GEORGIA POWER

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GEORGIA POWERS SMALL POWER PRODUCERS
FUNDAMENTALS
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What is Renewable Energy?

• Energy produced by
• solar,
• wind,
• biomass,
• landfill gas,
• ocean,
• (including tidal, wave, current and thermal)
• geothermal,
• municipal solid waste, or
• new hydroelectric generation capacity
• Includes capacity achieved from increased
  efficiency or additions of new capacity at an
  existing hydroelectric project

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Georgia Power and Renewables

• QF Contracts since1982
• 1982 hydro
• 2000 biomass
• Approximately 55 MW capacity energy contracts
• Approximately 32 MW energy only contracts
• New interest in Renewables
• Higher Avoided Costs
• Production Tax Credits

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What is Green Energy?

• Green Energy Program
• Tariff Design approved in July 2003
• Voluntary Program
• Not for profit
• Self-funding
• Non-participants unharmed
• Program costs paid by participants
• Any losses absorbed by shareholders

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What is Green Energy?

• Green Energy Program
• Monthly Premium per 100 kWh block
• Originally 5.50 per block
• Designed to recover costs of portfolio mix and
  program costs
• Currently 4.50 per block
• Adjusted Fall 2006 after contracting with
  landfill gas to energy provider

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What is Green Energy?

• Green Energy Program
• 12 month commitment
• Customers can opt out each year
• Minimum purchase amount determined by customer
  class

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What is Green Energy?

• Residential 1 block/month
• Small business 2 blocks/month
• Medium business 25 blocks/month
• Large business 400 blocks/month
• Relaxed minimums for non-profit groups

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What is Green Energy?

• March 2004 resource criteria clarified
• Solar thermal electric or photovoltaic (PV)
  energy
• Wind power
• Hydro resources certified by the Low Impact
  Hydropower Institute
• Landfill gas
• Solid, liquid, and gaseous forms of all woody
  waste biomass Excluding
• Black Liquor
• Wood that has been coated with paints, plastics,
  or Formica
• Wood that has been treated for preservation with
  materials containing halogens, chlorine or halide
  compounds like CCA-treated materials, or arsenic.
  (CCA chromated copper arsenate)
• Herbaceous agricultural waste and residue
• Digester gas from poultry waste (excluding
  carcasses)
• Sewage methane gas

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What is Green Energy?

• Only new resources
• Begin operation on or after April 1, 2001
• New Renewable Energy Production Boundaries
• Georgia, Alabama, Florida, Kentucky, Mississippi,
  North Carolina, South Carolina, and Tennessee
• Biomass Air Emissions Standards (NOx)
• Online starting July 2003 through May 2005
• 1.77 lbs/ MWH
• Online June 2005 through May 2008
• 1.5 lbs/ MWH
• Must have portfolio mix of at least 2 solar or
  15 wind and solar by year 3 of program

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What is Green Energy?
Source Typical Production Costs ( per kWh)
Hydropower 4-7
Landfill Methane 4-8
Biomass 5-10
Wind 4-15
Solar gt50
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Georgia Power Green Energy Program

• Original projection approximately 1 of customer
  base
• About 19,000 customers
• About 37,000 blocks
• Initial source DeKalb County LFGE project
• Seminole Landfill
• 3 MW facility (22,500 MWh annually)
• Online and delivering since October 2006
• Small solar supply from RNR tariff
• Approximately 50kW
• Currently reviewing solar and/or wind resource
  options

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Georgia Power Green Energy Program

• Current Enrollment
• 2,477 customers
• 4,184 blocks
• Approximately 22 of program supply