Mike PeckhamCAC January 16, 2007

Pickering A Units 2 & 3 Safe Storage Project

2

The Decision

Environmental Assessment

Site Acceptance

Construction

Commissioning

Operation

Safe Storage

Dismantling

Site Restoration

OPG Managementrecommended that therestart of Units 2 and 3not proceed, based on return on investmentanalysis.

Decision endorsed by Board of Directors andProvincial Government.

This decision is final.

3

Safe Storage Stage

Overall principles have been identified:

• Both reactors will be defuelled.

• Heavy water will be removed from the moderator and heat transport systems.

• Systems will be de-activated (where possible).

• Common systems supporting Units 1 and 4 will be moved to a live unit (where possible).

4

Strategy

• System end states have been developed for each of the 53 groups of systems identified for system performance monitoring.

• End states are being documented and approved in a Safe Storage Package, which will include:

Flowsheets

Controlled document lists

Master equipment lists

Power supply lists

Air supply lists

Active TCR

Applicable predefined

5

6

Engineering Packages

Type of PackageType of Package Unit 2Unit 2 Unit 3Unit 3End State Reports 54 50

Modifications 347 292

Cut and Cap 138 133

New Modifications 143 122

Regulatory commitments from RTS 66 37

7

Schedule - Milestones

8

Progress to Date

• Maintenance of safe, laid-up state

• Rehabilitation of Unit 2 fueling machines

• 104 End State Determination Reports

• Development of project governance

• Budget quality cost estimate

• Project Execution Plan

• Initial contracts for design engineering

• CNSC staff in Ottawa briefed; no significant concerns raised

• Commenced defueling Unit 2 August 23

• Design changes 69 of 612

9

Licensing Issues

• The CNSC has approved reactor defuelling and removal of heavy water under the existing operating license.

• At sometime in the future after the fuel and heavy water have been removed, the license may again be modified to reflect the safe storage conditions.