96 IEEE power & energy magazine january/february 2008

RRELIABLE AND AFFORDABLE. FORelectric companies, those have alwaysbeen the two goals above all others toachieve when it comes to meeting theircustomers’ demand for electricity. Andsince Thomas Edison founded theindustry 125 years ago when he openedhis Pearl Street Station in lower Man-hattan, we have taken great pride in ourrecord in achieving them.

We also are proud of our record inpursuing a third goal that is becomingmore and more important each year—meeting the demand for electricity in anenvironmentally sensitive manner. Theindustry’s principal air emissions aredown dramatically since 1980. Sulfurdioxide (SO2) emissions have dropped bymore than 40%, and nitrogen oxide (NOx)emissions are down by about 45%. As aside benefit, mercury emissions have alsobeen cut by about 40%. Perhaps surpris-ingly, the industry’s use of coal as a fuelsource for generating electricity hasincreased 75% during this period.

With Congress now consideringclose to a dozen bills to address thecountry’s carbon dioxide (CO2) andother greenhouse gas (GHG) emis-sions, and with the demand for electric-ity expected to rise by 40% over thenext 25 years, electric companies arepursuing a variety of short- and long-term strategies to continue makingprogress on all three goals in the future.These strategies are based on the devel-opment and deployment of a full suiteof advanced technology options.

Today’s ActionsIn the short term, we will continue tomake significant reductions in emis-sions from our fossil fuel plants. TheClean Air Interstate Rule (CAIR),issued by the EPA in 2005, will perma-nently cap emissions of SO2 and NOx

in the eastern United States. CAIR willreduce SO2 and NOx emissions in twophases—first in 2010 (2009 for NOx)and again in 2015. Upon full imple-mentation, CAIR will reduce SO2

emissions by over 70% and NOx emis-sions by over 60% from 2003 levels.

The EPA’s Clean Air Mercury Rule(CAMR) sets a declining national capon mercury emissions in two distinctphases, 2010 and 2018. The first phasecap is 38 tons beginning in 2010, with afinal cap set at 15 tons beginning in2018. When fully implemented, this willreduce electric utility mercury emissionsby nearly 70% from 1999 levels.

CAVR, the Clean Air VisibilityRule, is intended to improve visibilityin national parks and wilderness areasby reducing haze. States with protectedareas must develop their implementa-tion plans by December 2007. They arerequired to identify older industrialfacilities and power plants that affectvisibility in the federal areas and thenset emissions limits for those facilitiesthat can be achieved using emissioncontrols known as best available retrofittechnology, or BART. States that adoptthe CAIR cap-and-trade program forSO2 and NOx are allowed to applyCAIR controls as a substitute for con-trols required under BART because,

according to EPA, the CAIR controlsare “better than BART.”

Another short-term strategy is toexpand the role of energy efficiency.Energy efficiency has been and willremain a crucial vehicle for helping cus-tomers get more use out of every kilo-watt-hour of electricity generated. Now,by adopting innovative technologiessuch as “smart” meters and plug-inhybrid electric cars, energy efficiencycan deliver even more value and envi-ronmental protection.

The industry also recognizes thatthe time has come to integrate efficien-cy with its planning and operations.Electric companies realize that becauseof their unique role as energy providers,they are the logical candidate to pro-mote efficiency to their customers.Electric companies also have the scopeand scale to make a difference in pro-moting efficient technologies, and theycan do so at a favorable cost of capital.

The Edison Electric Institute (EEI)and its member companies are nowengaged with federal agencies, state regu-lators, industry allies, and other stake-holders to transform the role of energyefficiency within the electric powerindustry. To assist this effort, EEI’s Boardof Directors recently formed the Institutefor Electric Efficiency (IEE). This neworganization will act as a forum to pro-mote best energy-efficiency practicesamong electric utilities, to develop aresource base of regulatory models, andto convene conferences and seminars to

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emission reductionbuilding an environmentally sound future

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january/february 2008 IEEE power & energy magazine 93

promote the sharing of information, ideasand experiences in energy efficiency inthe power sector. The new institute willwork closely with the Electric PowerResearch Institute (EPRI), which isfocused on how utilities and their cus-tomers can best use technology toincrease their efficient use of electricity.

In the FutureLonger term, we are advocating publicpolices and developing advanced coaltechnology plants to address both airand GHG emissions. Our public policyfocus is ensuring that any legislationCongress adopts to reduce the coun-try’s CO2 emissions be technologybased, economy wide, and protect con-sumers and the nation’s economy.

A “safety valve” or upper limit onthe price that a regulated entity wouldhave to pay for carbon emissionallowances is critical. A safety valve isessential for limiting economic harm toelectricity customers and the nation andfor protecting the country’s internationalcompetitiveness. The safety valve alsoshould be set at a reasonably low level.This would still enable it to send a pricesignal, while eliminating price volatility.

To reduce the GHG emissions fromcoal plants significantly, however, willrequire technology that can capture,transport, and store their CO2 emis-sions. And to develop these technolo-gies will require an aggressive andsustained commitment by the industryand policy makers. But doing so will bevery costly. And before they can beused on a large scale, these technologieswill require that we as a nation create acommercial track record for them.

There are also significant legaland regulatory issues to address sur-rounding procedures for siting andpermitting these plants. Consequent-ly, it is vital that any legislative dead-lines for capturing and storing carbonbe consistent with the availability oftechnology for doing so.

The industry has already begun todeploy a variety of advanced coalplants to reduce air emissions. And ithas begun work in developing tech-

nologies for capturing carbon emis-sions. Listed below are examples bytechnology type.

Integrated gasification combinedcycle (IGCC)

✔ At present, there are two operat-ing IGCC power plants in theUnited States: the 260-MW plantowned by TECO Energy in PolkCounty, Florida, and a 292-MWfacility in West Terre Haute,Indiana, which was recently soldby Duke Energy to the WabashValley Power Association.

✔ Duke Energy and Vectren Ener-gy Delivery of Indiana have filedan application with the IndianaUtility Regulatory Commissionto construct an approximately630-MW IGCC plant in Edward-sport, Indiana.

✔ American Electric Power (AEP)is seeking regulatory approval tobuild commercial-scale IGCCplants in West Virginia and Ohio.

✔ Edison International and BPhave proposed a 500-MW IGCCplant in Carson, California, thatwould use petroleum coke pro-duced at California refineries.The captured CO2 would betransported by pipeline to an oilfield and injected into reservoirrock formations thousands offeet underground, both stimulat-ing additional oil production andpermanently trapping the CO2.

Circulating fluidized bed (CFB)✔ Dominion Virginia Power, a sub-

sidiary of Dominion, has submit-ted an application with the statefor permission to build a 585-MW CFB plant in Wise County.The primary fuel would be coal,with the potential to burn up to20% biomass.

✔ Cleco Corp., based in centralLouisiana, has announced that itwill build a 600-MW CFB plantthat will use petroleum coke, aby-product of the oil-refiningprocess, and other solid materi-als as its fuel source. The plant isscheduled to open in mid-2009.

Supercritical pulverized coal✔ AEP is planning a 600-MW

ultra-supercritical pulverizedcoal plant in Arkansas.

✔ MidAmerican Energy Co. iscompleting an advanced 790-MW supercritical power plant atits Council Bluffs Energy Centerin Iowa.

✔ Duke Energy Carolinas is planningto construct an 800-MW supercriti-cal plant in North Carolina.

Carbon capture and storage (CCS)✔ The nation’s electric companies

also are advancing a number ofCCS projects. AEP announcedthree separate CCS projects.AEP will install a chilled ammo-nia post-combustion project onits 1,300-MW Mountaineer Plantin New Haven, West Virginia, in2008. The 30-MW product vali-dation will capture up to 100,000metric tons of CO2 per year thatwill be stored in deep salineaquifers at the site.

Following the validation at Moun-taineer, AEP plans to install a chilledammonia post-combustion system onone of the 450-MW coal-fired units atits northeastern station in Oologah,Oklahoma, in late 2011. The system isexpected to capture about 1.5 millionmetric tons of CO2 a year that will beused for enhanced oil recovery.

AEP also plans to conduct a feasibili-ty study of oxy-coal combustion technol-ogy. Following a pilot demonstration,AEP will select an existing AEP plantsite for commercial-scale installation.The oxy-coal combustion technology isexpected to be in service on an AEP plantin the 2012–2015 period.

Milwaukee-based We Energies is con-ducting a yearlong demonstration of achilled ammonia system at its 1,210-MWpower plant in Pleasant Prairie, Wiscon-sin. During this time, EPRI will conductan extensive test program to collect dataand evaluate technology performance.Results of the demonstration project areanticipated to be published in late 2008.

FirstEnergy Corp. is planning pilot-scale testing of an electro-catalytic

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oxidation technology at its R.E. BurgerPlant in Shadyside, Ohio, by early 2008.Once captured, the CO2 will be trans-ported to an 8,000-foot test well that wasdrilled at the Burger Plant earlier thisyear and then sequestered underground.

FutureGenThe electric power industry is alsoworking with the U.S. Department ofEnergy (DOE) in a program that willintegrate the carbon capture and stor-age technologies. This program, calledFutureGen, is a $950-million initia-tive—with $700 million coming fromthe federal government and the restfrom industry—to build a commercial-scale coal-fired power plant that hasnear zero emissions.

The program goals are to captureand store more than 90% of a 275-MW pilot plant’s CO2 emissions, withthe potential for almost 100%. In addi-tion, the plant will

✔ remove more than 99% of itsSO2 output

✔ cut NOx emissions to less than0.05 pounds per million BTU

✔ reduce particulate releases to lessthan 0.005 pounds per million BTU

✔ eliminate more than 90% of themercury emissions

✔ have an availability factor ofmore than 85%.

With groundbreaking set for 2009and initial operation planned for 2012,the new plant will rise at one of foursites in either Illinois or Texas. TheDOE has indicated that it will announceits decision in November 2007.

The nation’s electric companies alsoare continuing their voluntary efforts toreduce GHG emissions with the federalgovernment. Since 1994—when EEIjoined with then Vice President Al Goreand the DOE in the Climate Chal-lenge—the electric utility industry hasled all other industrial sectors in reduc-ing GHG emissions. In fact, the indus-try’s voluntary efforts in the year 2000alone eliminated an estimated 237 mil-lion metric tons of CO2 emissions—

nearly two-thirds of the total reductionsand offsets reported to the governmentthat year. Through various programsnow under way—including Power Part-ners, the Asia-Pacific Partnership onClean Development and Climate (APP),and individual company efforts—thatcommitment continues today.

The long-term goal of the APP is toestablish an information flow betweenthe member nations on engineeringconcepts and best practices’ experi-ences of new coal-based plant tech-nologies, such as IGCC units, and therelated issues of CCS.

In November 2006, AEP, SouthernCompany, and TECO Energy hostedpower plant site visits for more than100 utility executives and governmentofficials from the participating nations.The weeklong series of visits createdthe opportunity to share informationand ideas on building cleaner, morefuel-efficient, coal-based power plants.This visit was followed by AEP,Alliant, Ameren, and Southern Compa-ny attending a site visit last April inJapan, which focused on ultrasupercrit-ical coal-based power plants. And thispast August, Duke Energy and FirstEnergy held the second U.S.-based sitevisit. This focused on pumped storageand hydropower technologies.

More site visits are now being organ-ized through the Edison Foundation, anonprofit organization dedicated tobringing the benefits of electricity tofamilies, businesses, and industriesworldwide. The site visits will focus ona variety of technologies to reduce car-bon emissions, including pumped stor-age/hydro, preventative maintenance/optimization, renewable energy, energyefficiency/demand side management,and transmission and distribution.

The country’s demand for an afford-able, reliable, and environmentally sen-sitive electricity supply continues togrow. So too do the challenges in sup-plying it. But we are confident that ourexperience and commitment, coupledwith advanced technologies and thesupport of our stakeholders, will giveus the foundation we need to see thejob through. p&e