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EPA ESPS for OUC Chip Merriam

Vice President - Legislative, Regulatory & Compliance July 8, 2015

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Emission Changes

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Possible Timeline for Environmental Regulatory Requirements for the Utility Industry

Ozone

PM2.5

'08 '09 '10 '11 '12 '13 '14 '15 '16 ‘20

Beginning CAIR Phase I Seasonal NOx Cap

HAPs MACT proposed

rule

Implement CSAPR Seasonal NOx

Begin CAIR

Phase I Annual

SO2 Cap

Beginning Cross State Air Pollution Rule & NOx Caps

Next PM-2.5 NAAQS Revision

Next Ozone NAAQS Revision

SO2 Primary NAAQS

SO2/NO2 Secondary

NAAQS

NO2 Primary NAAQS

SO2/NO2

New PM-2.5 NAAQS Designations

CAMR & Delisting Rule vacated

Hg/HAPS

Final EPA Nonattainment Designations

PM-2.5 SIPs due (‘06)

Proposed CAIR Replacement Rule Expected

HAPS MACT final rule expected

CAIR Vacated

HAPS MACT Compliance 3 yrs

after final rule

CAIR Remanded

CAIR/ CSAPR

Begin CAIR

Phase I Annual

NOx Cap

PM-2.5 SIPs due (‘97)

316(b) proposed rule expected

316(b) final rule expected

316(b) Compliance 3-4 yrs after final rule Effluent

Guidelines proposed rule

expected

Water

Effluent Guidelines Final rule expected Effluent Guidelines

Compliance 3-5 yrs after final rule Waters of The US final rule

Begin Compliance Requirements under

Final CCB Rule (ground water

monitoring, double monitors, closure,

dry ash conversion) Ash

Proposed Rule for CCBs Management

Final Rule for CCBs Mgmt

Final CAIR Replacement Rule Expected

Compliance with Cross State Air Pollution Rule

CO2

CO2 Regulation

Reconsidered Ozone NAAQS

Clean Power Plan

Revised Ozone NAAQS

-- adapted from Wegman (EPA 2003) Updated 2.15.10

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Of Course, It’s Easy

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Understanding Impacts

•  Understanding Central Florida’s Customer Base

•  OUC is customer-owned. There are no Stockholders

•  Most Reliable Vertically Integrated Utility in the State of Florida

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•  Zero stormwater discharge to waters of the United States

•  6% efficiencies already in place. Units come off-line according to EPA’s 2025 Policy Case

•  Utilization of landfill gas displacing coal •  Two pipelines into Florida •  Proposed third pipeline to be constructed by

IOU •  Hurricane season realities from the 2004-2006

Hurricane Season

Understanding Impacts (cont.)

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UNDERSTANDING IMPACTS (CONT.)

•  Newest of Florida Coal Plants would be retired with stranded costs due to age and improvements to meet Section 112 requirements

•  Florida is an island in regard to Transmission •  No new Nuclear under construction •  20% Solar Capacity Factor •  OUC has no authority to set rules outside our generation

abilities •  FDEP will have to seek legislative ratification to set new

rules for Building Blocks 3 & 4 •  Results in a 40-45% rate increase for OUC ratepayers

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Overall emission rate change 1,200 lbs CO2/MWh

740  lbs  CO2/Mwh  

Emission Formula  

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2020 Cliff  

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Suggestions  

• Work  with  States  to  Extend  the  Coal  Power  Plant  dura?on  out  to  each  plant’s  capital  life  cycle  

•  Allow  for  real  construc?on  starts  and  limited  labor  pool  for  new  construc?on.    Possibly  use  date  of  plant  construc?on  to  set  a  priority  

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Coal-Burning Power Plant Countdown  

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Questions?

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