1. Municipal Electric Power Association of Virginia Annual Meeting
Ron Jefferson, Manager External Affairs, Appalachian Power
May 21, 2015

2. Environmental Regulations
$2.3 billion investment for Appalachian Power
CSAPR (SO2 & NOx)
MATS (mercury & air toxics)
1,735 MW of Coal displayed for Appalachian Power
Proposed and/or
Finalized Rules
316(b) Rule (water intake structures)
111(b) C02
C02 regulations for Existing plants
APCo invested over $2.3 billion in environmental equipment to meet S02 and N0x rules
Closing facilities to meet the MATS rules – These are the 4 plants I just covered in a previous slide
Again, total of 1,735 MW of generation plant closings.
APCo currently has enough generation capacity to meet its PJM load requirements.
Compliance Timeline Contingent on State Implementation Plans
Anticipated
Rules
Clean Power Plan 111(d)
___________________________________________________________________________________________________________________
Time From Rule Finalization to Compliance 2

3. Generation Coal Amos Plant Mountaineer Plant Plants Closing in 2015
West Virginia
3 units / 2,900 MW
Amos Plant
West Virginia
1 unit / 1,300 MW
Plants Closing in 2015
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
Phillip Sporn
295 MW
Kanawha River
400 MW
Clinch River
705 MW
Glen Lyn
335 MW
Total
1,735 MW
Mountaineer Plant 3

4. Generation Gas Clinch River Plant 484 MW In Service 2016 Virginia
3 natural gas plants
Investing about a total of $120 million to convert 2 of the units at Clinch River plant to natural gas ($250 KW)
Dresden is a combined cycle plant
Clinch River and Ceredo are peaker plants
Virginia
Clinch River / 2 units / 484 MW
West Virginia
Ceredo / 6 units / 523 MW
Ohio
Dresden / 1 units / 580 MW 4

5. Generation Pump Storage / Hydro
Virginia
Smith Mountain / 3 units / 586 MW
Leesville / 2 units / 50 MW
Claytor / 4 units / 75 MW
Byllesby / 4 units / 21.6 MW
Reusens / 5 units / 12.5 MW
Buck / 3 units / 8.5 MW
Niagara / 2 units / 2.4 MW
West Virginia
Winfield / 3 units / MW
London / 3 units / 14.4 MW
Marmet / 3 units / 14.4 MW
Smith Mountain Dam
586 MW
Buck Dam
In Service 1912
Byllesby
In Service 1912
Niagara Dam
In Service 1906
1 Pump Storage
9 Hydro
800 MW total 5

6. Generation Power Contracted
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 6

7. Transmission Virginia Projects
Virginia Transmission
• 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 $428 million
 Two projects pending approval from SCC 
Total amount of investment in Virginia for transmission projects already started = $450 million
Cloverdale Station Expansion
500kV Yard

8. 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
There are also some additional projects pending approval from the SCC.
Cloverdale Station Expansion
765kV Yard

9. Distribution Vegetation Rate Adjustment Clause (VRAC)
Transform distribution rights-of-way from looking
like this …
to this …
Tree contacts account for about half of all power outages in Appalachian’s service area. To improve reliability legislation passed in the 2015 session that establishes a vegetation rate adjustment clause (VRAC)
Appalachian implemented a three year vegetation management pilot program in 2013.
40% improvement in reliability from tree related outages
2008 – 2012 = 4500 total number of outages per year
2014 outages were reduced to 2000 (55% reduction on outages)
VRAC will continue the momentum of reducing power outages and improving the reliability for all Appalachian Power Virginia customers.