Reliable & ResilientThe Value of Our Existing Coal Fleet

An Assessment of Measures to Improve Reliability & Efficiency While Reducing Emissions

May 2014 – www.nationalcoalcouncil.org

National Coal Council

The National Coal Council provides advice and recommendations

to the Secretary of Energy on general policy matters

relating to coal and the coal industry.

NCC is a Federal Advisory Committee organized under FACA legislation.

Study Leadership & Lead Authors

• NCC Chair ~ John Eaves, President & CEO, Arch Coal• Coal Policy Comt. Chair ~ Fred Palmer, Sr. VP Peabody Energy• CPC Vice Chair ~ Bill Brownell, Chairman, Hunton & Williams

• Study Chair & NCC Vice Chair ~ Jeff Wallace, VP, Southern Co.• Study Technical Chair ~ Steve Wilson, GM R&D, Southern Co.

• Lead Author ~ Doug Carter, Independent Energy Consultant• Author ~ Ed Cichanowicz, Independent Engineering

Consultant• Author ~ EPRI Team lead by Stu Dalton, Sr. Govt. Rep.

Secretary Moniz’s Request

“What can industry and the Department of Energy, separately and jointly, do to facilitate

enhancing the capacity, efficiency and emissions profiles of the existing coal

generation fleet in the United States through application of new and advanced technology?

Such a study would also address the jobs implications of modification and addition of

equipment at existing coal fired power plants.”

January 31st, 2014

Polar Vortex 2014

“This country did not just dodge a bullet – we dodged a cannonball.” Nick Akins, CEO, American Electric Power

Polar Vortex 2014

Projected 2020 Energy Capacity by Fuel

Estimated U.S. Primary Energy Consumption

U.S. Electricity Generation by Energy Source

U.S. Generation by Fuel 2012

Generation Fuel Mix for All Power Generation Entities

Generation Fuel Mix

37%

30%

19%

12%

1%0%

5%

10%

15%

20%

25%

30%

35%

40%

Coal Gas Nuclear Renewables* Oil

• Including 7% Hydro

Source: 2012 EIA data (all sectors)

Total Generation: 4,054 billion kWh

Total Industry (all electric utilities)

Generation Fuel Mix for Cooperatives

58%

17%12% 13%

0%

10%

20%

30%

40%

50%

60%

Coal Gas Nuclear Renewables*

Source: EIA and RUS data

*including hydro (10%)

Fuel MixRural Electric Distribution Co-ops

Generation Fuel Mix for Public Power UtilitiesSource: AAPA

Levelized Cost of Electricity

Value of Existing Coal Fleet: Electricity Cost Savings

Source of U.S. Electric PowerSource: Data from DOE/EIA

Average Retail Electricity Prices by State 2012

Source: Data from DOE/EIA

Fuel Price Volatility

Future Fuel PricesSource: Data from AEO-2014, DOE-EIA

“Boom” is Still Ahead for U.S.

Impact of Energy Costs on Discretionary Income

Source: American Association of Blacks in Energy

30% of Global Coal is in the U.S.

U.S. Coal-Fueled Electricity Supply Chain

Figure Courtesy of Peabody Energy

Increasing Coal Use - Declining Emissions

Power Plant Emission Trends

U.S. GDP 1947-2013

Annual U.S. Electricity Generation

Monthly Generation from Natural Gas & Coal

Henry Hub Spot Prices

Natural Gas Price Predictions vs. Actual Price

U.S. Coal-Fueled Generating Capacity Additions

Coal Generating Capacity by StateBased on EIA-FM 860 data

Projected Coal Capacity in 2025Based on EIA-FM 860 data

DOE RD&D Budget for Coal Use Technologies

Power Plant Efficiency Opportunities

Coal Moisture Impact on EfficiencySource: Courtesy of E.ON.

Condenser Fouling & Turbine Heat RateSource: Australian Government Department of the Environment

Schematic of Topping Cycle for Conventional Rankine Power Station

CCS Pilot & Demonstration Plant Timeline

www.nationalcoalcouncil.orgwww.nationalcoalcouncil.org/NEWS/NCCValueExistingCoalFleet.pdf

Janet Gellici. EVP & Chief Operating Officer, NCC202-223-1191 ~ jgellici@NCC1.org