Climate Challenge Participation Accord

DOE's Energy Partnerships for a Strong Economy

CLIMATE CHALLENGE PARTICIPATION ACCORD

This Participation Accord describes the commitments that the Pennsylvania Power & Light Company (PP&L) 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. PP&L Commitments

A.
Consistent with paragraph II.B.1 of the Climate Challenge Program MOU, PP&L will undertake specific projects or actions and participate in Edison Electric Institute industry initiatives.

In order to achieve its commitment(s), PP&L plans to take these actions:

(See Attachments B, C and D to this Participation Accord)

B.
PP&L will report annually on activities and achievements under the Climate Challenge Program. Results achieved during each year shall be reported in a dear and understandable manner that is consistent with the guidelines adopted pursuant to subsection 1605(b) of the Energy Policy Act and the Climate Challenge accounting protocols in Exhibit B of the Climate Challenge Program MOU. The first such report may include a description of the activities and achievements of PP&L prior to its becoming a participant in the Program, expressed on an annual basis to the extent possible.
C.
PP&L will confer with DOE on or before September 1.1996, to evaluate jointly the progress of PP&L in achieving its Climate Challenge Program goals and to discuss possible adjustments to its voluntary commitments.
D.
The Climate Challenge Program representative for PP&L will be Mr. Richard P. Janoso, PP&L, Two North Ninth Street, Allentown, Pennsylvania 18101-1179. PP&L agrees to notify DOE prior to or, in any event, no later than 30 days after any change in the contract.

A.
DOE's commitments to PP&L are those set out in Section III of the Climate Challenge Program MOU, which are hereby incorporated in this Participation Accord by reference.
B.
DOE will consider PP&L requests to intervene in regulatory 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 PP&L for purposes of addressing Climate Challenge Program issues, it will provide notice to PP&L.
C.
DOE will provide an annual report to PP&L describing the actions that it has taken to fulfill its commitments under Section III and Exhibit C of the Climate Challenge Program MOU and the results of those actions.
D.
The Climate Challenge Program representative for DOE, who will serve as liaison to PP&L, will be Mr. Allan Hoffman, U.S. Department of Energy, 1000 Independence Avenue SW, Washington, DC 20585, (202) 586-1786.

A.
Use of DOE-developed materials by PP&L 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 PP&L 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)
____________________________
Secretary of Energy
U.S. Department of Energy
February 3. 1995 [Date]

Attachments:

Attachment B: Narrative description of PP&L Climate Challenge Commitment

Attachment C: Projects and actions of PP&L Climate Challenge Commitment and estimate of associated greenhouse gas emission reductions of each.

Attachment D: Estimated CO₂ Emissions Savings Profile of PP&L Climate Challenge Commitment

PP&L's Climate Challenge Commitment consists of two types of actions: (1) specific projects that will reduce regional emissions growth and (2) participation in Edison Electric Institute industry initiatives that will reduce or offset emissions growth on a national or international level. The commitment contains these actions:

• Natural Gas Use
  Addition of co-firing of natural gas at two 820 MW oil-fired generators at the Martins Creek SES in the mid to late 1 990s will reduce regional CO₂ emissions from the PJM Interconnection by about a quarter million tons/year in the late 1 990s.
• Nuclear Power
  Rerating of the generating capability, changes in operating capacity and outage duration of two existing 1040 MW nuclear generators at the Susquehanna SES from the mid 1990s to 2000 will save over a million tons of CO₂ per year from the PJM region.
• Fossil Plant Efficiencies
  A continuing program of capital projects and operating improvements to improve the heat rates of all PP&L fossil-fired generating units will save over 200,000 tons of CO₂/year by the late 1 990s.
• Demand Side
  PP&L will continue and add to customer Demand Side Management programs including use of new electrotechnologies that can both benefit electric customers and reduce overall emissions. Regional CO₂ emission savings will be about 200,000 tons/year.
• Ash Utilization
  PP&L will both reduce a waste and reduce CO₂ emissions by about 90,000 tons/year by reuse of ash from its coal-fired power plants in Portland cement making.
• Trees For The Future
  PP&L sponsors a yearly tree education and planting program which provides about 200,000 Douglas Fir seedlings to over 500 schools and 160,000 students. Students plant the trees as part of environmental energy education lessons.
• Electric Vehicles
  PP&L is sponsoring programs to promote the regional use of electric vehicles (EVs) in the late 1990s. PP&L is demonstrating EVs and conducting educational activities such as the Preview program with General Motors in 1995, Is working with the Department of Defense to commercialize a high-tech EV for utility fleet application in the ARPA program and has established a rate credit for customers who charge electric vehicles.
• Transmission and Distribution
  PP&L will upgrade systems and equipment to reduce energy losses from system transformers through its ongoing program of maintenance and replacement.

Industry Initiatives

In addition to these PP&L actions, PP&L has joined, or plans to join these Edison Electric Institute industry initiatives to further reduce or sequester greenhouse gas emissions:

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Forest Carbon Management Program:

PP&L has contributed $5,000 in 1994 to join this initiative to promote carbon sequestration through forest management programs. PP&L plans to participate at a nominal level in 1995 and in future years as carbon management projects and costs are defined and undertaken.

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National Earth Comfort Program:

PP&L is participating at the $25,000 level in this initiative in 1995 to promote geothermal heat pump (GHP) use in the United States. GHPs are one of the most efficient methods for heating and cooling of homes and buildings, and greenhouse gas emissions can be reduced through their use.

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EV America:

PP&L was one of the original members of this electric vehicle program. We are considering our participation level.

While there is uncertainty on the global warming effect of NOx emissions, PP&L also is installing equipment to reduce nitrogen oxide emissions by over 50,000 tons/year in the mid to late 1990s from fossil-fired generators.

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