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Climate Challenge Participation Letter

DOE's Energy Partnerships for a Strong Economy

Climate Challenge Participation Accord
Between
United States Department of Energy
And
Old Dominion Electric Cooperative


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 Presidents 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).

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

Old Dominion is a not- for- profit electric generation and transmission cooperative serving twelve member electric distribution cooperatives in the states of Delaware, Maryland, and Virginia. Ten of the twelve member cooperatives are located in Virginia, one is located in Maryland and one in Delaware. In total, the twelve member cooperatives provide electric service to more than 370,000 consumers. Old Dominion operates as essentially two separate generation and transmission systems. Separated from the rest of Virginia by the Chesapeake Bay, the Delmarva Peninsula is physically isolated from power sources located throughout the southern reaches of Old Dominion's system.

Old Dominion meets its members' power needs through its 11.6% ownership of North Anna nuclear power station and power purchases. Additionally, Old Dominion is currently 50% partners with Virginia Power in the construction of two 391 MW (net) conventional pulverized coal- fired generating units. At the present time, Old Dominion itself does not own or operate any transmission assets. In general, each member cooperative is responsible for maintaining its distribution system.

Old Dominion and its sister organization, the Virginia, Maryland & Delaware Association of Electric Cooperatives, comprise a Federated organization which provides services to a total of fifteen electric cooperatives within the region. The electric cooperatives listed in Attachment B have an ownership interest in and receive bulk electric power and/or receive technical or other services from Old Dominion. Due to this relationship, the cooperatives in Attachment B will participate in the Climate Challenge Program through Old Dominion.

I. Old Dominion Commitments
    A.
      Consistent with Paragraph ll.B.1.f and Exhibit B of the Climate Challenge Program MOU, Old Dominion has or will undertake the following actions:
      1. Demand- Side Management Projects: Old Dominion recently designed a Demand- Side Management Program analysis and screening technique. Old Dominion relies on its member's knowledge of the demographics of its particular service territory, as well as the market infrastructure, to identify whether or not a particular program or element thereof might meet the cooperative's objectives. Once a program, or element thereof, is identified by a member cooperative as having applicability in its service territory, Old Dominion and the distribution cooperative work together to develop a custom- designed DSM program to meet the unique circumstances of that member cooperative. No member distribution cooperative is expected to implement all of the DSM programs that survive the Old Dominion screening process and each cooperative is free to adopt certain measures within a program or add other measures to a program to customize it for that cooperative’s use, with an overall objective of obtaining demand- side reductions on a system- wide basis. The cooperatives participating in this program are as follows: A & N Electric Cooperative, BARC Electric Cooperative, Choptank Electric Cooperative, Community Electric Cooperative, Delaware Electric Cooperative, Mecklenburg Electric Cooperative, Northern Neck Electric Cooperative, Northern Virginia Electric Cooperative, Prince George Electric Cooperative, Rappahannock Electric Cooperative, Shenandoah Electric Cooperative, and Southside Electric Cooperative.

      Through this screening process, Old Dominion has developed seven DSM programs for its Member's consideration. These programs include five conservation efforts and two direct load control programs. Old Dominion will continue to develop and offer to its members DSM programs. The programs currently offered by Old Dominion are as follows:

        a. Residential lighting Program: This program is designed to conserve energy by building customer awareness and encourage the installation of energy efficiency fluorescent lighting. Consumers would be provided compact fluorescent bulbs at a substantial discount from retail rates.
        b. Residential High Efficiency Water Heater Program:
        This program encourages the installation of more efficient water heaters. Member cooperatives would offer incentives for consumers to purchase high efficiency water heaters.

        c. Residential Water Heater Insulation Program: This program's purpose is to conserve energy by wrapping electric water heaters with insulation jackets and installing other energy and water saving devices. Member cooperatives would install energy saving measures directly, including water pipe wraps and shower head water flow restrictors.

        d. Residential New Home Program:To encourage the construction of energy efficient homes, this program requires new homes to be constructed based upon detailed design specifications.

        e. Residential Energy Efficient Home Installations
        Program: The goal of this program is to reduce residential energy consumption though the application of low cost energy efficiency measures. Member cooperatives would directly install low cost weatherization, hot water heater wraps, low- flow shower heads and energy efficiency lighting measures in residential dwellings.

        f. Residential Direct Load Control Expansion Program:
        The goal of this program is to increase the penetration of load control devices on electric water heaters and/or central air conditioning units.

        g. Commercial Curtailable Load Control Program: To
        reduce monthly load, this program offers billing credits to customers based upon the maximum amount of load reduction realized when the consumer is called upon by the member cooperative to reduce its electricity consumption.

        Old Dominion estimates that these efforts, if fully implemented, will result in the annual reduction of tons of CO2 as listed in Table 1.

      2. Tree Planting Program: Between 1992 and 1996, Old Dominion planted or will plant over 5,900 trees of various species (See Attachment C for details) at the Clover Power Station for mitigative purposes and visual screening. Carbon will be sequestered over the life of the tree planted under this project

      Estimates of the annual quantities of greenhouse gases sequestered by Old Dominion as a result of this project are not available at this time; however, Old Dominion will attempt to determine the total tons of CO2 sequestered in the future.

      3. Green Lights Program: Old Dominion will sign a Green Lights Memorandum of Understanding with the Environmental Protection Agency and become a utility ally in the program in 1995.

      A number of retrofit options will be implemented in 1995 at the Corporate Headquarters building in Richmond, Virginia. The primary retrofits to be installed include retrofitting T8 fluorescent lamps and electronic ballasts, LED exit signs, and removing some incandescent downlights. Compact fluorescent lamps will be installed in place of those incandescent lamps we remove. It's been estimated that these changes will reduce annual energy consumption by approximately 141,000 kWh. The estimated annual reductions anticipated from the retrofit are shown in Table 1.

    B.
      Old Dominion 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 Old Dominion prior to its becoming a participant in the program, expressed on an annual basis to the extend possible.

    C.

      Old Dominion will confer with DOE no later than July 16,1997 regarding Old Dominion's participation in the Climate Challenge Program. The purpose of such meeting will be to evaluate Old Dominion'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 Old Dominion will be Salud Astruc, Environmental Coordinator, Old Dominion Electric Cooperative; P.O. Box 2310, Glen Allen, Va. 23058. Old Dominion will notify DOE prior to or, in any event, no later than 30 days after any change in 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 Mr. Larry Mansueti, Director, Climate Challenge Program, Office of Utility Technologies, U.S. Department of Energy (EE- 10); 1000 Independence Avenue, S.W., Washington, D.C. 20585, (202) 586- 2588. DOE will notify Old Dominion prior to, or in any event, no later than 30 days after any change in representative.
    C.
      DOE will meet with Old Dominion upon request regarding possible adjustments of the Climate Challenge commitments set forth in subsection I.A. of this Participation Accord.
    D.
      DOE will consider requests by Old Dominion 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 Old Dominion for purposes of addressing Climate Challenge Program issues, it will provide notice to Old Dominion.
    E.
      To the extent permitted by applicable law and regulations and by the availability of funds, DOE will consider Old Dominion'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 Old Dominion under this Participation Accord.
    F.
      DOE agrees to provide public recognition to Old Dominion 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 Old Dominion.
III. General Provisions
    A.
      Use of any DOE-developed materials by Old Dominion will be governed by the provisions of Section IV of the Climate Challenge MOU.
    B.
      In addition to the foregoing provisions, DOE and Old Dominion 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 R. O'Leary
Secretary of Energy




OLD DOMINION ELECTRIC COOPERATIVE


(Original Signed By)
Ron W. Watkins
President and CEO

Attachments:
    Attachment A - Climate Challenge Program MOU and Exhibits

    Attachment B - Distribution Cooperatives Which Are Participating in the Climate Challenge Program Through Old Dominion

    Attachment C- Tree Species and Quantities

    TABLE 1- Estimated Reductions

ATTACHMENT B



A & N Electric Cooperative

BARC Electric Cooperative

Choptank Electric Cooperative

Community Electric Cooperative

Craig-Botetourt Electric Cooperative

Delaware Electric Cooperative

Mecklenburg Electric Cooperative

Northern Neck Electric Cooperative

Northern Virginia Electric Cooperative

Prince George Electric Cooperative

Rappahannock Electric Cooperative

Shenandoah Electric Cooperative

Southern Maryland Electric Cooperative

Southside Electric Cooperative
ATTACHMENT C


Species                                     Quantity                  Year Planted

Acer Rubrum-Red Maple                       130                       1992
Alnus Serrulata-Alder Brook-side            130                       1992
Betula Nigra-River Birch                    130                       1992 
Fraxinus Pennsylvanica-Green Ash            130                       1992
Liquidambar Styraciflua-Sweet Gum           130                       1992
Platanus Occidentalis-Am. Sycamore          129                       1992
Quercus Phellos-Willow Oak                  454                       1992
Quercus Palustris-Pin Oak                   453                       1992
Salix-Nigra-Black Willow                    129                       1992
Juniperus Viriniana-Eastern Red Cedar       360                       1995
Cornus Stolonifera-Red-osier Dogwood        139                       1995
Acer Rubrum-Red Maple                        15                       1995
Platanus Occidentalis-Am. Sycamore           15                       1995
Juniperus Viriniana-Eastern Red Cedar      1404                       1996
Cornus Stolonifera-Red-osier Dogwood        170                       1996
Acer Rubrum-Red Maple                      1000                       1996
Platanus Occidentalis-Am. Sycamore         1000                       1996
Table 1

ESTIMATES OF GREENHOUSE GASES REDUCED,
AVOIDED, OR SEQUESTERED




ACTIVITY                                        Tons of Greenhouse
                                                Reduced, Avoided, or 
                                                Sequestered

1.   Demand Side Management Programs            19,372**

2.   Tree Planting                              ***

3.   Lighting Program                           113.5 tons/yr



* Includes only Old Dominion's 12 member cooperatives
** Quantity expressed as tons of CO2 in the year 2000
*** To be determined



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