Palo Verde Nuclear Generating StationPalo Verde Nuclear Generating Station

Mark FallonSection Leader, Palo Verde Communications

Mark FallonSection Leader, Palo Verde Communications

The Palo Verde Leadership ModelThe Palo Verde Leadership Model

We SAFELY and efficientlygenerate electricityfor the long term

U.S. Industrial Safety Accident RateU.S. Industrial Safety Accident Rate

0.12

2.20

3.30

Nuclear Power Plants Utilities Manufacturing

Sources: Nuclear (World Association of Nuclear Operators), 2006 Data for Electric Utilities and Manufacturing (U.S. Bureau of Labor Statistics)

ISAR = Number of accidents resulting in lost work, restricted work, or fatalities per 200,000 worker hours. Electric utilities and manufacturing do not include fatality data.

76.1872.89

56.4253.76

42.0441.71

39.3539.22

37.1535.62

32.9232.45

29.7328.29

24.9319.66

18.2717.54

16.8614.8

13.456.18

5.254.043.8

3.122.152.031.91

47.4

0 10 20 30 40 50 60 70 80

FranceLithuaniaSlovakiaBelguimUkraineSwedenSloveniaArmenia

SwitzerlandHungary

Korea RPBulgaria

Czech RPFinland

GermanyJapan

UNITED STATESSpain

RomaniaRussia

CanadaUnited Kingdom

ArgentinaSouth Africa

MexicoNetherlands

BrazilChinaIndia

Pakistan

World Nuclear Power Generation Percentage of Total Generation in 2008World Nuclear Power Generation Percentage of Total Generation in 2008

SOURCES: DOE Energy Information Administration and International Atomic Energy Agency

Nuclear represents14.2 percent of the

world’s total generation

World Nuclear Power GenerationTop 10 in Billion Kilowatt-hours — 2008World Nuclear Power GenerationTop 10 in Billion Kilowatt-hours — 2008

806.2

418.3

240.5

152.1 144.3 140.988.6 84.3 65.3 61.3

U.S. France Japan Russia Korea Rep. Germany Canada Ukraine China Sweden

SOURCES: DOE Energy Information Administration and International Atomic Energy Agency

IN OPERATION…332 nuclear plants outside the U.S.104 nuclear plants in the U.S.

436 total nuclear plants worldwide(14.2 percent of the world’s generation)

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

China

Russia

India

South Korea

Canada

Japan

Slovak Republic

Taiwan

Argentina

Finland

France

Iran

Pakistan

United States

UNDER CONSTRUCTION…51 outside the U.S.1 in the U.S. (Watts Bar)

52 total worldwide

SOURCE: International Atomic Energy Agency

World Nuclear Power GenerationUnder ConstructionWorld Nuclear Power GenerationUnder Construction

World Nuclear Power GenerationProposed by 2030World Nuclear Power GenerationProposed by 2030

0 10 20 30 40 50 60 70 80 90 100

ChinaRussia

South AfricaUkraine

USAIndiaUAEItaly

VietnamTaiwanPolandBrazil

IndonesiaThailand

United KingdomCanada

SwitzerlandBangladesh

BelarusCzech Rep

HungaryKazakhstan

LithuaniaM exico

PakistanArgent ina

ArmeniaEgypt

FinlandFrance

IranIsraelJapan

RomaniaSlovakiaSlovenia

Turkey

SOURCES: Nuclear Energy Institute, World Nuclear Association

295 expected worldwide by 2030 19 in the U.S.

303,405 total megawatts

U.S. Electric Power GenerationPercentage by Fuel Type — 2008U.S. Electric Power GenerationPercentage by Fuel Type — 2008

Coal: 48.5%Coal: 48.5%

Nuclear: 19.6%

Nuclear: 19.6%

Renewables:3%

Renewables:3%

Oil and Other:1.35%

Oil and Other:1.35%

Natural Gas: 21.3%

Natural Gas: 21.3%

Hydro: 6%

Hydro: 6%

SOURCE: DOE Energy Information Administration

APS Power Supply — 2008APS Power Supply — 2008

Coal:37.4%Coal:37.4%

Nuclear:24.2%

Nuclear:24.2%

Renewables:Less than 1%Renewables:Less than 1%

Natural Gas:18%

Natural Gas:18%

Purchased Power:20.4%

Purchased Power:20.4%

SOURCE: Pinnacle West Annual Report

APS Power Generation — 2008APS Power Generation — 2008

Coal:46.9%Coal:46.9%

Nuclear:30.3%

Nuclear:30.3%

Renewables:Approx. 1%Renewables:Approx. 1%

Natural Gas: 22%Natural

Gas: 22%

SOURCE: Pinnacle West Annual Report

U.S. Power GenerationCapacity Factor by Fuel Type — 2008U.S. Power GenerationCapacity Factor by Fuel Type — 2008

12.614.6

21.127.4

31.1

41.7

70.8

91.5

0

10

20

30

40

50

60

70

80

90

100

Nuclear Coal GasCombined

Cycle

Wind Hydro Solar Gas SimpleCycle

Oil

12.614.6

21.127.4

31.1

41.7

70.8

91.5

0

10

20

30

40

50

60

70

80

90

100

Nuclear Coal GasCombined

Cycle

Wind Hydro Solar Gas SimpleCycle

Oil

Source: Ventyx Velocity Suite

APS Load Peak DemandDaily Maximum Demand in MegawattsAPS Load Peak DemandDaily Maximum Demand in Megawatts

00

1,0001,000

2,0002,000

3,0003,000

4,0004,000

5,0005,000

6,0006,000

7,0007,000

8,0008,000

JanuaryJanuary DecemberDecember

Changing DemographicsChanging Demographics2000 – 5 million People

2030 – 12 million People

2050 – 16 million People

SOURCE: State of Arizona

Operating Nuclear PlantsOperating Nuclear Plants

104 reactors currently licensed to operate at

65 sites in the U.S.

Proposed Nuclear PlantsProposed Nuclear Plants

U.S. Nuclear Generation2008 Site-By-Site Total OutputU.S. Nuclear Generation2008 Site-By-Site Total Output

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

Palo Verde

Palo Verde

(Megawatt-hours)

SOURCE: DOE Energy Information Administration

Palo Verde Participants ─ OriginalPalo Verde Participants ─ Original

APS (29.1%)APS (29.1%)

SRP (29.1%)SRP (29.1%)

Tucson Electric (15.8%)

Tucson Electric (15.8%)

El Paso Electric (15.8%)

El Paso Electric (15.8%)

Public Service Co. of New Mexico (10.2%)

Public Service Co. of New Mexico (10.2%)

APS (29.1%)APS (29.1%)

SRP (17.49%)SRP (17.49%)

So. CaliforniaEdison Co. (15.8%)

Purchased from Tucson Electric

So. CaliforniaEdison Co. (15.8%)

Purchased from Tucson Electric

El Paso Electric (15.8%)

El Paso Electric (15.8%)

Public Service Co. of New Mexico (10.2%)

Public Service Co. of New Mexico (10.2%)

So. California Public Power Authority (5.91%)

Purchased from SRP

So. California Public Power Authority (5.91%)

Purchased from SRP

Los Angeles Dept. ofWater & Power (5.7%)

Purchased from SRP

Los Angeles Dept. ofWater & Power (5.7%)

Purchased from SRP

Palo Verde Participants ─ CurrentPalo Verde Participants ─ Current

Palo Verde…By the NumbersPalo Verde…By the Numbers• Initial construction permit

— May 1976• Began commercial

operationUnit 1: January 1986Unit 2: September 1986Unit 3: January 1988

• Initial construction permit — May 1976

• Began commercial operation

Unit 1: January 1986Unit 2: September 1986Unit 3: January 1988

Palo Verde…By the NumbersPalo Verde…By the Numbers• Largest power generator in

the U.S.• Total output 4,030 net

megawatts– Meets the electrical needs of

approximately 4 million people around the clock

• Largest power generator in the U.S.

• Total output 4,030 net megawatts– Meets the electrical needs of

approximately 4 million people around the clock

• For the same electrical generation from solar or wind, you would need approximately:– 125 square miles of photovoltaic

panels or parabolic troughs (about the size of Mesa)

– 531 square miles for wind generators (about the size of Phoenix and Glendale combined)

• For the same electrical generation from solar or wind, you would need approximately:– 125 square miles of photovoltaic

panels or parabolic troughs (about the size of Mesa)

– 531 square miles for wind generators (about the size of Phoenix and Glendale combined)

Sources: Global Energy Decisions, U.S. Department of Energy, Electric Power Research Institute

Palo Verde…By the NumbersPalo Verde…By the Numbers

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Coal - 2.75Gas - 8.09Nuclear - 1.87Petroleum - 17.26

U.S. Electricity Production Costs1995-2008, In 2008 cents per kilowatt-hourU.S. Electricity Production Costs1995-2008, In 2008 cents per kilowatt-hour

Production Costs = Operations and Maintenance Costs + Fuel Costs. Production costs do not include indirect costs and are based on FERC Form 1 filings submitted by regulated utilities. Production costs are modeled for utilities that are not regulated.

SOURCE: Ventyx Velocity Suite / Updated: 5/09

2008 Costs

Other Economic BenefitsOther Economic Benefits• Total estimated annual impact of $1.8 billion

in Arizona• Largest single commercial taxpayer in

Arizona, including nearly $50 million in property taxes annually

• Local purchases of materials and services• Palo Verde employees donate

approximately $1 million annually to local charities

• Approximately 3,000 employees

• Total estimated annual impact of $1.8 billion in Arizona

• Largest single commercial taxpayer in Arizona, including nearly $50 million in property taxes annually

• Local purchases of materials and services• Palo Verde employees donate

approximately $1 million annually to local charities

• Approximately 3,000 employees

Where Our Employees LiveThe Top 20 CommunitiesWhere Our Employees LiveThe Top 20 Communities

487

318

271

250

162

145

117

112

44

42

33

26

21

18

17

17

15

9

8

243

0 50 100 150 200 250 300 350 400 450 500

Buckeye

Goodyear

Phoenix

Glendale

Peoria

Litchfield Park

Avondale

Tonopah

Surprise

Waddell

Wickenburg

Chandler

Mesa

Gilbert

Arlington

El Mirage

Scottsdale

Tempe

Sun City

Tolleson

• Buckeye: Approximately 20% of employees• West and Northwest Valley: Approximately 70% of employees• East Valley: Approximately 5% of employees

Employee Ages and Years of ServiceEmployee Ages and Years of Service

Hiring and Development Model…Hiring for OUR FutureHiring and Development Model…Hiring for OUR Future

Planning for OUR future includes:

Workforce Planning

Initial and Targeted Hires

Performance Management

Development and Retention

Compensation and Rewards

Metrics / Effectiveness Reviews

70% - 90%

10% -30%

Environmental BenefitsEnvironmental Benefits• During the first two decades of operations,

Palo Verde has displaced approximately:– 410 million metric tons of carbon dioxide

(contributes to global warming) – 345 thousand short tons of sulfur dioxide

(contributes to acid rain)– 670,000 short tons of nitrogen oxides (contributes

to ozone depletion)

• During the first two decades of operations, Palo Verde has displaced approximately:– 410 million metric tons of carbon dioxide

(contributes to global warming) – 345 thousand short tons of sulfur dioxide

(contributes to acid rain)– 670,000 short tons of nitrogen oxides (contributes

to ozone depletion)

SOURCE: DOE Energy Information Administration

U.S. Electricity Sources Which Do Not Emit Greenhouse GasesU.S. Electricity Sources Which Do Not Emit Greenhouse Gases

Nuclear73.6%

Wind2.9%

Geothermal1.4%

Solar0.1%

Hydro22.0%

Source: Ventyx Velocity Suite / Energy Information Administration

Conserving WaterConserving Water• Unlike other sites, Palo

Verde has no lake, ocean or river ― so recycled wastewater is utilized– City of Phoenix’s 91st Ave Wastewater

Treatment Facility– Tolleson Wastewater Treatment

Facility

• Unlike other sites, Palo Verde has no lake, ocean or river ― so recycled wastewater is utilized– City of Phoenix’s 91st Ave Wastewater

Treatment Facility– Tolleson Wastewater Treatment

Facility

Conserving WaterConserving Water• Palo Verde’s Water

Reclamation Facility can recycle up to 90 million gallons of wastewater daily– Average daily cooling water usage

during the summer is 80 million gallons

– Average daily water usage for the year is 65 million gallons

– This is about the same total cooling water use as a coal-fired power plant per megawatt-hour

• Palo Verde’s Water Reclamation Facility can recycle up to 90 million gallons of wastewater daily– Average daily cooling water usage

during the summer is 80 million gallons

– Average daily water usage for the year is 65 million gallons

– This is about the same total cooling water use as a coal-fired power plant per megawatt-hour

The Power of NuclearThe Power of Nuclear

=

Three barrels of oil (165 gallons)Three barrels of oil (165 gallons)

17,000 cubic feet of natural gas17,000 cubic feet of natural gas

One ton of coalOne ton of coal

The energy contained in one fuel pellet . . .The energy contained in one fuel pellet . . .

Monthly Fuel Cost to U.S. UtilitiesCents per kilowatt-hour 1995-2008Monthly Fuel Cost to U.S. UtilitiesCents per kilowatt-hour 1995-2008

SOURCE: Ventyx Velocity Suite / Updated: 5/09

Coal

Gas

Oil - Heavy

Uranium0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

O&M20%

O&M74%

Fuel80% Fuel

93%

Fuel26%

O&M, 7%

Coal Gas Nuclear Nuclear FuelComponent Cost

Fuel as a Percentage of Electric Power Production Costs (2008)Fuel as a Percentage of Electric Power Production Costs (2008)

ConversionFabrication

Waste Fund

Enrichment

Uranium

SOURCE: Ventyx Velocity Suite; Energy Resources International, Inc. / Updated: 7/09

MiningMining

ConcentrationConcentration

ConversionConversion

EnrichmentEnrichment

Fuel Fabrication

Fuel Fabrication

RetrievableStorage

RetrievableStorage

Interim SiteStorage

Interim SiteStorage

The Nuclear Fuel Cycle

The Nuclear Fuel Cycle

Transporting New FuelTransporting New Fuel

• Prior to each refueling outage, 88-108 fuel assemblies are delivered by truck– One fuel assembly per canister– About 10 canisters per truck– 10-15 truckloads

• Following inspection, new fuel assemblies are stored in the Fuel Building

• Prior to each refueling outage, 88-108 fuel assemblies are delivered by truck– One fuel assembly per canister– About 10 canisters per truck– 10-15 truckloads

• Following inspection, new fuel assemblies are stored in the Fuel Building

Used Fuel StorageUsed Fuel Storage

Fuel assemblies are removed from the reactor and moved —under water —into the used fuel pool and stored in racks.

Fuel assemblies are removed from the reactor and moved —under water —into the used fuel pool and stored in racks.

On-Site Dry Fuel StorageOn-Site Dry Fuel Storage• Palo Verde Goal: Always have full core

offload capability– Spent fuel pools have reached maximum capacity– Established additional dry fuel storage facility

Fuel is sealed inside leak-tight steel canisterSteel canister inside concrete caskCasks sit on concrete pads outdoors

– Storage facility has full security measures

• Palo Verde Goal: Always have full core offload capability– Spent fuel pools have reached maximum capacity– Established additional dry fuel storage facility

Fuel is sealed inside leak-tight steel canisterSteel canister inside concrete caskCasks sit on concrete pads outdoors

– Storage facility has full security measures

Dry Casks in Storage60 Total Casks in April 2009Dry Casks in Storage60 Total Casks in April 2009

Vertical Concrete Canister(Aggregate concrete reinforced with steel rebar)

Vertical Concrete Canister(Aggregate concrete reinforced with steel rebar)

Dual PurposeTransportable

Storage Canister(stainless steel)

Dual PurposeTransportable

Storage Canister(stainless steel)

Welded DualCanister LidsWelded DualCanister Lids

Fuel Assemblies(24 total)

Fuel Assemblies(24 total)

Dual Canister Lids(steel/concrete shield plug and

carbon steel plate)

Dual Canister Lids(steel/concrete shield plug and

carbon steel plate)

Dry Fuel Storage ContainerDry Fuel Storage Container

Protecting Palo VerdeProtecting Palo Verde

Owner Controlled Area (OCA)Owner Controlled Area (OCA)

Security Owner Controlled Area (SOCA)Security Owner Controlled Area (SOCA)

Protected AreasProtected Areas

Vital AreasVital Areas

Containment Building StructureContainment Building Structure

Basemat: approximately 10 feet thick (60’ below grade)

Dome: thickness of approximately 4 feet at springline to 3-1/2 feet at the top

Shell: thicknessof average 4-1/2 feet

High-strength concreteReinforced with post-tensioned tendon system (horizontal and vertical)Steel liner

Fuel Building StructureFuel Building Structure

Basemat: thickness up to 12 feet

High-strength concrete Rebar reinforcements in walls, roof and floor

Roof: thickness of more than 20 inches, supported by steel truss system

Walls: thicknessup to 8 feet

Pressurized Water ReactorPressurized Water Reactor

If only there was a viable reliable

alternative sourceof energy that islow in greenhousegas emissions and

plentiful.

Questions and

Discussion

Questions and

Discussion