Power Plant Issues appa discussion June 28 2006

Power Plant Issues APPA Discussion

• June 28 2006

• J.E. Fulton

• CPS Energy

CPS Plans to Add a New Coal Unit

• Type : Pulverized Coal, Hybrid Pressure (2520 psi, 1050 oF, 1050 oF)

• Location: Calaveras Lake

• Fuel: Powder River Basin Coal

• Size: 750 MW

• Heat Rate: 9,300 BTU/KWH

• Proposed Permit Levels (annual averages)

• SO2 - 0.06 Lb/MMBTU (wet limestone scrubber)
• NOx - 0.05 Lb/MMBTU (SCR)
• PM - 0.022 Lb/MMBTU (fabric filter) (collectibles + condensables)
• Hg - 0.00002 Lb/MWH (oxidation and/or sorbent injection)

CPS’ Approach to Licensing

Summary of CPS Licensing Approach for New Coal Unit

• Began with some of the lowest emission rate coal units in the U.S.

• Exemplary emissions performance of corporate coal fleet

• Began strategic energy planning process well in advance of need. CPS strategic energy planning project has been in progress 5+ years now. New coal unit a major element of the process. Board adopted strategic energy plan on June 30, 2003

• Involved the public early on – Public involvement began 3.5 years ago

Summary of CPS Licensing Approach for New Coal Unit

• Went well beyond Best Available Control Technology (BACT) levels for new coal unit

• Provided offsets for emissions from the proposed coal plant

• Applied Mercury Maximum Available Control Technology (MACT) as originally proposed

• Added renewables and conservation to the strategic energy portfolio

• Took, and continue to take, message to the community

Sample of Public Involvement

• Citizens Advisory Committee (CAC)

• Frequent updates since 2001

• Southeast Quadrant Citizens’ Advisory Group

• More than 20 meetings since October 1, 2002

• Environmental Health Oversight Committee

• 11 meetings since December 2, 2003

• All these groups continue to meet for periodic updates

• Public has provided substantive input

• CPS adopted public input as commitments to Community

Sample of Public Involvement

• Five Town Hall Meetings

• 4/6/04 Ed White Middle School
• 4/8/04 John Marshall High School
• 4/13/04 Sam Houston High School
• 4/15/04 John F. Kennedy High School
• 4/27/04 East Central High School

• TCEQ Public Meeting

• December 16 2004

Timeline of Major Events

• Spring 2001 – Internal committee Comprehensive Energy Resource Coordination and Implementation Team (CERCIT) established to identify energy options and develop strategic energy plan

• October 2002 – Established Southeast Quadrant Citizens Advisory Group (SEQCAG)

• June 30, 2003 – CPS Board gave approval to proceed with the strategic energy plan including the new coal unit

• November 21, 2003 – Permit application submitted to TCEQ

Timeline of Major Events

• January 12, 2004 – TCEQ finds permit application to be administratively complete

• November 5, 2004 – TCEQ issues draft permit. This process took more than 1 year from initial application and the draft permit had only minor changes from the application

• December 16, 2004 – TCEQ holds public meeting on draft permit at East Central High School

• May 18, 2005 – Contested hearing – determination of party status and adoption of schedule

Timeline of Major Events

• May 18–Sept 12, 2005 Discovery and Deposition period

• Sept 30, 2005 CPS files its direct case and provides witness list

• Oct 24, 2005 Opposition files its direct case and provides witness list

• Nov 9, 2005 Objections to direct cases due

• Nov 28, 2005 Prehearing conference

• Dec 5–9, 2005 Hearing on merits

• Jan 16, 2006 File closing arguments and briefs

• March 27, 2006 Record of Decision (expected)

• Dec 5, 2006 – Hearing settled!

• Dec 28, 2006 – Permit Issued!

CPS’ Key Environmental Commitments to the Community

• Use of Best Available Control Technology on new unit

• Enhance coal yard environmental controls

• Reduce existing emissions so there will be no net increase in aggregate emissions as a result of new unit going on-line

• 10% renewables commitment by 2015 (~ 600 MW)

• Increase spending on conservation programs

• Enhanced air quality monitoring program around plant

• Community environmental health awareness program

• New Unit will be brought under Ch. 117 NOx cap

• Additional emissions reductions from existing units so there will be a substantial net decrease in aggregate emissions after new unit goes on-line

Approximate Overall Pollutant Control Levels Relative to Uncontrolled Emissions

• Following Environmental Upgrades Program and Installation of New Coal Unit

• Particulate Matter >99.8%
• Sulfur Dioxide 90 – 95%
• Nitrogen Oxides 85 – 90%
• Mercury 85 – 90%

The End

• Questions?

Selected Demographic Data for Bexar County (CPS Service Territory)

• Population (3/1/00) 1,392,931

• Population Rank 24

• Population Growth Rate 17.5% per decade

• Population Breakdown

• Hispanic 54.3%
• White 36.0%
• Black 7.2%
• Other 2.5%

• Median Age 32.1

Selected Demographic Data for Bexar County (CPS Service Territory) con’t

• Median Household Income $32,374

• Personal Income per capita $23,852

• Personal Income % of National Avg. 87.7%

• Persons Below Poverty Level 247,843