Washington Update

Topics  Who We Are  Our Approach in Washington  Environmental Politics  A Decade of Debate on Industry Structure  Questions?

Who we are Buzz Miller Ray Harry (Environment) Adam Lawrence (Tax and Financial Policy/Senate D’s) Jim McCool (Telecom, HR/Core Delegation) John Pemberton (Environment/Senate R’s) Mike Riith (Nuclear, Hydro, Rail/House R’s) Jeanne Wolak (Industry Structure/House D’s) Todd Yelverton (FERC)

What Do We Do? “Influence Public Policy” We educate and influence to achieve a favorable outcome for Southern Company.

Relationships Southern Company Washington, D.C. Office PACs and other resources Executives’ Commitment & Involvement The Resources We Rely On Credibility & Technical Support Consultants

Results! “Bush advisers had considered including mention of the [carbon caps] proposal in the president’s address to Congress last night, but a reference to it was dropped in response to a last minute lobbying effort….” - Washington Post, 2/28/01

Results! “On March 29, new source review was added to the [Bush administration energy] task force’s agenda. ‘There was a real flurry of activity after the Southern Company to put N.S.R. on the energy policy agenda,’ said the person who participated in formulating the energy policy. ‘And it didn’t go away.’” - The New York Times, 4/13/02

What Do We Stand For? Leadership Consistency Credibility

The Political Dynamic 2000/2004 Presidential Elections: 2000: Bush wins electoral college vote, but loses popular vote 2004: Another close election expected Senate: 51 Republicans - 48 Democrats- 1 Independent 60 votes needed to pass any controversial legislation in the Senate House: 228 Republicans 205 Democrats 1 Independent 1 Vacancy 12 votes can make the difference between passage and failure of legislation in the House Moderates continue to play key role (Centrist Coalition, Blue Dogs and New Democrats)

Key Issues Energy Policy Environmental Nuclear Tax FERC

Environmental Politics Lightning Rod Issues  Mercury Emissions  New Source Review

Mercury Emissions  Administration proposal for reductions  Southern Company working to ensure practical implementation of new limits  Southern Company testimony at Senate EPW hearing June 2003 (video)

News Coverage  Washington Post – Search “Mercury, Power plants” – Current Results: 1993 – 2000  9 hits 2001 – current  70 hits

EPA Announces ‘Cap and Trade’ Plan to Cut Mercury Pollution; Agency Bowed to Utility Industry Pressure, Critics Charge: Washington Post, Dec. 16, 2003

EPA Chief Leavitt Sticks to New Air-Quality Rules Relaxing Mercury Standards : Salt Lake Tribune, Apr. 5, 2004

The Mercury Scandal New York Times, Apr. 7, 2004

Mercury Wars New York Times, Apr. 15, 2004

Kerry Push, Unlike Gore’s, Will Attack on Environment New York Times, Apr. 21, 2004

E.P.A. Will Not Withdraw Its Mercury Plan New York Times, Apr. 30, 2004

EPA to Delay Power Plant Mercury Controls Washington Post, Apr. 29, 2004

Fair and balanced? “The Bush administration’s ploy would allow coal-fired power plants to put more mercury into the air…”

New Source Review  ERCC Coalition – Sought changes to clarify rule application  Administration proposal under attack

A Decade of Industry Structure and Markets Debate  New visions of markets following 1992 EPACT  First was the aggressive push for full retail competition, led by Enron  Debate shifted to wholesale competition and transmission control (video)

“While Enron may be a goner, the innovation and entrepreneurial spirit that characterized this company remain”, he continued, predicting that “that new breed of energy company, in fact, is going to be the only game in town five years from now.” Pat Wood FERC Chairman Inside FERC The Continuation of a New Vision

Summary “We do what is right and we are straightforward with our publics. This is how we live, and it is the rule, not the exception.” Allen Franklin

What can you do?  Understand the issues – talk to your neighbors and communities  Vote  Support the PAC

Questions?