WEST VIRGINIA DIVISION OF ENERGY

West Virginia’s Power Generating Landscape

WEST VIRGINIA DIVISION OF ENERGY

West Virginia Net Electric Generation, 2015

Coal 95.3%

Wind 2.3% Other 4.7%

Hydro 1.9%

Natural Gas 0.3%

Other 0.2%

(solar, petroleum, etc.)

WEST VIRGINIA DIVISION OF ENERGY

WEST VIRGINIA DIVISION OF ENERGY

West Virginia Coal for Foreign Distribution, 2002-2014 50000 45000

Thousand Short Tons

40000 35000 30000 25000 20000 15000 10000 5000 0 2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

WEST VIRGINIA DIVISION OF ENERGY

WEST VIRGINIA DIVISION OF ENERGY

Consensus Forecast for WV Coal Production (million short tons), 2014 120

115

110

105

100

95

90

85

80

EIA

EVA

CBER

WVU

Consensus Forecast

WEST VIRGINIA DIVISION OF ENERGY

Coal Distribution to West Virginia’s Electric Power Sector, 2006-2014 45,000,000 40,000,000 35,000,000

Tons

30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 2006

2007

2008

Total Coal to WV Power

2009

2010

WV Coal to WV Power

2011

2012

2013

2014

Imported Coal to WV Power Source: EIA

WEST VIRGINIA DIVISION OF ENERGY

U.S. Coal Production and Exports 1990 - 2040

WEST VIRGINIA DIVISION OF ENERGY

Weekly Spot Prices: Appalachian Coal vs. Natural Gas 7 6

$/MMBTU

5 4 3 2 1 0

Natural Gas

Northern Appalachia

Central Appalachia Source: EIA

WEST VIRGINIA DIVISION OF ENERGY

West Virginia Natural Gas Production 800

Year 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Natural Gas Production (in Mcf) 202,130,029 202,061,508 210,513,371 216,934,506 223,149,384 233,970,534 257,301,632 265,315,404 297,876,644 400,791,090 538,759,150 742,375,637

From Marcellus Shale (in Mcf) -* -* -* 853,565 4,555,266 10,065,002 19,325,834 33,640,837 74,439,147 149,915,861 301,700,000 541,300,000

*West Virginia did not independently record Marcellus production before 2005.

700 600 500

400 300 200 100

Natural Gas Production in billion

0

Source: WV Geological and Economic Survey

WEST VIRGINIA DIVISION OF ENERGY

WEST VIRGINIA DIVISION OF ENERGY

Levelized Cost of Electricity for New Generation Resources, Projected for 2019 140 120

2012 $/MWh

100

80 60 40 20 0 Conventional Coal Integrated Coal- Natural Gas-fired Natural Gas-fired Advanced Nuclear Gasification Conventional Conventional Combined Cycle Combined Cycle Combustion (IGCC) Turbine

Wind

Solar PV

Source: EIA Annual Energy Outlook 2014

WEST VIRGINIA DIVISION OF ENERGY

World Energy Consumption

Source: EIA International Energy Outlook

WEST VIRGINIA DIVISION OF ENERGY

Coal: China vs. US • China is building about one coal-fired plant every two days (155 permitted in 2015) • China has 820 GW of coal capacity, almost 3 times the coal capacity of the U.S.

• U.S. coal capacity retired in 2015 was 5% of nation’s coal capacity • Half of the retired capacity is in three states: Ohio, Georgia, and Kentucky China

U.S.

WEST VIRGINIA DIVISION OF ENERGY

WEST VIRGINIA DIVISION OF ENERGY

PJM Territory Served

WEST VIRGINIA DIVISION OF ENERGY

Evolving Generation Mix in PJM

WEST VIRGINIA DIVISION OF ENERGY

Generation Deactivations

WEST VIRGINIA DIVISION OF ENERGY

Hydro Power Licensed WV Hydro Facilities Name

Capacity (MW) Licensee Belleville 42.0 American Minicipal Power, Inc Dam No. 4 1.9 PE Hydro Generation LLC Dam No. 5 1.2 PE Hydro Generation LLC Hawks Nest & Glen Ferris 108.2 Hawks Nest Hydro, LLC Jennings Randolph 14.0 Fairlawn Hydroelectric Co., LLC Lake Lynn 51.2 Lake Lynn Generation, LLC London/Marmet 28.8 Appalachian Power Co. (VA) Millville 2.8 PE Hydro Generation LLC New Martinsville 35.7 City of New Martinsville (WV) Racine 47.5 AEP Generation Resources, Inc. Summersville 80.0 City of Summersville (WV) Willow Island L&D 35.0 American Minicipal Power, Inc Winfield 14.8 Appalachian Power Co. (VA)

Waterway Ohio River Potomac River Potomac River New River Potomac River Monongahela River Kanawha River Shenandoah River Ohio River Ohio River Gauley River Ohio River Kanawha River

Hawks Nest Hydro Facility

Total Capacity: 463.1 MW WEST VIRGINIA DIVISION OF ENERGY

Hydro Power, Continued Preliminary Permitted WV Hydro Facilities Name Hildebrand Lock & Dam New Cumberland Locks & Dam Stonewall Jackson Sutton Jennings Randolph Tygart

Capacity (MW) 7.5 49.8 0.3 9.2 14 30

Licensee Lock+Hydro Friends Fund XLVI FFP Project 121 LLC Mahoning Hydropower, LLC James R. Robertson Fairlawn Hydroelectric Co. Tygart LLC

Waterway Monongahela River Ohio River West Fork River Elk River North Branch Potomac Tygart River

Total Preliminary Permit Capacity: 110.8 MW Opekiska Lock and Dam

WEST VIRGINIA DIVISION OF ENERGY

Wind Power WV Wind Farms Name Beech Ridge Energy, LLC Laurel Mountain Mountaineer Wind Energy Center NedPower Mount Storm Pinnacle Wind Force, LLC

Name New Creek*

Operating Capacity (MW) 100.5 97.6 66.0 264.0 55.0

Operator Invenergy Services, LLC AES Wind Generation, Inc. FPL Energy, LLC Shell Wind Energy, Inc. Edison Mission Energy

Under Construction Capacity (MW) Operator 103.0 Enbridge

County Greenbrier Randolph Tucker Grant Mineral

County Grant

*A construction extension was granted by the PSC in September 2014. AES Wind Generation, Inc. sold New Creek project to Enbridge in 2016.

Operating Capacity: 583.1 MW

NedPower Mount Storm

WEST VIRGINIA DIVISION OF ENERGY

Solar Generation West Virginia Solar Capacity Growth October 2006 – February 2016 3

2.80729 MW 2.5

MW

2

1.5

1

0.5

0

Oct-06

Feb-08

Jul-09

Nov-10

Apr-12

Aug-13

Dec-14

Aug-15

Feb-16 Source: PJM GATS Database

WEST VIRGINIA DIVISION OF ENERGY

Solar Thin Films Solar Parks Project • Solar Thin Films to construct three photovoltaic (PV) installations totaling 35 MW • 15MW in Fayette County • 10 MW in Sam Black Church • 10 MW in Nicholas County

WEST VIRGINIA DIVISION OF ENERGY

New Opportunities

WEST VIRGINIA DIVISION OF ENERGY

Thank you.

WEST VIRGINIA DIVISION OF ENERGY