DELIVERING SUPERIOR SHAREHOLDER VALUE. PALO VERDE OVERVIEW Randy Edington

Transcription

1 DELIVERING SUPERIOR SHAREHOLDER VALUE PALO VERDE OVERVIEW Randy Edington

2 PALO VERDE OVERVIEW AGENDA 2 Business plan/objectives Performance trends Major capital improvements Fukushima follow-up Operating license extensions

3 PALO VERDE MISSION 3 We SAFELY and efficiently generate electricity for the long term.

4 PALO VERDE MISSION 4 We SAFELY and efficiently generate electricity for the long term.

5 PALO VERDE MISSION 5 We SAFELY and efficiently generate electricity for the long term.

6 PALO VERDE BUSINESS PLAN 6 Our business plan guides all of our operations and initiatives. We SAFELY and efficiently generate electricity for the long term

7 PALO VERDE GOALS BY 2013/ We target top-quartile cost per megawatt-hour by Safety TISAR top quartile No NRC Reactor Oversight Process issues: No greater than GREEN findings No cross-cutting issues Industry metrics Generation Greater than or equal to 92% capacity factor Refueling outages less than or equal to 30 days Cost Less than $20 per MWh (2 cents per kwh)

8 PALO VERDE BUSINESS AND STRATEGIC PLANS 8

9 9 STARS ALLIANCE We team with other nuclear plants to create efficiencies and purchasing power. Headquarters Palo Verde (Arizona) Callaway (Missouri) Comanche Peak (Texas) Diablo Canyon (California) San Onofre (California) CA AZ KS MO South Texas (Texas) TX Wolf Creek (Kansas)

10 PALO VERDE NET GENERATION 10 Palo Verde has exceeded 30 million megawatt-hours annual production seven times the only U.S. plant to ever do so Million Megawatt Hours Projected

11 TOTAL INDUSTRIAL ACCIDENT RATE 11 Palo Verde s safety metrics compare favorably with industry norms and are improving. 0.6 ISAR TISAR th Quartile ISAR/TISAR Rate rd Quartile nd Quartile st Quartile 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q

12 U.S. NUCLEAR OPERATING COSTS 12 Palo Verde operating costs are below industry averages and improving. Dollars per Megawatt-Hour Industry Average Industry Median Projected

13 PALO VERDE MAJOR CAPITAL PROJECTS 13 Completed capital projects position Palo Verde well for safe, efficient operations for the long term. Major capital projects completed in past 10 years Steam generator replacements Reactor vessel head replacements New rapid refueling packages Main transformers Main generator rotors Circulating water system tie-in for future cooling towers Energy Education Center Cooling tower replacement update

14 PALO VERDE MAJOR CAPITAL PROJECTS 14 Steam generators Installed Reactor vessel heads Installed

15 PALO VERDE MAJOR CAPITAL PROJECTS 15 Before Rapid refueling packages Installed Increased efficiency and safety Reduced future outage durations After

16 PALO VERDE MAJOR CAPITAL PROJECTS 16 Main transformers 2008 to 2018 Main generator rotors Most recent outage Circulating water system tie-in for potential future cooling towers

17 PALO VERDE MAJOR CAPITAL PROJECTS 17 Energy Education Center Public education Response coordination in state-of-the-art Emergency Operations Facility Joint Information Center

18 FUKUSHIMA FOLLOW-UP 18 Fukushima Event Response Team Room

19 FUKUSHIMA FOLLOW-UP 19 Low risk of natural events at Palo Verde Seismic and flooding walk-downs conducted Changes in NRC regulations and industry standards Palo Verde

20 FUKUSHIMA FOLLOW-UP 20 FLEX / Beyond Design Bases Event Mitigation Enhanced Procedures and Emergency Plans Significant Investment in Safety

21 PALO VERDE ECONOMIC IMPACT 21 Palo Verde is estimated to favorably impact Arizona by $1.8 billion each year. Largest single commercial taxpayer in Arizona 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 2,800 employees Amounts represent total Palo Verde project. Source: Applied Economics, Palo Verde Economic Study, May 2010

22 PALO VERDE LICENSE RENEWAL 22 We SAFELY and efficiently generate electricity for the long term