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Climate Challenge Participation Accord

DOE's Energy Partnerships for a Strong Economy

Rule

May 28, 1997

Mr. Larry Mansueti
Director, Climate Challenge Program
Office of Utility Technologies
U.S. Department of Energy (EE 10)
1000 Independence Avenue SW
Washington, D.C. 20585

ALLEGHENY POWER CLIMATE CHALLENGE PARTICIPATION ACCORD

Dear Mr. Mansueti:

This letter is a follow-up to the phone conference between Allegheny Power and the Department of Energy (DOE) held on March 17, 1997. As discussed at that time, Allegheny Power is making progress towards its Climate Challenge Participation Accord commitment which continues to be 2,000,000 short tons of equivalent CO2 reductions. Emissions reductions equivalent to 973,013 short tons of CO2 were reported using the Energy Information Administration's Form 1605 for activities through 1995. Allegheny Power does not plan any changes to its commitment or the Participation Accord.

Regarding individual projects, some have produced more reductions than originally projected. These projects include power station heat rate improvement projects, efficient distribution transformers including Energy Star Transformers, and fly ash use as a replacement for portland cement. Demand Side Management Programs (DSM) have made a significant contribution to Allegheny Power's reductions to date. However, with the changes underway in the electric industry, opportunities such as DSM must be considered in the framework of the evolving competitive marketplace. Major additions to the DSM program should not be anticipated. CO2 reductions fora number of other projects have not been quantified, although activities are underway.

In summary, by managing the portfolio of Allegheny Power projects, progress towards the 2,000,000 ton objective will continue. Allegheny Power looks forward to continuing to work with DOE in accomplishing the objectives of the Climate Challenge Program.

Sincerely,

(Signed)

Timothy L. Banfield
Engineer, Planning & Compliance


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