|
September 17, 1997
Mr. Larry Mansueti
Dear Mr. Mansueti: As part of its Climate Challenge Participation Accord, Central Illinois Light Company (CILCO) committed to undertake certain actions and activities to sequester and avoid emissions of Greenhouse Gases. CILCO also committed to meet with DOE to discuss CILCO’s status of planned actions, many of which are multi-year projects. On December 15, 1996, CILCO submitted its second report to the DOE under the EIA-1605-b reporting form. Included in the report were the results of actions taken during the timeframe from 1992-1995. CILCO also met via conference call with DOE on August 28, 1997 to discuss the Company’s Climate Challenge initiatives and provide information on continuing greenhouse gas reduction activities. CILCO has added the following Climate Challenge project: Landfill Methane Project - CILCO is a utility Ally in EPA’s Landfill Methane Outreach Program. Landfill gas is produced through the natural process of decomposition of organic wastes and is composed of about 65 percent methane. By using the landfill gas as fuel for electricity generation, the heat content is recovered instead of venting or flaring the gas to the atmosphere. Reductions from one landfill project operating since 1989 were 7800 metric tons of CO2 and 3856 metric tons of CH4 for the year 1996. Two additional landfills in CILCO’s service territory will be generating electricity by December 31, 1997. Additional annual emission reductions from the two new landfills combined are expected to total 15,418 metric tons of CH4 and 31,198 metric tons of CO2. The combined capacity of the generating units at the three landfills is 8 MW. The significant value of these programs is manifested by the reduction in CH4 due to its greater global warming potential. By purchasing power from these suppliers, CILCO avoids securing power from fossil-fired generation plants which typically result in higher greenhouse gas emissions. A summary of CILCO’s other climate challenge activities is provided below. Utility Forest Carbon Management Program - CILCO’s participation in the Utilitree Forest Carbon Management Program was limited to contributions of $5,000 in 1994 and $10,000 in 1996. CILCO has chosen not to continue participation is this program at this time because the carbon reductions received from our participation were minimal and thus were not cost effective. EV America - Due to the significant downsizing of our fleet during 1996 and 1997, CILCO has not done an assessment of the viability of adding electric vehicles to our fleet. CILCO may add vehicles to our fleet in 1998, at which time we will evaluate the feasibility of purchasing electric vehicles. The assessment will be impacted by the requirements of the Energy Policy Act of 1992 concerning alternate fuel vehicles. Treeline USA - CILCO did fulfill its commitment of $20,000 in 1995 for tree planting projects on city property in Pekin and Peoria, Illinois and did receive Treeline USA recognition from the National Arbor Day Foundation. The program was intended for a single year subject to evaluation and, because it did not result in significant carbon reductions, was not continued. Co-Generation Facility - This facility continues to consistently result in the projected emission reductions in excess of 100,000 metric tons annually of CO2 since steam production began in late 1994. CILCO does not foresee any refinement to the reductions being realized. However, CILCO’s ability to benefit fully from the environmental aspects of this project depends on our industrial customer’s demand for steam. Our customer’s prime product at the co-generation facility is grain derived alcohol (ethanol), and its production level is influenced by many factors including the tax credit for ethanol. We are also discussing co-generation projects with other industrial customers, and will continue to pursue such projects. Heat Rate (efficiency) Improvements - The high efficiency turbine buckets installed on E. D. Edwards Unit #3 in 1994 continue to provide significant annual CO2 reductions. We are continuing to seek efficiency improvements on our existing generating units that will reduce greenhouse gas emissions by reducing the consumption of fossil fuels. In Concert with the Environment - CILCO continues to facilitate environmental education of junior high students, high school students and adults with this program. The program focused on the environmental benefits gained by the wise use of energy by consumers. In 1995 and 1996, this program was given to approximately 5,600 and 5,000 participants, respectively. CILCO has committed to continue this program though May 1998. There is no refinement to previous estimates about the energy use avoided by participants or emission reduction of greenhouse gases. Green Lights Program - CILCO became an electric utility ally in the USEPA’s Green Lights Program during 1995. Four of the Company’s facilities have had upgrades to lighting. However, due to personnel turnover, the Company has not completed a survey of all its facilities nor reported the effects of the upgrades to the USEPA. CILCO does hope to refocus on this program and quantify its benefits under its five-year commitment, which runs through 1999. In addition, CESI, a CILCORP subsidiary, began offering high-efficiency lighting in 1996 for commercial and industrial customers under the name of Stellarquest. The greenhouse gas reductions of this initiative may be quantified at future date. CILCO will continue to evaluate these and other business opportunities
with the mutual benefits of greenhouse gas reductions, consistent with
our changing business strategies. In view of impending changes to the electric
utility industry, CILCO is not prepared to enter into additional commitments
in our "Accord" at this time.
|