1. Georgia Power and Energy Planning Julie Paul Environmental Affairs Georgia Power Company January 14, 2013

2. Today’s Discussion  Introduction to GPC and Energy Policy  Demand for Electricity and Need of Fuel Diversity  Emissions Reductions

3. Who we are  Largest of four Southern Company electric utilities  $7.2 billion in revenue  2.3M+ customers  9,000 employees  13,000 miles of transmission lines  61,000 miles of distribution lines  Rates below the national average  High customer satisfaction

4. 2011 Georgia Power Generation

5. Generation Mixes in the U.S.

13. Growing Demand for Electricity From 2000-2030, Georgia’s population is projected to increase by 4 million residents. By 2030, 40% of the population of the United States will live in the South. Electrical demand is projected to grow 30% during next 15 years! US Census Bureau

14.  Policy “Purpose” – Influence Decisions  What Decisions? – Electricity Segment – New Generation – Drive Markets – Drive Economic Development  Whose Decisions? – Utility – Regulator – Consumer Energy Policy Issues

15.  Cost  Reliability  Funding  Research  Efficiency  Sustainability  Conservation  Environment Energy Policy Issues Elements of a Policy:  National Security  Implementation Incentives Regulations Markets  Demand Growth  Economy  Equitable

16.  White House  Department of Energy  EPA  Georgia PSC  Georgia Environmental Protection Division  Georgia Power  Electric Membership Co-Ops  Environmental Organizations  Consumers Energy Policy Issues Who Sets “Policy”

17.  White House  Department of Energy  EPA  Georgia PSC  Georgia Environmental Protection Division  Georgia Power  Electric Membership Co-Ops  Environmental Organizations  Consumers Energy Policy Issues Who Sets “Policy” Different Priorities Lead to Different Policies = Different Decisions

18. Environmental Strategy Achieving the right balance….. Energy Economy Environment

19. U.S. Electricity Cost by State Electricity Prices by State - National Electric Rate Information by Copyright © 2011 ElectricChoice.com. All rights reserved ElectricChoice.com U.S average residential retail price of electricity was 11.53 cents per kilowatt-hour in 2010

20. Coal Control Technologies

21. Improving Air Quality Scrubbers (SO 2 and Hg) Currently: 13 Selective Catalytic Reduction (NOx) Currently: 16 Sorbent Injection & Baghouse (Hg) Currently: 4 Electrostatic Precipitators (PM) Currently: 33 Plant Kraft Plant McDonough Plant McIntosh Plant McManus Plant Mitchell

22. Non-fossil: Nuclear Plant Vogtle

23. Fewer Components Reduce Plant Costs 45% Less Seismic Building Volume 50% Fewer Valves 35% Fewer Pumps 80% Less Pipe 70% Less Cable

24. Non-Fossil: Biomass

25. Generation Efficiency Plant McDonough CC  Replacing 540 megawatts of coal- fired generation with more than 2,500 megawatts of natural gas- generation (will supply 625,000 homes)  Creates significant emissions reductions –NO x by 85% –SO 2 by 99% –Mercury by 100% –CO 2 rate by 50%

26.  Promoting energy efficiency –Distributed over 330,000 CFLs between 2006-2009 –Rebates for Energy Star appliances –Provide free in home energy audits –Recycle old refrigerators and freezers

27. Renewables

28.  Customers may sell some or all of generated electricity to GPC  Small generators (<100kW) under RNR-7 and SP-1  Large customers (<80MW) as a QF Solar Demonstration Project

29. Green Energy & Solar Initiative  Purchasing Green Energy –$3.50 per block, biomass –$5.00 per block, at least 50% solar –Special Event Purchase Option  Advanced Solar Initiative –Proposed program that encourages solar development –Supply agreements with independent developers and customers –GPC does not earn a profit, but acts as a technology facilitator –Program debut in early 2013

31. A Matter of Scale Coal/Nuclear Hydro Solar Wind Biomass 1 Plant ~ 1000 MW 1 Turbine ~ 3 MW 1 Installation ~ 50 MW 1 Dam ~ 45 MW Georgia Power Peak Demand = 18,360 MW (8/10/07) 1 Unit ~ 100 MW VS. 1 MW = Energy Needed To Power 250 Homes

32. Emission Trends

33. Greenhouse Gases  Carbon Dioxide  Water vapor  Methane  Nitrous oxide  Chlorofluorocarbons (HFCs and PFCs)  Sulfur hexafluoride (SF 6 ) CO 2 has risen from 280 ppm to 380 ppm since the industrial revolution began.

34. U.S. GHG Emissions by Sector Source: U.S. Environmental Protection Agency, Total U.S. Greenhouse Gas Emissions by Economic Sector in 2010

35. How to Cut CO 2 Cut Fossil Fuel Usage  Use Non-fossil Nuclear Renewables  Use less energy Efficiency & DSM Increase Cost  Generation Efficiency Combined Cycle IGCC SmartGrid Develop CO 2 Management Technologies  No Current Technology  Capture & Sequestration Estimated Availability ~ 2025 Develop Offset Programs

36. Climate Change Solutions  CO2 Capture &Storage –The National Carbon Capture Center Managed by Southern Company Collaboration with DOE, scientists, technology developers, industry, university –Kemper County Integrated Gas Combined Cycle Capture 65% of CO2 to be sold for enhanced oil recovery Only IGCC plant in U.S. to capture and store CO2 during commercial operation –Start-to-Finish Carbon Capture & Storage Alabama Power, Southern Company, DOE, Mitsubishi, EPRI Largest in the world connected to a pulverized coal-fired generating plant CO2 supplied to DOE and permanently stored in a deep geological formation

37. GPC Generation Mix (MWh) 2020 ?

38. Summary  Growing population increases electrical demand  Affordable, reliable service by maintaining diverse fuel portfolio and promoting energy efficiency  Addition of pollution control equipment to minimize emissions

39. Georgia Leads the Nation