Climate Challenge Participation Accord

DOE's Energy Partnerships for a Strong Economy

This Participation Accord describes the commitments that Baltimore Gas and Electric Company (BGE) and the U.S. Department of Energy (DOE) have made to participate in the Climate Challenge Program in pursuit of the President's goals for reducing greenhouse gas emissions. The Climate Challenge Program is a joint, voluntary effort of DOE and the electric utility industry to reduce, avoid or sequester greenhouse gas emissions. The framework of the Climate Challenge Program was established in the Climate Challenge Program Memorandum of Understanding and exhibits thereto dated April 20, 1994 (the Climate Challenge Program MOU).

I. BGE Commitments

A. Consistent with paragraph II.B.1 of the Climate Challenge Program MOU

BGE will:

a. Make the following Industry Initiative contributions:

1. Starting in 1995, contribute $50,000 per year to the National Earth Comfort Program Industry Initiative for the next six years.

2. In 1994, BGE contributed $5,000 to the Utility Forest Carbon Management Program. BGE commits to continue to contribute to the Utility Forest Carbon Management Program Industry Initiative in 1995 as opportunities arise.

1. Fossil Generation

Since 1991, BGE has undertaken a number of heat rate improvements at its fossil fuel electrical generating stations. These improvements will allow BGE to generate more electricity and emit less greenhouse gases for a given amount of fossil fuel burned than would otherwise be achieved. These heat rate improvement projects (listed below) are estimated to result in approximately 110,000 tons per year of avoided CO₂ emissions.

For Brandon Shores 1:

controls upgrade
reheat superheater upgrade
feedwater heater upgrade
precipitator controls upgrade
economizer upgrade
primary superheater upgrade
high pressure turbine steam upgrade
cooling tower fill replacement

precipitator controls replacement

air heater replacement
coal feeder replacement
controls upgrade
controllable loss monitor
new turbine buckets/diaphragms

air heater replacement
coal feeder replacement
controls upgrade
controllable loss monitor
low pressure rotor replacements
condenser retube

feedwater heater replacement

high pressure turbine steam packing

feedwater heater replacement
high pressure turbine steam packing
controls upgrade
condenser retube

economizer replacement
controls upgrade
condenser retube

BGE commits to continue its heat rate improvement efforts at baseload, coal-fired generating units through 2000. Although specific projects are yet to be finalized, improvement goals have been established for specific units; BGE estimates that these projects could result in approximately 90,000 tons per year of additional avoided CO₂ emissions.

2. Demand Side Management

In 1991, BGE undertook several conservation and energy management programs under the name of Conserve 2000. BGE will continue to encourage energy efficiency among residential customers through its traditional demand side management programs. Specific programs include:

Super Efficient Refrigerator Program
Energy Wi$e New Home Program
Residential high efficiency heating/cooling equipment
Heat Pump and CAC energy saver switch
Electric water heater energy saver switch

For industrial and commercial customers, BGE's focus is changing from single issue, prescriptive DSM programs to one of comprehensive energy services. Although the goals of DSM and energy service programs are basically the same, their approaches differ. Instead of providing rebates and incentives for energy conservation measures, industrial and commercial customers will be offered an energy efficiency review identifying energy savings potentials. The review would lead to detailed feasibility studies that quantify energy savings, capital costs, productivity improvement, payback, or other benefits for each participating customer. Instead of rebates, long term energy savings, productivity improvements and possible financing of projects would be used to generate participation. BGE will focus on the following areas:

Energy efficient lighting
High efficiency motors
High efficiency heating and cooling systems
High efficiency building shell construction
Gas air conditioning
Thermal Storage
Advanced electrotechnologies for industries


In addition, BGE will continue to offer the following programs to all customers:

Energy saver switches for air conditioners
Curtailable load Program
Time of use metering

Energy savings from these activities are estimated to result in approximately 100,000 tons of CO₂ per year of avoided emissions for the years 1993 through 2000.

3. Hydroelectric Generation

BGE owns two-thirds of the Safe Harbor Water Power Corporation, operator of the Safe Harbor hydroelectric power generating facility in southern Pennsylvania. The Safe Harbor facility has undertaken several projects to maintain and improve its operations that reduce greenhouse gas emissions potential.

Safe Harbor provides 65 MW of regulation, which displaces a like amount from fossil powered plants. Because of the design of Safe Harbor's turbines, this regulation can be provided with less loss in efficiency than similarly equipped fossil plants.

In December 1993, Safe Harbor modified its control system of Units 3-12 to enable the PJM Interconnection office to automatically control each unit's level of generation. This capability, in concert with other units having similar generation control systems, enables the PJM system to exactly match generation with existing load.

In July 1994, Safe Harbor began using a computer program that helps plant operators dispatch the station's units in the most efficient manner. In conjunction with other hydroelectric facilities, Safe Harbor will customize and place into service a generation optimization computer program that will increase the generation value from Susquehanna River plants. This program will be operational in 1995 and will increase generation values from the four hydroelectric plants by 1 to 3%.

These activities and improvements are estimated to result in 77,000 tons per year of avoided CO₂ emissions.

4. EPA's Natural Gas Star

BGE commits to continue its participation in EPA's Natural Gas STAR program and to implement a program of directed inspection and maintenance at BGE's gas distribution surface facilities (Best Management Practice I of the Program). This activity is estimated to avoid approximately 220 tons per year of methane emissions from BGE's distribution system.

Before joining the Natural Gas STAR Program, BGE began to upgrade gate station regulators and controllers during station remodeling efforts. By replacing these devices, approximately 35 tons per year of methane emissions are avoided.

5. Transmission and Distribution

Since 1991, BGE has undertaken measures to reduce losses from BGE's transmission and distribution systems. These include the addition of three master substations; the addition or replacement of transformers at 36 other sites; and the installation of over 400 distribution line capacitors and 60 station capacitors. In total, these measures are estimated to have resulted in approximately 1500 tons per year of avoided CO₂ emissions.

5. Transportation and Fleet Management

BGE commits to continue its current goals and activities to develop and support increased natural gas vehicle use, including:

1. Establish at least 500 alternative fuel (compressed natural gas) vehicles in its corporate fleet by 2000.

2. Obtain more widespread participation in natural gas vehicle pilot programs.

3. Partner with oil companies to support natural gas vehicle fueling infrastructure development.

4. Perform natural gas vehicle conversions and maintain expertise in vehicle conversion and maintenance to help support conversion/maintenance shop infrastructure development.

BGE also commits to continue its support of electric vehicle development as opportunities present themselves. For example, in 1992 BGE, along with Chrysler Corporation, Westinghouse Electric Corporation, and the State of Maryland founded the Chesapeake Consortium, an effort designed to coordinate research, resources and technology related to the development of electric vehicles and advanced transportation systems.

Although these activities are estimated to have minor greenhouse gas emission reduction benefits over the next several years, they lay the foundation for more substantial, long-term reduction benefits.

7. Recycling

a.. Refrigerant Recycling and Replacement

BGE commits to continue several programs aimed at reducing fugitive emissions of chlorofluorocarbons (CFCs). These programs are outlined below.

(1) BGE's Home Products and Services subsidiary operates an appliance pickup program where discarded refrigerators, freezers and window air conditioners are removed from the customer's home and delivered to a scrap processor who recovers the refrigerant charge for subsequent reprocessing.

(2) BGE's Home Products and Services appliance services technicians recover CFCs when performing repair work on the refrigerant system. BGE voluntarily began this program prior to the mandatory requirements of the 1990 Clean Air Act Amendments.

(3) BGE also operates CFC recovery programs associated with the maintenance and repair of our motor vehicle fleet and of HVAC and process refrigeration systems in company owned facilities. We have also formulated a strategic refrigerant management plan for these facilities substituting refrigerants with less global warming potency than current refrigerants where appropriate.

(4) BGE has developed and implemented a program to reduce the use of halogenated fire extinguishing agents in company facilities through substitution with agents with less global warming potency, retirement of selected systems, and implementation of preventive maintenance practices aimed at eliminating accidental discharges.

These measures are estimated to result in approximately 1 ton per year of avoided HCFC-22 emissions and 0.35 ton per year of avoided CFC-12 emissions.

b. Solid waste recycling

BGE commits to continue its participation in EPA's WasteWi$e Program, a voluntary effort that encourages companies to reduce and prevent solid waste generation. In joining WasteWi$e, BGE will enhance its current efforts to recycle paper, cardboard, aluminum cans, and wood. In addition, BGE will undertake several waste minimization and prevention pilot studies and will expand the economic evaluation of purchasing products that contain recycled materials. BGE's recycling efforts are estimated to avoid approximately 2 tons of CO₂ emissions per year.

8. Renewable Energy

BGE, through its subsidiary, Constellation Energy, has and will maintain ownership interest in several geothermal and solar independent power projects developed in the western United States. Only one project, the Puna geothermal energy project in Hilo, HI qualifies as a post-1990 project. BGE's ownership share in this project is 49%. This project represents 25 MW of generating capacity with little or no greenhouse gas emissions; it is estimated to result in approximately 110,000 tons per year of avoided CO₂ emissions.

9. Nuclear Generation

In 1993, BGE began a project to assess the feasibility of increasing the thermal output of both of its Calvert Cliffs units by up to 10%; BGE will continue with this feasibility study. If the study determines that a power uprate is technically feasible, economically beneficial, and is not unduly risky, the project will proceed into an implementation phase. If implemented, this power uprate could result in avoided CO₂ emissions estimated to be as much as 850,000 tons per year.

For continued, post-2000 benefits, BGE has undertaken preliminary steps to extend operations at Calvert Cliffs Nuclear Power Plant Units 1 and 2 for an additional 20 years beyond their current 40-year licenses. While a final decision on these extensions has not been made, BGE's long range generation planning includes continued operation of its nuclear units. Preparation of the technical portion of the license renewal application is well underway.

10. Increased use of Natural Gas

BGE will continue to provide a wide variety of technical services to encourage and assist customers in converting from oil to natural gas. BGE has established a goal to convert 225 commercial and industrial customers (using 15 million therms annually) to natural gas by 2000. If achieved, this goal is estimated to result in approximately 32,000 tons per year of avoided CO₂ emissions.

B.
BGE will report annually on activities and achievements under the Climate Challenge Program. Results achieved during each year shall be reported in a clear and understandable manner that is consistent with the guidelines adopted pursuant to subsection 1605 (b) Energy Policy Act and the Climate Challenge accounting protocols in Exhibit B of the Climate Challenge Program MOU. The first such report may include a description of the activities and achievements of BGE prior to its becoming a participant in the Program, expressed on an annual basis to the extent possible.

C.
BGE will confer with DOE on or before July 1, 1997 to evaluate jointly the progress of the BGE in achieving its Climate Challenge Program goals and to discuss possible adjustments to its voluntary commitments.

D.
The Climate Challenge Program representative for BGE will be Dr. Elizabeth Bauereis, 7609 Energy Parkway, Suite 101, Baltimore, MD 21226. BGE agrees to notify DOE prior to or, in any event, no later than 30 days after any change in the contact.

A.
DOE's commitments to BGE are those set out in section III of the Climate Challenge Program MOU, which are hereby incorporated in this Participation Accord by reference.

B.
DOE will consider BGE requests to intervene in regulatory proceedings of federal, state and local commissions and boards on issues pertinent to the Climate Challenge Program. Before DOE intervenes in regulatory and other proceedings pertaining to BGE for purposes of addressing Climate Challenge Program issues, it will provide notice to BGE.

C.
DOE will provide an annual report to BGE describing the actions that it has taken to fulfill its commitments under section III and Exhibit C of the Climate Challenge Program MOU and the results of those actions.

D.
The Climate Challenge Program representative for DOE, who will serve as liaison to BGE, will be Mr. Allan Hoffman, U.S. Department of Energy, 1000 Independence Avenue, SW, Washington, DC 20585, (202) 586-1786. DOE agrees to notify BGE prior to or, in any event, no later than 30 days after any change in liaison responsibilities or personnel.

A.
Use of DOE-developed materials by BGE will be governed by the provisions of section IV of the Climate Challenge Program MOU, which are hereby incorporated in this Participation Accord by reference.

B.
In addition to the foregoing provisions, DOE and BGE agree to act in accordance with the principles set out in section I of the Climate Challenge Program MOU and the general provisions set out in subsections V.A-V.D, V.F and V.G of the Climate Challenge Program MOU, which are hereby incorporated by reference.

C.
Either party may withdraw from this Participation Accord or any of its activities under the Climate Challenge Program without penalty and without being subject to remedies at law or equity.

(Original signed by)
______________________________
President/CEO or designee
Baltimore Gas and Electric Company

_______________________ [date]

(Original signed by)
______________________________
Secretary of Energy or designee
U.S. Department of Energy

______________________ [date]

Please send comments to:
Lawrence.Mansueti@hq.doe.gov