Climate Challenge Participation Letter
DOE's Energy Partnerships for a Strong Economy
Climate Challenge Participation Accord
This Participation Accord describes the commitments that COM/Electric 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 exhibits
thereto dated April 20, 1994 (the Climate Challenge Program MOU) (see Attachment
A to this Participation Accord).
The COM/Electric companies are comprised of Commonwealth Electric Company
(Commonwealth), Cambridge Electric Light Company (Cambridge), and Canal
Electric Company. Commonwealth Electric and Cambridge Electric Light Company
are retail electric companies, which together serve approximately 360,000
customers in Southeastern Massachusetts and the city of Cambridge. Canal
Electric is a wholesale electric generating company that provides electric
power to Cambridge and Commonwealth and other utilities in Massachusetts.
I. Utility Commitments
A. Consistent with paragraph II.B.1 of the Climate Challenge Program MOU,
COM/Electric has undertaken or will undertake the following specific
projects and actions to reduce, avoid, or sequester greenhouse gas emissions.
These actions are anticipated to result in the reduction of approximately
654,000 tons of CO2 in the year 2000.
- COM/Electric will continue to manage its retail supply portfolio to
provide diversified resources that meet customer energy needs by procuring cost
efficient sources of generation that may be less carbon intensive.
COM/Electric estimates that this diversification will continue to
result a CO2 emission rate of less than 1,300 pounds per megawatt
hour through 2000.
- Residential, commercial and industrial demand side management (DSM)
programs have been implemented, saving 462,000 tons of CO2
from 1991 to 1994. COM/Electric expects to continue these DSM efforts and
implement new programs such as "Green Saver" which is designed to develop and
deliver conservation programs to customers. Projected savings are
anticipated to be approximately 962,500 tons of CO2 between
1995 and 2000 or a resultant annual savings of approximately 158,000 tons
between 1991 and 2000.
- COM/Electric is in the process of converting Canal Unit #2, a 600 MW oil
fired generating facility, to co-fire natural gas. Permitting has been
completed and construction is underway and it is anticipated that the
conversion will be complete by mid 1996. CO2 reductions of
approximately 475,000 tons annually will be achieved.
- The COM/Electric companies operate co-generation facilities that reuse
steam from the electric generation process a second time to provide
heating/cooling and process steam. COM/Electric will continue these
efforts and expand where possible. Utilization of co-generated steam
reduces the need for customers to operate their own combustion equipment
to generate steam requirements. It is estimated that between 1992 and 1994
approximately 19,700 tons of CO2 were avoided in this way by
additional steam sales over 1991 volumes. It is anticipated that approximately
49,000 additional tons of CO2 will be avoided between 1995 and 2000.
The result will be an annual average reduction of approximately 7,300 tons of
CO2 between 1992 and 2000 by the increased use of co-generated steam.
- COM/Electric implemented a Conservation Voltage Reduction (CVR)
program in 1993 that reduces system delivery voltage to the end user which
translates into a decrease in electricity consumption and corresponding
reductions in carbon dioxide emissions. COM/Electric will continue its
CVR program and it is projected that between 1995 and the year 2000
approximately 8,500 tons of CO2 will be avoided, or approximately
1,700 tons annually.
- COM/Electric will continue to monitor its electric transmission and
distribution system programs to maintain and improve overall efficiency
via techniques such as voltage and equipment upgrades, conductor loss
optimization and the use of low loss transformer and other equipment.
Cumulative reductions in CO2 emissions through these efforts taken
from 1991 to 2900 are estimated to be approximately 74,600 tons or 12,400 tons
of CO2 annually.
- COM/Electric has and will continue to promote and support replanting and
revegetation through community involvement and other projects. Since
January 1,1991 the COM/Electric companies have conducted tree planting
projects with local Boy Scout and other groups that resulted in
approximately 1000 trees being planted in several communities. A program
to promote the planting of ornamental and shade trees through discount
coupons offered at local nurseries was implemented in conjunction with the
25th anniversary of Earth Day in 1995. This effort helped promote
the value of trees in consuming carbon dioxide and in reducing heating and
cooling energy needs and resulted in the planting of over 800 trees. It is
estimated that, at 13 lbs CO2/yr/tree, approximately 5 tons of
CO2 per year is sequestered by the 800 trees.
- COM/Electric will continue to participate in research and other programs to
promote the increased use of electric vehicles and will explore the use
of, and where feasible, purchase or construct electric vehicles. COM/Electric is
participating as a charter member of the Department of Energy's "Clean
Cities" Program for the Boston Area. COM/Electric is also actively
involved in a pilot commuter demonstration project with the State of
Massachusetts and with the Northeast Alternative Vehicle Coalition. The company
has constructed two electric vehicles via the recycling/conversion of gasoline
powered vehicles and is investigating the addition of electric powered or
alternative fuel vehicle and trucks in its fleet. The company is also
participating in a first of its kind program in the Northeast to provide
electric powered buses. CO2 reductions from these efforts have
not been quantified at this point.
- COM/Electric issued a "Green Power" Request for Proposal (RFP) in 1995
for electricity generated from fuel cells and renewable energy resource.
These supplies will be integrated into the supply portfolio and are
expected to provide additional reductions of CO2 by 2000.
- COM/Electric will continue to explore and promote the use of
photovoltaics, wind and other alternative sources of electric power in
appropriate applications and promote the use of energy efficient
appliances such as high efficiency heat pumps. Greenhouse gases will be reduced
through fuel substitution and energy efficiency.
- COM/Electric will continue to participate in and to promote energy savings
programs such as the Environmental Protection Agency's "Green Lights"
program to gain reductions in greenhouse gas emissions.
COM/Electric will use reasonable efforts, consistent with financial resources
and contingent upon consideration of ratepayer impacts and regulatory commission
review and approval as may be necessary, to implement these or additional
projects to reduce, avoid or sequester CO2 emissions.
B.COM/Electric 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 COM/Electric prior to its becoming a participant in the
Program, expressed on an annual basis to the extent possible.
C. COM/Electric will confer with DOE on or before January 1, 1997 to
evaluate jointly the progress of COM/Electric in achieving its Climate Challenge
Program goals and to discuss possible adjustments to its voluntary commitments.
D. The Climate Challenge Program representative for COM/Electric will be
Mr. Stephen B. Wood, COM/Electric, 2421 Cranberry Highway, Wareham, MA 02571.
COM/Electric agrees to notify DOE prior to or, in any event, no later than 30
days after any change in liaison responsibilities or personnel.
II. DOE Commitments
A. DOE's commitments to COM/Electric 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 COM/Electric'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 COM/Electric for purposes
of addressing Climate Challenge Program issues, it will provide notice to
COM/Electric.
C. DOE will provide an annual report to COM/Electric 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 COM/Electric, will be Mr. Larry Mansueti, Department of Energy,
Room 6B-128 (EE-10), 1000 Independence Avenue, SW, Washington, DC 20585,
(202)586-2588. DOE agrees to notify COM/Electric prior to or, in any event
, no later than 30 days after any change in liaison responsibilities or
personnel.
III. General Provisions
A. Use of DOE-developed materials by COM/Electric 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 COM/Electric 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 subsection 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.
____________________________________
President/CEO or designee
COM/Electric
_________________
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
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