Climate Challenge Participation Accord

DOE's Energy Partnerships for a Strong Economy

The Municipal Electric Authority of Georgia (MEAG) provides generation and transmission services to 48 independent Municipal Electric Systems in the state of Georgia.

The Climate Challenge Program is a joint, voluntary effort of the United States Department of Energy (DOE) and the electric utility industry undertaken in pursuit of the President's goals for reducing greenhouse gas emissions. The framework of the Climate Challenge Program was established in the Climate Challenge Memorandum of Understanding dated April 20, 1994 (Climate Challenge MOU) (See Attachment A to this Participation Accord).

The Participation Accord describes the activities that MEAG and DOE have committed to undertake under the Climate Challenge Program. MEAG's commitments include specific activities and efforts to reduce, avoid, or sequester greenhouse gas emissions. DOE's commitments include specific actions designed to assist MEAG in achieving its Climate Challenge commitments.

1. MEAG's Commitments

A.
Consistent with paragraph II.B.1.f and Exhibit B of the Climate Challenge Program MOU, MEAG has implemented, or will implement the following program activities to reduce, avoid, or sequester greenhouse gas emissions. The program outlined below only includes activities initiated after January 1, 1991. By the year 2000, MEAG expects to be able to report annual reductions in excess of 700,000 ton/yr below what its emissions would have been if these actions had not been taken.

(NOTE: all units of measure are expressed in metric units.)

1.

Planned nuclear plant capacity upgrades at Plants Hatch and Vogtle will displace 150,000 ton/yr of CO2 emissions beginning in 1994 and increasing in steps to 235,000 ton/yr by 1998.

2.
Planned nuclear plant unit availability improvements at Plants Hatch and Vogtle will displace 400,000 tons/yr of CO2 emissions beginning in 1997 and increasing to 455,000 ton/yr by 2000.

3.
Efficiency improvements at coal fired plants Wansley and Scherer will reduce CO2 emissions by 2,900 ton/yr by 1997 and increasing to 6,900 ton/yr by 2000.

4.
MEAG is a Charter Member in the development of Public Power Initiatives (Combined Purchasing, Joint Implementation and DSM and Electrotechnologies Products Catalog). MEAG has committed $14,000 in 1994 in cash and in-kind contributions to make the results of the initiatives available to the 48 independent Municipal Electric Systems that make up the MEAG system. MEAG will encourage and assist the participant cities in implementing those initiatives that are cost effective.

5.
MEAG will evaluate the feasibility of converting a percentage of its 35 vehicle fleet to alternative fuels by 2000. This could reduce CO2 emissions by up to 38 ton/yr.

6.
MEAG will evaluate ways to reduce vehicle miles traveled (VMT) by its employees, such as flexible work hours, Telecommuting, Van Pooling, Mass Transit assistance, etc.

7.
MEAG will evaluate operational refinements at Plants Wansley and Scherer that will allow increased flyash sales. These expected sales increases to a proven cement manufacturing market can reduce CO2 emissions by 3,200 ton/yr beginning in 1996.

8.
MEAG will evaluate strategies to reduce transmission losses, including the installation of low loss transformers and line voltage management with SCADA (Supervisory Control and Data Acquisition).

9.
MEAG will maintain an on going periodic review for potential new Greenhouse Gas Reductions projects/programs and implement those that are cost effective. MEAG will include the results of these reviews in the annual Climate Challenge reports.

B.
MEAG will report to DOE 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 the model accounting protocols in Exhibit B of the Climate Challenge MOU. The first such report may include a description of the activities and achievements of MEAG prior to becoming a participant in the Program, expressed on an annual basis to the extent possible.

C.
At reasonable intervals upon request of DOE, but no later than November 15, 1996, MEAG will meet DOE regarding its participation in the Climate Challenge Program. The purpose of such meetings will be to evaluate MEAG's progress towards achieving the Climate Challenge commitments and possible adjustments to these commitments based on the availability of cost justifiable activities for reducing greenhouse gas emissions.

D.
The Climate Challenge Program representative for MEAG will be Ross C. Kist III, 1470 Riveredge Parkway NW, Atlanta, Georgia 30328-4640. MEAG will notify DOE prior to or, in any event no later than 30 days after any change in this contact.

II. DOE Commitments

A.
DOE will perform the actions and fulfill the commitments set out in section III of the Climate Challenge MOU.

B.
The Climate Challenge representative for DOE will be Allan Hoffman, Department of Energy, 1000 Independence Avenue, NW, Room 6B-128, Washington, D.C. 20585, (Phone 202-586-1786). DOE will notify MEAG prior to or, in any event, no later than 30 days after any change in their representative.

C.
DOE will consider requests by MEAG to intervene in 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 for MEAG for purposes of addressing Climate Challenge Program issues, it will provide notice to MEAG.

D.
To the extent permitted by law and regulations and by the availability of funds, DOE will consider MEAG's participation in Climate Challenge as a factor to be weighed positively in evaluating applications for financial and other assistance submitted to DOE in support of commitments made by MEAG under this Participation Accord.

E.
DOE agrees to provide public recognition to MEAG for its Climate Challenge activities. DOE will, among other things, prepare an annual report summarizing results achieved under the Climate Challenge and highlighting any outstanding achievements or innovative approaches of MEAG.

F.
DOE will share results of its July 1994 report to Congress titled "Barriers to Increased Utilization of Coal Combustion By-products by Governmental and Commercial Sectors" with MEAG.

III. General Provisions

A.
Use of DOE-developed materials by MEAG will be governed by the provisions of section IV of the Climate Challenge MOU.

B.
In addition to the foregoing provisions, DOE and MEAG agree to act in accordance with the principles set out in section I of the Climate Challenge MOU and the general provisions set out in subsection V.A.-V.D., V.F. and V.G. of the Climate Challenge MOU, which is 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.

D.
MEAG's Commitments in this Accord are subject to:

1.

authorization(s) under applicable law(s),

2.
any rights or obligations contained in MEAG's contractual arrangements and/or agreements governing its ownership interests in certain coal-fired and nuclear-fueled generating plants, and

3.
MEAG's contractual rights and obligation with its Participant Cities under applicable Power Sales Contracts, Bond Resolutions and other pertinent documents.

                      (Original signed by)
                ______________________________________  ____________
                 President and General Manager          Date
                 Municipal Electric Authority of Georgia


                      (Original signed by)
                ______________________________________  ____________
                 U.S. Department of Energy              Date

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