BLUEPRINT VIRGINIA ENERGY

1. BLUEPRINTVIRGINIA ENERGY

2. Energy is one of eight • industry councils • _____________________________________________________________________________ • Here today for • your input • __________________________________________________________________________________________________________________________________ • Preston Bryant, McGuireWoodsConsulting • Steve Walz, Northern Virginia Regional Commission • Nikki Rovner, The Nature Conservancy in Virginia

3. Our Discussion Today • Virginia’s Energy Policy • Virginia’s Energy Landscape • Your Input • Note: The presentation on Virginia’s Energy Landscape has been assembled by Preston Bryant, Nikki Rovner, and Steve Walz from relevant state and federal government and other industry sources.

4. Background • Virginia’s Energy Policy

5. Virginia Energy Policy • No coordinated policy before 2006 • General Assembly called for the Virginia Energy Plan • § 67-100. Legislative findings • Energy is essential to the health, safety, and welfare . . . economy • The state government should facilitate the availability and delivery of reliable and adequate supplies . . . at reasonable costs • The Commonwealth would benefit from articulating clear objectives pertaining to energy issues, adopting an energy policy that advances these objectives, and establishing a procedure for measuring the implementation of these policies.

6. § 67-201. Development of the Virginia Energy Plan • Comprehensive Plan covering next 10-years • Propose actions, consistent with the objectives enumerated in § 67-101, that will implement the Commonwealth Energy Policy set forth in § 67-102 • New Governor to complete by July 1, 2014

7. 2007 and 2010 Virginia Energy Plans • 2007 Plan • Energy resources & infrastructure; efficiency; environment; R&D; public education; economic development • 2010 Plan • Energy Capital of the East Coast; energy supply; public education; R&D

8. Background • Virginia’s Energy Landscape

9. Energy Consumption

13. OPEC 4x price increase US per capita GDP, Energy, Electricity Energy Use and GDP no longer directly correlated

15. Energy Production

17. Our work must account for Virginia’s Diversity • Major Economic Sectors • Agriculture & Forestry • Business Services (financial, IT, etc.) • Defense • Manufacturing • Tourism

18. Our work must account for Virginia’s Diversity • Regions have different focus on energy • Southwest Virginia – Fossil fuel production • Southside & Valley – Agricultural energy • Northern Virginia, Richmond & Hampton Roads – Energy supply to commerce, government & industry; transportation & congestion relief Bottom Line Virginia is a populous, diverse, wealthy, and well-educated state whose citizens can be sophisticated thinkers about public policy, including energy policy

19. Asking For Your Input • Key Considerations • Energy For Commerce and Industry • Increased Productivity of Use • Competitive Cost • Resilient Supply • Energy Industry • Primary Energy Production • Utility Industry • Energy Products Manufacturing • Energy Services

20. Sponsors… CORNERSTONE SPONSORS PRESENTING FIRM SPONSORS PRESENTING SPONSORS CORPORATE SPONSORS

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