CHARACTERISTICS

Utilities are both electricity generators and end-users. In addition, they are part of an energy cycle that must be looked at in whole to optimize system efficiencies. Utilities may undertake a variety of programs that result in improved end-use efficiency, improved air quality, and/or minimized waste; these programs will likely also help to minimize GHG emissions.

Electric generating plants are just one part of the electric power fuel cycle and only one part of the GHG emissions equation. Energy is consumed and GHGs are emitted in: (1) the production and transport of fuels and other raw materials used by electric generators, (2) the handling of fuels and other raw materials fed to boilers, (3) other processes at or associated with generating plants, (4) the production, disposal and utilization of waste materials, and (5) the transmission, distribution and utilization of the electricity generated. Under a climate-constrained environment, any action, even the installation of pollution control equipment, must be assessed to determine how it will affect GHG emissions. Energy audits, performed by evaluating how energy is used throughout utility facilities and associated operations, are often the first step in identifying and qualifying the GHG emissions produced. Each utility can examine its own processes and business patterns to assess the best opportunities to minimize emissions.

To date, most electric utility-related environmental regulation has attempted to alleviate emissions of acid rain precursers (sulfur dioxide and nitrogen oxides), as well as particulate matter, fly and bottom ashes, and in some cases other pollutants. With the exception of a few European countries, countries do not regulate emissions of carbon and other greenhouse gases. Therefore, many utilities have never needed to measure or monitor their emissions of these substances. It is possible to "back into" emission estimates by multiplying the carbon content of fuels combusted by the number of kilowatt hours generated. However, more accurate measurements of GHGs are needed to develop an emissions profile and prepare a strategy for minimizing emissions and obtaining credit for emissions reductions. For example, under Section 1605(b) of the U.S. National Energy Policy Act of 1992, precise techniques to create GHG baselines must be followed to be given credit for voluntary emissions reductions.

SIZE:
Will vary according to the size and operations of individual utilities. Programs may concentrate on one aspect of energy use (i.e., lighting) or may be more comprehensive (facility-wide or entire fuel cycle energy audit).

FEATURES:
Energy audits can identify the most cost-effective actions to take. May include programs such as: reduce employee travel requirements through encouragement of telecommuting, carpooling or use of public transportation; office energy conservation through installation of energy-efficient lighting and teleconferencing; coal washing to reduce coal transportation requirements, installation of equipment with low parasitic energy requirements; use of low polluting motor vehicles, and switching to lower carbon fuels, where possible.

COST:
May be minimal for administrative measurements, or may be significant if extensive equipment upgrades are purchased. Cost for conducting an energy audit varies greatly depending the scope of the audit; many options have reduced costs and/or improved operations, saving money and/or producing new revenue streams.

CURRENT USAGE:
Many programs exist encouraging utilities to voluntarily reduce GHG emissions. The U.S. Department of Energy sponsors the Climate Challenge Program¹ in which more than 600 utilities have made voluntary commitments to reduce GHG emissions.

POTENTIAL USAGE:
Any utility, whether large or small, with or without generation, having any resource mix, and experiencing high or low load growth, can identify, assess and reduce GHG emissions.

CLIMATE CHANGE IMPACT

EMISSION EFFECT:
    

CONDITIONS FOR EMISSIONS MITIGATION:

• The first step is to determine a baseline to understand the level, type and frequency of emissions being produced.
• Once the baseline is established, options to control emissions are assessed to determine their technical and economic feasibility (cost-effectiveness).
• Depending on available budgets, the most cost-effective actions are taken.
• Emissions can be avoided by utilizing best practices in greenfield applications; they can be reduced by actions taken at existing operations.

EMISSION ESTIMATE:
N/A. Emissions reductions will vary depending on the actions taken.

COST-EFFECTIVENESS:
Can vary greatly depending upon the actions taken.

SECONDARY EFFECTS:
Understanding what GHG emissions are produced may also lead to identification of unnecessary emissions of other pollutants.

ISSUES ASSOCIATED WITH IMPLEMENTING ACTION

• Employees may be reluctant to change their work customs (i.e., to telecommute, carpool, etc.); utilities may need to restructure policies to allow flexible work schedules where appropriate and possible.
• Incentive mechanisms operate differently—how do utilities offer incentives to themselves (as they can, for example, to customers)?
• Processes/products may be selected on a lowest (initial) cost basis—even though efficient products that have a higher up-front capital cost may have a significantly lower life-cycle cost.
• One incentive for utilities to participate in such an effort would be the knowledge that controlling or reducing GHG emissions would yield future credit for having taken the action.

RESOURCES

• Information on the Climate Challenge Program, including background documents, sample memoranda of understanding and names/details of participants, can be found online at http://www.eren.doe.gov/climatechallenge/factsheet.htm.
• The Centre for Analysis and Dissemination of Demonstrated Energy Technologies (CADDET) provides information on relevant programs at an energy efficiency website, http://www.caddet-ee.org.
• U.S. Environmental Protection Agency sponsors a series of EnergyStar programs to encourage the production and use of energy efficient appliances.

CONTACTS

U.S. Department of Energy
Energy Information Administration
Voluntary Reporting of Greenhouse Gases Program
Washington, DC
Tel: (800) 803-5182
infoghg@eia.doe.gov
http://www.eia.doe.gov/oiaf/1605/

U.S. Environmental Protection Agency Energy Star Programs
Washington, DC
Tel: (202) 233-9002
http://www.epa.gov/energystar.html