1. Ohio River Basin Water Quality Trading Project National Association of Regulatory Utility Commissioners Winter Meeting – Washington, DC. February 5, 2013 Hank Courtright, Senior Vice President Electric Power Research Institute

2. 2 © 2013 Electric Power Research Institute, Inc. All rights reserved. Electric Power Research Institute Generation Delivery Customer Independent, Objective, Collaborative

3. 3 © 2013 Electric Power Research Institute, Inc. All rights reserved. Our Ongoing Mission… Provide society with…

4. 4 © 2013 Electric Power Research Institute, Inc. All rights reserved. Water Resources Management Reduce water demand for power generation Reduce power demand for water production and treatment Minimize environmental impact of water use One of Six EPRI R&D Strategic Issues

5. 5 © 2013 Electric Power Research Institute, Inc. All rights reserved. What is Water Quality Trading?

6. 6 © 2013 Electric Power Research Institute, Inc. All rights reserved. Ohio River Basin – Water Quality Trading Stakeholder Collaboration Organizations Electric Power Research Institute American Farmland Trust Ohio Farm Bureau Federation Ohio River Valley Water Sanitation Commission (ORSANCO) Tennessee Valley Authority American Electric Power Exelon Hoosier Energy Duke Energy Hunton & Williams Kieser & Associates UC Santa Barbara States Ohio Indiana Kentucky Agencies USEPA USDA Steering Committees Wastewater Treatment Plants Agriculture Power Plants Environmental Groups

7. 7 © 2013 Electric Power Research Institute, Inc. All rights reserved. Trading Plan and Pilot Program Launched August 9, 2012 in Cincinnati, Ohio Representatives from the permitting offices and the agriculture agencies in Ohio, Indiana, and Kentucky signed the trading plan.

8. 8 © 2013 Electric Power Research Institute, Inc. All rights reserved. Pilot Trades (2012-2015) 30 farmer contracts 45,000-60,000 lbs N/yr 15,000-20,000 lb P/yr Focus on KY, IN, OH Objective: Trading across the Watershed

9. 9 © 2013 Electric Power Research Institute, Inc. All rights reserved. Watershed Model Adds Scientific Rigor

10. 10 © 2013 Electric Power Research Institute, Inc. All rights reserved. Steering Committees Wastewater Treatment Plants – National Association of Clean Water Agencies (NACWA) host EPRI via their WQT working group Power Plants – Duke, AEP, TVA, Hoosier, Exelon Environmental Groups –The Nature Conservancy OH –Sierra Club OH –OH Environmental Council –Environmental Law and Policy Center IN –MN Center for Environmental Advocacy –KY Water Alliance –Kentucky Resources Council –Environmental Defense Fund

11. 11 © 2013 Electric Power Research Institute, Inc. All rights reserved. Contacts and Questions Jessica Fox Jfox@epri.com 650-855-2138 www.epri.com/ohiorivertrading

12. 12 © 2013 Electric Power Research Institute, Inc. All rights reserved. Water Research Center

13. 13 © 2013 Electric Power Research Institute, Inc. All rights reserved. Together…Shaping the Future of Electricity