Climate Challenge Participation Accord

DOE's Energy Partnerships for a Strong Economy

This Participation Accord describes the commitments that Entergy Services, Inc. (Entergy) as agent for Arkansas Power & Light Company, Gulf States Utilities Company, Louisiana Power & Light Company, Mississippi Power & Light Company, New Orleans Public Service Inc., System Energy Resources, Inc., and Entergy Operations, Inc. 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 (MOU) and exhibits thereto dated April 20, 1994.

Entergy provides electric service to approximately 2.3 million customers located in some 1,600 communities and in extensive rural areas in the states of Arkansas, Louisiana, Mississippi, and Texas. Entergy has a total of 93 generating units including four nuclear plants, three large coal power plants, many oil/gas power plants of various size and three hydropower plants, amounting to a total generating capacity of 22,469 MW.

I. Utility Commitments

A.
(1)
Consistent with paragraph II.B.1.a of the Climate Challenge Program MOU Entergy:

a)
Has been monitoring the development of the Eletro- Technology Investment Fund and is committed to evaluating the economic feasibility of participating in this program.

b)
Has made an initial investment of $5000 in 1994 to be one of 50 electric utilities participating in the Utility Forest Carbon Management Program and will consider further investments when specific projects are identified.

c)
Has committed to evaluating the economic feasibility of participating in the National Earth Comfort Program.

d)
Has been monitoring the development of the International Utility Efficiency Partnerships Organization and is committed to evaluating the economic feasibility of participating in this program.

(2)
Consistent with paragraph II.B.1.f of the Climate Challenge Program MOU Entergy has undertaken or will undertake the following specific projects or actions to reduce, avoid, or sequester greenhouse gas emissions to the extent these projects or actions are economically and technically feasible:

a)
Nuclear Availability Improvements: Raise the nuclear unit annual capacity factor targets from 81% to 87% . This will result in the reduction of over 8, 694,000 tons of CO₂ through the year 2000.

b)
Nuclear Capacity Upgrade Projects: Undertake various projects to increase the electrical generating capacity at three nuclear generating units. This effort will result in the reduction of over

2,571,000 tons of CO₂ through the year 2000.

c)
Fossil Station Efficiency Upgrades: Improve fossil unit efficiency at nineteen units in the system. These projects will result in the reduction of over 1,908,000 tons of CO₂ through the year 2000.

d)

Renewable Generation: Entergy began commercial operation of the Vidalia Hydroelectric Project in 1990. This project will result in the reduction of over 5,343,000 tons of CO₂ through the year 2000.

e)
Energy Efficiency Services: Provide energy efficiency services through the Entergy Systems and Service, Inc. subsidiary that will result in reductions of over 6,653,800 tons of CO₂ through the year 2000.

f)
Electrotechnology Projects: Encourage the replacement of fossil fired engines with more efficient electric motors and compressors at industrial customers. This effort could result in a net reduction of over 1,003,600 tons of CO₂.

g)
Transmission & Distribution Efficiency Projects: Undertake projects to improve transmission and distribution efficiency which will result in over 1,123, 900 tons of CO₂.

h)
Forestry Carbon Management Projects: Create and manage wetlands and a mitigation bank that will ensure the sequestration of over 82,500 tons of carbon through the year 2000.

i)
Transportation Fleet Projects: Undertake various activities to reduce greenhouse gas emissions from the system vehicle fleet and other modes of travel.

j)
CFC Recovery: Institute CFC recovery and recycling programs and gradually phase out CFC products to eliminate the release of these greenhouse gases.

k)
Communication Technologies and Consolidation of Operations: Reduce greenhouse gas emissions by closing redundant offices, facilities, and utilizing new communication technologies.

Entergy estimates that implementation of these emission reduction strategies will result in a cumulative CO₂ reduction of over 27 million tons through the year 2000. This represents an annual reduction of over 4 million tons in the year 2000. Details of these projects are shown in Attachment 1 to this Accord.

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

C.
Entergy will confer with DOE by December 15, 1996 to evaluate jointly the progress of Entergy in achieving its Climate Challenge Program goals and to discuss possible adjustments to its voluntary commitments.

D.
The Climate Challenge Program representatives for Entergy will be:

(Primary)

Dr. T.W. Schnatz
P.O. Box 2951
Beaumont, TX 77704-2951


(Alternate)
Ms. Kay Arnold
P.O. Box 8082
Little Rock, AR 72203


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

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

C.
DOE will provide an annual report to Entergy describing the actions 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 Entergy, will be:

Allan Hoffman
Dept. of Energy
Room 6B-128(EE-10)
1000 Independence Ave. SW
Washington, DC. 20585
(202)586-1786


DOE agrees to notify Entergy prior to or, in any event, no later than 30 days after any change in liaison responsibilities or personnel.

A.
Use of DOE-developed materials by Entergy 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 Entergy 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)
_________________________________
President/CEO or designee
Entergy Services, Inc.

__________________________ [date]

(Original signed by)
_________________________________
Secretary of Energy or designee
U.S. Department of Energy

___________________________ [ date]

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