Its About:

1
Green Mountain Power
ENERGY PLAN

• Its About
• Cost
• Carbon
• Reliability

2
Energy Future The Goals

• More renewable energy generation
• Low carbon
• Stably priced and reliable power
• Support efficiency and expand demand response
• A Green Energy economy

3
Vermont Values The Message is Clear

• The public wants renewable energy wind, solar,
  biomass hydro
• State Government has set goals for renewable
  energy, efficiency measures, and greenhouse gas
  reduction

4
The Facts

• Vermont currently has the lowest electric rates
  in New England
• Vermont has the cleanest energy mix in the U.S.
• Vermonts commitment to efficiency spending has
  been the highest in U.S
• Decisions we make now will determine cost, carbon
  emissions, and reliability of electric supply for
  a long time to come a once-in-a-generation
  opportunity

5
Average New England Rates
12 Months Ended December 31, 2007
(cents per kwh)
6
Vermont Emissions Low Carbon
Figure II-7 U.S. States and DC Carbon
Emissions2003
Source DPS draft Comprehensive Energy Plan,
6-08(note this chart refers to in-state power
generation only, not overall emissions.)
Million Tons
States
7
Spending on Efficiency
Figure I Estimated 2007 Per Capita Budgets for
U.S.Electric Energy Efficiency Programs
Source http//www.cee1.org/ee-pe/2007/figures/Fi
g1.pdf
8
CHALLENGES
THE

• Approximately three-quarters of total power
  contracts expire in 2012 and 2015
• We must replace these low cost, low emission base
  load power contracts
• In-state renewable energy efficiency alone will
  not fill the void
• New generation must overcome
• Regulatory process
• Economics
• Public acceptance

9
THE CHALLENGE SUPPLY GAP
Source Vermont Department of Public Service,
2004 Energy Plan.Existing sources include 280 mw
Vermont Yankee and 310 mw Hydro-Quebec, which
expire in 2012 and 2015, respectively.
10
POWER SUPPLY TRADE OFFS

• Major factors considered in determining
  electricity portfolio
• Cost
• Carbon
• Reliability

11
GMP ENERGY RESOURCE MIX PRESENT 2007
12
GMP ENERGY RESOURCE MIX FUTURE 2032
13
ENERGY Committed Resources
Expected New Renewables
Average MW
14
ENERGY Resources with New
Renewables and New VY and HQ Contracts
Average MW
15
GMP RENEWABLE ENERGY Resources

• Coming On Line
• In the Planning Stages
• TOTAL 20-25 MW

• Moretown Landfill 3 MW
• Farm Methane 0.7 MW
• Deerfield Wind 15-20 MW
• Solar 1 MW
• New Hydro 0.5 MW

16
GMPS PLAN TO
MANAGE
COST, CARBON RELIABILITY

• Aggressively acquire and build new renewable
  generation
• Renegotiate power contract with Hydro-Quebec
• Ramp down dependence on Vermont Yankee over the
  20-year relicense period
• Investing in efficiency and demand side management

17
HOW DO WE GET THERE? AGGRESSIVE
RENEWABLE DEVELOPMENT

• Green Energy Incentives
• Identify Vermonts high potential locations for
  large renewable energy siting
• Generic pre-permitting of sites where local
  communities want generation
• Add economic development value and incentives for
  hosting communities

18
HYDRO QUEBEC

• Leverage Vermonts unique geo-political
  relationship with Quebec and Hydro Quebec
• Negotiate long-term stably-priced contract
• Invest in new transmission infrastructure to
• Allow more non-carbon base-load power into
  Vermont
• Support intermittent renewable resources by
  providing back-up system power

19
VERMONT YANKEE RAMP DOWN
STRATEGY

• Decrease purchases from Vermont Yankee over 20
  years
• Allows time and flexibility to develop new
  renewable resources while keeping costs lower
• Avoids market contracts that are likely to be
  dirtier and more expensive
• But safety is non-negotiable

20
COST TO REPLACE
VERMONT YANKEE
21
EMISSIONS PROFILES OF VY
REPLACEMENT OPTIONS
22
THE GREEN GRID
STRATEGY

• Upgrade grid to distribute in-state renewable
  generation
• Increase transmission capacity to import from
  Hydro-Quebec and other low-emission resources
• Deploy smart technologies to improve our grid
  and our customers energy efficiency

23
CONCLUSION

• The current, enviable power mix of low cost, low
  emission is coming to an end
• We have opportunity to set a new direction
• GMPs plan offers a future of energy at best
  cost, lowest carbon, and as reliable as possible
• Achieving the vision is dependent on the
  involvement and acceptance of many stakeholders

24
NEXT STEPS

• A Call to Action
• Public
• Government
• Business