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Dependable Power. Dependable People.

Dependable Power. Dependable People. The mission of Santee Cooper is to be the state’s leading resource for improving the quality of life for the people of South Carolina. Santee Cooper. customer-focused with commitments to. is.

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Dependable Power. Dependable People.

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  1. Dependable Power. Dependable People.

  2. The mission of Santee Cooperis to be the state’s leading resource for improving the quality of life for the people of South Carolina.

  3. Santee Cooper customer-focused with commitments to is Low-Cost /Dependable Power Dependable People Quality Service Environmental Stewardship

  4. Santee Cooper Generation Moncks Corner Jefferies Hydro 1, 2, 3, 4 & 6 - 1942 - 128 MW

  5. Santee Cooper Generation Moncks Corner Jefferies Steam 1 & 2 - Oil - 1954 - 92 MW Jefferies Steam 3 & 4 - Coal - 1970 - 306 MW

  6. Santee Cooper Generation Georgetown Winyah Steam 1 - Coal - 1975 - 295 MW Winyah Steam 2 - Coal - 1977 - 295 MW Winyah Steam 3 - Coal - 1980 - 295 MW Winyah Steam 4 - Coal - 1981 - 270 MW

  7. Santee Cooper Generation Conway Grainger Steam 1& 2 - Coal - 1966 - 170 MW

  8. Santee Cooper Generation Cross Cross Steam 2 - Coal - 1983 - 540 MW Cross Steam 1 - Coal - 1995 - 620 MW * Projected Cross Steam 3 - Coal - 2007* - 580 MW Cross Steam 4 - Coal - 2009* - 580 MW

  9. Santee Cooper Generation Schedule for Additional Generating Capability Cross Steam 3 - Coal - 2007* - 600 MW Class Cross Steam 4 - Coal - 2009* - 600 MW Class

  10. Pollution Control Technology SO2 7 coal-fired units scrubbed for SO2 removal in GA, SC, & NC 5 of 7 are Santee Cooper units NOX Santee Cooper has committed to: ● Spend $280 M to comply with NOX SIP Call Requirements ● Install SCR Technology on Cross & Winyah Units andLow-NOX Burners on others

  11. NSR Settlement JULY 2000 SANTEE COOPER, LIKE MANY OTHER COAL FIRED UTILITIES, RECEIVED A SECTION 114 REQUEST FOR INFORMATION REGARDING OPERATION AND MAINTENANCE OF ITS COAL FIRED UNITS FROM THE MID-1970’S TO THE PRESENT

  12. NSR Settlement 2000-2002 TIME FRAME -PROVIDED A LARGE NUMBER OF DOCUMENTS IN RESPONSE TO THE 114 REQUEST - BEGAN DISCUSSIONS WITH EPA REGARDING A POSSIBLE RESOLUTION THAT WOULD BE CONSISTENT WITH SANTEE COOPER’S BUSINESS PLAN -NO RESOLUTION WAS REACHED DURING TIME FRAME -EPA’S ENFORCEMENT POLICIES BEGAN SHIFTING

  13. NSR Settlement • 2003-2004 TIME FRAME • -SANTEE COOPER BEGAN PERMITTING PROCESS WITH EPA AND DHEC FOR CROSS UNITS 3 AND 4 • A “BEGIN CONSTRUCTION” ISSUE AROSE WITH SOME CONSTRUCTION ACTIVITIES AT THE PLANT SITE • DHEC, EPA CONTACTED SANTEE COOPER ABOUT POTENTIAL ENFORCEMENT ACTIVITY WITH REGARD TO NSR AND “BEGIN CONSTRUCTION” ISSUES • -SETTLEMENT DISCUSSIONS RESUMED

  14. NSR Settlement MARCH 2004 SANTEE COOPER REACHED A SETTLEMENT WITH DHEC, EPA AND DOJ WHICH RESOLVES PAST AND FUTURE NSR LIABILITY, RESOLVES “BEGIN CONSTRUCTION” ISSUES AND IS CONSISTENT WITH ITS BUSINESS PLAN FOR FUTURE POLLUTION CONTROL CONSENT DECREE IS ENTERED JUNE 2004

  15. NSR Settlement Agreement with EPA & DHEC provides: ● Certainty ● Operational Flexibility ● Opportunity to move forward with projects

  16. NSR Settlement THREE MAJOR COMPONENTS ● Pollution Controls ● Civil Penalties ● Environmental Projects

  17. NSR Settlement Santee Cooper has agreed to spend approximately $140 M on additional pollution controls: ● Scrubbers and Scrubber Upgrades for SO2 Reduction ● Year-Round Operation of SCRs for NOX Reduction ● Additional PM Controls

  18. NSR Settlement Costs of Settlement Compare Favorably to Future Control obligations Largest Costs ● 2008 - 50M for Scrubbers at Winyah 1 and 2 ● 2012 – Possible Costs of 50 M for Scrubber Upgrades at Winyah 3 and 4 and PM Upgrades at Jefferies and Grainger

  19. NSR Settlement Benefits of Additional Controls ● SO2 reductions allow significant savings in purchase of SO2 credits ● Additional controls allow fuel flexibility ● Pollutant reductions allow for permitting through netting process

  20. NSR Settlement Results of Additional Controls ● SO2 Reductions of 50%(measured in lbs. per unit of electricity generated) ● NOX Reductions of 70% ● State of the Art Controls on nearly 90% of Santee Cooper’s coal-fired generation

  21. NSR Settlement Santee Cooper has agreed to: - Civil Penalties Totaling 2 Million Dollars ● 1.3 Million to EPA ● .7 Million to DHEC -Environmental Projects Totaling 4.5 Million

  22. NSR Settlement ● Environmentally Beneficial Projects - Land Conservation Project - Energy Efficient Technologies Project - Demand-Side Management Project - Clean-Diesel School Bus Retrofit Project - Environmental Management System

  23. NSR Settlement CHALLENGES OF SETTLEMENT -COMPLICATED CONSENT DECREE SUBJECT TO INTERPRETATION -LOTS OF RECORDKEEPING REQUIREMENTS -LOTS OF DEADLINES -LESS MARGIN FOR ERROR IN OPERATION

  24. NSR Settlement BENEFITS OF SETTLEMENT CLEAR PATH TO PERMITTING CROSS 3 AND 4 ● 1100 Megawatts of New Coal Fired Generation – Permit Unopposed and Un-appealed ● 1.4 Billion Dollars of New Construction Underway Since January 2004

  25. NSR Settlement BENEFITS OF SETTLEMENT -Avoided Cost and Risk of High Profile Environmental Suit -Resolved Potential NSR Liability within Framework of Business Plan -Maintained Operational Flexibility -Maintained Support of Environmental Community

  26. NSR Settlement DOJ SAID ABOUT SETTLEMENT: “Today’s settlement again demonstrates this Administration’s commitment to secure major pollution reductions from coal fired plants. The citizens of South Carolina will benefit from significant improvements in air quality. Santee Cooper deserves credit for stepping up to the plate and resolving this matter in a way that promotes the public interest.”

  27. NSR Settlement EPA SAID ABOUT SETTLEMENT: “The people of South Carolina will soon benefit from the responsible actions of Santee Cooper in cleaning up the emissions from their facilities”

  28. NSR Settlement Light Reading -Consent Decree can be downloaded at www.epa.gov/compliance/resources/decrees

  29. Dependable Power. Dependable People.

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