sa - Nuclearelectrica
Transcription
sa - Nuclearelectrica
“NUCLEARELECTRICA” SA CORPORATE REPORT 2005 1 CONTENTS Foreword .........................................................................................................................5 Company in Brief .............................................................................................................6 Business Vision ...............................................................................................................6 Organizational Chart .........................................................................................................7 Company Operations ........................................................................................................8 Nuclear Power Generation: Cernavoda NPP Unit 1 ...............................................................8 Nuclear Fuel Production ..................................................................................................12 Nuclear Safety ...............................................................................................................14 Nuclear Events ...............................................................................................................14 Radiological Safety..........................................................................................................14 Industrial Occupational Safety and Health .........................................................................15 Environment Protection ...................................................................................................16 Project Development Activities ........................................................................................17 Cernavoda NPP Unit 2 Project .........................................................................................17 Cernavoda NPP Unit 3 Project .........................................................................................19 Spent Fuel Storage Facility .............................................................................................20 Nuclear Fuel Plant - Pitesti ..............................................................................................20 Corporate Social Responsability .......................................................................................21 Local Community Support ...............................................................................................21 Other social & economic effects ......................................................................................21 Emergency Planning .......................................................................................................22 Quality Management System ...........................................................................................23 Human Resources and Personnel Training .........................................................................24 Public Relations and Communication .................................................................................25 International Cooperation ................................................................................................26 Financial Statements ......................................................................................................27 Audit Report .................................................................................................................27 Balance Sheet ...............................................................................................................28 Profit and Loss ..............................................................................................................31 3 FOREWORD In a global market economy, the companies' role, the corporate responsibilities and the openness towards trade are getting more and more important. The new concept of social corporate responsibilities highlights the necessity of managing the company based on the sustainable development requirements, and of having the appropriate responsibilities assumed by all the team members. Contemplating this background, the role of Societatea Nationala NUCLEARELECTRICA SA (SNN) SA is to generate safer and environment friendly electricity. The affordability, availability and acceptability of the energy supplied by the Cernavoda NPP are basic values for the company's management in defining the present and future economic, human and environmental responsibilities. Since December 2nd 1996, operating with one unit of 700 MW, the Cernavoda NPP Unit 1 provides annually 10% of the electricity production of Romania. The 9th year of commercial operation of the Cernavoda NPP Unit 1, 2005, was the best year in terms of operation performance. Out of a total production of 5,554,959 MWh, the Cernavoda Unit 1 delivered 5,112,959 MW to the national electric power grid. The capacity factor reached the value of 90.1%, while the average value attained over the whole commercial operation period, 1996-2005, reached the value of 87.13%. These figures rank the Cernavoda NPP Unit 1 among the world best nuclear CANDU 6 power plants in terms of operational performance. The works program at the Cernavoda NPP Unit 2 amounted to Euro 255.2 million, leading to a completion work of 90% in December 2005. About 154 systems out of 307 were also turned over from the construction to the commissioning team. As regards, the continuation of Cernavoda NPP project, based on of the approval of the Board of Directors, SNN SA authorized the firm Deloitte & Touche to elaborate a Feasibility Study, considering the alternative of a joint venture and analyzing the alternative of completing the Units 3 &4 simultaneously. The Nuclear Fuel Plant - Pitesti, a branch of SNN SA, has just completed the modernization process and the production twofold increase process. In 2005 the plant exceeded a production of 50,000 nuclear fuel bundles, reaching the fourth consecutive year with a failure rate of 0% for the nuclear fuel used in the reactor of the Cernavoda NPP Unit 1. In 2005, the Cernavoda NPP entered the free market with a share of about 15% of the electric power it generated. This was the challenge of 2005 that SNN SA addressed successfully. In accordance with the principles of the corporate social responsibilities, SNN SA identified stricter managerial criteria with respect to the legal limits allowed for the radioactive emissions. By taking the appropriate measures and by strictly monitoring the operation personnel from the radiological point of view, the average dose received by a worker during 2005 was only of 1.42 mSv as against the legal limit of 20 mSv/year. For an individual, member of the population living in the area near plant the site is of 1 mSv/year and along the Unit 1 operation period, this value has never been exceeded, ranging between 0.007-0.09 mSv/year. As for the greenhouse gas effect, the operation of the Cernavoda Unit 1 avoided the annual release into the environment of an amount of about 3.7 million tons of CO2. Only a company having a strong financial basis can efficiently manage its corporate responsibilities and can responsibly act on the social level. Having only one unit under operation, under the competition conditions of the market economy, SNN SA succeeds, through an efficient management, to fulfill this role. Moreover, SNN SA is capable and motivated to constantly improve its management with respect to operation, human resources and environment protection. Within the Social Program approved and monitored by the Government, the community of the Cernavoda town benefits by an important financial and managerial support from the nuclear power plant. New practices are promoted related to human rights, freedom of association, education, consumer's rights, culture, etc. For the year 2006 SNN SA has planned some targets that will confirm the motto" Energy serving the human society": • a stronger presence of SNN SA on the electricity market; • permanent monitoring of the progress of the Cernavoda NPP Unit 2 project; • maintaining the quality of the nuclear fuel manufacturing at the Nuclear Fuel Plant PlantPitesti; • proceeding with the implementation of the decision regarding the commercial and financial structure of Units 3 and 4; • maintaining the level of acceptability by the population and authority. 5 COMPANY IN BRIEF COMPANY IN BRIEF Since July 27, 1998 Societatea Nationala “NUCLEARELECTRICA” (SNN) SA is registered with the Register of Commerce, Chamber of Commerce and Industry. SNN SA is reporting to the Ministry of Economy and Commerce. “NUCLEARELECTRICA” SA is a state-owned company which produces nuclear-generated electricity, provides district heating and supplies CANDU 6 type nuclear fuel. The company has also an active participation in the Romanian power development program. “NUCLEARELECTRICA” SA has three levels of coordination as follows: • General Assembly of Shareholders (AGA), the highest level of coordination that analyses andapproves the strategy and policy of the company; SNN SA has three branches, no legal entities: • “CNE PROD Cernavoda”, operating the Cernavoda NPP Unit 1 and auxiliary services; • Executive Directing Committee whose main objective is reviewing and analysing the current activities; • Board of Directors that has the responsability of supervising the current activities and of making decision at a high competence level; • “CNE INVEST Cernavoda”, including Units 2 to 5, actually in charge with the Unit 2 completion and U3-U5 preservation; 6 • “FCN Pitesti”, the Nuclear Fuel Plant, qualified manufacturer for CANDU 6 type nuclear fuel that fully covers the needs for the Cernavoda NPP operation. BUSINESS VISION • National and European acknowledgement of the Cernavoda NPP as a safe, secure, efficient, competitive and clean producer of electricity • Meeting all the requirements and conditions imposed by the European Community with respect to nuclear industry • Developing an organization operating two units of 705.6 MWe each, on the Cernavoda NPP's site, based on an integrated approach • Keeping a high quality and continous production of CANDU 6 type nuclear fuel at FCN Pitesti • Achieving a permanent, transparet, open dialog with the public in order to increase people's trust and acceptance with respect to nuclear power for the benefit of the whole society sustainable development. ORGANIZATIONAL CHART ORGANIZATIONAL CHART 7 COMPANY OPERATIONS NUCLEAR POWER GENERATION: CERNAVODA NPP UNIT 1 Mission: Cernavoda Nuclear Power Plant is designed to produce electrical & thermal power in a safe and efficient manner for at least 30 years, from nuclear power using CANDU technology. Power generation in Romania in 2005 (gross) 8 29% 20% 41% Yearly, “NUCLEARELECTRICA” SA delivers electricity to the national grid covering around 10% of the national demand: Installed capacity in Romania Nuclear Power Plant 5 555 GWh Nuclear Unit 707 MW Coal 23 650 GWh Units on coal 6 189 MW Oil & Gas 11 200 GWh Units on oil & gas 4 409 MW Hydro 16 500 GWh Hydro power units 6 052 MW Total 56 900 GMh Total 17 357 MW 10% Values: • To promote the safety of public environment, personnel and equipment as a first priority in our organization • To understand and exceed our customer’s needs and expectations • To treat people with trust, respect and dignity • To optimize the use of material, financial and human resources • To operate as a fully integrated team • To promote our business as a model for Romanian’s market economy Generic goals: • To maintain the plant at full power within the limits required by the licensing documents • To maintain nuclear safety, industrial safety and personnel health at high standards • To maintain configuration control of the plant at high standards • To maintain material condition of the plant at high standards • To maintain and improve the existing business process • To learn from operation experience • To continuously develop and motivate human resources • To maintain good contacts with the industry and a good image of the plant 35.5% 25.0% 35.5% 4.0% Prospects on the future: • To become a reliable and clean supplier of electricity worldwide recognized • To continue as a clean (non-polluting), efficient and competitive producer • To meet the European Union requirements and conditions for nuclear industry • To assure internal services for Unit 2, mainly for training, commissioning and licensing process • To take over Unit 2 and create an organization with two units in operation Operations in 2005 Legend The number and the extent of planned and unplanned plant shutdowns during 2005: 1 -19.08.2005 (24 days) - annual planned outage 2 -19.01.2005 (2 days) - unplanned outage (reactor trip due to low boiler level, following a control valve failure) 3 -28.01.2005 (6 days) - forced outage (repair of a pneumatic valve in the Shut-down System #2, found blocked during a periodical test of the system) 4 -19.07.2005 (2 days) - unplanned outage (a false signal, due to wet atmosphere, activated the gas relay of unit transformer protection; the electrical generator was disconnected from the grid and, during the transient, the reactor was shut-down) 5 -17.11.2005 (2 days) - unplanned outage (a spurious signal from an electronic module of the turbine regulator called the sudden closure of the control valves; consequently, the reactor tripped due to the low boiler level) Commercial Operation in 2005 Month Generated power Net Power to Grid Gross Capacity Factor MWh MWh % January 433 538 399 694 82.86 February 414 824 382 096 88.03 March 526 651 485 409 100.89 April 513 636 473 945 101.24 May 527 469 486 459 100.56 June 506 789 467 094 99.85 July 475 900 437 071 90.60 August 312 801 287 037 59.54 September 306 095 280 952 60.24 October 530 976 488 951 101.11 November 477 156 438 920 94.32 December 529 124 485 331 101.36 Total 5 554 959 5 112 959 90.08 9 Nuclear Power Generation - Cernavoda NPP Unit 1 Performance 1997-2005 Annual Electricity Production 2005 5 114 677 5 554 959 2004 5 142 305 5 548 082 4 541 418 4 905 663 2003 10 Thermal Power 2002 5 106 225 5 513 410 2001 5 049 871 5 445 900 2005 50 238 48 557 2000 5 053 355 5 455 751 2004 2003 1999 56 177 52 108 2002 4 813 027 5 198 083 48 082 2001 1998 4 918 951 5 307 181 2000 1997 4 968 837 5 400 856 1998 64 553 70 864 1999 72 226 45 307 1997 4.4 4.6 4.8 5.0 5.2 million MWh (TWh) 20 30 40 50 60 70 Gcal During 1997 - 2005 542 686 Gcal were supplied Delivered (NET) Produced (GROSS) Comparison of CANDU 6 GCF (10 units) 90.1 % 87.1 % CERNAVODA 1 83.2 % 84.8 % EMBALSE Annual Gross Capacity Factor (GCF) 90.08 % 2005 89.71 % 2004 2003 SINCE IN SERVICE 2002 79.52 % 87.13 % 89.37 % 88.25 % 2001 GENTILLY 2 81.1 % 79.3 % POINT LEPREAU 79.2 % 82.5 % QINSHAN 4 84.1 % 84.2 % QINSHAN 5 81.1 % 85.1 % WOLSUNG 1 77.7 % 85.6 % WOLSUNG 2 98.1 % 93.3 % WOLSUNG 3 104.5 % 95.3 % WOLSUNG 4 98.4 % 96.7 % 88.3 % 2000 84.51 % 1999 86.19 % 1998 87.27 % 1997 78 80 82 84 86 88 % 70 75 80 85 90 2005 SINCE IN SERVICE At the end of 2005, average of GCF for 10 CANDU 6 units in service slightly decreased to 87.8 % but is mantaining in the same range of 8889 %, like over the past five years. Average of GCF for all 39 CANDU [PHWR] units in service was 82.2%. (source: COGnizant) 95 90 % Heavy Water Consumption 2005 “U” Consumption Fuel Bundles Consumption 5 144 2005 2004 2003 2002 2001 2000 1999 1998 1997 5 176 4 792 5 244 5 124 4 868 5 056 4 767 Year Tons “U” 2005 99.4 2004 90.6 2003 99.5 2002 99.2 2001 96.9 2000 92.0 1999 95.6 1998 90.4 1997 0.30 Total 664.5 2004 2003 2002 2001 2000 1999 1998 27 654 23 638 4016 30 585 27 170 3 414 31 734 27 580 4 154 28 076 23 439 4 637 21 192 17 411 3 781 31 888 27 524 4 363 45 902 43 373 2 592 24 904 22 879 2 025 1997 81 340 76 364 4 976 4500 4600 4700 4800 4900 Fuel Bundles 0 Total Fuel Bundles Consumption since in service: 40 833 Consumption = Escape - Recover 20 40 60 80 3 10 kg/y Consumption Design Value: 5200 kg/year Outages During the 2005 planned outage there were performed visual inspections and non-distructive examination and maintenance activities. there were also carried out works meant to improve the original plant design by increasing the reliability of the plant and some critical components, and also works meant to improve the operation activity of some equipment and systems. Planned Outages 1997 5 16 1998 9 36 1999 20.5 31 2000 0 26 outages extension, days 2001 0 39 2002 0 22 2003 1.5 44 2004 7 27 2005 0 24 planned duration, days Unplanned Outages Reportable events to nuclear regulatory authority (CNCAN) 20 2004 503 13 2003 383 371 6 2 95 1997 9 2005 639* 1998 2 134 1999 number of outages 296 5 2 2000 113 2001 4 2 2002 total duration, hours * 635 hours caused by “force majeure” (drought) 2003 1 79 2004 4 17 2002 19 2001 18 2000 19 1999 22 1998 2005 25 1997 0 5 10 Number of Events 15 20 25 30 11 Nuclear Fuel Production The Nuclear Fuel Plant-Pitesti (FCN) is qualified by AECL and ZIRCATEC as a CANDU 6 type fuel manufacturer. The initial capacity of 90 tons per year and 23 bundles per day, respectively provided the fuel necessary for the operation of Cernavoda NPP Unit 1. In 2005, FCN-Pitesti manufactured 6.264 nuclear fuel bundles, as follows: • 4.248 natural uranium bundles for U1; • 2.016 natural uranium bundles for U2; So, the total number of fuel bundles produced between 1994-2005 rose to 51.135, containing 986.9 tons of natural uranium. Defect Fuel Bundles History Number Reactor Chanel Refueling Date (EBu-DBu) / DBu* (%) Fuel Supplier 2005 1 H19 January 21, 1997 -37.3 ZPI 2003 2 D15 March 14, 1997 -20.3 ZPI 3 O17 April 21, 1997 +11.3 ZPI 4 E11 August 1, 1997 +13.4 ZPI 5 N4 October 6, 1997 0 FCN 6 L17 October 7, 1997 +42.7 ZPI 7 G14 November 21, 1997 +7.1 FCN 8 F6 November 24, 1997 +6.6 FCN 9 U10 January 27, 1998 +27.2 ZPI 10 J15 March 24, 1998 +29.9 FCN 11 D9 April 3, 1998 +10.6 FCN 12 L8 July 24, 1998 +23.3 FCN 13 E9 May 25, 1999 +8.7 FCN 14 C12 June 2, 2001 +14.6 FCN 6264 6782 2004 5021 2002 5779 2001 5580 5816 2000 4660 1999 3811 1998 4510 1997 1996 1032 1678 1995 1994 202 0 1000 2000 3000 4000 Nuclear Fuel Bundless *EBu - Exit Burnup DBu - Designed Burnup Failure Rate (%) 0.00 0.00 2001 0.00 2000 0.00 1999 0.0102 1998 0.00 0.011 1997 0.042 The high quality and performance of the domestic nuclear fuel have been proved during the power reactor operation. At an average burnup factor of 170 MWh/kgU, in 2005 the failure rate was 0.00%, reaching the fourth consecutive year of operation without detecting any nuclear fuel bundle suspected to be defective. 0.086 12 Nuclear Fuel Production 2002 2003 2004 2005 During the second quarter of 2005 (from March to May) the manufacturing line was tested at a capacity needed to ensure the fuel for two operating units. Thus, the average monthly production was achived at a number of 946 bundels. In July, the documentation for the individual dosimeter laboratory was submitted to CNCAN. The laboratory was tested with termoluminiscent detectors by CNCAN, in October in order to be authorized. In October, the first pellet washing installation was also tested. At the end of 2005, two more similar installations were purchased, destined to the modernization and twofold increase of the production capacity of FCN. Accordingly, the first load of the Cernavoda NPP Unit 2 will be provided by FCN - Pitesti. Further, the annual production will be of 180 tons, in accordance with the quantity required by two CANDU units in service. 13 2005 - Achivements 17 January The nuclear fuel bundle # 45,000 was manufactured 5 May FCN obtained a 5 year enviromental authorisation, issued by the Goverment Decision #40/5 May 2 August Consecutive 50th months of Unit 1 operation without anynuclear fuel bundle suspected to be defective 15 September The nuclear fuel bundle # 50, 000 was manufacturated 10 November The closure of the production program for 2005, with a total figure of 6264 fuel bundles produced for Unit 1 and the initial load of Unit 2 December 10 years since AECL and ZPI authorized FCN as CANDU-6 type reactors nuclear fuel supplier NUCLEAR SAFETY Nuclear Events The Cernavoda NPP Unit 1 has been safely operated throughout a period of nine years. The events reported in 2005 according to INES scale were in number of 8 (1 below scale, 5 level 0 and 2 of level 1). Since in service, only 1 event rated 2 on the INES scale occured in 1999. The International Nuclear Event Scale (INES) is used for prompt communication of safety signifiance. 14 Radiological Safety In 2005, the annual average dose received by workers was 1.42 mSv, and the maximum dose 12.21mSv. The legal limit, for total effective dose, exposed workers is 20 mSv/y and the administrative limit is 18mSv/y. During 2004 and 2005 CNE-PROD had twice increased tritium concentrations in the boilers room and some accesible areas in the reactor building. These situations was reflected in the collective dose: the contribution of internal collective dose increased from 36% in 2003 to 61% in 2004 and 53% in 2005. For 2006 there were established performance indicators to improve station / work group performance related to: • plant collective dose: the target value was decreased from 0.75 to 0.7 Sv/y; • internal dose contribution to the total effective dose: the target value is 40%; • progressive monthly targets for collective dose for station / work group. Health Physics Department provides on a daily basis upto-date monthly collective dose by station disciplines, thus increasing station departments ownership of collective dose and aligns departaments for upcoming activities that requires radiological consideration. Collective radiation exposure (man x Sv): 0.7316 2005 0.656 2004 0.818 2003 0.55 2002 0.57 2001 0.46 2000 0.45 1999 1998 0.25 1997 0.24 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 (man x Sv) Annual average dose value for exposed workers (mSv/yr) 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 0.40 3.81 0.76 1.29 1.25 1.26 1.12 1.26 1.17 1.42 OCCUPATIONAL INDUSTRIAL SAFETY AND HEALTH Occupational Industrial Safety and Health “NUCLEARELECTRICA” SA SNN SA has implemented a safety & health policy having as a major objective to guarantee safety and healthy workplaces for each employee. The policy is based on the principle that accupational safety and health are priorities. Safety performance will improve year by year through the provision of safe systems of work, appropiate equipment and training for employees. The Occupational Safety and Health Committee holds regular meetings to discuss health and safety items. In 2005, the activities were dedicated to the objective of improving health and safety management as part of company development strategy. A number of 6 work related accidents were registered in 2005 (4 accidents at CNE PROD and 2 at CNE INVEST); two of them were registered as travel accidents. Neither professional nor profession related illnes has been reported. Number of work - related accidents within SNN SA Branches 1997 1998 1999 2000 2001 2002 2003 2004 2005 5 1 4 2 10 7 1 0 6 15 ENVIRONMENT PROTECTION Environment Protection 16 Over the years, the Cernavoda NPP has operated strictly meeting the environment requirements. The environmental monitoring results have proved the compliance with the company’s environmental policy and environmental licence. SN Nuclearelectrica SA through its subsidiary CNE PROD Cernavoda also developed and implemented an Enviromental Management System. CNE PROD Cernavoda is certified ISO 14001. It will be extended over Unit 2 at the moment of its commissioning. Radiological environmental impact In August 2005 it was issued the second Environmental license for Cernavoda NPP Unit 1. The total volume of radioactive waste radioactive solids, organic licquids, inflammable solids, since is 224.15 m3 since Unit 1 is in service. The main goal of Radioactive Waste Management Program is to minimize the radioactive waste volume. A PHARE project will assist and implement adequate equipment and procedures to characterize radioactive waste at Cernavoda NPP, in order to decrease the waste volume and start to apply clearance level process. Radioactive discharges into water and air were well below the authorized levels. The annual effective dose received by a member of the public pertaining to a critical group (the most exposed) from radioactive emissions into the environment was of 0.00818 mSv in 2005 while the annual average dose received by a member of the public from the natural background in Romania is 2.4 mSv. More detailed information on the radiological impact is provided in the “Environmental Progress Report”. Volume of radioactive produced waste m3 (radioactive solids, organic licquids, inflammable solids) 33.53 2005 Impact on people & environment Cumulated releases of radioactive effluents (µsv) 2005 2004 33.74 2004 2003 30.59 2003 33.13 2002 2002 28.62 2001 15.10 1997 0 5 10 7.22 4.49 1999 23.26 1998 8.3 7.27 2000 26.18 1999 9.94 6.11 2001 xx.xx 2000 8.18 15 20 25 30 Total in 9 years of operation: 224.15 m3 1998 5.68 1997 5.51 3.31 1996 0 2 4 6 8 10 µSv/year Annual legal dose for population: 1000 µSv In 2004, the average annual dose was only 0.99%from the legal dose. Non-radiological environmental impact Cernavoda NPP Unit 1 as clean energy producer prevents the release into atmosphere of about 4 millions tones of carbon dioxide annually. Quality of air, soil and water in the surrounding area was not influenced by the operation of Unit 1 since in service. Nonradioactive discharges into water (Danube River and Danube-Black Sea Channel) were below the authorized limits. The strictly monitoring program of specific pollutants such as hydrazine or morpholine has indicated that the concentration of these chemicals is below detectable limit. The study “The mechanic effects of entreinment and impingement on the aquatic flora and fauna reached in the sieves of cooling water supplyng system of CNE- Cernavoda, as well as the organism from the filtered water subsequently circulated in the cooling water of NPP” has been completed. This study has been conducted during a calendar year at Unit 1, concluded that the currently used technicaly system for cooling water supply has a minimal negative impact on the ecologically threatned organism or on the commercially valuable species. A non-radioactive chemical waste management program was implemented for Unit 1 since commissioning. It is continuously improved according to the Romanian legislation referring to waste management. The program includes collection, temporary storage and disposal of chemical wastes. CNE-PROD policy in this area takes care of on-site adequate management of wastes in order to prevent any impact on the environment. PROJECT DEVELOPMENT ACTIVITIES Project Developement Activities The total investment costs for 2005 amounted to around 908,5 million lei available from funds allocated from the state budget, special development fund, own resources, VAT recovery and other financing sources involved in the project. The investment activities focused mainly on achieving progress of works at the Cernavoda NPP Unit 2. Independent tools and equipment were procured in order to double the manufacturing capacity of the nuclear fuel plant at Pitesti. In addition, support was given to local community development in Cernavoda town. Cernavoda NPP Unit 2 Project Cernavoda NPP Unit 2 Project is planed to be completed and put into commercial operation in 2007. Unit 2 will produce around 5.1 TWh/year, strengthening SN Nuclearelectrica SA position on the electricity market. For Romania, this will mean an increase of clean energy share in electricity generation and maintaining an acceptable degree of dependence on the import of primary energy resources. At the end of 2005, Cernavoda NPP Unit 2 was built in proportion of 90.2%. The value of the activities performed represented 86.1% of the Project budget as per Unit 2 completion and commissioning contract, while the incurred cost for this Project was around 606.7 million EUR. In 2005, an important number of systems reached the completion phase, respectively 154 systems were completed, which means that 50% of the plant is undergoing the commissioning tests phase. The detailed design was completed and, further, the work will focus on solving the site dispositions and on the implementation of some design changes with minimal impact on procurement of new equipment and material. Additional amount of equipment and materials identified as necessary following either the completion of the detailed design or following some invariable failures of the equipment and materials stored in warehouses or erected before the Completion Contract coming into force, through the Addenda concluded with the main parteners on site (AECL - Canada, ANSALDO - Italy, NEXANS - France and GENERAL ELECTRIC - SUA). 17 Cernavoda NPP Unit 2 Project 2005 Achivements January Installation completion of the assembly motor-pump (MP1) of the moderator system May Installation of steam generators nozzles for testing light water level September The system number 100 was transferred from the Construction Group to the Commissioning Team November Two of the greatest systems: the service water and intermediate cooling water were transferred to the Commissioning Team. 18 The five enhancing columns in the DO2 tower were succesfully completed. December The transfer program was succesfully completed. 30 critical systems were transferred to the commissioning team. Thus, the transferred systems reached the number of 154. The traning process for three shift supervisors and seven main operators in the main control room to be authorized by CNCAN came to an end. These authorizations were necessary for the operation of Unit 2. The first amounts of heavy water for the moderator systems were taken over. Cernavoda NPP Unit 3 Project Current Status Unit 3 is under preservation, with no progress since 1992. The overall completion ratio: almost 15%, mainly civil works for Reactor Containment, Turbine Building and Service Buildings. Only few equipment and materials are already supplied. The Cernavoda site continues to offer a good industrial environment and the required infrastructure to support large size projects. 19 Prospects The Unit 3 Project will be similar to Unit 1 and Unit 2. In compliance with the Romanian Government’s decision the Cernavoda NPP Unit 3 will be completed through a Project Company with private, local or foreign investors, without state guarantees. Based on the approval of the Board of Directors, SNN SA authorized Deloitte & Touche to prepare a feasibility study, considering the alternative of a joint venture, of private investors and SNN SA, by March 31, 2005. The study, to be completed on March 2006, would also assess: • the fesability of including additionaly completion of Unit 4 in the scope of the joint venture; • completion of Unit 3 by SNN SA only from its own resources. Within this Project Company, SNN SA will be a minor investor and the available assets of Unit 3 will represent its contribution to the nominal capital. Spent Fuel Storage Facility The Cernavoda NPP’s spent fuel management policy is the following: • wet storage, in the reactor’s Spent Fuel Bay for minimum 6 years • interim storage, in the Dry Spent Fuel Storage Facility for 50 years. The first dry storage concrete module - MACSTOR’s type - has a capacity of 2 years spent fuel plant production and was commissioned in May, 2003. The dry storage facility is located on the Cernavoda NPP site about 700 meters far from the operational unit and the transportation is achived through internal road that allows keeping an integrated security system. In 2005 the construction of the next two modules was licensed by CNCAN. 20 Nuclear Fuel Plant - Pitesti In 2005 FCN’s modernization program for doubling its manufacturing capacity continued: In October, the works to rebuild the electricity supply of FCN began. The new system will ensure the necessary energy supply for further developments on the factory, and will also increase the operation safety. CORPORATE SOCIAL RESPONSABILITY Local Community Support The Local Community Support Act for improving the living conditions in the town of Cernavoda started in 1991, including a number of 21 objectives related to the project of the Cernavoda NPP: urbanistic, social, cultural buildings for the town, as well as dwellings for the operation and executive staff of the nuclear power plant. Afterwards, eight of these objectives were abandoned. For the year 2005 it was decided to proceed with the works on three objectives included in the Social Program, as follows: • The waste water and sewage treatment station scheduled to be completed in April 2007; • The district heating system -the connection and thermal generation point PT 17. The thermal point was commissioned in late November 2005; • The hospital having a capacity of 100 beds medical equipment that was taken over and installed at the end of November 2005. Other social & economic effects • Provides over 1,870 jobs as SNN employees and, on the long term, around 350 jobs for contractor companies; • Provides long term contracts for over 34 companies in the county of Constanta with a total business figure of 60 mil. RON; • Provides accommodation for over 570 plant employees; • Provides heating for more than 60% of Cernavoda inhabitants at the lowest price in the country; • Brought an important financial contribution to the local and state budgets in 2005: equivalent of 693,300 USD and 10 mil. USD respectively. 21 EMERGENCY PLANNING Emergency Planning So far, no CANDU nuclear power plants had events or accidents threating public health and safety. Despite the fact that these risks are minimised, as the plant is equipped with emergency systems designed to prevent and cope with such events, additional measures are also taken for public and environment protection. Among them, we would mention the emergency preparedness, required by the national law as a prerequisite for licensing the operation of a nuclear power plant. Within the Cernavoda NPP, the emergency preparedness is verified and improved through quarterly, annual or general (once at three years) drills simulating various conditions of a nuclear accident. 22 Begining with 1995, local, national and even international drills were performed at the Cernavoda NPP: ”AXIOPOLIS’95", ”SAFE POWER’96", ”PHOENIX’97", “DOBROGEA’98", “DUNAREA ’99 ”, “MILLENIUM’00”, ”AXIOPOLIS’01", “EURO’02”, CHALLENGE ‘03”, “EUXIN’04” and “CONVEX-3 ’05”. “CONVEX-3 ’05” was an international radiological emergency drill attended by many international organizations (EC, IAEA, UNEP/OCHA, WHO, WMO, OECD/NEA, FAO, NATO/EADRCC, etc.) with reponsabilities in this field and over 50 states. This drill was organised in co-operation with the Romanian Public Authorities, regulatory body (CNCAN) and the international organizations mantioned above. The drills allowed testing the emergency plans, improving communication and activities involved in radiological emergency. Prior the exercise important information in case of an emergency were included in booklets that were distributed, free of charge, to the inhabitants of the areas neighboring the nuclear plant. Cernavoda On-Site Emergency Control Centers (COSECC) project, that has been developed in co-operation with British Energy NNC International Consulting (BENIC) experts has been continued. The main objectives of this project are to improve the emergency preparedness and response in accordance with the best practices in European Union and to set up two On-Site Emergency Control Centers (the main one and an alternative). An important aspect is that the new centers will accommodate in very good conditions Cernavoda multiunit NPP emergency response. At the end of 2005 most of the construction and commissioning work for the Alternative Emergency Control Center have been completed and the target date to declare it operational is is 1st quarter of 2006. In order to preserve good common experience and to mantain the actual emergency arrangements with the Public Authorities, SNN keeps a very good collaboration with the national authorities in charge and Cernavoda NPP with local authorities (Cernavoda Town and Constanta County). QUALITY MANAGEMENT SYSTEM Quality Management System NUCLEARLELECTRICA" SA has developed and implemented an Overall Quality Management System (QMS), based on Law 111/1996 requirements and Romanian Quality Management Regulations (NMC Series). The System establishes the requirements related to all phases of the Cernavoda NPP including the nuclear fuel manufacturing within Pitesti facilities. The System is described by SNN SA Quality Management Manual and appropriate procedures referred to in the SNN SA's manual. As per SNN SA Overall QMS requirements, each subsidiary has developed specific Quality Management Systems based on specific Romanian Regulation (NMC) applicable for the specific phases and in compliance with SNN SA's QMS. Periodical QA meetings are held at the level of SNN SA Head Office in order to identify any difficulties in implementing QMS requirements at the level of subsidiaries. SNN SA has provided the necessary support to subsidiaries in order to solve any issue at the interface with the Regulatory Body (CNCAN) and ISCIR. During 2005, the QA authorizations, as per the requirements of Law 111, were renewed by CNCAN and SNN SA. The operation License of the Cernavoda NPP Unit 1 was also renewed during 2005 by CNCAN based on comprehensive audits conducted at the level of SNN SA Head Office and its subsidiary CNE PROD Cernavoda. The results obtained in the operation of the Cernavoda NPP Unit 1- the capacity factor over 90% combined with the success of the OSART Mission (only few suggestions and recommendations) also show the success of QMS implementation at the level of SNN SA and its subsidiaries. These are also proved by "0" defects recorded for four years consecutively for nuclear fuel bundles manufactured by FCN Pitesti (Nuclear Fuel Manufacturing Plant - SNN SA's subsidiaries). CNE Cernavoda Division received new responsibilities related to the coordinate operation activities of the CNE PROD Cernavoda and commissioning activities for U2 and cooperation between CNE PROD Cernavoda (U1) and MT Commissioning (U2). The new responsibilities at the interface between U1 and U2 were documented within RD-A4 which was approved at the level of CNCAN. For "NUCLEARELECTRICA" SA the QMS improvement represents a permanent preoccupation. For this purpose we mention the following objectives: • the general implementation of a self-assessment system in all the organizational entities of SNN SA, following the good results obtained through this system within CNE-PROD Cernavoda; • gradual conversion of QMS into an integrated management system ready to meet CNCAN's requirements and the requirements of ISO-9000, ISO-14001/2004 and OHSAS-18001. 23 HUMAN RESOURCES AND PERSONNEL TRAINING Human Resources and Personnel Training The company is paying a permanent attention to the improvement of training, qualifications and know-how in order to ensure the stability and high specialization of the personnel. The efficiency of "Nuclearelectrica" S.A.'s activity increased starting with 1999 by implementing a restructuring program. In the year 2005, the following aspects represented the priority of the human resources policy: 24 • paying more attention to the professional training programs dedicated to our employees by increasing and diversifying the training fields and by extending the man-hours training; in 2005 a number of 1593 (out of a total of 2391 employees) attended training courses; • getting the young employees involved in making managerial decisions by periodical consultation; • hiring young graduates with bachelor or master degrees; • building a harmonious relation with the unions our social partners; keeping them informed about the management's decisions, which helped us avoid any work conflicts. Average number of SNN SA personnel 2391 2005 2004 2418 2003 2002 2308 2001 2301 2000 1999 2146 2286 2458 For improving our human resources policy and activity, our specialists together with the IAEA experts reviewed the organization chart considering two units under operation; they suggested an organization structure that will be final and get approved during the course of the year 2006. This key event added to other important ones that took place in 2005: • reorganizing additional activities by giving up to some departments and by adding part of their activities to the remaining departments, which resulted in bringing down certain management positions; • for commissioning the Cernavoda Unit 2 during the year 2005, 90 additional employees were trained for the operation activity. At present, the Unit 2 commissioning operation personnel, that were fully trained, are in place ready to properly accomplish their tasks. PUBLIC RELATIONS & COMMUNICATION Public Relations Honesty, transparency, promptness, trust and respect are the main characteristics of the SNN SA’s public relations policy. SNN SA also contributed to the development of some events and participated in different conferences on various topics, such as: A considerable amount of printed materials such as brochures, leaflets, information materials were issued and distributed to the public, policy makers, opinion leaders, media and the non-governmental organizations. • Documentation and information visit for the representatives of the Romanian institutions and authorities, 31 May and 7 June respectively • Debate on "The Prospectives on Nuclear Power in Romania", Drobeta Turnu-Severin, 8 July • Workshop on "Pollution - a Disturbing Factor for the Quality of the Environment", Constanta , 7 July; • The National Symposium on the Electric Power Grid Reliability-SIG 2005", Sinaia, 26-30 September; • Debate on the Investment in Environmental Protection", Bucharest, October 19, 2005; • Conference on "Clean Energy for Clean Enviornment", Bucharest, 29 November • NUCINFO 2005, Calimanesti - Caciulata, 8-9 December A quartely Cernavoda 2 Newsletter underlining the main aspects related to the Cernavoda NPP Unit 2 is provided by the Management Team. In 2005 within the “Open doors” program initiated by the plant, 1,547 persons visited the Cernavoda NPP Unit 1 and about 490 persons visited the Cernavoda NPP Unit 2. SNN SA paid great attention to the events dedicated to nuclear power promotion. SNN SA was one of the main leaders in organizing the “Romanian Nuclear Energy Days”, including exhibitions and contests of drawings made by children up to 17 years old. Also, SNN SA was one of the main contribution to the International Symposium on Nuclear Energy - SIEN 2005, on “Nuclear Power - New Challenge”. Communication Personnel’s motivation and information on the aspect related to the specific activity they perform, creating proper team working conditions, based on trust, respect and mutual assistance, represent one of the main aims of “SNN SA program for public information, advertising and image”. Considering these aspects, « SNN SA program for public information, promotion and image for the year 2004 » provides a package of actions specific for the inside communication: • Organizing a visit for SNN SA personnel’s headquarters to the Nuclear Fuel Plant from Pitesti. 25 INTERNATIONAL COOPERATION International Cooperation 26 "NUCLEARLELECTRICA" SA continues to be an active player in international nuclear activities as a member of specialized organizations and entities, such as WANO Atlanta Center (World Association of Nuclear Operators) and COG (CANDU Owners Group) benefiting from a continuous exchange of experience in the field. SNN SA is also a member of the World Nuclear Association (WNA) and Electric Power Research Institute (EPRI). The company developed an effective partnership within IAEA European co-operation programs. SNN SA is also involved in international agreements concluded at governmental level with Japan (JEPIC), Argentina (CONEA), Canada (AECL) in the nuclear power field: commissioning, operation and maintenance, nuclear fuel manufacturing and personnel training. SNN SA has continued its co-operation with the traditional partners, AECL CANADA and ANSALDO ITALY as well as with other partners and companies, such as ALSTOM and NEXANS (FRANCE) GNERAL ELECTRIC-UNITED STATES, KOREAN HYDRO and NUCLREAR PONER (KHNP). SNN SA'experts were actively involved in the works of European professional organizations, such as EURELECTRIC and FORATOM. SNN SA was involved in organizind, or co-organizing more international missions and seminars: • Visit of the representatives of European Natural Association for Nuclear Insurance (ENANI), together with representatives of the SNN SA's insurance broker MARSH CANADA, 29-30 March 2005 • Seminar on "Management risk role and mission within a nuclear company", organized in cooperation with Marsh Canada, SNN SA's insurance broker, Bucharest, March 31-April1 • International technical session on "Liberalization Process of the Electric Power Market and the Impact on the Electric Power Plants Management and Operation" organized in cooperation with IAEA, Constanta, 19-22 April • Visit of an EDF delegation, 4-6 July 2005 Foreign Technical Missions at Cernavoda NPP 2005 2005 2005 2005 2005 2005 January-February March OSART mission AIEA on PSA External events and Unit 2 April WANO technical support August-September WANO technical mission during OUTAGE October AIEA technical support December WANO technical mission Health Physics and Safety Practices • The National Symposium on the Electric Power Grid Reliability-SIG 2005", Sinaia, 26-30 September • Nuclear Insurance Pool Members visit to CERNAVODA NPP, 20-22 September 2005 • Regional Forum on "Leadership, large investment projects and the visionaries of new Europe", Bucharest • The 32nd Annual Conference of STTR, Poiana Brasov, 6-8 December FINANCIAL STATEMENTS Audit Report SNN SA financial statements were endorsed by the PRICEWATERHOUSE COOPERS auditor in accordance with the Orders of the Romanian Minister of Public Finances No. 1827/2003 and No.1775/2004 respectively. As presented in the financial statements, 2005 has been a very good year for our Company. Financially this has been illustrated by good operating results: the Company increased the revenues from sales of energy, both produced and traded, by 14.8% and realized an operating profit of 41 RON million. In addition, the Company reduced the level of trade receivables to two months of sales, as compared to almost 6 months at 31 December 2004, and succeeded in repaying the entire principal, part of accumulated penalties and interest due on the debt to the Ministry of Finance. The good operating results were offset by a financial loss, which is mainly due to unrealized unfavorable foreign exchange differences, resulting from the revaluation of long term debt denominated in US dollar ('USD") and Canadian dollar ("CAD"), contracted mainly for the finalization of the Nuclear Power Plant - Unit 2. It is expected that this trend will reverse in 2006, because the Romanian currency has strengthened against the respective currencies in the first half of the year. Furthermore, we trust that the Company's revenues and results will continue to grow following the start of operations for Unit 2, further improving our cash flow, ability to service debt and strengthening our financial position. 27 Balance Sheet Lei Caption 31.12.2004 31.12.2005 - - 3,432,373 9,549,944 3,432,373 9,549,944 3,414,955,933 3,280,418,003 89,099,726 94,431,566 100,620,424 105,144,410 Assets Non-current Assets Intangible Assets Start up expenses Development costs Concessions and other similar items Goodwill Advances for intangible assets Total Intangible Assets Tangible Fixed Assets 28 Buildings and land Technological equipment Other tangible fixed assets Construction in progress 2,278,007,678 3,209,717,471 Total Tangible Fixed Assets 5,882,683,761 6,689,711,450 - - 100 100 100 100 5,886,116,234 6,699,261,494 266,776,346 270,953,143 5,908,412 6,954,928 35,328,131 42,959,317 7,433,889 9,967,970 315,446,778 330,835,358 Non-current Financial Assets Participation titles into group companies Loans receivable from group companies Participation titles Loans receivable from participations Long term financial investments Other loans receivable Own shares, non-current Total Non-current Financial Assets Total Non-current Assets Stocks Raw materials, materials, consumable & loose tools Work in progress Finished goods & merchandise Advances for stoks purchase Total Stocks Balance Sheet Lei Caption 31.12.2004 31.12.2005 225,542,872 96,303,995 26,910,849 35,182,454 252,453,721 131,486,449 Accounts receivable Trade receivables Receivables from group companies Receivables from participation Other receivables Debts/claims with the associates regarding capital Total Accounts receivable Current Financial Assets Shares into group companies Own shares, current Other short term financial investments Total Current Financial Assets Cash Total Current Assets Prepayments Total Assets 4,400 4,400 4,400 4,400 124,517,508 97,794,190 692,422,407 560,120,397 8,089,534 2,634,742 6,586,628,175 7,262,016,633 233,290,850 100,122,855 Liabilities and Equity Current liabilities Debentures, current portion Loans, current portion Advances from clients, current Trade payables, current Trade bills, current 4,708,364 233,455,453 247,208,905 632,919 84,116 312,879,001 269,230,779 780,258,223 621,355,019 873,707,172 1,879,634,767 Payables to group campanies, current Payables to participations, current Other liabilities (incl oth tax & empl rel), curr Total Current liabilities Non-current liabilities Debentures, non-current portion Loans, non-current portion Advances from clients, non-current Trade payables, non-current 29 Balance Sheet Lei Caption 31.12.2004 31.12.2005 Payable trade bills, non-current Payables to group campanies, non-current Payables to participations, non-current Other liab (incl oth tax & empl rel), non-curr Total Non-current liabilities 249,300,324 1,123,007,496 1,879,634,767 792,325,965 830,172,709 792,325,965 830,172,709 22,031 10,760 2,183,969 961,301,560 1,233,811,120 1,233,811,120 1,235,995,089 2,195,112,680 2,835,648,887 2,809,268,215 137,264 137,264 975,014,154 91,596,406 975,151,418 91,733,670 Provisions for Expenses Provisions for pensions and other similar Other provisions for expenses Total Provisions for Expenses Accrued income 30 Equity Share capital Unpaid in capital Paid in capital Regie's net worth Total Share capital Share capital premiums Revaluation differences Reserves Legal reserves Reserves for own shares Statutory reserves Other reserves Total Reserves Retained earnings/loss 1,155,781,116 1,165,271,187 Net Income 11,585,259 23,702,435 Profit appropriation 11,585,259 23,702,435 3,891,014,278 3,930,843,378 6,586,627,993 7,262,016,633 Public patrimony Total Equity Total Liabilities and Equity Profit and Loss Lei Caption 31.12.2004 31.12.2005 527,837,685 578,824,039 718,136 27,655,123 528,555,821 606,479,162 Net Result After Tax Net Result Before Tax Result of continuing operations Operating result Operating revenues Turnover Production sold Sale of merchadise Subventions related to turnover Total Turnover Increase/decrease in finished goods stock 13,287,851 8,496,158 575,848 21,050,122 1,689,982 5,263,776 544,109,502 641,289,218 56,424,309 56,580,551 Other materials expenses 5,269,910 5,264,850 Utilities expenses 8,124,251 12,650,124 640,967 43,849,997 58,497,726 78,190,323 Revenues from fixed assets production Other operating revenues Total Operating revenues Operating Expenses Raw materials and consumables expenses Merchandise expenses Personnel expenses Salaries expenses Social security expenses 22,223,059 29,776,290 80,720,785 107,966,613 165,344,489 167,905,566 165,344,489 167,905,566 21,634,167 5,301,946 (21,634,167) (5,301,946) 124,676,731 141,414,194 Expenses with other taxes and assim. payments 3,110,121 2,924,272 Fines, donations and disposed assets 5,770,154 5,146,751 133,557,006 149,485,217 Total Personnel expenses Tangible non-current assets adjustment Tangible non-current assets adjustment, expenses Tangible non-current assets adjustment, revenues Total Tangible non-current assets adjustment Current assets adjustment Current assets adjustment, expenses Current assets adjustment, revenues Total Current assets adjustment Other operating expenses Services rendered by third parties Total Other operating expenses 31 Profit and Loss Lei Caption 31.12.2004 31.12.2005 2,942,883 3,753,504 Provisions for expenses adjustments Provisions for expenses adjustments, expenses Provisions for expenses adjustments, revenues 2,942,883 3,753,504 Total Operating Expenses Total Provisions for expenses adjustments 431,390,433 542,154,476 Total Operating result 112,719,069 99,134,742 Financial Result Financial Revenues Revenues from participations Revenues from other financial investments 32 Interest revenues 8,329,800 8,308,115 73,591,544 8,687,823 81,921,344 16,995,938 21,837,412 8,298,385 161,217,742 84,129,860 183,055,154 92,428,245 (101,133,810) (75,432,307) 11,585,259 23,702,435 - - 11,585,259 23,702,435 Total Net Result After Tax 11,585,259 23,702,435 Net Income 11,585,259 23,702,435 Other financial revenues Total Financial Revenues Financial Expenses Financial investments adjustment Financial investments adjustment, expenses Financial investments adjustment, revenues Total Financial investments adjustment Interest expense Other financial expenses Total Financial Expenses Total Financial Result Total Result of continuing operations Extraordinary result Extraordinary revenues Extraordinary expenses Total Extraordinary result Total Net Result Before Tax Profit Tax Other tax expenses For National Romanian Bank exchange rates for EUR and USD are as follows: 1 EUR = 3.9663 Lei valid for 31.12.2004 1 USD = 2.9067 Lei valid for 31.12.2004 1 EUR = 3.6771 Lei valid for 31.12.2005 1 USD = 3.1078 Lei valid for 31.12.2005 Headquartes 010494 - Sector 1, Bucharest 65, Polona Street P.O. BOX 22-102 Tel: +40 21 203 82 00; Fax: +40 21 316 94 00 E-mail: [email protected] www.nuclearelectrica.ro Branches "CNE-PROD" Cernavoda 8625-Cernavoda 1, Medgidiei Str. PO Box 42 Tel: +4 0241 238 610 Fax: +4 0241 239 679 E-mail: [email protected] "CNE-INVEST" Cernavoda 8625-Cernavoda 3, Medgidiei Str. PO Box 1 Tel: +4 0241 239 962 Fax: +4 0241 239 266 E-mail: [email protected] "Fabrica de combustibil nuclear" Pitesti 115400 Mioveni, Jud. Arges 1 Campului Str. PO Box 1 Tel: +4 0248 260 160 Fax: +4 0248 262 499 E-mail: [email protected]
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