SHORELINES

Shorelines - October 2014

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13 Shor e l i n e S | 2014 Vol :3 Centerfold: Photo by Bernard troncale — Sailors compete in the Leukemia Cup Regatta on Logan Martin Lake. converting moving water into energy for our state – at below-average prices with superior reliability. Unfortunately, federal government mandates are making it harder for Alabama Power to provide our customers with energy in the most cost-effective way. In August, Alabama Power announced the decision to close some generating units and switch fuels in others to meet federal Environmental Protection Agency mandates. The company is retiring two coal-fired units at Plant Gorgas in Walker County and switching from coal to natural gas in two units at Plant Greene County and three units at Plant Barry in Mobile County by 2016. We acted in the face of looming deadlines on mercury emissions and in anticipation of proposed greenhouse gas restrictions that would cap the release of carbon dioxide. Also, more stringent federal rules are being developed on coal combustion byproducts, water discharges and traditional air emissions. Alabama Power already has invested about $3 billion during the past decade to meet federal environmental mandates. We've installed technology to reduce nitrogen oxides, sulfur dioxide and mercury emissions by up to 80 percent. We are in the process of spending another $1 billion to comply with new federal environmental regulations tied to air emissions. Taking away our ability to tap into a diverse mix of fuels – especially one of the cheapest and most abundant – exposes our customers to market volatility and significantly increases the cost of generating electricity. Last winter, every one of the units affected by our recent announcement was on-line to meet cold-weather energy demands. Having them ready to meet peak periods of energy use means we don't have to buy more expensive electricity from other regions, assuming it is available. This federal overreach isn't good for our customers, many of whom live on fixed incomes. Nearly one in five live below the federal poverty level. All of our customers, deserve affordable reliable electricity. Federal overreach also hurts the communities, many in rural areas, served by our power facilities. At our Greene County plant in the heart of the Black Belt, 60 positions are being eliminated through attrition and transfers. Doing that avoids employee layoffs, but those salaries – and the taxes they pay and the goods they purchase – will be gone from the state's poorest region. We don't need Washington imposing restrictions on energy production that hurt our customers and the communities in which they live. What we do need is a full portfolio of fuel choices, from coal to nuclear, from natural gas to renewables – including reliable water – to continue helping move our state forward and powering Alabama. — MATT BOWDEN IS VICE PRESIDENT OF ENVIRONMENTAL AFFAIRS AND JIM HEILBRON IS SENIOR VICE PRESIDENT AND SENIOR PRODUCTION OFFICER AT ALABAMA POWER. Visit Alabama Power's NewsCenter for additional information about electricity generation. news.alabamapower.com/ TAKING AWAY OUR ABILITY TO TAP INTO A DIVERSE MIX OF FUELS – ESPECIALLY ONE OF THE CHEAPEST AND MOST ABUNDANT – EXPOSES OUR CUSTOMERS TO MARKET VOLATILITY AND SIGNIFICANTLY INCREASES THE COST OF GENERATING ELECTRICITY.

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