The Honorable Federico Pena, Secretary
U.S. Department of Energy
1000 Independence Avenue
Washington, D.C. 20585

Re: Climate Challenge Program Participation
 

Dear Secretary Pena:

The Burlington Electric Department (BED) of the City of Burlington, Vermont agrees to participate in the Climate Challenge Program. The following list identifies the actions our utility has taken since 1991, or plan to take by the year 2000 to reduce or prevent greenhouse gas emissions.

Energy Efficiency Programs
BED’s demand-side management (DSM) programs continue to evolve to meet the changing needs of its customer-owners. These efficiency improvement programs have reduced power consumption by 155,288 megawatt hours since their initiation in 1990. Simply maintaining the existing programs for the next ten years will reduce consumption by an additional 377,200 megawatt hours. Thus the City of Burlington will continue to reduce carbon dioxide emissions by approximately 30,000 tons annually. Additional benefits may be realized by further developing and implementing BED’s future plans for DSM. Following those plans will increase energy saved by 127,840 megawatt hours and therefore reduce CO₂ emissions by an additional 10,000 tons per year over the next decade. Hence BED’s energy efficiency improvement activities alone account for over 500,000 tons of "greenhouse gas" reductions.

Renewable Energy
In addition to energy efficiency, BED has gained unique and invaluable experience and expertise in the area of power generation from renewable resources. BED led the development and construction of the jointly owned 50 megawatt wood-fueled McNeil power generating station which is located within the City Boundaries. BED is the majority owner and the operator responsible for ensuring that the McNeil Generating Station will continue its 13-year history of sustainable electricity generation. During that interval of time the McNeil Station produced 2,022,950 megawatt hours which offset fossil fueled generation and therefore avoided the release of 1,602,176 tons of CO₂into the atmosphere.

An additional 130,000 tons per year will be avoided assuming the plant operates similarly over the next ten years. Measures to enhance operation of the McNeil Generating Station through renewable portfolio standards and development of district heating and cooling applications can reduce CO₂ by an additional 160,000 tons annually. Support for emerging new resources through the evolution of utility industry restructuring and increasing interest in green technologies are likely to increase biomass energy production and thus reduce CO₂ emissions even further.

The Honorable Federico Pena, Secretary Page 2

District Energy System
The most effective utilization of precious indigenous renewable resources was an important part of the vision when the McNeil Station was conceived. The plant was designed with practical access to available thermal energy in mind. These features are demonstrating their value to the Burlington community as an extensive district energy feasibility study approaches its conclusion. Preliminary results indicate that a district heating and cooling system makes technical and economic sense. Switching to a district energy system is a major change for large community institutions such as universities and hospitals. Therefore customers want to ensure there are sufficient savings and measures to significantly reduce risks as an incentive to make a long-term commitment to a district energy system.

Community leaders are also considering the environmental benefits of substantial CO₂ reduction associated with the displacement of fossil fuels for customer-sited heating and cooling systems. Greenhouse gas emission reductions within Burlington of 30,000 ton/year are possible through implementation of a district energy system using wood as the primary fuel'. If the proposed district energy system is successfully funded and implemented the reductions could begin as early as, 1999. Expansion of the system could ultimately offset local CO₂ emissions by an additional 20,000 tons annually.

Center of Excellence for Renewable Energy Conversion Technology Development

BED envisions the McNeil Generation Station becoming a "center of excellence" to demonstrate and help commercialize a variety of promising new renewable energy technologies. This center of excellence will create a sustainable cyclical process of R&D, demonstration, commercialization and business deployment incorporating long-term technical support.

³  This is the incremental amount of CO2 reduced over and above that associated with on-going operaton of generation and/or efficiency programs.

⁴  This is the amoung of CO2 reduction due to increased operation of the McNeil Station resulting from renewable standards and power production attendant with providing district heat. The reduction is based on the 1995 NEPOOL average annual marginal emission rate.

⁵  This is the amount of CO2 reductio from reduced operation of boilers and other heating plant in Burlington.

A New Millennium Biomass Power Cycle initiative has been proposed as a logical extension of the VGP. New Millennium is a proposal to commercialize more advanced., scalable, multifueled (biomass and fossil) and modular and progressively more efficient energy conversion technologies for a wide range of rural and urban, domestic and international applications. A family of commercial products developed through New Millennium would include gasification integrated with fuel cells, advanced gas turbines plus advanced turbines in hybrid configurations with fuel cells. If the New Millennium objective of doubling energy conversion efficiency is met and the resulting facilities are deployed in the targeted market applications, then the projection for CO₂ reduction cited above can be readily increased.

BFD expects that the combination of these actions will reduce or prevent annual emissions of-approximately 150,000 tons of carbon dioxide in the year 2000. Furthermore, BED will report annually, on a form provided by the Department of Energy/Energy Information Administration, on activities and achievements under the Climate Challenge Program.

Please call if you have any questions or need further information. Thank you for your consideration of our application.
Sincerely,

BURLINGTON ELECTRIC DEPARTMENT
 

Ronald P- Belval, PE
Assistant General Manager
 
 

cc:

Steve Burroughs, General Manager; Board of Electric Commissioners
Mayor Peter Clayelle
American Public Power Association
Attn: Rebecca Blood
2301 M Street NW
Washington, DC 20037

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