Exposing the Myth Showing that America can have a Clean Environment and Affordable Energy

Exposing the Myth

Showing that America can have a Clean Environment and Affordable

Energy

Possibility ThinkingPossibility Thinking

Empowering AmericaEmpowering America

U.S. Electricity Fuel Mix

Other*2.2%

Gas16.1%

Hydro7.2%

Petroleum, 2.9% Coal

51.8%

Nuclear, 19.8%

electricity demand now accounts for 41% of total U.S. energy consumption compared to 20% in 1970

between 1970 and 1999, each percentage increase in GDP was equaled by just over a one-percent increase in electricity usage

Source: U.S. Energy Information Administration - 2002

Growing DemandGrowing Demand

0

500

1000

1500

2000

2500

1970 1980 1990 2000 2010 2020

Coal

Petroleum

Natural Gas

NuclearRenewables

ProjectionsHistory

U.S. Electricity Demand1970-Projected to 2020(in billion kilowatthours)

Source: U.S. Energy Information Administration, 2002

Affordable Energy … GOOD!Affordable Energy … GOOD!

Source: U.S. Energy Information Administration, 2002

$1.22

$2.58 $2.53

$0.00

$1.00

$2.00

$3.00

Coal Gas Oil

Generation Costs by Fuel (per mBtu's)

Empowering FamiliesEmpowering Families

*Household energy expenditures include both residential and transportation energy costs

Source: U.S. Department of Energy - 1997

AnnualIncome

Over$50,000 $25,000

Under$10,000

4%

13%

29%

AnnualIncome

Over$50,000 $25,000

Under$10,000

4%

13%

29%

$10,000 to

Household EnergyExpendituresBy Income*

Empowering Economic GrowthEmpowering Economic Growth

$163 to $659 billion in increased economic output

$40 to $224 billion in increased household earnings

800,000 to 6.4 million additional American jobs

The value to the U.S. economy of using domestic coal reserves to generate electricity in the year 2010 will be between:

Electricity from Coal

Empowering America

Based uponProjected Economic ImpactsOf Coal Production and Utilization

Dr. Adam RoseBo YangPennsylvania State University

Peer Review byDr. William A. SchafferProfessor EmeritusGeorgia Institute of Technology


Empowering America




Empowering KentuckyEmpowering Kentucky

$11.2 to $36.2 billion in increased economic output

$3 to $10 billion in increased household earnings

73,000 to 317,000 additional Kentucky jobs

The value to the Kentucky’s economy of using domestic coal reserves to generate electricity in the year 2010 will be between:


Empowering America





Empowering America




Exposing the MythExposing the Myth

Coal-based electricity has nearly tripled

Emissions of health related pollutants reduced by nearly one-third

+188%

-32%

Since1970

Source: U.S. Department of Energy and Environmental Protection Agency, 2002

Continuing ProgressContinuing Progress

4.37

1.01 0.85 1.07

0.43 0.38 0.47 0.02 0.02

0

1

2

3

4

5

Increasingly Clean Power

1970 2001 2010

SO2 NOx PM10

Source: U.S. Environmental Protection Agency and Department of Energy, 2002

Guaranteeing Continued ProgressGuaranteeing Continued Progress

$500 million SCR installation at LGE Trimble County station

revolutionary multi-pollutant control device to be tested at KU Ghent plant

$70 million investment at WKE Coleman station for SO2 controls

LGE Upgrades at Existing Facilities

LGE’s Trimble County station is one of the lowest emitters of NOx in the nation thanks to the installation of Selective Catalytic Reduction technology.

Guaranteeing Continued ProgressGuaranteeing Continued Progress

$200 million upgrade at EKPC Spurlock Station

Conducting initial engineering and planning for SCR’s or other environmental upgrades at Cooper station

EKPC Upgrades at Existing Facilities

EKPC’s $200 million investment in upgrades at the Spurlock Station include the installation of SCR’s and a new precipitator.

Modeling the WayModeling the Way

SO2 capture efficiency greater than 99%

NOx emissions controlled at 0.15 lbs/106 Btu

20% reduction of CO2 emissions compared to typical pulverized coal plant

Kentucky Pioneer IGCC Project



NOx emissions controlled at 0.08 lbs/106 Btu

exceeds the 2018 requirements of the Clear Skies proposal

Thoroughbred Energy Campus


$400 million investment in 268-MWe CFB unit at existing Spurlock station


NOx emissions controlled at 0.07 to 0.10 lbs/106 Btu

EKPC Gilbert Unit Expansion

Keys for SuccessKeys for Success

Access to electricity is essential to economic growth and prosperity in Kentucky

Energy costs matter both to Kentucky’s businesses and working families

Technology provides the key to increasing environmental performance of power plants that use coal

Possibility ThinkingPossibility Thinking

Documents

Exposing the Myth Showing that America can have a Clean Environment and Affordable Energy