1. Progress Energy and the Environment Western North Carolina Air Quality Don Cooke April 29, 2003

4. Local plant may store more nuclear waste By Millard K. Ives Staff Writer millard.ives@wilmingtonstar.com The Brunswick Nuclear Plant in Southport wants to build a dry- cask fuel-storage facility to hold more nuclear waste. Progress Energy, which operates the plant, has begun asking for bids from companies to construct the facility on its grounds near Southport. It will likely be built in 2005 or 2006, and the waste would be held there until a proposed nuclear repository is constructed in Nevada, said Mike McCracken, a spokesman for the nuclear plant…. millard.ives@wilmingtonstar.com

5. Some other issues…... l Coal Combustion Products l Endangered Species Act l Total Maximum Daily Loads l Hydro Relicensing l Chemical control l Regulatory Reform l Environmental Justice l Vegetation Management l Groundwater Quality Standards l PCB’s…..

6. ….and Air Quality Article published Apr 29, 2003 ‘Haze Cam’ provides look at air pollution in Triad GREENSBORO - A Web site operated by Forsyth County is giving Triad residents an up-close view of the polluted air that plagues the region. Triad Haze Cam, which went online this month, displays views snapped every half-hour from 2,360 feet up Sauratown Mountain in Stokes County. One view looks toward western North Carolina. The other is to the northeast.

7. Air Quality l What are the trends? l Where have we been? l Where are we going?

8. Economic Growth Trends Source: EPA Trends Report for 2000 US Gross Domestic Product Increased 158% Vehicle Miles Traveled Increased 143% Energy Consumption Increased 45% US Population Increased 36% Aggregate Emissions Decreased 29% (Six Principal Pollutants) Comparison of Growth Areas and Emission Trends

9. EPA - National Air Emissions Trends Percentage change in total emissions (1981-2000) l NOx4% l SO231% l PM-2.55% (since 1990) l VOCs32% l PM-1047%

10. Are trends similar in North Carolina? l Statewide air quality trends show similar results over last twenty years w PM - 10Declined w SO 2 Declined w NOx Increased w Acid RainDeclined

11. Source: NC DAQ Ozone Exceedance Days (total orange, red and purple) 1

12. But Air Quality Problems Remain... l Visibility l Ozone l Fine particles What’s being done?

13. Federal and State Initiatives to Reduce emissions l EPA’s clear skies (NOx, SO 2, and Mercury targets and time tables) l NC’s clean smokestacks (NOx, SO 2 targets and time tables) l NOx SIP Call Plan already being implemented through 2006 l EPA Regional Haze Regulation reduces future SO 2 emissions (2007-2010) l Clean Air Act Title IV (Acid Rain program mandates SO 2 and NOx reductions)

14. Reduces NOx, SO 2 and mercury emission from power generation sources by 70%. Edison Electric Institute on The Clear Skies Act of 2002: “Such an approach, if done right, could allow power companies to make even deeper cuts in air emissions, while lowering regulatory compliance costs, saving money for customers, and maintaining the nation’s diverse fuel mix.” Reduces NOx, SO 2 and mercury emission from power generation sources by 70%. Edison Electric Institute on The Clear Skies Act of 2002: “Such an approach, if done right, could allow power companies to make even deeper cuts in air emissions, while lowering regulatory compliance costs, saving money for customers, and maintaining the nation’s diverse fuel mix.” The President’s Clear Skies Initiative February 14, 2002

15. National Emission Levels of SO 2, Nox and Mercury and Cap Levels under the Clear Skies Proposal Clear Skies ProposalActual

16. Governor Easley’s Clean Air Legislation l Puts more stringent controls on NC coal fired plants than any state in U.S. has implemented l Far exceeds both Federal and EPA standards No surcharge - freezes rates for five years

17. Progress Energy NO X Emissions Reductions Annual Emission in tons ActualSIP Call Clean Smokestacks Clear Skies

18. Progress Energy SO2 Emissions Reductions Annual Emission in tons Actual Clean Smokestacks Clear Skies Projected by EPA and NC Proposals

19. How will we get there? l Environmental leadership - the pursuit of new technologies l No utility in the country has been as aggressive as Progress Energy in searching out new technologies l Produce affordable, reliable electricity - cost is very important to many customers

20. Progress Energy is a Leader in Implementing New NOx Reduction Technologies l Brought 2 new technologies to the US from Europe l Third U.S. installation of AEFLGR NOx control technology at the CP&L Skyland Plant l Installed the 1st SCR in North Carolina l Benefits to stakeholders w Cleaner air w Capital cost savings of $50M w Introduced new low cost NOx control options for industry and other utilities

21. Progress Energy Asheville Ozone Season NOx Reductions ActualProjected 86% reduction Largest on system 70 %

22. Emissions Standard = 2.3 lbs/mm Btu Average SO 2 Emissions Rates Asheville Plant Coal-Fired Units

23. Asheville Unit No. 2 Opacity Data (1998 and 1999)

24. Where do we go from here? Practice Environmental Stewardship l Conserve electricity w Ideal Choice Home Program Support Clean Air Initiatives l Land of Sky Clean Air Campaign l Alternative Transportation Choices l Strive Not to Drive Program l Ozone Action Awareness Days Program l Clean Air Car Fair

25. Summary l Reliability, affordability, & environmental stewardship l PGN is reducing emissions now and will continue in the future l Pursuit of Innovative Technologies w Efficiently manage best control technology