New Clean Energy Proposal

To: Alternative Energy Corporation

From: Cameron Sears, Management Team
Date: December 1, 2014
RE: Alternative Energy Proposal

Purpose
The management team here at Alternative Energy Corp. proposes that we as a company need to
break into production of alternative energies by creating new nuclear, wind, and solar powered
plants right here in St. Louis. Along with the reduction of our use of coal fired plants we can
meet the growing demand of clean energy. The conditions and circumstances in which utility
companies must make decisions about how to meet customers future electric energy needs are
ever-changing. Our decisions are influenced by the costs and availability of different resource
alternatives and by conditions in energy markets, including changes in environmental
regulations, commodity prices, technology advancements, financial markets, and the economy at
large. Economic growth has slowed in recent years, and future demand will continue to grow at a
slower pace due in large part to increases in energy efficiency. As a result, the need for new
sources of generation is being influenced more by the need to replace existing sources of
generation as they reach the end of their useful lives and less by the need to serve growing
demand.
Our management team here at Alternative Energy Corp. is always looking for new ways to
improve customer satisfaction, service, and quality of energy received. We believe that it is
important to update the way we produce energy by coming up with new and exciting ways of its
production. We also feel as though all of the alternative energy solutions are important to the
reduction of our global footprint.

Climate Change and Global Warming

Serious Problem

Could be a Serious Problem

More Reseach Needed

Not a Problem

Alternative Energy

Alternatives Needed

No Need

Our customers also share the same beliefs. As shown in the Tables above, our customers were
surveyed across Missouri and 96.30% of those surveyed believe that there is a need for
alternative energy sources right now. Nearly 60% also believe that climate change and global
warming is already a serious issue and should be dealt with immediately. As our customers have
stated it is time for action to be taken and alternative solutions to be used.
Nuclear Alternatives
Nuclear power is capable of providing around-the-clock generation on a continuous basis at a
competitive cost. Because a high percentage of the costs of nuclear generation are fixed, it is not
as vulnerable to changes in fuel or other variable costs. At the same time, new nuclear power
generation requires large amounts of capital investment and many safety measures, so it is
important to manage the associated financing and safety risks. For Alternative Energy Co.,
nuclear power continues to represent an important option to assess as we consider the
implications of greenhouse gas regulations and as we look to the longer-term transition to
alternative energy solutions, as well as the associated economic development opportunities for
Missouri. Opening only one Nuclear Facility alone will reduce our dependence on coal by 10%.
The future implications of opening more could eliminate our need for these fossil fuels.
Safety
However our management team does realize the importance of safety for our consumers because
40% believe Nuclear Power to be unsafe. To achieve optimum safety, our nuclear plants operate
using a defensive approach, with multiple safety systems supplementing the natural features of
the reactor core. Key aspects of our approach are:

high-quality design & construction,

equipment which prevents operational disturbances or human failures and errors
developing into problems,
comprehensive monitoring and regular testing to detect equipment or operator failures,
redundant and diverse systems to control damage to the fuel and prevent significant
radioactive releases,
Provision to confine the effects of severe fuel damage (or any other problem) to the plant
itself.

These can be summed up as: Prevention, Monitoring, and Action (to mitigate consequences
of failures). The safety provisions include a series of physical barriers between the

radioactive reactor core and the environment, the provision of multiple safety systems, each
with backup and designed to accommodate human error. Safety systems account for about
one quarter of the capital cost of such reactors. Cooling Systems to remove excess heat and
containment of excess heat.
Traditional reactor safety systems are 'active' in the sense that they involve electrical or
mechanical operation on command. Our engineered systems will operate passively, i.e.
pressure relief valves. Both require parallel redundant systems. Inherent or full passive safety
design depends only on physical phenomena such as convection, gravity or resistance to high
temperatures, not on functioning of engineered components. All reactors have some elements
of inherent safety as mentioned above, but in some recent designs the passive or inherent
features substitute for active systems in cooling etc. Such a design would have averted the
Fukushima accident, where loss of electrical power resulted is loss of cooling function.
The basis of design assumes a threat where due to accident or malign intent, terrorism, there
is core melting and a breach of containment. This double possibility has been well studied
and provides the basis of exclusion zones and contingency plans.
Nuclear power plants are designed with sensors to shut them down automatically in an
earthquake, and this is a vital consideration in many parts of the world. With all these safety
systems and contingency plans in place our customers should be at ease with our companys
ability to keep them safe and provide them clean energy.
Case Study
Nuclear power has provided electricity around the world for decades, but it has been
especially successful in countries like France, where other energy sources are scarce. In fact,
when asked why the country has so much nuclear power, the French have been known to
answer: No oil, no gas, no coal, no choice. France depends on nuclear power for 79% of its
electricity generation and has more than 50 nuclear power plants. In comparison, nuclear
provides less than 20% of the United States power. France also has the same safety concerns
as the U.S but have only had one accident in their nuclear programs history. So if France can
switch their dependence to something else why shouldnt we?
Wind and Solar
Wind power continues to be an attractive resource option, not only for meeting requirements
of government regulation, but also as a low-cost source of large amounts of emission-free
energy. Alternative Energy Corp. has identified a number of areas within Missouri that are
conducive to cost-effective wind power. The key disadvantage of wind is its intermittent
nature as it only generates when the wind is blowing. As a result, it cannot be relied upon
significantly for generating power at times of peak demand. It allows utilities to count
approximately 14% of the output capability of wind to meet peak demand requirements for
reliability. Even so, wind will provide large volumes of lower-cost energy that can help to
replace energy production lost from the retirement of our coal resources.
Investments in new solar generation by Alternative Energy Corp. will allow us to bring the
benefits of solar energy to all of our customers at an overall cost that is lower than that for
individual customers to install solar panels themselves. We have the ability to serve a large

portion of our customers with this energy by creating a massive solar facility that would
generate nearly 10 MW of energy.
Timetable
Our timeline will be approximately 1 year from start to finish on our Nuclear, Wind, and
Solar facilities. Once we have secured a 40 acre tract of land we can begin the construction.
During construction of the Nuclear Facility we will receive a $3 billion grant within 45 days
of completion. After these three facilities have been built it will take only 20 days to become
fully operational.
Costs
Our anticipated cost of construction, labor, land etc. for this project is approximately $6
billion. With the largest portion covered by the Nuclear plant at $3 billion. The 40 acres will
cost around $335,000 in Jefferson County. The cost of our wind and solar facilities combine
for total of $2.665 billion. Even though our cost to produce this facility is very high the
environmental benefit, and cash benefit will also increase. With over 6 million people living
in Missouri and our average citizen accruing around $75 per month in electricity we can
make our money back in approximately 1 year. This can also be beneficial because with so
much clean energy being sourced to our consumer we are eligible for grants that can alleviate
our debt pressures. We are eligible for a $3 billion dollar grant to fund half of our facilitys
needs. Decreasing the number of years it will take to pay for it all too approximately 6
months. With approximately $450 million in monthly income the benefits far outweigh the
costs in production of these facilities.
Conclusion
Based on the aforementioned reasons listed above we believe that it is a great decision to
begin construction of these facilities immediately. Our customers will be more satisfied with
the additions of these alternatives as they are safe, will lower the current energy price, and
are a greener choice than fossil fuels. With our strategy to transition our resource portfolio to
one that is cleaner and more fuel efficient, it is important that we do so in a responsible
fashion and fully consider the benefits that each of these options provides, while balancing
and managing the ever-changing energy and economic environment in which we operate.
With all this being said we believe that it is very important as a company to listen to our
customers and also our natural environment. So to ensure our future existence in the energy
market we believe that the production of these alternative power plants allows us this. Our
customers look forward to the future and so do we!

Strategic Plan
As member of the Management Team here at Alternative Energy Corp. I feel it is very important
for our company to focus on the needs of our customers and the environment. With a cleaner
energy program we can assure ourselves a place for years to come. Building these facilities in a
timely manner and on budget is also a key factor in our success.