Preparing for a post carbon future

25th AnnualGlobal Power Markets

Conference

Brave New WorldPreparing for a Post-Carbon Future

April 11 – 13, 2010Las Vegas, Nevada

Peter MaloneyChief Editor, Platts Global Power Report

Global Power Markets 2010: CEO Round Table

Bill Number Sponsor(s) Cap & trade Status Comment

American Clean Energy and Security Act H.B. 2454 Waxman-Markey yes

passed out of House June 26

Clean Energy Jobs and American Power Act S. 1733 Kerry-Boxer yes

passed out of Env. & Pub. Works Comit. Nov. 5

Dept. of Ag. Handles offsets

American Clean Energy Leadership S. 1462 Bingaman no

passed by Energy & Nat. Res. Comit. June 17 energy only

Clean Energy Partnerships Act S. 2729 Stabebnow no

referred to Sen. Env. & Pub. Works Comit. outline for offsets

Clean Energy Act S. 2776 Alexander-Webb nointroduced Nov. 1, 2009

nuclear power, loan guarantees

Carbon Limits and Energy for American's Renewal Act S. 2877 Cantwell-Collins no

introduced Dec.1, 2009; referred to finance committee cap and dividend

draft naKerry-Graham-

Liebermann unknown draft

US Climate change/energy bills


Climate Hot Air Index

0

50

100

150

200

250

105th(1997-98)

106th(1999-00)

107th(2001-02)

108th(2003-04)

109th(2005-06)

110th(2007-08)

Congress

leg

isla

tive

init

iati

ves


Electricity demandthree year rolling average % growth

-2

0

2

4

6

8

10

12

1950

1960

1970

1980

1990

2000

2010

2020

2030

Source: Energy Information Administration

Period Annual growth

1950s 9.8

1960s 7.3

1970s 4.7

1980s 2.9

1990s 2.4

2000-2008 0.9

2008-2035 1.0


Spot on-peak power prices

0

50

100

150

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300

3/3/

2008

5/3/

2008

7/3/

2008

9/3/

2008

11/3/

2008

1/3/

2009

3/3/

2009

5/3/

2009

7/3/

2009

9/3/

2009

11/3/

2009

1/3/

2010

$/M

W-m

on

th

Mass Hub

PJM Western HubNI Hub

Into SouthernSP15

Spot natural gas prices

0

2

4

6

8

10

12

14

16

18

3/3/

2008

5/3/

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7/3/

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11/3/

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1/3/

2010

$MM

Btu

AlgonquinColumbia Gas AppSoCal GasChicagoTransco Zone-3

A double whammy on pricing


• Acciona• AES Corp.• Cannon Power• enXco • E.ON• Eurus• EverPower• First Wind

• Heritage Sustainable Energy• Horizon Wind Energy• Iberdrola• Invenergy• John Deere• NaturEner• Next Era Energy Resources• Puget Sound Energy• Valero

Recipients of cash grants in lieu of PTCs under the ARRAtotal awards as of April 2010, $3 billion


• Kahuku Wind Power, $117 million, wind farm

• SAGE Electrochromics, $72 million, energy efficient window factory

• BrightSource Energy, $1.4 billion, solar power project

• Vogtle (Georgia Power, Oglethorpe Power, Municipal Electric Authority of Georgia,Dalton, Ga. ), $8.3 billion, two nuclear power units

• Solyndra, $535 million, cylindrical solar PV panel factory

• Beacon Power, $43 million, flywheel energy storage plant

• Nordic Windpower, $16 million, wind turbine assembly factory

• Red River Environmental Products, $245 million, activated carbon factory

• Ford Motor, $5.9 billion, more fuel efficient cars

• Nissan, $1.4 billion, electric cars and battery packs

• Tesla Motors, $465 million, battery packs and electric drive trains

• Fisker Automotive, $528.7 million, plug-in hybrid vehicles

Federal loan guarantee commitments


Power plants under construction in the US, by fuel

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2009 2010 2011 2012 2013

MW

COAL

Natural Gas

Nuclear

Solar

WIND


Power plants in development, by fuel

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

MW

COAL

Natural Gas

Nuclear

SOLAR

WIND


• Smart grid technologies

• Demand side management and energy efficiency

• New solar panels and solar cells

• Carbon capture and storage

• Flywheel storage

• Battery storage

• Electric vehicles

• Hybrid vehicles

Brave new technologies


David Crane,

President, Chief Executive

Officer


12

South Central

Western

Northeast

TexasCombined Scale1

Gas2,130MW

99%

Oil3,715 MW

53%

Gas1,430 MW

20%

Coal1,870 MW

27%

Coal7,560 MW

32%

Oil3,715 MW

16%

Nuclear1,175 MW

5%

1 Includes 115 MW as part of NRG’s Thermal assets. For combined scale, approximately 2,095 MW is dual-fuel capable. Reflects only domestic generation capacity as of December 31, 2009

Wind 345 MW

3%

Nuclear1,175 MW

10%

Coal

4,180 MW

37%Gas5,640 MW

50%Gas

10,660 MW45%Renewables

365 MW2%

Solar20 MW<1%

Coal1,495 MW52%

Gas1,355 MW

48%


13

Fuel Supply

Fuel Transportation

Power Generation

Transmission Distribution Retail(Customer)

• Oil, gas, coal companies

• Common carriers: Pipelines, Trains, Ships

• Investor and Government Owned Utilities

• Merchant Generator(NRG, etc.)

NRG

• From Generator to Distribution substation

• From Distribution substation to home or business

• Residential, commercial, and industrial

Reliant Energy

NRG US Wholesale generation totaling 23,475 MW (1)

• 10,660 MW gas

• 7,560 MW coal

• 3,715 MW oil

• 1,175 MW nuclear

• 365 MW renewables

NRG: The center of the power industry value chain.

(1) MW data as of December 31, 2009

Fortune 500– Ranked 12th Fastest Growing Company (2009)

Fortune 500– Ranked in top 10% for “Best Investment” (2008)

Platt’s 2007 Recipient of Energy Company and Industry Leader of the Year

Listed: NYSE (NRG)

Market Cap.: ~$6 billion; Employees: ~4,300

Generating Assets: ~23,500 MW, primarily in four domestic regions


14

Fossil fuels go to the customer, customers need to go to Renewables

ResourceDark=HigherLight=Lower

Renewables are:• Smaller• Broader• More local• Situationally dependent

Wind, SolarDistributed

Wind

MAB1

Biomass CHPPlasma

BiomassCorridor

RegionalCenters of Excellence

SolarPV

Solar CSP


Jack A. Fusco,President, Chief Executive

Officer


Southeast6,104 MW

25%

North3,350 MW

14%

West7,854 MW

31% Texas7,487 MW

30%

Baseload

4,080 MW

16%

Peaking

5,145 MW

21%

Intermediate

15,570 MW

63%

National Portfolio of nearly 25,000 MW


Calpine is the nation’s largest baseload renewable, natural gasand cogeneration power provider

Calpine is the nation’s largest baseload renewable, natural gasand cogeneration power provider

Modern

-

10

20

30

40

50

CPN DYN RRI NRG MIR

Age

(Ye

ars)

Efficient

Source: Energy Velocity (2008). Not adjusted for steam, and excluding non-fossil fuel generation.

Note: All DYN figures are shown pro forma, adjusted to reflect estimated impact of the sale of certain assets to LS Power during 2009.

-

500

1,000

1,500

2,000

2,500

CPN DYN MIR NRG RRI

CO

2 lb

s. /

MW

h

Clean

-

20,000

40,000

60,000

80,000

100,000

CPN NRG DYN RRI MIR

2008

Gen

erat

ion

(MW

h)

ScaleSource: Energy Velocity (2008).Source: Energy Velocity (2008).

Source: 2008 SEC filings, Energy Velocity.

6,000

8,000

10,000

12,000

14,000

CPN DYN RRI NRG MIR

Hea

t Ra

te (

btu/

KWh)

Our steam-adjusted heat rate is 7,231


Calpine: Positioned for the FutureCalpine: Positioned for the Future

TrendImpact on CCTG Fleet

Impact on Coal Fleet


Michael G. Morris,Chairman, President and

CEO


Serving 5.2 million customers in 11

states

ColumbusSouthern

Power20%

AppalachianPower13%

Indiana &Michigan

16%

All Others6%

PublicService of Oklahoma

5%

SouthwesternElectricPower

9%

Texas7%

KentuckyPower

2%

2009 Earnings Contribution

Residential32%

Commercial27%

Wholesale * 11%

2009 Retail Load Fuel Mix**

Nuclear6%

Natural Gas 22%

Hydro/Wind 6%

** Based on Capacity

AEP’s Regulated Utility PlatformAEP’s Regulated Utility Platform

OhioPower22%

Industrial30%

* Wholesale includes sales to municipal and cooperative power systems, other

wholesale, and other retail sales

Coal 66%


ACTIVE ACTIVE PROJECTSPROJECTS

FUTURE FUTURE DEVELOPMENTDEVELOPMENT

SPPSPP ERCOTERCOT PJMPJM PJM/PJM/MISOMISO

345 kV ERCOT Expansion

Partner: MidAmerican Energy (50%)

Estimated Cost: $1.4 billion

ROE: 9.96%

ETT COD: 2010-2017

170 miles of 765 kV

Partners: OG&E (50%) & Electric Transmission America (50%)

Estimated Cost: $500 million

ROE: 12.8%

Tallgrass COD: 2013-14

110 miles of 765 kV

Partners: Westar (50%) & Electric Transmission America (50%)

Estimated Cost: $400 million

ROE: 12.8%

Prairie Wind COD: 2013-14

275 miles of 765 kV

Partner: Allegheny Energy (50%)

Estimated Cost: $1.2 billion

ROE: 14.3%

PATH-WV COD: 2014

240 miles of 765 kV

Partner: Duke Energy (50%)

Estimated Cost: $1 billion

ROE: 12.54%

Pioneer COD: 2015

Regional Expansion of 765 kV Backbone

SPP EHV Overlay

Interregional EHV & Wind Integration Study

Partners: ATC, Exelon, MidAmerican Energy, Northwestern Energy, Xcel Energy

SMARTransmission Study

Additional CREZ spend of ~ $1.1 billion (COD 2012-2013, subject to a 6-month routing approval)

Other Projects Pending Transfer of ~ $600 million (COD 2010-2013)

ETT COD: various

Regional Expansion of 765 kV, 500 kV and 345 kV systems

PJM Expansion

700 miles of Proposed 765 kV

EHV Michigan/Ohio

SPPSPP ERCOTERCOT PJMPJM PJM/PJM/MISOMISO


Renewables Portfolio*

Wind PSO – 5 PPAs 591 MW SWEPCo – 1 PPA 79 MW APCo – 4 PPAs 376 MW I&M – 2 PPAs 150 MW KPCo – 1 PPA 100 MW AEP Ohio – 2 PPAs 110 MWTotal Regulated 1,406 MW

AEPEP – owned 311 MW AEPEP – 2 PPAs 177 MWNon-regulated 487 MW

Hydro (run-of-river)Regulated, owned/PPA 364 MW

SolarRegulated - PPA 10 MW

* Includes owned assets and long-term purchased power agreements (PPA)


Zin Smati,President, Chief Executive

Officer


24

Leader in ElectricityWorld’s largest IPP#5 power producer in EuropeCommitted to renewables: 13GW of renewable production at present

Leader in Natural Gas#1 purchaser in Europe#1 transporter and distributor in Europe#2 operator of European storage

Leader in LNGTrans-Atlantic leader in LNG industry, largest LNG tanker fleet#1 importer & buyer in Europe#1 importer into the U.S.

N o r t hN o r t h A m e r i c a A m e r i c a

Revenue: €4.6 bn Revenue: €4.6 bn 5,300 emp.5,300 emp.

S o u t hS o u t hA m e r i c aA m e r i c aRevenue: €2.6 Revenue: €2.6 bn 3,050 emp.bn 3,050 emp.

E u r o p eE u r o p eRevenue: €68.6 bn Revenue: €68.6 bn

181,920 emp.181,920 emp.

A f r i c aA f r i c aRevenue: €0.9 Revenue: €0.9 bn bn 3,530 emp.3,530 emp.

A s i a &A s i a &P a c i f i cP a c i f i cRevenue: €3.2 bn Revenue: €3.2 bn 6,200 emp.6,200 emp.

2009 revenues: €79.9 billion€79.9 billion 2009 EBITDA: €14.0 billion€14.0 billion Global workforce: 200,000 employees200,000 employees Worldwide Generating Capacity: 72,663 MW72,663 MW


25

Coal12%

Gas67%

Renewable21%

Current Fuel MixPower Generation

Northeast•Power Generation•LNG Importation•Gas Sales•Retail Sales•RECsTexas

•North American HQ•Power Generation•Gas Storage•Retail Sales

Canada•Power Generation•Operate 2 of the largest wind farms in eastern Canada

TX14%

Southeast28%Northeast

46%

Others12%

Current Geographic MixPower Generation

Mexico•Gas LDCs•Gas Pipelines•Gas Sales•Power Generation

One of the largest IPP’s #3 biomass generator in U.S.

#1 private gas transmission company and #2 LDC in Mexico

#1 importer of LNG in U.S. #2 C&I electricity retailer in U.S.

OfficePower PlantRenewable

LNG Regas

E & P Region


26

Buy vs. BuildBased on current economic circumstances – Buy more than Build to deepen and diversify•There are a number of good opportunities in the energy sector.

Natural Gas

Natural gas is the energy of choice to drive transition to a low-carbon economy.• Solidify our LNG and natural gas stronghold positions in New England and

Mexico through existing and new gas supply and sales opportunities.• Continue growing in natural gas-fired generation (recent GDF SUEZ example:

Astoria Energy I and II).

Renewables

Renewable energy is a strategic commitment of GDF SUEZ. We will develop bothgreenfield and acquisition opportunities to increase our renewable energy presence.• Further improve the carbon position of our fleet.• Avail ourselves to stimulus funding in U.S. and RFPs in Canada and Mexico.

How Is GDF SUEZ Positioning Itself in North America for the Future?


27

Brave New WorldPreparing for a Post-Carbon Future

25th Annual Global Power Markets

Conference

April 11 – 13, 2010, Las Vegas, Nevada

Questions?

Economy & Finance

Preparing for a post carbon future