Climate Challenge Participation Accord

DOE's Energy Partnerships for a Strong Economy

This Participation Accord describes the commitments that The Detroit Edison Company (DECO) 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 (Climate Challenge Program MOU) (see Attachment A to this Participation Accord).

I. DECO Commitments

A.
Consistent with paragraph II.B.1.f of the Climate Challenge Program MOU, DECO will:

Undertake specific projects or actions, or make specific expenditures on projects or actions, to reduce net greenhouse gas emissions, as indicated below (supplemental information on DECO's projects is attached):

• Increase nuclear utilization

• Pursue supply-side efficiency improvements

• Implement the new DSM plan

• Adopt a CO₂ sequestration strategy

• Participate in EPA's Landfill Methane Outreach Program

• Expand "Energy Partnerships" initiative with customers

• Continue electric vehicle demonstration efforts

• Establish an energy efficient lighting replacement schedule*

B.
DECO 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 DECO prior to its becoming a participant in the Program, expressed on an annual basis to the extent possible.

C.
DECO will confer with DOE on or before June 30, 1997 to evaluate jointly the progress of DECO in achieving its Climate Challenge Program goals and to discuss possible adjustments to its voluntary commitments.

D.
The Climate Challenge Program representative for DECO will be:

Ronald L. McIntyre
Director, Environmental Initiatives
The Detroit Edison Co.
2000 Second Ave.
Detroit, MI 48226


DECO agrees to notify DOE prior to or, in any event, no later than 30 days after any change in the contact.

II. DOE Commitments

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

C.
DOE will provide an annual report to DECO 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 DECO, will be:
Allan Hoffman
Department of Energy
Room 6B-128 (EE-10)
1000 Independence Ave., SW.
Washington, DC 20585
(202)586-1786


DOE agrees to notify DECO 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 DECO 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 DECO 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)
________________________________
Anthony F. Earley, Jr.
President and Chief Operating Officer
The Detroit Edison Company
February 3, 1995

(Original signed by)
________________________________
Hazel R. O'Leary
Secretary
U. S. Department of Energy
February 3, 1995

Attachment:

Attachment A -- Climate Challenge Program MOU and exhibits

Supplemental information related to Section I.

Company Description:

The Detroit Edison Company is an investor-owned electric utility which serves about 2 million customers in 7,600 square miles of Southeastern Michigan. In 1993, system sales were nearly 43,000 GWh and the system peak demand was 9,362 MW. Coal-based generation represented more than 80 percent of the system output. The Fermi nuclear facility (1110 MW, net winter capability) is the only non-fossil steam plant in the system.

CO₂ Emission Profile:

	Year		Emission, million tons		System Sales, GWh



	1987			48.0				39,492

	1988			45.8				40,998

	1989			44.5				40,585

	1990			43.7				40,504

	1991			43.6				41,049

	1992			39.9				40,697

	1993			42.5				42,965

DECO's historical CO₂ emissions peaked in 1987, the year Fermi 2 came on line, and have declined since that time. Steady annual increases in capacity factor from the nuclear unit have offset fossil generation and resulted in substantial reductions in CO₂ emissions. It should be pointed out that 1992 had an abnormally cool summer with reduced air conditioning load which further decreased the need for fossil generation.

DECO Commitments: