Climate Challenge Participation Accord

DOE's Energy Partnerships for a Strong Economy

This Participation Accord describes the commitments that Tampa Electric Company 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. Utility Commitments

A.
Consistent with paragraph II.B.1.a. of the Climate Challenge Program MOU, Tampa Electric Company will make a specified contribution to particular industry initiatives identified in Exhibit A, "Industry Programs." The industry initiatives that Tampa Electric has made contribution to are:

1)

The Forest Carbon Management Program

In 1994 the Company paid its $5,000 fee for membership in the Forest Carbon Management Program. The Company has had active involvement in the development of the program being a member of both the policy and steering committees. Although the Company at this time cannot commit to contributing additional funds, we will continue to track the program and decide on our level of participation when programs are offered to the members.

2)
The Earth Comfort Geothermal Heat Pump Program

Tampa Electric Company is an active member of the Geothermal Heat Pump Consortium and has committed to contributing $50,000 a year for the next five years. Details of the consortium can be found in Attachment B.

In addition, consistent with paragraph II.B.1.f., Tampa Electric Company will undertake specific projects or actions, or make specific expenditures on projects or actions, to reduce greenhouse gas emissions. The projects or actions that the Company will undertake or make specific expenditures to include:
• Supply-Side Programs:
  • Participation in a Clean-Coal Technology Project

    The Company currently has under construction a 260 MW power station which is being partially funded under DOE's Clean Coal Technology program. The Polk Power Station Unit #1, which is expected to be completed in late 1996, will demonstrate a new method of coal gasification that should result in increased efficiencies. The unit, an integrated gasification combined cycle (IGCC) unit, is expected to produce up to 25 percent more electricity from burning the same amount of coal than a conventional plant. Tampa Electric Company is committed to work with DOE to demonstrate this technology. If successful, the technology will be marketed by a subsidiary of TECO Energy, the holding company of Tampa Electric Company.

  • Co-Generation Projects

    Tampa Electric Company serves a number of large industrial customers which currently have co-generation facilities installed. These include phosphate plants, incinerators, orange juice plants, etc. The Company’s co-generation department works with these customers to purchase their excess power or to provide wheeling services to their buyers. The Company has been able to avoid 302 MW of new generation due to the installation of co-generation facilities within our system. New facilities will increase the avoided capacity to 326 MW by the year 2000. Another 237 MW is installed within our system and sold to other utilities. The Company will continue to evaluate co-generation projects which fit our needs and economic requirements.

  • Steam Plant Heat Rate Improvements

    In 1994 the Company replaced the steam turbines on Units 1 and 2 at Big Bend Station. This not only increased the reliability of the units, but the efficiency was also increased by 1.9 percent. A third turbine on Unit 6 at Gannon Station is scheduled for replacement in 1996. The Company will consider other projects to improve heat rate.

  • T & D System Line Loss Improvements

    Tampa Electric Company is committed to reducing line losses through system planning, engineering, and operations. A number of methods are utilized both on the transmission and distribution systems.

    On the transmission system, the Company builds new transmission lines as a part of its capital construction program. These lines not only serve to provide needed capacity for the transmission system but also serve to relieve current loading on existing lines, thereby lowering losses. The Company also transposes phase conductors when constructing transmission lines to better balance the phase currents. This reduces the electromagnetic fields (EMF) surrounding the lines.

    The Company also has a systematic transmission line voltage increase program for sub-transmission systems that require additional capacity. The voltage conversion program decreases the amount of current required to meet a given amount of electrical load. This decrease in line current reduces losses. Another method used is the regulation of VAR (Volt Amp Reactive) flow to maintain proper transmission system voltage. The Company’s main vehicles to accomplish this are transmission capacitor banks and power plant VAR production in excess of that required to meet reactive load. Maintaining voltage at proper levels reduces line current flow and therefore decreases losses.

    In planning the expansion of the distribution system, the Company works to minimize losses by placing substations close to the load centers and pursuing cost-effective direct transmission routes. Larger conductors are selected to cost effectively reduce line resistance, reduce the line current required to deliver power, and to maximize voltage. The Company is also in the process of phasing amorphous-core line transformers into its inventory to reduce losses on the distribution system. However, losses are still prevalent and are reduced by careful planning and placement of capacitor banks close to loads that create reactive power loss. This reduces the total current in the line, thus reducing the overall line losses. Capacitors are also controlled (opened and closed on the line), to compensate for the changing load, by an automated system that measures the line reactance. Operation also occurs from time of day settings that are programmed into the control devices. The Company is committed to continuing to evaluate methods to increase efficiency and reduce line losses.

• Demand-Side Management Programs:

  Tampa Electric Company has effective demand-side management programs that are reviewed and approved by the Florida Public Service Commission. The current programs include heating and cooling, ceiling insulation, duct repair, commercial lighting and conservation value. More detail can be found in Attachment C. Tampa Electric Company will continue to consider cost-effective DSM programs in the future.

• Projects to Promote Electrotechnologies:
  • Electric Technology Resource Center

    Tampa Electric Company is establishing an Electric Technology Resource Center, to be completed in early fall, 1995. The Center will be housed in a 10,000-square foot facility located on the campus of the University of South Florida in Tampa, Florida. The Center will serve as a showcase for manufacturers who wish to reach not only the Tampa Electric commercial customer audience, but other businesses that will use the Center as a laboratory for identifying and implementing electric technologies. A geothermal heat pump unit will be installed at the Center and will be one of the featured electric technologies to be showcased and demonstrated. Additional details are available in Attachment D.

  • Electrotechnology Promotionals

    Tampa Electric Company has promoted electrotechnology through several promotionals including distribution of "The Clean Switch" catalogue, the free trade-in of 100 gas mowers for cordless electric mowers and the free trade-in of 500 charcoal and gas grills for electric grills. The Company will continue to look for opportunities to promote electrotechnology.

• Waste Minimization Projects:
  • Recycling

    Tampa Electric Company has an established recycling/reuse program. Items recycled include: aluminum cans, cardboard, lead acid batteries, office paper, newspaper, scrap metal, toner cartridges, transformers, wood poles and crossarms, wood pallets, and tires. In addition, the Company operates a solvent distillation process to reclaim and reuse paint solvent from paint waste. The Company will continue to evaluate additional recycling opportunities.

  • Utilization of Coal Combustion By-Products

    Tampa Electric Company has successfully developed markets for all coal combustion by-products produced by the Company. In 1994, the Company sold 327,985 tons of fly ash, 53,544 tons of bottom ash, 179,902 tons of slag and 379,620 tons of gypsum. No combustion by-products were disposed of as solid waste. The Company will continue to explore markets for its combustion by-products to assure that it is fully utilized.

  • Recovery and reuse of used oil

    During 1993, Tampa Electric Company collected and burned 295,000 gallons of used oil. This not only kept the oil from having to be disposed of as a waste, but also displaced approximately 1,400 tons of coal. The Company is committed to continuing to recover its used oil as part of its wast minimization program.

B.

Tampa Electric Company 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 Tampa Electric Company prior to its becoming a participant in the Program, expressed on an annual basis to the extent possible.

C.
Tampa Electric Company will confer with DOE on or before February 1, 1997 to evaluate jointly the progress of Tampa Electric Company in achieving its Climate Challenge Program goals and to discuss possible adjustments to its voluntary commitments.

D.
The Climate Challenge Program representative for Tampa Electric Company will be:
Laura A. Rector
Environmental Planning
Tampa Electric Company
P.O. Box 111
Tampa, FL 33601
Fax: (813) 228-4881

Tampa Electric Company agrees to notify DOE prior to or, in any event, no later than 30 days after any change in the contact.

A.
DOE's commitments to Tampa Electric Company 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 Tampa Electric Company's 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 Tampa Electric Company for purposes of addressing Climate Challenge Program issues, it will provide notice to Tampa Electric Company.

C.
DOE will provide an annual report to Tampa Electric Company 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 Tampa Electric Company, will be:
Allan Hoffman
Department of Energy, Room 6B-128(EE-10)
1000 Independence Avenue S.W.
Washington, D.C. 20585
(202) 586-1786


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

A.
Use of DOE-developed materials by Tampa Electric Company 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 Tampa Electric Company 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.

________________________
Date

(original signed by) _______________________________
Secretary of Energy or designee
U.S. Department of Energy

________________________
Date

Attachment A - Climate Challenge Program MOU and Exhibits.
Attachment B - Details of the National Earth Comfort Program.
Attachment C - Details of the Demand-Side Management Program.
Attachment D - Details of the Electrotechnology Resource Center.

Increase the Geothermal Heat Pump unit sales from 40,000 to 400,000 and reduce greenhouse gas emissions by 1.5 million metric tons of carbon equivalents annually by the year 2000 through the replacement of emission producing heating and cooling systems with renewable energy technology.

Tampa Electric hosted the Geothermal Heat Pump Consortium meeting which was held on November 1, 1994, in Tampa, Florida. Tampa Electric Company is committed to contributing a sum of $50,000 a year for the next five years, and will be chairing the 1996 First Cost Committee. The objective of this committee is to improve GHP drilling technology installation procedures and practices in order to reduce costs by 25 to 50 percent, and to enhance GHP design to increase system performance and reduce equipment and operating costs.

The overall strategy of the National Earth Comfort Program is to selectively combine private and public sector interests and resources to systematically create volume - while leveraging technological, regulatory, and market pressures to drive down cost - both at the manufacturing and the retail levels. Volume also means that knowledge and awareness of the technology increases, resulting in greater consumer confidence.

A key component in the program development and implementation is increasing public awareness and education of the National Earth Comfort Program. Tampa Electric has been active in publishing geothermal heat pump informational and educational literature. A mailing was completed for all residential customers in Open Lines, an educational billing insert. Tampa Electric also purchased promotional ad space in a local newspaper and a trade journal.

CEILING INSULATION - An incentive program for achieving an efficient level of ceiling insulation in an existing residential structure.

DUCT REPAIR - An incentive program to encourage the repair of the air distribution system (ductwork and supporting structures) in a residence.

COMMERCIAL LIGHTING - An incentive program to encourage investment in more efficient lighting technology in existing commercial facilities.

CONSERVATION VALUE - An incentive program for commercial/industrial customers that encourages additional investments in substantial demand shifting or demand reduction measures not covered under other company DSM programs.

ENERGY REDUCTION FORECAST*

GWH**

    YEAR            H/C           INSUL          DUCT         LIGHTING         VALUE      
    1995            66              7              3              3              0        
    1996            70              8              4              4              0        
    1997            74              8              5              5              1        
    1998            78              8              6              6              1        
    1999            82              9              8              7              1        

* Demand and Energy Forecast

T. Moore 9/29/94

** Cumulative

The Center facility will include an advanced electric technology lab, commercial kitchen, lighting lab, technical library, electronic information network, teleconferencing center and training auditorium.

The Center will:

• Provide technology demonstration services and valuable product testing to commercial and industrial customers.

• Identify operational and environmental solutions for small and medium-sized businesses.

• Accelerate the market penetration of emerging energy efficient electric technologies.

• Research, identify and help customers secure available local, state and federal government funding for technology application.

• Shorten the cycle of commercialization of new electric technologies, so that businesses can start immediately to streamline their operations and generate greater profits.

• Demonstrate applications of electric technologies to potential users in a laboratory setting, outside of a retailer's influence where pressure to buy is always present.

• Provide a means for customers to try new electric technologies at little or no risk and create an impetus for them to make new technology installations by locating grants, identifying other funding sources, and offering financing programs with manufacturers and others.

• Serve as an electric technology information clearinghouse.

A geothermal unit will be installed at the Center and will be one of the featured electric technologies to be showcased and demonstrated.

Tampa Electric has an existing heat pump rebate program that entitles a customer replacing an existing HVAC unit with a high efficiency (SEER 11.0) heat pump to a $350 rebate. A customer purchasing a geothermal heat pump is also eligible to receive this rebate under the current program.

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