Licking County Energy Summit Pat O’Loughlin Buckeye Power Powering the Future of the Region’s Economy

Buckeye System Highlights Serves approximately 390,000 member-consumers Generating Capacity –1,621 MW Coal Cardinal – 1,215 MW OVEC – 406 MW –650 MW Natural Gas Mone – 450 MW Greenville – 200 MW –94 MW Renewables Hydro, wind, biomass Peak Demand – 1,622 MW $2.0 Billion Assets (12/31/11) $348 M Equity (12/31/11) 2

Cardinal Station 3

PJM Footprint 1/1/ ,000 MW Load 185,000 MW Generation 22% U.S. Electricity

EPA Train Wreck CSAPR Final Rule Issued –Ohio coal EGUs reduce SO2 95%+ –Ohio EGUs reduce NOx 90% –Stayed by DC Appeals Court 12/30/2011 –Hearing scheduled for April, 2012 Final MATS Rule Issued –Effective %+ reduction of mercury and other air toxics Proposed coal ash, water effluent and water intake rules pending GHG Rule under development 5

EPA Train Wreck FE announces 3,349 MW of OH, PA and WV coal plants to close in 2012 AEP moving forward with retirement of 6,000 MW of midwest coal plants MISO says 63,000 MW of coal plants require outages for scrubbers PJM says 30,000 MW of coal plants at risk FERC says no comprehensive reliability studies have been completed EPA says no reliability concerns 6

Cardinal Station Flue Gas

Buckeye Environmental Investment All Buckeye owned coal-fired generating plants will be equipped with state-of-the-art environmental controls by early 2013 –Cardinal completed U2 (2007) & U3 (2012) –OVEC - Kyger Creek (2012) & Clifty Creek (2013) Total Buckeye investment on these environmental and related projects from will be $1.26 billion Approximately 20% of cost to produce power for cooperative consumers Resume use of Ohio Valley coal

U. S. Coal Price Increases – % Increase 2004 – % Increase

Fuel Costs for Electric Generation ($/MMBTU) 10

Growing Renewable Resource Mix 11