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Market Briefing. USA. 28th January


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Market Briefing. USA. 28th January

  1. 1. Collaborating to Pursue and Win UK/US/International Nuclear Export Opportunities January 28, 2014 Ralph Hunter Vice President – Nuclear Development Exelon Nuclear Partners, LLC +1 610 765 5230
  2. 2. Overview of Exelon • Approximately 35,000 MWe of owned capacity comprising one of the nation’s cleanest and lowest-cost power generation fleets • Over 19,000 MWe of Nuclear • Ranked #1 Gas & Electric Utility in U.S. Fortune 500 • $23.5 billion (USD) in annual revenues Traditional Transmission and Distribution • U.S. leader in safety, efficiency and innovation in nuclear operations • 18 reactors at 11 sites • Operator of Fort Calhoun Station (FCS) • Distributes electricity to 3.8 million customers • Distributes electricity to 1.6 million customers and distributes gas to 500,000 customers • CENG operates 5 reactors at 3 sites 2 2 • Distributes electricity to 1.2 million customers and distributes gas to 700,000 customers • Leading competitive retail and wholesale energy supplier with over 1 million residential customers
  3. 3. Exelon Nuclear  Largest U.S. nuclear fleet  14 sites with 23 reactors  Third largest fleet in the world  Premier U.S. nuclear fleet  High fleet capacity factor: • 94.1% fleet average in 2013 • 93% average since 2000 • ~25 day average refueling outages  Low fleet production costs  Excellent safety performance  Strong reputation for excellence in operational 3 3
  4. 4. Exelon Nuclear Fleet Performance Key Performance Indicators 2012 - Two Year Average Rank Production Cost Utility A Utility B Utility B Presentation Title Capacity Factor Utility A 4 4 Safety Performance Utility D Utility C
  5. 5. Exelon Nuclear Fleet Performance Annual Capacity Factor Performance of Exelon compared to U.S. and Global Nuclear Industry Exelon fleet U.S. Average (net) Worldwide Average (gross) What drives our consistent performance? 5 5 5 5 The Exelon Nuclear Management Model seeks excellence in all business processes 5
  6. 6. Exelon Nuclear Management Model  Exelon uses a comprehensive management system known as the Exelon Nuclear Management Model to achieve the following two objectives:  To improve the safety performance and operational efficiency of the organization through planning, control, supervision and oversight of all activities in normal, outage, transient, and emergency situations; and,  To foster and support a strong safety culture through the development and reinforcement of good safety attitudes and behaviors in individuals and teams to allow them to carry out their tasks safely.  The Exelon Nuclear Management Model contains all necessary policies, programs and procedures, but its success is driven by a strong leadership team and independent oversight organization. 6 6  Both corporate and site organizational structures are used to implement the
  7. 7. Overview of Exelon Nuclear Partners  Business unit of Exelon Generation  Uses established in-country or regional alliance partners and Exelon’s talent, expertise and experience to manage and staff projects  Broad spectrum of support from new plant development services to targeted consultative performance improvement and comprehensive full facility management 7 7 7
  8. 8. Exelon Nuclear Partners’ Business Model  Surging global demand for electricity and unstable supply are driving renewed interest in the potential of nuclear energy – but deep expertise is needed to ensure that it is safe, reliable, and efficient.  As world-class owner-operators with an industry-leading performance record, we are making our expertise – and our proven model – available globally to enable sustained excellence in nuclear energy  We deliver rapid ROI for our clients: maximizing capacity and revenue for existing plants and helping new operators achieve world-class performance from day one.  A continuously updated nuclear management model, a culture of excellence and access to world-class specialists within Exelon provides ENP with the resources to assist clients to allow them to harness the full power of nuclear energy. 8 8
  9. 9. Exelon Nuclear Partners’ Business Model  Internationally: Exelon Nuclear Partners is positioned to fill the void in emerging / expanding nuclear markets where prospective operators and regulators are “learning as they go”  Scope of services can range from high level consultation to operational services Nascent Programs / New Operators Establishing Nuclear Supply Chains Need for PWR & BWR Experience Exelon Nuclear Established Nuclear Supply Chains PWR , BWR & ABWR Experience Need for Capacity Building Operating Company needs 9 Proven staffing and training Nuclear Management Model Establishing a Culture of Safety Safety Culture
  10. 10. Exelon Nuclear Partners Global Presence UK Lithuania Poland Czech Republic Turkey USA Republic of Korea KSA UAE Brazil South Africa Active/Completed Projects Business Development Opportunities Focus Areas of increased new nuclear development 10 10 China 10 Japan
  11. 11. Exelon’s Nuclear Supply Chain Model Strategy & Planning • SC optimization and transparency • Sensors and simulators of customer demand • Alignment of business and SC strategies with partners • Variable cost structures • Sustained SC cost management and reduction strategies via advanced analytics • Risk adjusted inventory optimization 11 Competency Areas Lifecycle Management Sourcing & Procurement • Sensors for preventative maintenance • Risk and compliance sensors and modeling • Collaborative development and engineering with customers and partners • Proactive and realtime supply network event monitoring • Knowledge sharing for continuous improvement • Sustainable “green” considerations throughout lifecycle • Model-driven systems engineering • Global sourcing and import logistics KPIs and detection • Contract management and strategic sourcing • Outsourcing to share risks across the global network and create variable structures • Predictive make vs. buy analytics Operations Asset Management • Optimized inventory controls and event detection • Total cost of ownership analysis • Networked design for manufacture, supply, use, and reuse • Geographic information systems Enterprise Applications • Demand driven production and postponement • Trade terms mgmt. linked to partner KPIs • Simulation model to evaluate flexibility factors: service levels, cost, time quality • Integrated asset and resource management • Proactive redeployment/reconfi guration/divesting of assets • Monitoring and realtime detection an alerts • ERP integration • Collaboration platforms: customer, provider and supplier • Enterprise and network performance management • Business intelligence and integrated analytics • Predictive analysis • KPI trends linked to training and change
  12. 12. Nuclear Supply Chain Localization Benefits  Fostering and developing a robust localized Supply Chain provides a number of benefits, however risks and constraints exist that must be considered to ensure flow of supply in support of optimized plant operations.  Success lies in finding a balance that reduces risk, but maximizes the benefits.  Exelon has chosen to leverage the existing global expertise for high risk engineered equipment, partnering in “alliances” to ensure a healthy Supply Chain for these critical items.  Localization, including establishment of in-country operations by foreign companies, provides buyers with the benefits of high 12 quality goods and a win-win for both countries 12
  13. 13. Nuclear Supply Chain Localization Benefits  Benefits :  Reduction of risk associated w/ global business continuity concerns (e.g. natural disasters, economic crisis)  Increased regional community goodwill because of positive impact on in-country jobs and tax base, translating to political and regulatory support  Allows exports to occur for specialized components with inventory being maintained locally to meet demand  Risks :  Nuclear power plants employ highly engineered technology with a very limited number of suppliers: • Reactor component and turbine generator supply chains are restricted to a few global players. Other engineered equipment manufacturing requires substantial capital and intellectual investment to be considered a healthy and reliable source of supply (e.g. I&C, valves, pumps, switchgear, etc.)  Development of new, local sources of Supply requires dedicated resources to manage and 13 13
  14. 14. Benefits of Partnering with Exelon  Access to America’s largest nuclear operator and buyer of nuclear services  Ability to collaborate on projects to bring “best in class” services to clients  Access to U.S. nuclear supply chain contacts and forums  For both parties, reduced in-country marketing and startup costs by working with a recognized entity and established relationships  Global recognition of both parties in forthcoming tenders to strengthen consortiums in pursuit of new business 14 14
  15. 15. Case Study: Exelon and AMEC Collaboration  AMEC and Exelon Nuclear Partners have begun a global collaboration to explore international opportunities across the nuclear sector.  The two organizations will focus on both the nuclear new-build and existing reactor marketplace, providing an unrivalled engineering, consultancy, project management and operations support service.  The collaboration will allow the leveraging of a joint capability from more than a century of delivery across the full nuclear energy lifecycle.  Initial efforts are focused in the US, UK and MENA 15 15
  16. 16. QUESTIONS ? 16 16