh

11.74 cent/kWh

7.08 cent/kWh

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0.00

2.00

4.00

6.00

8.00

10.00

12.00

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32

Miscellaneous expendituresLabor CostNuclear fuel consumptionMaintenanceInterest of bank loanDepreciationReserve for decommissioningReserve for spent fuel disposal

Factors in production cost of the model case



(cent/kWh)

Trend of whole sale price

5%7%

26%

5%

15%

17%

15%

10%

Percentages

in the life

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-6000

-4000

-2000

0

2000

4000

6000

-10 -8 -6 -4 -2 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31

Cash in the account

Cash in the Account of the model case


(million US$)

Start of the first unit operation

Start of the second unit operation Capital increase

4356 Million US$

(Year after the first unit start)

Summary of cash (million US$)

Face value of capital invested : 1400

NPV of investment : 1360

Face value of dividends : 1400

NPV of dividends : 606

Internal rate of return (IRR) : 0.0 %/year

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Sensitivities of Parameters

Influencing the Production Cost


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Sensitivity study concerning influencing parameters

• Sensitivities to 30-years-averaged whole sale price by parameters changed


Model Case

(6.097 cent/kWh)

Change of

parameter

Result by change

(cent/kWh)

Machinery & equipment cost (million US$) 4500 +200 6.200

Civil & building construction cost (million US$) 1250 +200 6.201

Bank loan interest (%/y)

Escalation rate (%/y)

2.0

1.0

+1.0

+0.5 6.627

Nuclear fuel price (million US$/EFPY) 70 +10 6.280

Work force number 700 +100 6.214

Maintenance cost rate for machinery (%/y) 2.0 +0.5 6.292

Machinery & equipment price 0.052 (cent/kWh)/(100 million US$) = 0.0232 (cent/kWh)/%

Civil & building price 0.052 (cent/kWh)/(100 million US$) = 0.0065 (cent/kWh)/%

Bank loan interest & escalation 0.530 (cent/kWh)/(increase by 1% & 0.5 %) = 0.0106 (cent/kWh)/%

Nuclear fuel procurement price 0.183 (cent/kWh)/(10 million US$/EFPY) = 0.0146 (cent/kWh)/%

Workforce number 0.117 (cent/kWh)/(100 people) = 0.0082 (cent/kWh)/%

Maintenance cost rate 0.390 (cent/Kwh)/(increase by 1 percent) = 0.0078 (cent/kWh)/%

Go

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Production Costs

other than the Model Case 1. Production cost in case of governmental budget.

2. Production cost in case of zero bank loan interest

3. Production cost in case of fixed whole sale price

4. Returns in case of fully-invested budget


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1. Production cost in case of governmental budget

Production cost in case of state-owned company

• There may be a case where nuclear power plants are built by governmental

budgets. Namely, construction expenditures don’t need to be paid back. The

electric utility borrows a little money for nuclear fuel and operation expenditures

and pays it back from sales incomes.

• In this case, the whole sale price of 3.21 cent/kWh in the year 201X and 4.40

cent/kWh at the year 201X+31 (the average in the life is 3.805 cent/kWh) results

in the balance sheet of the year 201X+31;

• The cash 2906 million US$ will be used for spent fuel disposal, decommissioning

and disposal of nuclear fuel in the reactor.




Nuclear fuel 210 Reserve for spent fuel 1,523



Land ? Capital (stock) 0



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0.00

2.00

4.00

6.00

8.00

10.00

12.00

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32





1. Trend of production cost in case of governmental budget


(cent/kWh)

3.63 cent/kWh


3.805 cent/kWh

6.10 cent/kWh

3.21 cent/kWh

5.22 cent/kWh 4.40 cent/kWh

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0.00

2.00

4.00

6.00

8.00

10.00

12.00

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32

Miscellaneous expenditures

Labor Cost

Nuclear fuel consumption

Maintenance

Interest of bank loan

Reserve for decommissioning

Reserve for spent fuel disposal

1. Factors of production cost in case of governmental budget


(cent/kWh)

Trend of whole sale price

10%

8% 1%

23%

25%

24%

9%

Percentages

in the life

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2. Production cost in case of zero bank loan interest

Production cost in case of state-owned company

• In case where the holding company or government supplies the amount for the

construction cost, the bank loan interest probably becomes zero. In this case, the

capital of production company can be only a formality such as 100 Million US$.

• The whole sale price of 4.82 cent/kWh in the year 201X and 6.59 cent/kWh at the

year 201X+31 (the average in the life is 5.671 cent/kWh) results in the balance

sheet of the year 201X+31;

• The cash 3009 million US$ will be used for spent fuel disposal, decommissioning

and disposal of nuclear fuel in the reactor.







Land ? Capital (stock) 100



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0.00

2.00

4.00

6.00

8.00

10.00

12.00

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32





2. Trend of production cost in case of zero bank loan interest


(cent/kWh)

5.31 cent/kWh


Loss

Profit End of depreciation of

machinery

5.671 cent/kWh

Shutdown of

the first unit

6.10 cent/kWh

4.82 cent/kWh

10.41 cent/kWh

6.59 cent/kWh

８**S-GE-20140003

3. Production cost in case of fixed whole sale price

Production cost in case of fixed whole sale price

• In case where investors establish an independent power production company

(IPP company), the whole sale price will be fixed for a long term by contract.

• If the whole sale price is fixed at 5.941 cent/kWh eternally from 201X until

201X+31, the balance sheet of the year 201X+31 becomes similar to the base

case;

• Owing to the higher price in the early age in case of fixed price, the diminution of

bank loan balance became more rapid than the model case. This led to a lower

averaged production cost (5.941 cent/kWh) than the model case (6.097 cent/kWh).










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0.00

2.00

4.00

6.00

8.00

10.00

12.00

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32




3. Trend of production cost in case of fixed whole sale price


(cent/kWh)


Profit

Loss

5.61 cent/kWh

5.941 cent/kWh

6.10 cent/kWh

11.74 cent/kWh

８**S-GE-20140003


Business model assumed

• There may be a case where a whole sale production company is newly

established by investors in the private sector, who expect sufficient returns

through stock dividends.

Amount of investment assumed and its net present value (NPV)

• It was assumed that the amount of 6400 million US$ would be invested by

investors for the power plant construction as the capital of entity on the condition

that it would be deposited in accordance with the construction work progress and

it would be totally recovered through stock dividends during the power production.

• The NPV of 6400 million US$ invested during the construction is 5321 million

US$ at the year 201X-10.

• At least the total of investment shall be returned to the investors through

dividends and the entity shall not have excessive debts at the year 201X+31.

• After 30 years operation, the cash in the balance sheet shall be greater than the

total of reserves. At that moment, the balance sheet still has formally 6400 million

US$ as the capital, but in reality the capital has no value.

• The amount of retained earnings can be negative after the start of power

production, but its absolute value must be smaller than the capital, if negative.

The summation of the capital and retained earnings may be divided to the

investors when the entity is dissolved after decommissioning.


８**S-GE-20140003


Case A) Internal rate of return (IRR) under the lowest sale price

• The lowest sale price is defined on the condition that the total of NPV of dividends

is same as the NPV of invested capital and that the summation of capital and

carryover profit at the year 201X+31 is close to zero.

• The total of NPV of a fixed dividend by 466 million US$/year from the year 201X+1

until 201X+31 corresponds to the NPV of investment (5321 million US$).

• This means that the dividend of 466 million US$/year, of which the face rate is

7.28 %/year, is equivalent to the IRR of 2.5 %/year to the investors,.

• In order to obtain the dividend by 466 million US$/year, the sale price shall be 6.80

cent/kWh in the year 201X and 9.32 cent/kWh at the year 201X+31 (the average

in the life is 8.026 cent/kWh), which results in the balance sheet of the year

201X+31;








Retained Earnings - 6,132


８**S-GE-20140003


Case B) Sale price to obtain the IRR of 4 %/year

• In the case A) the investors can receive only same NPV as their investment.

However, investors never invest their money in the nuclear power production if IRR

is similar to the discount rate. The IRR should be some percentages higher than the

discount rate. Hence, it was assumed that the target of IRR was 4 %/year.

• A fixed dividend by 624 million US$/year from the year 201X+1 until 201X+31

resulted in the NPV of 7124 million US$ and the IRR is 4.0 %/year. The face rate of

dividend of 624 million US$/year was 9.75 %/year.

• In order to obtain the dividend by 624 million US$/year, the sale price had to be 8.18

cent/kWh in the year 201X and 11.20 cent/kWh at the year 201X+31 (the average in

the life is 9.642 cent/kWh), which resulted in the balance sheet of the year

201X+31; (Same carryover profit as that of Case A.)








Retained Earnings - 6,132


８**S-GE-20140003



-8000

-6000

-4000

-2000

0

2000

4000

6000

8000

10000

12000

14000

-10 -8 -6 -4 -2 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31

Case A)

Case B)

Gross face value :

13980 million US$.

Net face value :

7580 million US$

NPV of gross:

5621 million US$

Gross face value :

18720 million US$

Net face value :

12320 million US$

NPV of gross :

7124 million US$

Averaged electric price : 8.026 cent/kWh.

Fixed dividend of 466 million US$/year which

is of the IRR of 2.5 %/year.

Averaged electric price : 9.642 cent/kWh.

Fixed dividend of 624 million US$/year which

is of the IRR of 4.0 %/year.

Cumulative figures of cash flows

NPV of investment :

5621 million US$

Gross face value

of dividends

Net face value

of dividends

８**S-GE-20140003

Conclusion


８**S-GE-20140003

Conclusion on Fulfillment of User Requirements (1)

UR 1: Cost of energy - Criterion 1.1: Cost competiveness

The production cost of NES was demonstrated

However the cost competiveness against alternative energy sources was not

assessed.

UR 2: Ability to finance - Criterion 2.1: Attractiveness of investment

The total investment for NES was suggested to be attractive to investors.

- Criterion 2.2: Investment limit

The total investment demonstrated was acceptable in investment markets.

UR 3: Investment risk - Criterion 3.1: Maturity of design

The NES demonstrated has same designs as existing one and is sufficiently

mature.

- Criterion 3.2: Construction schedule

The production cost demonstrated was assessed based on experiences of same

design NES and is very realistic.

- Criterion 3.3: Uncertainty of economic input parameters

Sensitivity analysis was demonstrated to be acceptable to investors.


stands for “demonstrated and satisfies A.L.”

stands for “not demonstrated”.

８**S-GE-20140003

Conclusion on Fulfillment of User Requirements (2)

UR 3: Investment risk (continued)

- Criterion 3.4: Political environment

Not assessed (Out of assessment scope).

UR 4: Flexibility - Criterion 4.1: Flexibility

NESs having same designs for components with different reactor outputs already

have been constructed. Hence, the flexibility for different markets exists.

Concluding remarks • The total investment for NES and its production cost were demonstrated. The 30-

years averaged production cost was estimated 6.097 cent/kWh including reserves

for decommissioning and disposal of spent fuel. The assessment results satisfied

INPRO user requirements with the exception of Acceptance Limits 1.1 and 3.4

which were out of scope of this report.

• In case of low-inflation-rate countries the depreciation of properties and nuclear

fuel cycle cost dominate the production cost. Then the maintenance cost and

labor cost follow. Especially the labor cost will have a major percentage near the

end of plant life.

• If the nuclear power plant would be built with governmental budget, the

maintenance cost, nuclear fuel cost and labor cost would evenly account for one

quarter of production cost. © 2014 MITSUBISHI HEAVY INDUSTRIES, LTD. All Rights Reserved. 38

Back

８**S-GE-20140003


Thank you for kind attention!

８**S-GE-20140003

Appendix 1. Items of construction cost

2. Progress of construction project

3. Variety of depreciation rules

4. Nuclear fuel cost in the market price

5. Prime rates and inflation rates

6. Load factor

7. Plant personnel needed

8. Administration and other operation expenditures

9. Annual earning, profit tax, balance sheet and the

simulation sheet


８**S-GE-20140003

App-1. Items of Construction Cost (1)

How to estimate SSC construction costs

• Financial statements of electric power company are opened to investors.

• In balance sheets, the payments for construction are appropriated in the

item “construction in progress” as one of properties until the start of power

production. Then, at the moment of initial power operation, the amount of

“construction in progress” is transferred into specific property items such as

machinery, equipment and buildings, which are supposed to be

depreciated every year. Therefore, the construction cost can be calculated

by comparing balance sheets for two or more continuous years.


(Fiscal year 1) (Fiscal year 2) (Fiscal year 3) (Fiscal year 4)

Construction-in-

progress of FY1

Construction-in-

progress of FY2

Item of property

of FY1

Item of property

of FY2Item of property

of FY3

Item of property

of FY4

Increment of construction-

in-progress during FY3

８**S-GE-20140003


Estimation of construction costs

• The construction costs of Model Case were estimated by referring a typical Gen-III

3 loop PWR plant producing 2660 MWt designed and built before the Fukushima

Daiichi Accident. The plant referenced is the latest NPP in Japan.

• Thus, to begin with, the construction cost for the second unit was estimated by

referring it because the plant referenced was an additional unit to the existing

units. Then, the estimation for the first unit was developed by considering

additional costs necessary for the first unit in one site in addition to the second unit

construction cost estimated.

• The number of items of properties in the balance sheet of financial statements was

many, but in this study various items were put together into three categories;

“Machinery & equipment”, “Civil works” and “Building constructions”.

• As known well, the construction cost for civil works strongly depends on

geographical features of the site and designs for cooling water source. In this

study, it was assumed that the site would faced at sea coastline, that cooling water

would be available near the site and that heavy components could be transported

by ship. Besides, it was also assumed that much civil works common to both units

would be made in the scope of the first unit.


８**S-GE-20140003


• In addition to nuclear power plant units, there are many facilities to be constructed

in the site. The category of operation/administration facilities stands for facilities

necessary for supporting the units, which includes;

- Radioactive waste treatment facilities

- Pure water production facility

- Training facility for operators & maintenance technicians

- Technical support center

- Environment monitoring system

- Security system

- Fire station and engines

- Urgent medical treatment facility

- Administration office, canteen and so on.

• These operation/administration facilities were assumed to be built before the start

of first unit operation.

The policy on how to settle spent fuel assemblies influences the nuclear energy

production cost. In this study, however, a temporary storage facility for spent fuel

assemblies was assumed to be built in 10 years later due to the lack of fuel cycle

policy.


８**S-GE-20140003


Foreign exchange rate assumed

• The information on the construction costs was obtained in JPY. The foreign

exchange rate from Japanese Yen (JPY) to US Dollar (USD) was assumed to be

fixed at 1 USD = 100 JPY because the rate has been around 101 JPY/USD in

these years.

Finally, it was assumed that the followings will be paid to vendors.


(million US$) Unit 1 Unit 2

Machinery and equipment including installation charges 2300 2200

Civil works 400 200

Building constructions 350 300

Operation/administration facilities 200

Spent fuel storage facility 180

Back

８**S-GE-20140003

App-2. Progress of Construction Project (1)


X-9 X-8 X-7 X-6 X-5 X-4 X-3 X-2 X-1 X1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4 Q 1Q 2Q 3Q 4 Q 1Q 2Q 3Q 4 Q 1Q 2Q 3Q 4 Q 1Q 2Q 3Q 4 Q 1Q 2Q 3Q 4 Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

▼ ▼ ▼ ▼First Pouring of Concrete CO

▼ Permission ▼ ▼ ▼ ▼

▼CHT ▼

Hot Functional Tests

Erection of Reactor Building

Erection of Reactor Auxiliary Building

Erection of Turbine Building

Te

Preparative civil works for the site

・An environment investigation was carriedout by in the year (X-13) and (X-12).

・An environmental impact statement waspresented to the authority in the year (X-11).

Safety Review of Nuclear Installation

Review of EnvironmentalImpact Statement since 1998.

Preparative Stage

Installation of Integrated Digital Computer Control System

Erection of Containment Vessel

Initial Core Loading

Temporary suspension of erection in the winter time

Structure Erection in Containment Vessel Equipment Installation in

Containment Vessel

Initial Electric Power Supply to Auxiliary Transformer by 275 KV

Start of RCS Flushing

Installation of Main Transformer

Installation of Main Turbine

Installation of Main Generator

Installation of Turbine Condenser

Equipment Installation in Reactor Building and Auxiliary Building

Erection and Installation Stage

Initial Criticality of Reactor

Construction Plan Reviews

Tests andCommissioning Stage

Cold Functional Tests

• Schedule experienced in the plant construction referenced

Back

８**S-GE-20140003

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

100.0

201X-6 201X-5 201X-4 201X-3 201X-2 201X-1 201X 201X+1 201X+2

Civil works

Building constructions

Machinery and equipment

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

100.0

201X-6 201X-5 201X-4 201X-3 201X-2 201X-1 201X 201X+1 201X+2

Civil works



0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

100.0

201X-6 201X-5 201X-4 201X-3 201X-2 201X-1 201X 201X+1 201X+2

Civil works



0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

100.0

201X-6 201X-5 201X-4 201X-3 201X-2 201X-1 201X 201X+1 201X+2

Civil works



App-2. Progress of Construction Projects (2)


(Unit 1) (Unit 2)

Annual progress Annual progress

Cumulative degree Cumulative degree

Startup test Startup test

• Experience of monetary-base work progress of past twin-units construction

Year 201X-7 201X-6 201X-5 201X-4 201X-3 201X-2 201X-1 201X 201X+1 201X+9 Start of civil works First concrete of Startup test ▼ 　　▼ of Unit 1 　▼ of Unit 2 ▼ of Unit 1 ▼ of Unit 2Machinery and equipment 0.10 0.00 0.00 0.30 0.20 0.20 0.20

Unit 1 Civil works 0.20 0.15 0.15 0.15 0.15 0.10 0.10Building constructions 0.00 0.00 0.00 0.20 0.40 0.30 0.10Machinery and equipment 0.00 0.00 0.00 0.00 0.30 0.20 0.20 0.20 0.10

Unit 2 Civil works 0.00 0.15 0.15 0.15 0.15 0.10 0.10 0.10 0.10Building constructions 0.00 0.00 0.00 0.10 0.20 0.30 0.20 0.10 0.10

Common Spent fuel storage construction 1.00Operation/administration facilities 0.00 0.00 0.25 0.25 0.25 0.25 0.00

Payment

plan

assumed

in Model

Case

Back

８**S-GE-20140003

App-3. Variety of Depreciation Rules

Machinery & Equipment Civil works & Buildings

Method Duration Method Duration

Model Case Straight-line 16 years for the

total amount

Straight-line 30 years

US America In principle,

straight-line

In 3 – 20 years,

depending on kinds

Straight-line In 27.5 or 39 years

Japan Choice of straight-

line or accelerated

(fixed rate)

In 3 – 22 years,

depending on kinds

Straight-line In 21 – 50 years,

depending on kinds

France In principle,

straight-line

In the period of in-

service

Straight-line In the period of in-

service

Korea Choice of straight-

line or accelerated

(fixed rate)

In 5 – 20 years,

depending on kinds

Straight-line In 40 years


Back

８**S-GE-20140003

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Uranium Ore

Conversion Service

Enrichment Service

Total

App-4. Nuclear Fuel Cost in the Market Price


• The figure shows the nuclear fuel procurement cost excluding fuel assembly

manufacturing for one effective-full-power-year (EFPY) operation of 2660 MWt.

• 70 (million US$)/EFPY corresponds to 0.858 cent/kWh in the Model Case.

(million US dollar)/(EFPY)

70 (million US$)/(EFPY) was

assumed for Base Case including

fuel assembly manufacturing cost.

Back

８**S-GE-20140003

App-5. Prime rates and inflation rates


Prime Rate at May 2014 (%/y) Inflation Rate during 2013 (%/y)

Model Case 2.00 1.00

US America 3.25 1.46

Japan 1.475 0.36

France 0.25 (Euro zone) 0.70

Korea 2.50 1.36

Indonesia (around 10%) 6.41

Vietnam (around 9%) 6.04

Turkey 9.5 7.49

Back

８**S-GE-20140003

App-6. Load Factor

Load factor was assumed by considering;

- The power plants are operated in full power for base load supply.

- The frequency of refueling & periodical inspection outage : every 4 years

The duration of refueling & periodical inspection outage : 4 weeks

- The frequency of refueling outage : 2 times in 4 years

The duration of refueling outage : 19 days

- The frequency of overhauling outage : every 12 years

The duration of overhauling outage : 8 weeks

• Consequently each unit has for 30 years; - 23 times of 465-days continuous power operation

- 16 times of 19-days refueling outage

- 5 times of 28-days refueling & periodical inspection outage

- 2 times of 56-days refueling & overhauling outage

The calculation mentioned-above results in the load factor of ca. 95 %.

But by conservatively taking into account unanticipated shutdowns, 90 %

was used for the Model Case. The 5 % diminution corresponds to 80

times of 7-days unplanned shutdowns in 30 years.


Back

８**S-GE-20140003

App-7. Plant personnel needed (1)


Organization for twin-units PWR Population Stationed in the site

Engineers &

Specialists Technicians Outsourced

Plant Director 1

Deputy Plant Director for General Affairs/Commerce (non-technical area) 1

General Affairs Section 1

Secretariat, General Affairs, Logistics 14

Asset Management & Accounting Section 1

Accounting & Asset Management 3

Procurement & Purchase 4

Human Resource & Industrial Safety Section 1

Human Resources 3

Industrial Safety & Clinic 2 2

Deputy Plant Director for Engineering Management 1

Reactor Safety Staff 2

Training & Education Staff 2

Quality Assurance Staff 3

Engineering & Technical Support Section 1

General Technical Affairs & Technical Support 9

Configuration Control & Document Room 2

(Document room) 6

Nuclear Fuel & Reactor Core Section 1

Reactor Core Management & Fuel Handling 7

Radiation Control Section 1

Radiation Protection 17

(Radiation monitor maintenance) 2

(Radiation survey meter maintenance) 5

(Access control to radiation area and other supplemental works) 18

(Radioactive Waste Facilities' Operation & Handling) 18

(Laundry work) 20

(Housekeeping in the control area) 12

Environment Monitoring 7

(Environment research of sea area)

(Supplemental works of environment monitoring) 4

Water Chemistry Control Section 1

Water Chemistry Control 8

(Supplemental works of chemical analysis) 9

(Water Processing Facilities' Operation) 5

８**S-GE-20140003

App-7. Plant personnel needed (2)


Deputy Plant Director for Facility Management and Operation 1

Facility Management Section 1

Facility Modification Planning 6

Steam Generator Cleanup Taskforce 5

Maintenance Budget & Account 4

Work Planning for Refueling Outage 4

Plant Operation Section 1

Expenditure & Operation Section Management 4

Plant Operation Management 8

(Supplementary work for plant facility operation) 1

Isolation Planning for Refueling Outage 5

Operation Shift

Shift supervisor 6

Unit supervisor 12

Operator 24

Patroller 30

Deputy Plant Director for Plant Maintenance 1

(Daily maintenance work of plant facilities) 212

Electrical Maintenance Section 1

Instrumentation & Control System - Primary system 16

Instrumentation & Control System - Turbine island 13

(Control valve maintenance) 7

Electrical Equipment 13

(Maintenance tool room) 2

Mechanical Maintenance Section 1

Reactor System 13

Auxiliary of Primary Island 16

Turbine Island 11

(Spare-parts storage and machine shop) 2

Architectural Maintenance Section 1

Building 3

Civil Facility & Earthwork 3

Total in the power plant 296 293 40

Miscellaneous

Nuclear Training Center 1

Teachers on the machinery & equipment 4

Instructors on the plant operation 3

Public Relation Pavilion 1 10

Security Control Service ?

Canteen ? Back

８**S-GE-20140003

App-8. Administration and other operation expenditures

Followings have to be paid in addition to the front end fuel cost, maintenance cost

and labor cost.

1. Office expenditures, articles for consumption and others : 9 (million US$/year)

(Gases, chemicals, fuel for diesel generator, clothes for controlled area, etc)

2. Outsourcing costs except for the maintenance : 5 (million US$/year) per unit

(Operation of radioactive waste handling, access control to radioactive control

area, housekeeping, laundry workers, security guards, and so on)

3. Low level radioactive waste disposal cost : 2 (million US$/year) per unit

(This is paid to the cooperative disposal facility.)

4. Charge for the nuclear accident insurance : 4 (million US$/year) per unit

5. Expense of training facility operation: 1 (million US$/year)

6. Fixed asset property tax : 1.5 % of booked value /every year

7. Reserve for spent fuel disposal: 3.5 (US$/MWh)

8. Reserve for decommissioning : 20 (million US$/year) per unit until 600 (million US$)

• In total, the amount from item 1 to 5 becomes 21 (million US$/year) for single unit and

32 (million US$/year) for twin units.


Back

８**S-GE-20140003

App-9. Annual Earning, Profit Tax and Balance Sheet


Assets (Property) ・ Currency ・ Bank deposits ・ Bonds ・ Fuel

Coal

Oil

Nuclear fuel

・ Cars ・ Equipment ・ Real estates etc

Liabilities (Debt) ・ Bank loans ・ Corporate bonds ・ Reserve funds

Water shortage

Capital

Carry-over profit

Expense (Prime cost) ・ Labor cost ・ Fuel cost

Coal Oil Nuclear fuel

・ Maintenance cost ・ Depreciation etc (Non-operating expense)

・ Interest payment

Income (Revenue)

・ Sale of electricity

Annual profit

Balance Sheet Annual Earning Statement

Corporation Profit Tax

Stock Dividends Back

Retained Earnings

(= carryover profit)

Dividends

８**S-GE-20140003

App-9. Change in the Balance Sheet


-2000

-1000

0

1000

2000

3000

4000

5000

6000

7000

Currency (cash deposit in bank)

Machinery & equipment

Civil works and buildings

Nuclear Fuel

Lands

Construction-in-process Account of Unit 1

Construction-in-process Account of Unit 2

Bank Loan

Reserve for spent fuel disposal

Reserve for decommissioning

Capital

Carryover Profit or Deficit

(million US$)

(Assets) (Liabilities, Capital and Carryover profit)

(201X-10) (201X-4) (201X-0) (201X+2-0) (201X+5) (201X+31)

Unit 1

Unit 1

Unit 2

Unit 2

Unit 2

Back

８**S-GE-20140003

App-9. Work Sheet simulating Model Case


Year 201X-10 201X-9 201X-8 201X-7 201X-6 201X-5 201X-4 201X-3 201X-2 201X-1 201X 201X+1 201X+2 201X+3 201X+4 201X+5 201X+6 201X+7 201X+8 201X+9 201X+10 201X+11 201X+12 201X+13 201X+14 201X+15 201X+16 201X+17 201X+18 201X+19 201X+20 201X+21 201X+22 201X+23 201X+24 201X+25 201X+26 201X+27 201X+28 201X+29 201X+30 201X+31

Start of Earthworks & Civil works ▼ ▼ Start of Plant Construction ▼ Start of Unit 1 Operation ▼ Construction of Spent Fuel Storage

▼ Start of Unit 2 Operation

Generic Economical ParametersLabor Unit Price (Million US$/year) 0.12 0.120 0.121 0.122 0.124 0.125 0.126 0.127 0.129 0.130 0.131 0.133 0.134 0.135 0.137 0.138 0.139 0.141 0.142 0.144 0.145 0.146 0.148 0.149 0.151 0.152 0.154 0.155 0.157 0.159 0.160 0.162 0.163 0.167 0.170 0.174 0.177 0.181 0.184 0.188 0.192 0.196 0.200

Prime Rate of Bank Loan (%) 2.00 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000 2.000

Escalation Rate (%/y) 1.00 1.000 1.010 1.020 1.030 1.041 1.051 1.062 1.072 1.083 1.094 1.105 1.116 1.127 1.138 1.149 1.161 1.173 1.184 1.196 1.208 1.220 1.232 1.245 1.257 1.270 1.282 1.295 1.308 1.321 1.335 1.348 1.361 1.375 1.389 1.403 1.418 1.433 1.448 1.464 1.480 1.496 1.512

Discount Rate (%/y) 2.50 1.000 0.976 0.952 0.929 0.906 0.884 0.862 0.841 0.821 0.801 0.781 0.762 0.744 0.725 0.708 0.690 0.674 0.657 0.641 0.626 0.610 0.595 0.581 0.567 0.553 0.539 0.526 0.513 0.501 0.489 0.477 0.472 0.467 0.463 0.459 0.455 0.451 0.447 0.443 0.440 0.436 0.433

Electricity ProductionProduction Capacity (MWe) 931 931 931 1862 1862 1862 1862 1862 1862 1862 1862 1862 1862 1862 1862 1862 1862 1862 1862 1862 1862 1862 1862 1862 1862 1862 1862 1862 1862 1862 1862 1000 931

Load Factor (%) 90 55 90 72.5 90 90 90 90 90 90 90 90 90 90 90 90 90 90 90 90 90 90 90 90 90 90 90 90 90 90 90 90 90

In-house consumption rate (%) 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5

Unit Price of Whole Sale (US$/MWh) 46.8 4,356 51.7 52.2 52.7 53.3 53.8 54.3 54.9 55.4 56.0 56.5 57.1 57.7 58.3 58.8 59.4 60.0 60.6 61.2 61.8 62.5 63.1 63.7 64.4 65.0 65.7 66.4 67.1 67.8 68.5 69.2 70.0 70.8

Population of Employees 700 500 600 700 700 700 700 700 700 700 700 700 700 700 700 700 700 700 700 700 700 700 700 700 700 700 700 700 700 700 700 700 700

Maintenance Cost Ratio to Initial Machinery Property (%) 2.00 2.00 2.02 2.04 2.06 2.08 2.10 2.12 2.14 2.17 2.19 2.21 2.23 2.25 2.28 2.30 2.32 2.35 2.37 2.39 2.42 2.44 2.46 2.49 2.52 2.54 2.57 2.59 2.62 2.65 2.68 2.71 2.74

Maintenance Cost Ratio to Initial Civil & Building Property (%) 1.00 1.00 1.01 1.02 1.03 1.04 1.05 1.06 1.07 1.08 1.09 1.10 1.12 1.13 1.14 1.15 1.16 1.17 1.18 1.20 1.21 1.22 1.23 1.24 1.26 1.27 1.28 1.30 1.31 1.33 1.34 1.35 1.37

Other Operation Expenditures (Million US$/year) 32 23.2 35.7 36.1 36.4 36.8 37.2 37.5 37.9 38.3 38.7 39.0 39.4 39.8 40.2 40.6 41.0 41.4 41.9 42.3 42.7 43.1 43.6 44.0 44.5 44.9 45.4 45.9 46.3 46.8 47.3 47.9 48.4

Depreciation rate of machinery & equipment (/year) 0.0625 0.063 0.063 0.063 0.063 0.063 0.063 0.063 0.063 0.063 0.063 0.063 0.063 0.063 0.063 0.063 0.063 0.063 0.063 0.063 0.063 0.063 0.063 0.063 0.063 0.063 0.063 0.063 0.063 0.063 0.063 0.063 0.063

Depreciation rate of civil works & buildings (/year) 0.0333 0.033 0.033 0.033 0.033 0.033 0.033 0.033 0.033 0.033 0.033 0.033 0.033 0.033 0.033 0.033 0.033 0.033 0.033 0.033 0.033 0.033 0.033 0.033 0.033 0.033 0.033 0.033 0.033 0.033 0.033 0.033 0.033

Property Tax Rate of Facility Property (%) 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5

Construction in Process of Unit 1Population of Employees (persons) 30 30 30 30 30 30 60 150 200 300

Machinery & equipment (Million US$) 2,300 0.0 0.0 0.0 230.0 0.0 0.0 690.0 460.0 460.0 460.0

Civil works (Million US$) 400 0.0 0.0 0.0 80.0 60.0 60.0 60.0 60.0 40.0 40.0

Building construction (Milllion US$) 350 0.0 0.0 0.0 0.0 0.0 0.0 70.0 140.0 105.0 35.0

Interest of bank loans (Million US$) 62 0.0 0.0 0.0 0.0 0.0 0.0 0.0 1.8 22.4 37.9

(Total) (Million US$) 3,112 0.0 0.0 0.0 310.0 60.0 60.0 820.0 661.9 627.4 573.0

Construction in Process of Unit 2Population of Employees (persons) 0 0 0 0 0 0 0 0 0 0 60 60

Machinery & equipment (Million US$) 2,200 0.0 0.0 0.0 0.0 0.0 0.0 0.0 660.0 440.0 440.0 440.0 220.0

Civil works (Million US$) 200 0.0 0.0 0.0 0.0 30.0 30.0 30.0 30.0 20.0 20.0 20.0 20.0

Building construction (Milllion US$) 300 0.0 0.0 0.0 0.0 0.0 0.0 30.0 60.0 90.0 60.0 30.0 30.0

Interest of bank loans (Million US$) 108 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.2 9.6 20.1 31.3 46.9

(Total) (Million US$) 2,808 0.0 0.0 0.0 0.0 30.0 30.0 60.0 750.2 559.6 540.1 521.3 316.9

Construction of Other Facilities (Million US$)Spent Fuel Storage Facility - Building & Casks 180 180

Operation/administration facilities 200 20.0 60.0 40.0 40.0 40.0

(Total) 0.0 0.0 0.0 0.0 0.0 20.0 60.0 40.0 40.0 40.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 180.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Nuclear Fuel (Million US$/2660MWtEFPY)=(Million US$/931MWeEFPY) 70 0.0 0.0 0.0 0.0 0.0 0.0 0.0 70.0 70.0 140.0 133.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126 126 126 126 126 126 126 126 63 63 0

Cash Balance (Million US$)Face Value of Capital Increase 1400 700 0 0 0 700 0 0 0 0 0 0 0

Cash-inCapital by stocks 700 0 0 0 700 0 0 0 0 0 0 0

Bank Loans 0 0 0 0 0 0 100 1,500 1,300 1,300 700 300 0 -200 -200 -200 -300 -200 -300 -100 -300 -300 -400 -300 -400 -400 -400 -400 -300 -400 -100 0 0 0 0 0 0 0 0 0 0 0

Net Cash-in of Electricity Sale Business 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 -23.8 97.9 170.0 324.0 338.3 352.6 367.0 383.3 397.8 414.3 424.2 440.8 457.5 476.1 493.0 511.7 530.6 549.6 566.5 579.3 593.8 603.4 610.5 617.7 625.2 632.9 640.9 649.1 657.5 666.3 293.7 260.7

Cash-outConstruction of Unit 1 0.0 0.0 0.0 310.0 60.0 60.0 820.0 660.0 605.0 535.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Construction of Unit 2 0.0 0.0 0.0 0.0 30.0 30.0 60.0 750.0 550.0 520.0 490.0 270.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Construction of Other Facilities 0.0 0.0 0.0 0.0 0.0 20.0 60.0 40.0 40.0 40.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 180.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Nuclear Fuel (No escalation) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 70.0 70.0 140.0 133.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 63.0 63.0 0.0

Interest payment of bank loan during construction 0.0 0.0 0.0 0.0 0.0 0.0 0.0 2.0 32.0 58.0 31.3 46.9 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Corporation Profit Tax (%) 30 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 36.2 91.4 95.2 99.6 102.5 104.6 106.8 109.0 111.3 113.7 116.2 118.7 121.3 25.6 26.7

Stock Dividends 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Net Cash-flow 700.0 0.0 0.0 -310.0 610.0 -110.0 -840.0 -22.0 3.0 7.0 21.8 -44.9 44.0 -2.0 12.3 26.6 -59.0 57.3 -28.2 8.3 -1.8 14.8 -68.5 50.1 -33.0 -14.3 4.6 -12.7 49.1 -41.9 268.2 375.0 379.9 385.0 390.2 395.6 401.2 406.9 412.8 481.9 205.1 234.0

Net electricity production (GWh) 4,284 7,010 11,293 14,019 14,019 14,019 14,019 14,019 14,019 14,019 14,019 14,019 14,019 14,019 14,019 14,019 14,019 14,019 14,019 14,019 14,019 14,019 14,019 14,019 14,019 14,019 14,019 14,019 14,019 14,019 7,529 7,010

Production cost at the transmission line (US$/MWh) 117.4 79.9 84.3 70.2 69.7 69.2 68.7 68.1 67.6 67.0 66.9 66.3 65.6 64.9 64.3 63.5 62.8 52.6 40.1 39.8 39.4 39.4 39.7 39.9 40.2 40.4 40.7 41.0 41.2 41.5 61.2 61.0

Lifetime average production cost (US$/MWh) 117.4 94.1 89.2 81.9 78.5 76.5 75.1 74.1 73.2 72.5 71.9 71.4 70.9 70.4 70.0 69.5 69.1 68.1 66.5 65.1 63.8 62.6 61.5 60.6 59.7 58.9 58.2 57.6 57.0 56.4 56.5 56.6

Lifetime average unit price after the start of operation (US$/MWh) 51.7 52.0 52.4 52.7 53.0 53.3 53.6 53.9 54.1 54.4 54.7 55.0 55.3 55.6 55.8 56.1 56.4 56.7 57.0 57.3 57.6 57.9 58.2 58.5 58.8 59.2 59.5 59.8 60.2 60.5 60.8 60.97

Present value of investments as capital 1,334 700 0 0 0 634 0 0 0 0 0 0 0

Present Value of Dividend Returns 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Annual Earning Statement (Million US$)Income

Sales 221.5 366.0 595.6 746.7 754.2 761.7 769.3 777.0 784.8 792.7 800.6 808.6 816.7 824.8 833.1 841.4 849.8 858.3 866.9 875.6 884.3 893.2 902.2 911.4 920.8 930.4 940.2 950.1 960.3 970.7 527.0 496.1

Interest of currency in bank 0.0 0.1 0.0 0.1 0.1 0.1 0.2 0.1 0.2 0.1 0.2 0.2 0.2 0.0 0.2 0.1 0.1 0.1 0.0 0.2 0.1 1.0 2.4 3.9 5.6 7.3 9.3 11.3 13.5 15.9 18.8 20.4

(Total) 221 366 596 747 754 762 769 777 785 793 801 809 817 825 833 842 850 858 867 876 884 894 905 915 926 938 949 961 974 987 546 517

Prime costLabor Cost 66.3 80.3 94.7 95.6 96.6 97.5 98.5 99.5 100.5 101.5 102.5 103.5 104.6 105.6 106.7 107.7 108.8 109.9 111.0 112.1 113.2 114.4 116.7 119.0 121.5 124.0 126.5 129.1 131.8 134.6 137.4 140.3

Maintenance 53.5 54.0 104.6 105.6 106.7 107.7 108.8 109.9 111.0 112.1 113.2 114.4 115.5 116.7 117.8 119.0 120.2 121.4 122.6 123.8 125.1 126.3 127.6 128.9 130.2 131.6 133.0 134.4 135.8 137.3 66.3 67.1

Nuclear Fuel Consumption 38.5 63.0 101.5 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0 126.0

Operation Expenditures 23.2 35.7 36.1 36.4 36.8 37.2 37.5 37.9 38.3 38.7 39.0 39.4 39.8 40.2 40.6 41.0 41.4 41.9 42.3 42.7 43.1 43.6 44.0 44.5 44.9 45.4 45.9 46.3 46.8 47.3 47.9 48.4

Depreciation of machinery & equipment 156.1 156.1 299.1 299.1 299.1 299.1 299.1 299.1 299.1 299.1 299.1 299.1 299.1 299.1 299.1 299.1 299.1 166.9 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Depreciation of civil works & buildings 27.1 27.1 44.5 44.5 44.5 44.5 44.5 44.5 44.5 44.5 44.5 44.5 44.5 44.5 44.5 44.5 44.5 44.5 44.5 44.5 44.5 44.5 44.5 44.5 44.5 44.5 44.5 44.5 44.5 44.5 34.8 0.0

Property Tax 49.7 46.9 86.3 81.2 76.0 70.8 65.7 60.5 55.4 50.2 47.8 42.6 37.5 32.3 27.2 22.0 16.9 11.7 8.5 7.9 7.2 6.5 5.9 5.2 4.5 3.9 3.2 2.5 1.9 1.2 0.5 0.0

Interest of bank loans for operation 52.7 51.1 104.0 104.0 100.0 96.0 92.0 86.0 82.0 76.0 74.0 68.0 62.0 54.0 48.0 40.0 32.0 24.0 16.0 10.0 2.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Reserve for spent fuel disposal (US$/MWh) 3.50 15.7 25.7 41.4 51.4 51.4 51.4 51.4 51.4 51.4 51.4 51.4 51.4 51.4 51.4 51.4 51.4 51.4 51.4 51.4 51.4 51.4 51.4 51.4 51.4 51.4 51.4 51.4 51.4 51.4 51.4 27.6 25.7

Reserve for decommissioning (million US$/year/unit) 20.0 20.0 20.0 40.0 40.0 40.0 40.0 40.0 40.0 40.0 40.0 40.0 40.0 40.0 40.0 40.0 40.0 40.0 40.0 40.0 40.0 40.0 40.0 40.0 40.0 40.0 40.0 40.0 40.0 40.0 40.0 20.0 20.0

(Total) 503 560 952 984 977 970 963 955 948 939 938 929 920 910 901 891 880 738 562 558 552 553 556 559 563 567 570 574 578 582 461 427

Net Annual Profit(Total) -281 -194 -356 -237 -223 -208 -194 -178 -163 -147 -137 -120 -103 -85 -68 -49 -30 121 305 317 332 342 349 356 363 371 379 387 396 404 85 89

Balance Sheet (Million US$)Assets

Currency 700 700 700 390 1,000 890 50 28 31 38 60 15 59 57 69 96 37 94 66 74 72 87 19 69 36 21 26 13 62 20 289 664 1,044 1,428 1,819 2,214 2,616 3,022 3,435 3,917 4,122 4,356

Nuclear Fuel 0 0 0 0 0 0 0 70 140 280 375 438 462 462 462 462 462 462 462 462 462 462 462 462 462 462 462 462 462 462 462 462 462 462 462 462 462 462 462 399 336 210

Machinery & equipment 0 0 0 0 0 0 0 0 0 2,498 2,342 4474 4,174 3,875 3,576 3,277 2,978 2,679 2,380 2,261 1,962 1,662 1,363 1,064 765 466 167 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Civil works and buildings 0 0 0 0 0 0 0 0 0 814 787 1280 1,236 1,191 1,147 1,102 1,058 1,013 969 924 880 835 791 746 702 658 613 569 524 480 435 391 346 302 257 213 168 124 79 35 0 0

Lands 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Construction-in-process Account of Unit 1 0 0 0 310 370 450 1,330 2,032 2,699 3,312 0

Construction-in-process Account of Unit 2 0 0 0 0 30 60 120 870 1,430 1,970 2,491 2,808 0

(Assets Total) 700 700 700 700 1,400 1,400 1,500 3,000 4,300 5,600 6,054 6,206 5,931 5,585 5,254 4,937 4,534 4,248 3,876 3,721 3,376 3,047 2,635 2,341 1,965 1,607 1,268 1,044 1,048 962 1,186 1,516 1,852 2,192 2,538 2,889 3,246 3,608 3,977 4,351 4,458 4,566

LiabilitiesBank Loan 0 0 0 0 0 0 100 1,600 2,900 4,200 4,900 5,200 5,200 5,000 4,800 4,600 4,300 4,100 3,800 3,700 3,400 3,100 2,700 2,400 2,000 1,600 1,200 800 500 100 0 0 0 0 0 0 0 0 0 0 0 0

Reserve for spent fuel disposal 0 0 0 0 0 0 0 0 0 0 16 41 83 134 186 237 288 340 391 442 494 545 597 648 699 751 802 853 905 956 1,008 1,059 1,110 1,162 1,213 1,265 1,316 1,367 1,419 1,470 1,498 1,523

Reserve for decommissioning 0 0 0 0 0 0 0 0 0 0 20 40 80 120 160 200 240 280 320 360 400 440 480 520 560 600 640 680 720 760 800 840 880 920 960 1,000 1,040 1,080 1,120 1,160 1,180 1,200

(Total) 0 0 0 0 0 0 100 1,600 2,900 4,200 4,936 5,281 5,363 5,254 5,146 5,037 4,828 4,720 4,511 4,502 4,294 4,085 3,777 3,568 3,259 2,951 2,642 2,333 2,125 1,816 1,808 1,899 1,990 2,082 2,173 2,265 2,356 2,447 2,539 2,630 2,678 2,723

CapitalStocks 700 700 700 700 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400

Carry-over Profit 0 0 0 0 0 0 0 0 0 0 -281 -475 -832 -1,069 -1,291 -1,500 -1,694 -1,872 -2,035 -2,181 -2,318 -2,438 -2,542 -2,627 -2,695 -2,744 -2,774 -2,690 -2,476 -2,254 -2,022 -1,783 -1,539 -1,290 -1,035 -775 -510 -239 38 321 381 443

(Total of Liabilities, Capital & Profit) 700 700 700 700 1,400 1,400 1,500 3,000 4,300 5,600 6,054 6,206 5,931 5,585 5,254 4,937 4,534 4,248 3,876 3,721 3,376 3,047 2,635 2,341 1,965 1,607 1,268 1,044 1,048 962 1,186 1,516 1,852 2,192 2,538 2,889 3,246 3,608 3,977 4,351 4,458 4,566

８**S-GE-20140003


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