Bonbright Conference Current Environmental Issues Ronny Just Environmental Issues Manager

What is the Largest Environmental Challenge Facing Georgia?

Population Growth

25 Years From Now

Georgia Power’s Environmental Commitment Past & Projected SO2 Bowen 3&4 Scrubbers Wansley 1 & 2 Scrubbers Clean Air Interstate Rule, Clean Air Mercury Rule, PM2.5 & 8-Hr. Ozone Nonattainment Bowen 1 & 2 Scrubbers TBD NOx Hammond 1-4 Scrubber TBD Low Sulfur Coal TBD Low NOx Burners on Larger Boilers TBD SCR’s @ Bowen, Wansley & Hammond 4 TBD Fuel Switching @ Scherer TBD Low NOx Burners @ Branch TBD TBD TBD TBD '90 '95 '00 '03 $1 Billion Spent >$4 Billion Potentially

Plant Bowen SO2 Scrubbers Scrubber’s reduce sulfur dioxide emissions

So What Does That Really Mean? 9/18/2018 2:23 AM So What Does That Really Mean? Clean Air Interstate Rule Clean Air Mercury Rule Georgia Multipollutant Rule Nonattainment Area Requirements Clean Air Visibility Rule While the massive size of generating units drives the complexity of some compliance strategies, such as with scrubbers, in some instances compliance is made more complex by the small size of the matter being emitted, as in the case of mercury. Analogy published by the Dept. of Energy: If you fill a space the size of the GA Dome with ping pong balls that represented stack emissions, only ~ 30 of the balls would represent the total amount of mercury emitted from these plants. However, regardless of how large or small the limits, we have solid track record of maintaining compliance with regulations, and we will continue to focus on compliance. Draft

The Greenhouse Effect EARTH Some solar radiation is reflected Some of infrared radiation re-emitted in all directions by greenhouse gas. The effect is warming of the Earth’s surface and the lower atmosphere. Solar radiation ATMOSPHERE Most radiation is absorbed Infrared radiation is emitted from the Earth’s surface.

9/18/2018 2:23 AM Climate Change Policy “Climate change is a challenging issue for our world and our nation. Southern Company is committed to a leadership role in finding solutions that make technological, environmental, and economic sense. The focus of this effort must be on developing and deploying technologies that reduce greenhouse gases while making sure that electricity remains reliable and affordable.” While climate change is a complex, global issue…must be able to talk about it in simple terms. Company has developed a statement describing our position on the issue. It says we take it seriously and we’re doing something about it. Dealing with climate change won’t be easy; need to deal with it in a way that does not negatively impact our customers. Key Points: Committed to finding solutions that make technological, environmental and economic sense. Technology development best approach; our company is a leader in developing technologies. Draft

What is Southern Company Doing about Climate Change? 9/18/2018 2:23 AM Shift to Gas (Lower CO2 Emissions) Install Non-emitting Generation Coal Gasification Sequester CO2 Capture & Store Research & Development To address Climate Change, we believe the answer is to develop and deploy technologies that can reduce greenhouse gases cost-effectively and on a utility scale. Company is leader in developing technologies that are needed. We’ve made some strides and we’ve got an awful lot of research to do. Technology is not there yet…going to take time, money, and resources. Technology must be available before we can talk about imposing mandatory caps on emissions; without the technologies, caps cannot be met. Must not harm the economy or our customers - who rely on available, reliable, and affordable electricity. Transition to Environmental Landscape -- Long Term, Global Solutions -- Draft

Retail and Generation Energy Conservation and Efficiency Improvements Climate Change Technology Development Timeline Renewables ICGG TRIG Orlando FutureGen CCS Commercial? 2005 2010 2015 2020 2025 CCS Demo Projects New Nuclear Retail and Generation Energy Conservation and Efficiency Improvements

Key Takeaways Improving environmental performance 9/18/2018 2:23 AM Key Takeaways Improving environmental performance Growth is good & it presents challenges Committed to finding solutions I want you to leave here today with a few key points to remember. Great environmental performance - we have never had a better story to tell when it comes to meeting the environmental challenges related to Georgia’s expansion. We are dedicated to finding the right solutions going forward. Committed to Compliance – proven track record that will continue. Growth – brings both opportunities & challenges. Face Growing External Challenges – Our collective voices at business meetings and social events are needed to tell the GPC story. Green Strategy - serious about the environment and looking for “green ways” to operate our business and to address external issues Draft

9/18/2018 2:23 AM Questions Draft