Legislative Update November 3, 2011 GMMSCA Fall Conference

Legislative Successes in Georgia  Transmission Line PlanningPASSED  2002 EMC Gas MarketersPASSED  2005 Unclaimed Capital CreditsPASSED  2006Eminent Domain Powers PRESERVED  2007 Metals Theft Legislation (Part I) PASSED  CATV Pole Attachment Legislation- BLOCKED  2009 Metals Theft Legislation (Part II)PASSED  2010 CATV Pole Attachment Legislation- BLOCKED AGAIN  2011 PAC legislationPASSED  2011Open meetings laws applied to EMC Board of DirectorsBLOCKED

Legislative Priorities 1.Securing the necessary generation resources to meet future demand in the era of climate change Keep elected officials and opinion leaders informed about key factors influencing future power supply decision-making 2.Preserve member-owner governance in electric cooperative business model Keeping elected officials and opinion leaders regularly informed is best defense against threats of expanded PSC regulation, or other government interference.

Keys to Legislative Success Continue to be a leader in providing reliable and affordable electricity with superior customer service Continue being an active community supporter AND leader throughout service area Make sure you know your legislators and local officials, and vice-versa Every EMC employee and director in Georgia plays a vital role for any legislative success

Federal Energy Issues H.R. 2401: The T.R.A.I.N Act – Transparency in Regulatory Analysis of Impacts on the Nation Act of 2011 – requires the feds to consider the broad implications of new EPA regulations – Includes impacts to consumers, businesses, jobs, and the overall economy – Passed House 249 to 169 H.R. 2273: The Coal Ash Bill – ensures the safe management & disposal of coal ash, while preserving jobs and encouraging beneficial reuse – Bi-partisan approach & strikes balance between environmental protection and protecting jobs &economy – Passed House 267 to 144; currently in Senate

11/12/10 Environmental Regulatory Timeline for the Utility Industry Ozone PM 2.5 '08'09'10 '11'12'13 '14 '15 '16 '17 Beginning CAIR Phase I Seasonal NOx Cap EGU HAPs MACT proposed rule Beginning CAIR Phase II Seasonal NOx Cap Revised Ozone NAAQS Begin CAIR Phase I Annual SO 2 Cap Beginning CAIR Phase II Annual SO 2 & NOx Caps Next PM- 2.5 NAAQS Revision Next Ozone NAAQS Revision SO 2 Primary NAAQS SO 2 /NO 2 Secondary NAAQS NO 2 Primary NAAQS SO 2 /NO 2 New PM-2.5 NAAQS Designations CAMR & Delisting Rule vacated Hg/HAPS Final EPA Nonattainment Designations PM-2.5 SIPs due (‘06) Proposed Transport Rule I EGU HAPS MACT final rule expected CAIR Vacated EGU HAPs MACT Compliance 3 yrs after final rule CAIR Remanded CAIR Begin CAIR Phase I Annual NOx Cap PM-2.5 SIPs due (‘97) 316(b) proposed rule expected 316(b) final rule expected 316(b) Compliance 3-4 yrs after final rule Effluent Guidelines proposed rule expected Water Effluent Guidelines Final rule expected Effluent Guidelines Compliance 3-5 yrs after final rule Begin Compliance Requirements under Final CCB Rule (ground water monitoring, double monitors, closure, dry ash conversion) Ash Proposed Rule for CCBs Management Final Rule for CCBs Mgmt Final Transport Rule I Proposed Transport Rule II Compliance with CAIR Replacement Rule CO 2 CO 2 Regulation Reconsidered Ozone NAAQS Industrial Boiler MACT Proposal Industrial Boiler MACT Final Rule Industrial Boiler MACT Compliance

State Government Issues HB 316: Open Meetings Laws applied to EMC Board of Directors Meetings SB160: PAC legislation Solar/Renewable Energy & the Territorial Act Other issues: tax reform, Competitiveness Initiative, Immigration, ethics reform Ongoing education of elected officials and policy makers

THANKS… for your support of Georgia EMC and for the chance to participate in your program! Questions?