5 Innovation We foster a culture of imagination— enabling us to create new ideas and put them into action to drive growth. For decades, nuclear energy has been an efficient but challenging source of alternative energy. To help meet today’s increasing demand for energy stability and environmental stewardship, Energy has developed a next-generation nuclear plant design that is safe for communities, and sound for investors. The core innovation of the Economic Simplified Boiling Water Reactor (ESBWR) lies in a 32 ge 2006 annual report simplified, modular design that will enable signifi cantly shorter installations, increase safety and deliver an outstanding economic return with zero greenhouse gas emissions during operation. Together with our investment in coal gasifi cation, this could gen- erate $10–$20 billion in revenues over the next 10 years.

6 Growth Leaders We develop leaders with a love of learning, a passion for building teams and a desire to grow. ge 2006 annual report 33 Led by President and CEO John Krenicki, Energy generated earnings of $3 billion in 2006, an increase of 13%. With innovative products such as the Jenbacher gas engine and LMS100 gas turbine, Energy is generating new growth through new product lines. With greater customer focus through Net Promoter Score and Lean workouts, Energy is improving customer service levels and reducing equipment repair times. Energy is growing globally to meet the unprecedented demand for energy with record orders for wind turbines and a resurgence in gas turbine orders. The power of Growth as a Process is exponentially multiplied when executed by teams. The Energy team is a great example. Pictured here are John Krenicki and his leadership team in action in Schenectady, New York during one of their monthly global operations reviews.