Climate Challenge Participation Letter

DOE's Energy Partnerships for a Strong Economy

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").

This Participation Accord describes the actions that N.W. Electric Power Cooperative, Inc. ("N.W.") and DOE have committed to undertake under the Climate Challenge Program. N.W.'s commitments include specific activities and efforts to reduce, avoid, or sequester greenhouse gas emissions. DOE's commitments include specific actions designed to assist N.W. in achieving its Climate Challenge Commitments.

N.W. is a not- for- profit corporation headquartered in Cameron, Missouri. N.W. provides, via its transmission system, wholesale power to 8 member distribution cooperatives. N.W. purchases the wholesale power from Associated Electric Cooperative, Inc.

Additionally, the electric cooperatives listed in Attachment A have an ownership interest in and receive bulk electric power from N.W. Due to this ownership and power supply relationship, the cooperatives in Attachment A will participate in the Climate Challenge Program through N.W.

I. N.W. commitments

A.
Consistent with Paragraph ll.B.1. and Exhibit B of the Climate Challenge Program MOU, N.W. has or will undertake the following actions:
1. Market and sell geothermal heat pumps for residential and commercial applications resulting in a reduction of approximately 14,000 short tons of CO₂ in the year 2000 (see Attachment B for further description).

B.
N.W. will report to DOE annually on its 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 [[section]]1605(b) of the Energy Policy Act and the Supplemental Guidance on Commitment Definitions and Reporting in Exhibit B of the Climate Challenge MOU. The first such report may include a description of the activities and achievements of N.W. prior to its becoming a participant in the program, expressed on an annual basis to the extent possible.

C.

N.W. will confer with DOE no later than June 12,1997, regarding N.W.'s participation in the Climate Challenge Program. The purpose of such meeting will be to evaluate N.W.'s progress towards achieving its Climate Challenge commitments and possible adjustments to these commitments based on the availability of reasonable, cost- justified activities for reducing greenhouse gas emissions.
D.
The Climate Challenge representative for N.W. will be Bill Birkeness, P.O. Box 565, Cameron, MO 64429. N.W. will notify DOE prior to or, in any event, no later than 30 days after any change in contact.

A.
DOE will perform the actions and fulfill the commitments set out in Section Ill of the Climate Challenge MOU.
B.
The Climate Challenge representative for DOE will be Mr. Larry Mansueti, Director, Climate Challenge Program, Office of Utility Technologies, (EE- 10), U.S. DOE, 1000 Independence Avenue, SW, Washington, D.C. 20585, (202) 586- 2588. DOE will notify N.W. prior to or, in any event, no later than 30 days after any change in representative.
C.
DOE will meet with N.W. upon request regarding possible adjustments of the Climate Challenge commitments set forth in subsection l.A. of this Participation Accord.
D.
DOE will consider requests by N.W. 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 pertaining to N.W. for purposes of addressing Climate Challenge Program issues, it will provide notice to N.W.
E.
To the extent permitted by applicable law and regulations and by the availability of funds, DOE will consider N.W.'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 N.W. under this Participation Accord.
F.
DOE agrees to provide public recognition to N.W. for its Climate Challenge activities. DOE will, among other things, prepare an annual report summarizing results achieved under Climate Challenge and highlighting any outstanding achievements or innovative approaches of N.W.

Ill. General Provisions

A.
Use of any DOE- developed materials by N.W. will be governed by the provisions of Section IV of the Climate Challenge MOU.
B.
In addition to the foregoing provisions, DOE and N.W. agree to act in accordance with the principles set out in Section I of the Climate Challenge Program MOU and the general provisions set forth in Subsections V.A, V.B, V.C, 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 the activities under the Climate Challenge Program without penalty and without being subject to remedies at law or equity.


U.S. DEPARTMENT OF ENERGY

(Original Signed By)
Hazel O'Leary
Secretary of Energy



N.W. ELECTRIC POWER COOPERATIVE, INC.

(Original Signed By)
Richard L. Arnold
General Manager

Attachment A - Distribution Cooperatives Which Are Participating in the Climate Challenge Program Through N.W.

Attachment B - Commitment Description

Atchison-Holt Electric Cooperative
East Highway 136
P.O. Box 160
Rock Port, MO 64482

Farmers' Electric Cooperative, Inc.
Highway 36 East
P.O. Box 367
Chillicothe, MO 64601

Grundy Electric Cooperative, Inc.
4100 Oklahoma Avenue
P.O. Box 189
Trenton, MO 64683
   
Nodaway Worth Electric Cooperative, Inc.
Highway 136 East
P.O. Box 388
Maryville, MO 64468-0388
   
North Central Missouri Electric Cooperative, Inc.
Highway E-West
P.O. Box 220
Milan, MO 63556
    
Northwest Missouri Electric Cooperative
401 N. Highway 71
P.O. Box 319
Savannah, MO 64485
    
Platte-Clay Electric Cooperative, Inc.
425 Main Street
P.O. Box 1940
Platte City, MO 64079
    
West Central Electric Cooperative, Inc.
Highway 13 South
P.O. Box 452
Higginsville, MO 64037

Attachment B

Since 1988, N.W. and its eight member distribution cooperatives have marketed, and plan to continue to market, geothermal heat pumps for commercial and residential applications. In addition, N.W. operates, and plans to continue to operate, a distributorship which sells geothermal heat pumps, related equipment, and accessories.

In 1991, two hundred sixty- three (263) geothermal heat pumps were installed on lines served by N.W.'s members. Since 1991, the number of geothermal heat pumps installed per year has steadily increased. In 1995, it is expected that 350 geothermal heat pumps will be installed on members' lines. The number of units installed per year is expected to increase at the rate of 18 percent per year, from the 1995 level of 350 units to 800 units in the year 2000.

As a result of the marketing and sales of geothermal heat pumps by N.W. and its eight member distribution cooperatives, CO₂ emissions will be reduced by approximately 14,000 short tons in the year 2000. During the period 1991 through 2000, a total reduction of approximately 81,000 short tons of CO₂ is expected due to the avoidance of coal- fired generation.

The reduction of CO₂ was calculated as follows:

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