Climate Challenge Participation Accord

DOE's Energy Partnerships for a Strong Economy

This Participation Accord describes the commitments that Wisconsin Public Service Corporation (WPSC) 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).

WPSC is a combined electric and gas utility serving 400,000 customers in Northeastern Wisconsin and parts of Michigan's Upper Peninsula. An involvement in a voluntary program to reduce emissions is consistent with the company's Vision, "People Creating the World's Premier Energy Company", and with the Environmental Excellence Program which is part of WPSC's strategic initiative. As a result, WPSC is looking forward to a productive association with the Department of Energy in this cooperative effort to reduce or sequester greenhouse gases.

I. Utility Commitments

A.
Consistent with paragraph II.B.1(d) of the Climate Challenge Program MOU, Wisconsin Public Service Corporation will reduce carbon dioxide (CO₂) emissions by a total of 1,750,000 (short tons) of CO₂ for the years 1991 through 2000. This reduction is measured by comparing projected WPSC emissions in 1991-2000 in the absence of the activities listed below with estimated WPSC emissions if the activities listed below are included in the same years. WPSC emissions encompass all of its generation and all of its ownership share of co-owned generation.

In order to achieve the commitment(s), WPSC will institute and/or continue the following programs:

WPSC will continue its aggressive Demand Side Management program which includes programs in the Industrial, Commercial, Agricultural, and Residential sector. These are detailed in the utility's most recent State of Wisconsin Advance Plan 7 filing. The effectiveness of these programs is verified in various reports to the Wisconsin Public Service Commission and are available for public inspection.

WPSC will continue the ongoing efforts that will have a direct result in reductions of GHG's in the other aspects of its business.

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Supply Side Programs Which Include:

Fossil plant heat rate improvements
Distributed control system upgrades
Increased natural gas capacity
Nuclear plant extended fuel cycle (12-18 months)
Hydroelectric efficiency improvements
T&D system improvements
Photovoltaic installations
Wind projects (10 MW projected in 2000)
Landfill gas utilization (3 MW projected)

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Miscellaneous Projects

Participation in EPA's Green Lights Program
Participation in EPA's Gas Star Program
Fly ash recycling in the cement market and other projects

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Forestry Management

This includes tree planting and enhanced land management on the 20,000 acres owned by WPSC, most of which are forested properties.

At this time, an estimate for sequestration of carbon as a result of forest management programs is unavailable. These will be reported via section 1605(b) and, if significant, WPSC will amend its plan after consultation with the DOE.

The successful implementation of these programs is expected to avoid 1,300,000 tons of CO₂ for the period 1995-2000. Implementation of these programs have already resulted in a reduction of 450,000 tons of CO₂ for the years 1991-1994.

Emissions in the year 2000 are expected to be approximately 458,000 tons of CO₂ less than what could be if these programs are not implemented.

Other GHG's have been and will continue to be avoided by these programs as well. It is estimated that approximately 56 tons of N₂O and 69 tons of CH₄ will be avoided during the time frame 1995-2000.

Consistent with paragraph II.B.1.a. of the Climate Challenge Program MOU, WPSC will support the industry initiatives identified as the "International Utility Efficiency Partnership" (IUEP) and the "Utility Forest Carbon Management Program" (UFCMP). The commitment to these programs is defined as follows:

WPSC has contributed $20,000 to the IUEP as a charter member for the year 1995 to help EEI and the industry develop this initiative into an effective program. At this time some level of in kind assistance will be given in the form of participation by WPSC staff, however, the level is contingent on the progress of the development of the initiative.

WPSC has contributed $5,000 to the UFCMP as a charter member for the year 1995. In addition, WPSC staff will be participating in the development of this initiative and expects to continue on a sustaining level (e.g. $5,000 per year) through the year 2000 assuming the direction of the initiative is consistent with the goals of WPSC. The "in kind" contribution will be by staff professionals on a developmental effort for the initiative. WPSC will decide if further participation in the programs developed within this initiative is warranted at the time of their development.

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

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

D.
The Climate Challenge Program representative for WPSC will be Edward N. Newman, Director - Environmental Services, Wisconsin Public Service Corporation, 700 North Adams Street, P. O. Box 19002, Green Bay, WI 54307-9002. WPSC 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 WPSC 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 WPSC'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 WPSC for purposes of addressing Climate Challenge Program issues, it will provide notice to WPSC.

C.
DOE will provide an annual report to WPSC 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 WPSC, will be Allan Hoffman, Department of Energy, Room 6B 128 (EE-10), 1000 Independence Avenue SW, Washington, DC 20585, telephone number (202) 586-1786. DOE agrees to notify WPSC 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 WPSC 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 WPSC 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 sigend by)
_____________________________________  __________________
Daniel A. Bollom                       Date
President and Chief Executive Officer
Wisconsin Public Service Corporation


     (Original sigend by)
_____________________________________  __________________
Secretary of Energy or designee        Date
U. S. Department of Energy

Attachment A -- Climate Challenge Program MOU and Exhibits

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