Legislative Update

1. Legislative Update November 3, 2011 GMMSCA Fall Conference

2. Legislative Successes in Georgia • 1999-2004 Transmission Line Planning PASSED • 2002 EMC Gas Marketers PASSED • 2005 Unclaimed Capital Credits PASSED • 2006 Eminent Domain Powers PRESERVED • 2007 Metals Theft Legislation (Part I) PASSED • 2007-2008 CATV Pole Attachment Legislation- BLOCKED • 2009 Metals Theft Legislation (Part II) PASSED • 2010 CATV Pole Attachment Legislation- BLOCKED AGAIN • 2011 PAC legislation PASSED • 2011 Open meetings laws applied to EMC Board of Directors BLOCKED

3. Legislative Priorities • Securing the necessary generation resources to meet future demand in the era of climate change • Keep elected officials and opinion leaders informed about key factors influencing future power supply decision-making • Preserve member-owner governance in electric cooperative business model • Keeping elected officials and opinion leaders regularly informed is best defense against threats of expanded PSC regulation, or other government interference.

4. Keys to Legislative Success • Continue to be a leader in providing reliable and affordable electricity with superior customer service • Continue being an active community supporter AND leader throughout service area • Make sure you know your legislators and local officials, and vice-versa • https://www.ourenergy.coop/ • Every EMC employee and director in Georgia plays a vital role for any legislative success

5. Federal Energy Issues • H.R. 2401: The T.R.A.I.N Act • Transparency in Regulatory Analysis of Impacts on the Nation Act of 2011 • requires the feds to consider the broad implications of new EPA regulations • Includes impacts to consumers, businesses, jobs, and the overall economy • Passed House 249 to 169 • H.R. 2273: The Coal Ash Bill • ensures the safe management & disposal of coal ash, while preserving jobs and encouraging beneficial reuse • Bi-partisan approach & strikes balance between environmental protection and protecting jobs &economy • Passed House 267 to 144; currently in Senate

6. '11 '12 '13 '16 '15 '17 '08 '09 '10 '14 Environmental Regulatory Timeline for the Utility Industry Ozone SO2/NO2 CAIR Water Beginning CAIR Phase I Seasonal NOx Cap SO2 Primary NAAQS Final Transport Rule I Proposed Transport Rule II Effluent Guidelines proposed rule expected Next Ozone NAAQS Revision Revised Ozone NAAQS Reconsidered Ozone NAAQS Effluent Guidelines Compliance 3-5 yrs after final rule Proposed Transport Rule I Effluent Guidelines Final rule expected Industrial Boiler MACT Compliance CAIR Vacated SO2/NO2 Secondary NAAQS Industrial Boiler MACT Final Rule 316(b) final rule expected 316(b) Compliance 3-4 yrs after final rule CAIR Remanded NO2 Primary NAAQS CO2 Regulation Final Rule for CCBs Mgmt PM-2.5 SIPs due (‘06) Begin CAIR Phase I Annual SO2 Cap PM-2.5 SIPs due (‘97) Beginning CAIR Phase II Annual SO2 & NOx Caps Industrial Boiler MACT Proposal Begin CAIR Phase I Annual NOx Cap New PM-2.5 NAAQS Designations Beginning CAIR Phase II Seasonal NOx Cap CAMR & Delisting Rule vacated EGU HAPS MACT final rule expected EGU HAPs MACT Compliance 3 yrs after final rule Begin Compliance Requirements under Final CCB Rule (ground water monitoring, double monitors, closure, dry ash conversion) Compliance with CAIR Replacement Rule Proposed Rule for CCBs Management EGU HAPs MACT proposed rule Final EPA Nonattainment Designations Next PM-2.5 NAAQS Revision 316(b) proposed rule expected PM2.5 Ash Hg/HAPS CO2 11/12/10

7. State Government Issues • HB 316: Open Meetings Laws applied to EMC Board of Directors Meetings • SB160: PAC legislation • Solar/Renewable Energy & the Territorial Act • Other issues: tax reform, Competitiveness Initiative, Immigration, ethics reform • Ongoing education of elected officials and policy makers

8. THANKS…for your support of Georgia EMCand for the chance to participate in your program!Questions?