Appalachian Power Update Ron Jefferson Manager External Affairs

Appalachian Power Update Ron Jefferson, Manager External Affairs, Appalachian Power May 26, 2016

Appalachian Power Operates in three states serving approximately 957, 000 customers (VA - 526, 000). ~6, 400 MW of directly-owned generation p. 2

Rate Stability Virginia 11. 56 ₵/k. Wh 2010 Residential Rates Stable Rates 11. 23 ₵/k. Wh 2016 p. 3

Generation Coal Amos Plant 3 units / 2, 930 MW 1 unit / 1, 305 MW Mountaineer Plant p. 4

Generation Gas Virginia Clinch River / 2 units / 484 MW West Virginia Ceredo / 6 units / 450 MW Ohio Dresden / 1 units / 555 MW Clinch River Plant p. 5

Generation Pump Storage / Hydro Virginia Smith Mountain / 5 units / 615 MW Leesville / 2 units / 5 MW Claytor / 4 units / 15 MW Byllesby / 4 units / 4 MW Buck / 3 units / 3 MW Niagara / 2 units / 1 MW West Virginia Winfield / 3 units / 9 MW London / 3 units / 7 MW Marmet / 3 units / 6 MW Smith Mountain Dam p. 6

Generation Purchase Power Agreements PPAs Wind Beech Ridge (WV) Fowler Ridge (IN) Camp Grove (IL) Grand Ridge (IL) Hydro Summersville (WV) 100. 5 MW 100 MW 75 MW 100. 5 MW 48 MW p. 7

Integrated Resource Plan 2016 APCo Nameplate Capacity Mix p. 8

Integrated Resource Plan 2030 APCo Nameplate Capacity Mix p. 9

Integrated Resource Plan 2016 APCo Energy Mix p. 10

Integrated Resource Plan 2030 APCo Energy Mix p. 11

Clean Power Plan CO 2 Reductions Have Occurred ~30% Reduction in CO 2 (2005 -2015) p. 12

Clean Power Plan Emission Reductions Are Not Uniform • Emissions have increased in AR & LA • Majority of reductions occurred prior to 2012 EPA CPP baseline in OH & WV • Coal use has since been eliminated in KY & VA 66 p. 13

Transmission Virginia Projects Cloverdale Station Expansion 765 KV and 500 k. V Yards p. 14