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Climate Challenge Participation Accord

DOE's Energy Partnerships for a Strong Economy

Climate Challenge Participation Accord

This Participation Accord describes the commitments that Sierra Pacific Power Company (Sierra) and the US. 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).

Sierra serves approximately 251,000 electric customers in northern Nevada and northeastern California, and approximately 85,000 natural gas customers in the cities of Reno and Sparks. Load growth is expected to continue at 5% annually through the year 2000. The company plans to meet load growth with Demand Side Management Programs and new supply side options. Natural gas is anticipated to play a major role in Sierra's future resource portfolio. This includes:

  • two recently constructed combustion turbines
  • the Tuscarora Natural Gas Pipeline Project
  • the Alturas 345 kV Transmission Line Project
  • the Pinon Pine Power Project, a DOE Clean Coal Technology Program demonstration project
Sierra employs an integrated approach to resource planing. This takes into consideration generation options, energy efficiency and conservation options, and environmental and economic factors, in conformance with rules set forth by the Public Service Commission of Nevada.

I. Utility Commitments

    A.
      Consistent with paragraph II.B.1.f of the Climate Challenge Program MOU, Sierra has undertaken or will undertake the following specific projects and actions to reduce greenhouse gas emissions.

      Since January 1, 1991, Sierra has, or will continue to:

      • purchase power from four (4) geothermal generation units, and will purchase power from a fifth unit once operations commence, scheduled for December 1995. The incremental resource displaced is a conventional coal unit Utilization of geothermal power in the year 2000 will avoid emission of 589,422 tons of carbon dioxide (CO2).

      • implement residential, commercial and industrial demand side management (DSM) programs, saving 297,704 megawatt-hours in the year 2000. This will avoid the emission of approximately 242,033 tons of CO2 in 2000. Programs Sierra has implemented include Good Cents New Home and Improved Home, Good Cents Commercial, Peak Performance, Shared Savings, and Light Brigade.

      • implement efficiency improvement projects for steam units at Sierra's Tracy, Fort Churchill, and Valmy Power Stations. With the heat rate monitoring upgrades and boiler control retrofit projects completed, approximately 33,206 tons of CO2 will be avoided in the year 2000.

      • sell fly ash produced at the Valmy 1 coal-fired unit, for manufacturing cement In the year 2000, utilization of this fly ash will avoid the emission of 29,376 tons of CO2.

      • use compressed natural gas (CNG) as an alternative fuel in dual-fueled fleet vehicles. With 100% CNG utilization in dual-fueled vehicles in the year 2000, approximately 105 tons of 002 equivalents will be avoided.

      Sierra is committed to:

      • a natural gas pipeline construction project, increasing the availability of natural gas at Sierra's Tracy and Fort Churchill generating units. Increased gas availability at these units will replace oil fuel and displace other generating units in the system dispatch order, reducing CO2 emissions in the year 2000 by approximately 256,261 tons.

      • a 345 kiloVolt (kV) transmission line construction project, interconnecting Sierra's transmission system with the Bonneville Power Authority. This will increase access to hydroelectric energy markets in the Northwest. Data is not available to estimate greenhouse emission reductions achievable with this project

      • continued participation with the US Department of Energy (DOE) in a Clean Coal Technology Demonstration Project, the Pinon Pine Power Project, using integrated coal gasification combined cycle technology. The low, co-firing heat rate of 8140 Btu/kWh will result in lower greenhouse gas emissions, compared to other coal-fired supply options.

      Contingent upon consideration of financial resources, ratepayer impacts, competitive implications, and regulatory commission review, Sierra will:

      • promote the use of geothermal heat pumps for residential and commercial space conditioning applications. By replacing natural gas and propane fired heating appliances and conventional summer cooling appliances with geothermal heat pumps, greenhouse gas emission will be reduced through fuel substitution and energy efficiency.

      • promote the use of lower greenhouse gas emitting natural gas stoves for space heating, replacing residential wood combustion appliances.

      • increase the number of Sierra's natural gas-fueled fleet vehicles.

      • promote the Cool Communities Program with the implementation of an Urban Shade Tree Program resulting in both sequestering of carbon and gaining energy efficiencies through summer shading.

      • provide energy information and perform audits for residential, commercial, and industrial customers promoting the use of electrotechnologies, and energy efficiency and conservation measures which have the net effect of reducing greenhouse gas emissions.
    B.
      Sierra will report annually on 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) 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 Sierra prior to its becoming a participant in the Program, expressed on an annual basis to the extent possible.
    C.
      Sierra will confer with DOE on or before February 28, 1997 to jointly evaluate the progress of the company in achieving it Climate Challenge Program goals and discuss possible adjustments to the company's voluntary commitments. If necessary, after the proposed merger with Washington Water Power, Sierra will confer with DOE on the need to update this Participation Accord.
    D.
      The Climate Challenge Program representative will be Ed Skudlarek, Environmental Planner, Sierra Pacific Power Company, P.O. Box 10100,6100 Neil Rd., Reno NV 89520. Sierra agrees to notify DOE prior to or, in any event, no later than 30 days after any change in the contact
II. DOE Commitments
    A.
      DOE's commitments to Sierra 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 Sierra 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 Sierra for purposes of addressing Climate Challenge Program issues, it will provide notice to Sierra.
    C.
      DOE will provide an annual report to Sierra 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 a liaison to Sierra, will be Allan Hoffman, U.S. Department of Energy, 1000 Independence Ave., SW, Washington, DC 2O585, phone number 202/585-1786.

      DOE agrees to notify Sierra prior to or, in any event, no later than 30 days after any change in liaison responsibilities or personnel

III. General Provisions
    A.
      Use of DOE-developed materials by Sierra 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 Sierra 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 VA-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)
____________________________
Walter M. Higgins
Chairman, President, and CEO
Sierra Pacific Resources/Sierra Pacific Power Company
__________________[date]               



  (Original signed by)
____________________________
Secretary of Energy
US Department of Energy
__________________[date]
Attachment

Attachment A - Climate Challenge Program MOU and exhibits



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