Climate Challenge Participation Letter

DOE's Energy Partnerships for a Strong Economy

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Update letter dated March 6, 1997

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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 the Participation Accord).

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

Oglethorpe Power Corporation is the largest generation and transmission cooperative utility in the United States, serving 39 electric membership cooperatives (EMOs) in Georgia. These 39 EMCs serve approximately 1 million residential consumers located over 71 percent of the land area in the state. Oglethorpe Power is a not-for-profit cooperative whose major goal is to provide reliable electric energy to its wholesale customers (the EMCs) and, in turn, their retail customers at the lowest reasonable cost.

I. Oglethorpe Power Corporation Commitments

A.
Consistent with Paragraph II.B.l. and Exhibit B of the Climate Challenge MOU, Oglethorpe Power Corporation has or will undertake the following actions:

1. Oglethorpe Power will participate in the Earth Comfort Program, an industry initiative sponsored by the Geothermal Heat Pump Consortium, as described in Appendix B. Oglethorpe Power has committed $50,000 per year for the years 1995 through 2001.

2. Oglethorpe Power will participate in the Donated Equipment Initiative, a Public Power/Cooperative Climate Challenge Industry Initiative sponsored by the NRECA International Foundation, as described in Attachment C. Oglethorpe Power will donate equipment with an original cost of approximately $1,500,000 in the year 1995. To the extent surplus material becomes available, Oglethorpe Power will consider further participation in this initiative.

3. Oglethorpe Power will promote the participation of EMCs in the Climate Challenge Program through the above commitments. At its meeting with DOE referenced in I.C., Oglethorpe Power will inform DOE of the results of its efforts to enlist the participation of these Electric Membership Corporations and provide DOE with a list of the Corporations participating in Climate Challenge through Oglethorpe Power.
B.
Oglethorpe Power Corporation 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 subsection 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 Oglethorpe Power Corporation prior to its becoming a participant in the program, expressed on an annual basis to the extent possible.
C.
Oglethorpe Power will confer with DOE no later than December 15, 1996 regarding Oglethorpe Power's participation in the Climate Challenge Program. The purpose of such meetings will be to evaluate Oglethorpe Power's progress towards achieving the 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 the Oglethorpe Power Corporation will be Keith Hering, P.O. Box 1349, Tucker, GA 30085-1349. The Oglethorpe Power Corporation will notify DOE prior to or, in any event, no later than 30 days after any change in representative.

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; 1000 Independence Avenue, S.W., MS EE-10, Washington, DC 20585, (202) 586-2588. DOE will notify Oglethorpe Power Corporation prior to, or in any event, no later than 30 days after any change in representative.
C.
DOE will meet with Oglethorpe Power Corporation, 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 Oglethorpe Power Corporation 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 the Oglethorpe Power Corporation for purposes of addressing Climate Challenge Program issues, it will provide notice to Oglethorpe Power Corporation.

E.
To the extent permitted by applicable law and regulations and by the availability of fluids. DOE will consider Oglethorpe Power Corporation'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 Oglethorpe Power Corporation under this Participation Accord.
F.
DOE agrees to provide public recognition to Oglethorpe Power Corporation 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 Oglethorpe Power Corporation.