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Climate Challenge Participation Letter

DOE's Energy Partnerships for a Strong Economy

Climate Challenge Participation Accord
between
United States Department of Energy
and
United Power Association


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", Attachment A to this Participation Accord).

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

United Power Association (UPA) is a wholesale supplier of electricity and related services in the five state region of Minnesota, Wisconsin, North and South Dakota, and Iowa. The organization's headquarters are located on the outskirts of the Minneapolis/St Paul metro area in the city of Elk River, Minnesota. UPA's primary sources of energy are lignite coal, refuse derived fuel, and oil. UPA is owned by an association of 15 consumer-owned electric utilities in Minnesota and western Wisconsin. These 15 utilities have an ownership interest in and receive bulk electric power from UPA. Based on the ownership and power supply relationship with UPA, these utilities which are listed in Attachment B have agreed to participate in the Climate Challenge Program through UPA. UPA is a member of the Mid-Continent Area Power Pool (MAPP).

I. United Power Association Commitments

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

        1. Fuel Cells:
        UPA is heavily involved in fuel cells, including a landfill gas demonstration, ethanol research (through NRECA) and actual commercialization. Fuel cells are significantly more efficient and emit less CO2 than conventional sources of generation. Fuel cells may play a significant role in UPA's energy resources.

        2. Demand Side Management Programs:
        Between 1991 and the year 2000, UPA and its 15 member distribution systems have implemented and will continue to support a variety of demand- side management programs. Greenhouse gas emission reductions within each program type are projected as follows, in tons of CO2 per year for the Year 2000:
                                                Protected

            Conservation Improvement       17,000
            Load Management                34,000
            Ground Source Heat Pumps       34,000
                 Total                     85,000
        3. Fossil-fueled Generating Station Heat Rate Improvement Projects:
        Heat rate improvements at the Coal Creek Station generating facility will avoid the emission of approximately 605,771 tons of CO2 in 2000. These heat rate improvements include:

        • L-0 buckets which will avoid the emission of approximately 95,447 tons of CO2 in 2000.
        • Fan improvements which will avoid the emission of approximately 208,906 tons of CO2 in 2000.
        • Cooling tower improvements which will avoid the emission of approximately 7,631 tons of CO2 in 2000.
        • Controls upgrade improvements will avoid the emission of approximately 95,447 tons of CO2 in 2000.
        • Simulator improvements will avoid the emission of approximately 28,630 tons of CO2 in 2000.
        • Ultrasonic and helium leak detection improvements will avoid the emission of approximately 95,447 tons of CO2 in 2000.
        • Ventilation improvements will avoid the emission of approximately 8,021 tons of CO2 in 2000.
        • Compressed air improvements will avoid the emission of approximately 3,247 tons of CO2 in 2000.
        • Variable packing in turbine improvements will avoid the emission of approximately 62,995 tons of CO2 in 2000.

        Coal Creek Station is jointly owned by UPA and Cooperative Power (OP). UPA's share of total CO2 avoidance resulting from heat rate improvements at Coal Creek Station is 44% or approximately 266,000 tons of CO2 in 2000.

        4. Coal Ash Programs:
        Coal ash utilization displaces the use of cement and other materials. Less energy is used and greenhouse gas emissions are avoided. The Coal Creek Station recycled over 63,000 tons of coal ash in the baseline Year 1990. Coal Creek Station will continue to recycle fly ash to the extent that this remains feasible. The projected 150,000 tons of Coal Creek ash recycling in the Year 2000 corresponds to avoidance of approximately 72,000 tons of CO2 in the Year 2000. Coal Creek Station is jointly owned by UPA and OP. UPA's share (44%) of total CO2 avoidance resulting from coal ash utilization is estimated at 32,000 tons of CO2 in the Year 2000.

        5. Efficiency Improvements at Stanton Generating Station:
        UPA owns and operates the Stanton Station steam electric generating station. This facility is presently fueled with North Dakota lignite. Replacement of turbine blades and other improvements which were completed in 1993 have resulted in an efficiency increase of about 1 %. This is estimated to result in the avoidance of approximately 13,000 tons of CO2 per year in the Year 2000. UPA will continue to explore ways to improve the efficiency of Stanton and will implement those that are cost effective.

        6. EPRI Membership:
        UPA annually contributes in excess of $700,000 to the Electric Power Research Institute. This money funds research relating to the generation, transmission, and use of electricity. A significant portion of that research involves efforts to improve energy efficiency in all electricity-related processes from generation through consumer end use. UPA is committed to continued participation in this research.

        7. Refuse-Derived Fuel:
        UPA owns and operates the Elk River Station steam electric generating station which is fueled solely with refuse-derived fuel (RDF or processed garbage). CO2 is avoided by not burning coal, and methane gas is avoided by not landfilling the raw garbage. At this time an estimate of the greenhouse gases mitigation is not available.

        8. Wind Resource Assessment:
        UPA is in a partnership with other utilities and EPRI to financially support and manage a program to assess wind resources in North Dakota. UPA will use the results of this program in considering participation in future wind resource development. These activities may contribute to a more energy efficient mix of generation sources in the future. A projection of CO2 mitigation in the Year 2000 is not available at this time.

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

    C.

      UPA will confer with DOE no later than October 31, 1996 regarding UPA's participation in the Climate Challenge Program. The purpose of such meetings will be to evaluate UPA's progress towards achieving its 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 UPA will be James F. Eggen, Manager, Environmental Services Department, United Power Association, 17845 Highway 10 East, Elk River, MN 55330. UPA will notify DOE prior to, or in any event, no later than 30 days after any change in this assignment.

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 representative for DOE will be Mr. Larry Mansueti, Director, Climate Challenge Program, Office of Utility Technologies (EE-10), US Department of Energy, 1000 Independence Avenue, S.W., Washington, DC 20585, (202) 586-2588. DOE will notify United Power Association prior to, or in any event, no later than 30 days after any change of this assignment.

    C.

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

    E.

      To the extent permitted by applicable law and regulations and by the availability of funds, DOE will consider UPA'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 UPA under this Participation Accord.

    F.

      DOE agrees to provide public recognition to UPA 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 UPA.

III. General Provisions

    A.
      Use of any DOE-developed materials by UPA will be governed by the provisions of section IV of the Climate Challenge MOU.

    B.

      In addition to the foregoing provisions, DOE and UPA 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



UNITED POWER ASSOCIATION

(Original signed by)
Antone Rude
Executive Vice President
& General Manager

Attachments:

    Attachment A - Climate Challenge Program MOU and Exhibits
    Attachment B - Distribution Cooperatives Which Are Participating in the Climate Challenge Program Through United Power Association

Attachment B

Distribution Cooperatives Which Are Participating in the Climate Challenge Program Through United Power Association. These are the 15 member-owners in the UPA system:

Anoka Electric Cooperative
Anoka, Minnesota

Arrowhead Electric Cooperative, Inc.
Lutsen, Minnesota

Carlton County Cooperative Power Association
Kettle River, Minnesota

The Cooperative Light & Power Association of Lake County
Two Harbors, Minnesota

Crow Wing Cooperative Power and Light Company
Brainerd, Minnesota

Dairyland Electric Cooperative, Inc.
Grand Rapids, Minnesota

East Central Electric Association
Braham, Minnesota

Head of the Lakes Electric Cooperative
Superior, Wisconsin

Itasca-Mantrap Co-op. Electrical Association
Park Rapids, Minnesota

Kandiyohi Cooperative Electric Power Association
WilImar, Minnesota

Mille Lacs Electric Cooperative
Aitkin, Minnesota

North Itasca Electric Cooperative, Inc.
Bigfork, Minnesota

North Pine Electric Cooperative, Inc.
Finlayson, Minnesota

Northern Electric Cooperative Association
Virginia, Minnesota

Wright-Hennepin Cooperative Electric Association
Maple Lake, Minnesota



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