Dependable Power. Dependable People.

The mission of Santee Cooper is to be the state’s leading resource for improving the quality of life for the people of South Carolina.

Santee Cooper is customer-focused with commitments to Low-Cost / Dependable Power Dependable People Quality Service Environmental Stewardship

Santee Cooper Generation Jefferies Hydro 1, 2, 3, 4 & MW Moncks Corner

Jefferies Steam 1 & 2 - Oil MW Moncks Corner Jefferies Steam 3 & 4 - Coal MW Santee Cooper Generation

Winyah Steam 1 - Coal MW Georgetown Winyah Steam 2 - Coal MW Winyah Steam 3 - Coal MW Winyah Steam 4 - Coal MW Santee Cooper Generation

Grainger Steam 1& 2 - Coal MW Conway Santee Cooper Generation

Cross Steam 2 - Coal MW Cross Cross Steam 1 - Coal MW Cross Steam 3 - Coal * MW * Projected Santee Cooper Generation Cross Steam 4 - Coal * MW

Schedule for Additional Generating Capability Santee Cooper Generation Cross Steam 3 - Coal * MW Class Cross Steam 4 - Coal * MW Class

Pollution Control Technology SO 2 NO X 7 coal-fired units scrubbed for SO 2 removal in GA, SC, & NC 5 of 7 are Santee Cooper units Santee Cooper has committed to: ● Install SCR Technology on Cross & Winyah Units and Low-NO X Burners on others ● ● Spend $280 M to comply with NO X SIP Call Requirements

NSR Settlement JULY 2000 SANTEE COOPER, LIKE MANY OTHER COAL FIRED UTILITIES, RECEIVED A SECTION 114 REQUEST FOR INFORMATION REGARDING OPERATION AND MAINTENANCE OF ITS COAL FIRED UNITS FROM THE MID- 1970’S TO THE PRESENT

NSR Settlement TIME FRAME -PROVIDED A LARGE NUMBER OF DOCUMENTS IN RESPONSE TO THE 114 REQUEST - BEGAN DISCUSSIONS WITH EPA REGARDING A POSSIBLE RESOLUTION THAT WOULD BE CONSISTENT WITH SANTEE COOPER’S BUSINESS PLAN -NO RESOLUTION WAS REACHED DURING TIME FRAME -EPA’S ENFORCEMENT POLICIES BEGAN SHIFTING

NSR Settlement TIME FRAME -SANTEE COOPER BEGAN PERMITTING PROCESS WITH EPA AND DHEC FOR CROSS UNITS 3 AND 4 -A “BEGIN CONSTRUCTION” ISSUE AROSE WITH SOME CONSTRUCTION ACTIVITIES AT THE PLANT SITE -DHEC, EPA CONTACTED SANTEE COOPER ABOUT POTENTIAL ENFORCEMENT ACTIVITY WITH REGARD TO NSR AND “BEGIN CONSTRUCTION” ISSUES -SETTLEMENT DISCUSSIONS RESUMED

NSR Settlement MARCH 2004 SANTEE COOPER REACHED A SETTLEMENT WITH DHEC, EPA AND DOJ WHICH RESOLVES PAST AND FUTURE NSR LIABILITY, RESOLVES “BEGIN CONSTRUCTION” ISSUES AND IS CONSISTENT WITH ITS BUSINESS PLAN FOR FUTURE POLLUTION CONTROL CONSENT DECREE IS ENTERED JUNE 2004

NSR Settlement ● Certainty ● Operational Flexibility ● Opportunity to move forward with projects Agreement with EPA & DHEC provides:

NSR Settlement ● Pollution Controls ● Civil Penalties ● Environmental Projects THREE MAJOR COMPONENTS

NSR Settlement Santee Cooper has agreed to spend approximately $140 M on additional pollution controls: ● Scrubbers and Scrubber Upgrades for SO 2 Reduction ● Year-Round Operation of SCRs for NO X Reduction ● Additional PM Controls

NSR Settlement Costs of Settlement Compare Favorably to Future Control obligations Largest Costs ● M for Scrubbers at Winyah 1 and 2 ● 2012 – Possible Costs of 50 M for Scrubber Upgrades at Winyah 3 and 4 and PM Upgrades at Jefferies and Grainger

NSR Settlement Benefits of Additional Controls ● SO 2 reductions allow significant savings in purchase of SO2 credits ● Additional controls allow fuel flexibility ● Pollutant reductions allow for permitting through netting process

NSR Settlement Results of Additional Controls ● SO 2 Reductions of 50% (measured in lbs. per unit of electricity generated) ● NO X Reductions of 70% ● State of the Art Controls on nearly 90% of Santee Cooper’s coal-fired generation

NSR Settlement - Civil Penalties Totaling 2 Million Dollars ●1.3 Million to EPA ●.7 Million to DHEC -Environmental Projects Totaling 4.5 Million Santee Cooper has agreed to:

NSR Settlement ● Environmentally Beneficial Projects - Land Conservation Project - Energy Efficient Technologies Project - Demand-Side Management Project - Clean-Diesel School Bus Retrofit Project - Environmental Management System

NSR Settlement CHALLENGES OF SETTLEMENT - COMPLICATED CONSENT DECREE SUBJECT TO INTERPRETATION - LOTS OF RECORDKEEPING REQUIREMENTS -LOTS OF DEADLINES -LESS MARGIN FOR ERROR IN OPERATION

NSR Settlement BENEFITS OF SETTLEMENT CLEAR PATH TO PERMITTING CROSS 3 AND 4 ● 1100 Megawatts of New Coal Fired Generation – Permit Unopposed and Un- appealed ● 1.4 Billion Dollars of New Construction Underway Since January 2004

NSR Settlement BENEFITS OF SETTLEMENT -Avoided Cost and Risk of High Profile Environmental Suit -Resolved Potential NSR Liability within Framework of Business Plan -Maintained Operational Flexibility -Maintained Support of Environmental Community

NSR Settlement DOJ SAID ABOUT SETTLEMENT: “Today’s settlement again demonstrates this Administration’s commitment to secure major pollution reductions from coal fired plants. The citizens of South Carolina will benefit from significant improvements in air quality. Santee Cooper deserves credit for stepping up to the plate and resolving this matter in a way that promotes the public interest.”

NSR Settlement EPA SAID ABOUT SETTLEMENT: “The people of South Carolina will soon benefit from the responsible actions of Santee Cooper in cleaning up the emissions from their facilities”

NSR Settlement Light Reading -Consent Decree can be downloaded at

Dependable Power. Dependable People.