Climate Challenge Participation Accord

DOE's Energy Partnerships for a Strong Economy

Western Resources, Inc. is a diversified energy company. Its utilities, operating in Kansas and Oklahoma, provide natural gas service to approximately 650,000 customers and electric service to approximately 600,000 customers. The company's corporate offices are located in Topeka, Kansas. Western Resources' net electric generating capability is approximately 5,000 megawatts, with a system peak of 4,000 megawatts. Generating fuel mix shows that 79% of the company's electricity is produced from coal (predominately low sulfur western coal), 17% nuclear power and approximately 4% from natural gas. The economy of our service area is based primarily in agriculture, mineral production, aircraft and vehicle manufacturing and related industries. The company employs approximately 4,200 employees.

This Participation Accord describes the commitments that Western Resources, Inc. (WRI) 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. WRI Commitments

A.
Consistent with paragraphs II.B.1.a and II.B.1.f of the Climate Challenge Program MOU, WRI will undertake specific projects or actions, or make specific expenditures on projects or actions, to reduce greenhouse gas emissions.

In order to achieve the commitment(s), WRI will undertake the following projects and actions:

Existing Actions and Achievements Since January 1991 to Reduce Emissions

• WRI has undertaken generation efficiency improvement projects at its generating stations including heat rate improvements, station power reduction projects, and other efficiency projects. These improvements will result in an estimated reduction in CO₂ emissions in the year 2000 of 177,860 metric tons.

• WRI has undertaken improvements in its natural gas transmission and distribution system to reduce gas losses and methane emissions. These improvements will result in an estimated reduction in equivalent CO₂ emissions in the year 2000 of 136,090 metric tons based on a methane global warming potential factor of 24.5.

• WRI has increased capacity at its Wolf Creek Nuclear Generating Station that will result in an estimated reduction in CO₂ emissions in the year 2000 of 92,310 metric tons.

• WRI has undertaken improvement projects on its transmission and distribution system to reduce losses including replacement of low efficiency transformers and installation of distribution capacitors. These improvements will result in an estimated reduction in CO₂ emissions in the year 2000 of 6,370 metric tons.

• WRI has undertaken electrotechnology marketing programs to encourage installation of energy efficient electrotechnology applications. WRI has experience with a number of electrotechnology applications including electric paint/ink drying, ultraviolet (UV) disinfection, electric arc furnaces, infrared drying/heating, induction heating, air strippers for VOC remediation, plasma welding, ozone disinfection, and robotics. These electrotechnology marketing programs will result in a reduction in end use energy usage and an estimated reduction in CO₂ emissions in the year 2000 of 18,995 metric tons.

• WRI has undertaken demand-side management (DSM) programs to encourage energy efficiency and conservation. WRI's primary DSM program targeted at energy conservation is the Conservation Use Rate, a special residential rate schedule designed to encourage energy conservation during the peak summer months. WRI has also established customer education programs to pursue energy efficiency and conservation objectives. These DSM programs will result in a reduction in energy usage and an estimated reduction in CO₂ emissions in the year 2000 of 10,310 metric tons.

• WRI has undertaken investments in alternative fuel vehicles including compressed natural gas vehicles. These investments will result in an estimated reduction in equivalent CO₂ emissions in the year 2000 of 22 metric tons.

• WRI has undertaken to install renewable resources in its system consisting of photovoltaic units. WRI's photovoltaic installations include the development of a 4.5 kW Alternative Energy Farm demonstration project located near Salina, Kansas. These renewable resources will result in an estimated reduction in CO₂ emissions in the year 2000 of 14 metric tons.

• WRI is undertaking carbon offset activities to sequester CO₂ emissions including tree planting and transmission right-of-way management practices. These activities will result in a minor reduction CO₂ emissions in the year 2000.

• WRI is participating in the International Utility Efficiency Partnership Program through a initial contribution of $20,000. The estimated CO₂ emissions reduction credit has not yet been determined for this program.

• WRI is participating in the Utility Forest Carbon Management Program through a initial contribution of $5,000. The estimated CO₂ emissions reduction credit has not yet been determined for this program.

• WRI is participating in the National Earth Comfort Program through an in-kind personnel contribution. The estimated CO₂ emissions reduction credit has not yet been determined for this program.

Planned Actions to Reduce Emissions
• WRI plans to undertake further generation efficiency improvement projects at its generating stations including heat rate improvements, station power reduction projects, and other efficiency projects. These improvements will result in an estimated reduction in CO₂ emissions in the year 2000 of 445,970 metric tons.

• WRI plans to undertake further electrotechnology marketing programs to encourage installation of energy efficient electrotechnology applications. As noted, WRI has experience with a number of existing electrotechnology applications and will continue to evaluate new alternative applications. These electrotechnology marketing programs will result in a reduction in end use energy usage and an estimated reduction in CO₂ emissions in the year 2000 of 34,555 metric tons.

• WRI will undertake further improvements in its natural gas transmission and distribution system to reduce gas losses and methane emissions. These improvements will result in an estimated reduction in equivalent CO₂ emissions in the year 2000 of 20,790 metric tons based on a methane global warming potential factor of 24.5.

• WRI plans to install natural gas fired resources to meet its supply side capacity needs prior to 2000. This investment and change in fuel usage will result in an estimated reduction in CO₂ emissions in the year 2000 of 17,280 metric tons.

• WRI plans to undertake further improvement projects on its transmission and distribution system to reduce losses including replacement of low efficiency transformers and installation of distribution capacitors. These improvements will result in an estimated reduction in CO₂ emissions in the year 2000 of 9,560 metric tons.

• WRI will undertake further investments in alternative fuel vehicles including compressed natural gas vehicles. These investments will result in an estimated reduction in equivalent CO₂ emissions in the year 2000 of 158 metric tons.

• WRI plans to undertake further installations of renewable resources in its system consisting of photovoltaic units. These renewable resources will result in an estimated reduction in CO₂ emissions in the year 2000 of 7 metric tons.

• WRI plans to undertake further participation in the following industry initiatives. The estimated CO₂ emissions reduction credit has not yet been determined for these programs.
  - International Utility Efficiency Partnership Program
  - Utility Forest Carbon Management Program
  - National Earth Comfort Program
  - Envirotech Program

WRI's Total Projected Greenhouse Gas Emissions Reduction

• As a result of WRI's existing and planned emissions reduction projects and actions, WRI estimates a total projected reduction of 970,291 metric tons of CO₂ and equivalent emissions in the year 2000 and a cumulative reduction of 5,468,111 metric tons for the period 1991 to 2000.

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

C.
WRI will confer with DOE on or before May 31, 1997 to evaluate jointly the progress of WRI in achieving its Climate Challenge Program goals and to discuss possible adjustments to its voluntary commitments.

D.
The Climate Challenge Program representative for WRI will be Wayne A. Kitchen, Director of Environmental Services and Industrial Hygiene, 818 Kansas Avenue, Topeka, Kansas. WRI 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 WRI 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 WRI 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 WRI for purposes of addressing Climate Challenge Program issues, it will provide notice to WRI.

C.
DOE will provide an annual report to WRI 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 WRI, will be Allan Hoffman, Department of Energy, Room 6B-128 (EE-10), 1000 Independence Avenue SW, Washington DC 20585, (202) 586-1786. DOE agrees to notify WRI 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 WRI 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 WRI 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.

Western Resources, Inc
KPL
Gas Service
KG& amp;E

_______________________________ [date]

(Original signed by)
________________________________________
Secretary of Energy
U.S. Department of Energy

_______________________________ [date]

Attachment A -- Climate Challenge Program MOU and Exhibits
Attachment B -- Summary of WRI's Estimated Emissions Reduction Activities -Table
Attachment C -- Summary of WRI's Estimated Emissions Reductions - Graph

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