2013 AEP BRO Pulverizer Breakout Session July 2013 By Michael Leadmon Ed Dillow

Safety Brief  Emergencies – Call “HELP” (4357) on house phones, and the Conference center will initiate the response.  Fire Alarms will sound if there is a fire. Instructions will be announced over the PA system. Follow the evacuation instructions.  Severe weather, Power outages, or other “situations” will be evaluated and taken care of by the Convention Center, again announcements will be made as required.

Changing times ! Changing times !  Pulverizer Curtailments $10,300,000 total with 92% at units without spare mills. 4th Leading contributor of Equivalent forced outage rate among the 5 – 800 series units. Focus : additional throughput to eliminate curtailments, improve reliability and capture the “money left on the table”.  2012 – No industrial load, curtailments covered with “excess power”, gas plants running and taking coal load, not much justification for spending money for pulverizer load curtailments!  2013 – Coal and Gas battle for market,, pure economics !! Throughput again becomes an issue! Capture the $ whenever available.

Why focus on Pulverizers?

Pulverizers mean Fuel Delivery  Flexibility – Boilers were designed considering the location of the mine, and will probably not be burning the coal today it was designed to burn 3-5 decades ago!  Dispatch cost - Real, and we are starting to educate our employees about this. Survival of the fittest! Small incremental improvements, do not expect single events to make a tremendous impact!  Idea generation – Employee involvement will create lots of ideas on how to improve ! Do not overlook this valuable resource.  Reality Check - Make sure you are not asking your equipment to do more that it is capable of doing! Original design basis did not include any “frills”!

Changing Operating Conditions Low Loads at night – Pushing established limits to keep from loosing money during off peak hours. Safety Point : Make provisions to ensure the coal conduit minimum velocities are maintained (3000ft/min) Low Loads at night – Pushing established limits to keep from loosing money during off peak hours. Safety Point : Make provisions to ensure the coal conduit minimum velocities are maintained (3000ft/min) Ash content – higher ash, less energy, more volume, greater slagging potential. Ash content – higher ash, less energy, more volume, greater slagging potential. Moisture – more heat input needed to drive off the moisture. Air heaters ! More equipment will be involved, look more at systems ! Moisture – more heat input needed to drive off the moisture. Air heaters ! More equipment will be involved, look more at systems !

Dispatch Cost of $36.00 Figure used to calculate the $9.5M curtailments  Fuel Cost & Handling ($/MWh) $  Maintenance ($/MWh) $ 1.95  Major Chemicals ($/MWh) $ 1.58  Other ($/MWh) $ 0.07 The target is obvious!

How do we cut dispatch costs???  Fuel cost represents 90% of the dispatch cost so it is the most likely place to find improvement.  To drop the dispatch cost $1.00, it takes about a $2.00 cost per ton reduction for delivered coal (average, you actual cost may change)  $20.00 price variation for our 12,000 Btu/# AEP coal is across the eastern fleet. So improvements are possible!

Dropping coal prices!  Caution, each unit was originally designed to run on a specific coal  A drop in coal price usually means increased ash, lower heating value, or some other undesirable characteristic.  Example, given a heat rate of 10,000 BTU/KWhr and a coal heating value of 12,000BTU/#, saving $2/ton for the same coal reduces the dispatch cost about $1.00! Saving that same$2/ton and loosing 500 BTU/# raises your dispatch cost by the same $1.00!

Reality : You get what you get !  Rarely do we get the coal the units are design for!  It is up to the pulverizer owners and operators to get the load from the pulverizers. Know your mills, and the modifications required to get them to where you want to be! Wholesale replacements are not always necessary.  Our speakers today are here to help by providing options for coal condition flexibility and throughput increases!

Presentations  B&W – Our alliance partner will discuss upgrades that have made overseas, the real data showing improvements in performance, and the importance of knowing what you want and expect to achieve with your modifications!  Alstom – Rotating classifier vs. modified stationary classifier accompanied by throat mods and wide tires. Buy only the upgrades that you need.  Smartburn – Explores modeling of the MPS89 and pre-mod analysis.  Illinois Basis Coal – Possible solution to economic problems? Pat Malone will discuss AEP test burns.  Stock Equipment – Will discuss feeder design criteria to meet NFPC requirements and how our old equipment may be pushing those limits. Inspection guidelines, repair procedures and preventative action suggestions!  AEP Big Sandy - Real data and experiences from AEP’s first rotating classifier installation!

Thank You !