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"), (see Attachment A to this Participation Accord).

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

Seminole is a generation and transmission cooperative which generates and transmits bulk supplies of electricity to 11 member distribution cooperatives throughout Florida. Seminole's member systems provide electric power to more than 1 million Floridians in 45 counties. SECI's existing generating capabilities consist of two 620-megawatt coal-fired units and a 14.4-MW share of a nuclear power plant.

I. Seminole Electric Cooperative, Inc., Commitments.

A.
Consistent with Paragraph II.B.1. and Exhibit B of the Climate Challenge Program MOU, the Seminole Electric Cooperative, Inc., has or will undertake the following actions:

1. As described in Attachment B, Seminole will construct a 440 MW natural gas fired combined cycle generating plant that will begin operation in 1999 to replace power purchased from other sources, the result of which will reduce CO₂ emissions by approximately 1,070,000 short tons in the year 2000.

2. As described in Attachment B, Seminole has undertaken and will continue to implement a heat rate improvement program at its existing generating facilities, the result of which will reduce CO₂ emissions by approximately 270,000 short tons in the year 2000.

3. As described in Attachment B, Seminole utilizes an optimization evaluation process to select optimal conductor sizes on new transmission projects, the result of which will reduce CO₂ emissions by approximately 50,000 short tons in the year 2000, with a total reduction of 350,000 short tons for the 1993-2000 time period. 4. As described in Attachment B, Seminole recycles and will continue to recycle fly ash and bottom ash from its coal-fired generating facility as a substitute aggregate to cement industries in Florida, the result of which will reduce CO₂ emissions by approximately 37,500 short tons in the year 2000.

5. As described in the Attachment B, Seminole's present and ongoing Demand Side Management programs include coordinated direct load control and voltage reduction; residential and commercial audits; fix-up programs; lighting conversion; water and space heater programs; and public awareness campaigns, the result of which will reduce CO₂ emissions by approximately 13,000 short tons in the year 2000, with a total of 38,000 short tons of CO₂ for the 1995-2000 time period. 6. As described in Attachment B, Seminole is undertaking a lighting replacement project at its headquarters facility that will result in a reduction of CO₂ emissions by approximately 400,000 pounds in the year 2000.

B.
Seminole 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 Seminole prior to its becoming a participant in the program, expressed on an annual basis to the extent possible.

C.
Seminole will confer with DOE no later than March 31, 1997 regarding Seminole's participation in the Climate Challenge Program. The purpose of such meeting will be to evaluate Seminole's progress towards achieving 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 Seminole will be Michael P. Opalinski, Director of Environmental Affairs, P. 0. Box 272000, Tampa, Florida 33688-2000. Seminole 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 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 (EE-10), 1000 Independence Avenue, S.W., Washington, DC 20585, (202) 586-2588. DOE will notify Seminole prior to, or in any event, no later than 30 days after any change in representative.
C.
DOE will meet with Seminole 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 Seminole 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 Seminole for purposes of addressing Climate Challenge Program issues, it will provide notice to Seminole.
E.
To the extent permitted by applicable law and regulations and by the availability of funds, DOE will consider Seminole'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 Seminole under this Participation Accord.
F.
DOE agrees to provide public recognition to Seminole 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 Seminole.

A.
Use of any DOE-developed materials by Seminole will be governed by the provisions of section IV of the Climate Challenge MOU.
B.
In addition to the foregoing provisions, DOE and Seminole 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

SEMINOLE ELECTRIC COOPERATIVE, INC.

(Original Signed By)
William C. Walbridge
Executive Vice President
and General Manager

These project descriptions are detailed explanations of Seminole's actions to reduce, avoid or sequester greenhouse gas emissions referenced in paragraph I.A of the Climate Challenge Accord:

1. Seminole's Hardee Power Station 3 (HPS-3) Project

Seminole is scheduled to begin construction of a 440 MW combined cycle electric generating facility in January 1997 to be in commercial operation in January 1999. The project will consist of two 150 MW Westinghouse Model 501F combustion turbines utilizing state-of-the-art dry low-NO_x combustors to meet a nitrous oxide (NO_x) emission limitation of 15 ppm at 15 % O₂ while burning natural gas and 42 ppm while burning low sulfur No. 2 oil. Each combustion turbine will be connected to a heat recovery steam generator which will produce steam for a single 140 MW steam turbine. There will be no supplemental firing of fuel in either heat recovery steam generator.

The HPS-3 project will replace 440 MW of partial requirement purchases currently acquired from the Florida Power and Light (FPL) Company. HPS-3 will also provide load serving capability, emergency service and back-up service to Seminole's coal fired generating station. It is estimated that in the year 2000, the HPS-3 Unit will offset 750 GWH of partial requirements from FPL and 595 GWH from Seminole's coal fired units. CO₂ reductions are estimated to be 1,070,000 tons in the year 2000 compared to what would have been emitted if the facility had not been constructed.

To account for reductions from energy used to offset partial requirements, generated energy will be metered at the HPS-3. CO₂ reductions will be determined by comparing the calculated CO₂ emissions generated by the HPS-3 Unit using actual heat rate, fuel quality and type and CO₂ emission factors developed by the DOE⁽¹⁾ against the amounts of CO₂ that would have been generated by the FPL system using state adjusted electricity emission factors published by the DOE. ⁽²⁾

HPS-3 generation used to offset generation from Seminole's coal fired facility will be metered and CO₂ emissions determined as stated above. HPS-3 CO₂ emissions will be compared against CO₂ emissions generated from Seminole's coal fired facility using actual heat rates, fuel used and emission factors established by the DOE.⁽¹⁾

Seminole has an ongoing heat rate improvement program at its coal fired generating station as a part of an overall plant efficiency improvement program. The improvement program implemented centers around the constant monitoring of twelve controllable loss areas utilizing a heat rate monitor which updates information to boiler operators on a ten minute basis. Heat rate monitor ten minute calculations are verified on a quality basis by comparing metered electrical output (MW) with measured fuel use data.

In addition, a semi-annual preventative maintenance program was developed to evaluate boiler equipment where heat or steam losses detract from an efficient operation. Preventative maintenance activities include turbine valve inspections, air heater leakage inspections and improvements to the coal grinding capability which improve fuel combustion efficiency.

In 1990, the annual heat rate was 10,159 Btu/Kwh and in 1994, the heat rate was lowered to 9,850 Btu/Kwh for Seminole's coal-fired generating facility, resulting in an avoidance of approximately 270,000 short tons of CO₂. Seminole will continue to identify and conduct heat rate improvements between 1995-2000. In each year, the heat rate will be verified after the fourth calendar quarter and calculated with the metered plant output to determine an annual heat input. Heat input will be calculated with CO₂ emission factors established by the DOE⁽¹⁾ to determine annual CO₂ emissions. This value will be compared against the emissions which would have been generated with the 1990 heat rate.

3. Transmission Conductor Optimization Evaluation Process

Seminole has incorporated a conductor optimization evaluation process to select the optimal size of transmission line conductors. Prior to the use of the optimization process, conductor sizes were selected on their ability to meet the load-carrying capability only. The objective of the evaluation study is to determine the optimum conductor size based on capital cost, line losses over the life of the facility and the ability to meet engineering and design standards of the Rural Utility Services and National Electrical Safety Code.

Since 1990, Seminole has constructed three major 230 Kv transmission lines using the optimization evaluation process. In each case, a larger conductor was selected than was necessary to meet the minimum load-carrying capability of each line, resulting in a reduction of line losses of 91,642 MWH per year at peak load conditions, and a 52 % loss factor. Line losses at peak demand and energy loss are calculated using the following formulas:

            DL = 3 x 12 x r/1000

 Where:      DL = line loss at peak demand (KW/mile)
              I = line current (amperes)
              R = line resistance (ohms/mile)
             
             EL = DL x FL x 8,760 hrs/yr x line miles

Where:       EL = energy loss (KWH/yr)
             LF = loss factor (%)    (which includes plant capacity factor and
                                      line loadings at maximum and zero plant output)

4. Reuse of Coal Fly Ash and Bottom Ash

Coal combustion as the primary fuel source at the Seminole Power Plant located in Palatka, Florida, results in the generation of two by-products (fly ash and bottom ash) that can be used in the production of portland cement. Since 1990, Seminole has sold an average of 42,000 tons of fly ash and 33,000 tons of bottom ash annually to cement manufacturers located in the state of Florida. The use of coal ash in the production of cement reduces the amount of carbon dioxide emitted to the atmosphere since the coal ash replaces cement that would have otherwise been produced. The volume of carbon dioxide emitted during the cement production process is directly proportional to the lime content of the cement. Portland cement contains approximately 60 to 57 percent lime by weight and the annual carbon dioxide emissions (in tons) from the production of cement can be found from the following equation:⁽²⁾

Seminole expects the sales of fly ash and bottom ash to be maintained at a minimum of 75,000 tons per year through the year 2000. At this rate, Seminole expects CO₂ reductions of 37,500 short tons in the year 2000. Actual CO₂ reductions will be calculated using the equation noted above and actual quantities of ash sold in the year 2000.

Seminole is also investigating new methods of operating its flue gas desulfurization (FGD) sludge landfill which would require less fly ash in the land filled material thereby making more available for recycling. The new operational method, known as macro-encapsulation has been approved by State regulatory agencies and may be used in a pilot program as early as 1996.

The Demand Side Management (DSM) programs of Seminole and its member distribution cooperatives are divided into two (2) categories: (1) load management, which includes both direct load control (DLC..) and conservation voltage reduction (CVR); and, (2) energy conservation programs.

Seminole coordinates the load management and voltage reduction of the participating members to achieve the optimum utilization of the individual load management systems.

The effects of the load management programs are verified on a daily basis by the Seminole energy management system computer. Following each period during which the load management functions were exercised, the load estimation program in Seminole's energy management computer generates the data for what the load would have been absent the load management functions.

Conservation programs are the responsibility of the individual Seminole member systems. Each distribution cooperative has a portfolio of programs tailored to the unique characteristics of its service territory. The customer density, housing size and type, average income and weather patterns are among the characteristics which vary greatly from member to member. The variety of conservation programs varies accordingly.

The conservation program effects will be verified through an analysis of the actual data gathered in the year 2000 compared to the 1994 Power Requirements Study Forecast for the year 2000. The analysis will include extensive data gathering efforts by the Seminole members and surveys of the ultimate consumers on appliance saturations, housing statistics, family size, economic factors, etc. The data will be weather normalized and analyzed using the same methods used in the preparation of the forecast estimates.

Seminole currently estimates that the Demand Side Management Program will displace the need for approximately 13,000 MWH in the year 2000 and 38,500 MWH during the period of 1995-2000. . Assuming this load would have been generated from Seminole's coal- fired power plant and utilizing CO₂ emission factors for bituminous coal developed by the U.S. DOE,(1) the Seminole DSM program is estimated to reduce CO₂ emissions by 13,000 short tons in the year 2000 and 38,000 short tons during the 1995-2000 period.

6. Relamping of Seminole Headquarters Building

Seminole has initiated the relamping of its headquarters building in Tampa, Florida. The relamping project will replace 2,854 magnetic ballasts and 40 watt T-12 fluorescent lamps with electric ballasts and 32 watt T8 fluorescent lamps. When completed, the project is estimated to save 271,000 kwh/year. CO₂ emission reduction will be calculated using the U.S. EPA Green Lights ProjectKalc Version 1.01 computer program and are estimated to be 400,000 lbs. CO₂/year in the year 2000.

References

1. Voluntary Reporting of Greenhouse Gases Under Section 1605(b) of the Energy Policy Act of 1992, Volume 1, Page B. 1; U. S. Department of Energy; October, 1994.

2. Voluntary Reporting of Greenhouse Gases Under Section 1605(b) of the Energy Policy Act of 1992, Volume 1, Page C.2; U. S. Department of Energy; October, 1994.

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