1. Appalachian Power Update
Ron Jefferson, Manager External Affairs, Appalachian Power
May 26, 2016

2. Appalachian Power
Operates in three states serving approximately 957,000 customers (VA ,000).
~6,400 MW of directly-owned generation

3. Rate Stability Virginia
Residential Rates
11.56 ₵/kWh
11.23 ₵/kWh
February % decrease in rates
Residential rate cent - below National Average 13.3kwh / East Coast Average 15.2kwh / RGGI States Average 16.9kwh
Industrial rate 6.55 cent - National Average 8.2 / East Coast Average / 9.7
Stable Rates
2010
2016

4. Generation Coal Amos Plant Mountaineer Plant 3 units / 2,930 MW
Closing 4 plants with 1,735 MWs of lost capacity
2 plants in Virginia / 2 in West Virginia
Converting Clinch River plant to natural gas
2 coal plants remaining - both located in WV
Amos
2 units are 800 MW each / 1 unit 1,300 MW
Mountaineer
1 unit 1,300 MW
1 unit / 1,305 MW
Mountaineer Plant 4

5. Generation Gas Virginia Clinch River / 2 units / 484 MW West Virginia
Ceredo / 6 units / 450 MW
Ohio
Dresden / 1 units / 555 MW
3 natural gas plants
Complete Clinch River gas conversion in 2016
Dresden is a combined cycle plant
Clinch River and Ceredo are peaker plants
Clinch River Plant 5

6. Generation Pump Storage / Hydro
Virginia
Smith Mountain / 5 units / 615 MW
Leesville / 2 units / 5 MW
Claytor / 4 units / 15 MW
Byllesby / 4 units / 4 MW
Buck / 3 units / 3 MW
Niagara / 2 units / 1 MW
West Virginia
Winfield / 3 units / 9 MW
London / 3 units / 7 MW
Marmet / 3 units / 6 MW
1 Pump Storage
8 Hydro
665 MW total
Smith Mountain Dam 6

7. Generation Purchase Power Agreements PPAs
Wind
Beech Ridge (WV) MW
Fowler Ridge (IN) 100 MW
Camp Grove (IL) 75 MW
Grand Ridge (IL) MW
Hydro
Summersville (WV) 48 MW
4 wind contracts totaling 375 MWs
1 hydro totaling 48 MWs 7

8. 2016 APCo Nameplate Capacity Mix
Integrated Resource Plan
2016 APCo Nameplate Capacity Mix

9. 2030 APCo Nameplate Capacity Mix
Integrated Resource Plan
2030 APCo Nameplate Capacity Mix
Wind production tax credit PTC $22 per MWh
Solar investment tax credit ITC 30%
2016 = 10 MW of Utility Scale Solar and 150 MW of Wind
June 1, 2020 PJM new capacity rules takes effect
418 MW by 2020.

10. Integrated Resource Plan
2016 APCo Energy Mix

11. Integrated Resource Plan
2030 APCo Energy Mix

12. Clean Power Plan ~30% Reduction in CO2 (2005-2015)
CO2 Reductions Have Occurred
~30% Reduction in CO2 ( )

13. Clean Power Plan Emission Reductions Are Not Uniform
Emissions have increased in AR & LA
Majority of reductions occurred prior to 2012 EPA CPP baseline in OH & WV
Coal use has since been eliminated in KY & VA
6 6

14. Transmission Virginia Projects
Four major transmission projects started construction in 2014
Jackson ferry / clover dale (improvement of west to east flow of capacity)
Total budget for those projects is over $450 million
Total amount of investment in Virginia for transmission projects already started = $450 million
Cloverdale Station Expansion
765KV and 500kV Yards