Improving Air Quality Through Energy Efficiency

1. Improving Air Quality Through Energy Efficiency NJ Clean Air Council April 11, 2007 Paul H. Genoa Director, Policy Development

2. Overview • Energy efficiency – two dimensions • Demand side, supply side • Nuclear efficiency gains = clean air benefits • Reduced GHG & criteria pollutant emissions • Future nuclear offers non-traditional benefits • Transportations sector emissions reduction • Energy extraction efficiency improvements

3. U.S. Electricity Generation and Net Summer Capacity Fuel Shares Generation, 2006* Net Summer Capacity, 2005 * Preliminary Source: Global Energy Decisions / Energy Information Administration Updated: 4/07

4. U.S. Nuclear Industry Net Electricity Generation and Avoided Emissions 1990-2006 Increase in nuclear generation from 1990. Equivalent to avoiding 2 billion metric tons of carbon dioxide. Nuclear (bkWh) 1990 576.9 2006* 787.2 bkWh * Preliminary Source: Global Energy Decisions / Energy Information Administration Updated: 4/07

5. Efficiency Yields Economic Performance U.S. Nuclear Production Cost 2000: 2.01 cents/kWh 2001: 1.90 cents/kWh 2002: 1.90 cents/kWh 2003: 1.86 cents/kWh 2004: 1.83 cents/kWh 2005: 1.77 cents/kWh 2006: 1.65 cents/kWh* 2006 Cents per kilowatt-hour Source: Global Energy Decisions * NEI estimate for 2006

6. Emissions Reductions in Perspective • The UNFCCC estimates that the Kyoto Protocol’s Clean Development Mechanism (CDM) will generate 1.2 billion tonnes of emission reductions by the end of 2012 • Worldwide, nuclear power avoids the emissions of around 2 billion tonnes of CO2 annually Source: UNFCCC CDM Statistics (http://cdm.unfccc.int/statistics) and International Energy Agency. Emissions avoided by nuclear power are calculated using an average fossil fuel emissions rate that is weighted by the ratio of projected coal and gas generation.

7. World Nuclear Generation 1973 – 2005, Billion kWh World nuclear generation avoids more than 2 billion tons of carbon dioxide each year since 1992.1 Source: International Atomic Energy Agency 1One billion kWh from nuclear avoids about one million tons of carbon dioxide. Updated: 6/06

8. U.S. Electric Power Industry CO2 AvoidedMillion Metric Tons2006 Source: Emissions avoided are calculated using regional and national fossil fuel emissions rates from the Environmental Protection Agency and plant generation data from the Energy Information Administration. Updated: 4/07

9. Nuclear Energy Has an Environmental Impact Comparable to Renewables Life Cycle Emissions for Various Electricity Sources Source: “Hydropower-Internalised Costs and Externalised Benefits,” Frans H. Koch. International Energy Agency

10. Nuclear Energy is the Largest Source of Emission Free Electricity in the U.S. Source: Global Energy Decisions / Energy Information Administration

11. Nuclear Power Dominates the U.S. Voluntary CO2 Reductions Program Source: Energy Information Administration Voluntary Reporting of Greenhouse Gases 2004

12. U.S. Nuclear Plant UpratesCumulative Capacity Additions at Existing Plants 2000-2011 1,383 MWe Expected 1,057 MWe Under Review 2,909 MWe Approved Source: Nuclear Regulatory Commission

13. Restart of Browns Ferry Unit 1:On Schedule, On Budget • On schedule to restart in May 2007 • On budget at $1.8 billion • Adds 1,280 MW of capacity • Will bring U.S. nuclear fleet to 104 reactors

14. Renewal of Operating Licenses Continues 25 Intend to Renew 48 Granted 8 in 2006 1 in 2007 22 Unannounced 8 Under NRC Review 6 Filed in 2006 Source: U.S. Nuclear Regulatory Commission

15. High Efficiency Hydrogen Plant Process Heat Application HTGR and Turbo-Generator The NGNP Concept – HTGR Demonstration