Bonbright Conference Current Environmental Issues A Utility Perspective

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Bonbright ConferenceCurrent Environmental
IssuesA Utility Perspective

• Chuck Huling
• Vice President, Environmental Affairs
• Oct. 10, 2008

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Todays Discussion

• Who we are
• Environmental challenges
• What were doing
• Where were headed
• Our commitment

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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
• High customer satisfaction
• Rates about 15 percent below the national average

Georgia Power
Alabama Power
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Georgia Power Generation Mix
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U.S. Capacity Additions
Percent of total
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Environmental Challenges

• Environmental controls
• Climate change
• Growth
• Water and waste management
• Changing landscape
• Political, regulatory, judicial

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Environmental Controls
2007
2008
2009
2010
2011
2012
2013
2014
Bowen 1-2 Bowen 3-4
1
1
3
3
Branch 1-2
Branch 3-4
Hammond 1-4
Scherer 1-2
1
Scherer 3-4
3
Wansley 1-2
Yates 6-7
Not to scale
Baghouse
Scrubber
SCR
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Climate Change
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Southern Companys Position

• 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
  electricity remains reliable and affordable.

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Climate Change Principles

• Any policy or legislation must ...
• Take a global approach
• Apply economy-wide i.e. not target one sector
  over another
• Have limited economic impact
• Have achievable targets and timetables tied to
  the availability of technology

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Environmental ChallengesGrowth
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Water Management
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Waste Management
Plant Bowen Gypsum Storage
Georgia Dome
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Changing Landscape

• Political, regulatory, judicial uncertainty
• Clean Air Interstate Rule (CAIR)
• Clean Air Mercury Rule (CAMR)
• Non-attainment for ozone and particulate matter

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What Were Doing

• The basics
• Conserving, recycling, compliance with regulatory
  requirements
• and so much more
• 5 billion in environmental controls, a diverse
  energy plan, sustainable change

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What Were DoingReducing Emissions with
Environmental Controls
21 Scrubbers 9 SCRs 4 Baghouses
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(No Transcript)
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Historical Emissions Trends
Population Up 58
MERCURY DOWN 75
NOx DOWN 85
SO2 DOWN 93
1990
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Diverse Energy Mix

• Replacing 540 megawatts of coal-fired generation
  with more than 2,500 megawatts of natural
  gas-generation
• Adding zero-emissions nuclear generation

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Sustainable Change

• Hybrid bucket trucks
• Voluntary no-idling policy
• SmartRide

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Where Were Headed

• Investing 400 million on environmental research
  and development
• Developing one of nations largest biomass plants
• Energy efficiency programs to reduce demand by
  1,000 MW by 2010

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Our Environmental Commitment
We have a good environmental
record and are taking steps to improve the
environment in the communities we serve.

• Solutions
• Balance
• Stewardship

We must balance environmental
requirements with growing energy needs and the
economy.
We evaluate
environmental concerns in the business decisions
we make.