Moderator: Scott Carlberg

Panel:

Chris Fallon, Duke Energy

Jeff Merrifield, Shaw

Chris Mowry, B&W

Nuclear Energy and Growth Potential

Nuclear Stats• 104 reactors in the US• Produced 807 billion kWh in 2010• Capacity factor of 91% (Coal – 64% - 2009)

• More than 20% of total elec. output• After 30-years of no new-build, up to

6 possible new units by 2020• 2 now under construction by SCANA (SC)• 2 now under construction by Southern (GA)

Nuclear in the CarolinasCurrent Reactors

• NC –– 2 – Brunswick– 2 – McGuire– 1 – Shearon Harris

• SC –– 2 – Catawba– 1 – HB Robinson– 3 – Oconee– 1 – VC Summer

Construction

– 2 – Fairfield (SCE&G)

As Well As … – Savannah River Site– Multiple A/E & Vendor

Operations

Points of Discussion

• New build / finance

• Used fuel

• Workforce

• Economic development

Finance

• Loan guarantees

• Cost capture

• Partnerships

• Nuclear workers “aging out”• With potential 30% retirement rate in five years,

25,000 more workers may be required by 2015

• American universities annually graduate roughly 60,000 engineers for all industries

• “… the United States has had an issue for years of an oversupply of low- and semi-skilled workers and a shortage of high-tech

scientists and engineers.” Wells Fargo Econ. Group, 11/01/11

• “Employability Crisis”

Workforce

0%

5%

10%

15%

20%

25%

30%

18-22 23-27 28-32 33-37 38-42 43-47 48-52 53-57 58-62 63-67 67+

Age Range

Empl

oyee

s

2003

2005

2007

Source: 2007 NEI Pipeline Survey Preliminary Results, Contractors not included

2007 Total Employment ~ 55,900

2005 Total Employment ~ 57,900

2003 Total Employment ~ 58,400

Nuclear Industry Employment Distribution by Age

Economic Development

• Carolinas impact study

• Earned Income: $4.7 billion

• Payroll: $2.2 billion/year

• Taxes: ¾ billion

2011 Energy SummitInnovation and Entrepreneurship in the Energy Industry

Laurence Skinner

Hunton & Williams LLP

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Charlotte’s Broad-Based Energy Sector

• More than 250 businesses• More than 27,000 employees• More than 5,600 new jobs announced since 2007• Variety of subsectors:

– Air Handling and Environmental Controls– Energy Efficiency– Energy Engineering, Infrastructure, & Generation– Storage and Materials– Manufacturing / Industrial– Recycling & Waste– Transportation– Water & Wastewater

13

Widely Known Names

14

Lowest Prices Since 2001-2002

15

Natural Gas Pricing Ratio Change

16

Global Price Spread

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The Panel

• Ken Valentine – Piedmont Natural Gas• Johan Enslin – UNCC/EPIC• John Nurkin – SPX• Dave Dalton – General Microcircuits