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 Buckeye Power, Inc. (Buckeye Power) and DOE have committed to undertake under the Climate Challenge Program. Buckeye Power's commitments include specific activities and efforts to reduce, avoid, or sequester greenhouse gas emissions. DOE's commitments include specific actions designed to assist Buckeye Power in achieving its Climate Challenge commitments.

Buckeye Power is a non-profit electric generation and transmission cooperative incorporated under the laws of Ohio in 1949. Buckeye Power commenced commercial operation in 1968, and provides wholesale electric service to its 27 members, which consist of all of the rural electric distribution cooperatives engaged in the sale of electricity within the state of Ohio.

The retail service area of the 27 members covers a substantial part of the land area of the State of Ohio and extends into portions of 77 of Ohio's 88 counties. As of December 31, 1993, the distribution cooperative members served approximately 290,000 customers, 93% of whom were classified as residential and the remainder as commercial, industrial and other. The 27 distribution cooperatives listed in Attachment B will participate in the Climate Challenge Program through Buckeye Power.

1. BUCKEYE POWER COMMITMENTS

a.
Consistent with Paragraph ll.B.1 .(a) and (f), and Exhibit B of the Climate Challenge Program MOU, Buckeye Power has or will undertake the following projects to reduce, avoid or sequester greenhouse gas emissions:

Demand-Side Management
• Dual Fuel Heating Program

• Ground Source Heat Pump Program

• Lighting Improvement Program

• Water Heater Replacement Program

Through the Dual Fuel Heating Program, Buckeye Power and its member cooperatives provide incentives to homeowners to purchase an add on heat pump with a fuel oil, propane or gas furnace. The heat pump can provide 80% or more of the home's heating requirements during cool/cold weather with the furnace supplying the remaining needs during extremely cold weather. This reduces the electric resistance heating that normally would be needed at this time.

The Ground Source Heat Pump Program encourages customers of Ohio's electric cooperatives to install ground source heating and cooling systems (in all electric homes) and thereby promote more efficient use of energy by all concerned. Because the program is designed in part to make more effective use of off-peak electric power, an important aspect of the program is that all auxiliary heat shall be controlled by a radio control switch supplied by Buckeye Power.

The Lighting Improvement Program will consist of Buckeye and its members promoting and installing more efficient lighting and ballasts at its facilities and at various facilities within the cooperative territory.

Cooperatives are promoting the installation of new, more efficient electric water heaters under the Water Heater Program, which are equipped with radio- controlled switches for the purpose of deferring load at peak periods. Many cooperatives are offering monetary rebates with matching rebates from Buckeye Power.

It is estimated that Buckeye and its member cooperatives will save over 128,000 tons of CO₂ emissions in the year 2000 with these programs.

Distribution System Efficiency Improvement Program

The Distribution System Efficiency Improvement Program is an ongoing program whereby our member cooperatives are upgrading their distribution lines. It is estimated that by the year 2000, over 300 tons of CO₂ will have been saved.

Supply-Side

• Fossil Power Plant Efficiency Improvement Program

Buckeye Power has undertaken various efficiency improvements at its two Cardinal fossil fired units, Units 2 & 3. These have included the replacement of a unit step-up transformer at Unit 2, removal of various air ports at Unit 3, and operating less equipment to reduce auxiliary power losses at both units.

Through these supply-side efforts and others that may be implemented, it is estimated that Buckeye and its member cooperatives will save over 24,000 tons of CO₂ emissions in the year 2000.

Electrotechnologies

In addition, Buckeye Power will actively promote to its consumers the use of electro-technologies that can result in an improvement in energy efficiency and a reduction in emissions. These will include the promotion of electric lawn mowers, electric grills and more efficient washing machines and dryers.

Donated Equipment Initiative

Finally, through the efforts of the National Rural Electric Cooperative Association, Buckeye Power and its member cooperatives will participate in the DONATED EQUIPMENT INITIATIVE whereby $25,000 worth of equipment and/or materials per year will be donated for use in energy efficiency projects in other countries. As this initiative is still in the developmental stage, an emission savings projection was not developed.

Through all of these programs, Buckeye anticipates a total savings of more than 152,000 tons of CO₂ emissions in the year 2000.

b.

Buckeye Power 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 Buckeye Power prior to its becoming a participant in the program, expressed on an annual basis to the extent possible.

c.

Buckeye Power will confer with DOE no later than December 31, 1997, regarding the Buckeye Power participation in the Climate Challenge Program. The purpose of such meeting will be to evaluate Buckeye Power's progress toward 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.

The Climate Challenge representative for Buckeye Power will be:

Anthony J. Ahern
Vice President, Engineering & Power Supply
BUCKEYE POWER, INC.
P. 0. Box 26036
Columbus, OH 43226-0036


Buckeye Power will notify DOE prior to or, in any event, no later than 30 days after any change in contact.

2. DOE COMMITMENTS

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

U. S. Department of Energy
Room 6B-128 (EE-10)
1000 Independence Avenue, S.W.
Washington, DC 20585,
TEL: 202/586-2588

DOE will notify Buckeye Power prior to, or in any event, no later than 30 days after any change in representative.

c.

DOE will meet with Buckeye Power 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 Buckeye Power 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 Buckeye Power for purposes of addressing Climate Challenge Program issues, it will provide notice to Buckeye Power.

e.

To the extent permitted by applicable law and regulations and by the availability of funds, DOE will consider Buckeye Power'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 Buckeye Power under this Participation Accord.

f.

DOE agrees to provide public recognition to Buckeye Power 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 Buckeye Power.

a.
Use of any DOE-developed materials by Buckeye Power will be governed by the provisions of section IV of the Climate Challenge MOU.

b.

In addition to the foregoing provisions, DOE and Buckeye Power 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.

________________________________             Date: April 26, 1995

(Original Signed By)

Richard K. Byrne

President and Chief Executive Officer



BUCKEYE POWER, INC.







________________________________            Date:   

(Original Signed By)

Hazel O'Leary

Secretary of Energy



U.S. DEPARTMENT OF ENERGY

Attachments:

Attachment A - Climate Challenge Program MOU and Exhibits
Attachment B - Distribution Cooperatives Participating in the Climate Challenge Program Through Buckeye Power, Inc.

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Attachment B

Ms. Linda Gill, General Manager                                Mr.Steven K. Nelson, Manager

ADAMS RURAL ELECTRIC COOPERATIVE, INC.                         THE FRONTIER POWER COMPANY

4800 S.R. 125                                                  770 South 2nd Street

P.O. Box 247                                                   P.O. Box 270

West Union, OH 45693-0247                                      Coshocton, OH 43812-0270



Mr. Richard Mills, Interim General Manager                     Mr. Gary Mbiad, General Manager

BUCKEYE RURAL ELECTRIC COOPERATIVE, INC.                       GUERNSEY-MUSKINGUM ELECTRIC

4848 SR 325 S.                                                   COOPERATIVE, INC.

P.O. Box 200                                                   17 S. Liberty Street

Gallipolis, OH 45674-0200                                      New Concord, OH 43762-1299



Mr. Michael L. Sims, Manager                                   Mr. John A. Cheney, General Manager

BUTLER RURAL ELECTRIC COOPERATIVE, INC.                        HANCOCK-WOOD ELECTRIC COOPERATIVE, INC.

3888 Stillwell Beckett Rd.                                     2451 Grant Road

Oxford, OH 45656                                               P.O. Box 190

P.O. Box 13030                                                 North Baltimore, OH 45872-0190

Hamilton, OH 45013-0030                                        

                                                               Mr. Samuel P. Riggle, Jr., General Manager

Mr. Ray E. Wagner, Executive Manager                           HOLMES-WAYNE ELECTRIC COOPERATIVE, INC.

CARROLL ELECTRIC COOPERATIVE, INC.                             6060 SR 83

350 Canton Road, N.W.                                          P.O. Box 112

P.O. Box 67                                                    Millersburg, OH 44654-0112

Carrollton, OH 44615-0067

                                                               Mr. Charles Manning, Manager

Mr. Lloyd Edger, General Manager                               LICKING RURAL ELECTRIFICATION, INC.                                             

DARKE RURAL ELECTRIC COOPERATIVE, INC.                         11339 Mt. Vernon Rd., NE

1120 Fort Jefferson Road, N.W.                                 P.O. Box 455

P.O. Box 278                                                   Utica, OH 43080-0455

Greenville, OH 45331-0278

                                                               Mr. Bill Clevenger, Manager

Mr. Robert O. Ellinger, Manager                                LOGAN COUNTY COOPERATIVE POWER AND

DELAWARE RURAL ELECTRIC COOPERATIVE, INC.                        LIGHT ASSOCIATION, INC.

680 Sunbury Road                                               1587 CR 32, N

P.O. Box 630                                                   P.O. Box 279

Delaware, OH 43015-0630                                        Bellefontaine, OH 43311-0279



Mr. Gary L. Wyckoff, Manager                                   Mr. Markus I. Bryant, General Manager

FIRELANDS ELECTRIC COOPERATIVE, INC.                           LORAIN-MEDINA RURAL ELECTRIC

One Energy Place                                                 COOPERATIVE, INC.

P.O. Box 630                                                   22898 West Road

New London, OH 44851-0032                                      P.O. Box 158

                                                               Wellington, OH 44090-1058

Mr. Daniel T. Burkhart, General Manager                        Mr. R. Dane Swinehart, General Manager

MARION RURAL ELECTRIC COOPERATIVE, INC.                        SOUTH CENTRAL POWER COMPANY

2859 Marion-Upper Sandusky Rd.                                 2780 Coonpath Rd., NE

P.O. Box 501                                                   P.O. Box 250

Marion, OH 43301-0501                                          Lancaster, OH 43130-0250



Mr. Charles L. Spencer, General Manager                        Mr. Les Teel, Manager

MIDWEST ELECTRIC, INC.                                         SOUTHEASTERN MICHIGAN RURAL ELECTRIC

06029 CR 33A                                                     COOPERATIVE, INC.

P.O. Box 10                                                    1610 E. Maumee St.

St. Marys, OH 45885-0010                                       P.O. Box 869

                                                               Adrian, MI 49221-0869

Mr. Gerald P. Paolucci, General Manager                             

MORROW ELECTRIC COOPERATIVE, INC.                              Mr. Phil Parsons, Manager

5255 SR 95                                                     TRICOUNTY RURAL ELECTRIC

P.O. Box 111                                                     COOPERATIVE, INC.

Mt. Gilead, OH 43338-0111                                      200 Rd. K-2

                                                               P.O. Box 100

Mr. Fred A. Shatzer, General Manager                           Malinta, OH 43535-0100

NORTH CENTRAL ELECTRIC COOPERATIVE, INC.                     

13978 E. CR 56                                                 Mr. Roger Yoder, Manager

P.O. Box 475                                                   UNION RURAL ELECTRIC COOPERATIVES, INC.

Attica, OH 44807-0475                                          15461 U.S. 36

                                                               P.O. Box 393

Mr. Lyle Brigle, Manager-Engineer                              Marysville, OH 43040-0393

NORTH WESTERN ELECTRIC COOPERATIVE, INC.                      

04125 SR 576                                                   Mr. Robert L. Holmes, General Manager

P.O. Box 391                                                   UNITED RURAL ELECTRIC, INC.                                                   

Bryan, OH 43506-0391                                           555 W. Franklin St.

                                                               P.O. Box 224

Mr. Floyd Furrow, General Manager                              Kenton, OH 43326-0224 

PAULDING-PUTNAM ELECTRIC COOPERATIVE, INC.                    

11957 U.S. 127                                                 Mr. James A. Johnson, General Manager

Paulding, Oh 45879-9239                                        WASHINGTON ELECTRIC COOPERATIVE, INC

                                                               406 Colegate Drive

Mr. Robert L. Roberts, General Manager                         P.O. Box 664

PIONEER RURAL ELECTRIC COOPERATIVE, INC.                       Marietta, OH 45750-0664

344 W. US 36                           

P.O. Box 604                                                   Associate Member

Piqua, OH 45356-0604                                           Michael L. Cross, General Manager

                                                               Harrison Rural Electrification Associaton, Inc. 

                                                               Sun Valley Road

                                                               P.O. Box 2464

                                                               Clarksburg, WV 26302-2464

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Revised: April 26, 1995

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