Exposing the Myth Showing that America can have a Clean Environment and Affordable Energy

Possibility Thinking

Empowering America electricity demand now accounts for 41% of total U.S. energy consumption compared to 20% in 1970 between 1970 and 1999, each percentage increase in GDP was equaled by just over a one-percent increase in electricity usage Source: U.S. Energy Information Administration

Growing Demand Coal Petroleum Natural Gas Nuclear Renewables ProjectionsHistory U.S. Electricity Demand 1970-Projected to 2020 (in billion kilowatthours) Source: U.S. Energy Information Administration, 2002

Affordable Energy … GOOD! Source: U.S. Energy Information Administration, 2002

Empowering Families * Household energy expenditures include both residential and transportation energy costs Source: U.S. Department of Energy Annual Income Over $50,000 $25,000 Under $10,000 4% 13% 29% Annual Income Over $50,000 $25,000 Under $10,000 4% 13% 29% $10,000 to Household Energy Expenditures By Income *

Empowering Economic Growth $163 to $659 billion in increased economic output $40 to $224 billion in increased household earnings 800,000 to 6.4 million additional American jobs The value to the U.S. economy of using domestic coal reserves to generate electricity in the year 2010 will be between:

Empowering Kentucky $11.2 to $36.2 billion in increased economic output $3 to $10 billion in increased household earnings 73,000 to 317,000 additional Kentucky jobs The value to the Kentucky’s economy of using domestic coal reserves to generate electricity in the year 2010 will be between:

Exposing the Myth Coal-based electricity has nearly tripled Emissions of health related pollutants reduced by nearly one-third +188% -32% Since 1970 Source: U.S. Department of Energy and Environmental Protection Agency, 2002

Continuing Progress SO 2 NO x PM 10 Source: U.S. Environmental Protection Agency and Department of Energy, 2002

Guaranteeing Continued Progress $500 million SCR installation at LGE Trimble County station revolutionary multi-pollutant control device to be tested at KU Ghent plant $70 million investment at WKE Coleman station for SO 2 controls LGE Upgrades at Existing Facilities LGE’s Trimble County station is one of the lowest emitters of NO x in the nation thanks to the installation of Selective Catalytic Reduction technology.

Guaranteeing Continued Progress $200 million upgrade at EKPC Spurlock Station Conducting initial engineering and planning for SCR’s or other environmental upgrades at Cooper station EKPC Upgrades at Existing Facilities EKPC’s $200 million investment in upgrades at the Spurlock Station include the installation of SCR’s and a new precipitator.

Modeling the Way SO 2 capture efficiency greater than 99% NO x emissions controlled at 0.15 lbs/10 6 Btu 20% reduction of CO 2 emissions compared to typical pulverized coal plant Kentucky Pioneer IGCC Project

Modeling the Way SO 2 capture efficiency greater than 98% NO x emissions controlled at 0.08 lbs/10 6 Btu exceeds the 2018 requirements of the Clear Skies proposal Thoroughbred Energy Campus

Modeling the Way $400 million investment in 268-MWe CFB unit at existing Spurlock station SO 2 capture efficiency greater than 98% NO x emissions controlled at 0.07 to 0.10 lbs/10 6 Btu EKPC Gilbert Unit Expansion

Keys for Success Access to electricity is essential to economic growth and prosperity in Kentucky Energy costs matter both to Kentucky’s businesses and working families Technology provides the key to increasing environmental performance of power plants that use coal

Possibility Thinking