Climate Challenge - Climate Challenge Participation Letter

Climate Challenge Participation Letter

DOE's Energy Partnerships for a Strong Economy

Commonwealth Edison Company
Climate Challenge Participation Accord

This Participation Accord describes the commitments that Commonwealth Edison (ComEd) 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 and the exhibit thereto dated April 20,1994 (the Climate Challenge Program MOU - see Attachment A to this Participation Accord).

ComEd is one of the subsidiaries of a newly formed holding company - UNICOM. ComEd is engaged principally in the production, purchase, transmission, distribution and sale of electricity to both wholesale and retail customers. The geographical area in which the Company provides retail service extends across one-fifth of the state of Illinois and includes the City of Chicago. ComEd serves more than 3.3 million customers, representing 8.1 million people or approximately 70% of Illinois' population.

Owned net generating capability as of September 30, 1994 was 22,522 megawatts (MW), supplied by ten fossil and six nuclear plants plus peaking units at nine sites. Fossil generating capacity, predominantly coal, totals 9,703 MW; nuclear is 11,487 MW; peaking totals 1,332 MW. In the first nine months of 1994, 69.8 percent of ComEd's generation came from nuclear, 26.1 percent from coal, 1.3 percent from oil and 2.7 percent from gas.

I. ComEd Commitments

Consistent with paragraph II.B.1 of the Climate Challenge Program MOU, ComEd will commit to participate in two of the five industry initiatives, namely the Utility Forest Carbon Management Program and the International Utility Efficiency Partnership (II.B.1.a) ComEd also commits to undertake specific projects to reduce greenhouse gas emissions. (II.B.1.f).

Utility Forest Carbon Management Program

ComEd contributed $5,000 in 1994, as well as becoming chairperson of the Urban Forestry Committee, and will evaluate continued participation as the program develops.

International Utility Efficiency Partnership

ComEd contributed $20,000 in l994 and will evaluate future participation, and is committed to exploring all opportunities whereby utility industry expertise can be shared towards the betterment Of international pollution problems and reduction of greenhouse gas emissions.

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In order to achieve the commitment under paragraph II.B.1.f., ComEd will undertake the following specific projects.

Description of ComEd CO₂ Reduction Projects

A description of ComEd's CO₂ reduction projects is detailed below. A summary of the CO₂ reductions by project, as well as the heat rate improvements anticipated in ComEd's Fossil Division, is presented in Tables 1 and 2.

The Decin Project

The Bynov District Heating Plant in the City of Decin is currently fueled by lignite coal which is high in carbon content and other pollutants. Unicom Enterprises, an unregulated subsidiary of Unicom, in conjunction with the two other utility sponsors, (Wisconsin Electric Power Company and Northern Indiana Public Service Company) is assisting the City of Decin in the conversion of the Bynov plant from coal-fired boilers to natural gas-fired boilers, the addition of gas internal combustion engines and associated exhaust gas/hot water heat exchange equipment. There will also be improvements in the efficiency of the hot water distribution network and studies to fund the establishment of a cogeneration facility.

Significant CO₂ emissions reductions will result from the conversion of the heating plant boilers from coal to natural gas and from the other thermal efficiency improvements. The utility company sponsors, including Unicom Enterprises, will share in 40 percent of the CO₂ reductions achieved from the implementation of these projects.

Demand Side Management Programs

Reduction in CO₂ emissions are achieved as a result of reductions in electrical demand due to DSM programs such as the Demand Management Cooperative, direct load control programs, high efficiency motors, adjustable speed drives and other programs.

The emission reductions are based on the estimated net cumulative peak-coincident load (MW) and net annual energy (Mwh) reductions for ComEd's pilot and full-scale DSM resource additions for the time period from 1995 through 2017. The energy reduction estimates provided are based on ComEd's anticipated utilization of DSM resources within its integrated least cost planning process. These plans reflect the best information available at this time.

It is important to note that prior to 1998, the projected year for the next resource need, the pace and scope of ComEd's DSM activities will be constrained due to the Company's January 1995 rate case decision that reduced cost recovery for its DSM activities.

c. Fuel Switching for Collins Units 1, 2 and 3

The conversion of Collins Units 1, 2 and 3 in 1994 to gas/oil firing results in decreased CO₂ emissions compared to a 100% oil-fired mode because of the lower carbon content of gas versus oil. Projections of decreased CO₂ emissions from the converted Collins units were made for the period 1995-2000 based on estimates of generation hours for gas/oil firing which would displace a 100% oil-firing mode.

d. Central District Chilled Water Production and Supply System

Unicom Thermal Technologies, an unregulated subsidiary of UNICOM, will build several central district cooling plants to manufacture and distribute, via underground pipes, large amounts of chilled water to buildings as an alternative to self-cooling. Unicom's district cooling plants are highly efficient and utilize non-CFC refrigerants. The district cooling plants will contribute to a reduction in global warming potential in three ways. First, the central district cooling plant chillers are much more efficient (use less electrical energy) than the chillers in the individual buildings which will be served (less energy used means lower CO₂ emissions). Second, the central district

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District cooling service from the first of several plants to be located in the downtown Chicago area should begin in mid-1995.

e. Fuel Savings Due to Use of Aluminum Coal Railcars

ComEd switched from steel to aluminum coal railcars beginning in 1993. The current fleet consists of 22 train sets (115 cars in each set) and will grow to 25 aluminum train sets by April 1995. Each aluminum railcar moves approximately 17 tons more coal than a steel railcar and, on the return trip, an empty weighs about 10 tons less. Reduced fuel consumption, and the resulting reduction in CO₂ emissions, would result from the reduced train trips needed to move the total system tonnage of coal and from the lighter weight of the empty train sets on the return trip. f. Flywheel Energy Storage

A flywheel energy storage system is being developed for commercial application on utility systems. The equipment will be able to store energy generated at night by nuclear units (on the ComEd system), store it with almost no losses (one of the key technologies being developed) and then return it to the grid to offset peak period generation which is usually fossil fueled. The development began in 1992 and will reach commercialization in 1997. Flywheels will be installed to meet peak loads and improve system load factors. CO₂ reductions representing the installation of 1,000 megawatthours of capacity per year from 1997-2000 are shown in the Table 1.

Flywheels will be commercialized for use by other utilities in the U.S. and around the world. The quantity of CO₂ reductions will depend on the difference in CO₂ emissions for the charging and displaced generation on the utility system.

Wind Turbine Demonstration Project

A 225 KW wind turbine generator will be installed at the ComEd Power House in Zion, Illinois in 1995. The output from this generator will be approximately 107,000 KWhrs per year based on historical Zion Station meteorological tower windspeed data. The output of this generator will be connected to the grid, it is expected to remain in operation for 2O years.

h. Wood Pole Life Extension

ComEd has about 1.5 million wood poles on the system which need periodic replacement due to decay causing organisms. Currently, as many as 12,000 poles per year need to be replaced due to this decay. ComEd will implement a supplemental treatment program which will reduce that loss to less than 4500 poles per year. Such a program will save 7500 mature southern pine trees per year or 75,000 trees over 10 years and will result in a significant avoided loss of carbon sequestration.

The CO₂ reductions for these projects, as listed in Table 1, are estimated to total 2,070,159 tons annually in the year 2000.

ComEd 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 the activities and achievements of the ComEd prior to its becoming a participant in the Program, expressed on an annual basis to the extent possible.

ComEd will confer with DOE on or before December 31,1996 to evaluate jointly the progress of ComEd in achieving its Climate Challenge Program goals and to discuss possible adjustments to its voluntary commitments.

The Climate Challenge Program representative for ComEd will be Mary F. O'Toole, Environmental Services Manager, 10 South Dearborn Street, 35 FN West, Chicago, L 60603. ComEd agrees to notify DOE prior to or, in any event, no later than 30 days after any change in the contact.

II. DOE Commitments

DOE's commitments to ComEd are those set out in section III of the Climate Challenge Program MOU which are hereby incorporated in this Participation Accord by reference.

DOE will consider ComEd 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 pertainin to ComEd for purposes of addressing Climate Challenge Program issues, it will provide notice to ComEd.

DOE will provide an annual report to ComEd 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.

The Climate Challenge Program representative for DOE, who will serve as liaison to ComEd, will be Allan Hoffman, Department of Energy, Room 6B-128 (EE-10), 1000 Independence Avenue, SW, Washington, DC 20585; (202) 586- 1786. DOE agrees to notify ComEd prior to or,in any event, no later than 30 days after any change in liaison responsibilities or personnel.

III. General Provisions

Use of DOE-developed materials by ComEd 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.

In addition to the foregoing provisions, DOE and ComEd 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.-VD), VF and V.G of the Climate Challenge Program MOU, which are hereby incorporated by reference.

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)
James J. Connor

Commonwealth Edison Company
________________ (date)

Secretary of Energy or designee
U.S. Department of Energy
________________ (date)

Attachment:

Attachment A - Climate Challenge Program MOU, and exhibits

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