The Role of Coal Generationin aWorld of Greenhouse GasRegulation

NARUC Summer MeetingNew York City

July 17, 2007Jackson E. Reasor, President & CEOOld Dominion Electric Cooperative

Old Dominion Electric CooperativeGlen Allen, Virginia

Power provider for 12 distribution electric cooperatives in Virginia, Maryland and Delaware

Serves over 450,000 member-owned meters or about 1 million customers

Ownership interest in coal, nuclear and gas generating plants

Overview:

Coal must be a part of our energy mix

No simple solution for climate issues

Technology improvements are needed across the board

Electricity Demand Growing 40%

2000

2500

3000

3500

4000

4500

5000

5500

2004 2010 2025

Dem

and

(mill

ion

mW

h)

Source: EIA Annual Energy Outlook 2007

Capacity Margins Lowest Since 2001

0%

5%

10%

15%

20%

25%

2001 2002 2003 2004 2005

Source: EIA Electric Power Annual 2005

Capacity Margins Forecast

0

2

4

6

8

10

12

14

16

2005 2007 2009 2011 2013 2015Source: NERC ES&D 2006 Reserve Margin Forecast

PJM as Part of the Eastern Interconnection

KEY STATISTICS - TODAYPJM member companies 400+millions of people served 51peak load in megawatts 144,796MWs of generating capacity 164,634GWh of annual energy 728,000generation sources 1,271area served 13 states + DCInternal/external tie lines 247+

Transmission Expansion Drivers

KEY STATISTICS - 2020

PJM member companies

400+millions of people served

55peak load in megawatts

190,000MWs of generating capacity

220,000GWh of annual energy

900,000generation sources

1,300+area served

13 states + DCInternal/external tie lines

247+

Old Dominion Projected Loads and Capacity Resources

0500

10001500200025003000350040004500

MW

Baseload

Projected Loads

2008

2013

2018

Peaking

Capacity Purchases

Total US Electricity Generation: 2005 EIA

Non-hydro Renewable

1.6%Hydropower

6.7%

Nuclear20.1%

Natural Gas17.4%

Other Fossil3.0%

Coal w/o CCS51.2%

3826 million mWh

Source: EPRI

Total Electricity Generation: 2030 EIA Base

Natural Gas14%

Nuclear16%

Hydropower6%

Non-Hydro Renewable

3%

Other Fossil2%

Coal w/o CCS59%

5406 million mWh

Source: EPRI

Total US Electricity Generation: 2030 EPRI

Coal w/o CCS38%

Nuclear25%

Hydropower5%

Coal with CCS15%

Other Fossil1%

Natural Gas9%

Non-Hydro Renewable

7%

5401 million mWh

Source: EPRI

Comparing Future Scenarios

Natural Gas14%

Nuclear16%

Hydropower6%

Non-Hydro Renewable

3%

Other Fossil2%

Coal w/o CCS59%

Coal w/o CCS38%

Nuclear25%

Hydropower5%

Coal with CCS15%

Other Fossil1%

Natural Gas9%

Non-Hydro Renewable

7%

EIA Reference Case EPRI Technology Case

Review:

Coal must be a part of our energy mix

No simple solution for climate issues

Technology improvements are needed across the board