1. Overview of Alabama Power’s Tallapoosa River Operations Martin Dam Relicensing Informational Meeting April 1, 2008 Andy Sheppard, P.E. Project Mgr. - Hydro Optimization

3. What do we want to do today?  Take a brief tour of the river basin and dams  Review project purposes  Special operation issues  Daily operation considerations

4. Alabama Power Company Hydroelectric Projects

5. APCo RESERVOIR SYSTEMS Three River Basins Tallapoosa Warrior Coosa Drainage 3,300 4,200 10,100 Reservoirs 4 3 6 Units 11 4 26 Capacity (MW) 420 280 950

11. Tallapoosa River Basin Average Monthly Rainfall

13. PROJECT PURPOSES  HYDRO ELECTRIC POWER  Electric System Dynamic Benefits  Energy  FLOOD CONTROL  DROUGHT MANAGEMENT  NAVIGATION REQUIREMENTS  RECREATION, FISH AND WILDLIFE  WATER QUALITY

14. The Reservoirs operated by APCo are different in more than just name and location, they're designed to be operated differently. APCo operates two types of reservoirs : Run-of-River and Storage Run-of-River Storage Tallapoosa Yates, Thurlow Harris, Martin Warrior Bankhead, Holt Smith Coosa Lay, Mitchell, Jordan/Bouldin Weiss, Henry, Logan Martin Furthermore, the dams located on the same river must be operated as a single system The operations of each dam have an impact on both upstream and downstream reservoirs

15. Typical APCo System Load and Hydro Generation during Winter 9,000 MW 8,000 MW 7,100 MW

16. Typical APCo System Load & Hydro Generation during Summer 11,000 MW 6,300 MW

21. Wadley May 2003

22. Tallapoosa River above Horseshoe Bend May 2003

23. Flood Control can be defined as reducing river stages DOWNSTREAM of a dam The people and property located downstream benefit from flood control operations Run-of-river reservoirs have limited flood control capability; they cannot provide this benefit to the public

24. Downstream flood peaks are reduced by discharging less water than is coming into the reservoir Flood control plans are based on studies of significant rainfall events. Not every flood can be completely controlled; each project has a particular amount of water that it can store After all flood storage has been used, the project becomes run- of-river

25. Drought Forecasting Drought Timetable Reservoir Impacts So, how does APCo make the decisions? Using a consultation process that involves all the regulatory agencies responsible for managing flow and its impacts: How bad.... How long..... How much

26. License Excerpt for Martin Dam FERC Project 349 Article 12 - The FERC & Secretary of the Army have rights to dictate storage & discharge rules in the interest of navigation, protection of life, health, and property, and in the interest of the fullest practicable conservation and utilization of such waters for power purposes and for other beneficial public uses, including recreational purposes ( paraphrased )

27. Tallapoosa River Daily Reservoir Operations

28. Automated Rain & Stream Gages RIVER RAIN STREAM TALLAPOOSA 15 6 WARRIOR 15 6 COOSA 45 18

31. JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

33. Daily & Weekly Load Forecast Rain Forecast Inflow Forecast Lake Level Forecast Units On-line Maintenance Plans Up & Down Stream Lake Levels & Inflows Lake Activity Required Min. Discharges Flood Control Discharges Operational Issues

36. Martin Rule Curve Evaluation Primary objective of MIG 3 Project Operations Study Plan is to determine feasibility of winter pool change Preliminary results of modeling complete, presented today Investigated early implementation approach – change and evaluate “in the field” Modeling results indicate downstream flooding issues Solicited direction from FERC – must conduct in-depth analysis of impacts and mitigation during relicensing process through modeling and studies prior to any operational changes Evaluation of permanent changes to winter pool will be conducted over the next 2 to 3 years and proposal included in license application in 2011 Precedent has been set for addressing future drought conditions