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Great River Energy :: AboutUs :: Press Room Page 1 of 1 GREAT RIVER ENERGY*C EPA announces final Clean Power Plan On Aug.3,the Environmental Protection Agency released its Clean Power Plan,which regulates carbon dioxide(CO2)emissions from existing power plants. Although Great River Energy staff are still studying the Clean Power Plan and analyzing its impact,it is clear the rule imposes stringent requirements on power plants across the 4 nation,including Great River Energy's coal plants in North Dakota—Coal Creek, i Stanton and Spiritwood stations. Ickfl a■t - r ''4;, Il;, III z Due to its combined heat and power design,Great River Energy's Spiritwood Station power plant has a CO2 intensity below limits the Clean Power Plan sets for North Dakota. "Great River Energy has long recognized that impending carbon regulation is a business issue of the first magnitude.For that reason we have taken steps to prepare for regulation,such as accelerating the depreciation of our two largest coal plants,and actively engaged in the debate.Our view has been that we will be better able to create value for our members if we engage in the process,"said Great River Energy Vice President and General Counsel Eric Olsen."We believe engagement is more important than ever now that the final Clean Power Plan has been issued." Regardless of whether the new EPA rule survives court challenges,CO2 emissions from power plants will be regulated.After the U.S.Supreme Court ruled in 2007 that greenhouse gases are pollutants under the Clean Air Act,the EPA became obligated to begin the process of regulating CO2."If the Clean Power Plan is overturned,another regulation will take its place.Although the Clean Power Plan is stringent,it will at least provide the utility industry with needed clarity,"Olsen said. The Clean Power Plan sets North Dakota's CO2 intensity goal at 1,305 lbs/MWh,which is tied for the least stringent in the United States,but still substantially below current levels in the state.The Clean Power Plan's preferred method of achieving the substantial CO2 emissions reductions is by either trading emissions rate credits or CO2 allowances.Because Great River Energy's plants are among the most efficient,the organization will have to purchase fewer credits or allowances.As a result,Great River Energy's plants would have a cost advantage in the market. "We have long believed that a market-based approach to CO2 regulations,rather than requiring each plant to individually meet the requirements,is the most efficient way to reduce emissions,"Olsen said. The Clean Power Plan also promotes renewable energy as a way to reduce CO2 intensity or to replace some power from coal plants.The Upper Midwest has some of the best potential wind resource in the country."We will study the impact of taking advantage of wind as a way to comply with the new rule," Olsen said. The path to compliance Although the Clean Power Plan will be challenged in the courts,Great River Energy will continue to work with North Dakota and Minnesota government officials and utilities on the states'implementation plans.According to Olsen,"It is extremely important to be at the table as state offices work on their plans, especially in North Dakota,where our coal plants are located.In Minnesota,where we have no power plants covered by the rule,our focus will be to encourage the state to participate in multi-state trading to implement the Clean Power Plan." Great River Energy's members are the sole focus of the organization's engagement in the carbon regulation debate."We believe the approach we have laid out is the best way to ensure Great River Energy continues to provide reliable,affordable wholesale power to our members,"Olsen added.For more information about Great River Energy's position on the Clean Power Plan,visit greatriverenergv.com/cpp. http://www.greatriverenergy.com/aboutus/pressroornllead 082415_cpp_announced.html 9/1/2015