1. Virginia’s Energy Region Virginia Coalfield Economic Development Authority Joint Meeting of the Commission on Electric Utility Restructuring and the Coal and Energy Commission September 8, 2004

2. Virginia’s Energy Region VIRGINIA COALFIELD ECONOMIC DEVELOPMENT AUTHORITY Employment by Major Industry—12/31/91vs. 12/31/01 Employment Sectors Virginia Employment Commission: 9,025 Jobs Gained; 6,053 Mining Jobs Lost; 779 Net Jobs Gained in these Sectors.

3. Virginia’s Energy Region Sector Gains Services—3,819 jobs gained (41% increase) Government—1,848 jobs gained (15% increase) Trade—1,713 jobs gained (13% increase)

4. Virginia’s Energy Region Sector Losses Mining—6,053 jobs lost (52% decrease) Manufacturing—2,026 jobs lost (28% decrease)

5. Virginia’s Energy Region Mining Industry Transition Coal production and employment: 19912001 Production (thousand short tons) 42,33632,601 Production employment9,7565,261 Production wages (in thousands of dollars) 268,177194,741 Average productivity (tons per worker hour) 2.53.33 Source: Virginia Energy Patterns and Trends website, Virginia DMME, Division of Mines

6. Virginia’s Energy Region Mining Industry Transition Largest employers 19912003 Island Creek Coal Company (963 employed) Paramont Coal Company Virginia, LLC (670 employed) Clinchfield Coal Company (834 employed) Consolidation Coal Company (391 employed) Westmoreland Coal Company (556 employed) A&G Coal Corporation (354 employed)

7. Virginia’s Energy Region Virginia Coal Production, 1814- 1999

8. Virginia’s Energy Region Coal Industry Employment YearAnnual EmploymentAnnual Average Weekly Wage 20035,288$930 20025,737$874 20016,236$874 20005,989$848 19995,985$806 19986,832$803 19977,747$771 19967,413$772 19958,139$753 19949,032$744 19939,964$699 199210,543$720 199111,192$677 199012,260$647 198912,770No data 198812,707No data Source: Virginia Employment Commission ES-202 Annual Average Weekly Wage by Size Code and Annual Average Employment by Size Code. Note: 1999-2003 data is based on NAICS codes: 1988-1998 data is based on SIC codes.

9. Virginia’s Energy Region Natural Gas Production Source: Virginia Energy Patterns and Trends website

10. Virginia’s Energy Region Natural Gas Production 19912001 Number of producing wells 8863,521 Dry production (million cubic feet) 14,90671,543 Source: Virginia Energy Patterns and Trends website, Virginia DMME, Division of Gas and oil Largest companies: Equitable Resources/EREX Consol, Inc. Pocahontas Gas Partnership

11. Virginia’s Energy Region Non-traditional economic development investments Appalachian School of Law--$1 million loan Grundy Town Relocation—$1.5 million loan University of Appalachia School of Pharmacy—$3 million in matching loan funds Dickenson Community Hospital— $1,765,000 loan

12. Virginia’s Energy Region Loans and grants as of 12/31/03 Locality Severance Tax Receipts 7/1/88-12/31/03 % TotalFunds Approved % Total Total Projects Buchanan$22,155,73844.3%$25,420,97438.8%46 Dickenson$8,752,24417.5%$10,305,06215.7%18 Lee$1,095,0172.2%$1,656,0282.5%11 Russell$1,927,8003.9%$5,513,8888.4%14 Scott$17,6570.04%$1,198,6861.8%3 Tazewell$1,913,2693.8%$4,858,8157.4%20 Wise/Norton$14,170,31428.3%$16,393,97125.0%30 RegionalN/A $100,0000.2%1 TOTAL$50,032,039100.0%$65,447,424100.0%144

13. Virginia’s Energy Region VCEDA Approved Funds 1988- 2003 This chart shows the amount of funds approved for loans and grants from 7/1/88-6/30/03, categorized by purpose.

14. Virginia’s Energy Region Re-Branding of Region Consolidate into one organization –Drop Virginia Southwest Promise Simplify and unify VCEDA brand Slogan, “Virginia’s Energy Region” –Reflects natural resource history of region while focusing on the skill and ingenuity of the workforce for present and future industries.

15. Virginia’s Energy Region Target Industries Automotive Wood Products Customer Contact Industry Electronics Metal Fabrication Independent Power Producers

16. Virginia’s Energy Region Industry Announcements 2004 New Industry –AOL/Virtus Marketing, Norton, VA 67 Jobs - $500,000 Investment –Blue Ridge Wood Products, Bluefield, VA 160 Jobs - $3,600,000 Investment Expansions –VFP, Duffield, VA 72 Jobs - $650,000 Investment –Joy Manufacturing, Duffield, VA 45 Jobs - $1,400,000 Investment

17. Virginia’s Energy Region VCEDA Diversification History Since 1988, 61 companies have been recruited to the Coalfield region. –18 Information Technology & related companies –4 Automotive companies –9 Wood Products companies –3 Electronic & related companies –11 Textile & related –14 Other

18. Virginia’s Energy Region VCEDA Diversification History cont’d More than 9,298 jobs have been created as a result of these recruitment efforts Investment in these industries exceeds $184,327,540 31 Existing industry expansions have occurred, creating 2,098 new jobs and investing $81,867,956