Climate Challenge Participation Letter

DOE's Energy Partnerships for a Strong Economy

The Climate Challenge Program is a joint, voluntary effort of the United States Department of Energy ("DOE") and the electric utility industry undertaken in pursuit of the President's goals for reducing greenhouse gas emissions. The framework of the Climate Challenge Program was established in the Climate Challenge Memorandum of Understanding dated April 20, 1994 ("Climate Challenge MOU"), (see Attachment A to this Participation Accord).

This Participation Accord describes the actions that Big Rivers Electric Corporation and DOE have committed to undertake under the Climate Challenge Program. Big Rivers Electric Corporation commitments include specific activities and efforts to reduce, avoid, or sequester greenhouse gas emissions. DOE's commitments include specific actions designed to assist Big Rivers Electric Corporation in achieving its Climate Challenge Commitments.

Big Rivers Electric Corporation is a generation and transmission cooperative (G & T) located in Henderson, Kentucky. Since our origination in 1961, we have provided reliable wholesale electric service on a not-for-profit basis to our four member distribution cooperatives. In turn, these cooperatives sell electricity to their more than 85,000 residential, industrial, and commercial customers in portions of 22 western Kentucky counties. Big Rivers has a total available generating capacity of 1,721 megawatts, and, except for a small oil-fired combustion turbine, all our generating units are coal-fired. Our power plants are located in the heart of the western Kentucky coal fields.

Additionally, the electric cooperatives listed in Attachment B have an ownership interest in and receive bulk electric power from Big Rivers Electric Corporation. Due to this ownership and power supply relationship, the cooperatives in Attachment B will participate in the Climate Challenge Program through Big Rivers Electric Corporation.

I. Big Rivers Electric Corporation Commitments.

A.
Consistent with Paragraph II.B.1. and Exhibit B of the Climate Challenge Program MOU, Big Rivers Electric Corporation has or will undertake the following actions:

Big Rivers will continue its present and ongoing program to promote geothermal heat pumps for residential customers with an expected annual savings of approximately 3,000 KWH per unit. Since 1992, we have installed 359 units, and based upon current estimates, we expect to have installed 1,050 units by the year 2000 with associated annual savings of 3,150,000 KWH. This project will avoid approximately 3,520 tons of CO₂ emissions in

the year 2000, with a total avoidance of 15,530 tons of CO₂ emissions for the 1995-2000 time period.

B.

Big Rivers Electric Corporation will report to DOE annually on its 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 [[section]]1605(b) of the Energy Policy Act and the Supplemental Guidance on Commitment Definitions and Reporting in Exhibit B of the Climate Challenge MOU. The first such report may include a description of the activities and achievements of Big Rivers Electric Corporation prior to its becoming a participant in the program, expressed on an annual basis to the extent possible.

C.

Big Rivers Electric Corporation will confer with DOE no later than June 30, 1997, regarding Big Rivers Electric Corporation's participation in the Climate Challenge Program. The purpose of such meetings will be to evaluate Big Rivers Electric Corporation's progress towards achieving its Climate Challenge commitments and possible adjustments to these commitments based on the availability of reasonable, cost-justified activities for reducing greenhouse gas emissions.

D.

The Climate Challenge representative for Big Rivers Electric Corporation will be Gregory F. Black, P.O. Box 24, Henderson, Kentucky, 42420. Big Rivers Electric Corporation will notify DOE prior to or, in any event, no later than 30 days after any change in contact.

A.
DOE will perform the actions and fulfill the commitments set out in section III of the Climate Challenge MOU.

B.

The Climate Challenge representative for DOE will be Mr. Larry Mansueti, Director, Climate Challenge Program, Office of Utility Technologies (EE-10), U.S. Department of Energy, 1000 Independence Avenue, S.W., Washington, DC 20585, (202) 586-2588. DOE will notify Big Rivers Electric Corporation prior to, or in any event, no later than 30 days after any change in representative.

C.

DOE will meet with Big Rivers Electric Corporation upon request regarding possible adjustments of the Climate Challenge commitments set forth in subsection I.A. of this Participation Accord.

D

DOE will consider requests by Big Rivers Electric Corporation to intervene in 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 Big Rivers Electric

Corporation for purposes of addressing Climate Challenge Program issues, it will provide notice to Big Rivers Electric Corporation.

E.

To the extent permitted by applicable law and regulations and by the availability of funds, DOE will consider Big Rivers Electric Corporation's participation in Climate Challenge as a factor to be weighed positively in evaluating applications for financial and other assistance submitted to DOE in support of commitments made by Big Rivers Electric Corporation under this Participation Accord.

F.

DOE agrees to provide public recognition to Big Rivers Electric Corporation for its Climate Challenge activities. DOE will, among other things, prepare an annual report summarizing results achieved under Climate Challenge and highlighting any outstanding achievements or innovative approaches of Big Rivers Electric Corporation.

A.
Use of any DOE-developed materials by Big Rivers Electric Corporation will be governed by the provisions of section IV of the Climate Challenge MOU.

B.

In addition to the foregoing provisions, DOE and Big Rivers Electric Corporation agree to act in accordance with the principles set out in section I of the Climate Challenge Program MOU and the general provisions set forth in subsections V.A, V.B, V.C, 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 the activities under the Climate Challenge Program without penalty and without being subject to remedies at law or equity.

(Original Signed By)
Hazel O'Leary
Secretary of Energy

Big Rivers Electric Corporation

(Original Signed By)
Paul L. Schmitz
General Manager

Attachments:

Attachment A - Climate Challenge Program MOU and Exhibits
Attachment B - Distribution Cooperatives Which are Participating in the Climate Challenge Program Through Big Rivers Electric Corporation

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