Climate Challenge Participation LetterDOE's Energy Partnerships for a Strong Economy
January 19, 1995
The Honorable Hazel O'Leary Re: Climate Challenge Program Participation Dear Secretary O'Leary: The Zeeland Board of Public Works, a municipally owned water and electric utility serving the City of Zeeland, Michigan and its surrounding community, hereby agrees to participate in the Department of Energy's Climate Challenge Program. Since Zeeland's electrical system provides service to only 3,450 customers, well below the 50,000 customer definition of a small municipal system, it is my understanding that this letter will serve as our agreement of participation in the Program in lieu of the necessary accords required of larger electrical utilities. The following list identifies the actions that our electric utility has taken since 1991, or will complete by the year 2000, to reduce greenhouse gas emissions. The associated option name and page numbers in parentheses following each item correlates to related descriptions contained in the Climate Challenge Options Workbook.
(Forestry Carbon Management Projects (pages 121-123)) Zeeland is one of many municipal electric utilities participating in an effort launched by the American Public Power Association (APPA) to plant approximately 16 million trees nationally, one for every public power customer. Locally, our utility has set a goal of 3,500 trees of various species, each 3-8 feet tall, to be planted by the year 2002. Since the program's inception in 1992, over 950 trees have been planted. Trees absorb carbon dioxide and, if planted in desirous locations, can reduce electrical usage by providing shade and acting as windbreaks.
(Compensation to Reduce Reactive Power Losses (page 97)) In 1991, the Zeeland Board of Public Works began an intensive multi-year electrical distribution system improvement program designed to upgrade the system's efficiency and reliability. Elements of the program include a conversion of the system's older, less efficient 2.4 KV circuits to 12.5 KV, construction of several remote substations to reduce circuit lengths, transformer analysis and replacement, streetlight replacement, distribution system automation and SCADA control, and capacitor installation. Although the primary reasons for our aggressive construction efforts have been to provide additional capacity to meet the area's growing electrical demand and improve system reliability, our engineering design has also placed significant emphasis on loss reduction and system efficiency.
3.
(Increasing Transmission Line Voltage (pages 91-92)) Zeeland began construction of nearly 8 miles of 69 KV subtransmission and an additional 8 miles of 138 KV transmission lines in 1994. These projects will be completed in 1996 and will provide a significant reduction in future transmission losses when compared to our current system configuration. Again, our primary goal has been to provide the necessary power to a growing customer base, however, the significance of transmission loss reduction will continue to grow as our demand increases.
4.
(Demand-Side Management (DSM)-Industrial Programs (pages 16-19)) In 1993, Zeeland restructured its industrial electrical rates by shifting a significant portion of the costs from the energy charge to demand/capacity fees. In doing so, the Board established a substantial incentive for customers to perform demand side improvements. Since approximately 75% of Zeeland's usage is by the industrial sector (approximately 60% of the system's energy is consumed by our ten largest users), our efforts have concentrated on these customers. Although our utility has paid for no improvements directly, several of our largest customers have already undertaken demand side improvements including several completely automated load control systems. By working closely with these customers we have achieved a win-win situation for both the utility and the customer. Through continued meetings of an established Industrial Advisory Board made up of representatives of our largest users, continued DSM improvements are expected.
5.
(Management of Supply Assets to Reduce, Avoid, or Sequester Greenhouse Gases (pages 119-120)) Zeeland operates a 24 MW generating plant which contains seven internal combustion dual fuel (natural gas and diesel fuel) engines. During the five year period from 1986-1990, the plant produced nearly 200 million KWH. Although our units are predominantly powered by natural gas, resulting in relatively lower emissions of carbon dioxide (approximately 1,100 lbs/MWH compared to Michigan Emission Factor of 1,576 lbs/MWH)), annual emissions of NOx, SOx, VOCs, and TSP averaged over 600 tons per year and natural gas consumption exceeded 400,000 MCF annually. With the inception of the Michigan Public Power Agency (MPPA) Power Pool in 1992, whereby Zeeland's units are dispatched in coordination with 7 other municipal utilities' supply assets, and the addition of energy from Zeeland's entitlement share in Detroit Edison's Belle River Generating Facility, the usage of Zeeland's generating plant has been substantially reduced. From 1991 through 1994, Zeeland's plant generated approximately 80 million KWH, reducing its average annual emissions by nearly one-half. This change in operation has resulted in a reduction of local carbon dioxide emissions of approximately 11,000 tons annually, however, Zeeland has had to purchase power from other sources to replace energy it would have generated, and since these purchases were from various other sources, total carbon dioxide emissions reductions (if any) are difficult to quantify. Future usage of the facility will be based on a joint Power Pool IRP process which includes air emissions and other environmental considerations. Additionally, a program of scheduled inspections and maintenance has also been established since 1993 to ensure each engine at Zeeland's facility is operating as efficiently as possible and to ensure minimum emissions. The Zeeland Board of Public Works estimates the combination of actions 2-4 above will reduce annual emissions of carbon dioxide by 2,364 tons in the year 2000. These results are the expected differences between anticipated emissions without performing any of the above listed actions and those estimated after their completion with consideration given to projected demand increases. Zeeland's electrical demand is increasing at a relatively fast pace, therefore, emissions growth due to this increased usage is higher than the emission reductions achieved through our efforts. However, the growth in emissions would be substantially higher without taking these actions. We believe we have conservatively underestimated the overall effect of our program including only reductions that we can substantiate. Certain efficiency improvements and other DSM activities performed by customers may have been excluded since actual estimates were difficult to quantify. Tree planting carbon dioxide sequestration has not been estimated. Our tree program's details have been included on Attachment #1. Also, emission reductions due to the decreased use of the Zeeland Power Plant have not been included in our total estimate since energy from various other sources was purchased to replace the power not generated locally. We hereby agree to report annually, on forms provided by the Department of Energy/Energy Information Administration, on our progress and activities under the Climate Challenge Program. Enclosed is our Local Climate Challenge Program Summary which contains estimates of emission reductions anticipated through our proposed action plan. We look forward to working in cooperation with the Department of Energy in this worthwhile program. We also share in its objectives of performing responsible, voluntary actions which will result in a reduction in greenhouse gas emissions. Although our contribution may be small in the overall plan, we believe these actions are very important and display our commitment to the program's goals. Sincerely,
David R. Walters Enclosures
cc: Rebecca Blood
Local Climate Challenge Program Summary
Category:
See Attachment #1 for proposed species, quantity, and schedule of trees to be planted
Category:
Distribution System Automation (pages 98-99) System Voltage Optimization and Phase Current Balancing (page 100) Lower Loss Transformers (pages 101-102) Additional Components: Circuit conversion to higher voltage, street light replacement, and new substation construction Estimates show approximately 1,200 MWH (or approximately 0.5% of the expected net distribution system input of 234,000 MWH) can be saved in the year 2000 by implementing these actions when compared with the utilization of the distribution system prior to these improvements. Using Michigan's State Emission Factor of 1,576 lbs of carbon dioxide/MWH for conversion, distribution system improvements eliminate 945.6 tons of carbon dioxide production in the year 2000.
Category:
Build New Transmission Lines (pages 93-94) Estimates show approximately 400 MWH can be saved in the year 2000 resulting in a reduction of 315.2 tons of carbon dioxide.
Category:
Although most local efforts are in the area of load management (peak shaving and load shifting), some improved efficiency and conservation actions will result in reduced energy usage. Estimates show a reduction of approximately 1,400 MWH in the year 2000 which eliminates 1,103.2 tons of carbon dioxide.
Category:
Reduced use of Zeeland's internal combustion generating plant has decreased natural gas consumption by 200,000 MCF and NOx, SOx, VOCs, and TSP emissions by nearly 300 tons. Carbon dioxide production has been reduced by 11,000 tons locally, however, replacement power has been purchased from various other sources with unknown emission quantities. For this reason, carbon dioxide reductions from this action were not included in our total estimates.
|
