Exelon Generation Nuclear Uprate Projects June 12, 2009 Exhibit 99.2 |
2 This presentation includes forward-looking statements. There are a number of risks and uncertainties that could cause actual results to differ materially from the forward-looking statements made herein. The factors that could cause actual results to differ materially from these forward-looking statements include Exelon’s ability to achieve the full additional capacity contemplated by the proposed uprates, the availability of required components and raw materials, and the timing to complete the proposed uprates and obtain required regulatory approvals as well as those discussed in (1) Exelon’s 2008 Annual Report on Form 10-K in (a) ITEM 1A. Risk Factors, (b) ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of Operation and (c) ITEM 8. Financial Statements and Supplementary Data: Note 18; (2) Exelon’s First Quarter 2009 Quarterly Report on Form 10-Q in (a) Part II, Other Information, ITEM 1A. Risk Factors and (b) Part I, Financial Information, ITEM 1. Financial Statements: Note 13; and (3) other factors discussed in filings with the Securities and Exchange Commission by Exelon Corporation or Exelon Generation Company LLC (Companies). Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this communication. Neither of the Companies undertakes any obligation to publicly release any revision to its forward-looking statements to reflect events or circumstances after the date of this communication, except as required by law. Forward-Looking Statements |
3 • A successful 38-megawatt power uprate at Quad Cities in June 2009 launched a series of planned power uprates across Exelon’s nuclear fleet • Uprates equivalent in size of a new nuclear plant but significantly lower cost and shorter timeline • 1,300 – 1,500 MW • $3.5 billion ($2,200 – 2,500 / kW) 1 through 2017 • Positive economics, coming on-line between 2009 – 2017 • Capitalizes on Exelon’s proven track record of executing uprates • Contributes to long-term asset management and equipment reliability • Cost-effective growth option • Key component of Exelon 2020 low carbon roadmap Uprate projects on existing assets provide cost-effective growth and leverage Exelon’s operational excellence Exelon Generation Nuclear Uprate Projects 1 Dollars shown are overnight cost, cost per kW are for MUR and EPU combined |
MUR (Measurement Uncertainty Recapture) Through the use of advanced techniques and more precise instrumentation, reactor power can be more accurately calculated. These uprates achieve up to 1.7 percent additional output. MUR uprates require NRC approval. Categories of Nuclear Power Uprates Uprates Overnight Cost 187 – 234 MW $300M 899 – 1016 MW $2,400M 237 – 266 MW $800M EPU (Extended Power Uprate) Through a combination of more sophisticated analysis and upgrades to plant equipment, uprates can be obtained for as much as 20 percent of original licensed power level. EPU uprates require NRC approval. MW Recovery and Component Upgrades Replacement of major components in the plant occur in the normal life cycle process – with newer technology, replacements result in increased efficiency. Equipment includes generators, turbines, motors and transformers. MW Recovery and Component Upgrades must conform to NRC standards, but do not require additional NRC approval. 4 Project Duration Time 2 years 3 - 5 years 2 - 3 years ~1,300 – 1,500 MW $3.5B |
Exelon conducts a rigorous engineering and economic evaluation analysis for each project at each site Parameters Strategic Value Grow Value Regulatory Feasibility Execution Feasibility Supports Exelon 2020 Creates additional low-carbon generation capacity Creates long-term value Straightforward regulatory and environmental licenses, permits and approvals Dedicated project management team Proven technology design Evaluation Parameters 5 |
• Exelon has substantial experience managing successful uprate projects • 1,100 MWs of increased nuclear capacity over the past 10 years • Incremental 1,300 – 1,500 MWs of nuclear uprates are safe, economical and proven methods to improve efficiency and output Track Record of Execution Staggered execution provides for continued re-evaluation of project economics 6 EPUs MURs MW Recovery and Component Upgrades Maximum Potential MWs Year Uprates Become Operational 1,100 MW 1,300 – 1,500 MW |
Uprate Execution Plan Total Uprate Projects 2008 - 2009 2010 2011 2012 2013 2014 2015 2016 2017 2008 - 2017 $225 $350 $550 $675 $625 $725 $725 $400 $150 $4,425 Experienced project management organization in place Engineering evaluation incorporates industry and Exelon lessons learned Project plan execution • Logically sequenced • Phased to leverage experience, ensure best use of resources • Project offramps in place as needed to defer or cancel 7 Exelon has an executable, strategically sequenced, project implementation plan 1 Dollars shown are nominal, reflecting 6% escalation, in millions 1 |
Locations of Nuclear Power Uprate Projects 8 • Nuclear uprates span across nine plants Exelon’s $2,200 – 2,500 / kW overnight cost for its MUR and EPU projects is better value than the cost for a nuclear new build that has been estimated as high as $4,500 / kW (2007 dollars) Base Maximum Case Potential MW MW Braidwood - MUR 34 - 42 2012 Byron - MUR 34 - 42 2012 Clinton - EPU 17 - 17 2016 Clinton - EPU 2 - 3 2010 Dresden - MW Recovery & Component Upgrades 103 - 110 2012 Dresden - MW Recovery & Component Upgrades 5 - 5 2011 Dresden - MUR 25 - 31 2014 LaSalle - MUR 32 - 40 2011 LaSalle - EPU 303 - 336 2016 Limerick - MUR 33 - 41 2011 Limerick - MW Recovery & Component Upgrades 6 - 6 2012 Limerick - EPU 306 - 340 2017 Peach Bottom - MW Recovery & Component Upgrades 25 - 32 2012 Peach Bottom - EPU 134 - 148 2015 Peach Bottom - MW Recovery & Component Upgrades 3 - 3 2014 Quad Cities - MUR 19 - 23 2013 Quad Cities - MW Recovery & Component Upgrades 95 - 110 2011 TMI - EPU 138 - 172 2016 TMI - MUR 12 - 15 2014 Total 1,323 - 1,516 Year of Operation |