Climate Challenge Participation Letter
DOE's Energy Partnerships for a Strong Economy
Climate Challenge Participation Accord
This Participation Accord describes the commitments that NIPSCO Industries, 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 and exhibits thereto
dated April 20, 1994 (the Climate Challenge Program MOU) (see Attachment A to
this Participation Accord).
I. Utility Commitments
A. Consistent with paragraph II.B.1 of the Climate Challenge Program
MOU, NIPSCO will a) undertake the following specific projects or
actions to reduce greenhouse gas emissions and will b) make
specified contributions to selected industry initiatives further
identified in Exhibit A, "Industry Programs".
1. Specific projects to reduce greenhouse gas emissions -- NIPSCO's 21 Climate Challenge Projects are categorized into eight arenas:
Generation, Transportation, Waste Minimization/Pollution Prevention
Forestry, Energy Efficiency, Gas Conservation, Transmission/
Distribution, and Training. For a number of our projects, clear
lines of definition do not exist; therefore, they can be considered
to fall into more then one grouping.
GENERATION PROJECTS: Because NIPSCO's system is predominately
coal-fired, we are limited in the scope of generation projects we can
undertake internally to reduce greenhouse gas emissions. However,
this has not restricted our pursuit of external opportunities and
unique applications internally.
Since 1991 we have made heat rate improvements system-wide. We have
decreased and/or stabilized system and individual boiler heat rates
through increased operator training, combustion control and
feedwater heater replacements, and upgrading instrumentation and
controls. NIPSCO will continue to make heat rate improvements
through 2000.
NIPSCO is currently partnering with academic institutions and
industry groups to undertake two biomass feasibility studies. One
study will investigate the use of a locally grown biomass, which
would be co-fired in specific NIPSCO boilers. Small amounts of the
fly ash would be used as fertilizer to promote crop yield. The
other study will test the feasibility of co-firing in NIPSCO's
boilers.
Because global climate change is a global concern, it makes sense to
look for the most cost effective greenhouse gas emission reductions.
Accordingly, NIPSCO has pioneered a multi-national approach with an
official U.S. Joint Implementation project with Wisconsin Electric
and Edison Development, through the Center for Clean Air Policy. A
district heating plant in the Czech city of Decin will be converted
from coal to natural gas. Emissions reductions will be shared by
the city and all utility investors.
NIPSCO has contracts to purchase power generated from three
landfill-gas recovery projects in our service territory. At each
site NIPSCO is providing specifications for connection to and
operation on our electric distribution system. NIPSCO will report
emissions reductions associated with displaced base load generation.
NIPSCO is partnering with existing industrial customers on
cogeneration projects to improve the efficiency and energy balance
at their facilities. This effort is perhaps best demonstrated
through projects that increase the steel mills' efficient use of by-
product gases and reduce their dependence on NIPSCO's system for
many base load applications. NIPSCO will continue to offer
technical assistance to industrial customers making greenhouse gas
emission reductions as part of the Climate Wise Program.
TRANSPORTATION: NIPSCO is a corporate leader in alternatively
fueled vehicles and has one of the largest compressed natural gas
(CNG) fleets in the country. Our CNG fleet operations and currently
our 569 CNG vehicles represent approximately 45 percent of our
fleet. By the year 2000 NIPSCO will increase the size of the CNG
fleet to at least 50 percent of our vehicles. In addition, NIPSCO
commits to assist in increasing the number of non-fleet CNGs
operating throughout our region by providing a highly reliable
regional fueling infrastructure.
NIPSCO expects to be a force in our region for educating the public
on the environmental and efficiency benefits of electric vehicles.
We lead by example with the demonstration electric vehicle in our
fleet. NIPSCO has already ordered another for delivery in 1995. We
also hope to be a leader in commercialization efforts to identify
local EV markets.
NIPSC0 is participating in a pilot program to field-test the
Employee Commute Option guidelines outlined in the 1990 Clean Air
Amendments. Currently 9 percent of our employees at our Southlake
Complex are participating in carpools. NIPSCO will continue to be
a front-runner in the area by offering our employees a variety of
commuting choices to reduce vehicular traffic and associated C02
emissions.
WASTE MINIMIZATION/POLLUTION PREVENTION: Through the pursuit of
partnerships with our customers and other regional businesses,
NIPSCO is dedicated to promoting the efficient use of energy. In
keeping with this tenet, we have included a number of projects in
this accord which illustrate this commitment.
NIPSCO has implemented a pollution prevention Chemical Review Board
that will completely eliminate ozone depleting chemicals products
from our operations by 1996. To date, over 20 different brands of
ozone-depleting brake cleaners have been standardized into one non-
ozone depleting product. Other products are continuously being
tested and introduced Company-wide to determine their suitability.
The utilization of Class "C" fly ash, a coal combustion by-product,
in Portland cement reduces carbon dioxide emissions by 25 percent
from the standard production method. Currently NIPSCO markets 25
percent of our Class "C" ash. We will seek markets for 100 percent
of this fly ash, as well as pursue markets for other grades and
classes of fly ash and coal combustion by-products.
In an effort to conserve natural resources, landfill space and
energy, NIPSCO has undertaken a solid waste recycling program aimed
at reducing the Company's solid waste stream by 50 percent, or
16,000 cubic yards by the year 2000. We are committed to expanding
upon current efforts to recycle white paper, corrugated cardboard,
wood pallets, wood reels and used transformer oil and to investigate
the feasibility of recycling other materials.
FORESTRY: As the owner of a number of large tracts of rural lands,
NIPSC0 has a unique opportunity to undertake natural resource
enhancement projects. Additionally, tree management is an important
component in NIPSCO's electric transmission and distribution
systems.
To kick-off our rural tree planting projects NIPSCO planted
approximately 19,000 surviving wildlife shrubs, hardwoods, and
conifers at our Schahfer Generating Station in 1994. By the year
2000 NIPSC0 will plant approximately 30 acres of bottomland
hardwoods (150,000 trees) as part of a wetland restoration project
along the Kankakee River. In addition to sequestering carbon from
the atmosphere these trees will provide habitat for a number of
local animal species.
NIPSCO participates in and funds a variety of urban tree planting
partnerships and education programs at our facilities and in area
communities. In 1994 NIPSC0 planted more than 1,000 trees in the
urban forest. Also in 1994, NIPSCO was one of only three utilities
nation-wide to win the Tree Line USA Utility Award recognizing
electric utilities whose line clearance and tree trimming programs
promote and safeguard trees. This project is expected to continue
indefinitely at a rate of 800 to 1000 trees per year.
ENERGY EFFICIENCY: NIPSCO is actively promoting innovative energy
efficiency programs to the residential, commercial, and industrial
sectors. These programs include incentives for homeowners and
builders to install both gas and electric products.
GAS CONSERVATION: NIPSCO is undertaking gas projects that reduce
methane emissions and ensure that more of the gas in our system
reaches our customers. These projects illustrate our commitment to
preserve and enhance the integrity of NIPSCO's product delivery
system.
NIPSCO joined EPA's Natural Gas STAR program as a partner in 1994.
By the year 2000 NIPSCO will rehabilitate approximately 185 miles of
distribution pipe, replace approximately 28 high-bleed pneumatic
control devices, and inspect and repair (as necessary) high pressure
regulator and metering stations.
In 1994 NIPSCO completed the North Trenton field natural gas
pipeline gathering system replacement project. Approximately 10
miles of gathering system pipe at our Royal Center Underground
Storage facility were replaced in the 5-year program. Incidents of
natural gas losses were reduced to just one per year.
ELECTRIC TRANSMISSION/DISTRIBUTION: Since 1991, NIPSCO has
installed 145 MVARs of distribution and transmission capacitor
banks. By installing capacitors on our transmission and
distribution systems, we reduce system demand by decreasing reactive
power requirements. NIPSC0 will continue to install capacitors for
energy efficiency and expects to have an additional 257 MVARs by the
year 2000.
When purchasing replacement transformers for our distribution
system, NIPSC0 looks towards low-loss/high-efficiency transformers.
In 1994 NIPSCO evaluated transformer losses and adjusted the loss
penalty figures to favor the purchase of more efficient units.
NIPSC0 will continue to install low-loss/high efficiency
transformers at a rate of approximately 1500 per year through the
year 2000.
TRAINING: Training is the one project that crosses numerous
boundaries. Gas conservation, Generation, and Vehicles are three
areas in which NIPSCO's training program impacts operations. NIPSCO
historically has had an effective, recognized training program
Company-wide. In 1994 our three training facilities provided over
7,800 student days of training. We will continue to modify and
include courses which educate our workforce on best practices that
can and may have an effect on GHG emissions.
For a detailed description of each project listed above. See
Attachment B -- Project Descriptions.
2. Industry Initiatives -- NIPSCO Industries is involved in
specific projects that fall within the scope of all five of
the industry's initiatives. NIPSCO Industries is committed
to continued evaluation of each and, specifically, to
contributing to the following initiatives:
UTILITY FOREST CARBON MANAGEMENT PROGRAM FORESTRY INITIATIVE:
NIPSC0 has several tree planting projects underway and is
participating in the Forestry Initiative in hopes of
identifying cost effective carbon sequestering activities.
NIPSC0 will commit $5,000 to the Forestry Initiative for the
start-up, evaluation and selection phase of the project. We
have a professional forester on staff who is providing
oversight and technical expertise.
EV AMERICA: NIPSC0 is participating in the EV America
Initiative. Under Phase I, NIPSCO will purchase two electric-
vehicles through the Initiative's vehicle purchase pool to
take advantage of multi-vehicle purchase discounts.
II. DOE Commitments
III. General Provisions
A. Use-of DOE-developed materials by NIPSCO Industries 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 NIPSCO Industries
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)
Gary L. Neale
Chairman, President, and Chief Executive Officer
NIPSCO Industries, Inc.
Date
(Original Signed By)
Hazel R. O'Leary
Secretary of Energy of designee
U.S. Department of Energy
Date
Attachment:
Attachment A -- Climate Challenge Program MOU and exhibits
Attachment B -- NIPSCO Industries Project Descriptions
Attachment B
NIPSCO Industries Project Descriptions
NIPSCO's 21 Climate Challenge Projects are categorized into eight arenas:
Generation, Transportation, Waste Minimization/Pollution Prevention, Forestry,
Energy Efficiency, Gas Conservation, Transmission/ Distribution, and Training.
For a number of our projects, clear lines of definition do not exist; therefore,
they can be considered to fall into more then one grouping.
GENERATION
System Heat Rate Improvements
Biomass Feasibility Studies
Joint Implementation -- Decin, Czech Republic
Landfill Gas Recovery
Cogeneration and Energy Projects
TRANSPORTATION
Natural Gas Fleet
Electric Vehicles
Employee Commute Options
WASTE MINIMIZATION/POLLUTION PREVENTION
Eliminate Ozone Depleting Chemicals/Products
Coal Combustion By-Product Utilization
Solid Waste Recycling
FORESTRY
Rural Tree Planting
Urban Tree Planting Partnerships
ENERGY EFFICIENCY
Residential Energy Efficiency Programs
Commercial Energy Efficiency Programs
Industrial Energy Efficiency Programs
GAS CONSERVATION
Natural Gas STAR Partner
Natural Gas Gathering System - Pipeline Replacement
ELECTRIC TRANSMISSION/DISTRIBUTION
Capacitor Bank Installation
Low-loss/High-efficiency Transformer Installation
TRAINING
Efficiency Training Courses
Estimated greenhouse gas emission reductions in the year 2000 were calculated
for each project (when applicable and appropriate). Under NIPSCO's existing
economic and regulatory environment, the projects listed above have the
potential to achieve greenhouse gas emission reductions of approximately 2
million tons by the year 2000.
GENERATION
PROJECT NAME: System Heat Rate Improvements
COMMITMENT: NIPSCO has performed combustion control replacements on
units 11 and 12. A third boiler, unit 14, will be
upgraded in 1995. In addition, we will continue
NIPSCO's multifaceted approach to heat rate Improvements
through the year 2000.
PROJECT
DESCRIPTION: NIPSCO improved the heat rate of coal-fired units in the
NIPSCO system through training, combustion control
replacements, feedwater heater replacements, and
upgrading the instrumentation and controls on two
boilers, one each in 1992 and 1994 (will complete the
upgrade of a third one in 1995).
GREENHOUSE GAS
REDUCTIONS: If IPSCO would have operated at the 1990 heat rate in
the years 1991, 1992, 1993 and 1994, the system would
have emitted 215,457 tons CO2 over our actual
emissions for that period. This is based on 3.67 lbs of CO2 per
pound of carbon and an average value of 60% total carbon
for the coal.
TIME FRAME: The system will continue to undergo periodic evaluations
for heat rate improvements. Improvements will be
incorporated when appropriate.
YEAR 2000: To date, we calculate that NIPSCO's CO2
emissions were reduced by 215,457 tons from 1990 to 1994. Potential
changes in the coal burned by NIPSCO could cause the
(unmitigated) heat rate to rise above 199O levels in the
year 2000. Ongoing heat rate improvements such as those
discussed above will prevent CO2 emissions
associated with heat rate from rising above 1990 emissions levels in the year 2000.
GENERATION
PROJECT NAME: Biomass Feasibility Studies
COMMITMENT: NIPSCO is currently partnering with academic
institutions and industry groups to undertake two
biomass feasibility studies. Both are expected to be
completed by the year 2000.
PROJECT
DESCRIPTION: NIPSCO will work with the Electric Power Research
Institute to conduct a boiler engineering study,
including a test burn, for co-firing biomass in unit 14
at R.M. Schahfer Generating Station. In addition,
NIPSCO has committed to provide information to Purdue
University for an economic/agricultural feasibility
study on the availability of locally grown biomass. The
Purdue Research Foundation has submitted a proposal to
DOE titled Sustaining Resources, Farms, and Communities:
Integrated Farm Energy Crop Production. The proposal
has as a component using fly-ash as a fertilizer to
increase biomass crop yield. NIPSCO will participate as
a case study, pending funding.
GREENHOUSE GAS
REDUCTIONS: There are no greenhouse gas reductions associated with
the feasibility studies themselves. However, should they
prove that an adequate supply of biomass is (or could
be) locally available and that it is possible to co-fire
biomass in Unit 14, NIPSCO will be in a position to
evaluate the real possibility of burning biomass for
electricity. In any event, NIPSCO's participation in
the two studies will further the overall investigation
into co-firing biomass that is presently underway in the
United States.
TIME FRAME: The boiler study and test burn will be completed in
1996. The availability study will commence upon receipt
of funding and will take place over a three-year period.
YEAR 2000: NIPSCO will completed both feasibility studies by the
year 2000.
GENERATION
PROJECT NAME: Joint Implementation Decin, Czech Republic
COMMITMENT: NIPSCO, Edison Development, and Wisconsin Electric,
through the Center for Clean Air Policy have been
granted official U.S. Joint Implementation status for a
natural gas conversion project in the Czech city of
Decin. The project is expected to go on-line in late
1995.
PROJECT
DESCRIPTION: A district heating plant in the Czech City of Decin will
be converted from brown coal to natural gas. Presently,
the Bynov District Heating Plant consists of three 5.6
MWt coal boilers and one 2.8 MWt coal boiler that
produce steam for the heating district. The project
will include the installation of two gas engines to
produce 10.6 MWt and a peaking gas boiler in the new
facility.
GREENHOUSE GAS
REDUCTIONS: Based on 1993 data, the Bynov plant burns local brown
coal with a carbon content of 41.8 percent and emits
19,582 metric tons of CO2 per year. The new facility will reduce CO2 emissions by 5,992 metric tons.
Agreements with the city have guaranteed the U.S.
utility investors 4,662 metric tons of reportable
emissions reductions. NIPSCO's annual share of
CO2 reductions is 1,554 tons per year.
TIME FRAME: The project is expected to go on-line in October 1995.
The life of the project is estimated to be 25 years.
YEAR 2000: NIPSCO's carbon dioxide emissions reductions in the year
2000 are estimated to be 1,554 tons. Total CO2
emissions reductions from 1995 through the year 2000 are estimated to be 8029
tons.
GENERATION
PROJECT NAME: Landfill Gas Recovery
COMMITMENT: NIPSCO has contracts in place to purchase power
generated from three landfill-gas recovery projects in
our service territory. NIPSCO will report emissions
reductions associated with displaced base load
generation.
PROJECT
DESCRIPTION: As refuse slowly decomposes in landfills, a gas
comprised of approximately 55 percent methane and 45
percent CO2 is formed. Traditionally, the gas
has been collected and burned (flared). Three landfill sites in
NIPSCO's service territory are engaged in different
stages of landfill gas-to-electricity projects. NIPSCO
is providing specifications to each site for connection
to and operation on NIPSCO's electric distribution
system. Waste Management will likely report this project
through the 1605(b) process.
LaPorte County Recycling and Disposal Facility (Waste
Management of Indiana) Landfill gas at this facility
will be filtered, compressed, and supplied to three 800
KW generators. The net power produced will be
approximately 1.5 to 2 MW and will be sold to NIPSCO,
displacing coal-fired generation by the same amount.
Prairie View Recycling and Disposal Facility (Waste
Management of Indiana) Landfill gas at this facility is
filtered, compressed, and supplied to three 800 KW
generators. The net power produced is approximately 1.5
to 2 MW and is sold to NIPSCO, displacing coal-fired
generation by the same amount.
Garv Landfill Small Power Producer A small
power producer will install three 800 KW methane fired
generators at the landfill. Methane is collected,
cleaned and dried prior to being used as fuel in the
generators. The net power produced will be
approximately 2.0 to 3.3 MW and will be sold to NIPSCO,
displacing coal-fired generation by the same amount.
GREENHOUSE GAS
REDUCTIONS: Greenhouse gas reductions for these landfill projects
are determined by the amount of NIPSCO base load
generation that is displaced by the power generated at
the landfill, minus the amount of CO2 that is
generated when the gas is burned.
TIME FRAME: LaPorte County Recycling and Disposal Facility (Waste
Management of Indiana) This project is scheduled to be
placed in service July, 1995.
Prairie View Recycling and Disposal Facility (Waste
Management of Indiana) This project has been in service
since October 20, 1994.
Gary Landfill Small Power Producer Exact in service
date has not been determined. This project will most
likely go on line in 1996.
The life expectancies of these projects cannot be
determined at this time but are estimated to be between
20 and 50 years.
YEAR 2000: By the year 2000 the three landfill projects will
displace NIPSCO emissions by 47,423 tons CO2 per year, based on the following breakdown:
LaPorte County 14,226 tons/year CO2
Prairie View 14,226 tons/year CO2
Gary Landfill 18,971 tons/year CO2
GENERATION
PROJECT NAME: Cogeneration and Energy Projects
COMMITMENT: NIPSCO is partnering with existing industrial customers
on cogeneration and other energy projects to improve the
efficiency and energy balance at their facilities.
NIPSCO will continue to provide technical assistance to
large industrial customers who are undertaking
greenhouse gas emission reduction projects as a part of
the Climate Wise Program.
PROJECT
DESCRIPTION: Industrial facilities whose operations are being
evaluated for possible improvements include steel
production complexes, refinery operations, and food
processing facilities. The energy efficiency
improvements result in the reduction of electric, gas,
coal, or oil usage for production processes. The
reduction in the use of the primary energy source could
be experienced either internally, at the facility, or
externally at another production source, such as,
electricity at the local utility. Efficiency is gained
primarily through process improvements resulting from
new technology. In addition, waste fuels that are
currently flared or otherwise under utilized are
converted into usable energy. Improvements in the
energy cycle are expected to be in the 10% to 20% range.
GREENHOUSE GAS
REDUCTIONS: The amount of greenhouse gas reductions will vary
according to the nature of each individual project.
Greenhouse gas emissions at the facilities themselves
will be reduced due to the increased use of waste fuels
for energy. NIPSCO will report greenhouse gas emission
reductions associated with electric production offsets.
TIME FRAME: These projects are currently under development.
YEAR 2000: NIPSCO will implement as many such projects as
practicable within the next five years.
TRANSPORTATION
PROJECT NAME: Natural Gas Fleet
COMMITMENT: NIPSCQ's 569 CNG-fueled vehicles represent 45 percent of
our fleet and make up one of the largest CNG fleets in
the country. By the year 2000 NIPSCO will increase the
CNG portion of fleet to at least 50 percent. In
addition, NIPSCO will assist in providing a highly
reliable regional fueling infrastructure.
PROJECT
DESCRIPTION: We are committed to substantially increasing the
percentage of NGVs in our fleet by 1) purchasing
factory-direct dedicated units as available; 2)
converting forklifts and light duty vehicles and trucks
to compressed natural gas (CNG); and 3) utilizing
liquified natural gas (LNG) in our heavy duty trucks.
NIPSCO will also encourage the increased use of CNG
vehicles throughout our region by providing a highly
reliable fueling infrastructure in addition to
developing strategic alliances with educational,
governmental, and social organizations in pursuit of
federal mandates toward ozone attainment status. NGV
training and consulting services will be provided to
compliment the accelerated compliance of the Clean Air
Act Amendments of 1990.
GREENHOUSE GAS
REDUCTIONS: Natural gas-powered vehicles offer a significant
reduction in mobile source greenhouse gas emissions in
direct comparison to all the other alternatives
currently available.
TIME FRAME: NIPSCO's leadership in this market development
initiative originated in 1981. The NGV market is
expected to develop in accordance with the Energy Policy
Act of 1992 starting in 1996. Market demands and
preferences will then drive the further proliferation of
NGVs through the end of this century.
YEAR 2000: Carbon dioxide emission reductions achieved through
NIPSCO's NGV fleet in the year 2000 are estimated to be
10,662 tons.
TRANSPORTATION
PROJECT NAME: Electric Vehicles
COMMITMENT: NIPSCO expects to be a force in our region for educating
the public on the environmental and efficiency benefits
of electric vehicles. We lead by example with one
electric vehicle in our fleet and another ordered for
1995.
PROJECT
DESCRIPTION: Air quality is a major issue on our local agenda. Lake
and Porter counties are designated as severe ozone non-
attainment areas by the EPA. Gasoline vehicle pollution
from internal combustion engines is a major contributor
of ozone precursors.
The development and commercialization of electric
vehicle technology provides an opportunity to help clean
up the environment. Because most of the electricity
needed to serve this market will be generated during
off-peak hours, consumers and NIPSCO both benefit from
a more efficient use of generating capacity.
NIPSCO is currently participating in or will participate
on the EPRI Transportation Business Council, the
Mid-America Electric Vehicle Consortium, and the Electric
Transportation Consortium. In addition, we support the
Electric Racing Series and the University of Notre
Dame's electric car and we are trial marketing "The
Clean Switch" catalog.
GREENHOUSE GAS
REDUCTIONS: According to DOE, EPRI, and EIA estimates, electric
vehicles show a reduction in emissions of 1.26 pounds of
CO2 per Kwh used.
· TIME FRAME: The Electric Sales and Marketing plan will continually
offer programs promoting the environmental and
efficiency benefits of electric vehicles on an on-going
basis.
YEAR 2000: EV technology will continue to advance well into the
next decade.
TRANSPORTATION
PROJECT NAME: Employee Commute Options
COMMITMENT: Currently 9 percent of our employees at our Southlake
Complex are participating in carpools. NIPSCO will
continue to be a front-runner in the area by offering
our employees a variety of commuting choices to reduce
vehicular traffic and associated CO2 emissions.
PROJECT
DESCRIPTION: NIPSCO is participating in a pilot program to field-test
the Employee Commute Option guidelines outlined in the
1990 Clean Air Act Amendments. Lake and Porter Counties
in Indiana are in a severe ozone non-attainment area
that includes the Chicago area and southwestern
Wisconsin. The aim is to reduce the number of cars
arriving at work sites in these counties. We currently
are sponsoring carpooling programs at a number of our
100-plus employee locations. We are constantly
evaluating alternatives, such as vanpools, shortened
work weeks, telecommuting, and park and rides to reduce
congestion and GHG emissions.
GREENHOUSE GAS
REDUCTIONS: The aim of this project is to increase the average
vehicle occupancy to 1.47 from the present 1.17. In
order to achieve this ratio at our Southlake Complex, we
need to reduce the number of vehicles that travel to
this site by 150 per day by the year 2000. This will be
done through carpooling, vanpooling, subscription bus
service, and compressed work weeks. Our best example of
car pooling is at our Southlake Complex. We currently
have a 9 percent participation rate, which has resulted
in a 10-ton reduction in GHG emissions. Lake and Porter
Counties must reduce ozone-causing pollutants by 15
percent by November of 1996 and 3 percent annually. If
we do reach our company goals and the goals of our
region, we will maintain those levels of reduced
vehicular traffic, and, in turn, reduced GHG emissions.
TIME FRAME: The project will continue until the region is in
compliance with Federal Clean Air Standards, but not
later than the year 2000. Activities initiated under
this program are expected to extend indefinitely.
YEAR 2000: Estimated emissions reductions in the year 2000 are
expected to be 41.7 tons CO2.
WASTE MINIMIZATION/POLLUTION PREVENTION
PROJECT NAME: Eliminate Ozone Depleting Chemicals/Products
COMMITMENT: NIPSCO will completely eliminate ozone depleting
chemicals/products from our operations by 1996. We are
continuously testing and introducing new products to
determine their suitability.
PROJECT
DESCRIPTION: NIPSCO will completely eliminate ozone-depleting
chemicals/products from our operations by 1996. In 1993
a Company-wide survey was conducted to determine the
type and quantity of ozone depleting products used in
NIPSCO's operations. Approximately 515 products--
primarily solvents, cleaners and lubricants--contained
the targeted chlorofluorocarbons and 1,1,1
trichloroethane. - Using an Electric Power Research
Institute (EPRI) solvent study and the EPA Significant
New Alternatives Program (SNAP), we were able to screen
and select acceptable alternative products.
GREENHOUSE GAS
REDUCTIONS: Over 20 different brands of ozone-depleting brake
cleaner have been standardized into one non-ozone
depleting product. Bulk use of 1,1,1-trichloroethane
has been reduced by over 85 percent in slightly over one
year. Other products are continuously being tested and
introduced Company-wide to determine their suitability.
From 1993 to 1994, we have reduced CO2
equivalent emissions by 1,516 tons. This trend will continue
through 1996 when the remaining ODC will be entirely
phased out.
TIME FRAME: The latest round of product testing should be completed
and the products stocked by April 1, 1995. The
remainder of the product testing, standardization and
phase out should be completed during the first quarter
of 1996.
YEAR 2000: NIPSCO estimates that by the year 2000 emissions from
ozone depleting chemicals will be reduced by 4,350 tons
of CO2 equivalent due to the replacement
and substitution of ODC solvents and refrigerants.
WASTE MINIMIZATION/POLLUTION PREVENTION
PROJECT NAME: Coal Combustion By-Product Utilization
COMMITMENT: NIPSCO currently markets 25 percent of our Class "C" fly
ash. We will seek markets for 100 percent of this fly
ash, as well as pursue markets for other grades and
classes of fly ash and coal combustion by-products.
PROJECT
DESCRIPTION: In making cement, up to 25 percent of the volume can be
replaced with Class "C" fly ash. NIPSCO will generate
approximately 332,000 tons of Class "C" fly ash each
year from 1996 to 2000. By the year 2000, NIPSCO hopes
to have secured markets for 100 percent, or 332,000
tons, of £1 ass "C" ash per year.
GREENHOUSE GAS
REDUCTIONS: Based on information supplied by the American Coal Ash
Association, .45 tons of CO2 are generated for
every ton of cement produced. Fly ash can be used in a 3:1 mix
(cement:fly ash). When fly ash is utilized, CO2
emissions are reduced by 25 percent; therefore, .3375
tons CO2 are emitted per ton of cement/fly ash
composite produced.
TIME FRAME: The project is expected to continue indefinitely into
the future. IPSCO's long-term goal is to find a market
for all Class "C" fly ash.
YEAR 2000: Conservatively assuming that NIPSCO finds a market for
166,000 tons (50 percent) of Class "C" fly ash by the
year 2000, greenhouse gas reductions would total
approximately 74,700 tons.
SOLID WASTE RECYCLING
PROJECT NAME: Solid Waste Recycling
COMMITMENT: As of June 1994, NIPSCO reduced solid waste by 28
percent. By the year 2000 NIPSCO will have achieved a
reduction in the Company's solid waste stream by SO
percent.
PROJECT
DESCRIPTION: In an effort to conserve natural resources, landfill
space and energy, NIPSCO currently recycles white paper,
corrugated cardboard, wood pallets, wood reels and scrap
transformer oil. The Company continues to investigate
the feasibility of recycling other materials such as
white envelopes and newspaper.
GREENHOUSE GAS
REDUCTIONS: The following table illustrates the progress of NIPSCO's
recycling program since its inception.
WHITE CORRUGATED
PAPER CARDBOARD WOOD WOOD TRANSFORMER
YEAR (Tons) (Tons) PALLETS REELS OIL Gals.
1992 75.63 18.79 980 422 77,987
1993 135.39 21.50 2,497 1,393 98,947
1994 107.5 53.60 5,571 1,441 78,319
NIPSCO's goal is to reduce solid waste generation by 35
percent by the end of 1995, using 1991 as the base year.
In 1991, the Company's volume of solid waste was 32,000
cubic yards. As of June 1994, solid waste generation
had been reduced by 28 percent.
TIME FRAME: The initial recycling program for white paper was
implemented in January of 1992. In that same year, the
program was expanded to include corrugated cardboard,
wood pallets, wood reels and scrap transformer oil. The
life of the recycling program is indefinite at this
time.
YEAR 2000: The goal for the year 2000 is to reduce the Company's
solid waste stream by 50 percent, or 16,000 cubic yards
through recycling.
FORESTRY
PROJECT NAME: Rural Tree Planting
COMMITMENT: In 1994 NIPSCO planted approximately 19,000 surviving
wildlife hardwoods, conifers, and wildlife shrubs at our
Schahfer Generating Station in 1994. By the year 2000
NIPSC0 will plant an additional 150,000 trees as part of
a wetland restoration project along the Kankakee River.
PROJECT
DESCRIPTION: As the owner of a number of large tracts of rural lands
(cropland and grassland), NIPSCO has the opportunity to
undertake two tree-planting projects--one within the
fence line at our R.M. Schahfer Generating Station in
Jasper County, Indiana and one within the vicinity of
the station.
Schahfer Station Tree-Planting Project In the spring of 1994 NIPSCO planted 30,000 trees in pasture within the
security fence at R.M. Schahfer Generating Station. In
July 1994 the plantings were sampled for survivorship.
The overall survival rate was 19,244 trees or 64 percent
due to poor soil moisture, a result of low rainfall.
Bottomland Hardwood Planting By the spring of 1997
NIPSCO Industries will plant approximately 30 acres of
bottomland hardwoods along the Kankakee River, less than
one mile from R.M. Schahfer Generating Station. The
150,000 trees will replace a field of soybeans.
GREENHOUSE GAS
REDUCTIONS: Schahfer Station Tree-Planting Project Based on
Carbon flow figures available in the General Guidelines for the
Voluntary Reduction of Greenhouse Gases, the total
amount of carbon dioxide sequestered by the hardwoods
and conifers planted at Schahfer Station is estimated to
be 309 tons through the year 2,000.
Bottomland Hardwood Planting Carbon flow figures for
the Bottomland Hardwood will be based on the General
Guidelines for the Voluntary Reduction of Greenhouse
Gases, unless more applicable local/regional numbers can
be found.
TIME FRAME: Plantings are expected to be complete by the year 2000.
YEAR 2000: In the year 2000 NIPSCO will have planted approximately
180,0000 rural trees.
FORESTRY
PROJECT NAME: Urban Tree Planting Partnerships
COMMITMENT: NIPSCO participates in and funds a variety of urban tree
planting partnerships and education programs at our
facilities and in area communities. In 1994 NIPSCO
planted more than 1,000 urban trees. NIPSCO will
continue to plant 800 to 1000 urban trees per year
through the year 2000.
PROJECT
DESCRIPTION: This program is designed to demonstrate to customers
that trees and utilities can co-exist if attention Is
given to planting the right tree in the right place.
Compatible, low-growing species are planted beneath our
lines and shade trees are planted away from the lines.
Since 1993 NIPSCO has planted 950 ornamental (low-
growing) trees, 630 shade trees and 400 spruce
seedlings.
GREENHOUSE GAS
REDUCTIONS: Based on carbon flow figures available in the General
Guidelines for the Voluntary Reduction of Greenhouse
Gases, the total amount of carbon sequestered by shade
trees and spruce in the urban tree planting program is
177 tons.
TIME FRAME: This project was initiated in 1993 and is expected to
continue indefinitely at a rate of between 800 and 1000
trees per year.
YEAR 2000: In the year 2000, 37.4 tons of CO2 are estimated to be sequestered by our urban tree-planting program. The cumulative total in 2000 equals 177 tons.
ENERGY EFFICIENCY
PROJECT NAME: Residential Energy Efficiency Programs
COMMITMENT: NIPSCO has developed and will continue to administer a
wide array of programs designed to encourage our
residential customers to use energy efficient gas and
electric products In addition to undertaking general
energy efficiency measures.
PROJECT
DESCRIPTION: NIPSCO offers a number of electric and natural gas
marketing programs that promote efficient use of energy.
One of the more popular programs NIPSCO currently has in
effect is Good Cents (electric). The Good Cents
programs (New Home and Improved Home) offer appliance
rebates, special rates, and energy-efficiency
certification once the home meets NIPSCO energy-
efficiency standards.
NIPSCO also offers Rehab Rebates to builders and
homeowners who plan to rehabilitate a single-family home
that has been vacant for 12 months or more. The program
offers rebates on heating systems and water heaters that
use either electric or natural gas.
Our Natural Gas Conversion program offers rebates to
those homeowners who opt to switch their furnace/boiler
or water heaters to natural gas from propane or fuel
oil. These rebates apply whether the homeowner converts
existing appliances or decides to purchase new
equipment.
NIPSCO, in conjunction with York, is offering rebates to
those customers who choose to purchase the Triathlon; a
heating, cooling, and water heating natural gas system.
Enerwise is a program whose goal is to help low-income
homeowners and, in some cases, tenants.
The Electric Enerwise program offers rebates to those
low-income homeowners who purchase electric heat pumps
and make weatherizing improvements. Besides a rebate on
the heat pump, qualifying participants will also receive
a special electric rate.
The Natural Gas Enerwise program offers rebates to low-
income homeowners and landlords whose tenants meet the
low-Income criterion. The program offers cash rebates
to customers who purchase a new, energy-efficient
furnace. NIPSCO offers programs whose goal is to
promote efficient use of energy, while improving the
comfort levels of our customers.
.GREENHOUSE GAS
REDUCTIONS Greenhouse gas emissions reductions realized through
energy efficiency measures will be calculated using a
full life-cycle approach. Consideration will be given
not only to the end use but to the production,
conversion, transmission and distribution of energy to
the point of use. Assumptions specific to NIPSCO's
generation will be used whenever possible.
TIME FRAME: NIPSCO's energy efficiency improvement efforts will
continue indefinitely.
ENERGY EFFICIENCY
PROJECT NAME: Commercial Energy Efficiency Programs
COMMITMENT: NIPSCO has developed and will continue to administer
wide array of programs designed to encourage our
commercial customers to use energy efficient gas and
electric products in addition to undertaking general
energy efficiency measures.
PROJECT
DESCRIPTION: The commercial programs that NIPSCO offers at the
present time are designed to entice builders to
construct homes that meet stringent efficiency
standards; and, therefore, elevate homeowner comfort and
property values.
The Natural Advantage program encourages builders to
equip homes with a minimum number of natural gas
appliances and extra plumbing for future natural gas
fixtures. A home built under this program may offer the
potential buyer the opportunity to qualify for an
Energy-Efficient Mortgage. This type of mortgage allows
the lender to increase the buyer's debt-to-income ratio.
The Good Cents Builder Program gives builders a bonus
per ton on the electric heat pumps that they install in
the homes that they build. Good Cents certification is
also awarded to those homes built that meet a number of
energy-efficiency specifications. These programs
encourage builders to include high-efficiency appliances
in the new homes that they build. NIPSCO hopes, through
its programs, to promote the use of innovative, energy-
efficient technologies that would normally not be
utilized due to prohibitive pricing and product
unfamiliarity.
GREENHOUSE GAS
REDUCTIONS: Greenhouse gas emissions reductions realized through
energy efficiency measures will be calculated using a
full life-cycle approach. Consideration will be given
not only to the end use but to the production,
conversion, transmission and distribution of energy to
the point of use. Assumptions specific to NIPSCO's
generation will be used whenever possible.
TIME FRAME: NIPSCO's energy efficiency improvement efforts will
continue Indefinitely.
ENERGY EFFICIENCY
PROJECT NAME: Industrial Energy Efficiency Programs
COMMITMENT: NIPSCO has developed and will continue to administer
wide array of programs designed to encourage our
industrial customers to use energy efficient gas and
electric products in addition to undertaking general
energy efficiency measures.
PROJECT
DESCRIPTION: NIPSCO is pursuing new, innovative technologies which
can be applied to any number of industries which are
present in Northern Indiana. The primary industries in
our service territory are automotive, food, plastics,
and steel. These industries, along with related
business ventures, offer the greatest opportunity to
explore and implement energy-efficient technologies on
an industrial basis.
NIPSCO recently joined the Industrial Gas Technology
Commercialization Center Consortium. This group's goal
is to champion the acceptance of industrial gas
technologies. Natural gas products that we are
promoting include industrial scale cooling systems, high
efficiency boilers/furnaces, and drying/curing ovens.
NIPSCO is also promoting the integration of
electrotechnologies into the industrial market. Again
a number of the top electrotechnologies being pursued
are related to the primary industries of NIPSCO's
service territory. Metal melting, metal heating, freeze
concentration processing for foods, paint coat
drying/curing, microwave food drying, and resistance
welding are just some of the electrotechnologies NIPSCO
is introducing to the industrial sector.
GREENHOUSE GAS
REDUCTIONS Greenhouse gas emissions reductions realized through
energy efficiency measures will be calculated using a
full life-cycle approach. Consideration will be given
not only to the end use but to the production,
conversion, transmission and distribution of energy to
the point of use. Assumptions specific to NIPSCO's
generation will be used whenever possible.
TIME FRAME: NIPSCO's energy efficiency improvement efforts will
continue indefinitely.
GAS CONSERVATION
PROJECT NAME: Natural Gas STAR Partner
COMMITMENT: NIPSCO joined EPA's Natural Gas STAR program as a
partner in 1994. By the year 2000 NIPSCO will
rehabilitate approximately 185 miles of distribution
pipe, replace approximately 28 high-bleed pneumatic
devices, and inspect and repair (as necessary) high
pressure regulator and metering stations.
PROJECT
DESCRIPTION: Rehabilitation of Distribution Pipe Approximately
185 miles of cast iron and unprotected steel gas mains that
are prone to gas leaks will be replaced with plastic
mains. This project is a continuation of activities
underway prior to implementation of Natural Gas STAR.
Replacement of High Bleed Pneumatic Control Devices
Often the pneumatic control devices that control gas
regulators bleed a high amount of gas during operation.
They will be replaced with low-bleed devices, thereby
reducing gas loss and emissions. Twenty-eight such
devices are scheduled for replacement.
Inspection and Maintenance of Surface Facilities
Some of our high pressure regulator and metering stations will
be checked for leaks and corrective action will be taken
to reduce leaks.
GREENHOUSE GAS
REDUCTIONS: The following reductions were calculated based on
information obtained through the EPA's Natural Gas STAR
Program.
Rehabilitation of Distribution Pipe Based on
internal and industry estimates, we expect the completed project
to reduce natural gas -losses by 1.6 mmcf per year.
Historical Data for the years 1990 through 1994 are
being compiled and will be reported under 1605(b).
Replacement of High-bleed Pneumatic Control Devices
Based on internal and industry estimates, we expect the
completed project to reduce natural gas losses by .56
mmcf per year.
Inspection and Maintenance of Surface Facilities
Based on internal and industry estimates, we expect the
complete project to reduce natural gas emissions by 14.3
mmcf per year.
TIME FRAME: The project will start in January, 1995 and is expected
to last for 10 years (2005).
YEAR 2000: NIPSCO Industries estimates that natural gas emissions
will be reduced through the Natural Gas STAR Program by
25.569 million cubic feet by the year 2000. This can be
broken down as follows:
Pipeline Replacement: .979 mmcf
Pneumatic Devices: 1.96 mmcf
I & N: 22.63 mmcf
Methane emissions are converted from million cubic feet
to tons using the conversion factor 20.66 tons/mmcf.
Therefore, 528.5 tons of methane were saved.
GAS CONSERVATION
PROJECT NAME: Natural Gas Gathering System -- Pipeline
Replacement
COMMITMENT: In 1994 NIPSCO completed the North Trenton field natural
gas pipeline gathering system replacement project.
Approximately 100 miles of gathering system pipe at our
Royal Center Underground Storage Facility were replaced
in the 5-year program.
PROJECT
DESCRIPTION: The existing North Trenton Pipeline gathering system was
originally installed in 1962 and produced a number of
natural gas leaks. This program was initiated to
replace the entire piping system over a five-year
period. The project included the replacement of various
sizes of approximately 10 miles of pipe ranging from 6
inches to 16 inches in diameter.
GREENHOUSE GAS
REDUCTIONS: The installation of the new piping reduced the number of
leaks to an average of one leak per year. This
conserves the amount of natural gas that is available to
us from the North Trenton Gathering System for
distribution on our system. NIPSCO continues to
quantify emission reductions achieved through this
project.
TIME FRAME: The project was complete in 1994.
ELECTRIC TRANSMISSION/DISTRIBUTION
PROJECT NAME: Capacitor Bank Installation
COMMITMENT: Since 1991, NIPSCO has installed 145 MVARs of
distribution and transmission capacitor banks. NIPSCO
will continue to install capacitors for energy
efficiency and expects to have an additional 257 MVARs
by the year 2000.
PROJECT
DESCRIPTION: Capacitors are added to the distribution and
transmission systems to provide voltage improvement,
power factor improvement, loss reductions, system
capacity release and energy savings.
Distribution Capacitors Distribution capacitor
projects between 1991 and 1994 included the installation of 73
MVARs of capacitors. Projected future additions, 1995
through 2000, include a total of 137.8 MVARs of
capacitors.
Transmission Capacitors Transmission capacitor
projects between 1991 and 1994 included the installation of 72
MVARs of capacitors. Projected future additions, 1995
through 2000, include a total of 120 MVARs of
capacitors.
GREENHOUSE GAS
REDUCTIONS: Distribution and transmissions system capacitors reduce
system losses associated with the transfer of power from
the generator to the customer's load. These loss
reductions decrease the load seen by our generators,
consequently lessening their load burden and associated
energy requirements.
Distribution Capacitors The estimated decrease
in electric demand on our generators because of the addition of 73 MVARs
in capacitors between 1991 and 1994 is 5,006 MWH/year. The estimated decrease in electric demand on our generators because of the addition of 137.8 MVARs in
capacitors between 1995 and 2000 is 9,310 MWH/year.
Transmission Capacitors The estimated decrease in electric demand on our generators because of the
addition of 72 MVARs in capacitors between 1991 and 1994
is 2,480 MWH/year. The estimated decrease in electric
demand on our generators because of the addition of 120
MVARs In capacitors between 1995 and 2000 is 6,380
MWH/year.
TIME FRAME: Installation of capacitors on the distribution and
transmission systems have been ongoing up to and through
1994. Further capacitor additions will also be made in
the future. Life expectancy for capacitors is
approximately 20 to 25 years. Failed units are replaced
on an as needed basis.
YEAR 2000: Distribution Capacitors NIPSCO estimates a reduction of 15,500 tons of CO2 in the year 2000 due to a total
demand reduction of 14,316 MWH/year as a result of
installing 210.8 MVRs of transmission capacitors.
Transmission Capacitors NIPSCO estimates a reduction of 9,592 tons of CO2 in the year 2000 due to a total demand
reduction of 8860 MWH/year as a result of installing 192
MVRs of transmission capacitors.
Total CO2 emissions reductions from the
capacitor bank installments in the year 2000 are estimated to be
approximately 25,092 tons.
ELECTRIC TRANSMISSION/DISTRIBUTION
PROJECT NAME: Low-loss/High-efficiency Transformers Installation
COMMITMENT: In 1994 NIPSCO installed a total of approximately 1500
pole-mounted transformers. When purchasing replacement
transformers for our distribution system, NIPSCO will
continue to look toward low-loss/high-efficiency
transformers.
PROJECT
DESCRIPTION: As the need arises to replace pole-top transformers,
they are replaced with efficient transformers. Lower-
loss transformers require less energy to operate, and
therefore less generation to support, reducing the
amount of fuel burned.
For example, in 1994 NIPSCO purchased 511 pole-mounted
10kva transformers. Assuming accurate loss estimates
and uniform loading, each transformer reduces loss by 20
watts per hour, equivalent to 175 kilowatt hours per
year. Assuming that the transformers were in service
for the full year, system loss was reduced by 89,425
kilowatt hours.
GREENHOUSE GAS
REDUCTIONS: Through the purchase of approximately 1500 low-
loss/high-efficiency pole-mounted transformers, NIPSCO
reduced system losses in 1994 by 200,000 kilowatt hours,
or the equivalent of 217 tons of CO2.
YEAR 2000: NIPSCO estimates CO2 reductions in the year 2000 to be 217 tons.
TRAINING
PROJECT NAME: Efficiency Training Programs
COMMITMENT: NIPSCO has provided and will continue to provide
employees with training in technical skills enabling
them to operate Company equipment at peak performance
thereby increasing operating efficiency and minimizing
greenhouse gas emissions.
PROJECT
DESCRIPTION: Many of the technical skill areas that NIPSC0's
employees receive training in have an ancillary effect
of reducing greenhouse gas emissions. Following is a
list of such training courses/activities.
COURSE NAME ANCILLARY EFFECT RESULTS ACHIEVED
Beginner's School For Trains gas servicemen on Reduces the amount of
Gas Servicemen proper equipment burner unburned methane leaked;
adjustment for gas complete combustion
ranges, water heaters, reduces CO and unburned
and furnaces hydrocarbons
Reduces the amount of
Training also addresses methane escaping
the repairs made to gas
leaks on equipment and
service lines
Carbon Monoxide Training Trains employees in the Accurate Co readings
proper operation and reduce the amount of CO
calibration of CO allowed to be released
detectors undetected
Halogen Investigations Trains employees how to Identifying the presence
respond to external gas of halogenated
customers' complaints hydrocarbons that damage
regarding natural gas heating equipment and
escape and how to result in incomplete
identify the presence of natural gas combustion
halogenated hydrocarbons reduces methane
within the furnace heat emissions and the
exchanger; this process release of CO
of investigation targets
our industrial customers
Welding Certification Trains employees in the Proper welding
proper welding process · certification insures
and application on the minimum leakage from
NIPSC0 gas transmission the gas lines will take
and distribution systems place, therefore,
reducing methane
emissions
COURSE NAME ANCILLARY EFFECT RESULTS ACHIEVED
Natural Gas Vehicle Trains employees in the Proper training results
Training proper procedure for in improved equipment
installing NGV equipment performance that
on company vehicles ultimately reduces the
emissions of unburned
hydrocarbons and methane
Meter Reading Training Trains company meter Proper identification
readers on proper and repair of such gas
identification of gas leaks reduces the amount
leaks at the meter of methane emissions
location
Space Heat Training Trains service employees Reduces emissions of
on the proper operation/ unburned hydrocarbons
trouble-shooting of high and other gases that are
efficiency furnaces byproducts of incomplete
combustion
Facilities Management Trains employees in the Restricts the accidental
Training proper repair, operation release of CFCs
and troubleshooting
techniques of air
conditioning systems
Operator Training Trains employees in the Awareness of proper
Continuous Emissions proper operation of CEM equipment operation
Monitoring equipment at the enables employees to
electric generating inform the control-room
stations operator that
adjustments to the unit
are required to assure
proper combustion is.
taking place thereby
reducing emissions
Operator Training (Heat Trains employees to Improves heat rate and
Rate) maintain proper heat reduces the emissions of
rates on electric incomplete combustion
generating units gases
Operator Training Trains employees in the Reduces the emission of
(Simulator) proper operation of incomplete combustion
generating station gases
boilers, furnaces and
turbines
TIME FRAME: Training is ongoing throughout the year. As new
technologies warrant. changes, these changes are also
addressed in the training process.
Please send comments to:
Lawrence.Mansueti@hq.doe.gov
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