Three Mile Island

Generating Station

nn TMI Presentation TMI Presentation nn TMI TourTMI Tour

–– Security BuildingSecurity Building–– Turbine Building Turbine Building –– Control RoomControl Room

nn Lunch with ConstituentsLunch with Constituents

Agenda Agenda

nn 5.1 million retail electric customers in 5.1 million retail electric customers in Pennsylvania and IllinoisPennsylvania and Illinois

nn 43,000 MW generation supply portfolio43,000 MW generation supply portfolionn 460,000 natural gas customers in Philadelphia 460,000 natural gas customers in Philadelphia

areaareann 17,500 employees17,500 employees

Exelon CorporationExelon Corporation

nn 10 sites with 17 total units10 sites with 17 total units

nn 17,800 MW under operating control, about 18% 17,800 MW under operating control, about 18% of U.S. nuclear capacityof U.S. nuclear capacity

nn 2006 fleet capacity factor 2006 fleet capacity factor ––93.9%93.9%

Exelon NuclearExelon Nuclear

Three Mile IslandThree Mile IslandGenerating StationGenerating Station

nn TMITMI--1 Owned by AmerGen, wholly owned 1 Owned by AmerGen, wholly owned subsidiary of Exelonsubsidiary of Exelon

nn AmerGen purchased plant in Dec. 1999AmerGen purchased plant in Dec. 1999nn TMITMI--2 owned by First Energy2 owned by First Energynn TMITMI--1 generates 850 net megawatts of electricity 1 generates 850 net megawatts of electricity ––

enough for 800,000 homesenough for 800,000 homesnn TMITMI--1 has set three separate records for continuous 1 has set three separate records for continuous

days of operation days of operation –– most recently 689 days in 2005most recently 689 days in 2005nn Safety is the overSafety is the over--riding priority at Exelon and riding priority at Exelon and

TMITMI--1.1.

Committed to LongCommitted to Long--term, Safe Operation of TMIterm, Safe Operation of TMI

nn AmerGen has invested more than $100 million into TMI AmerGen has invested more than $100 million into TMI since we purchased the plant in 1999. since we purchased the plant in 1999.

nn Expect to seek a 20 year license extension for TMIExpect to seek a 20 year license extension for TMI--1. 1. –– Plan to submit application to NRC in Jan. 2008. Plan to submit application to NRC in Jan. 2008. –– We expect to make a number of further investments in the We expect to make a number of further investments in the

plant over the next several years totaling more than $300 plant over the next several years totaling more than $300 million.million.

nn Active Community Outreach ProgramActive Community Outreach Program

nn Safety is the overriding priority at Exelon and Safety is the overriding priority at Exelon and TMITMI--11

Three Mile Island Contributes to CommunityThree Mile Island Contributes to Community

nn TMI TMI employesemployes 532 full532 full--time employees (not counting time employees (not counting security). 208 live in Dauphin County. 187 live in security). 208 live in Dauphin County. 187 live in Lancaster CountyLancaster County

nn In 2006, In 2006, AmerGen AmerGen and TMI employees contributed and TMI employees contributed $205,000 to the local community through the United $205,000 to the local community through the United Way and contributions to more than 30 other Way and contributions to more than 30 other charities.charities.

Security Security

nn Nuclear power plants were the most secure Nuclear power plants were the most secure industrial facilities in the United States even industrial facilities in the United States even before Sept. 11, 2001, and they continue to before Sept. 11, 2001, and they continue to make Security enhancements to defend make Security enhancements to defend against potential new global threatsagainst potential new global threats

SecuritySecuritynn TMI has spent more than TMI has spent more than $17 Million$17 Million

on security upgrades since 9/11/01 on security upgrades since 9/11/01 including about $5 million in 2006 including about $5 million in 2006

nn Added:Added:–– Security OfficersSecurity Officers–– BarriersBarriers–– Vehicle CheckpointsVehicle Checkpoints–– Surveillance equipmentSurveillance equipment–– Bullet Resistance EnclosuresBullet Resistance Enclosures–– Razor Wire FencesRazor Wire Fences

License RenewalLicense Renewal

nn On April 29, 2005 we announced our intention to seek On April 29, 2005 we announced our intention to seek a 20a 20--year license renewal for TMI.year license renewal for TMI.

nn We have a dedicated team working to complete We have a dedicated team working to complete license renewal application. Takes two years to license renewal application. Takes two years to complete application. 13 people working for two complete application. 13 people working for two years. years.

nn Typically takes NRC 22 to 30 months from submittal Typically takes NRC 22 to 30 months from submittal to issue a new license.to issue a new license.

License Renewal DatesLicense Renewal Dates

nn TMI’s current license expires TMI’s current license expires ---- April 2014April 2014

nn Planned submittal to NRC Planned submittal to NRC –– January 2008January 2008

nn Expect new license Expect new license –– End of 2009End of 2009

Industry StatusIndustry Statusas of September 2006as of September 2006

Under NRC Review

10%

NRC Approved41%

Not Scheduled13%

Scheduled36%

103 Nuclear Reactors in U.S.

Generate 20% of U.S Electricity.

License RenewalLicense RenewalApplicationApplication

Two basic parts of the Two basic parts of the License Renewal Application (LRA)License Renewal Application (LRA)

•• Safety ApplicationSafety Application•• Environmental ReportEnvironmental Report

Each is prepared in accordance with industry Each is prepared in accordance with industry and NRC guidelines.and NRC guidelines.

Safety ApplicationSafety Application

Major ComponentsMajor Components•• ScopingScoping•• ScreeningScreening•• Aging Management Program ReviewsAging Management Program Reviews•• Final Safety Analysis Report (FSAR) Final Safety Analysis Report (FSAR)

SupplementSupplement

Environmental ReportEnvironmental Report

Major ComponentsMajor Components•• Site and environmental interfaces and consequencesSite and environmental interfaces and consequences•• New and significant informationNew and significant information•• License Renewal impacts and mitigationLicense Renewal impacts and mitigation•• Comparison of alternatives and proposed actionComparison of alternatives and proposed action•• Areas reviewed: aquatic life, air quality, surface and Areas reviewed: aquatic life, air quality, surface and

ground water, socioground water, socio--economics (taxes, employment, economics (taxes, employment, transportation, schools), historical and archeological, transportation, schools), historical and archeological, threatened and endangered species, radiological effects threatened and endangered species, radiological effects (onsite and offsite)(onsite and offsite)

License Renewal Application Submitted

Acceptance Review (30 days)

Licensed Renewal Application

Docketed

Safety ReviewEnvironmental Review

License Renewal Application Process

Overview

vv Each EOTSG Each EOTSG weighs weighs approximately approximately 500 tons and 500 tons and stands stands approximately approximately 70 feet high 70 feet high with a 12 ½ foot with a 12 ½ foot outside diameteroutside diameter

vManufacturing duration from January 2005 though April 2009

vMajor subcomponents produced by Japan Steel Works (Japan)

vTubing manufactured by Sumitomo Tube Metal Industries (Japan)

vManufacturing, assembly, testing and transport to TMI site is performed by AREVA (Chalon, France)

Investing in the FutureInvesting in the FutureTMI Steam GeneratorsTMI Steam Generators

Image Courtesy of AREVA

Manufacturing Activities in Chalon France.

Tube Sheet ForgingCladding Primary Side of Tube Sheet

Installing Lower Bundle WrapperFitUp Tube Sheet to Lower Shell

OTSG Transportation

Chalon France

Three Mile Island

•River Barge Transport from Chalon to S/Mer Harbor, France

•Ocean Transport from S/Mer Harbor, France to US Harbor (Philadelphia or Baltimore)

•River Barge Transport from US Harbor to Port Deposit, Maryland

•Land Transport from Port Deposit, Maryland to TMI Site

•Arrives at TMI Site in June, 2009

S/Mer Harbor

US Harbor / Port Deposit

Land Transport

vv Installation to occur in the Installation to occur in the Fall of 2009, with an Fall of 2009, with an approximate 70 day approximate 70 day durationduration

vv Installation has been Installation has been contracted to The Steam contracted to The Steam Generating Team, LLC Generating Team, LLC who has successfully who has successfully completed 14 similar steam completed 14 similar steam generator replacement generator replacement projects.projects.

vv An opening will be created An opening will be created in the containment in the containment building wall for removal building wall for removal of old and installation of of old and installation of new OTSGs.new OTSGs.

OTSGOTSG Installation Installation Fall, 2009Fall, 2009

Rigging and Handling OTSGs Through Containment Opening

What is the Exelon environmental strategy?What is the Exelon environmental strategy?

How Exelon creates competitive advantage

How Exelon reduces costs and creates financial value

Our obligation

Compliance

COMPLIANCE

RESOURCESTEWARDSHIP

RISKMANAGEMENT

BeyondCompliance

LEADERSHIP

Environmental InitiativesEnvironmental Initiatives

nn Move Beyond ComplianceMove Beyond Compliance–– Set compliance goalsSet compliance goals–– Established an EMS to make Established an EMS to make

sites ISO 14001 compliantsites ISO 14001 compliant–– Internal Compliance Internal Compliance

ProgramProgram»» Periodic auditsPeriodic audits»» Quarterly Environmental Quarterly Environmental

report outs to Senior report outs to Senior ManagementManagement

COMPLIANCE

RESOURCE STEWARDSHIP

RISK MANAGEMENT

LEADERSHIP

QuestionsQuestions

TMI Plant SchematicTMI Plant Schematic

Power Plant Cycle

Comparative Size of TargetsComparative Size of Targets

11

Comparative Size of Targets

Comparative Size of Targets

WTC 208’ wide1,353’ tall

Pentagon1,489’ wide (921’ per side)71’ tall

Spent Fuel Pool 80’ wide40’ tall

Containment Building130’ wide

160’ tall

Fuel Storage containers

10’ wide20’ tall

Typical OTSG Storage Facility