Powering the Future of the Region’s Economy

1. Powering the Future of the Region’s Economy Licking County Energy Summit Pat O’Loughlin Buckeye Power

2. Buckeye System Highlights • Serves approximately 390,000 member-consumers • Generating Capacity • 1,621 MW Coal • Cardinal – 1,215 MW • OVEC – 406 MW • 650 MW Natural Gas • Mone – 450 MW • Greenville – 200 MW • 94 MW Renewables • Hydro, wind, biomass • Peak Demand – 1,622 MW • $2.0 Billion Assets (12/31/11) • $348 M Equity (12/31/11)

3. Cardinal Station

4. PJM Footprint 1/1/2012 165,000 MW Load 185,000 MW Generation 22% U.S. Electricity

5. EPA Train Wreck • CSAPR Final Rule Issued • Ohio coal EGUs reduce SO2 95%+ • Ohio EGUs reduce NOx 90% • Stayed by DC Appeals Court 12/30/2011 • Hearing scheduled for April, 2012 • Final MATS Rule Issued • Effective 2015 - 90%+ reduction of mercury and other air toxics • Proposed coal ash, water effluent and water intake rules pending • GHG Rule under development

6. EPA Train Wreck • FE announces 3,349 MW of OH, PA and WV coal plants to close in 2012 • AEP moving forward with retirement of 6,000 MW of midwest coal plants • MISO says 63,000 MW of coal plants require outages for scrubbers • PJM says 30,000 MW of coal plants at risk • FERC says no comprehensive reliability studies have been completed • EPA says no reliability concerns

7. Cardinal Station Flue Gas

8. Buckeye Environmental Investment • All Buckeye owned coal-fired generating plants will be equipped with state-of-the-art environmental controls by early 2013 • Cardinal completed U2 (2007) & U3 (2012) • OVEC - Kyger Creek (2012) & Clifty Creek (2013) • Total Buckeye investment on these environmental and related projects from 2002-2013 will be $1.26 billion • Approximately 20% of cost to produce power for cooperative consumers • Resume use of Ohio Valley coal

9. U. S. Coal Price Increases 2004 – 2011 79% Increase 1994 – 2004 1% Increase

10. Fuel Costs for Electric Generation($/MMBTU)

11. Growing Renewable Resource Mix