1. Resource Planning Georgia Power’s Diverse Plan to Meet Georgia’s Energy Needs AWMA Fall 2010 Conference October 7, 2010 Jeff Burleson Director of Resource Policy and Planning

2. Resource Planning Outline Growth Planning Energy Efficiency Renewables Nuclear Summary

3. Resource Planning US Electricity Generation by Region History and projection, 1990-2030 Data Source: Energy Information Administration, US Department of Energy ProjectionHistory Projected growth 2008-2030 34% 25% 34% 22% 11%

4. Resource Planning Planning Uncertainties include –Long term fuel prices –Long term environmental requirements –Potential climate change or renewable legislation –Technological advances Long lead times for new resources –Typically 3 to 10 years for permitting and construction –Resources typically last 30 to 60 years Robust, comprehensive planning process –Integrated Resource Planning (IRP) in some states –Frequent validation and updates, as needed

5. Resource Planning Energy Efficiency Award Summary EPA’s Change the World, Start with ENERGY STAR Pledge® Campaign –2009-2010 First Nationally –2008-2009 First Nationally –2007-2008 Third Nationally –2006-2007 Second Nationally ENERGY STAR® Leadership in Housing Award - 2009 & 2010 ENERGY STAR® partnership –Honored for three consecutive years as Excellence in Energy STAR Promotion Award winner ENERGY STAR® Recycle My Old Fridge Campaign - 2008 First Place Southern Company “LEAF” Award Winner - 2007 Winner

6. Resource Planning Energy Efficiency 7 new programs will launch January 1, 2011 –New homes –Existing homes –Lighting and appliances –Water heating –Refrigerator recycling –Commercial buildings (2 programs) 16 energy-efficiency and demand-response programs –Invest >$500 million next 10 years –Projected demand reduction of 2,800 MW by 2020

7. Resource Planning Renewable Generation Today Existing Capacity –Hydro: over 1,000 MWs Green Energy Program (14.4 MWs Energy Only) –Landfill Gas Generation: 9 MW –Solar Energy: 5.4 MW Approved or Committed Capacity (~270 MWs) –Qualifying Facilities (QFs) under contract using biomass and solid waste –Solar self build (1MW) Plans are for portfolio of projects at customer locations –Mitchell Biomass conversion (96 MW) Once converted, will supply about 1% of GPC’s annual energy sales

8. Resource Planning Where We’re Headed  Renewable generation –Potential for up to several hundred MWs –Woody biomass and landfill methane gas generation  Investing in renewable energy research

9. Resource Planning Georgia Leads the Nation -- 24 million Acres of Commercial Timberland 2/3 of the state of Georgia is timberland2/3 of the state of Georgia is timberland 2 billion tons of wood on timberland2 billion tons of wood on timberland 70 million tons of wood growth annually70 million tons of wood growth annually

10. Resource Planning Biomass Conversion Opportunities Potential candidates: - Small, old coal plants - Low capacity factor - Potential high-cost environmental controls Economics are very site specific - Fuel Supply - Existing equipment Major Plant Modifications: - Replace or modify existing boiler - New fuel handling systems - Significant de-rate in plant capacity

11. Resource Planning

13. Local Economic Benefits Tens of millions of dollars annually in local wood purchases vs. out-of- state coal purchases Increased tax base Jobs 50-75 permanent to supply wood 80-100 temporary construction jobs over a two-year period Conversion originally scheduled for June 2012 Delayed due to uncertainty regarding EPA’s pending EPA’s Industrial Boiler MACT final ruling, expected in December 2010. Benefits of Conversion Cost-effective Renewable Energy Fuel Diversity Environmental Benefits

14. Resource Planning Researching wind potential off the Georgia coast Photo-Simulation, Northern Wind Farm Location, 6.8 miles Southeast of Tybee Island

15. Resource Planning Making Solar Work  Long history of support for solar demonstration projects  Evaluating cutting-edge solar technologies –7 photovoltaic technologies installed on roof of corporate office –4 kilowatts in size each –Potential to expand by 2011  Bottom line at this point –Cost-effective solar energy will require continued reductions in installation costs

16. Resource Planning Nuclear Generation  New licensing process  New passive safety design  Standardized design  Virtually no air emissions  Economical  Fuel diversity  Projected savings of $1 to 6 billion vs natural gas Plant Vogtle Conceptual View with Units 3 & 4

17. Resource Planning Summary Energy demand will grow over the next 10 years –Expected to be met with approximately 2 to 4 percent renewable generation sources 14 percent nuclear generation 21 percent energy efficiency and demand response 61 to 63 percent natural gas-fueled generation Diverse energy plan is necessary to ensure economical and reliable supply of electricity Renewables and energy efficiency must play an increasing role in a diverse energy plan