Executive Summary
Exelon Generation is the largest nuclear power generator in the United States, owning and operating approximately 20 % of the nuclear capacity in the country. We have evaluated various technologies and options for future electricity generation and have determined that small, modular nuclear power plants could provide a competitive advantage in the deregulated wholesale power marketplace while at the same time, make a significant contribution to the reduction of greenhouse gases and air pollution attributed to electric generation. As a result, we have made an investment in a joint venture to study the feasibility of an advanced nuclear reactor design called the Pebble Bed Modular Reactor. This technology is currently being developed in the Republic of South Africa and we are investigating the feasibility of licensing power plants based on this technology here in the United States.

The key advantages of this technology appear to be increased nuclear safety, minimal environmental impact, low capital and operating costs, stable fuel costs, short construction time, and the ability to add incremental capacity to regional markets to economically match load growth. We believe that these advantages are clearly both in our competitive interests as well as the national interest.

In order to move forward with the implementation of this technology, additional design and licensing work is required as well as some key regulatory changes. In particular, there are several non-technical regulations that require revision because the concept of merchant nuclear power in a de-regulated marketplace was not contemplated when they were initially written. Legislation to allow the Nuclear Regulatory Commission to make some of these changes may be necessary. Also, some form of cost-sharing between the Department of Energy and the private sector may be needed to defray the high licensing costs expected with the "first time" utilization of the 10 CFR Part 52 licensing process and the cost of developing an advanced reactor licensing framework to be used by the Nuclear Regulatory Commission