Securing our nuclear future

Presented to:University of Western Ontario

Presented by:Duncan Hawthorne

President & Chief Executive Officer

September 28, 2006

2

Global Energy Factors

• Increase in worldwide demand.• Security of supply concerns• Aging infrastructure• Market designs changing• Greater recognition of environmental concerns• Society preference for renewables… but changing !!!!

Given this common set of global energy factors the need for new nuclear is clear. For this reason, the debate over new

nuclear is taking place throughout the world.

3

Global Electricity Demand

0

5,000

10,000

15,000

20,000

25,000

30,000

2002 2010 2015 2020 2025

*Billion Kilowatthours

By 2025 electricity consumption from emerging economies will increase by over 250%.

4

0

10

20

30

40

50

60

70

80

90

100

Solar Wind Hydro Gas Nuclear Coal

Source: Ipsos-Reid, 2005.

Public Opinion

5

“There is no sensible alternative to nuclear power if we are to sustain civilization.”

James Lovelock, preeminent world leader in the development of environmental consciousness

6

Nuclear in the world today

• There 440 commercial nuclear power reactors operating in 31 countries, with over 364,000 MWe of total capacity.

• These units supply 16% of the world's electricity, as base-load power, and their efficiency is increasing.

• 56 countries operate a total of 284 research reactors.

The vast majority of these commercial nuclear power reactors will be reaching their end of life in the next 2 decades and will require

either refurbishment or replacement.

7

Reactors Globally

441Total

4Japan, France, RussiaFast Neutron Reactor (FBR)

12RussiaLight Water Graphite Reactor (RBMK)

40Canada, China, RomaniaHeavy Water Reactor (CANDU)

23United KingdomGas-cooled Reactor (Magnox & AGR)

94United States, Japan, SwedenBoiling Water Reactor (BWR)

268United States, France, Japan, Russia

Pressurized Water Reactor (PWR)

NumberMain CountriesType

8

New Reactors Globally

6China, India, RomaniaHeavy Water Reactor (CANDU/PHWR)

2ChinaBoiling Water Reactor (BWR)

21China, India, Russia, Japan, Finland, Pakistan

Pressurized Water Reactor (PWR)

NumberMain CountriesType

Approximately 30 power reactors are being constructed in 11 countries:

9

7%

43%

56%

3%

44%

15%

2%

31%

0%

33%

79%

31%

37%

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29%

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45%

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5% 4% 3%9%

16%

56%

42%

6%

20%

45%

32%

0%

49%

20%19%

0%0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

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% o

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uppl

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Source: WNA

10

0

10

20

30

40

50

60

70

80

90

100

110

120

130

Arge

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men

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Can

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# of

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Operating Reactors Reactors under construction/planned/proposed

Source: WNA

11

Performance of nuclear plants worldwide

78.4 78.483.5

91.1

79.3

67.473.8 71.6

87.3

77.3 77.8

0

10

20

30

40

50

60

70

80

90

100

W orld W ide CANADA CHINA FINLAND FRANCE INDIA JAPAN RUSSIANFEDERATION

SW ITZERLAND UNITED KINGDOM UNITED STATES OFAMERICA

Lifetime Unit Capability Factor (until 2005)

12

Opportunities

USAUSA"A secure energy future for America must include more nuclear power." President George W. Bush

CanadaCanada"Nuclear power provides reliable baseload power and has historically been the backbone of Ontario’s energy system." Energy Minister Dwight Duncan

13

OpportunitiesFinlandFinlandOlkiluotoOlkiluoto--33

RussiaRussia10 GW of new 10 GW of new nuclear by 2020nuclear by 2020

ChinaChina30 new reactors 30 new reactors by 2020by 2020

FranceFranceNational Debate National Debate on new buildon new build

UKUK““Back on the Back on the agenda with a agenda with a vengeancevengeance””PM Tony BlairPM Tony Blair

New Entrants

VenezuelaConsidering nuclearVenezuelaConsidering nuclear

VietnamAnnounced intention to build

VietnamAnnounced intention to build

IndonesiaConsidering nuclear

IndonesiaConsidering nuclear

North KoreaProliferation concernsNorth KoreaProliferation concernsIran

Proliferation concernsIranProliferation concerns

TurkeyAs many as five plantsTurkeyAs many as five plants

Nigeria Diversify Energy Mix With Nuclear

Nigeria Diversify Energy Mix With Nuclear

Slovenia

SloveniaExploring New BuildSloveniaExploring New Build

15

Nuclear’s Market Share in Canada Today

Nuclear15%

Gas3%

Renewable1%

Coal22%

Hydro59%

Source: Canadian Nuclear Association

New Brunsw ick

5%

Ontario90%

Quebec5%

16

The need to plan ahead

0

1000

2000

3000

4000

5000

6000

7000

8000

Jan-

01

Jan-

02

Jan-

03

Jan-

04

Jan-

05

Jan-

06

Jan-

07

Jan-

08

Jan-

09

Jan-

10

Jan-

11

Jan-

12

Jan-

13

Jan-

14

Jan-

15

Jan-

16

Jan-

17

Jan-

18

Jan-

19

Jan-

20

Jan-

21

Jan-

22

Jan-

23

Jan-

24

Jan-

25

Cap

acity

(MW

)

Operating Capacity Units 1,2 and 3 Capacity when Refurbished

New Build or Bruce B refurbishment

The output profile of the Bruce site is the same as many commercial nuclear facilities throughout the world

17

Ontario’s Energy Supply Mix - 2005

Natural Gas7%

Coal19%

Nuclear51%

Hydro/Renewables23%

18

Ontario’s Supply Mix – Directive to OPA

Natural Gas/Co-gen,

9,400

Gasification, 250

Conservation, 6,300

Nuclear, 14,000

Renewables, 15,700

• Long-term coal replacement through conservation and renewables.• Increase in gas to meet growing peak demand.• Develop hydroelectric generation to meet growing demand.• Replace nuclear with nuclear.

Securing our nuclear future

Presented to:University of Western Ontario

Presented by:Duncan Hawthorne

President & Chief Executive Officer

September 28, 2006

Additional Slides

Presented to:University of Western Ontario

Presented by:Duncan Hawthorne

President & Chief Executive Officer

September 28, 2006

21

About Bruce Power• Canada’s only private nuclear

generator• Formed in May of 2001• More than 4,700 MW of capacity

from six operating units• Another 1,500 MW to be added with

restart of Units 1 and 2• Partnership between TransCanada,

OMERS, Cemeco, PWU and Society

22

About Bruce Power

Largest nuclear site in North America• Spread over 2,300 acres and

has 56 kms of roadway• Includes supporting

infrastructure, training centre, Visitors’ Centre

• About 3,600 full time employees

23

Bruce A Restart: Project Overview

• Fuel channel replacement• Steam generator replacement• Feeder pipe segment

replacement• Turbine-generator

refurbishment• Balance of plant work

24

Units 1 and 2 restart: making progress• Approved Environmental Assessment• Preparations nearing completion

• Construction Island complete• Reactor mock-up turned over to AECL• Bulkhead progress • Steam drum inspections underway • Crane assembly underway• Turbine and electrical inspections• Balance of Plant contracts established

• Approximately 1,000 contract staff hired to date – 800 on site• New simulator building underway • 134 operations staff hired to date

25

Nuclear- Part of the Solution• Nuclear power provides clean, safe, economical electricity.• Use of nuclear power in Canada has avoided:

• >1 billion tonnes of carbon dioxide (CO2) emissions• 11 million tonnes of sulphur dioxide• 2.5 million tonnes of nitrogen oxides

• Without nuclear plants in Canada, annual CO2 emissions would increase by 15-20%.

• Nuclear Power accounts for 50% of Ontario’s supply and 15% nationally.• Nuclear Power is safe and operates in a heavily regulated environment

both nationally and internationally.• Nuclear power is financially competitive with all sources of new

generation currently under consideration across Canada.

26

Nuclear: Securing Ontario’s Economic Future• In 2005, produced over 50% of Ontario’s power.• Source of affordable, reliable baseload electricity.

• Essential for Ontario’s manufacturing sector.• Stabilizing impact on Ontario market prices.• Refurbishment and new build could attract private sector

investment to Ontario and mitigate risk.• Industry in Canada accounts for 21,000 direct jobs and

10,000 indirect jobs.• Given the activity and attrition expected in the industry over the

next two decades, there will be a significant demand for thousands of young skilled Ontario workers.

Ontario accounts for approximately 40.0% of Canada's GDP.

27

Strong Public Support - Ontario

61

46

70

53

73

57

0

10

20

30

40

50

60

70

80

May, 2005 August, 2005 January, 2006

Support for Refurbishment

Support for New Build

Since May 2005 support for nuclear in terms of new build and refurbishment is up by over 10%.

Source: Canadian Nuclear Association

28

Planning for the future

• Bruce Power is evaluating new build and refurbishment options for the site.• Process has been underway since January, 2004• Next step in the process was to file an initial site

license application with the CNSC and prepare to conduct an EA.

• Long-term planning is considering the possibility of 4,000 MW of new build.