1. WEST VIRGINIA DIVISION OF ENERGY

2. West Virginia Coal Association Mining Symposium January 28, 2016

3. WEST VIRGINIA DIVISION OF ENERGY Consensus Forecast for WV Coal Production (million short tons), 2035

4. WEST VIRGINIA DIVISION OF ENERGY Coal to the WV Electric Power Sector January – July 2015 Source: EIA

5. WEST VIRGINIA DIVISION OF ENERGY Coal was responsible for 39% of electricity generated in the U.S. during 2014, more than any other source of electricity. Coal is projected to provide 37.2% of U.S. electricity in 2015 and 36.6% in 2016. Natural gas is projected to generate 29.1% of U.S. electricity in 2015 and 29.5% in 2016. Coal is projected to remain the dominant fuel for electricity generation in the U.S. through 2030. As of January 2015, there were 1,236 individual coal-fueled electric generating units representing approximately 300,000 MW of electric generating capacity. ELECTRICTY SOURCE

6. WEST VIRGINIA DIVISION OF ENERGY Emissions per KWh of SO2, NOx, and PM from coal-fueled power plants have been reduced by approximately 90% over the period 1970-2014. Approximately $118 billion has been invested through 2013 to achieve these emission controls between 2014-2016. Over 90% of U.S. coal-fueled electric generating capacity installed clean coal technologies and other advanced emission controls to reduce emissions of SO2, NOx, PM, mercury, acid gases, and non- mercury metals. CLEANER COAL

8. WEST VIRGINIA DIVISION OF ENERGY Coal is used to generate electricity in 48 states. Only Rhode Island (mostly natural gas) and Vermont (mostly nuclear) do not generate any electricity from coal. Coal provides at least half the electricity in 18 states and at least one quarter of the electricity in 30 states. During 2015, the ten states that generated the most electricity from coal were: Texas, Ohio, Indiana, Illinois, Kentucky, West Virginia, Missouri, Pennsylvania, Michigan, and Florida. U.S. COAL ELECTRIC GENERATION

9. Global Electricity Demand Source: Exxon

10. WEST VIRGINIA DIVISION OF ENERGY According to EIA, the U.S. has the largest recoverable coal reserves in the world. The U.S. is capable of meeting domestic demand for coal for roughly 280 years (260 billion tons total/925 million tons of coal consumed in 2013). 93% of the coal consumed in the U.S. is used to generate electricity Coal is mined in 25 states and is responsible for over 700,000 U.S. jobs. Wyoming is the largest coal-producing state, followed by West Virginia, Kentucky, Pennsylvania, and Illinois. According to EIA, domestic coal production was 917 million tons in 2014 and projected to fall slightly to 897 millions tons in 2015 and 894 million tons in 2016. U.S. COAL

12. WEST VIRGINIA DIVISION OF ENERGY For 2013, U.S. coal demand represented about 12% of total global coal consumption. Asia consumes over six times as much coal as the U.S. and represents 70 percent of global consumption. By 2035, global coal consumption is projected to increase by about 40 percent, with non-OECD Asia’s demand growing by 58%. GLOBAL COAL CONSUMPTION

14. WEST VIRGINIA DIVISION OF ENERGY World Energy Consumption Source: EIA International Energy Outlook

15. Source: Exxon

16. WEST VIRGINIA DIVISION OF ENERGY West Virginia Power Plant Closures PlantMW Kammer714 Kanawha River 440 Phillip Sporn 1108 PlantMW Albright278 Rivesville110 Willow Island 213 All closed 5/31/2015All closed 9/1/2012

17. WEST VIRGINIA DIVISION OF ENERGY West Virginia Power Plant Closures Total West Virginia Coal Generation is 12,225 MW Closures are 23% of capacity PJM Region – Closures of 24,000 MW predicted

18. WEST VIRGINIA DIVISION OF ENERGY Clean Power Plan June 2, 2014 – Clean Power Plan proposed by EPA Goal – Reduced carbon emissions from the power sector by 32% from 2005 levels by 2030 EPA’s approach set state goals to cut pollution per MWh of electricity generated West Virginia’s current CO2 emissions is a reduction of 29% on a mass based approach. West Virginia’s current emissions rate is 2064 lbs. of CO2 per MWh. West Virginia’s assigned goal is 1305 lbs of CO2 per MWh by 2030, which is a 36% reduction EPA claims states are given flexibility to meet the reduction goals

19. WEST VIRGINIA DIVISION OF ENERGY Building Blocks to achieve reduced CO2 per MWh

20. WEST VIRGINIA DIVISION OF ENERGY Energy Ventures Analysis West Virginia Predictions Current CostFuture CostPercentage Change Average Annual Electric Bill $1,273 / year$1,609 / year+26% Average Annual Gas Bill $687 / year$1,101 / year+60% Industrial Electric Rates 6.3¢ per kwh8.5¢ per kwh+34%