American Nuclear Insurers Risk Management Workshop 2006 Update

1. AMERICAN NUCLEAR INSURERS Mashantucket, CT June 2006 “ RETS – REMP WORKSHOP 2006” Effluent Releases ANI - Update William Wendland, P.E. American Nuclear Insurers Glastonbury, Connecticut USA

2. “RETS – REMP 2006" AMERICAN NUCLEAR INSURERS Risk • Term is all inclusive, many components • Biological • Radiological • Financial • Corporate Liability • Others

3. “RETS – REMP 2006" AMERICAN NUCLEAR INSURERS Nuclear Liability Insurance Risk • $300 Million US Provided to Each US NPP Site • Protection Covers Operators & Suppliers Against Bodily Injury or Property Damage Caused by Nuclear Hazard • Losses Can Be Catastrophic or Non-Catastrophic • Claims Defense Costs Can Be Major Portion of Claim

4. “RETS – REMP 2006" AMERICAN NUCLEAR INSURERS Nuclear Liability Insurance Risk (Effluent Releases) • Increased Public Awareness of NPP Effluent Releases & Perception of Personal Risk • Public does not differentiate between Isotope of Cobalt and Tritium • 1 atom Co-60 ~ 1 atom of Tritium (perception) • NPP Releases Cause Harm ! (Perception)

5. “RETS – REMP 2006" AMERICAN NUCLEAR INSURERS Nuclear Liability Insurance Risk • Recent Global Risk Management Experience – Compliance with Applicable Jurisdictional Regulations does not always offer protection from future environmental liabilities • Facilities Can Mitigate Excessive Claims Defense Costs Through Evidence of Due Care and Proper Operation

6. “RETS – REMP 2006" AMERICAN NUCLEAR INSURERS How • Proactive Contemporary Risk Management Principals (not necessarily regulatory driven) • Risk Minimization • High Quality Decisions • Balanced Effluent Release Program

7. “RETS – REMP 2006" AMERICAN NUCLEAR INSURERS ANI Environmental Guidelines • Distributed March 1996 • 4 Principal Areas • Environmental Management • Effluent Release Management • Environmental Monitoring • Radioactive Materials Management

8. “RETS – REMP 2006" AMERICAN NUCLEAR INSURERS Environmental Management • Groundwater Monitoring (pp 24-25) • Experience • underground piping breaches • pond liner leaks • above ground tank & SFP leaks • On and Off-Site GW Contaminations

9. “RETS – REMP 2006" AMERICAN NUCLEAR INSURERS Environmental Monitoring - Experience • Many sites installed wells to monitor for leaks to groundwater at ANI request. • ANI Recommendations Underwriting Adjustments • Wells provided indication of piping, pond, tank or SFP integrity breaches

10. “RETS – REMP 2006" AMERICAN NUCLEAR INSURERS Recent Industry Experience • Recent Industry Experience • Challenging Public Confidence

11. “RETS – REMP 2006" AMERICAN NUCLEAR INSURERS Industry Initiative Objective • Improve management of situations involving inadvertent radiological releases to groundwater • Enhance trust and confidence on the part of local communities, States, the NRC and the public in the nuclear industry’s commitment to a high standard of public radiation safety and protection of the environment.

12. “RETS – REMP 2006" AMERICAN NUCLEAR INSURERS Industry Initiative Action Plan • Issued last Thursday 6/22/06 • July 31, 2006 Milestone • Voluntary Reporting Questionnaire • Implement Action Plan

13. “RETS – REMP 2006" AMERICAN NUCLEAR INSURERS Summary • ANI Supports the Industry Initiative and looks forward to its successful implementation.