Climate Challenge Participation Accord

DOE's Energy Partnerships for a Strong Economy

Climate Challenge Participation Accord

This Participation Accord describes the commitments that Kansas City Power & Light Company (KCPL) 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).

Kansas City Power & Light Co. is a medium-size electric utility headquartered in downtown Kansas City, Missouri. The Company generates and distributes electricity to over 424,000 customers in a 4,700 square-mile area located in 23 counties in western Missouri and eastern Kansas. About two-thirds of total retail kilowatt hour sales and revenues are from Missouri customers and the remainder from Kansas.

KCPL's 1994 total available capacity was 3,551 megawatts (MW), including 2,131 MW of coal-fired generation, 545 MW of nuclear, 422 MW of peaking turbines and the balance of 453 in net capacity purchases. KCPL is a summer peaking utility whose highest summer peak of 2,819 MW was experienced in 1993. KCPL's winter peak of 1,829 MW was established in 1989.

I. Utility Commitments

A.
Consistent with paragraphs II.B.1 of the Climate Challenge Program MOU, KCPL will participate in three industry initiatives and will undertake specific projects or actions to reduce, avoid or sequester greenhouse gas emissions.

In order to achieve these commitments, KCPL will undertake the following projects and actions within paragraph II.B.1.a. of the MOU:

Join EEI's Utility Forest Carbon Management Program, Phase I, and contribute $5,000 in 1995 to the Program's Phase I research. The estimated CO₂ sequestered emissions have not yet been determined. Future participation will depend upon Phase II's goals and funding requirements.

Join EEI's National Earth Comfort Program and contribute, beginning in 1995, $44,000/year for six years to facilitate the installation of earth-coupled heat pumps. The estimated CO₂ avoided emissions have not yet been determined.

In addition, KCPL will undertake the following specific projects to reduce, avoid or sequester greenhouse gas emissions within paragraph II.B.1.f. of the MOU:
By 2000, KCPL will improve, on a system-wide basis, the heat rate of all seven coal-fired generating units three percent over the 1990 system-wide heat rate of 10,927 BTUs per kW. These improvements will result in an estimated reduction in CO₂ emissions in the year 2000 of 445,000 short tons.

Undertake residential demand-side management (DSM) programs to encourage end-use energy efficiency. DSM programs will include time-of-use rates, financing of higher efficiency cooling equipment, and load-cycling of air conditioners. These DSM programs will result in a reduction in emissions estimated at 23,390 short tons of CO₂ in the year 2000.

By the end of 1997, install a wireless, radio communication Distribution System Automation (DSA) technology. When completed, about 420,000 cellular communication units will be installed at customer meters, substation controls and within distribution circuits. These communication devices will facilitate more efficient delivery of electricity, offer customers new service options, help balance electrical loads between circuits, provide early detection of electrical outrages for quicker restoration of service, and enhance maintenance of equipment. KCPL estimates that DSA could reduce CO₂ emissions by 11,800 short tons in the year 2000.

Replace older streetlights with new, more efficient lights by the end of 1997. KCPL will invest about $8.8 million to replace some 53,000 lights in 92 cities. These replacements will result in CO₂ reductions of about 13,000 short tons in the year 2000.

Initiate a new tree planting program upon company owned acreage which is suitable and available. The amount of CO₂ sequestered as a result of this effort has not yet been determined.

By 2000, sell over 45 percent of its fly ash, exceeding the national electric utility average of 25 percent. While this does not directly reduce KCPL's CO₂ emissions, it does reduce CO₂ emission associated with the production of cement. It is estimated that in 2000, about 97,000 short tons of CO₂ will be saved over the use of cement. Between 1991 and 1994, KCPL sold 553,258 tons of fly ash saving an estimated 277,000 short tons of CO₂.

Actions Between January 1991 to December 1994 to Reduce CO₂ emissions

KCPL has improved, on a system-wide basis, the heat rate of its coal-fired generation over 1990 heat rates. These improvements have reduced CO₂ emissions by about 1,220,000 short tons between 1991 and 1994.

By the end of 1995, KCPL will have acquired ten aluminum unit coal trains. While this does not directly reduce KCPL's CO₂ emissions, it does reduce CO₂ emissions associated with transportation of coal (i.e., CO₂ from diesel fuel). These trains will reduce CO₂ emissions associated with coal transportation by an estimated 30,050 short tons in the year 2000.

By the end of 1995, KCPL will have installed a new 161-kV transmission line between Craig-Overland Park substations which will facilitate more efficient movement of electricity and improve transmission system reliability. This is estimated to save 11,300 short tons of CO₂ in the year 2000.

By the end of 1996, KCPL will have installed a new energy management system (EMS) which will improve overall generation, transmission and distribution system operating efficiencies. EMS will result in an estimated reduction in CO₂ emissions in the year 2000 of about 22,000 short tons.

Between 1991 and 1994, KCPL's Wolf Creek Nuclear Generating Station was upgraded. This enhancement increased KCPL's share of generating capacity from 533 MW to 545 MW. This capacity increase is estimated to reduce CO₂ emissions from coal-fired units by 50,000 short tons in the year 2000.

In 1992, KCPL became the first electric utility in the region to become a "Green Lights" utility under the EPA's new program. In 2000, this program is estimated to reduce CO₂ emissions by 195 short tons.

As a result of KCPL's existing and planned emission-reduction projects and actions, KCPL estimates a total reduction of 606,735 short tons of CO₂ in 2000, or 703,735 short tons if the recycling of fly ash is included. For the period 1991 to 2000, there would be a cumulative reduction of 4,593,970 short tons of CO₂. If the CO₂ savings from the recycling of fly ash is included, then the 1991 to 2000 total becomes 5,431,249 short tons.

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

C.
KCPL will confer with DOE on or before March 31, 1997, to evaluate jointly the progress of KCPL in achieving its Climate Challenge Program goals and to discuss possible adjustments to its voluntary commitments.

D.
The Climate Challenge Program representative for KCPL will be David Martin, director of Public Affairs, P.O. Box 418679, Kansas City, Missouri 64141-0679. Utility 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 KCPL 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 KCPL 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 KCPL for purposes of addressing Climate Challenge Program issues, it will provide notice to KCPL.

C.
DOE will provide an annual report to KCPL 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 KCPL, will be Allan Hoffman, Department of Energy, 1000 Independence Avenue S.W., Washington, D.C. 20585 (202-586-1786). DOE agrees to notify KCPL 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 KCPL 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 KCPL 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.

_________________________________________
Richard A. Spring, Vice President of Production

Kansas City Power & Light Co.

_________________________________________
(Date)

_________________________________________
Secretary of Energy or designee
U.S. Department of Energy

_________________________________________
(Date)

Appendix A

Attachment:

Attachment A -- Climate Challenge Program MOU and exhibits

Historically, KCPL has burned subbituminous coal from different sources in its seven coal-fired generating units. In 1993, KCPL selected a default CO₂ emission rate of 224 lbs/mmBTU as an annual, system-wide average . This estimate was based upon engineering calculations and assumptions recognizing start-up emission rates, emissions while running at partial capacity, and burns at full load. In 1994, KCPL installed Continuous Emission Monitors (CEMs) at all seven coal-fired generating units which will record actual CO₂ emissions. Based upon this monitoring data, during 1995, KCPL will determine an actual system-wide CO₂ emission rate. This actual emission rate may be more or less than the default rate. Projected savings, therefore, may be adjusted in the future to reflect actual CEM data.

KCPL utilize the diesel fuel CO₂ emission rate of 25.7 lbs./gallon found in the 1605 (b) General Guidelines, Volume 2, published in October, 1994. KCPL also selected the default of 2:1, or 50 percent, to convert tons of fly ash to tons of CO₂. While there is limited documentation on a higher conversion factor, KCPL felt it was prudent to utilize the lower value. During 1995, KCPL will further evaluate fly ash documentation and may select a different conversion factor.

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