Climate Challenge Participation Letter

DOE's Energy Partnerships for a Strong Economy

The Climate Challenge Participation Accord is a joint, voluntary effort the United States Department of Energy (DOE) and the electric utility industry undertaken in pursuit of the President's goals for reducing the greenhouse gas emissions. The framework of the Climate Challenge Program was established in the Climate Challenge Program Memorandum of Understanding dated April 20, 1994 (Climate Challenge Program MOU), (see Attachment A to this Participation Accord).

The Participation Accord describes the actions that Soyland Power Cooperative, Inc. (SOYLAND POWER) and DOE have committed to undertake under the Climate Challenge Program. SOYLAND 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 SOYLAND POWER in achieving its Climate Challenge Commitments.

SOYLAND POWER COOPERATIVE is a member-owned, not-for-profit electric generation and transmission cooperative which produces and supplies electricity to 21 member distribution cooperatives. These distribution cooperatives provide retail electric service to approximately one-half million consumers comprising the geographic service area that encompasses almost two-thirds of the State of Illinois.

SOYLAND POWER owns 13.21 % share of Clinton Nuclear Power Station, which generated 978,906 MWh for an annual capacity factor of 90.8% in 1994. This plant furnishes approximately 30 % of Soyland's energy requirements. SOYLAND POWER also owns a 20 MW coal fired unit at Pearl Station, which generated 109,000 MWh of energy with a annual unit capacity factor of 70 % in 1994. In addition, Soyland owns about 34 MW of peaking generation units comprising a 22 MW gas-turbine at Pearl, and 12 MW of several diesel units at Pittsfield and Winchester. SOYLAND POWER has entered into long term power supply agreements with ILLINOIS POWER COMPANY (IP) and CENTRAL ILLINOIS PUBLIC SERVICE COMPANY (CIPS) on as- if-owned basis to meet the generation requirements for most of its load. All of this requirement will be met from fossil- fuel generation. The Cooperative has contracted to purchase 435 MW of capacity annually from IP through 2011 and 102 MW of capacity annually from CIPS through 1999. In 1994, Soyland had sales of 2,596,233 MWh.

Soyland Power Cooperative, Inc. Climate Challenge Participation Accord
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Additionally, the electric cooperatives listed in Attachment B have an ownership interest in and receive bulk power from SOYLAND POWER. Due to this ownership and power supply relationship, the cooperatives in Attachment B will participate in the Climate Challenge Program through SOYLAND POWER.

I. SOYLAND POWER Commitments

A.
Consistent with Paragraph II.B. 1. and Exhibit B of the Climate Challenge Program MOU, SOYLAND POWER will:

Undertake specific projects or actions, or make specific expenditures on projects or actions, to reduce net greenhouse gas emissions, as indicated below (supplemental information on Soyland's projects is shown in Attachment C):

- Expand Demand-Side Management (DSM) through extensive and collaborative Marketing
- Expand DSM through load control and rate structure design
- Emphasize and expand efforts on Transmission and Distribution (T&D) loss reduction
- Pursue supply-side efficiency improvements

B.

SOYLAND POWER 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 established adopted pursuant to subsection 1605(b) of Energy Policy Act and 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 SOYLAND POWER prior to its becoming a participant in the Program, expressed on annual basis to the extent possible.

C.

SOYLAND POWER will confer with DOE on or before June 30, 1997 to evaluate jointly the progress of SOYLAND POWER in achieving its Climate Challenge Program goals and to discuss possible adjustments to its voluntary commitments. The purpose of such meetings will be to evaluate the SOYLAND POWER 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.

Soyland Power Cooperative, Inc. Climate Challenge Participation Accord
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D.
The Climate Challenge Program representative for Soyland Power will be:

Israr A. Chaudhary
Systems Engineer
Soyland Power Cooperative, Inc.
788 North Sunnyside Road
Decatur, Illinois 62522

SOYLAND POWER 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 will perform the actions and fulfill the commitments set out in section III of the Climate Challenge MOU.

B.

The Climate Challenge Program representative for DOE will be:

Larry Mansueti
Department of Energy
Room 6B-128 (EE-10)
1000 Independence Ave., SW.
Washington, DC 20585
(202) 586-1786

DOE will notify SOYLAND POWER prior to or, in any event, no later than 30 days after any change in liaison responsibilities or personnel.

C.

DOE will meet with SOYLAND POWER 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 SOYLAND POWER 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 SOYLAND POWER for purposes of addressing Climate Challenge Program issues, it will provide notice to SOYLAND POWER.

Soyland Power Cooperative, Inc. Climate Challenge Participation Accord
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E.
To the extent permitted by applicable law and regulations and by the availability of funds, DOE will consider SOYLAND POWER 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 SOYLAND POWER under this Participation Accord.

F.

DOE agrees to provide public recognition to SOYLAND POWER 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 SOYLAND POWER.

III. General Provisions

A.
Use of DOE-developed materials by SOYLAND POWER will be governed by the provisions of section IV of the Climate Challenge Program MOU.

B.

In addition to the foregoing provisions, DOE and SOYLAND POWER 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.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 its activities under the Climate Challenge Program without penalty and without being subject to remedies at law or equity.

 

U.S. DEPARTMENT OF ENERGY                SOYLAND POWER COOPERATIVE

_________________________                _________________________
(Original Signed By)                     (Original Signed By)
Hazel O'Leary                            Joseph F. Firlit 
Secretary of Energy                      Exec. Vice President & General Manager
May 2, 1995                              May 2, 1995

Attachments:

Attachment A - Climate Challenge Program MOU and Exhibits
Attachment B - Distribution Cooperatives Which Are Particiapting in the Climate Challenge Program Through SOYLAND POWER

Attachment C - SOYLAND POWER commitments

SOYLAND POWER Commitments:

- Expand DSM Marketing

SOYLAND POWER through its subsidiary Applied Energy Systems will expand the use of geothermal heat pumps not only by its members, but by all consumers. Since 1991, 800 heat pumps have been installed on Soyland' s members and an additional 2,000 are forecasted to be installed on Soyland's members by the Year 2000. In 1994, Applied Energy sold overall 770 heat pumps with a record sales of about $ 3 Million, representing a 27.3 % increase over 1993.

SOYLAND POWER will continue to maintain its leadership role in the promotion of geothermal pumps with encouragement from, and in participation with DOE and USEPA.

At present SOYLAND POWER is offering a $ 500 one-time rebate to each member as an incentive to install a heat pump. The rebate applies towards capital cost of installation of each heat pump. The response to date has been very positive. SOYLAND POWER will extend or increase the rebate if demand increases. In addition, some of Soyland' s members cooperatives offer their own rebates to members who install heat pumps. Soyland' s members are also promoting to their consumers the concept of "all electric homes" to lure customers away from gas, wood or propane heating and towards installation of heat pumps for both heating and cooling needs. Some cooperatives are also offering low interest loans to qualifying~ring members for the installation of heat pumps.

SOYLAND POWER will continue to expand its collaborative marketing program with its member systems to promote end-use electro technologies in the home, on the farm, and within commercial facilities.

- Expand DSM through load control and rate structure design

SOYLAND POWER will continue to encourage its member cooperatives to expand their efforts towards load control in order to achieve energy savings. Soyland's members will continue their strong emphasis on "switch and save" load management programs whereby air conditioners, water heaters, or even the total load on residential systems or commercial and large loads can be interrupted during peak times to shave peak demand as well as energy. Soyland's member cooperative offer different rate structures depending on the type and magnitude of load to be interrupted. These rates are designed to be very economical with savings of about 20 to 40 %, to encourage consumers to participate. The consumer response has been positive.

- T & D Loss Reduction

SOYLAND POWER will increase its efforts to promote loss reduction projects to its members cooperatives. The loss reduction will be accomplished through use of low-loss transformers, loss evaluation, phase balancing, re-conductoring re-phasing re-building power factor improvement through capacitor applications & optimization, substation additions, regulator applications, and other projects.

- Power supply-side efficiency improvements

Increase in Nuclear Utilization at Clinton
Nuclear generation emits no CO₂ thus increasing nuclear generation provides CO₂ emission offset by replacing fossil generation. Every effort is being made with the operating partner, Illinois Power, to improve the availability and annual capacity factor of the Clinton unit. SOYLAND POWER' s goal is to achieve unit capacity factor of 92.4 % in non- refueling years, and unit capacity factor of 82.0 % in refueling years. Such improvement will be achieved by better planning and a commitment to a "do it once and do it right" approach during all outages and repair cycles, whether planned or unplanned. Refueling outages have been improving from the initial outages by reduced length and improved quality of these outages. Future outage lengths will be further curtailed by improved work processes, developing new techniques, and eliminating unnecessary activities. The target for Equivalent Forced Outage Rate (EFOR) is <4 % by 1995 and Duration of refueling outages to 40 days by Year 2000. The refueling cycle is of 18 months duration.

Improvement of Heat Rate at Pearl
The Pearl Generating Station gross heat rate in 1994 was 11,643 BTU/kWh. The unit is rated at 850 psig and 900 degrees F. SOYLAND POWER's goal is to improve the heat rate by (3%) to 11,294 BTU/kWh in 1996, by improving the combustion efficiency in two steps. The burners will be revised for improved air-flow and mixing of fuel. This step will be followed by fine tuning the combustion process.

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