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Section III
Energy Efficiency and Demand-Side Management Fossil Generation Efficiency and Fuel Switching Nuclear Capacity and Capacity Utilization Efficient Transmission and Distribution Use of Coal Combustion By-Products Tabulation of DOE's emission reductions contained in the Climate ChallengeParticipation Accords shows collective pledges of about 44.2 MMTCE of greenhouse gas (GHG) reductions in the year 2000. As substantial as these totals are, simple numerical aggregations do not adequately convey the breadth and depth of activities that the Climate Challenge utilities are undertaking. Indeed, the challenge of Climate Challenge is not merely in terms of tons of carbon reduced, but also in forging government/industry partnerships to assert technological leadership in the areas of energy and environment, to advance economic growth, and to show that cooperation is far more productive than "command and control" approaches. The Climate Challenge utilities have pledged a broad-ranging, farsighted, and innovative set of commitments. This richness of actions can best be understood by examining some projects and programs that Climate Challenge utilities are pursuing. The following sample of "success stories" illustrates the industry's approach. Energy Efficiency and Demand-Side Management Utilities can influence electric end-use through demand-side management (DSM) programs and by encouraging and supporting energy-efficient electrotechnologies. These activities, technologies, and practices are intended to reduce the total demand for electricity, produce beneficial changes in a utility's load shape to reduce capacity needs, or substitute for more energy-intensive technologies, resulting in a net reduction in GHG emissions. Within the electric energy system, end-use improvements offer substantial opportunities for efficiency gains that lead to net reductions in GHG emissions. Improved end-use technologies and practices can be substituted for less efficient ones, reducing electricity demand, electric generation, and GHG emissions. Examples include higher efficiency appliances, efficient motors, and compact fluorescent lighting. Substituting energy-efficient electrotechnologies for fossil fuel-intensive alternatives may also reduce overall energy use and GHG emissions, depending on a utility's generation mix and the relative efficiencies of the fossil fuel technology and the substitute electrotechnology. For example, battery-driven electric lawnmowers use less energy and produce considerably lower emissions of CO2 and criteria pollutants than conventional gasoline powered mowers. Energy efficiency and DSM programs are described in more than 100 of the Participation Accords, more than any other category of activities. The GHG reduction commitments in this category total about 7.4 MMTCE in the year 2000, approximately one-sixth of all Climate Challenge tonnage commitments. Minnesota Power initiated a Demand Side Management Process Efficiency Improvement Program targeted to serve the needs of its industrial customers. By improving production processes and removing production bottlenecks, the program reduces energy needs, GHG emissions, and operating costs per unit of production. PacifiCorp's Energy FinAnswer program targets large new commercial construction (over 12,000 square feet) and major remodeling projects. The program provides financing for energy efficiency improvements, analysis, design, and information regarding efficiency improvements. Customers repay through a charge on their electricity bill. The program includes an optional performance guarantee. In addition, the program helps customers ensure that efficiency measures are functioning properly once installed. Measures financed include lighting, heating system equipment, improved windows, insulation, and refrigeration equipment. The City of Austin Electric Utility Department is continuing its commitment to funding demand-side management programs. The utility funds the City of Austin Environmental and Conservation Services Department for program implementation at a level of about $15 million per year. Programs funded under these efforts include lighting improvements, weatherizing, HVAC cycling, residential loan and rebate program, "energy star" and "green builder" new home rating programs, commercial and municipal energy programs, multifamily programs, air conditioning programs, and educational programs that supply information in utility bill inserts. Southern Company and its subsidiaries are involved in a wide range of electrotechnology development and promotion programs. In the residential sector, they are involved in making and testing geothermal heat pumps. In the commercial sector, they are managing the installation and operation of the world's first electrically regenerable desiccant air-conditioning technology. Several industrial electro-technologies are promoted through the operation of Georgia Power's Technology Application Center in Atlanta, including infrared and radio frequency drying, ultraviolet curing, and advanced robotics. Vermont Public Power Supply Authority's Equipment Replacement and Remodeling Program offers incentives to customers to buy high efficiency equipment rather than standard efficiency equipment. This is a cost-effective way of promoting efficient equipment since the program targets customers who have already decided to replace existing equipment. Lighting and motors receive incentives equal to the incremental cost of high efficiency over a baseline standard. Fossil Generation Efficiency and Fuel Switching Improvements in generation technology, how generation is operated and maintained, and where on the grid it is located can have measurable beneficial effects on both GHG emissions and operating costs. Utilities are pursuing three broad strategies for reducing GHG emissions through more efficient power generation: (1) improve the efficiency of existing capacity; (2) repower or replace generation with more efficient generation; and (3) repower or replace generation with generation that uses lower-carbon fuels. More than half of the Participation Accords include fossil-related activities; many of the remaining Accords are from utilities not having fossil generating capacity. Fossil-related GHG reduction commitments total about 7.4 MMTCE in the year 2000, approximately one-sixth of all Climate Challenge tonnage commitments. Cinergy Corp has installed clean coal technology at the Wabash River Generating Station, owned by its subsidiary PSI Energy. In September 1991, DOE selected this project for funding under Round III of its Clean Coal Program. The facility was dedicated in November 1995; DOE Secretary O'Leary hailed the project as "the forerunner of a new era of environmentally superior clean coal technologies." In a fully commercial setting, PSI Energy and its partner Destec Energy are demonstrating coal gasification repowering of an existing unit. Where there was an aging, inefficient, little-utilized unit, there is now a very clean and highly efficient unit that will generate at high load well into the next century. Plant capacity had been 100 MW, but now nets 268 MW. The original heat rate of 11,000 Btu/kWh is now under 9,000, one of the lowest for commercial coal plants in the United States. Because the heat rate is so much lower, the rate of CO2 emissions will decrease by about 20 percent. Additionally, emissions of SO2, NOx, and PM are all down by at least 90 percent. Other utilities which plan to use clean coal technology to reduce GHG and other emissions include Tampa Electric and Sierra Pacific Power. At its Independence Plant, Entergy replaced its feedwater heater on Unit 1, an 840 MW net coal-fired unit. A heat rate improvement of 2% is expected as a result of this project. Current projections are for a reduction of about 84,000 tons of CO2 in 1996. At Union Electric Company, a 600 MW coal-fired boiler has been equipped to burn waste transformer mineral oil in an EPA-approved project. Only waste oil generated within the Union Electric system is burned in the boiler to generate electricity. Burning the PCB-contaminated oil in the boiler makes productive use of its energy content, unlike sending the oil to an incinerator for disposal. Burning the oil in a power boiler generates the same amount of carbon dioxide emissions as it would if it were burned in an incinerator, but the oil now displaces coal, resulting in a net emission reduction of 205 pounds of carbon dioxide per million Btu of oil burned. Cedar Falls Utilities is a public power utility serving the 35,000 citizens of Cedar Falls, Iowa. Its Streeter Generating Station is one of only two power plants in the world that utilizes an air-cooled condenser in parallel with a standard wet cooling tower. The air-cooled condenser was built to accommodate the Iowa Department of Transportation's concerns about relocating State Highway 58 to within 300 feet of the existing Streeter cooling tower. Cedar Falls personnel designed an air-cooled condenser (ACC) on the site, constructed as a large "A-frame on stilts". The ACC was constructed in the summer of 1995, and initial operating results indicate that the heat rate for Streeter Unit 7 has improved about 500 Btu/kWh. This improvement translates into a fuel savings for the unit, and about a five percent reduction in the CO2 emission rate at the plant. Central Illinois Light Company's (CILCO) first cogeneration facility, Cogen One, is a 16 MW cogenerating power plant which supplies steam to Midwest Grain Products of Illinois and also produces electricity from its turbine generator system. Upon commencement of operations in 1995, Midwest Grain retired its coal-fired fluidized bed boilers and gas-fired boilers and replaced its supply of steam with CILCO's more efficient natural gas-fired boilers, lowering GHG emissions. As a research and development project costing approximately $2.5 million, Central Hudson Gas & Electric Corporation installed a heat pipe air heater at its Danskammer Unit 2. This alternative air heater eliminates cross leakage and localized cooling while maintaining adequate heat transfer and flue gas flow capability. Due primarily to the heat pipe, the unit has increased its net output to 64 MW from 56.5 MW. Due to lower excess air and lower exit gas temperatures, plant heat rate and overall boiler efficiency have been improved by 400 Btu/kWh over the test range, lowering the CO2 emissions rate by about four percent. Renewable energy technologies for electric generation include photovoltaics, solar thermal, biomass, windpower, geothermal, hydropower, and related energy sources that emit no net GHGs. Increasing their use lowers carbon emissions, conserves fossil fuels, and frequently reduces emissions of criteria air pollutants. The modular nature of some renewable energy technologies makes them adaptable for distributed use near load centers, providing support to the distribution system, reducing line losses, and decreasing needed spinning reserves. In addition, many intermittent renewable energy technologies serve to generate electricity during load periods for summer peaking utilities, thus displacing peaking fossil fuel generation. Renewable energy technologies, as a group, have a wide range of performance characteristics; some provide power intermittently while others can be dispatched. In addition, resources required for economic use of renewable energy technologies are not geographically uniform. An important part of incorporating renewable energy technologies into utility operations is the measurement and inventory of available renewable resources in a utility's service territory to help determine whether they are cost-effective, where they should be located, and what role they can best play in a utility's operations. About half of the Participation Accords discuss activities related to some form of renewable energy. The tonnage commitments total about 3.2 MMTCE in the year 2000, approximately seven percent of all Climate Challenge commitments. As a CO2 reduction activity, the Tennessee Valley Authority (TVA) is exploring the viability of cofiring wood wastes at several of its coal-fired plants. With their many coal plants and the numerous forest products industries within their service territory, the opportunities are large. Using wood wastes for cofiring offers multiple benefits; from a GHG perspective, some of the coal is being displaced by a renewable resource. From a waste perspective, the forest products industries can reduce their landfill needs while producing a valuable commodity. For TVA and its customers, there can be cost savings compared to burning coal. TVA's small-scale testing established the technical feasibility of cofiring up to 2 percent by energy in pulverized coal units, and up to 10 percent by energy in cyclone units. TVA's pre-commercial demonstration runs began in 1995, testing the availability and reliability of supplies in the marketplace. TVA is evaluating these tests, and if the tests are satisfactory, the utility will be positioned for commercial operations in 1997. In its Participation Accord, TVA estimates that its biomass cofiring projects will result in GHG reductions in the year 2000 equivalent to 2.4 million tons of CO2. The Sacramento Municipal Utility District (SMUD) is the fifth largest publicly-owned electric utility in terms of customers served. SMUD's power mix is one of the cleanest in the nation and includes wind, hydroelectric, cogeneration, photovoltaic, geothermal, other advanced and renewable resources, and energy efficiency programs. SMUD has an extensive program for photovoltaics (PVs). SMUD now generates 3.5 megawatts of PV-produced solar power, and its photovoltaic projects combined form the nation's largest utility-owned solar PV power plant. In addition, hundreds of PV generators (4-kilowatts each) have been placed on SMUD customers' rooftops. By the year 2000, SMUD's renewable technologies will generate enough electricity to power 375,000 typical Sacramento homes. Northern States Power Company (NSP) issued a request for proposal in 1993 for 25 MW of windpower. Kenetech, a wind developer based in California, installed the 73 turbines, which went into full commercial operation in May 1994. Kenetech owns and operates the wind farm, and will sell NSP the power for an average levelized price of 5 cents/kWh over the 25-year lifetime of the contract. The 25 MW of wind is located near Lake Benton, MN on the Buffalo Ridge, the highest velocity documented wind resource in Minnesota. Minnesota Power operates the M.L. Hibbard/Duluth Steam District No. 2 steam plant for the City of Duluth. The facility provides process steam to a paper mill and a recycled fiber plant. Acceptable fuels at the facility include coal, natural gas, and wood waste. The plant has sought to maximize use of renewable waste wood as a fuel since 1991 and will continue this effort to the extent that appropriate fuel is economically available. When natural gas is economically available, natural gas is also used to reduce coal use. By the end of 1994, this effort has resulted in halving the CO2 emissions rate per thousand pounds of steam compared to 1990, reducing CO2 emissions over 20,000 tons per year. Indirect emissions are also significantly reduced, as waste wood can form methane gas under moist, anaerobic landfill conditions. An additional benefit from the use of wood waste is that the ash formed during combustion of the wood waste is an agriculturally beneficial product, in that the potassium and alkalinity in the wood ash make it useful as a soil conditioner on agricultural fields. In northern Nevada, Sierra Pacific Power is purchasing power from several geothermal generation units. By displacing generation from conventional coal units, these geothermal contract purchases are currently reducing CO2 emissions by about 400,000 tons per year, with reductions in the year 2000 expected to be nearly 600,000 tons of CO2. The Tennessee Valley Authority (TVA) is implementing a system-wide hydro unit modernization program that will increase the efficiency and/or capacity at many of TVA's existing hydro generating units. The first completed project in the program was at Tims Ford Hydro Plant in October 1992. The project included turbine runner replacement and rehabilitation of the turbine. Projects were also completed at Chickamauga Unit 3 and Wilson Units 9 and 10 in 1994. Vermont Public Power Supply Authority is pursuing a hydro expansion of the Orman E. Croft Generating Station from 6,300 kW to 10,000 kW. The expansion will reduce dependence on fuel generated energy to serve Swanton Village customers. The impact of increased production in 1994 resulted in a reduction of energy requirements for Swanton Village of nearly 10,000 MWh. Further reductions in energy purchases are expected as a result of the installation of a rubber dam and increased ponding that came on-line in July, 1995. The project is complete, and full incremental generation of 18,305 MWh annually is expected to be realized starting in 1996, subject to normal variations in rainfall. Nuclear Capacity and Capacity Utilization Nuclear energy currently accounts for over 20 percent of electric generation in the United States. Currently, it is the only major source of electricity beside hydro that does not emit GHGs. Nuclear energy has made up over 98 percent of new, zero-emission utility generating capacity additions since 1973. Second only to coal as an electricity source in the U.S., nuclear power has substantial potential to reduce GHG emissions through incremental improvements in operations. There are a number of short-term activities underway to assure the continued and improved operation of the current generation of U.S. nuclear plants in the United States. These include addressing issues related to operating and maintenance costs, improved capacity factors, and government and utility actions related to plant license renewal. Only about one-fourth of the Participation Accords discuss nuclear activities. However, because the GHG reduction potential at many plants is so large, the GHG reductions in the year 2000 total 12.8 MMTCE, equal to about 29 percent of all Climate Challenge GHG reduction commitments. Entergy operates five nuclear units with a combined capacity of 4,453 MW. In 1995, it began an initiative to raise the capacity factor of these units from a combined historical level of 81 percent to a new target of 87 percent. In 1995, these units successfully in creased their combined capacity factor to 83 percent, resulting in an estimated system reduction of CO2 emissions of 836,000 tons per year. Entergy also completed an upgrade project in 1995 at the Grand Gulf Nuclear Plant and provided new blading and ancillary equipment for the turbines. The initiative resulted in a decrease of 103,000 tons of CO2 emissions in that year. The benefits from the turbine upgrade include increased output and capacity as a result of the increased efficiency of the turbines and the reduced maintenance needs. As a result of the improvements from the newly designed stationary blading, a new rotor, and new cylinders in the turbines, the project resulted in an additional 71 MW of capacity at Grand Gulf. This increased capacity will offset fossil generation that would otherwise be produced from the Entergy fossil system. Duke Power Company has undertaken projects to increase the generation from Oconee, McGuire, and Catawba Nuclear Stations. By increasing nuclear generation over reference year levels, less power was needed from Duke's coal-fired generating facilities, collectively reducing CO2 emissions by about ten million tons in 1994. At its Oyster Creek nuclear power plant, General Public Utilities has instituted an availability and capacity factor improvement program to operate on two-year refueling cycles, reduce the number of refueling outages required, and increase the overall plant capacity factor. In addition, enhancement of preventive maintenance and surveillance programs and pre-outage and outage planning activities are expected to reduce the duration of outages and increase plant capacity factor. GPU's goal is to achieve a two-year cycle capacity factor of 83 percent at Oyster Creek 1. Texas Utilities Electric Company (TU Electric) operates the two-unit Comanche Peak Steam Electric Station, whose units came on-line in 1990 and 1993. Since 1991, TU Electric has been able to improve Comanche Peak's availability, chiefly by extension of refueling schedules and shortening refueling outage durations. The increased generation from these units displaces generation that otherwise would have come from coal or lignite-fired units. The Southern Company, through its Georgia Power Company subsidiary, owns almost half of Plant Alvin W. Vogtle. Recent activities there have uprated capacity and increased availability. In May 1993, the rated core power levels for Units 1 and 2 were each increased from 3,411 MW thermal to 3,565 MW thermal, and the corresponding nuclear steam supply systems were each updated from 3,425 MW thermal to 3,579 MW thermal. The uprates, approximately 4.5 percent over previous rated levels, were achievable primarily through minor changes to the fuel configuration. In addition, Southern's commitment to continued enhancement of operational performance and efficiency improvements have led to Plant Vogtle's total generation increasing nearly 10 percent between 1991 and 1994. In doing so, several major industry performance records have been set. Efficient Transmission and Distribution High voltage transmission lines interconnect generating stations and major load centers, and also transfer power between utilities. The distribution system represents the link between the transmission grid and the customer. Institutional and technological changes in transmission system engineering and operation hold the potential for increased capacity and efficiency of the transmission grid. In addition, improved transmission links can often reduce the need for total installed generation and spinning reserve requirements, since these links can be used to send electricity from systems that don't need it at that time to systems that do. This reduced need for generation and spinning reserves can lead to a reduction in GHG emissions. Higher capacity transmission systems could also increase the availability and economic viability of renewable resources that are remote from load centers. In 1991, about 7.4 percent of U.S. electric energy was lost between generation facilities and end-user. Improvements in the efficiency of the electricity transmission and distribution (T&D) system reduce the amount of energy lost between the point of generation and the point of end-use; this in turn reduces GHG emissions. At American Electric Power, Inc. (AEP) improvements made on a continuing basis to the distribution system are reducing losses. These improvements include the following:
It has been estimated that approximately 5 percent of all distribution system load is attributed to losses. AEP calculates that its improvements represent a reduction of approximately 2.6 percent of these distribution system losses. Over the last several years, Niagara Mohawk Power Corporation (NMPC) has been installing high efficiency transformers to improve its T&D system efficiency. Higher efficiency transformers provide a significant potential for reducing GHG emissions because of the large number of transformers in use throughout electric generation systems. Certain types of transformer energy losses can be reduced by using a transformer with a core made of a metal that offers less magnetic resistance. In an amorphous metal core transformer (AMTs), the standard silicon steel of the transformer is replaced with amorphous steel, which results in up to 70 percent higher efficiency. Such transformers, however, typically involve higher capital and installation costs. Since 1993, NMPC has installed about 2,400 AMTs in place of standard transformers. The savings resulting from AMT transformers through 1994 were about 2,400 MWh of energy and 1,700 tons of CO2. Over a period of three years, Snohomish County (Washington) Public Utility District lowered average voltage on 101 primary distribution circuits while maintaining service voltages within ranges specified by industry standards. Lowering the voltage at substations and changing the criteria for setting substation voltages resulted in reduced voltage along feeders, producing reductions in end-use electrical energy consumption and demand. By reducing the need for power purchases, GHG emissions are similarly reduced. Entergy has an ongoing process to upgrade transmission lines and substations to improve transmission efficiency. In 1995, Entergy successfully upgraded three 115kv _ 230 kv lines and 5 capacitor banks. These projects resulted in 1995 reductions of 105,700 tons of CO2. Many other T&D efficiency projects are planned for 1996 and beyond. Use of Coal Combustion By-Products Several Participation Accords describe additional and innovative uses of fly ash and other coal combustion by-products (CCBs). In general, use of CCBs avoids disposal and replacement resources, and their associated energy needs and emissions. In particular, when fly ash is used to displace portland cement in concrete applications, CO2 emissions are avoided by reducing the need for limestone calcination and the fossil fuel consumption used in its production. The increased use of CCBs, is pledged in nearly 40 of the Participation Accords. By displacing cement production, these commitments would increase the use of fly ash by roughly two to three million tons by the year 2000, about 15 to 23 percent over recent years' levels. The corresponding incremental reduction in GHG emissions is about 500,000 tons of carbon equivalent in the year 2000. Allegheny Power Service is considering a cooperative research and development project to use fly ash for coal mine subsidence and control of acid mine drainage. At the Bark Camp mine in Clearfield County, Pennsylvania, fly ash would be used in several innovative applications. If the project proceeds, it will consume approximately one million tons of fly ash over its five-year project life. General Public Utilities has found its ash quality affected by pollution control retrofits such as low-NOx burners. In its efforts to improve the ash quality for marketing, GPU is examining the D-COP Flyash Remediation Process, a process for separating unburned carbon from fly ash. Seminole Electric Cooperative is investigating new methods of operating its flue gas desulfurization sludge landfill that would require less fly ash in the landfilled material, thereby making more available for recycling. The new operational method, known as macro-encapsulation, has been approved by State regulatory agencies and is being readied for use in a pilot program. Wisconsin Electric Power Co. (WEPCo) has made some valuable breakthroughs in its commitment to increased use of coal combustion by-products. It has gone beyond increasing sales of its western coal's Class C fly ash as a cement replacement, and has patented a new process for using fly ash of any quality in the production of lightweight aggregates for concrete. The process also makes efficient reuse of municipal and paper mill sludges. While using fly ash for aggregate production yields less CO2 savings than for cement replacement, there are other substantial environmental benefits in using rather than landfilling the fly ash and sludge wastes. This new patented process will enable WEPCo to approach its goal of 100 percent use of its fly ash by the year 2000. Carbon dioxide and other GHGs can be managed through many different types of forestry activities. Forest preservation and management projects sequester carbon and maintain sequestered carbon by reducing deforestation and harvest impacts. Forest management can also enhance existing carbon sinks by planting on former mine sites, pasture, agricultural land, buffer zones at industrial sites and power plants and degraded forest sites. Some forestry activities also save energy, which reduces fossil fuel use while storing carbon, such as when urban tree planting shades buildings and homes, or when windbreaks reduce heating, ventilation, and air conditioning needs. Nearly two-thirds of the Participation Accords described forestry activities, making it one of the most cited activities. The interest in forestry is due to the proposition that sequestration of carbon in forests may be one of the least expensive forms of GHG mitigation. Many of the forestry projects undertaken by Climate Challenge utilities are aimed at testing this proposition. However, because many of the benefits of forestry are realized over longer time periods, the near-term GHG reductions tend to be smaller. By the year 2000, the forestry-related Climate Challenge pledges amount to less than one MMTCE. American Electric Power (AEP) is continuing its long history of afforestation efforts on company lands; since 1945, AEP has planted over 41 million trees on land throughout its system. As part of its Climate Challenge commitment, AEP will plant up to 15 million trees on an additional 20,000 acres of company-owned lands. While the plantings are roughly equal between pine and hardwood, several species of each will be planted. Over a 30-year project period, AEP estimates carbon sequestration equal to about 1.63 million tons CO2. There are multiple benefits to AEP's forestry activities, with carbon sequestration being just one. Nearly half the lands will be reclaimed grasslands or mined lands, even though marginal agricultural land would sequester more CO2. Similarly, over half the lands will be planted in hardwoods, even though pine is less expensive. By planting this diverse mix of lands and species, AEP is enhancing the value of these lands as a diverse forest rather than a monoculture plantation, and improving the overall wildlife habitat. AEP has established an Advisory Council of 18 conservation and wildlife organizations to provide review and offer recommendations on a regular basis. Cooperative Power Association (CPA) initiated a tree and shrub shelterbelt program at its Coal Creek Station generating facility. The objectives of the program are to offset CO2 emissions, minimize dust emissions and wind erosion, provide wildlife habitat, and maximize productivity of the land. The first trees and shrubs were planted in 1992 and planting will continue through 1997 until more than 12,500 trees have been planted. In 1995, as part of the CPA annual meeting, an employee tree planting program was initiated. Each employee, director and manager, a total of 700 people, received a pine tree to plant at his or her residence. In addition, employees were given the option to purchase additional trees through the program. A New England Electric System (NEES) subsidiary, New England Power Company contracted with Rakyat Berjaya Sdn. to develop and implement Reduced Impact Logging (RIL) techniques on about 3,500 acres of commercial forest land in Malaysia. The pilot scale demonstration project was completed in 1995. For the project, RIL guidelines were developed with the goal of reducing logging damage by 50 percent through pre-cutting of vines, directional felling, and planned extraction of timber on properly constructed and utilized skid trails. Requirements for stream buffers and restrictions on severe slope harvesting (steeper than 35 degrees) also reduced damage and contributed to conservation of the residual forest. This reduction in damage is estimated to result in cumulative reduced emission/enhanced sequestration of about 170 tons of CO2 per acre over the projected 40-year lifetime. RIL harvesting also resulted in a better stocked, less damaged, faster growing residual forest stand that will produce higher value forest products. The project also resulted in conserved wildlife habitat and biodiversity, and in substantially reduced rates of erosion. Texas Utilities Electric (TU Electric) has joined the Texas Reforestation Foundation (TRe) to fund the reforestation of cut-over woodlands in Texas. TRe is a nonprofit, non-governmental, private-sector forestry incentive program funded entirely by voluntary contributions, chiefly from the forest products industry. TU Electric is the only non-forest products company participating in TRe. In this program, the TRe provides matching funds for timber stand improvement projects or replanting on private property. In 1994, TU Electric's participation in the program enabled the replanting of trees on over 670 acres in two counties in East Texas. By the year 2000, TU Electric's participation in the TRe program is expected to result in the total sequestering of over 18,000 tons of CO2. Hopkinsville (Tenn.) Electric System (HES) introduced its Trade-A-Tree Program in which the utility will remove a tree that has grown up into power lines and plant in its place a sapling tree that will have a mature height short enough not to interfere with the lines at no expense to the customer. This program helps eliminate the need for HES crews to routinely trim trees. Since the HES Trade-A-Tree Program was implemented, the utility has planted 1,421 trees in the Hopkinsville community, plus 162 trees planted on HES property around buildings and substations. Northern Indiana Public Service Company (NIPSCO) initiated an urban tree planting program in 1993 to demonstrate to customers that trees and utilities can coexist if attention is given to planting the right tree in the right place. Compatible, low-growing ornamental species are planted beneath the power lines, and shade trees are planted away from the lines. In addition to the carbon sequestration, the urban forestry project improves energy efficiency by shading houses in the summer and providing wind breaks. The project is expected to continue indefinitely, planting trees at a rate of 800 to 1,000 per year. The Southern Company's operating affiliates have major land holdings. To the extent that these lands are not currently required for other purposes, they have been almost entirely dedicated to managed forest programs. During the 1991-1994 period, Southern Company planted almost 3,500 acres of trees in Alabama and Georgia. Reforestation of poorly stocked land accounted for approximately 72 percent of the acres planted, with the remaining 28 percent involving the planting of new forests. With these efforts, most available company lands are now in managed forests. Because methane is a potent GHG (its global warming potential (GWP) is about 21 times that of carbon dioxide), its capture and use can significantly reduce the overall levels of GHGs. There are a variety of ways that utilities can reduce emissions of methane, including coal mine methane recovery, landfill methane energy recovery, reduced emissions of natural gas, and animal manure methane energy recovery. The methane collected can be a significant source of natural gas, both for use in pipelines and on-site generation of electricity or other process uses. New England Electric System (NEES) provides electricity to a region of the country that is not naturally well-endowed with either fossil fuel or renewable resources. As part of its Participation Accord commitment, NEES is recovering landfill methane as a fuel for electricity generators. Its first project, a 9 MW generator in Johnston, RI, began operation in 1990. Its second project, a 3 MW generator in Rochester, NH, began operation in 1992. NEES has four additional landfill methane recovery generators located in Nashua NH, and in Barre, Randolph, and Plainville, MA. These projects will have a combined capacity of 8 MW and will collectively reduce emissions by over 40,000 tons of methane per year. Northern Indiana Public Service Company (NIPSCO) is undertaking three projects to use landfill methane as a fuel to produce electricity. At the Prairie View Recycling and Disposal Facility, landfill gas is filtered, compressed, and supplied to three 800 KW generators. The project came on-line in 1994 and produces net power of approximately 1.5 to 2 MW. At the LaPorte County Recycling and Disposal Facility, a similar sized project came on line in 1995. At the Gary Landfill, a small power producer is installing three 800 kW methane-fired generators at the landfill. At all three projects, the net power is, or will be, sold to NISPCO to displace coal-fired generation by the same amount. At the Hartford landfill, Northeast Utilities System (NU) is recovering landfill methane for electricity generation. At present, the landfill gas is being collected and flared. As a Charter Utility Ally to EPA's Landfill Methane Outreach Program, NU is developing a consortium with the City of Hartford and the Metropolitan District Commission to produce electricity and usable heat using seven fuel cell units manufactured in Connecticut. Houston Lighting & Power Company (HL&P) is supporting research at Rice University on methods to reduce emissions of methane from cultivated rice fields. Since 1990, HL&P contributions to this project have totaled more than $134,000. HL&P will seek agreements with area rice growers to adopt agricultural practices that reduce methane emissions. Utilities operate large fleets of vehicles, including cars, vans, and trucks of many types and sizes. GHG emissions from these vehicles could be reduced by: (1) converting them to a fuel such as compressed natural gas (CNG) or liquefied petroleum gas (LPG) which would result in lower CO2 and other GHG emissions; (2) replacing them with electric vehicles (EVs) in conjunction with programs such as EV America, which is working to develop a common set of specifications for cars, vans and light duty trucks for use in utility and utility customer fleets; and (3) using other available electric vehicles for fleet use. The alternative fuel vehicle market is increasing, in accordance with mandates contained in the Energy Policy Act of 1992. Market demands and preferences will then drive the further proliferation of alternative fuel vehicles through the end of this century. As many of the Climate Challenge utilities are also large fleet operators, several have taken steps to increase use of alternative fuel vehicles. Northern Indiana Public Service Company (NIPSCO) has been a leader in Natural Gas Vehicles (NGVs) since 1981. In NIPSCO's fleet of nearly 1,200 vehicles, there are currently 569 NGVs. Despite a decrease in the size of its fleet over the last several years, NIPSCO's goal is to increase the number of NGVs to 800 by the year 2000. NIPSCO is committed to significantly increasing the percentage of NGVs in its fleet over the next several years through various actions, including: (1) purchasing factory-direct dedicated natural gas units as available; (2) converting forklifts and light duty vehicles and trucks to compressed natural gas; and (3) utilizing liquefied natural gas (LNG) in its heavy duty trucks. In addition to utilizing natural gas in its own fleet, NIPSCO will increase the number of NGVs operating throughout its region by providing a highly reliable fueling infrastructure, and by developing strategic alliances with educational, governmental, and social organizations. By the year 2000, NIPSCO is forecasting about 1,750 NGVs within its region. Montana Power Company currently operates about one-fourth of its 1,000-vehicle fleet on natural gas, with more conversions in the works. Trained utility mechanics and maintenance personnel are converting medium-weight gasoline-engine service vehicles (1/2 to 1 ton trucks and larger sedans) to bi-fuel capability using closed-loop conversion kits to optimize performance and emissions. They have installed and operate six compressed natural gas (CNG) fast-fill refueling stations. These compressor stations have the capability to refuel outside customer fleets as well. All stations are unmanned, using a magnetic card system to authorize and record usage. The Southern Company is one of the leading U.S. utilities in the development and promotion of electric vehicles. It is one of only five U.S. utilities providing co-funding to the U.S. Advanced Battery Consortium, contributing over $1.6 million to this effort. Southern has also provided $300,000 in cofunding EPRI's Electric Vehicle Research Network. Through Georgia Power, it has invested over $3 million in a state-of-the-art Electric Vehicle Research Center in Atlanta. The Clinton Administration has consistently recognized the significant potential for cost-effective emission reductions in areas outside of the United States. The Framework Convention on Climate Change allows countries to explore emission reduction projects together under a program of Joint Implementation (JI), or Activities Implemented Jointly (pilot phase). The U.S. has set up a pilot program for these projects The U.S. Initiative on Joint Implementation (USIJI). Essentially all of the types of options and activities contained in the Climate Challenge Participation Accords are also suitable for implementation in other countries. Indeed, the electric utility industry has led U.S. efforts to improve operations and reduce GHG emissions in other countries, both through "traditional" electric utility actions as well as through forestry and other actions. Many of the utilities' efforts are conducted through the International Utility Efficiency Partnerships program (IUEP), which identifies and reviews energy efficiency, fuel switching, renewable energy and other GHG reducing projects in the developing world. U.S. electric utilities evaluate proposed IUEP projects, and offer financial and technical assistance to those that elect to join. A number of utilities, individually or in partnerships, are engaged in international efforts to reduce GHG emissions. Some examples are described below. Arizona Public Service (APS), with support from Niagara Mohawk Power Corporation, is undertaking a joint implementation effort in a rural fishing village currently without adequate electric generation in Baja California. The village's limited power supplies come from inefficient diesel generators. Under APS's project, rural electrification will use solar and wind power, with minor amounts of diesel for backup. More than just a cleaner and cheaper power source, APS's support for development offers the potential for many villagers to break their long cycle of poverty. The City of Decin is a heavily industrialized center with a population of 55,000 located in Northern Bohemia in the Czech Republic. Because the city sits in a deep valley, air pollution is concentrated, making Decin one of the most polluted towns in Northern Bohemia. The Decin Project is converting the Bynov District Heating Plant from coal-fired boilers to natural gas, internal-combustion engines and associated exhaust gas/hot water heat exchange equipment. Participating in this project are the Center for Clean Air Policy; City of Decin, Czech Republic; Commonwealth Edison Company; NIPSCO Development Company; and Wisconsin Electric Power Company. In addition to assisting in improving the efficiency of the hot water distribution network, the project will reduce GHG emissions and dramatically improve local air quality. In Belize, the Rio Bravo Carbon Sequestration Pilot Project is a partnership between Programme for Belize, The Nature Conservancy, Wisconsin Electric Power Company, Cinergy Corp, Detroit Edison Company, PacifiCorp, and UtiliTree Carbon Company. The project has two phases. The first phase is the purchase of a 15,000 acre parcel of endangered forest land that otherwise would be lost to intensive agricultural use. Phase 2 is the development of a sustainable forestry management program that covers about 125,000 acres. Sustainable logging technologies will be applied to about half the lands, and about half will be treated as protected forest. On December 4, 1996, the Clinton Administration selected seven additional projects to be included in the USIJI. Four of these projects have electric utility involvement: Halophyte Cultivation Project in Sonora, Mexico with U.S. partners: Salt River Project; Halophyte Enterprises, Inc.; and Econergy International Corporation and Mexican partner: Genesis, S.A. de C.V. Noel Kempff M. Climate Action Forestry Project in Bolivia with U.S. partners: American Electric Power System (AEP) and The Nature Conservancy and Bolivian partner: Fundacion Amigos de la Naturaleza (FAN). BEL/Maya Biomass Power Generation Project in Belize with U.S. partners: e prime, an affiliate of Public Service Company of Colorado, and International Utility Efficiency Partnerships, Inc., D.C. (IUEP) and Belizean partner: e prime (Belize). Bio Gen Biomass Power Generation Project in Honduras with U.S. partners: Nations Energy Corporation, an affiliate of Tucson Electric Power Company, and International Utility Efficiency Partnerships (IUEP) and Honduran partner: Biomasa-Generacion S. de R.L. Miscellaneous GHG Reduction Programs While most of the GHG emissions from the Climate Challenge utilities are carbon dioxide resulting from fossil fuel burning, utilities often have opportunities to reduce other GHGs. These gases include nitrous oxide (N2O), halogenated substances, and methane. Most of these gases are emitted in activities that are peripheral to the utilities' core activities. Still, utilities have identified opportunities to contribute to Climate Challenge by controlling these other gases on a site-specific basis. In November of 1994, Niagara Mohawk Power Corporation (NMPC) entered into an intergas trade agreement with the Arizona Public Service Company (APS), under which some of the CO2 reductions achieved by NMPC through its emission reduction activities will be transferred to APS in exchange for a number of APS's SO2 allowances under Title IV of the Clean Air Act. The CO2 reductions traded to APS have been recognized by the Department of Energy (DOE) as applicable toward commitments made by APS in its Participation Accord with DOE. NMPC has agreed to limit any such exchange transaction to CO2 reductions that are "surplus" that is, reductions beyond those needed to achieve a 1990 emissions level. The total CO2 reductions involved in the agreement with APS are 1.75 million tons (250,000 in 1991; 500,000 in 1992; and 1,000,000 in 1993). Also under the agreement, any financial benefit that accrues to NMPC due to the exchange will be used to fund additional projects that will further reduce CO2, creating a net benefit to the environment from the trade. A New England Electric System (NEES) subsidiary, Massachusetts Electric Company, conducts an energy conservation program to collect older, inefficient refrigerators and freezers from customers. The program applies to the secondary (not the primary), standard-sized, operating units in homes. The appliances are taken to a central point where they are disassembled, and various parts such as metals and glass are recycled. In 1993, the program collected 6,381 appliances, 957 of which contained CFC-11 insulating foam. In 1994, the program collected 7,727 appliances, 1,680 of which contained CFC-11 insulating foam. The collected CFC12 refrigerant is recycled, and the CFC-11 insulating foam is incinerated by a resource recovery facility. Northern States Power Company's Appliance Recycling Project encourages residential customers to dispose of their inefficient secondary refrigerators, freezers and room air conditioners by providing free pickup and recycling of working units, in addition to offering a $50 U.S. savings bond. Since the introduction of this program in September, 1992 through 1994, over 80,000 appliances have been recycled. An additional environmental benefit besides the recycling of CFCs is that scrap metal from the appliance shells is taken to a scrap processor for recycling to preserve landfill space. Education and Community Service Utilities are becoming more involved in educating customers, employees and members of other institutions, organizations, and communities about the effects of individual behavior on the (global) environment. While near-term GHG reductions from these educational efforts cannot easily be quantified, these programs can have a deep and long-lasting influence on future emissions of GHGs by influencing behavior and increasing knowledge. In 1992, Wisconsin Power and Light Company (WP&L) designed its Stewards of Nature conservation program to enhance the company's commitment to environmental stewardship and to cooperate with local environmental organizations and the Wisconsin Department of Natural Resources (WDNR) to assist with environmental quality enhancement initiatives. Stewards of Nature is implemented by a team of employees from across the company that organize activities, including conservation projects, educational field trips and seminars. The projects are geared for employees, and their families and friends, who are curious about the natural world, enjoy the outdoors, and are willing to volunteer their labor on the weekends. Stewards of Nature projects and activities have so far included:
After only its first year, Stewards of Nature received a Special Distinction Common Goals Award from the Edison Electric Institute for taking a role in community responsibility through environmental partnerships. Flint Electric Membership corporation introduced In Concert with the Environment to 1,200 eighth- and ninth-grade science students at five schools in their service area. This program, developed by an Arizona science teacher, is designed to educate secondary school students and their households about energy efficiency, resource management, and the positive environmental results from wise energy use. The program encourages participation by all household members. The program educates both present and future consumers on how to live in concert with the environment. An energy survey and handbook is given to each student, asking them to investigate the many ways his or her household uses energy. Each student enters the results of his or her survey into a computer, which produces a printout that shows the dollars they are spending on energy, identifies the good things they are doing, and notes areas where they could conserve more. The printout also explains the difference students can make by recycling more of their cans, paper, plastic, newspapers, cardboard, engine oil, and other wastes. Central Illinois Light Company's (CILCO) In Concert With the Environment program is a public education initiative to enlighten school children and adult energy customers with ways to efficiently use energy in the home. CILCO's program promotes an ongoing pattern of personal energy use that minimizes consumption, and that minimizes the amount of "wasted" electricity that is bought but not productively used. In Concert With the Environment programs take place in over 50 area public elementary and high schools, as well as in public community events that people of all ages may attend. The program works through company employee "instructors" and interactive computer software to inform and test users on which personal energy use practices are "energy efficient" and also to educate users on the environmental consequences of "wasted" electricity. Reductions in energy use and resulting emissions reductions are expected to grow with the popularity of this educational effort. SECTION IV: DOE'S CLIMATE CHALLENGE ACTIVITIES
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