Climate Challenge Participation Accord

DOE's Energy Partnerships for a Strong Economy

This Participation Accord describes the commitments that Union 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.

Union Electric Company's corporate offices are in St. Louis, Missouri. The company serves 1.2 million customers in a 24,500 square mile area in Missouri and Illinois. Seventy percent of the electricity is generated by coal, twenty-five percent by nuclear, and five percent by hydro. Oil and gas produces only a fraction of a percent of the generation.

I. Utility Commitments

A.
Consistent with paragraph II.B.1 of the Climate Challenge Program MOU, Union Electric Company has undertaken or will undertake the following programs defined in paragraphs II.B.1.(a), and II.B.1.(f) of the Climate Challenge Program MOU to reduce or avoid emissions of greenhouse gases.

Although each project has been carefully considered and best efforts have been made to estimate the effects on greenhouse gas emissions, conditions could change that would result in new projects being added or existing projects being deleted or modified, altering those estimates.

Program Description
Combined, the projects described below are expected to avoid emissions of about three million short tons of carbon dioxide per year in year 2000. In addition, about seven million dollars will be invested in industry initiatives and the Corporate GreenLeaf program.

II.B.1.(a) - Contributions to industry initiatives.
1.
EnviroTech Fund - $5 Million.

2.
National Earth Comfort Program - $50,000 per year through year 2000.

3.
EV America - Purchase five units per year through year 2000.

II.B.1.(f) - Undertake specific projects or actions, or make specific expenditures.

1.

Corporate GreenLeaf Program - Contribute $100,000 per year through year 2000 to organizations involved in urban forestry projects.

2.
Increase nuclear plant generation.
The Company has taken twenty specific actions during the period 1991-1994 and has identified seventeen additional actions that are planned to be undertaken during the period 1995-2000 that have contributed to or will contribute to increasing generation of the Callaway power plant and reduce carbon dioxide emissions.

It is estimated that about 2,062,000 short tons of carbon dioxide emissions will be avoided in year 2000 from these actions.

Examples of actions taken during the period 1991-1994 include:

Installation of a permanent reactor cavity shield sealring.

Installation of LEMO connector replacement for the in-core thermocouples located in reactor vessel head area.

Replacement of feedwater flow venturis.

Installation of overspeed trip test switch for main feedwater pump.

Modification of the main feedpump turbine speed control.

Modification of cooling tower spray distribution.

Examples of actions planned to be undertaken during the period 1995-2000 include:
Installation and modification of supports to replace steam generator hydraulic snubbers. Modification of safety related instrument power supply.

Replacement of low pressure heaters.

Installation of test points to digital rod position indication power supplies.

Installation of supports to replace mechanical snubbers on piping systems.

3.
Demand side management program.

Under a program initiated in 1992, the Company will continue to design and implement demand-side management projects to improve efficiency. Projects that are cost-effective will be converted to full-scale customer service programs.

It is estimated that 666,000 short tons of carbon dioxide will be avoided in year 2000.

4.
Flyash substitution for cement.
During 1995, the Company will complete construction of a dry flyash collection system at its Labadie plant (including silos, scales, and samplers) and market flyash directly or through a private company for use in cement.

It is estimated that carbon dioxide emissions avoided in year 2000 will be 135,000 short tons.

5.
Upgrade power plant controls.
The Company plans to upgrade the generating unit control systems at the Meramec and Sioux plants to digital control systems, and install other components such as feedwater valves, fan dampers, mill exhauster drives, variable speed drives on coal feeders, and related instrumentation. It is estimated that 85,000 short tons of carbon dioxide emissions will be avoided in year 2000.

6.
Green Lights
In 1993 the Company initiated the EPA Green Lights program. A survey is underway to determine which lighting fixtures can be cost-effectively replaced with more efficient fixtures. Replacement of existing fixtures will begin in 1996, and the program is expected to be completed in 1999.

The Company estimates 57,000 short tons of carbon dioxide emissions will be avoided in year 2000.

7.
Street Light conversion.
The company began a program in 1991 to replace about 9,500 mercury-vapor street lights each year with more efficient high-pressure sodium-vapor lights. These efforts are currently concentrated in the St. Louis metropolitan area but will eventually include the entire service territory.

It is estimated that 32,000 short tons of carbon dioxide emissions will be avoided in year 2000.

8.
Transformer replacement.

Transformers removed for repair or replacement that are 25 years old or older will be replaced with more efficient transformers. An average of about 4,000 transformers per year are expected to be replaced.

It is estimated that 29,000 short tons of carbon dioxide emissions will be avoided in year 2000.

9.
Light weight rail cars.
Purchase a total of 2,020 aluminum, light weight, coal cars during the years 1991 through 2000 instead of heavier steel cars. This will increase the tons of coal hauled by each train from the western mines and reduce by about sixty-six the number of round trips each year.

It is estimated the reduction in fuel used to transport coal will result in avoiding about 17,000 short tons of carbon dioxide emissions in year 2000. Emission reductions will be determined using information on fuel savings developed by the railroad operator.

10.
Adjustable speed drives.
In 1992 the company completed replacement of fixed speed drives on two induced draft fans at the Sioux power plant with variable speed drives.

It is estimated the use of more efficient drives will result in avoiding about 12,000 short tons of carbon dioxide emissions in year 2000

11.
Landfill gas energy conversion.
In 1991, the Company entered into an agreement and began to purchase electrical energy generated from landfill methane.

The Company estimates emissions avoided will increase from 3,000 short tons of carbon dioxide and 2,000 short tons of methane in 1991 to 8,000 short tons of carbon dioxide and 5,500 short tons of methane in year 2000.

12.
Replace motor-generator sets with solid-state exciters.
In 1994, motor-generator sets that provide excitation current to the main generators at the Sioux plant were replaced with solid-state systems that operates at a much higher efficiency.

It is estimated that 6,000 short tons of carbon dioxide will be avoided in year 2000.

13.
Waste oil heat recovery.
Waste mineral oil recovered from a transformer rebuilding facility will be used to replace coal in a power plant boiler.

This program is estimated to avoid 3,000 short tons of carbon dioxide emissions in year 2000.

14.
Power plant lighting upgrade.
Lighting fixtures in the Meramec power plant were replaced with more efficient fixtures in 1992 and 1993.

This program will avoid about 3,000 short tons of carbon dioxide emissions in year 2,000.

15.
Subtransmission circuit replacement.
For selected subtransmission circuits replacement projects the Company uses larger conductors to reduce line losses. During the period 1991 through 1994, six projects were completed. Nine additional projects have been identified to be undertaken during the period 1995 through 1999.

This program is estimated to avoid emissions of about 1,500 short tons of carbon dioxide in year 2000.

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

C.
Union Electric Company will confer with DOE on or before July 1, 1997, to evaluate jointly the progress of Union 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 Union Electric Company will be Jerrel D. Smith, 1901 Chouteau Avenue, St. Louis, MO 63103. Union 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 Union 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 Union Electric Company 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 Union Electric Company for purposes of addressing Climate Challenge Program issues, it will provide notice to Union Electric Company.

C.
DOE will provide an annual report to Union 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 Union Electric Company, will be:
Mr. Allan A. Hoffman
United States Department of Energy
1000 Independence Avenue, N.W.
Washington, D.C. 20585
Telephone: 202/586-1786

DOE agrees to notify Union Electric Company 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 Union 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 Union 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.

    (Original signed by)                        (Original signed by)
__________________________________        __________________________________
           Donald E. Brandt                Secretary of Energy or designee
        Senior Vice President                U.S. Department of Energy
       Union Electric Company


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           Date                                          Date

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Lawrence.Mansueti@hq.doe.gov