This participation Accord describes the commitments that Central and South West Corporation (CSW), on behalf of its electric operating subsidiaries, 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 by the Climate Challenge Program Memorandum of Understanding and exhibits thereto dated April 20, 1994. (For the Climate Challenge Program MOU, see Attachment A to this Participation Accord)

1. CSW Commitments

  A. Consistent with paragraph II.B. I (a and f) of the Climate Challenge Program MOU, CSW has undertaken specific activities and has made specific expenditures on projects that are expected to produce reductions or offsets in greenhouse gas emissions. These activities and programs are described below. CSW will continue all these activities as long as benefits are deemed cost-effective and supporting business circumstances exist.

CSW is participating in the following industry-wide Climate Challenge initiatives:

• The Utility Forest Carbon Management Program with a $5,000 initial commitment in 1994 and $20,000 per year for 1996 through 2000.

• The National Earth Comfort Program with $50,000 in funding each year for 1994, 1995 and 1996. Participation in this program is re-evaluated on an annual basis.

• Demand Side Management (DSM) activities - CSW currently has several DSM programs which promote efficient electricity use and result in reduced C02 emissions. These programs range from evaluating potential efficiency improvements to providing incentives to adopt more efficient equipment for individual homeowners, commercial and industrial customers. T-he current projection for C02 reductions resulting from DSM programs in the year 2000 is 329,000 short tons.

• Coal combustion by-product use - Coal combustion by-products (fly ash) often can be used as a substitute for portland cement in concrete production. This eliminates the need to dispose of the fly ash and also eliminates the emissions associated with manufacturing portland cement. Projected year 2000 fly ash sales of 370,000 tons from CSW facilities for use as a substitute for portland cement will result in a reduction of 293,000 short tons of CO₂.

• Renewable generation - In 1993, CSW began a series of renewable energy projects that will provide additional future C0₂emission reductions/offsets. These projects include a state-of-the-art wind and solar energy project CSW has constructed in West Texas. Attachment B provides further details on CSW's renewable projects. As these technologies are evaluated over time, those which are found to be cost-effective will be implemented as opportunities occur. In response to customer feedback, CSW is also proposing a program in 1997 of "green power" choices which will provide a means for customers to select a greater portion of their personal consumption from environmentally beneficial renewable generation. CSW will undertake this program once it is approved by tile Texas Public Utility Commission. Expected CO₂ emissions offset by renewable electricity generation in the year 2000 is 77,500 short tons.
• Transmission efficiency improvements - CSW. has undertaken operation and equipment changes to the CSW transmission system that are expected to result in 30,000 short tons of CO₂ reduction in the year 2000 through reduced load losses.
• Tree planting activities - CSW's land management activities include planting approximately 179,000 around facility sites and in urban areas, which will sequester 1,925 short tons of C0₂ in the year 2000.
• Research activities - CSW annually provides research funding to the Electric Power Research Institute, approximately $2,500,000 of which supports R&D projects (electro-technologies, environmental controls, etc.) that are expected to result in greenhouse gas emission reductions.

CSW 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) of the 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 CSW prior to becoming a participant in the Program, expressed on an annual basis to the extent possible

CSW will confer with DOE on or before October 1, 1998, to evaluate jointly the progress of CSW in achieving its Climate Challenge Program goals and to discuss possible adjustments to its voluntary commitments.

D. The Climate Challenge Program representative for CSW will be Mr. Bruce W. Moore, Central and South West Services, Inc., PO Box 660164, Dallas, Texas 75266-0164, (214)777-1288. CSW agrees to notify DOE prior to or, in any event, no later than 30 days after any change in the contact.

DOE Commitments

A. DOE's commitments to CSW 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 CSW 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 programs pertaining to CSW for purposes of addressing Climate Challenge Program issues, it will provide notice to CSW.

C. DOE will provide an annual report to CSW 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 CSW, will be Mr. Larry Mansueti, Director, Climate Challenge, Office of Utility Technologies (EE-10), U.S. Department of Energy, 1000 Independence Avenue SW, Washington, DC 20585, (202)586-2588. DOE agrees to notify CSW prior to or, in any event, no later dm 30 days after any change in liaison responsibilities or personnel.

III. General Provisions

A. Use of DOE-developed materials by CSW will be governed by the provisions of section W 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 CSW 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.

Attachments:
Attachment A - Climate Challenge Program, MOU
Attachment B - Wind and Solar Project Fact Sheets

Other Small Scale PV Applications

· PV-operated lighting at the HEB grocery store in Laredo, TX - 4 kW

· PV-assisted heat pump in Marfa, TX - 2 kW0 Rooftop PV system on PS(Ys district office in Lawton, OK - 18 kW (co-funded by EPA)

PV-powered water pumping for irrigation in Marfa, TX
PV street lighting in Marfa, TX
PV-powered stock watering near Fort Davis, TX

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