CAMPUT

Mark LittleMay 3rd, 2005

The GE Portfolio …

GE Energy

GE Advanced Materials

GE Healthcare

GE Transportation

GE Equipment Services

GE Consumer & Industrial

GE Consumer Finance

GE Commercial Finance

NBC Universal

GE Infrastructure

GE Insurance Solutions

GE Energy Business Profile

•Currently operating in more than 100 countries … 100+ years

•Over 37,000 employees … 500 locations

•2004 revenue ~$17B

•2005 estimate ~ $20B

GE Energy … Broad Range of Technologies

NuclearO&G AeroServicesPower Generation

Gas / SteamWind Hydro

Global Fundamental Energy Challenges …Energy consumption ... +20% Population, +30%

Consumption

Environment …+1%/yr increase in CO2 emissions from energy

Energy security … 25% of NA Energy is Imported

Fuel challenge … Oil Price at record levels

Energy poverty … 1B people without enough energy

Infrastructure adequacy … NE(USA+Canada) blackout of ‘03

Need for More Energy, More Choices, More Flexibility

Cleaner … more efficient … more affordableCleaner … more efficient … more affordable

Cost of electricity(COE)

Affordable, reliable &

environmentally responsible

ConversionFuels

Gas

Oil

Coal

Nuclear

Geothermal

Biomass

Hydro

Wind

Solar

Gas

Oil

Coal

Nuclear

Geothermal

Biomass

Hydro

Wind

Solar

Effi

cien

cy

Delivery

Relia

bili

ty

Power Generation Technology Objectives

Em

ission

s

France / Germany

Denmark

… Multiple Conversion Platforms Essential

USUS

Russia

JapanJapanChinaChina

BrazilBrazil

AustraliaAustralia

Source: IEA Electricity Information

CoalGasNuclearHydroSolar / Wind

Coal

Hydro

Nuclear

Gas

Coal

Coal

Coal

Coal

Canada (560 TWh)Canada (560 TWh)

Hydro

Technology Choices of the Future … Allow Tradeoffs

Fuel

Fossil Project

Turbine70%

Wind Project

Turbine& BOP40%

Cost

FuelAvailability Limited

Price Predictability

Intermittent

Hydro Project

Limited

74%Civil Work

Seasonal &

limitedHigh

High HighFuel Mkt

based

World Power Generation Market Orders

0

50

100

150

200

1994 1996 1998 2000 2002 2004

Gas

GW

Order year

Coal

Wind + Other

Source: EPM S1 Forecast

2005

2015

Hydro12%

Wind & Other2%

Coal26%

Petroleum4%

Gas53%

Nuclear3%

Hydro13%

Wind 3%

Coal41%Gas

35%

Petroleum3%

Nuclear3%

Other2%

Alternatives Becoming a Significant Contributor … and Growing

Source: Shell Global Scenarios

0%

20%

40%

60%

80%

Coal

Nuclear

Oil

Gas

Hydro

Traditional (Wood, etc.)

1850 1875 1900 1925 1950 1975 2000 2025 2050

Wind, PV, other

renewables

% o

f Pri

mary

Energ

y

Renewable Targets• W. Europe 10% by 2010

20% by 2020

• US … 17 statesNY 25% by 2013California 20% by 2017

• China … 26 GW by 2020

What’s Next?Real Time: 2005 – 2008

Prime Time: 2009 – 2011In Time: 2012 – 2015

In-Time

Prime-Time

Real –Time

Technology is Critical … Requires Long Term Support

¢ p

er

kWhr

1980 1990 2000 2010

20 ¢

5 ¢

0 ¢

15 ¢

10 ¢

$$

Ideas

Pure research

Niche applications

Gas CC, Coal, Nuclear, Hydro

Fuel cell

Photovoltaic

Next“WOW”

Hybrids

Wind

Biomass

OEM Look for …

What’s Next … Real Time at GE

Thermal• Commercial launch of H System TM …

60% combined cycle efficiency • Launched LMS100TM …

46% simple cycle efficiency• Oil & Gas … world’s largest LNG train,

cost economies down 50% last 10 years

Renewables and Zero Emissions

• Wind … 2500+ 1.5 MW units worldwide, developing new family of multi-megawatt turbines

• Biomass – Jenbacher leads in low BTU application - increased fuel flexibility

• Hydro – Reversible pump turbine for storage

Thermal• Commercial launch of H System TM …

60% combined cycle efficiency • Launched LMS100TM …

46% simple cycle efficiency• Oil & Gas … world’s largest LNG train,

cost economies down 50% last 10 years

Renewables and Zero Emissions

• Wind … 2500+ 1.5 MW units worldwide, developing new family of multi-megawatt turbines

• Biomass – Jenbacher leads in low BTU application - increased fuel flexibility

• Hydro – Reversible pump turbine for storage

What’s Next … Prime Time at GE

•Cleaner Coal … targeting bids for COE equivalent to pulverized coal by 2008

• Solar … COE from 30¢/kWh to 18¢/kWh by 2008, targeting 10 by 2010

•Solid Oxide Fuel Cells ... 1 MW, competitive COE, 65%+ efficiency, low emissions (<1.5 ppm NOx), available in 2010+

•Nuclear … More economical, generates electricity and hydrogen

•Cleaner Coal … targeting bids for COE equivalent to pulverized coal by 2008

• Solar … COE from 30¢/kWh to 18¢/kWh by 2008, targeting 10 by 2010

•Solid Oxide Fuel Cells ... 1 MW, competitive COE, 65%+ efficiency, low emissions (<1.5 ppm NOx), available in 2010+

•Nuclear … More economical, generates electricity and hydrogen

What’s Next … In Time at GE($MM)

0

50

100

150

200

250

300

'02 - '04 '05 - '07

Externalfunding

Internalfunding

Hydrogen• Infrastructure game changer• No greenhouse emissions

Solid oxide fuel cells• Advanced hybrid cycle … 65%

efficiency

Next generation coal

• Carbon capture & CO2 sequestration

Next generation nuclear• More economical• Generate electricity and

hydrogen

Wind…Technology Synergies Drive Improvement

Pitch ControlGE Energy & GE

GRC

Gearbox & Drivetrain GE

Transportation

BladesGE Advanced Materials &

GE Transportatio

n

Power ElectronicsGE Energy

Utilizing GE Technology

Availability

‘02 ‘04

96 %

88 %

Size (MW)

‘85 ‘90 ‘95 ‘00 ‘05 ‘10

Cost of Electrici

tySize(MW)

0

4

8

0

4

8

12

CoE(¢/kWh)

Canada: Wind & Hydro Complement Each OtherWhile Hydro inflow is low

…Wind blows during peak

hrs

Biogas

Sewage Gas

Jenbacher … Applications

Non-Natural Gas• Biomass…another renewable

energy source

• Capturing/using gas that would otherwise be vented or flared

Natural Gas, Low-Emissions

• Industrial cogeneration & trigeneration

• Municipal CHP (district heating)

• Greenhouse … CHP + CO2 injection

MarketableByproducts:Sulfur

SulfurRemoval

Syngas

ElectricitySteam

Combined CyclePower Block

MarketableByproducts:

Solid feed – SlagGas/Liquid feed - Ash

Gasifier

IGCC… Cleaner Coal PowerGE now offering single point IGCC solution

Driving Cost of Energy towards parity with pulverized coal

Solar … Photovoltaic Technology Roadmap

Industry Leadership

‘06-’07

Improve What

We Acquired

Introduce Game-changer

Building-integrated PV Module

COE 30 ¢/kWh

Future

COE 18 ¢/kWh

‘04-’05

COE 10 ¢/kWh

• Environmental Issues will continue to grow in importance

• A balanced energy portfolio requires multiple conversion technologies.

• Stable economic & policy environment allows industry to invest more quickly in emerging technologies

• Industry is focused on providing value-add solutions to customers

There is No Crystal-ball to Predict the Future … But as Power Suppliers We Know

Thank You!

Mark LittleMay 3rd, 2005