E CS Overview Major Construction Update Eddie Clayton

E&CS Overview & Major Construction Update Eddie Clayton

Discussion Guide • Southern Company Overview • E&CS Overview • Environmental projects • New Generation projects

Southern Company • A super-regional energy company • Headquarters: Atlanta, Georgia • Chairman, President and CEO: David Ratcliffe • Customers Served: ~4. 3 million over 120, 000 square miles • Generating Capacity: 42, 000+ MW • Employees: ~26, 000

Southern Company Businesses Regulated • Alabama Power • Georgia Power • Gulf Power • Mississippi Power • Southern Nuclear Competitive Other • Southern Power • • Southern. LINC Wireless Southern Generation • Southern Telecom

Engineering & Construction Strategy “owner’s engineer” philosophy • Utilize an – Centralized technical staff for fossil & hydro power plant development and support – 2/3 full-time employees; 1/3 supplemental & temporary personnel – Outside engineering and construction companies utilized to augment workforce • Execute capital projects and provide O&M support for operating companies including Southern Power – Leverage economies of scale on new build and large retrofit programs – Fleet-wide operations and maintenance support • Deploy and advance Technology (e. g. , SCRs,

Functional Areas Environmental • SCR • Scrubber (FGD) • Hg Baghouses • Cooling Towers • Water Treatment New Generation Gasification Technology • Orlando CC • Mc. Donough CC • Cleveland CT • Biomass • IGCC • Plant acquisitions • Operations • Technology interface w/ co-owner • Market strategy Plant Technical Services Nuclear • On-site construction • Retrofits oversight • O&M • Technical training • Project support • Safety Program • Power Engineering Matrix support departments Design: Mechanical, electrical, civil, I&C, equipment/materials procurement Engineering Services: QA program, project controls, document control, staffing Safety: Programs for full-time and contract employees as well as on-site contractors

Construction Management ― Labor broker contracts ― Modularization processes ― Resource management strategy

Environmental Program Summary Materials: Labor: • Steel: 200, 000 Tons • Average 11 -12 million work-hours per year • Ductwork: 110, 000 Tons • Peak demand of 6, 000 craft required across the • Fiberglass Reinforce Piping: 13, 000 Tonssystem Costs: • Electrical/Control Cable: 7, 400 miles • 650 MWs will be required to power new equipment • Concrete: 1, 500, 000 yd 3 Equipment Overview Coal-Fired Boiler NO & Hg x NOx - SNCR Control Air Heater SCR NOX Combustion Controls Bottom Ash Fuel Changes Dust & Hg Control SO 2 & Hg Control ESP ACI Scrubber Baghouse (Activated Carbon Injection) New Stac k Limeston Gypsum e Fly Ash

GPC Major Environmental Projects Future Complete Complete Future Complete Future Complete Future Future

APC, Gulf, and Mississippi Power Environmental Projects Future Complete Complete Future

New Generation Projects

Mc. Donough Combined Cycle Units 4, 5, & 6 • Technology – 2 x 1 CC MHI “G” gas turbine – Toshiba steam turbine • Man Hours – 4. 5 million craft labor hrs

Vogtle Nuclear Plant – addition of Units 3 and 4 • Additional Generating Capacity: 2200 MW (new total: 4520 MW) • 11+ years from first licensing activities until COD • 3500 people on-site during construction

Kemper County IGCC • The Kemper County IGCC Project will use TRIG™ technology. The facility will have less nitrous oxide, sulfur dioxide and mercury emissions than traditional pulverized coal plants. Additionally, the facility plans to capture and store 50 percent of its carbon dioxide emissions, making it one of the first IGCC electric generating plants in the country with that capability. Kemper County will produce 582 megawatts of power.

Southern Company Total Craft Labor Demand

Take. Aways • Success managing large diverse construction programs – Projects are on-track to meet required deadlines – Projects are delivering expected performance – Efficient deployment of capital • In-house planning and execution is an advantage – Multi-project consolidation – better overall risk management – Efficiencies through repetition – Lessons learned transferred to/from operations

Questions ?