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Clean Power Plan EPA’s Clean Power Plan An overview of EPA’s proposed rules and the implications for the future Presented by: David Crews SVP - Power Supply EKPC 1

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Page 1: Clean Power Plan EPA’s Clean Power Plan An overview of EPA’s proposed rules and the implications for the future Presented by: David Crews SVP - Power Supply

Clean Power Plan

EPA’s Clean Power PlanAn overview of EPA’s proposed rules and the implications for the future

Presented by:David CrewsSVP - Power SupplyEKPC

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Page 2: Clean Power Plan EPA’s Clean Power Plan An overview of EPA’s proposed rules and the implications for the future Presented by: David Crews SVP - Power Supply

Clean Power Plan

EPA’s State-Specific Targets

• Proposed rules require 30% C02 reduction (from 2005 levels)

• Each state has a target; KY to develop an implementation plan by 6/30/2016

State 2020-2029Lbs CO2/MWhr

% Reductionfrom 2012

2030 +Lbs CO2/MWhr

% Reductionfrom 2012

Idaho 244 -28% 226 -32.7%

California 556 -32.4% 537 -23.1%

Kentucky 1844 -14.6% 1763 -18.3%

Montana 1882 -16.2% 1771 -21.1%

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Page 3: Clean Power Plan EPA’s Clean Power Plan An overview of EPA’s proposed rules and the implications for the future Presented by: David Crews SVP - Power Supply

Clean Power Plan

EPA’s Rate Calculation

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Page 4: Clean Power Plan EPA’s Clean Power Plan An overview of EPA’s proposed rules and the implications for the future Presented by: David Crews SVP - Power Supply

Clean Power Plan

EPA’s Rate Calculation

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Page 5: Clean Power Plan EPA’s Clean Power Plan An overview of EPA’s proposed rules and the implications for the future Presented by: David Crews SVP - Power Supply

Clean Power Plan

EPA’s Rate Calculation

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Page 6: Clean Power Plan EPA’s Clean Power Plan An overview of EPA’s proposed rules and the implications for the future Presented by: David Crews SVP - Power Supply

Clean Power Plan

EPA’s Rate Calculation

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Page 7: Clean Power Plan EPA’s Clean Power Plan An overview of EPA’s proposed rules and the implications for the future Presented by: David Crews SVP - Power Supply

Clean Power Plan

EPA’s Rate Calculation

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Page 8: Clean Power Plan EPA’s Clean Power Plan An overview of EPA’s proposed rules and the implications for the future Presented by: David Crews SVP - Power Supply

Clean Power Plan

Options For Utilities

The range of options to dilute CO2 emissions includes:

1. Retiring high CO2-emitting units

2. Increasing use of natural gas combined cycle units

3. Increasing use of renewables

4. Expanding energy efficiency and demand-side programs

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Page 9: Clean Power Plan EPA’s Clean Power Plan An overview of EPA’s proposed rules and the implications for the future Presented by: David Crews SVP - Power Supply

Clean Power Plan

EKPC Is:

• Actively evaluating compliance strategies

• Consulting with state regulators

• Consulting with our regulatory counsel

• Filing comments on the rule

• Filing new EE tariffs

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Page 10: Clean Power Plan EPA’s Clean Power Plan An overview of EPA’s proposed rules and the implications for the future Presented by: David Crews SVP - Power Supply

Clean Power Plan

Questions?

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