Climate Challenge Participation Letter

DOE's Energy Partnerships for a Strong Economy

This Participation Accord describes the commitments that Central Hudson Gas & Electric Corporation (Central Hudson) 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 (MOU) and exhibits thereto dated April 20, 1994.

I. Central Hudson Commitments

A.
Consistent with paragraph II. B .1.c of the Climate Challenge Program MOU, Central Hudson will reduce powerplant CO₂ emissions (including power transactions) to 1990 levels by the year 2000. Central Hudson's 1990 CO₂ emissions, based on the combination of powerplant emissions and power transactions, were 7,940 Kst (thousand short tons). Central Hudson has operating responsibility for the Roseton plant, and any emissions counting is for 100% Roseton. This plant, consisting of two 600 MW units is owned by Central Hudson, Consolidated Edison of New York, Inc. and Niagara Mohawk Power Corporation. These units were converted from oil-firing to oil/natural gas co-firing; Unit 2 was converted in December 1991 and Unit 1 in May 1992.

Consistent with paragraph II.B.1 .a of the Climate Challenge Program MOU, Central Hudson will also participate in industry-wide initiatives, in the form of the Electric Vehicle Coalition (EV America Program) and the Heat Pump Consortium (Earth Comfort Program). Central Hudson has contributed $12,000 to the EV America Program and $27,411 to the Earth Comfort Program in 1995, and will evaluate continued participation in future years. Central Hudson may also consider additional voluntary measures in the future.

B.

Central Hudson 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 Central Hudson's activities and achievements prior to its becoming a participant in the Program, expressed on an annual basis to the extent possible.

C.

Central Hudson will confer with DOE on or before 1/31/97 to evaluate jointly Central Hudson's progress in achieving its Climate Challenge Program goals and to discuss possible adjustments to its voluntary commitments.

D.

The Climate Challenge Program representative for Central Hudson will be Mr. Andrew D. Matura, Environmental Affairs Division, Central Hudson Gas & Electric Corporation, 284 South Avenue, Poughkeepsie, New York, 12601. Central Hudson 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 Central Hudson 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 Central Hudson's 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 Central Hudson for purposes of addressing Climate Challenge Program issues, it will provide notice to Central Hudson.

C.

DOE will provide an annual report to Central Hudson 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 Central Hudson, will be Mr. Larry Mansueti. DOE agrees to notify Central Hudson 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 Central Hudson 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 Central Hudson 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)                                       

Ronald P. Brand                                                   January 4, 1996

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Central Hudson Gas & Electric Corporation                            Date





(Original Signed By)

Hazel R. O'Leary                                                  February 2, 1996

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Secretary of Energy or designee                                      Date

U.S. Department of Energy

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