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Climate Challenge Participation Accord

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Climate Challenge Participation Accord

Accord for Participation in
Climate Challenge Between General Public Utilities Corporation (GPU) and
United States Department of Energy

This Participation Accord describes the commitments that GPU 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).

GPU is a holding company which consists of three operating electric utilities, two service organizations, and an exempt subsidiary. GPU's operating electric utilities include Jersey Central Power and Light Company (JCP&L), which serves about 911,000 customers in New Jersey; Metropolitan Edison Company (Met-Ed), which serves about 451,000 customers in 14 eastern and south central Pennsylvania counties; and Pennsylvania Electric Company (Penelec), which serves about 563,000 customers in 31 Pennsylvania counties and two New York counties. GPU Service Corporation (GPUSC) provides common corporate support functions; GPU Nuclear Corporation (GPUNC) operates and maintains the System's nuclear generating stations; and, Energy Initiatives, Inc. is GPU's non-regulated subsidiary (collectively the GPU Companies or GPU).

I. GPU Commitments

    A.
      Consistent with paragraph II.B.1a. and f. of the Climate Challenge MOU, GPU intends to undertake, has undertaken or will continue the following contributions to industry initiatives and specific project actions to reduce, avoid or sequester greenhouse gas emissions:

      1.

        Industry Initiatives

        a.

          Utility Forest Carbon Management Program (UFCMP):

          GPU has contributed the membership fee of $5,000 for 1995 and anticipates contributing a minimum of $10,000 for 1996. GPUSC also has a staff person actively participating on the UFCMP Steering and Policy Committees.

        b.
          Geothermal Heat Pump Consortium, Inc.:

          Starting in 1995, GPU will contribute $50,000 per year to the National Earth Comfort Program for the next six years. A JCP&L officer is Chairman of the Board and President of this initiative.

        c.
          EnviroTech Investment Fund:

          GPU will contribute up to $5.0 million in 1995 to this electrotechnology limited partnership investment.

        d.
          International Utility Efficiency Partnership (IUEP):

          GPU has contributed $20,000 to become a IUEP member and will participate in specific projects based on the merits of individual proposals.

        e.
          EV America:

          JCP&L and Met-Ed have submitted agreements indicating their intention to participate in the Electric Vehicle Market Allies Group. Further participation will be based on the merits of future opportunities.

      2.
        Projects and Activities

        Emission reduction estimates provided for projects and activities are based on the calculated emission rates for specific GPU facilities in the case of projects or activities which reduced generation. Calculated average annual emission rates per megawatt-hour (MWh) from all GPU supply sources for the year in question are used to estimate the emission benefits for "avoidance" projects.

        a.

          SYSTEM R&D

          GPU has sponsored and will continue to sponsor a broad range of facility, operations and technology development focused R&D programs which have potential efficiency improvement and greenhouse gas reduction benefits. The expected 1995 expenditure on these programs, listed in Attachment B, is $20.7 million.

        b.
          GPU FOSSIL AND HYDRO GENERATION

          (1)

            Heat Rate Maintenance/Improvement Program:

            GPU will continue this program for the routine review of equipment performance and the implementation of cost-beneficial, efficiency improvement capital projects. While improved generation operation and minimization of efficiency degradation are the primary objectives of the program, a secondary benefit of the projects as a whole is the reduction of greenhouse gas emissions due to reduced fuel use and or emissions per MWh generated. Attachment C lists all projects, including pollution control projects with a negative heat rate improvement, which are planned and those completed since January 1991. Capital expenditures on thermal performance projects with a positive heat rate improvement were $397 million since 1991. Planned expenditures for 1995 through 1999 on projects yielding positive heat rate improvements are $231 million.

          (2)
            Warren Repowering Project:

            Through a cooperative agreement with DOE, under Clean Coal V, Warren Unit 2 is scheduled to be repowered using externally fired combined cycle technology. The heat rate for this unit is expected to improve from approximately 13,890 Btu/kWh to at least 9,830 Btu/kWh. This will provide a 30% reduction in CO2 being emitted per kWh beginning in 1997.

          (3)
            Yards Creek Hydroelectric Pumped-Storage Plant Upgrade:

            A pump-turbine upgrade program being undertaken at this station owned by Jersey Central Power & Light and Public Service Electric & Gas will improve efficiency and capacity. The upgrade of the first unit completed in 1993 increased its capacity by 20 MW. Similar results are expected for the upgrades of the other two units planned for completion in 1995 and 1996. For 1993-1994, it is estimated that the GPU share (50%) of the improvements reduced emissions by 23 tons of CO2, 0.01 tons CH4, and 0.01 tons N2O, or 27 equivalent tons of CO2. For 1995-2000, GPU's share of the improvements are estimated to reduce cumulative emissions of 209 tons CO2, 0.11 tons CH4 and 0.11 tons N2O, or 246 equivalent tons of CO2. The GPU year 2000 reduction estimate is 36 tons CO2, 0.02 tons CH4 and 0.018 tons N2O, or 42 tons CO2 equivalent emissions.

          (4)
            Station Repowering Studies:

            GPU has initiated studies regarding repowering opportunities using clean coal, biomass and other advanced technology options, which have potential greenhouse gas reduction benefits, at the Werner, Sayreville, Gilbert, Seward and Titus generating stations. These projects will be implemented, contingent upon a determination of their cost-effectiveness and obtaining regulatory approval.

          (5)
            Seneca Hydroelectric Pumped-Storage Plant Upgrade:

            The Seneca pump-turbines owned by Pennsylvania Electric and Cleveland Electric Illuminating were upgraded in 1991-93 to improve efficiency and capacity. The capacity rating increases totaled 49 MW. GPU's share of this facility improvement reduced emissions 12 tons CO2 equivalent in 1993 and 1994, or 10 tons CO2, 0.0045 tons CH4 and 0.005 tons N2O. GPU's estimated share of Seneca's cumulative reduced emissions for 1995-2000 are 42 tons CO2, 0.02 tons CH4 and 0.02 tons N2O, or 49 tons CO2 equivalent. One sixth of the reduction for this period will occur in 2000.

          (6)
            Homer City Greenhouse Project:

            Penelec will continue to operate a unique program for improving the overall energy efficiency of the operation at its Homer City Station generating facility, contingent upon the continued interest of its partner. Waste heat from a portion of the water exiting the condensers is diverted from the cooling towers to an 111/2 acre greenhouse. The benefits of this conservation effort, an annual savings of $500,000 in heating cost and the avoidance of 4,384 tons of CO2 equivalent emissions, are being credited to this Accord beginning in 1991.

          (7)
            Generating Station Retirements:

            Direct CO2 emission reductions have resulted from the retirement of GPU generating facilities for Clean Air Act compliance and other reasons. GPU Facilities that have been completely retired include the Penelec Front Street and Williamsburg stations, which together emitted 884,328 equivalent tons of CO2 in 1990, and JCP&L Sayreville Station, Units 1, 2 and 3, which were accountable for 17,382 equivalent tons of CO2 in 1990, were retired in 1994. Finally, JCP&L Gilbert Units 1 and 2 will be limited to gas firing and Unit 3 to 500 hours of oil firing per year beginning May 31, 1995. Supplemental oil firing of Gilbert Unit 8 will be discontinued beginning 1/1/95. The 1990 annual equivalent emissions from the Gilbert sources/fuels which will be retired is 130,349 tons of CO2.

          (8)
            Ash Utilization:

            The use of coal combustion by-products (CCB) as a substitute for cement in concrete products avoids CO2 emissions and provides a beneficial use for ash materials. GPU will continue its efforts to 1) improve the ash quality at the coal-fired power plants it operates (which has been affected by pollution control retrofits such as low-NOX burners) and 2) expand the quantity of ash which is beneficially used.

        c.
          JCP&L, MET-ED AND PENELEC OPERATING COMPANIES

          (1)

            Demand-Side Management, Efficiency and Electrotechnology Programs:

            GPU operating subsidiaries JCP&L, Met-Ed and Penelec have played a leading role in the development and validation of a broad range of energy efficiency programs which have been offered to their customers since the early 1980's. The programs range from audits, education and technical assistance to energy efficiency rebates and appliance turn-in programs. Typical programs offered are described in Attachment D. Cumulative energy savings from these programs since the beginning of 1991 are estimated at 685,523 MWh, an avoidance of 462,639 tons CO2, 210 tons CH4 and 246 tons N2O, or equivalent CO2 emissions of 545,981 tons. The GPU operating companies plan to continue certain current programs and introduce new energy efficiency programs as long as they are cost-effective, contingent upon regulatory proceedings under way or anticipated shortly in New Jersey and Pennsylvania. Our present cumulative estimate of energy savings from efficiency programs offered in the 1995 to 1999 time frame is 2,330,516 MWh. This estimate is equivalent to an avoidance of 1,613,580 tons CO2, 768 tons CH4 and 848 tons N2O, or equivalent CO2 emissions of 1,901,932 tons.

          (2)
            Transmission & Distribution (T&D) Loss Reduction Programs:

            Three broad classifications of transmission and distribution loss reduction and efficiency/operation improvement programs have been implemented by GPU. Following is a brief description of each program.

            Transformer Loss Evaluation Program

            GPU purchases efficient Distribution and Substation transformers by including the cost of losses during the bid evaluation process. Loss reductions result when original transformers are replaced with more efficient transformers.

            Shunt Capacitor Programs

            The addition of shunt capacitors to the GPU T&D system reduces line losses by improving power factor and voltage profile. Reduced current on the lower voltage systems also provides additional loss reductions which are reflected throughout the supply system.

            T&D System Improvement Programs

            Loss reductions are achieved through reconductoring lines with larger wire and through conversion of lines to operation at a higher voltage. The resulting reduction of current and conductor resistance reduces losses.

            The cumulative energy savings from these programs since the beginning of 1991 are estimated at 82,133 MWh, a reduction of 55,366 tons CO2, 25 tons CH4 and 30 tons N2O, or equivalent CO2 emissions of 65,361 tons. GPU will continue these programs, contingent upon equipment economics, system performance and customer load growth. The estimated cumulative energy efficiency savings for the planned continuation of these programs in the 1995-2000 time frame is 388,468 MWh. This estimate is equivalent to a reduction of 271,411 tons CO2, 146 tons CH4 and 141 tons N2O, or CO2 equivalent emissions of 319,750 tons. For 2000, the estimated reduction is 61,605 tons CO2, 45 tons CH4 and 31 tons N2O, or 72,542 equivalent tons CO2. Attachment E provides a break-down of the estimated annual savings.

          (3)
            Methane Offsets:

            GPU has contracts of varying lengths with Non-Utility Generators (NUGs) which utilize methane gas as the fuel source. The majority of the gas is recovered from landfills; one methane fuel source is agriculture based. For the period from 1991 through 1994, the operation of NUGs under contract to GPU resulted in a cumulative methane reduction of 61,164 tons, or 1,345,605 tons CO2 equivalent. Future methane reductions as a result of such agreements are dependent upon equipment performance, landfill methane emission rates and the economics surrounding the agreements, all of which may change. GPU’s current estimate of future, cumulative greenhouse gas reductions due to methane combustion at facilities under contract is 156,558 tons methane, or 3,444,280 equivalent tons of CO2 for the period 1995 to 2000. For 2000, the methane reduction is projected to be 28,797 tons or 633,533 tons CO2 equivalent. Historic and projected reductions are shown in Attachment F.

          (4)
            Cell:

            JCP&L has installed a 200 KW, phosphoric acid fuel cell on the site of one of its customers, AT&T Research Center at Holmdell, New Jersey. This facility, which began service in January 1995, will provide premium quality, base load electric service as well as heat to AT&T.

            Preliminary estimates of the energy savings from this installation indicate approximately 1,000 tons of CO2 emissions will be avoided annually. Detailed performance records of this project will be maintained to allow for more accurate energy and greenhouse gas impact reporting. JCP&L will continue to operate this facility for the useful, economic life of the equipment. Preliminary estimates for the period from 1995-2000 indicate the fuel cell will reduce emissions by a cumulative total of 6,000 tons of CO2.

          (5)
            Green Lights Program:

            JCP&L is a Utility Ally of the Green Lights initiative, and through financial and marketing/technical assistance to its customers has supported lighting energy savings. These energy savings are reflected in JCP&L's DSM program results reported in Attachment D. At JCP&L headquarters, the company has achieved 467 kw of lighting load reductions (representing annual energy savings of 1,634 MWh) as a result of retrofits to-date. This reflects an annual savings in lighting energy in excess of 60% for these facilities. For 1994, partial year energy savings avoided emissions of 644 tons CO2, 0.3 tons CH4 and 0.3 tons N2O, or 758 tons CO2 equivalent. For the cumulative period of 1995-2000, estimated avoided emissions are 6,817 tons CO2, 3.5 tons CH4 and 3.6 tons N2O, or 8,036 tons CO2 equivalent. About one sixth of this avoidance will occur in 2000. Additional cost effective retrofits at company facilities, including Phillipsburg, Allenhurst, Dover, Lakewood, Morristown, Gillette and Forked River, will be completed in 1995 in compliance with the Green Lights agreement.

          (6)
            Municipal Tree and Single Tree Replacement Programs and Research:

            Met-Ed and Penelec will continue participation in two tree replacement programs, contingent upon the availability of funds. The "Municipal Tree Replacement Program" (MTRP) is a joint undertaking with participating municipalities and the Pennsylvania State University. The Single Tree Replacement Program (STR) is a program to replace trees which are a potential hazard for right-of-ways with slower growing more compatible tree species. Since 1991, the companies have planted 3,472 trees under these programs.

          (7)
            Electric Vehicles:

            Met-Ed and JCP&L have eight EV’s including two G -Vans, two TE - Vans and four Chevy S10 pickup truck conversions. GPU is also participating in a Pennsylvania Electric Transportation Corporation (PETC) Project for construction of a proto-type Utility Electric Vehicle (UTEV) and will, contingent upon available funds, purchase seven (7) additional EV’s with an anticipated December, 1995 delivery.

          (8)
            Transmission & Distribution Facility Maintenance:

            As a part of its ongoing transmission and distribution facility maintenance, JCP&L has performed, and will continue, a series of activities to reduce normal leakage from substations fitted with sulfur hexafluoride (SF6) gas charged equipment. The activities have included increased maintenance and the replacement of SF6 charged breakers. For the period from 1991-1994, these maintenance practices have reduced SF6 usage by a cumulative total of 8.46 tons, or 115,022 tons CO2 equivalent emissions.

        d.
          GPUSC

          (1)

            Green Lights Program (Parsippany):

            By the end of 1995, GPUSC will have completed a high efficiency lighting program resulting in an approximate 93 kW or 385 MWh per year reduction as part of its Green Lights initiative. This program is expected to avoid annual emissions of 265 tons CO2, 0.14 tons CH4 and 0.12 tons N2O, or 313 tons CO2 equivalent. For 1996-2000, estimated cumulative avoided emissions are 1,346 tons CO2, 0.72 tons CH4 and 0.67 tons N2O, or 1,586 tons CO2 equivalent. About one fifth of the avoided emissions are attributable to 2000.

        e.
          GPUNC

          (1)

            Capacity/Availability Improvement Programs at OC and TMI:

            Oyster Creek and Three Mile Island nuclear power plants have instituted availability and capacity factor improvement programs to operate on two-year refueling cycles, reduce the number of refueling outages required and increase overall plant capacity factors. In addition, enhancement of Preventive Maintenance and Surveillance programs and Pre-Outage and Outage Planning activities are expected to reduce the duration of outages to increase plant capacity factors. GPUNC's goal is to achieve two-year cycle capacity factors of 88% for TMI and 83% for OC. Using the 1990/1991 generation cycle average for Oyster Creek and TMI as the baseline, nuclear production at these stations increased by 4,919,056 MWh during the 1992 to 1994 period. This is equivalent to an emissions reduction of 3,285,804 tons CO2, 1,462 tons CH4 and 1,772 tons N2O, or 3,885,151 tons CO2 equivalent. It is estimated that the planned continuation of these programs will result in the reduction of a cumulative total of 2,011,316 tons CO2, 1,031 tons CH4 and 1,051 tons N2O, or 2,370,467 tons of CO2 equivalent emissions for the period of 1995 to 2000. For 2000, the estimated emission reduction is 341,121 tons CO2, 248 tons CH4 and 172 tons N2O, or 401,585 tons CO2 equivalent.

        f.
          GPU SYSTEMWIDE

          (1)

            Ridesharing:

            Pursuant to the Clean Air Act Amendments of 1990 (CAAA) and the 1992 New Jersey Traffic Congestion and Air Pollution Control Act, JCP&L, GPUSC and GPUNC have developed and are implementing plans for their facilities in New Jersey to increase average passenger occupancy (APO) through ridesharing programs and employee incentives. Increased APO has the potential to reduce GHG emissions and traffic congestion related to employee commuting.

          (2)
            Ozone Depleting Chemical (ODC) Management:

            GPU developed and issued an Ozone Depleting Chemicals Management System-wide guidebook in 1994. This resource provides guidance and information on the use, handling and disposal of ozone depleting chemicals, including but not limited to CFC’s, HCFC’s and halons. The GPU Companies have implemented several specific projects and programs which decreased CFC, HFC and HCFC usage and/or increased capture and recycling. These activities include the JCP&L Appliance Turn-In Program which resulted in the recycling of 8,167 lbs. of refrigerants (CFC-11 -0.80 tons, CFC-12 -2.91 tons, HCFC-22 -0.10 tons, SO2 0.25 tons, other -0.14 tons) with a CO2 equivalence of 27,405 tons. GPUNC has removed 55 halon cylinders with 13,599 lbs. of halon 1301 and 32 lbs. of halon 1211. Three of the 1301 systems were replaced with sprinkler systems. Additionally, a 60 ton chiller which used 75 lbs. of R-22 was replaced with a direct expansion unit which currently uses 57 lbs. of R-22. GPUSC converted the Reading facility chillers to R-123, and two (2) CFC-11 chillers totalling 2000 lbs. will be converted by the end of 1995.

          (3)
            Video-Conferencing:

            In 1991, GPU implemented and will continue to use a sophisticated videoconferencing system interlinking all the GPU Companies (Penelec, Met-Ed, JCP&L, GPUSC, GPUNC) at their primary locations. This system allows simultaneous interactive conferencing between groups at different locations without non-productive travel time and related travel cost. For the period 1991-1994, videoconferencing conservatively eliminated over 966,000 cumulative miles of travel by GPU employees, equalling 428 tons of CO2, 0.06 tons N2O and 0.39 tons CH4 , or a CO2 equivalent reduction of 456 tons. GPU estimates that an additional 0.119 tons N2O, 0.77 tons CH4 and 848 tons CO2 or 903 tons of CO2 equivalent emissions will be avoided by the end of 2000. In 2000, this program is estimated to reduce emissions by 0.2 tons N2O, 0.13 tons CH4, and 143 tons CO2, or 152 tons CO2 equivalent.

          (4)
            User Scale Applications - Photovoltaics (USAPV) Project:

            GPU, working with the DOE and Atlantic Electric, has arranged for two million dollars worth of projects to be carried out through the USAPV. The purpose of USAPV is to demonstrate user-scale photovoltaic applications in the Northeast. Reporting will be provided for projects funded in the GPU Companies' service territory. JCP&L and Met-Ed are presently reviewing funding requests for seven and three projects, respectively.

          (5)
            Facility Energy Consumption Reduction Projects:

            GPU Companies have made numerous operational improvements which have led to energy savings since 1991. GPUNC at its Three Mile Island facility revamped the setup and operation of a Mechanical Drafting Cooling Tower which yielded an estimated annual 1,750 MWh energy savings. In 1994, this action yielded an annual emission avoidance of 0.39 tons CH4, 0.46 tons N2O, and 886 tons CO2, or 1,044 tons CO2 equivalent. Met-Ed has performed several activities including “ice storage” for cooling at its Reading and York facilities, the installation of speed controllers on several cooling tower motors, automated management of lighting at one building, installation of high efficiency lighting at several facilities, replacement of incandescent exit signs with LED exit signs, and HVAC management. Penelec is installing a HVAC retrofit at its Altoona facility using a Ground Source Heat Pump which is expected to save 1,215 MWh annually. In 1995, GPUSC's Reading, Pennsylvania facility will start installing ultrasonic humidifiers which are projected to reduce humidifier kWh usage by approximately 97% per unit according to the manufacturer's claim. The humidifier retrofit is expected to occur over a 5-7 year period. JCP&L anticipates installing variable speed motor drives on five (5) motors at its Phillipsburg facility.

          (6)
            Recycling Programs:

            The GPU Companies have instituted and will continue extensive, multi-faceted recycling programs which have resulted in benefits since 1991. The areas for which one or more of the GPU Companies recycle includes: scrap metals (aluminum, brass, copper, iron; nickel; mercury; steel); paper; cardboard; meters, both for reuse and scrap metal; construction debris, asphalt and cement; drums, for reuse; transformers; transformer oil; wood pallets for reuse; wood reels; treated wood sent to a “waste to energy” facility; and, untreated wood for mulch. In addition, several of the companies are attempting to purchase various products with a post consumer recycled component and Met-Ed has switched to 100% recycled paper as the “paper of choice” in all photocopiers, laser printers and fax machines. Attachment G provides a summary of the recycling efforts for 1991-1994, which are estimated to have avoided a cumulative total of 50,410 tons of CO2 equivalent emissions. From 1995-2000, rough estimates indicate avoidance of a cumulative total of 66,643 tons CO2 equivalent emissions, with 11,115 tons avoided year 2000 emissions.

          (7)
            Transportation:

            The GPU Companies have implemented and will continue programs, which resulted in greenhouse gas reduction benefits since 1991, to improve fleet operations and reduce waste streams. Vehicles are maintained on a scheduled basis in order to maximize efficient operation. A large number of GPU's fleet bucket trucks are equipped with battery operated buckets and booms which eliminates the need to operate the vehicle while the booms are in use. The transportation groups generally recycle degreasers and other solvents, antifreeze, batteries, and used motor oil. They have also switched to less volatile and non-hazardous degreasers. In addition, used tires are recycled and approximately 50 percent of tires replaced annually are recapped tires. Starting in 1995, JCP&L will purchase and use recycled motor oil in its fleet vehicles. For the period from 1991-1994, system-wide transportation activities have avoided or reduced emissions by a cumulative total of 381 tons of CO2. It is estimated that an additional 763 tons of CO2 emissions will be avoided by 2000. In 2000, the activities are projected to yield a 127 ton CO2 reduction in emissions.

          (8)
            "Green" Computers:

            GPUSC Information Services (IS) Department has initiated and will continue several activities to reduce energy consumption from personal computers (PCs). One of these efforts has been to notify employees to minimize energy consumption by turning off equipment when it is not in use. Additionally, IS is generally purchasing computers which meet the U.S. EPA "Energy Star" designation. Approximately five (5) percent of GPU computers were "green" (Energy Star) as of 1994. IS estimates that it will purchase approximately 1,500 "Energy Star" PCs in 1995 and 1,450 in 1996. Emissions avoidance related to these activities equalled 70 tons CO2, 0.03 tons CH4 and 0.04 tons N2O, or 83 tons CO2 equivalent in 1994. For 1995-2000, emissions avoided are projected to cumulatively total 3,806 tons CO2, 2 tons CH4 and 2 tons N2O, or 4,485 tons CO2 equivalent. For 2000, estimated avoided emissions are at 703 tons CO2, 0.5 tons CH4 and 0.3 tons N2O, or 828 tons CO2 equivalent.

      B.
        GPU 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) of the Energy Policy Act and Exhibit B of the Climate Challenge MOU, Supplemental Guidance on Commitment Definitions and Reports. These reports of results achieved will include a calculation of greenhouse gas emission reductions, where appropriate. Any future changes to the program described herein will be discussed in the first annual report filed after such changes are made.

        GPU's annual reports may include emissions data converted by an identified, common index of comparative radiative effects.

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

      D.
        The Climate Challenge representative for GPU shall be David C. Shadle, Environmental & Regulatory Affairs Director, GPU Service Corporation, Route 183 & Van Reed Road, P.O. Box 15152, Reading, PA 19612-5152. GPU agrees to notify DOE prior to, or in any event, no later than 30 days after any change in the representative.

    II. DOE Commitments

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

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

      C.
        DOE will provide an annual report to GPU 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 representative for DOE shall be Allan Hoffman, Department of Energy, Room 6B-128 (EE-10), 1000 Independence Avenue, SW, Washington, D.C. 20585, (202) 586-1786. DOE will notify GPU prior to, or in any event, no later than 30 days after any change in the Agency's representative.

    III. General Provisions

      A.
        Use of DOE-developed materials by GPU or its operating subsidiaries will be governed by the provisions of section IV of the Climate Challenge MOU, which are hereby incorporated in this Participation Accord by reference.

      B.
        In addition to the foregoing provisions, DOE and GPU 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)

                ___________________________________________     _____________

		Senior Vice President & General Counsel	Date

		General Public Utilities







                   (Original signed by)

                ___________________________________________     _____________

        	Secretary of Energy or Designee	Date

		U.S. Department of Energy


Attachments:

Attachment A Climate Challenge Program MOU and Exhibits
Attachment B Climate Challenge R&D Projects
Attachment C Heat Rate Maintenance/Improvement Program
Attachment D Demand-Side Management, Efficiency and Electrotechnology Programs
Attachment E Transmission and Distribution Loss Reduction Programs
Attachment F Methane Offset Projects
Attachment G GPU System Recycled Materials 1991-1994


ATTACHMENT B

CLIMATE CHALLENGE R&D PROJECTS

CUSTOMER/END USE RELATED

CUSTOMER UTILITY ELECTRIC VEHICLE Design a prototype electric vehicle for purposes such as meter readers. PEERC funded project.

CUSTOMER ENVIRO END USE DATA BASE & SOFTWARE TOOL Develop end-use emissions database and software for comparison of environmental impacts of competing end-use technologies.

CUSTOMER ELECTRIC G-VAN Operate and demonstrate the use of electric powered passenger vans.

ENVIROLAWN PROJECT Collaborative effort of EPRI, EEI, EPA, Black & Decker, and 18 utilities to evaluate emissions from gasoline lawn mowers for electric technologies.

RADIO FREQUENCY DRYING EPRI coordinated project to develop a technique using radio frequency (RF) heating technology to dry plastic resins.

DEHUMIDIFICATION/REFRIGERATION Field investigate and verify the

performance and savings associated with electrotechnologies aimed at commercial dehumidification and refrigeration.

INDUSTRIAL PINCH TECHNOLOGY Advance use of differential temperature constraint analysis in designing heat recovery boilers to optimize environmental and energy performance.

RF DRYING OF HARDWOOD Collaborative effort between Niagara Mohawk and EPRI that analyzes the market potential for radio frequency (RF) drying of eastern hardwoods.

BATTERY STORAGE (ME) Assesses the feasibility of battery energy storage to augment demand-side management.

PHOSPHORIC ACID FUEL CELL Demonstrate a phosphoric acid fuel cell to supply high quality power to a dedicated computer circuit.

WESTINGHOUSE PLANAR SOLID OXIDE FUEL CELL Demonstrate the electrical and thermal cycle performance of the planar solid oxide fuel cells.

ELECTRIC TE VAN Demonstrate newer battery technology in an electric van platform.

FUEL CELL COMMERCIALIZATION Participate in the Fuel Cell

Commercialization Group for direct reforming molten carbonate fuel cell power plants.

"GENERATION" RELATED

PENN STATE OZONE RESEARCH Provide sustained, uninterrupted, long-term research on the effects of ozone on eastern hardwood forests.

GAS CO-FIRING Perform boiler testing at Conemaugh Unit 2 using natural gas as a co-firing fuel.

NE OZONE TRANSPORT REGION AIR QUALITY STUDY Obtain information to improve the air quality models being used in the Ozone Transport Region (OTR).

GRANULATED ACTIVATED CARBON CAPTURE OF MERCURY Recovery of mercury from coal combustion to maximize disposal alternatives.

WOOD CO-FIRING Evaluate wood resources and power facilities in the Penelec system for cofiring with coal to determine costs of CO2 mitigation.

D-COP FLYASH REMEDIATION Examine process for separating of unburned carbon from fly ash.

COAL PIPE BALANCING Investigate measurement and balancing methods for coal pulverizer piping systems to minimize NOX emissions.

CAMRAC LOI METER Demonstrate loss-of-ignition (LOI) monitoring device at Conemaugh.

UPGRADED COAL INTEREST GROUP Participate in an EPRI coordinated

consortium for tailored collaboration (TC) on coal projects. The U.S. D.O.E. is providing $100,000 in funding to the consortium.

COAL POND FINES Determine a methodology of economically cleaning and formulating coal pond waste material into a stable slurry fuel. The U.S. D.O.E. is providing funding in the amount of $85,000.

UTILITY BIOMASS ENERGY COMMERCIALIZATION ASSOC. Encourage the development of biomass resources and economic, competitive biomass energy technologies.

REPOWERING APPLICATIONS USERS GROUP Participate in EPRI users group for utilities interested in generation repowering issues.

CERAMIC HEAT EXCHANGER Develop and test a solid fuel, indirect, exhaust- fired combined cycle power generation alternative for higher efficiency coal combustion. The U.S. D.O.E. is providing $5 million in funding.

CO2 REDUCTION/COAL BED METHANE Investigate the possibilities of recovering methane gas from the deeper coal reserves around the Homer City power plant.

WARREN REPOWERING Apply ceramic heat exchanger to repower Warren Station. The U.S. D.O.E. is providing funding in the amount of $20 million.


ATTACHMENT C

HEAT RATE MAINTENANCE/IMPROVEMENT PROGRAM1


 Station/Unit              Project  Description                Year       Heat Rate     

                                                            Installed    Improvement    

                                                                          (BTU/Kwh)     

Seward 4       Boiler Controls Replacement                     1993                136 

                                                                                        

Seward 5       Air Heater Basket Replacement                   1994                153  

Seward 5       Flue Gas Expansion Joints Replacement           1994                  5  

Seward 5       18th Stage LP FWH Replacement                   1995                 61  

                                                                                        

Shawville 1    Boiler & NOx Controls Replacement               1993              (162)  

Shawville 1    Superheater & Economizer Replacement            1993                 33  

Shawville 1    Condenser Cleaning System Replacement           1995                 22  

Shawville 1    Cooling Tower                                   1999                 22  

Shawville 1    Last Stage Bucket Replacement (3 Rows)          1999                104  

                                                                                        

Shawville 2    Superheater & Economizer Replacement            1992                 67  

Shawville 2    Low NOx Burner Installation                     1995              (160)  

Shawville 2    Condenser Cleaning System Replacement           1997                 63  

                                                                                        

Shawville 3    Flue Duct Expansion Joints                      1991                 15  

Shawville 3    Economizer Inlet Header Replacement             1994                 17  

Shawville 3    High Temperature Reheater                       1994                 49  

Shawville 3    Air Heater Cold End Replacement                 1994                 10  

Shawville 3    Boiler Control Replacement                      1997                 10  

Shawville 3    Condenser Cleaning System Replacement           1997                 27  

Shawville 3    10A & 10B FWH Replacement                       1999                 92  

Shawville 3    Feedwater Heater Replacement                    1999                 46  

Shawville 4    Flue Duct Expansion Joints                      1992                 15        

Shawville 4    10A & 10B FWH Replacement                       1994                 93  

Shawville 4    Air Heater Basket Replacement                   1994                 19  

Shawville 4    Economizer Inlet Header Replacement             1994                 17  

Shawville 4    High Temperature Reheater                       1994                 50  

Shawville 4    Air Heater Cold End Replacement                 1995                 10  

Shawville 4    Boiler Control Replacement                      1996                 10  

Shawville 4    Condenser Cleaning System Replacement           1996                 27  

Shawville 4    LP Turbine Last 2 Stages Blades/Buckets         1998                100  

                                                                                        

Warren 1       HP Impulse Blade Replacement                    1998                 38  

Warren 1       HP Nozzle Block Replacement                     1998                 38  

                                                                                        

Homer City 1   Economizer Replacement                          1994                 29  

Homer City 1   Expansion Joint Replacements                    1994                  3  

Homer City 1   HP Turbine Nozzle Block Replacement             1994                195  

Homer City 1   LP Turbine Improvement                          1994                137  

Homer City 1   Air Preheat Coils                               1996                 49  

Homer City 1   Control & Computer Systems Modern               1996                171  

Homer City 1   Expansion Joint Replacement                     1996                 10  

Homer City 1   No. 2 Feedwater Heater Drip Replacement         1996                  1  

Homer City 1   Reheater Pendant Replacement                    1996                 65  

Homer City 1   Amertap Sytem Replacement                       1998                 40  

Homer City 1   LP Feedwater Heater Replacement                 1998                 10  



Homer City 1   Secondary Air Heater Basket Replacement         1998                 54  

                                                                                        

Homer City 2   Economizer Replacement                          1991                 29  

Homer City 2   LP Turbine Improvement                          1991                137  

Homer City 2   Air Preheat Coils                               1995                 48  

Homer City 2   Control & Computer Sytems Modern                1995                169  

Homer City 2   Primary Air Heater Basket Replacement           1995                 14  

Homer City 2   Reheater Pendant Replacement                    1995                 65  

Homer City 2   HP Turbine 1st Stage & Reaction Blading         1996                  2  

Homer City 2   3rd & 4th Stage LP FWH Replacement              1997                  5  

Homer City 2   Amertap System Replacement                      1997                 40  

Homer City 2   Secondary Air Heater Basket Replacement         1999                 54  

                                                                                        

Homer City 3   Cooling Tower Refurhbishment                    1993                 39  

Homer City 3   Turbine Component Replacement                   1993                  1  

Homer City 3   A & B PA Heater Basket Replacement              1997                 15  

Homer City 3   Computer/Controls Replacement                   1997                 77  

Homer City 3   Expansion Joint Replacement                     1997                 10  

Homer City 3   Secondary Air Heater Basket Replacement         1997                 54  

Homer City 3   1st Stage Blade Replacement                     1999                 19  

                                                                                        

Keystone 1     Turbine-Generator DEH Control System            1991                 60  

Keystone 1     LP Turbine Refurbishment                        1992                 15  

Keystone 1     1B Cooling Tower Fill Replacement               1993                 35  



Keystone 1     5A & 5B Feedwater Heater Replacement            1993                  5  

Keystone 1     5th Stage Blade Replacement                     1993                 10  

Keystone 1     LP Turbine Refurbishment                        1993                 15  

Keystone 1     8A/8B HP Heater Replacement                     1995                 10  

Keystone 1     Air Heater Basket Replacement                   1995                 10  

Keystone 1     Air Heater Outlet Gas Duct Exp Joint            1995                  5  

               Replacement                                                              

Keystone 1     Boiler Control System Replacement               1995                 10  

Keystone 1     HP Turbine Impulse Blades                       1997                 51  

Keystone 1     HP Turbine Nozzle Blocks                        1997                 22  

Keystone 1     7A HP Heater Replacement                        1997                  5  

                                                                                        

Keystone 2     5A & 5B Feedwater Heater Replacement            1992                  5  

Keystone 2     2A Cooling Tower Upgrade                        1992                 50  

Keystone 2     Boiler Control System Replacement               1994                 10  

Keystone 2     2B Cooling Tower Fill Replacement               1994                 35  

Keystone 2     6A HP Heater Replacement                        1994                  5  

Keystone 2     Air Heater Basket Replacement                   1994                 10  

Keystone 2     2B Gas Duct Expansion Joint Replacement         1994                  5  

Keystone 2     HP Turbine Impulse Blades                       1996                 50  

Keystone 2     HP Turbine Nozzle Blocks                        1996                 30  

Keystone 2     Air Heater Outlet Gas Duct Exp Joint            1996                  5  

               Replacement                                                              

Keystone 2     8A & 8B HP Heater Replacement                   2000                 10  

                                                                                        

Conemaugh 1    Cooling Tower Fill Replacement                  1992                 15  



Conemaugh 1    Economizer Replacement                          1992                 15  

Conemaugh 1    Lower Steam Cooled Wall Replacement             1992                  5  

Conemaugh 1    Natural Gas Co-Firing Conversion                1992                  5  

Conemaugh 1    Boiler Controls Replacement                     1994                 10  

Conemaugh 1    Final Reheater Outlet Header & Pendant          1994                  5  

Conemaugh 1    Flue Gas Desulfurization                        1994              (128)  

Conemaugh 1    Secondary Air Duct Expansion Joint              1994                  5  

               Replacement                                                              

Conemaugh 1    Gas Duct Expansion Joint Replacement            1996                  5  

Conemaugh 1    7A & 7B Feedwater Heater Replacement            1998                 10  

Conemaugh 1    Intermediate Reheater Replacement               1998                  5  

Conemaugh 1    8A & 8B Feedwater Heater Replacement            2000                 10  

                                                                                        

Conemaugh 2    IP Turbine Diaphragms Replacement               1991                 10  

Conemaugh 2    Natural Gas Co-Firing Conversion                1991                  5  

Conemaugh 2    2B Boiler Outlet Duct Expansion Joint Rep       1993                  5  

Conemaugh 2    Boiler Controls Replacement                     1993                 10  

Conemaugh 2    Secondary Air Duct Expansion Joint              1993                  5  

               Replacement                                                              

Conemaugh 2    Final Reheater Outlet Header & Pendant          1995                  5  

Conemaugh 2    Flue Gas Desulfurization                        1995              (125)  

Conemaugh 2    7B Feedwater Heater Replacement                 1999                  5  

Conemaugh 2    8A & 8B Feedwater Heater Replacement            1999                 10  

Conemaugh 2    Intermediate Reheater Replacement               1999                  5  



Titus 2        14th Stage Feedwater Heater Replacement         1992                 26  

                                                                                        

Portland 1     15th Stage Feedwater Heater Replacemnt          1992                 21  

Portland 1     17th Stage Feedwater Heater Replacemnt          1994                 14  

                                                                                        

Portland 2     17th Stage Feedwater Heater Replacemnt          1993                 20  

                                                                                        

Gilbert 1 & 2  Air Heater Element Replacement                  1991                 20  

                                                                                        

Gilbert 4 - 8  Heat Rate Monitoring System Installation        1993                150  

                                                                                        

Gilbert 8      Boiler 7 Economizer Replacement                 1991                 10  

Gilbert 8      8 A Vacuum Pump Replacement                     1992                  5  

Gilbert 8      Cooling Tower Upgrade                           1993                 25  

Gilbert 8      8 B Vacuum Pump Replacement                     1994                  5  

                                                                                        

Sayreville 4   Plant Instrumentation Upgrade                   1992                 10  

Sayreville 4   Plant Instrumentation Upgrade                   1993                 10  

Sayreville 4   Plant Instrumentation Upgrade                   1994                 10  

                                                                                        

Sayreville 5   Boiler #8 Expansion Joint Replacement           1991                  5  

Sayreville 5   Plant Instrumentation Upgrade                   1992                 10  

Sayreville 5   Plant Instrumentation Upgrade                   1993                 10  

Sayreville 5   Plant Instrumentation Upgrade                   1994                 10  



Werner 4       Feedwater/Condensate Control System Upgrade     1992                 10  



1 The Heat Rate Maintenance/Improvement program is intended to maximize plant performance based on cost-effective improvements and operational modifications. Some improvements, however, are offset by heat rate penalties for pollution control equipment such as low NOX burners and SO2 scrubbers and load fluctuations required to meet short-term environmental and economic dispatch requirements. Consequently, while specific heat rate improvement activities have defined improvement goals (and these goals are shown), it is not reasonable to translate individual heat rate improvement projects to projections of annual greenhouse gas benefits. In addition, these improvements are not necessarily additive or permanent.


ATTACHMENT D

DEMAND-SIDE MANAGEMENT,
EFFICIENCY AND ELECTROTECHNOLOGY PROGRAMS

JCP&L

Following is a summary of results, (including a brief description of expenditures, energy, and capacity impacts) for programs JCP&L has offered since 1991. Estimates for 1995 reflect JCP&L's commitment to continue existing programs. A regulatory filing for programs to be offered in 1996 and 1997 is due in May of 1995, and will include projected expenditures and impacts for programs in future years.


            YEAR                  1991         1992         1993        1994         1995      

Total Annual DSM                 $11,757      $14,720     $20,574      $27,289      $27,830    

Expenditures ($1,000)                                                                          

Incremental Annual Energy        30,666       27,753       72,783      73,745       74,072     

Savings from Program Year                                                                      

(MWH/yr)                                                                                       

Cumulative Annual Energy         30,666       58,419      131,202      204,947      279,019    

Savings from Program Year                                                                      

(MWH/yr)                                                                                       

Incremental Summer Peak           32.2         35.3        33.7         33.9         33.8      

Reduction from Program Year                                                                    

(MW)                                                                                           

Incremental Winter Peak           21.8         15.2         16.0       14.3          13.6      

Reduction from Program Year                                                                    

(MW)                                                                                           



The Company's current program includes 22 Core DSM programs and 8 performance-based DSM programs.

Core Programs - Residential

Home Energy Savings Program - (HESP)

This program provides no-or-low-interest financing to residential customers (in one-to-four-family, owner occupied homes with electric space or water heating) for energy conservation improvements to their homes.

Time-of-Day/Storage Water Heat Program

This program encourages installation of storage electric water heaters and automatic controls to defer energy use and demands to off-peak periods.

Weatherization Assistance Program (WAP)

This program delivers energy efficiency improvements to economically disadvantaged customers who would otherwise not be able to purchase them for their homes.

HVAC Efficiency Equipment Rebates

This program encourages customers considering the purchase or replacement of central air conditioners, heat pumps, and room units to install equipment with an efficiency higher than a standard unit. The program provides rebates for central units with an SEER of at least 11.0 and room units with an EER of at least 9.50. The program also provides assistance to builders and developers considering installing ground source heat pumps.

Good Cents Residential Construction Program

This program encourages the incorporation of energy efficient design features in new residential construction. Good Cents homes must be designed to use significantly less energy for heating, cooling and water heating than a conventual home built to the current New Jersey Energy Sub-Code requirements.

Residential Electric Appliance Conservation Tactics (REACT)

This program provides customers with a free, detailed analysis of the electricity consumption and operating cost of various end-use appliances in his or her home, based on a statistical analysis of billing history.

Residential Energy Awareness Program

This program provides residential customers with a variety of information on energy, including energy saving technologies and techniques, rate alternatives, financing alternatives, other Company services, and other issues concerning customer energy interests.

Golden Carrot Refrigerator Project

This program promotes the development and marketing of a super-efficient, CFC-free refrigerator/freezer by making a large incentive award to a manufacturer.

Energy Home of Tomorrow-Today R&D: Three E Home Program

The Three E program in an initiative by members of the Edison Electric Institute (EEI) to develop efficiency guidelines, designs and standards for new houses in consultation with trade allies and key environmental and government leaders.

Core Programs - Commercial/Industrial

Commercial/Apartment Conversation Service (CACS)

This program provides a free energy audit to qualifying business customers and recommends cost effective retrofit measures.

Commercial/Industrial Energy Awareness Program

This program provides commercial/industrial customers with a variety of information on energy, including options for energy supply, energy management opportunities, good energy management practice, rate alternatives, financing alternatives, other Company services for training and communication, and other issues concerning customer business interests.

Group/Individual Load Curtailment Program

This program promotes the curtailable service provisions of the Company's tariff.

Efficient Design for Innovative Buildings

This program provides grants for design assistance to incorporate energy efficiency HVAC equipment in new buildings. The program also educates commercial and industrial building designers, developers, architects, engineers, and owners of the benefits of energy efficient designs using advertising, case studies, seminars and forums.

Core Programs - Education and Information

Trade Ally Support and Coordination

This program provides trade allies, such as contractors, manufacturers, builders and energy professionals, with information concerning services which the Company can jointly support with them.

DSM Training/Seminars

This program is designed to increase the awareness the expertise of local trade allies, customers and marketing personnel by making available training courses on technology, environmental issues, energy management, and marketing focussed on increasing the use and awareness of DSM technologies and issues.

Ask JCP&L Information Program

This program provides general energy information through recorded messages available by toll-free telephone.

School Energy Education Program

This program makes available to learning institutions a diverse menu of energy educational programs that will foster a partnership between the school, the home, and JCP&L.

General Conservation Information

This program increases the general energy and environmental awareness of New Jersey's consumers and business through the mass media promotions and the "Seniors are Special" energy awareness initiative.

Core Programs - Support

Verification Methodology

The costs of developing new plans and studies to verify power savings when they are not directly attributed to specific Core or Performance-Based DSM programs are recovered through this program.

DSM General Supervision

The costs of labor and expenses incurred in the general direction and supervision of DSM activities which cannot be attributed to specific programs are recovered through this program.

DSM Data Systems

The costs of upgrading and developing information systems that generally support DSM programs are recovered through this program.

Performance-Based Programs - Residential

Residential Home Fitness Program

This program delivers a package of low-cost energy efficient measures to qualified existing residential electric heating customers at little or no cost.

Appliance Turn-In Service Program

This program provides a convenient and environmentally sound method for removing and recycling operating second refrigerators and freezers. The appliances will be processed to remove capacitors, which may contain polychlorinated biphenyls (PcBs); recovering and reclaiming refrigerant fluids/gases, including chlorofluorocarbons (CFCs) and recycling ferrous and non-ferrous metal components in an environmentally sound manner.

Power Plus Saver's Club Appliance Cycling

This program reduces JCP&L's peak demands by selectively cycling individual customer's central air conditioner and electric water heaters through the use of radio-activated relays.

Residential High Efficiency Appliance Rebate Program

This program provides rebates to promote the purchase of high efficiency appliances, refrigerators, freezers, and compact fluorescent lamps. This program is structured so that qualifying refrigerators must exceed the current Federal Standards by at least 13% and freezers by at least 15%.

Performance-Based Programs- Commercial/Industrial

Power Partners Program (PPP) - Direct Mail

This program encourages replacing selected low-efficiency electrical equipment with high efficiency alternatives in the commercial, institutional, and governmental sectors.

Customer Flex Program - Custom Rebates

This program encourages the installation in unique or experimental applications of high efficiency electrical equipment in the commercial, industrial, institutional, and governmental sectors.

Power Savers Program - Standard Rebates

This program encourages the installation of selected high efficiency electrical equipment in new and existing commercial, industrial, institutional and governmental sectors. JCP&L will offer rebates to reduce the net cost to the customer of installing selected types of equipment.

R&D Flex Program - Custom Rebates

This program encourages the installation in unique or experimental application of high efficiency electrical equipment in the commercial, industrial, institutional, and governmental sectors.

MET-ED AND PENELEC

Following are summaries of the results for programs (including a brief description of expenditures, energy and capacity impacts) Met-Ed and Penelec have offered since 1991.


            YEAR                  1991         1992        1993         1994      

Total Annual DSM                 $7,996       $7,796      $7,512       $7,885     

Expenditures ($1,000)                                                             

Incremental Annual Energy        34,573       22,535      16,734       20,924     

Savings from Program Year                                                         

(MWH/yr)                                                                          

Cumulative Annual Energy          34,573      57,108       73,842       94,766    

Savings from Program Year                                                         

(MWH/yr)                                                                          

Incremental Peak Reduction       50             38          46           32       

from Program Year (MW)                                                            



Estimates for 1995-1999 reflect the companies' commitment to continue efficient programs and introduce new programs of value to customers, pending the outcome of current regulatory proceedings in Pennsylvania.


            YEAR                  1995         1996         1997        1998         1999      

Total Annual DSM                 $7,287       $7,483       $8,745      $11,774      $13,850    

Expenditures ($1,000)*                                                                         

Incremental Annual Energy        25,006       31,966       34,145       35,080       36,100    

Savings from Program Year                                                                      

(MWH/yr)                                                                                       

Cumulative Annual Energy          25,006       56,972      91,118      126,198      162,298    

Savings from Program Year                                                                      

(MWH/yr)                                                                                       

Incremental Peak Reduction          5           10           18          29           46       

from Program Year (MW)                                                                         



* Estimated expenditures include the companies' expenses for mandatory low income weatherization programs. In 1998 and 1999, this program will be reviewed and the associated expenses may change based on future filings and Commission action.

Following are descriptions of the companies' current program proposals which include key programs targeted for the residential and commercial/industrial sections and several pilot programs designed to test new market areas.

Residential Programs

Appliance Cycling

Through the use of radio activated relays, system operators will selectively cycle individual customer end-use equipment through a variety of operating strategies designed to optimize demand management

while minimizing the impact on the customer.

Energy Efficient New Homes

The Energy Efficient New Home Program is designed to increase the thermal shell integrity of new electrically heated homes built within Met-Ed/Penelec's service territory that incorporate heat pumps or electric heating systems designed to maximize the benefits of Met-Ed/Penelec's time-of-use rates.

Energy Efficient Systems

The Energy Efficient Systems Program is designed to promote the installation of high efficiency air and ground source heat pump systems and high efficiency water heaters in new and existing electrically heated residences.

Home Retrofit

The Home Retrofit Program is designed to reduce the electric consumption of electrically heated homes by improving the thermal integrity of the home's shell and its heating and water heating systems.

Commercial And Industrial Programs

Power Savers Program

The purpose of this program is to encourage the installation of selected high efficiency electrical equipment, new and existing commercial, industrial, institutional and governmental facilities.

Customer Flex

The Customer FLEX Program will encourage the installation of a variety of high efficiency electric equipment in the commercial, industrial, institutional and governmental sectors.

Small Business Lighting Partnership

The Lighting Partnership program will assist small business customers in evaluating and selecting high efficiency lighting systems that are in accordance with IES standards for new and existing buildings.

Residential Pilot Programs

Heat Pump Tune-Up

The Heat Pump Tune-Up pilot Program is designed to ensure the efficient operation of heat pumps installed in the Met-Ed/Penelec service territory.

Multi-Choice

The Multi-Choice pilot Program provides varying pricing levels designed to encourage Met-Ed/Penelec customers to reduce their energy bills through modification of their behavior and appliance/system use.


ATTACHMENT E

TRANSMISSION AND DISTRIBUTION LOSS
REDUCTION PROGRAMS


         JCP&L           1991-1994* Total MWh      1995-2000 Total      

                           Loss Reductions        Projected MWh Loss    

                                                      Reductions        

Transformer Programs             2745                    7292           

Capacitor Programs               602                     1350           

T&D Line Programs                4013                    8132           

        Met-Ed                                                          

Transformer Programs             1453                    2100           

T&D Line Programs               18556                   27432           

       Penelec                                                          

Transformer Programs             6156                    8028           

Total                           33525                   54334           



* 1994 numbers reflect projected MWh reductions.


ATTACHMENT F

METHANE OFFSET PROJECTS


      Project           1991-1994         1991-1994         1995-2000          1995-2000      

                       Methane Use     Equivalent Tons      Projected          Projected      

                         (Tons)*             CO2           Methane Use      Equivalent Tons   

                                                             (Tons)*              CO2         

F R&S Methane                 305             6,703                                           

Lebanon Methane           11,706           257,527              4,466               98,242    

Valley Pork                    14               301                  3                   67   

Hamm's Landfill           16,888           371,543             11,821             260,061     

L&D Landfill              32,214           708,706             45,147             993,242     

Corry                          38               825                 43                 937    

MCRC Facility                                                  95,314           2,096,906     



* Methane use is estimated based on historical or projected generation using a heat rate of 12,000 Btu/kWh and landfill gas with an energy content of 500 Btu per cubic ft.




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