Reso

urc

e P

lan

nin

g

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

Reso

urc

e P

lan

nin

g

Outline

• Growth

• Planning

• Energy Efficiency

• Renewables

• Nuclear

• Summary

Reso

urc

e P

lan

nin

gUS Electricity Generation by Region

History and projection, 1990-2030

0%

20%

40%

60%

80%

100%

120%

1990 1995 2000 2005 2010 2015 2020 2025 2030

Chan

ge fr

om 1

990

.

Southeast (SERC, FRCC: AL, AR, FL, GA, LA, W MO, MS, NC, SC, VA)

US

West (WECC: AZ, CA, CO, ID, MT, NV, NM, OR, UT, WA, WY)

Northeast (CT, DE, ME, MD, MA, NH, NJ, NY, PA, RI, VT)

Midwest (ECAR: IN, KY, MI, OH, WV)

Data Source: Energy Information Administration, US Department of Energy

ProjectionHistory

Projected growth

2008-2030

34%

25%34%

22%

11%

Reso

urc

e P

lan

nin

g

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

Reso

urc

e P

lan

nin

g

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

Reso

urc

e P

lan

nin

g

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

Reso

urc

e P

lan

nin

g

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

Reso

urc

e P

lan

nin

g

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

Reso

urc

e P

lan

nin

gGeorgia Leads the Nation Georgia Leads the Nation

-- 24 million Acres of Commercial Timberland-- 24 million Acres of Commercial Timberland

• 2/3 of the state of 2/3 of the state of Georgia is timberlandGeorgia is timberland

• 2 billion tons of wood on 2 billion tons of wood on timberlandtimberland

• 70 million tons of wood 70 million tons of wood growth growth annuallyannually

Reso

urc

e P

lan

nin

g

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

Reso

urc

e P

lan

nin

g

Reso

urc

e P

lan

nin

g

Reso

urc

e P

lan

nin

gLocal 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

Reso

urc

e P

lan

nin

g

Researching wind potential off the Georgia coast

Photo-Simulation, Northern Wind Farm Location, 6.8 miles Southeast of Tybee Island

Reso

urc

e P

lan

nin

g

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

Reso

urc

e P

lan

nin

g

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 VogtleConceptual View with Units 3 & 4

Reso

urc

e P

lan

nin

g

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