NuScale Nonproprietary © 2016 NuScale Power, LLC

NuScale Power Update Blazing the Trail to the Future of

Nuclear Energy Partners in Science and Technology

Up ‘n Atom Breakfast Mike McGough, NuScale Power

Idaho Falls, ID May 3rd, 2016

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Blazing the Trail to Commercialization

Brief NuScale History

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One-third scale Test Facility

NuScale Control Room Simulator

NuScale Engineering Offices Corvallis, Oregon

NuScale first of current US SMRs to begin design of commercial NPP.

NuScale technology in development and design since 2000 (DOE) MASLWR program, with INL, lessons from AP600/1000 ¼-scale testing facility built and operational

Electrically-heated 1/3-scale Integral test facility first operational in 2003

Began NRC design certification (DC) pre-application project in April 2008, >20K Mhrs

Acquired by Fluor in October 2011 >600 people currently on project, ~$410MM

spent project life-to-date ($12MM/mo) >250 patents pending/granted, 19 countries Portland, Corvallis, Rockville, Charlotte,

Richland, London US DOE SMR Awardee, 12/12/13, $217MM

A NuScale Power Module (NPM) includes the reactor vessel, steam generators, pressurizer and containment in an integral package that eliminates reactor coolant pumps and large bore piping (no LB-LOCA)

Each NPM is 50 MWe and factory built for easy transport and installation

Each NPM has its own skid-mounted steam turbine-generator and condenser

What is a NuScale Power Module?

Each NPM is installed below-grade in a seismically robust, steel-lined, concrete pool

NPMs can be incrementally added to match load growth - up to 12 NPMs for 600 MWe gross (~570 net) total output

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*Source: NRC

Size Comparison

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Coolant Flow Driven By Physics

Convection – energy from the nuclear reaction heats the primary reactor coolant causing it to rise by convection and natural buoyancy through the riser, much like a chimney effect

Conduction – heat is transferred through the walls of the tubes in the steam generator, heating the water (secondary coolant) inside them to turn it to steam. Primary water cools.

Gravity – colder (denser) primary coolant “falls” to bottom of reactor pressure vessel, cycle continues

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NuScale Fuel—(NuFuel HTP2 ™)

• Standard 17 X 17 PWR Fuel Assembly

• Half height • 37 FA’s/core • Enriched ~3.7% • ~ 4% MTU of GW-size

plant core • RFO 24-month cycle • ~1/3 core replaced • MOX capable • Areva design and Fab—

NuAB guidance

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Site Overview

annex building

warehouse

cooling towers A

cooling towers B

reactor building

administration building

radwaste building

switchyard

turbine building B

ISFSI (dry cask storage)

turbine building A

parking

control building

protected area fence

34.5 acres (~14 hectares) within the protected area fence

SAFETY

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Systems and Components Needed to Protect the Core: Reactor Pressure Vessel Containment Vessel Reactor Coolant System Decay Heat Removal System Emergency Core Cooling System Control Rod Drive System Containment Isolation System Ultimate Heat Sink Residual Heat Removal System Safety Injection System Refueling Water Storage Tank Condensate Storage Tank

Auxiliary Feedwater System Emergency Service Water System Hydrogen Recombiner or Ignition

System Containment Spray System Reactor Coolant Pumps Safety Related Electrical

Distribution Systems Alternative Off-site Power Emergency Diesel Generators Safety Related 1E Battery System Anticipated Transient without

Scram (ATWS) System

NuScale Safety Systems

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Core Damage Frequency Significantly Reduced Reduced

Source: NRC White Paper, D. Dube; basis for discussion at 2/18/09 public meeting on implementation of risk matrices for new nuclear reactors

More Barriers Between Fuel & Environment Conventional Designs 1. Fuel Pellet and Cladding 2. Reactor Vessel 3. Containment

NuScale’s Additional Barriers 4. Water in Reactor Pool 5. Stainless Steel Lined Concrete Reactor Pool 6. Biological Shield Covers Each Reactor 7. Reactor Building

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Ground level

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Smaller Emergency Planning Zone (EPZ) Due to Safer Design

(depending on site characteristics)

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Innovative Advancements to Reactor Safety Nuclear fuel cooled indefinitely without AC or DC power*

WATER COOLING BOILING AIR COOLING

• 30 days is a minimum based on very conservative estimates.

*Alternate 1E power system design eliminates the need for 1E qualified batteries to perform ESFAS protective functions – Patent Pending

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How do we know it works?

NuScale Testing Programs

NuScale Reactor Qualification Test Plan

NuScale Reactor Qualification Test Plan outlines Design Certification and First Of A Kind Engineering (FOAKE) projects for reactor safety code development, validation, reactor design and technology maturation to reduce First Of A Kind (FOAK) design risk.

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Testing Progress

Test/Demonstration Program Test Facility Status

Critical Heat Flux Test – Initial Fuel Design Stern Lab, Canada Completed

Steam Generator Tube Inspection Feasibility Study Corvallis, Oregon Completed

SIET TF1; 3-Coil, Full-Length, Electrically Heated Steam Generator SIET, Piacenza, Italy Completed

SIET TF2; 252-Coils, full length, Prototypic Fluid-to-Fluid heat transfer SIET, Piacenza, Italy Completed

Upper Module Mock-up OIW, Vancouver, WA Completed

Fuel Mechanical and Hydraulic Richland, WA Completed

NIST-1 Facility; Integral System OSU, Corvallis, OR Critical Path Testing Complete

CRA and Drive Shaft Alignment and Drop Erlangen, Germany Under Construction

Steam Generator Flow Induced Vibration Erlangen, Germany Under Construction

CRA/CRAGT Flow Induced Vibration Erlangen, Germany Under Construction

Critical Heat Flux– NuScale Fuel Design w/AREVA HMP/HTP grids Karlstein, Germany Under Construction

Steam Generator Orifice Hydraulic Testing TBD (US Domestic) Bid Down Selection

Percentage of Required DCA Testing Completed: > 60%

Total Testing Expenditures to Date: $24 Million

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Full Length SG Test (TF-2) Construction/Hardware

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NIST-1 Testing Progress

All tests required to validate NRELAP5 for LOCA applications are complete • HP-01 (volume and elevation) • HP-02 (high pressure condensation) • HP-03 (DHRX characterization) • HP-04 (cooling pool characterization) • HP-05 (powered natural circulation flow) • HP-06 (CVCS discharge line break) • HP-07 (pressurizer spray line break) • HP-09 (ECCS RVV spurious opening) NRELAP5 test assessment is complete NRC inspection of NIST-1 is complete Status: • Facility completed shutdown, reconfiguration

and maintenance • Resumed testing week of Jan 4

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Preliminary NRELAP 5 Predictions of NIST-1

CVCS piping rupture (LOCA): • Excellent predictions of:

– reactor and containment vessel water levels

– reactor and containment vessel pressures through ECCS valve opening

• Significant margin to core uncover • NRELAP5 correctly captures LOCA physics

ECCS trips

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SG Flow Induced Vibration (FIV) Test Hardware

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Tube Supports Vessel Head Tube Bending

Tube Bending Rig Machining of Tube Sheet

CRA and Drive Shaft Drop Alignment Test

Objectives: • Demonstrate Control Rod Assembly (CRA)

insertion with drive shaft support, CRA Guide Tube (CRAGT) and guide card misalignment and fuel assembly distortion.

• Measure fuel insertion rate profile under different operational conditions.

Status of Phase 1 Cold Test: • Test hardware delivered and being assembled • Start of testing = April 2016

CRA Drive Shaft

CRAGT

Upper CRA Drive Shaft Support

Fuel Assemblies Dashpot region

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CRA and Drive Shaft Drop Alignment Test Hardware

Support Beam Fuel Assembly Housing Guide Tube/Card Housing

Counterweight Guide Assembly

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NIST-1 Testing Progress

Installed new laser PIV system to measure local cooling pool liquid velocities next to containment shell

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Licensing Plan and Status

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RIS 2015-07 Response NRC Regulatory Information Summary (RIS) is for

budgeting, staffing and planning purposes Joint response by NuScale and UAMPS submitted on

June 17, 2015 DCA submittal no later than 12/31/2016 UAMPS COLA submittal by 1Q-2018 COLA to reference DCA for up to 12 modules COL site in Idaho including INL UAMPS teaming agreement with ENW identified

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Topical Report Submittals Title Submittal Date NRC Review/Development Status

1 Quality Assurance Program Description May 2015 Accepted for Review: 3 RAIs issued

2 Risk Significant Determination July 2015 Accepted for Review: 3 RAIs issued

3 Electrical System October 2015 Accepted for Review

4 Accident Source Term December 2015 Under NRC Acceptance Review

5 Emergency Planning Zone December 2015 Under NRC Acceptance Review

6 Highly Integrated Protection System December 2015 Accepted for Review

7 Containment Integrated Leak Rate Test March 2016 Under Development

8 AREVA Fuel and CR Topical Report Applicability to NuScale Design

March 2016 Under Development

9 Nuclear Analysis Codes and Methods June 2016 Under Development

10 Steady State Core Thermal-Hydraulics - Primary System Stability

July 2016 Under Development

11 LOCA Evaluation Model (NRELAP5 Code Description) July 2016 Under Development

12 VIPRE Subchannel Methodology September 2016 Under Development

13 Non LOCA Methodology September 2016 Under Development

14 Critical Heat Flux Correlation September 2016 Under Development

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Commercialization Plan and Status

NuScale Advisory Board (NuAB)

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The Genesis of Program WIN June 2010: Idaho Governor Butch Otter became Chair of

Western Governors Association (WGA) and sponsored Western nuclear energy policy

June 2011: “The Future of Nuclear Energy: Shaping a Western Policy” published: discusses SMR’s explicitly

Feb 2012: Otter creates Idaho Leadership in Nuclear Energy (LINE) Commission

June 2012: Utah Governor Gary Herbert becomes WGA Chair and sponsors development of a 10-year energy plan-patterned after Utah 10-year plan

June 2013: WGA 10-yr plan unveiled with stated goal to “Find ways to accelerate the introduction of SMRs into the marketplace.”

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First Deployment: UAMPS CFPP • Utah Associated Municipal

Power Systems (UAMPS) Carbon Free Power Project (CFPP) will be first deployment, sited somewhere in Idaho.

• Site selection underway • DOE INL site use agreement • NRC COLA commitment • UAMPS consists of 45

members serving load in 8 western states.

• 33 UAMPS members are subscribers in CFPP

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NMIN – New Mexico Initiative for Nuclear

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New Mexico Initiative for Nuclear (NMIN)

Governor Martinez and Secretary David Martin (EMNRD) NM Energy Plan issued Sept 2015

Includes SMR “pre-feasibility” study DOE Agreed to provide funding NuScale-led task force assembled, KO 12/17/15 UAMPS El Paso Electric PNM Tri State G&T Los Alamos County Utilities Sandia National Lab City of Carlsbad Navajo Tribal Utilities Association Urenco

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Other Potential WIN Projects WIN-WA

ENW ownership, COD target ~2029 Some state and local forces want first WIN project Tri-Dec Siting, Wash St legislative committee visited November 2014. Heavy desire of Wash State for Supply chain Supported Wash study meeting 10/29, Wash Energy Summit 11/2

WIN-UT Replacement of retiring coal plants Feeds to CA COD target ~2030 UAMPS CFPP MUST succeed for this to be possible

WIN-AZ APS/SRP ownership, Navajo coal retirements COD could be as early as 2028/9 SRP has restarted siting studies, staffing up study effort 1Q16, funds budgeted

WIN-WY Coal conversion-driven, Hybrid Energy studies, COD ~ 2030 Replacement for Jim Bridger station? WY desire to enhance energy future for state as coal falls out of favor WY NuDep Studies, jointly with INL

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State senator: Washington small reactor report promising

The development of small modular reactors “has the potential for significant improvements in nuclear plant siting associated with cost, safety, permitting schedule, generation flexibility and site requirements.”

Brown is concerned that other states, including Idaho and Oregon, already are making a play for small modular reactor technology, making them direct regional competitors with Washington for possible new jobs.

On January 13th, 2016, Senator Brown introduced Senate Bill 6224 to streamline the application process.

Sen. Sharon Brown, R-Kennewick, visited the NuScale small modular nuclear reactor simulator.

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Project TIN (Tennessee Initiative) • TVA-led ownership consortium • COD Target ~2028/9 • 3-year effort to review and incorporate

NuScale design into long-term planning processes

• Active participation in NuAB, and working groups

• Active in NuScale NRC drop-ins and formal meetings

• ESPA submittal 5/12/16, COLA start late 2016

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Carolina Initiative for New Nuclear (CarolNN) Fluor and NuScale have strong Carolina roots

Fluor Power—Charlotte, NC Fluor Power—Greenville, SC NuScale—Charlotte

NC and SC strong Nuclear Heritage—14 Operating Plants, 2 under construction, 2 proposed McGuire 1&2 Catawba 1 & 2 Oconee 1,2 & 3 Harris H.B. Robinson 2 Brunswick 1 & 2 V.C. Summer 1, 2 & 3 W.S. Lee 1 & 2?

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Other States April 1, 2016, Wisconsin Governor Scott

Walker signed into law the removal of moratorium on new nuclear construction

Kentucky Considering similar new law,

State Senate passed bill lifting moratorium

Overall UAMPS CFPP Project Schedule

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2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Project Development (see detail)

Operations

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Licensing

Construction and Fabrication

Design & Engineering

Site Characterization

Start COLA

Submit COLA

NRC Issue COL

Submit DCA

NRC Issue DC

Draft DSRS

Final DSRS

Module 12 COD

Start Operational Readiness Program

Complete Operational Readiness Program

Module 1 COD

Operator Training Program Accreditation

Start Finalized Plant Design

Complete Final Plant Design

Reference Plant Design

Install Module 12

Install Module 1

Start Module Fabrication

Order Modules

Site Selection

Site Use Agreements

Define Team Members and structure

Develop Business Model

Onboard Partners

Site Prep & Mobilization

1st Fuel load

1st Safety Concrete Pour

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NPM Fabricator

NuScale Diverse Energy Platform (NuDEP) Initiative

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• SAFE • SMALL • SCALABLE • FLEXIBLE • RELIABLE

NuScale/UAMPS/ENW Study on Integration with Wind Farm

• NuScale includes unique capabilities for following electric load requirements as they vary with customer demand and rapid output variations from renewables: NuFollow™

• There are three means to change power output from a NuScale facility: – Dispatchable modules – taking one or more reactors offline for

extended periods of low grid demand or sustained wind output – Power Maneuverability – adjusting

reactor power for one or more modules (intermediate time frames)

– Turbine Bypass – bypassing turbine steam to the condenser (short time frames

• Explored integration with Horse Butte wind farm in Idaho

• Partnered with Utah Associated Municipal Power Systems and Energy Northwest

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Horse Butte Wind Farm

Commissioned in 2012 32 Vestas V100 turbines 1.8 MWe capacity per turbine 57.6 MWe total capacity 17,600 acres

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24 hour output (Nov. 11, 2014)

Target Output for NuScale Module

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Power (MWe)

Typical electrical demand

Horse Butte Output

NuScale Output (target)

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NuScale Paper Released 4/20/16 • Patterned after memory storage RAIR (Redundant Array of

Independent Discs)

• NuScale Redundant Array of Integrated Reactors (RAID)

• Produces Reliable power at 99.99% for 100MW, based on 12-module NuScale plant

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NuEx Tours – NIST, Control Room Simulator and UMM

Mike McGough Chief Commercial Officer MMcGough@nuscalepower.com www.nuscalepower.com

The Element of Nu

Mike McGough Chief Commercial Officer MMcGough@nuscalepower.com www.nuscalepower.com

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