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Alabama Power air emissions drop in 2012

Sulfur dioxide, nitrogen oxide down nearly 80 percent since 1996

Mar 4, 2013

Alabama Power in 2012 continued its long-term trend of reducing key air emissions at its power plants.

Emissions of sulfur dioxide (SO2) were down 30 percent in 2012. Emissions of nitrogen oxide (NOx) were down 28

percent last year. Since 1996, NOx and SO2 emissions at Alabama Power plants are down by 78 percent and 76

percent, respectively. (See accompanying charts.)

Lower emissions in 2012 were the result of a combination of factors, including a reduction in coal-fired

generation, an increase in the use of natural gas, plus the benefit of years of emission-control

investments.

“For more than a decade, Alabama Power has met the challenge of complying with increasingly stringent

environmental regulations,” said Matt Bowden, Alabama Power vice president of Environmental Affairs.

“By focusing on cost-effective measures, we’ve reduced emissions significantly while continuing to meet

the needs of our customers for reliable, affordable power.”

Coal-fired power plants produced 54 percent of Alabama Power’s total electricity generation in 2012,

down from nearly 77 percent in 1999. Natural gas generation, in contrast, made up 18 percent of total

generation in 2012, up from about 1 percent in 1999. Emission-free nuclear and hydro generation made

up the remaining 28 percent of Alabama Power generation in 2012.

Last year, Alabama Power switched from using coal to natural gas at Plant Gadsden’s two generating

units. While the decision was primarily an economic one, based on lower natural gas prices, it also

provided environmental benefits. Alabama Power is also adding environmentally friendly energy from wind

to its fuel mix. Last year, the company began receiving energy from a wind farm in Oklahoma, and by the

end of this year, the company is expected to also receive energy from a wind farm in Kansas. Combined,

the two power purchase agreements will provide enough energy to supply up to 115,000 homes.

Alabama Power is receiving the wind energy at a competitive price, but also receives other benefits from

the purchase agreements. Under both agreements, the company has the flexibility to use generated wind

energy to serve customers and retire the associated renewable energy credits (RECs) or sell the energy

and RECs to others, either separately or bundled together.

Other changes are coming at Alabama Power plants that are expected to provide environmental benefits.

By 2016, the company plans to use natural gas as a primary fuel source at several units currently fueled

by coal at Plant Gaston, in Shelby County. The company also plans to add additional emission controls to

large coal units at Gaston and at Plant Gorgas, in Walker County, over the next few years. Adjustments at

other units at Plant Greene County and Plant Barry, in Mobile County, will also provide additional emission

reductions.

Alabama Power has invested nearly $3 billion over the past decade to comply with government-mandated

environmental regulations, installing highly effective controls on nearly two-thirds of its coal-fired
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generating capacity. Through 2016, the company plans to invest another $1 billion to meet the latest

round of emission regulations.

Alabama Power, a subsidiary of Atlanta-based Southern Company (NYSE:SO), provides electricity to

more than 1.4 million customers across the state.

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