SCEnergyUsersCommitteeAnnualMeeting May2,2014 KennyJackson - - PowerPoint PPT Presentation

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sc energy users committee annual meeting may 2 2014
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SCEnergyUsersCommitteeAnnualMeeting May2,2014 KennyJackson - - PowerPoint PPT Presentation

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SCE&G | Power for Industry SCEnergyUsersCommitteeAnnualMeeting May2,2014 KennyJackson VicePresident,Rates&RegulatoryServices AlanTorres

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SCE&G | 2014 SCEUC Annual Meeting

SCE&G| Power for Industry

SCE&G | 2014 SCEUC Annual Meeting

SCEnergyUsersCommitteeAnnualMeeting May2,2014

KennyJackson VicePresident,Rates&RegulatoryServices AlanTorres GeneralManager,NuclearPlantConstruction,SCE&G

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SLIDE 2

SCE&G | 2014 SCEUC Annual Meeting 2

| Safe Harbor Statement/Regulation G Information

Statementsincludedinthispresentationwhicharenotstatementsofhistoricalfactareintendedtobe,andareherebyidentifiedas,“forwardlooking statements”forpurposesofSection 27AoftheSecuritiesActof1933,asamended,andSection 21EoftheSecuritiesExchangeActof1934,asamended. Forwardlookingstatementsinclude,butarenotlimitedto,statementsconcerningkeyearningsdrivers,customergrowth,environmentalregulationsand expenditures,leverageratio,projectionsforpensionfundcontributions,financingactivities,accesstosourcesofcapital, impactsoftheadoptionofnew accountingrulesandestimatedconstructionandotherexpenditures.Insomecases,forwardlookingstatementscanbeidentifiedbyterminologysuchas“may,” “will,”“could,”“should,”“expects,”“forecasts,”“plans,”“anticipates,”“believes,”“estimates,”“projects,”“predicts,”“potential”or“continue”orthenegativeof thesetermsorothersimilarterminology.Readersarecautionedthatanysuchforwardlookingstatementsarenotguaranteesoffutureperformanceandinvolve anumberofrisksanduncertainties,andthatactualresultscoulddiffermateriallyfromthoseindicatedbysuchforwardlookingstatements.Importantfactors thatcouldcauseactualresultstodiffermateriallyfromthoseindicatedbysuchforwardlookingstatementsinclude,butarenotlimitedto,thefollowing:(1)the informationisofapreliminarynatureandmaybesubjecttofurtherand/orcontinuingreviewandadjustment;(2)regulatory actions,particularlychangesinrate regulation,regulationsgoverningelectricgridreliabilityandpipelineintegrity,environmentalregulations,andactionsaffectingtheconstructionofnewnuclear units;(3)currentandfuturelitigation;(4)changesintheeconomy,especiallyinareasservedbysubsidiariesofSCANA;(5)theimpactofcompetitionfromother energysuppliers,includingcompetitionfromalternatefuelsinindustrialmarkets;(6)theimpactofconservationanddemand sidemanagementeffortsand/or technologicaladvancesoncustomerusage;(7)thelossofsalestodistributedgeneration,suchassolarphotovoltaicsystems;(8)growthopportunitiesfor SCANA’sregulatedanddiversifiedsubsidiaries;(9)theresultsofshort andlongtermfinancingefforts,includingprospectsforobtainingaccesstocapital marketsandothersourcesofliquidity;(10)theeffectsofweather,especiallyinareaswherethegenerationandtransmissionfacilitiesofSCANAandits subsidiaries(theCompany)arelocatedandinareasservedbySCANA'ssubsidiaries;(11)changesinSCANA’soritssubsidiaries’ accountingrulesandaccounting policies;(12)paymentandperformancebycounterpartiesandcustomersascontractedandwhendue;(13)theresultsofeffortstolicense,site,constructand financefacilitiesforelectricgenerationandtransmission;(14)maintainingcreditworthyjointownersforSCE&G’snewnucleargenerationproject;(15)theability

  • fsuppliers,bothdomesticandinternational,totimelyprovidethelabor,secureprocesses,components,parts,tools,equipmentandothersuppliesneeded,at

agreeduponprices,forourconstructionprogram,operationsandmaintenance;(16)theresultsofeffortstoensurethephysical andcybersecurityofkeyassets andprocesses;(17)theavailabilityoffuelssuchascoal,naturalgasandenricheduraniumusedtoproduceelectricity;the availabilityofpurchasedpowerand naturalgasfordistribution;thelevelandvolatilityoffuturemarketpricesforsuchfuelsandpurchasedpower;andtheabilitytorecoverthecostsforsuchfuels andpurchasedpower;(18)theavailabilityofskilledandexperiencedhumanresourcestoproperlymanage,operate,andgrowtheCompany’sbusinesses;(19) labordisputes;(20)performanceofSCANA’spensionplanassets;(21)changesintaxes;(22)inflationordeflation;(23)compliancewithregulations;(24)natural disastersandmanmademishapsthatdirectlyaffectouroperationsortheregulationsgoverningthem;and(25)theotherrisksanduncertaintiesdescribedfrom timetotimeintheperiodicreportsfiledbySCANAorSCE&GwiththeUnitedStatesSecuritiesandExchangeCommission.TheCompanydisclaimsanyobligation toupdateanyforwardlookingstatements. Duringthispresentation,certainnonGAAPmeasures(asdefinedbySECRegulationG)maybedisclosed. Areconciliationofthosemeasurestothemostdirectly comparableGAAPmeasuresisincludedonourwebsiteatwww.scana.comintheInvestorRelationssectionunderRegulationGInformation.

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SCE&G | 2014 SCEUC Annual Meeting

| Sales & Customer Growth

3

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SCE&G | 2014 SCEUC Annual Meeting 4

| Economic Trends

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SCE&G | 2014 SCEUC Annual Meeting 5

  • Filed annually with the South Carolina Public Service Commission
  • Retired Canadys 1 (90 MW coal fired unit), converted Urquhart 3 (95

MW coal fired unit) to natural gas during 2012, and retired two remaining coal fired units at Canadys late last year.

  • The capacity (250 MWs) of the remaining two coal-fired units, McMeekin

1 & 2, is required to maintain system reliability until the new nuclear capacity is available.

  • The Company is currently looking at ways to bridge, with dispatchable

resources, the gap between the MATS compliance date and the availability of the new nuclear capacity.

| 2014 Integrated Resource Plan

Source: 2014 SCE&G Integrated Resource Plan

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SLIDE 6

SCE&G | 2014 SCEUC Annual Meeting 6

| 2014 IRP Forecast of Loads & Resources

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SLIDE 7

SCE&G | 2014 SCEUC Annual Meeting

| Generation Mix by Dispatch & Capacity

7

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SCE&G | 2014 SCEUC Annual Meeting 8

By 2019, SCE&G will reduce its dependence on carbon-based fuel to less than 26% compared to about 65% for the rest of the industry!

Source: 2014 SCE&G IRP

| Clean Energy – SCE&G versus US Grid

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SLIDE 9

SCE&G | 2014 SCEUC Annual Meeting

Source: 2014 SCE&G IRP

| Clean Energy – SCE&G versus US Grid

9

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SCE&G | 2014 SCEUC Annual Meeting

| New Nuclear CAPEX & Rate Increases

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SCE&G | 2014 SCEUC Annual Meeting 11

| BLRA Filings & Rate Increases

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SCE&G | 2014 SCEUC Annual Meeting

| New Nuclear Projected Costs (in billions)

12

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SCE&G | 2014 SCEUC Annual Meeting

8

IncrementalNewNuclearAcquisition

  • Purchase funded by increased cash flows resulting from the depreciation

associated with the commercial operation of Units 2 and 3

  • No change under the Base Load Review Act mechanism
  • Incremental ownership added to rate base over three years

Timing Incremental Percentage CurrentCost Estimate Unit 2&3 Ownership MWs*

CommercialOperation DateofFirst New NuclearUnit

+1% $100million 56% +22MWs

1st Anniversaryof CommercialOperation Date

+2% $200 million 58% +44MWs

2nd Anniversaryof CommercialOperation Date

+2% $200 million 60% +44MWs Total +5% $500million 60% +110MWs

* One-half of MWs are not available until Commercial Operation Date of Unit 3 13

| Incremental New Nuclear Acquisition

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SCE&G | 2014 SCEUC Annual Meeting 14

| Anticipated 2014 Rate Activity

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SCE&G | 2014 SCEUC Annual Meeting 15

| Winter Storm PAX – February 12 & 13

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SCE&G | 2014 SCEUC Annual Meeting 16

| Dangerous Ice Accumulations

  • Up to 1.25" ice in Barnwell with widespread trees and power lines down.
  • Up to 1.20" ice in Aiken with widespread trees and power lines down.
  • Up to 1" ice in Bamberg, Manning, Orangeburg, St Matthews with widespread trees

and power lines down.

  • Icing reported as far south as the Charleston area.
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SCE&G | 2014 SCEUC Annual Meeting 17

| Winter Storm PAX – Measured Response

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SCE&G | 2014 SCEUC Annual Meeting 18

| Winter Storm PAX – Service Restoration

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SCE&G | 2014 SCEUC Annual Meeting 19

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Alan Torres

New Nuclear Deployment SCANA/South Carolina Electric & Gas

NUCLEAR | South Carolina’s Clean Energy Solution

New Nuclear Update

SCEUC Annual Meeting May 2, 2014

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2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2017/2018

Submit COL Application Receive Combined Operating & Construction License March 30, 2012 Commercial Operation Unit 2 - 2017 Unit 3 - 2018 Prepare COL Application Begin Fabrication and Site Preparation PSC/BLRA Approval Develop COL Application

2016

NRC Review & Hearing Site Preparation Plant Construction & Startup

| Project Timeline

SCE&G | 2014 SCEUC Annual Meeting 2

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| Global Supplier Base

SCE&G | 2014 SCEUC Annual Meeting 3

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  • Approximately 2400 construction workers now onsite
  • About 3,800 temporary jobs during peak construction
  • 600-800 fulltime jobs when plants are operational
  • AP1000 design covers 25 acres per unit
  • Unit 2 and 3 and support structures will cover 240 acres
  • Construction uses approximately 1000 acres

| Project Statistics

SCE&G | 2014 SCEUC Annual Meeting 4

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CV Assembly MAB Cooling Towers Contractor Support Personnel Unit 3 Unit 2 Storage HLD Turbine Building

| NND Site Aerial View

SCE&G | 2014 SCEUC Annual Meeting 5

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| Units 2 & 3 – Site Overview

SCE&G | 2014 SCEUC Annual Meeting 6

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  • Unit2wasFirstsafetyrelatednuclear

concreteplacedinover30years

  • 7,000yds3 ofcontinuouslyplacedconcrete
  • PlacementbeganonMarch9,2013andlasted

approximately52hours

  • Unit3nuclearconcretecompleteNovember

4,2013in43hours. | First Nuclear Concrete (FNC

SCE&G | 2014 SCEUC Annual Meeting 7

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SLIDE 27

8

| Unit 2 Nuclear Island Basemat Rebar Preassembly

SCE&G | 2014 SCEUC Annual Meeting 8

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  • Firstsafetyrelated

nuclearconcrete placedinover30 years

  • 7,000yds3 of

continuouslyplaced concrete

  • Placementbeganon

March9,2011and lastedapproximately 52hours

| Unit 2 First Nuclear Concrete (FNC)

SCE&G | 2014 SCEUC Annual Meeting 9

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| Unit 2 Nuclear Island Concrete Placement

SCE&G | 2014 SCEUC Annual Meeting 10

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SCE&G | 2014 SCEUC Annual Meeting 11

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  • Module CA-20 is the Auxiliary

Building and Fuel Handling area

  • On hook date is May 2014

| Unit 2 Module CA-20

SCE&G | 2014 SCEUC Annual Meeting 12

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13

| Unit 2 Containment Vessel

SCE&G | 2014 SCEUC Annual Meeting 13

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| Unit 2 Nuclear Island

SCE&G | 2014 SCEUC Annual Meeting 14

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| Unit 2 Inside Containment Vessel

SCE&G | 2014 SCEUC Annual Meeting 15

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| Unit 2 Main Condenser

SCE&G | 2014 SCEUC Annual Meeting 16

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WaterBoxes CH-80 Condenser A CH-81B Condenser B Condenser C CH-81A CH-82 CH-81C

| Turbine Building Layout

SCE&G | 2014 SCEUC Annual Meeting 17

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| Unit 3 Base Mat Pour

SCE&G | 2014 SCEUC Annual Meeting 18

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| Unit 3 Nuclear Island

SCE&G | 2014 SCEUC Annual Meeting 19

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| Port of Charleston to V.C. Summer

SCE&G | 2014 SCEUC Annual Meeting 20

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| Load Distribution System

SCE&G | 2014 SCEUC Annual Meeting 21

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Rail (2 days)

  • RV – Schnabel Railcar – 265 ft
  • RV Head – 32’ FD Railcar – 108 ft
  • Two 60’ Idelers Railcars – 120 ft
  • Schnabel Car Tooling – 89 ft
  • Caboose 50 ft

| Reactor Vessel Shipment

SCE&G | 2014 SCEUC Annual Meeting 22

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23 CMT – Unit 3 Upper Pedals ACC – Unit 2 – Tanks 1 & 2 CMT – Unit 2 Tanks 1 & 2 ACC – Unit 3 - Tank 2 – Shell to Lower Crown

| Mangiarotti Manufacturing Update

SCE&G | 2014 SCEUC Annual Meeting 23

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Low Pressure “B” Turbine – Prep for Blade Assembly Generator Rotor G t R t Low Pressure “A” Turbine L P “A” T bi

| Toshiba, Keihin - Japan

SCE&G | 2014 SCEUC Annual Meeting 24

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Unit 2 Diesel Generators Unit 2 Integrated Head Package Unit 2 Aux Transformers

| Components Arriving on Site

SCE&G | 2014 SCEUC Annual Meeting 25

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  • From Korea to the

Port of Charleston on April 30, 2013.

  • Taken to Lake Marion

by barge over the course of approx. 20 hours.

  • Hauled by a truck
  • ver several days to

complete its multi- thousand-mile, water- and-land journey to the construction site.

148 feet long, 19 feet tall, and 18 feet in

  • diameter. It weighs about 605,000 pounds.
  • Purifies water by removing dissolved gases from feedwater used to

generate steam. This process prevents corrosion, which helps reduce plant maintenance and operating cost.

| Unit 2 Deaerator

SCE&G | 2014 SCEUC Annual Meeting 26

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| Traveling Cross Country

SCE&G | 2014 SCEUC Annual Meeting 27

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| Traveling Through Towns

SCE&G | 2014 SCEUC Annual Meeting 28

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SLIDE 48

Questions?

SCE&G | 2014 SCEUC Annual Meeting 29