I'm honored to be part of this concluding session on Maximizing Asset Value.

Thank you all for joining this year's Nuclear Energy Assembly.

It has been an exciting year for our industry—a year in which we have witnessed an unprecedented resurgence and revival of nuclear energy.

I'd like to share with you a very apt quote from one of our conference participants.

Twenty years ago this month, Ben Wattenberg—speaking of the public's rediscovery of a number of seemingly forgotten, but clearly good ideas—was quoted in an article in the old Washington Star as saying:

"There is nothing so powerful as a good idea whose time has come again."

That was in 1979, but it describes nuclear energy today.

A good idea whose time has come again.

As we approach the new century, we need to capture the power of that idea to ensure that nuclear energy—and its many benefits—never fade into the background of the American consciousness.

How do we do that? How do we capture our industry's future?

I have often said that the move to a competitive electricity market is one of the best things that could happen to our industry.

Why? Because competition challenges us to rethink and reevaluate where we've been…where we are…and where we're going. Competition leads us on a never-ending journey of innovation and reappraisal. And as a result of that rethinking, it is now clear that nuclear energy helps fulfill a diverse array of important policy objectives—in addition to providing safe, reliable and economical electricity.

By way of example, nuclear plants in the United States help meet our national environmental objectives…they help maintain a diversified energy portfolio in this country…and by consuming surplus weapons material, the plants help further international nonproliferation efforts.

To help move us forward on that journey, the industry last year published a comprehensive and well-thought-out approach to the future—Nuclear Energy: 2000 and Beyond, A Strategic Direction For Nuclear Energy in the 21st Century . That seminal document charted new compass points and new headings for the future.

It provided a coherent strategy for achieving our goals, rooted in the day-to-day realities of our industry.

It was used by EPRI and INPO to help coordinate industrywide initiatives.

It was broadly circulated…and provided upon request to member companies, policymakers, the financial community and the public—on the order of 2,500 copies per month—to make clear that the industry had a well-thought-out strategy for full optimization of nuclear energy.

And it was used widely in policy discussions internationally, like the European Nuclear Society's meeting in Nice, France … It was even translated into Japanese.

The industry just completed a 1999 update of the Strategic Direction .

While much has changed in our industry over the past year, the essential direction we need to travel remains the same.

This year's update notes that the industry is committed to creating the objective conditions necessary for nuclear energy to prosper and expand in the United States and around the world. In other words, to create an environment in which nuclear energy will be the energy of choice in the next millennium.

The compass points lead us toward that destination…

But they should not be viewed as isolated and static elements…

Rather, it is the mutually reinforcing and dynamic interplay of the compass points that push our industry forward.

Advances in one area…support advances in others…which in turn support the pursuit of our strategy along an ever broader front.

It is fitting that we convene the Nuclear Energy Assembly each year…It reflects boldly how our plan…our strategy…is playing out.

We can witness first-hand, the dynamic interplay at work.

This is one of the most gratifying aspects of being part of NEI, seeing how our industry converges in thought and in deed.

And I'm not just voicing empty optimism…I'm continually impressed…and proud of this industry…and enthusiastic about the opportunities that lie ahead.

Take our industry's remarkable performance record.

It is the foundation on which we've been able to build our progress.

Record capacity factors…an industry mean of zero unplanned scrams…record low numbers of transients and operational events…to cite but a few examples.

This exemplary performance, as well as increased policymaker interest in nuclear energy and in the regulatory process …provided the NRC with the necessary support to accelerate much-needed regulatory reform.

Today, the commission appears to be on the way toward meaningful change. In fact, in less than two weeks, the industry and the NRC will launch a six-month pilot project to test the NRC's new, more objective oversight process at nine plants.

Then will come the real industry challenge… institutionalizing risk-informed, performance-based regulations industrywide, and bringing regulatory reform to fruition.

But allow me to reflect, if you will, on why regulatory change is so significant.

It is a critical component in the new foundation we are building for our industry's future

...for license renewal

...for building the next generation of plants

...for sustaining a vibrant nuclear energy marketplace

...and for leading us to an era where nuclear energy gains real recognition for the environmental benefits it provides.

Again, the dynamic interplay of the compass points laid out in our Strategic Direction is at work in laying this foundation.

Already, we are benefiting from the progress we've made, but still much work needs to be done.

Our efforts have produced three new certified new plant designs for the next generation. These designs were conceived, however, in a cost-of-service environment, and the rules are changing.

Our challenge now is to revisit these designs—with an eye on the competitive marketplace—to further contain their operating expenses ... to incorporate risk analyses into the designs ... to reduce their capital costs ... and to build them in a timely manner.

And we must continually examine how risk-informed regulations will apply to these new plants.

And because we've successfully laid the groundwork, we have a license renewal process that is now being tested at two plants, with seven other companies publicly expressing an interest in renewing the licenses of their units.

Now ... thanks to the many years we've dedicated to develop an efficient license renewal process ... we're in a position today to talk seriously about a new generation of advanced plants.

And we would be unable to look ahead to a new generation of nuclear plants without the remarkable economic performance by individual companies . . . and by the industry as a whole. Competition has made it evident that a fully depreciated, well-run nuclear power plant is a money-maker—for those willing to rise to the challenge.

And Wall Street knows it.

And it is the dynamic interplay at work in our industry that is raising new awareness of nuclear energy's environmental contributions ... and the real economic value associated with it.

We're now gaining greater realization that nuclear energy has indeed been a critical . . . but silent . . . partner in clean air compliance in this country. And policymakers are recognizing this.

Let me emphasize a key point about U.S. air emissions restrictions and requirements developed over the past two decades: They are based on the assumption that an average of 30 percent of the country's electricity supply would be completely emission-free. And they assume that emission-free nuclear plants will continue to operate.

Here's the point: Nuclear power plants are vital if the country is to achieve its existing emission requirements.

What this means is that avoiding emissions is just as important as reducing them. And policymakers know it.

For example, Senator Frank Murkowski... together with seven other senators... introduced a bill last month that would encourage voluntary reductions ... and the continued avoidance of... greenhouse emissions. As an alternative to the Kyoto Protocol, the bill fosters development of emission-free technologies. And it would clearly favor emission-free sources such as nuclear energy.

And NEI is providing support for other such positions.

NEI is analyzing the complete "life-cycle" of nuclear generation, as it relates to the country's fuel mix.

This analysis is taking into account all activities involved in producing power from a particular source that could emit pollutants.

Such analysis will help our country select its environmentally friendly energy sources more prudently and provide a scientific basis for what we call "green" power or low-impact generation.

Clearly, nuclear energy...as an emission-free energy source... holds great promise with such analysis.

And the environmental benefits for nuclear energy don't stop there. With the right policy process . . . one that provides economic credits for nuclear energy's environmental compliance...our country can "monetize" nuclear energy's value in that area.

Clearly, the possibilities for nuclear energy are remarkable. And by following these guideposts, I envision a nuclear energy designing its own future.

I see stiff competition to buy and build nuclear power plants.

I see investors of all stripes eager to support those investments.

And I see a strong, efficient regulator whose commitment to risk-informed, performance-based assessments reinforces our industry's unwavering safety-focus.

I see the United States reasserting its worldwide leadership in innovative nuclear technologies.

And I envision the day when the developing world not only benefits from nuclear technology, but is able to power factories and light the night with electricity generated by nuclear energy.

Truly, as I noted earlier, nuclear energy is "a good idea whose time has come again."

Yet as we pursue the course we've set for ourselves, we must be mindful of our immediate tasks at hand.

Nuclear energy is where it is today because of your leadership and determination.

But if we are to take our industry to the next level, we must avoid the complacency that success often fosters.

To that end, I challenge you to reach out beyond your traditional constituencies to raise awareness of nuclear energy's promise.

I urge you to reach out to your own national, state and local policymakers and decision-makers so that they are aware of nuclear energy's many contributions and potential benefits.

They must truly understand the fairness issues at play, the economic issues at hand and real need to preserve and expand nuclear energy to meet our environmental goals.

I urge you to keep your state and local decision-makers apprised of advances in regulatory reform for this industry . . . and to reassure them that the increased focus on safety through risk-informed regulation is good for your customers and good for our country.

I urge you to remain engaged with your nuclear workforce... and reinvigorate their dedication to the highest standards of safety and excellence in operations.

Without that, our well-crafted strategy and hard-won progress is of little value. Complacency is... and always will be ... our greatest enemy.

And, finally, I urge you to stay the course and continue your impressive pursuit of the strategy we've laid out before us.

We are inescapably reliant on one another to make wise, sound and innovative decisions that keep our industry whole and on the road to expansion.

For all intents and purposes, you and your companies are NEI. Our course together is set.

I ... together with the entire NEI staff...am honored to provide the leadership as our industry moves into the new millennium.

Together, we will capture our industry's future.

Thank you.