Vistra Energy and Illinois Briefing for Governor-elect J.B. Pritzker Fall 2018

Creating the Leading Integrated Power Company

Creating the Leading Integrated Power Company

By the Numbers: Vistra in Illinois 8,300 MW $39 MILLION of reliable, affordable and locally generated energy Second largest in Illinois Enough to power 4.2 million homes in state tax revenue More than $22 million in property taxes to plant communities and local school districts 700,000 1,000 DIRECT JOBS customers of all industries and types Generation and retail business serve 400 communities across 80 Illinois counties. and 9,200 INDIRECT JOBS across central and downstate Illinois ~ 750 Direct IBEW, OPE Jobs $135 million in direct payroll to Illinois families Economic engine fueling dozens of communities $ 2 Billion + in Economic Impacts

Our Fleet Has Longstanding Roots, But We’re New Here Acquired Dynegy in April 2018 and immediately began evaluating the fleet for economic viability and to resolve legacy coal ash issues. We cannot indefinitely run plants at a financial loss and need regulatory and market certainty. We may be forced to close uneconomic plants resulting in the immediate loss of thousands of union jobs leading to diminished economic activity across central and downstate Illinois. Quickly filed a plan with regulators to properly secure and contain the legacy coal ash at the Middle Fork River and committed to a responsible and successful resolution in a timely manner.

MPS Rule Needs to be Resolved Soon & Favorably The legacy Multi-Pollutant Standard (MPS) rule was crafted before plants shared common ownership and requires inefficient management of the fleet, worsening the impact of the flawed MISO market environment. Proposed changes to the rule have been pending for 18 months before the Illinois Pollution Control Board, which recently issued a unanimous and bipartisan Order, improving the rule, while declaring the rule is in the public interest and beneficial to environment and protective of public health. The proposed MPS rule is a compromise that is good for the environment, good for downstate generation and good for union power jobs. The timely approval of this rule is vital, following a public hearing in January, to provide the regulatory certainty needed for Vistra to attempt to save as much of the central and downstate fleet as possible.

At Risk: Downstate Jobs, Reliably Produced Energy & Tax Revenue Issues unique to Illinois are putting most of our central and downstate fleet at risk of premature retirements and closure. If steps are not taken soon, Illinois will lose generation assets that otherwise would produce reliable, efficient, and low-cost energy. The state must take steps to secure its energy future, before a crisis roils the market and volatile prices hurt families and businesses. Vistra is currently over half of the generation of the downstate power market (MISO), but cannot indefinitely wait and lose money on its plants for resolution of well-established issues. Thousands of MW of generation are at risk.

At Risk: Downstate Jobs, Reliably Produced Energy & Tax Revenue Vistra believes Illinois must act to resolve longstanding issues in its MISO Zone 4 downstate power market before a crisis hits: In less than 20 months, nearly 20 percent of downstate power generation capacity was shut down. Due to the flawed market design, there has been extreme price volatility: as much as 1,000% from year-to-year over the past several years, which is not in the interest of generators, families, or businesses. MISO, which manages the capacity procurement process used in downstate Illinois, has urged IL policymakers to address the flaws in the market because the current system is not sustainable. The current system isn’t working and does not support any investment to retain or build new generation in the marketplace regardless of fuel type.

Vistra Energy – Working towards the Future in Illinois Vistra can build upon its success in Illinois by efficiently stabilizing the existing fleet and transitioning forward. A fleet that provides affordable, reliable, and environmentally compliant energy. Utility Scale Solar – Vistra has invested in large solar projects in Texas and bid into Illinois’ utility scale procurement process for four sites. Battery Storage – Vistra was recently awarded the development of the largest battery storage project in the world in California, and has a battery storage site in Texas. Vistra is willing to invest in new, cleaner technologies, that transition Illinois into the energy future, while ensuring electric reliability, but needs rules and regulations that provide balance, stability, and a fair energy market that works for all of Illinois. Vistra stands ready to work with Illinois policymakers to move IL forward.