Who We Are...3 Mission Statement...4 Corporate Values...5 Board of Directors Advisory Board...7 Executive Leadership...8 Management...

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Table of Contents Who We Are...3 Mission Statement...4 Corporate Values...5 Board of Directors...6-7 Advisory Board...7 Executive Leadership...8 Management...8 Employees...8 Santee Cooper Regional Water System...9 Lake Marion Regional Water System...9 Lake Information...9 Comparative Highlights...0 207 Energy Sales... Santee Cooper Power: Where It Comes From...2-5 System Ratings...4 Safety...4 Residential Satisfaction Ratings...5 Total Energy Supply...6-7 Generation and Purchases...8-9 Customers...20 Sales and System Peak Loads...2 Transmission and Distribution...2 Year in Review...22-24 Green Power...25 Environmental Stewardship...26-29 Recycling...30 GOFER...30 Economic Development...3 Notes...32-33 Santee Cooper Locations...34 208 Calendar...35 2

Who We Are Santee Cooper is South Carolina s state-owned electric and water utility. Known formally as the South Carolina Public Service Authority, we were created in 934 as a rural electrification and public works project. Santee Cooper generated its first electricity in February 942. The project saw the creation of lakes Marion and Moultrie, along with over 40 miles of dams and dikes, and the world s highest single-lift navigation lock at the time. Santee Cooper is a public-power provider and the primary source of electricity for approximately 2 million people in all 46 counties of South Carolina. We serve more than 80,658 residential and commercial customers directly in Berkeley, Georgetown and Horry counties. We also supply electricity to the state s 20 electric cooperatives, the cities of Bamberg and Georgetown, 27 large industrial customers including Joint Base Charleston, the Alabama Municipal Electric Authority, and the 0 member cities that form the Piedmont Municipal Power Agency. Santee Cooper is South Carolina s leader in generating renewable power, with 07 megawatts online. We also are helping customers use less electricity through our Reduce The Use energyefficiency program. We provide wholesale water through the Santee Cooper Regional Water System and Lake Marion Regional Water System. Santee Cooper is governed by a 2-member Board of Directors appointed by the Governor, screened by the Senate Public Utilities Review Committee, and confirmed by the state Senate. The board is comprised of directors representing each of the state s seven congressional districts; one from each of the three direct-serve counties; two directors with previous electric cooperative experience; and a chairman appointed at large. 3

The mission of Santee Cooper is to be the state s leading resource for improving the quality of life for the people of South Carolina. To fulfill this mission, Santee Cooper is committed to: l Producing and distributing low-cost, reliable energy, water and other essential services l Providing excellent customer service l Operating according to the highest ethical standards l Maintaining a quality workforce l Being a steward of the environment l Being a leader in economic development 4

These values have served us in our mission to be the state s leading resource for improving the quality of life for all South Carolinians. Our mission, values, strategic plan and goals build upon one another to provide a persistent vision for Santee Cooper. 5

Board of Directors WILLIAM A. FINN Acting Chairman st Congressional District Mount Pleasant, S.C. Director Finn is chairman of AstenJohnson Inc., a specialty textile company for the printing and papermaking industries based in Charleston. BARRY D. WYNN 2nd Vice Chairman 4th Congressional District Spartanburg, S.C. Director Wynn is president of Colonial Trust Co., a private trust company specializing in investment management and estate services. KRISTOFER D. CLARK 3rd Congressional District Easley, S.C. Director Clark is a broker with Easlan Capital and owner of Pristine Properties LLC. MERRELL W. FLOYD 7th Congressional District Conway, S.C. Director Floyd is a retired staff coordinator for Horry Electric Cooperative. J. CALHOUN LAND IV 6th Congressional District Manning, S.C. Director Land is a partner in Land, Parker & Welch, a general practice firm in Manning. STEPHEN H. MUDGE At-Large Clemson, S.C. Director Mudge is the co-founder, president and CEO of Serrus Capital Partners Inc., a Greenville, S.C.-based real estate investment firm. PEGGY H. PINNELL Berkeley County Moncks Corner, S.C. Director Pinnell is the owner of Peggy H. Pinnell Insurance Agency in Moncks Corner, a State Farm agency. DAN J. RAY Georgetown County Georgetown, S.C. Director Ray is president of DR Capital Group, a Pawleys Islandbased financial advisory and investment company. 6

Board of Directors (continued) DAVID F. SINGLETON JACK F. WOLFE JR. Horry County 2nd Congressional District Myrtle Beach, S.C. Chapin, S.C. Director Singleton is president of Director Wolfe is a past president and Singleton Properties, a real estate CEO of the Mid-Carolina Electric investment and sales firm. Cooperative in Lexington, S.C. Advisory Board Henry D. McMaster Governor Alan Wilson Attorney General Mark Hammond Secretary of State Richard A. Eckstrom Comptroller General Curtis M. Loftis Jr. State Treasurer 7

Executive Leadership James E. Brodgon... Interim President and Chief Executive Officer 2 Marc R. Tye... Executive Vice President and Chief Operating Officer Jeffrey D. Armfield... Senior Vice President and Chief Financial Officer J. Michael Baxley... Senior Vice President and General Counsel Michael R. Crosby... Senior Vice President, Nuclear Energy Dominick G. Maddalone... Senior Vice President, Technology Services and Chief Information Officer Arnold R. Singleton... Senior Vice President, Power Delivery Pamela J. Williams... Senior Vice President, Corporate Services Management S. Thomas Abrams... Vice President, Planning and Power Supply Charles S. Sam Bennett... Vice President, Administration Michael C. Brown... Vice President, Wholesale and Industrial Services Victoria N. Budreau... Vice President, Fuels Strategy and Supply 3 Daniel D. Camp... Vice President, Real Estate Thomas B. Curtis... Vice President, Generating Stations Rahul Dembla... Vice President, Planning and Pricing 4 B. Shawan Gillians... Interim Treasurer Jane H. Hood... Vice President, Environmental and Water Systems Thomas L. Kierspe... Vice President, Transmission Operations Richard S. Kizer... Vice President, Public Affairs 5 Kenneth W. Lott III... Vice President, Human Resource Management J. Michael Poston... Vice President, Retail Operations Suzanne H. Ritter... Vice President and Controller Elizabeth H. Warner... Vice President, Legal Services and Corporate Secretary Auditor Monique Washington... General Auditor Employees Number of employees...,745 James E. Brogdon was named Interim President and Chief Executive Officer on Oct. 6, 207, after Lonnie N. Carter announced his retirement on Aug. 25, 207. 2 Marc R. Tye was named Chief Operating Officer on Oct. 6, 207. 3 Daniel D. Camp was hired as Vice President, Real Estate on July 7, 207. 4 B. Shawan Gillians was named Interim Treasurer on March 6, 207. 5 Kenneth W. Lott III was named Interim Vice President, Human Resources, on March 6, 207, replacing Laura G. Varn, and was named Vice President, Human Resources on January 29, 208. 8

Santee Cooper Regional Water System Location... Moncks Corner, S.C. Construction cost... $34.7 million Commercial operation... Oct., 994 Capacity of treatment plant... 36 million gallons per day (mgd) Miles of pipeline... 26 Size of elevated storage tank... million gallons Size of ground storage... 0 million gallons Water supply... Lake Moultrie 2 Wholesale water sold to... Lake Moultrie Water Agency Population served:... 82,526 The water treatment plant is undergoing an expansion to increase capacity to 42 mgd. 2 The Lake Moultrie Water Agency sells the water to the city of Goose Creek, Berkeley County Water & Sanitation, the Moncks Corner Public Works Commission, and the Summerville Commissioners of Public Works. Lake Marion Regional Water System Location... Santee, S.C. Construction cost... $36 million Commercial operation... May, 2008 Capacity of treatment plant... 8 mgd 3 Miles of pipeline... 27.7 Size of elevated storage tank... million gallons Size of ground storage... 4 million gallons Water supply... Lake Marion 4 Wholesale water sold to... Lake Marion Regional Water Agency Population served:... 2,920 3 A 0.5 mile pipeline from Harleyville to Ridgeville is currently being constructed. 4 The Lake Marion Regional Water Agency is comprised of Berkeley, Calhoun, Dorchester, and Orangeburg counties, and the town of Santee. Lake Information Lake Marion Lake Moultrie Acres... 00,607 59,874 Maximum elevation... 76.8 feet 75.5 feet Capacity of Lakes Marion and Moultrie: 756 billion gallons Length of dams and dikes: 40 miles 5 Length of Tailrace Canal: 4 miles Length of Diversion Canal: 6.5 miles Pinopolis Lock: 75 feet deep, 80 feet long, 60 feet wide 5 Ends at Old Santee Canal Park 9

Comparative Highlights Percent 207 206 Change Power Generated (GWh)...8,23...20,592...-2.0 Purchases Less Wheeling and Losses (GWh)... 4,699...3,50...49.2 System Energy Requirements (GWh)...22,822...23,742...-3.9 Territorial Peak Demand (MW)...4,989...4,794...4. Operating Revenue (thousands of dollars)...$,756,983...$,745,657...0.6 Sources of Income 207 Percent Wholesale...62 Retail...23 Military and Large Industrial...3 Other Income... Other Electric Revenue... TOTAL INCOME...00 Distribution of Income 207 Operating Expenses (except depreciation)...66 Debt Service...23 Additions to Plant, Inventories, Etc....0 Payment to State... TOTAL EXPENSES...00 Does not include payments made from Special Reserve Fund Percent 0

Santee Cooper Power Where It Goes: 207 Energy Sales GWh Number of Customer Type Total Customers Wholesale...4,592...4 Military and Large Industrial...4,420...27 Retail...3,768...80,658 Total...22,779...80,689 Military and Large Industrial 9 Wholesale 64 Retail 7 ( GWH percentage)

Santee Cooper Power Where It Comes From: Generating Facilities Location Anderson County Generating Station (3 MW)...Belton Bennettsville Biomass (38 MW)...Bennettsville Berkeley Landfill Generating Station (3 MW)...Moncks Corner 2 Buzzard Roost Hydroelectric Station (8 MW)...Chappells 3 Colleton Solar Farm (3 MW)...Walterboro Cross Generating Station(2,370 MW) Unit...Pineville Unit 2...Pineville Unit 3...Pineville Unit 4...Pineville Georgetown Landfill Generating Station ( MW)...Georgetown Grand Strand Solar Station (3kW)...Myrtle Beach Hilton Head Combustion Turbines (84 MW) Unit...Hilton Head Island Unit 2...Hilton Head Island Unit 3...Hilton Head Island Horry Landfill Generating Station (3 MW)...Conway Jefferies Generating Station (40 MW) Hydro Units, 2, 3, 4, & 6...Moncks Corner Lee Landfill Generating Station ( MW)...Bishopville Myrtle Beach Combustion Turbines (56 MW) Units and 2...Myrtle Beach Units 3 and 4...Myrtle Beach Unit 5...Myrtle Beach 4 Pinelands Biomass (35.6 MW) Allendale County...Allendale Dorchester County...Harleyville Rainey Generating Station (977 MW) Combined Cycle Unit...Iva Combustion Turbine 2A...Iva Combustion Turbine 2B...Iva Combustion Turbine 3...Iva Combustion Turbine 4...Iva Combustion Turbine 5...Iva Owned by Domtar Paper. 2 3 Owned by Greenwood County. 4 Owned by TIG Sun Energy. Owned by EDF Renewable Energy. 2

Summer Began Generating Commercial Capability Fuel Operation 3 MW...Landfill methane gas...2008 38 MW...Biomass...200 3 MW...Landfill methane gas...20 8 MW...Hydro...2006 3 MW...Solar...203 580 MW...Coal...995 2 565 MW...Coal...983 60 MW...Coal...2007 65 MW...Coal...2008 MW...Landfill methane gas...200 3 kw...solar...20 6 MW...Oil...973 6 MW...Oil...974 52 MW...Oil...979 3 MW...Landfill methane gas...200 40 MW...Hydro...942 MW...Landfill methane gas...2005 6 MW...Oil/Gas...962 9 MW...Oil...972 2 MW...Oil...976 7.8 MW...Biomass...203 7.8 MW...Biomass...203 460 MW...Gas...2002 46 MW...Gas...2002 46 MW...Gas...2002 75 MW...Gas...2004 75 MW...Gas...2004 75 MW...Gas...2004 Year Santee Cooper entered into a lease agreement with Greenwood County. 2 Santee Cooper recently implemented a plan to idle Cross Unit 2 after March, 207. 3 Continued on pages 4-5

Santee Cooper Power Where It Comes From: Generating Facilities Location Richland Landfill Generating Station (8 MW)...Elgin Santee Spillway Generating Station (2 MW)...Pineville Southeastern Power Administration (296 MW)...Various St. Stephen Powerhouse (84 MW)...St. Stephen V.C. Summer Nuclear Station (322 MW)...Jenkinsville Winyah Generating Station (30 MW) Unit...Georgetown Unit 2...Georgetown Unit 3...Georgetown Unit 4...Georgetown Owned by U.S. Army Corps of Engineers. System Ratings Area rated Safety Percent Distribution Reliability...99.9964 Transmission Reliability...99.9979 Generation Availability Factor...88.24 For 207, Distribution customers averaged 8 minutes without service, and Transmission delivery points averaged minutes without service. In 207, Santee Cooper had a 98.2 percent incident-free safety rating with 35 injuries and preventable motor vehicle accidents. Santee Cooper earned a second place APPA annual Safety Award for Excellence for safe operating procedures in 206 in the award category for large utilities with,000,000 to 5,999,999 worker-hours of annual worker exposure. 4

Summer Began Generating Commercial Capability Fuel Operation 8 MW...Landfill methane gas...2006 2 MW...Hydro...950 296 MW...Hydro...985 84 MW...Hydro...985 2 322 MW...Nuclear...983 275 MW...Coal...975 285 MW...Coal...977 285 MW...Coal...980 285 MW...Coal...98 5,575 MW Total summer generating capability (5,0 MW are owned by Santee Cooper) Year Santee Cooper entered into its contract with SEPA. 2 Santee Cooper s one-third ownership share. Residential Satisfaction Ratings Category Percent Residential...9.3 Average national satisfaction rating...87.8 5

Total Energy Supply (Percentage) Year Hydro Coal Nuclear 207 2 42 0 206 2 52 2 205 2 48 9 204 2 59 8 203 2 5 0 202 58 9 20 7 9 200 2 75 0 2009 2 78 9 2008 77 9 2007 8 0 Purchases/Net Interchanges 20 Hydro 2 Renewables 0.32 Natural Gas & Oil 25 Coal 42 Nuclear 0 6

Total Energy Supply (Percentage) Natural Gas & Oil Renewables Purchases/Net Interchanges 25.32 20 20.34 3 23 0.35 8 4 0.35 7 6 2 7 0.4 5 4 0.4 5 0 0.4 3 8 0.3 3 4 0.3 9 4 0.2 4 7

Generation and Purchases (GWh) Year Hydro Coal Nuclear 207 382 9,589 2,296 206 444 2,347 2,886 205 523 2,832 2,366 204 506 6,607 2,297 203 624 3,949 2,788 202 27 5,888 2,42 20 274 20,048 2,469 200 450 2,889 2,828 2009 449 20,869 2,282 2008 22 2,89 2,385 2007 337 22,8 2,826 Purchases/Net Interchanges 4,980 Hydro 382 Renewables 73 Natural Gas & Oil 5,783 Coal 9,589 Nuclear 2,296 8

Natural Gas Purchases/Net & Oil Renewables Interchanges 5,783 73 4,980 4,834 8 3,08 6,22 93 4,987 3,82 96 4,738 4,35 5 5,335 4,70 03 4,099 3,87 5,546 2,98 08 940 2,93 9 790,93 77 2,463,4 64 880 9

Customers Wholesale Distribution Cooperatives (represented by Central Electric Power Cooperative Inc.) Central is a generation and transmission cooperative that provides electric service to each of the 20 distribution cooperatives. Cooperative Customers Aiken Electric Cooperative 46,843 Berkeley Electric Cooperative 95,98 Black River Electric Cooperative 32,209 Blue Ridge Electric Cooperative 65,944 Broad River Electric Cooperative 2,07 Coastal Electric Cooperative,650 Edisto Electric Cooperative 20,050 Fairfield Electric Cooperative 28,66 Horry Electric Cooperative 75,984 Laurens Electric Cooperative 56,479 Little River Electric Cooperative 4,67 Lynches River Electric Cooperative 20,864 Marlboro Electric Cooperative 6,474 Mid-Carolina Electric Cooperative 54,983 Newberry Electric Cooperative 3,733 Palmetto Electric Cooperative 70,46 Pee Dee Electric Cooperative 30,40 Santee Electric Cooperative 43,648 Tri-County Electric Cooperative 7,898 York Electric Cooperative 53,202 Transitioning load to Duke Energy Carolinas Piedmont Municipal Power Agency On Jan., 204, Santee Cooper began providing supplemental electric power (200-300 MW) to PMPA and its members for a term no less than 2 years. Members include Abbeville, Clinton, Easley, Gaffney, Greer, Laurens, Newberry, Rock Hill, Union and Westminster. Alabama Municipal Electric Authority On Jan., 204, Santee Cooper began providing 50 MW of contingent capacity to AMEA for a term of 0 years. Municipal Customers Bamberg Board of Public Works and city of Georgetown Retail Customers Served Directly: 80,658 Santee Cooper owns distribution facilities in Berkeley, Georgetown and Horry counties. These service areas include 2,934 miles of distribution lines. Large Industrial Customers Santee Cooper directly serves 27 large industrial customers including Joint Base Charleston. 20

Sales and System Peak Loads Sales System Peak Year (GWh) (MW) 207...22,779...4,989 206...23,700...4,794 205...26,498...5,869 204...27,353...5,673 203...26,364...5,029 202...26,756...5,387 20...27,552...5,676 200...28,82...5,743 2009...25,83...5,590 2008...26,687...5,650 2007...27,22...5,563 2006...25,422...5,95 Transmission and Distribution Miles of Transmission Lines...5,2 Miles of Distribution Lines...2,934 Transmission Substations...06 Distribution Substations...54 Central Electric Power System Delivery Points...459 2

Year in Review Although 207 included many milestones and accomplishments for Santee Cooper, including our 75th anniversary of generating electricity, there is no question that the year was dominated by one thing: our difficult decision regarding the expansion of V.C. Summer Nuclear Station. On July 3, the Santee Cooper Board of Directors voted to suspend construction of Summer Units 2 and 3, which we were building with majority owner South Carolina Electric and Gas Co. This decision followed a comprehensive project review spurred by the March 29 bankruptcy filing of our engineering, procurement and construction contractor, Westinghouse Electric Co. Our analysis showed that completing the units post-westinghouse bankruptcy would cost our customers another 4 percent in rate increases by 2030, and another nearly $7 billion on top of the $4.5 billion already spent. The project had become uneconomical. Since then, Santee Cooper has focused on cutting our costs and working to offset the project debt. Successes so far include the sale of our settlement with Westinghouse's parent, Toshiba, to Citibank. The sale gave us the certainty of an immediate, lump sum payment of nearly $900 million rather than the five year payout Toshiba offered. The settlement proceeds will offset project costs to customers. Our cost-cutting efforts and the Toshiba settlement also let us withdraw the planned 208 and 209 base retail rate adjustments, and we are working to defer base rate adjustments further into the future. At year's end, we were considering options for the V.C. Summer 2 and 3 site, license and assets. That evaluation likely will continue through much of 208. This situation continues to present challenges for us and for the state's leadership, which is exploring potential actions that could change our governance, ratemaking processes or even privatize us. Selling Santee Cooper has come up in the past, and we continue to believe that any objective evaluation will demonstrate our continued value as a public power utility. Santee Cooper continues to offer competitively priced and reliable electricity that benefits 2 million residents today and attracts industries with jobs for tomorrow. Our residential rates are 5 percent lower than the national average, and our industrial costs are 3 percent lower than the national average. 22 Continued on pages 23-24

Year in Review (continued) Now let us summarize a few of the successes from 207: We earned the American Public Power Association's RP3 Diamond Level designation, which recognizes proficiency in four key areas: reliability, safety, workforce development and system improvement. Criteria include sound business practices and a utility-wide commitment to safe and reliable delivery of electricity. Continuous improvement teams and projects found efficiencies, eliminated waste and redundancies, and produced significant savings for customers. We maintained transmission and distribution reliability ratings above 99.99 percent, meaning customers are without electricity less than a half hour on average for the year. Our Reduce The Use energy efficiency programs are on track to help customers save 209 million kilowatt-hours a year by 2020, which helps them save money, too. Better than nine out of 0 residential and commercial customers said they are satisfied with Santee Cooper in our 207 surveys, well above the national average. Customers say they are most pleased with our quality of power, reliability and customer service. Our rooftop and community solar programs achieved 207 participation goals, helping customers who are interested in purchasing rooftop solar panels or joining our Solar Share program. We also added another Green Power Solar School to our statewide system, at the Center for Advanced Technical Studies in Chapin, and added a new solar farm to the grid - the Bell Bay Solar Farm in Horry County. February marked the 75th anniversary of our oldest generating unit, at Jefferies Hydroelectric Station. The unit was brought online ahead of schedule to power a defense contractor supporting the U.S. efforts in World War II. We have always existed to improve the quality of life for all South Carolinians largely by delivering low-cost, reliable electricity that powers people and businesses across the state. Jefferies (it was called the Pinopolis Power Plant back then) quickly added four other hydro units, so state-of-the-art that they drew 65,000 visitors from every state in the union during and immediately after their construction. We completed renovations in 207 on two of those units, making them more efficient than they were in 942. All five still contribute to our system. That firm foundation has powered generations of South Carolinians already, and we stand ready to power generations to come. 23 Continued on page 24

Year in Review (continued) Demonstrating our continued commitment to economic development, Santee Cooper has provided loans, grants and facilities through the years to support economic development in all 46 of the state's counties. In 207, we made loans and grants supporting the Dillon County Inland Port, a new training center at Volvo Car USA's Berkeley County manufacturing plant, and a large industrial building in Dillon County's Northeastern Commerce Center, among other projects. Our programs helped recruit Samsung to Newberry County and supported Volvo's decision to expand its Berkeley plant. All told, we helped support 30 industrial announcements in 207 involving $.6 billion in capital investment and 5,363 new jobs. Santee Cooper made solid progress on Camp Hall, a first-of-its-kind industrial community we are developing around a central focus: the next generation of commerce and the needs of the workers. Camp Hall will provide a unique intersection of commerce, community and convenience. Using our decades of industrial development experience, Santee Cooper is creating a workforcecentric space with amenities and conveniences that will recruit and retain top talent. Watch it unfold at www.camphall.com. In 207, we bid farewell to former President and CEO Lonnie Carter, who announced his retirement in August, and to former Board Chairman W. Leighton Lord III, who resigned in December. Santee Cooper made many advances under their leadership, and we wish them both the best. Santee Cooper succeeds because of our great workforce. We have,745 employees working in 7 counties across the state, providing excellent customer service, delivering reliable and affordable power and water, promoting economic development and generally lifting up their communities. For example, more than half of our line technicians volunteered to travel to St. Croix over Thanksgiving and Christmas to help restore power to an island that had been mostly in the dark since the summer's brutal hurricanes. We were able to send more than two dozen employees, in two shifts, and they were part of a utility response that restored power to almost 80 percent of the island. We heard from many grateful islanders, including one gentleman happy to have his power back after 27 days. His words were for the team in St. Croix, but could easily describe our entire workforce: I wanted to compliment your entire organization for the quality, courteousness and professionalism of your employees that you've assigned to help us, he said. Your company is demonstrating that professionalism, care and customer service are still alive and well. 24

Green Power 207 Green Power sales: 20,08 MWh Green Power customers support the development of renewable Green Power by purchasing blocks each month through their bills. Renewable Green Power costs more to generate than Santee Cooper s traditional generation, and the money raised through Green Power sales is put entirely into the development of new renewable energy. Green Power is Green-e Energy certified, and meets the environmental and consumerprotection standards set forth by the nonprofit Center for Resource Solutions. Learn more at www.green-e.org. 207 Green Power Customers Residential...,003 Commercial...237 Industrial... Customers reached through cooperatives and municipalities...2,693 Green Tag customers...36 Generating Commercial Sites Capacity Operation Date Anderson Regional Landfill Generating Station 3 MW September 2008 Berkeley Landfill Generating Station 3 MW February 20 Georgetown Landfill Generating Station MW March 200 Grand Strand Solar Station 3 kw April 20 Horry Landfill Generating Station 3 MW September 200 Lee Landfill Generating Station MW February 2005 Richland Landfill Generating Station 8 MW February 2006 Coastal Carolina University Green Power Solar Pavilions 6 kw July 2006 Technical College of the Lowcountry Solar Canopies 20 kw February 200 North Myrtle Beach Wind Turbine 2 kw December 200 25

Environmental Stewardship Air Emissions Santee Cooper continues to significantly reduce its emissions of sulfur dioxide (S02) and nitrogen oxide (NO X) from its fossil-fired units. Since 2000, SO 2 emissions and NO X emissions have been reduced by more than 93 percent and 89 percent, respectively. Mercury emissions have been reduced by more than 8 percent over the same timeframe. Santee Cooper has already cut carbon dioxide (CO 2) emissions 37 percent compared to 2005 levels. The retirement of fossil units at Grainger and Jefferies generating stations has contributed to this downward trend, as has an increased reliance on natural gas generation. Improvements to emissions-control devices, the installation of new or improved environmental control technology, and the greater use of more efficient generating units have also helped with the emissions reductions. Sea Turtle Protection SCUTE, or South Carolina United Turtle Enthusiasts, is a group of volunteers dedicated to sea turtle conservation in Georgetown and Horry counties. Organized in 990, SCUTE is permitted by the South Carolina Department of Natural Resources to protect and, if necessary, relocate turtle nests. Santee Cooper has worked with organizations like SCUTE since 990 to preserve and protect loggerhead sea turtles. Santee Cooper supports the efforts of SCUTE by shielding lights and working to raise awareness about sea turtles through a public education program. Santee Cooper provides free colorful "Lights Out" bumper stickers to remind property owners and visitors to turn off beachfront lights after 0 p.m. during nesting season. Throughout the nesting and hatching season, SCUTE volunteers distribute information to beach users who express an interest in turtle conservation. 26 Continued on pages 27-29

Environmental Stewardship (continued) Lakes and Vector Management Protecting lakes Marion and Moultrie, South Carolina s largest freshwater resource, has been of paramount importance to Santee Cooper since the reservoirs were completed in 942. With a combined 60,000 acres in five counties, the lakes host 48 water-quality monitoring stations. Monthly samples are analyzed by Santee Cooper s analytical and biological services department and data is shared with state and federal agencies. Maintaining water quality is important to preserving the natural habitat of the Santee Cooper Lakes and also to ensure a safe water source for the Santee Cooper Regional and Lake Marion Regional water systems. Santee Cooper s vector management department has been battling mosquitoes throughout the utility s history. The department was the driving force in eliminating malaria from around the Santee Cooper Lakes in the early 950s and continues its efforts to control nuisance and disease-carrying mosquitoes today. Vector management operational crews perform daily inspections around the lake system to eliminate active mosquito breeding sites. Sites that cannot be eliminated are treated with the most environmentally safe products available to prevent mosquito larvae from maturing to the adult stage. Adult mosquito populations are targeted through the applications of pesticides by the department s licensed pesticide applicators. Vector management technicians use light traps and standardized techniques to survey adult populations to determine when spray operations are warranted. Technicians also monitor adult mosquitoes for the presence of West Nile Virus and other mosquito-borne diseases. 27 Continued on pages 28-29

Environmental Stewardship (continued) Wildlife Habitat Management Santee Cooper uses Environmental Protection Agency-approved herbicides to control undesirable woody vegetation that can interfere with the delivery of electricity, which has a positive effect by increasing plant diversity and, in turn, enhances wildlife habitat. Also, Santee Cooper works closely with Heritage Trust Programs such as the Longleaf Pine Heritage and the Lewis Ocean Bay Heritage preserves to ensure that the management of transmission rights of way that traverse the preserves are compatible with their management plans. Creating Sanctuaries for Wildlife Santee Cooper and the South Carolina Department of Natural Resources have a long history of working together to manage the lakes and the properties that surround the state s largest freshwater resource, through fisheries management and state wildlife management areas. Santee Cooper also supports the Santee National Wildlife Refuge in Clarendon County. Forestry and Undeveloped Lands Santee Cooper manages approximately 24,000 acres of forested and undeveloped land around lakes Marion and Moultrie in Berkeley, Calhoun, Clarendon, Orangeburg and Sumter counties. More than 2,500 acres of forested and undeveloped lands associated with generating station sites and special-use sites are managed in Anderson, Berkeley, Florence, Georgetown, Horry, Jasper and Spartanburg counties. Most of Santee Cooper's forested and undeveloped lands are managed under the concept of multiple-resource use. Under this management system, these lands produce a sustainable timber harvest in conjunction with protecting soil and water quality, enhancing wildlife habitat, and providing recreational opportunities. To help meet these multiple use objectives, Santee Cooper partners with the S.C. Department of Natural Resources through the Wildlife Management Area (WMA) lease agreement. Of the 36,500 acres, nearly 27,000 are enrolled in the WMA Program for habitat enhancement and public recreational access. Continued on page 29 28

Environmental Stewardship (continued) Palmetto Trail Santee Cooper helped blaze South Carolina s Palmetto Trail, a hiking, biking and camping pathway from the mountains to the sea that is nearly 290 miles long. The trail s first segment opened in January 996. The 24- mile long Lake Moultrie Passage created widespread access for hikers and cyclists to some of the most beautiful vistas around the lake it edges. It is one of three sections that Santee Cooper helped build and continues to maintain. The other sections include the 20-mile long Eutaw Springs Passage and the 33-mile long Lake Marion Passage. Old Santee Canal Park The 95-acre park s construction was financed by Santee Cooper, and the park opened in 989. It features an Interpretive Center, theater and classroom. School children across the Lowcountry enjoy outings such as the annual NatureScope Field Days. The park s environmental programs emphasize the vast diversity of plant and animal life found throughout the park, covering topics such as insects, reptiles, trees and wetlands. The park features four miles of boardwalk and hiking trails along Biggin Creek that parallel the Tailrace Canal. A large floating dock is inviting to boaters. The Stony Landing House, circa 843, provides a scenic overlook at the point where the west branch of the Cooper River begins. Old Santee Canal Park, in conjunction with the Town of Moncks Corner in 207, is host to the annual Celebrate The Season holiday festival. This charitable community event features a holiday lights driving tour, weekend festivals, a fun run and more. In the past six years, Celebrate The Season has raised over $782,000 for charities serving Berkeley County. Environmental Intern Program The Environmental Intern Program turned 25 in the summer of 205 and has hosted more than 280 participants since 990. Interns spend the summer with Santee Cooper where they learn about an electric utility s role in balancing the generation, transmission, and distribution of electricity with the challenges and opportunities of renewable energy and other environmental matters. 29

Recycling Between July 206 and July 207, Santee Cooper recycled the following: Ash:,000,009 tons Gypsum: 534,875 tons Concrete: 2.2 million lbs. Ferrous Metals: 3 million lbs. Mixed Wood: million lbs. Co-mingled Recyclables: 03,476 lbs. Mixed Metal: 203,04 lbs. Tires: 2,985 lbs. Used Oil Filters: 2,000 lbs. Batteries: 2,820 lbs. Fluorescent Lamps: 6,028 lbs. Soil: 28,,33 Other Items: ton GOFER Give Oil for Energy Recovery, GOFER, is Santee Cooper s used motor oil collection and recovery program. Santee Cooper started GOFER in 990 to give people throughout South Carolina a convenient place to properly dispose of used motor oil. GOFER has collected more than 30 million gallons of used motor oil in 27 years. In 207, GOFER collected,252,498 gallons of used oil. Visit www.scgofer.com for more information. 30

Economic Development 207 was another good year for economic development by Santee Cooper and work conducted jointly with the state's electric cooperatives and the Power Team on initiatives, loans, grants and attractive incentive rates. These programs also assist with infrastructure and the construction of speculative buildings in the service territories of Santee Cooper and electric cooperatives, and in areas served by our municipal customers. Collectively, 207 efforts allowed Santee Cooper and the electric cooperative's power system to add 30 location announcements, $.6 billion in capital investment and 5,363 new jobs. There were five major announcements: Company Capital Investment New Jobs Volvo Cars $520 million,900 Samsung Electronics $380million 950 SC Pet Foods $00 million 50 Harbor Freight Tools $00 million 250 Ruiz Foods $79 million 7055 3

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Santee Cooper Customer Service Locations Conway Office* 00 Elm Street Conway, SC 29526 843-248-5755 Fax: 843-248-735 Moncks Corner Office (Santee Cooper Headquarters) One Riverwood Drive Moncks Corner, SC 2946 843-76-8000 Fax: 843-76-422 Myrtle Beach Office 703 Oak Street Myrtle Beach, SC 29577 843-448-24 Fax: 843-626-923 North Myrtle Beach Office* 000 2nd Ave. North North Myrtle Beach, SC 29582 843-249-3505 Fax: 843-249-6843 *North Myrtle Beach Office close date: June, 208 *Conway Office close date: June 29, 208 34

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P.O. Box 29460 Moncks Corner, SC 2946-60 Riverwood Drive Moncks Corner, SC 2946-290 843-76-8000 www.santeecooper.com 6/7 : 2,500