epcor voluntary action plan 1999

7/27/2019 EPCOR Voluntary Action Plan 1999

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Voluntary Action Plan 1999

Produced for

Canada's Climate ChangeVoluntary Challenge & Registry Inc.

October 31, 1999


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TO THE READER

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TABLE OF CONTENTS

1. Executive Summary....................................................................................................................... 1

2. Organization Profile ......................................................................................................................2

3. Senior Management Support........................................................................................................ 23.1 Signed Statement of Endorsement ....................................................................................................23.2 Internal Practices and Management Systems Dealing With Climate Change ........... ........... ........... ..3

4. Base Year Quantification..............................................................................................................34.1 Methodology .....................................................................................................................................34.2 Quantification....................................................................................................................................4

5. Projection .......................................................................................................................................55.1 Methodology .....................................................................................................................................55.2 Quantification....................................................................................................................................5

6. Target Setting.................................................................................................................................56.1 Targets...............................................................................................................................................56.2 Process for Target Review and Update.............................................................................................5

7. Measures to Achieve Targets........................................................................................................67.1 List of Key Activities / Projects ........... ........... ........... ........... ........... ........... ........... ........... ......... .......6

Description of Reduction Projects: ......... .......... ........... .......... .......... ........... .......... ........... .......... 6 ONGOING PROJECTS:.............................................................................................................6

NEW PROJECTS: ........... ........... .......... .......... ........... .......... ........... .......... .......... ........... .......... .10

7.2 Estimated Impact of Activities and Projects............... ........... ........... ........... ........... ........... ........... ...11

8. Results Achieved .......................................................................................................................... 118.1 Current Reporting Year...................................................................................................................118.3 Verification .....................................................................................................................................148.4 Offsets .............................................................................................................................................14

Projects.....................................................................................................................................14

9. Education, Training, and Awareness ......................................................................................... 169.1 Our Corporate Response to Climate Change Issue ........... .......... .......... .......... ........... .......... .......... .169.2 Climate Change and Our Employees ..............................................................................................169.3 Climate Change and our External Contacts......... ........... .......... .......... ........... .......... .......... ........... ...17

GEMCo.....................................................................................................................................17

Electric Vehicle Program ......... ........... ........... .......... ........... .......... ........... .......... ........... ........... 17

North Sun 99 .............. .......... ........... .......... .......... ........... .......... .......... .......... ........... ........... .....17

Other.........................................................................................................................................18

9.4 Other Public Education on Climate Change............... ........... .......... ........... .......... ........... .......... ......18

TABLE OF FIGURES

Figure 1: Summary of Progress ..............................................................................................................................1Figure 2: Actual Emissions vs Baseline Emissions ........... .......... ........... ........... .......... ........... ........... .......... ........... 4Figure 3: Program Performance............................................................................................................................11

Table 1: Emissions Produced (Million tonnes per year).........................................................................................4Table 2: Offset and Reduction Targets .......... ........... ........... .......... ........... .......... ........... .......... ............ .......... ......... 5Table 3: Forecasted Impact of Reduction Projects ........... .......... ........... ........... .......... ........... ........... ........... .........11Table 4: Results Achieved by Reduction Programs..............................................................................................12Table 6: Results Achieved with Offset Programs............. .......... ........... ........... .......... ........... ........... .......... .........14


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Page 1

1. Executive Summary

EPCOR is a utility that provides electricity, water and technological solutions in the provinceof Alberta and Canada. EPCOR's three generating stations use fossil fuel for electricalgeneration. The combustion of fossil fuels results in greenhouse gas emissions.

In 1994, EPCOR committed to reducing net greenhouse gas emissions to the levels that wereemitted in 1990. To accomplish this goal, the initial target was to reduce and offset carbondioxide emissions by 1,000,000 tonnes per year.

The measures taken by EPCOR to achieve our goal include several offset and reductionactivities. Some of the projects currently being conducted include water conservation andenergy efficiency initiatives, wood pole recycling, landfill gas utilization, solar power,R-2000 energy efficient homes, and the sale of flyash. The emissions reduced by theseprojects are used to mitigate the greenhouse gas emissions of the company.

Our program of reductions and offsets now totals 1,126,000 tonnes, surpassing our initial

target of 1,000,000 tonnes, illustrated in Figure 1: Summary of Progress below.

Subsequent to obligations that Canada made in Kyoto, EPCOR established an additionaltarget of achieving a 6% reduction below our 1990 levels in net greenhouse gas emissionsfrom our operations by the first Kyoto budget period (2008-2012). This commitmentincludes a 100% offset or reduction of emissions from new generation projects.

We have identified several new reduction initiatives including a partnership in a Micro HydroFacility and active participation in emissions trading. Education of ourselves and ourstakeholders on the evolving issue of climate change is ongoing. EPCOR will continue togive support to the community through environmental programs and initiatives such as

Energy Awareness Week, Environment Week, and EcoFile, a provincial public radioprogram focusing on sustainability.

Figure 1: Summary of Progress

Summary of Progress

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1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000

CarbonDioxideEmissions(Millionsoftonnesperyear)

Baseline Emissions Net Impact with reductions + offsets Initial Target


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2. Organization Profile

EPCOR is an integrated utility comprised of several business units that provide potablewater, electricity, and associated services to the Province of Alberta and Canada.

EPCOR was previously the parent company of Edmonton Power, Aqualta and Eltec,

providing the services outlined above. In 1999, due to deregulation, these companies havebeen unified under a single brand of EPCOR. For the purposes of this VCR Report, allprevious initiatives of the separate companies are now referred to as EPCOR initiatives.

EPCOR is the second largest electricity generator in Alberta, operating three generatingstations with a total gross generating capacity of 1,701 megawatts. In 1998, EPCOR'sconsolidated net income was $121 million, total revenue was $978 million, and total grossassets were $2.2 billion. EPCOR employs 1,700 people.

All three of EPCOR's generating stations use fossil fuel for electricity generation.Environmental impact associated with the combustion of fossil fuel is the release of carbon

dioxide, methane and nitrous oxide, three known greenhouse gases.

3. Senior Management Support

3.1 Signed Statement of Endorsement

In 1995, the Canadian Electricity Association signed aMemorandum of Understanding withNatural Resources Canada, committing Canadas electric power industry to a voluntaryprogram to reduce and offset carbon dioxide emissions.

As a signatory to this document, EPCOR endorsed this program, setting our initial target at1,000,000 tonnes per year of carbon dioxide emission reductions and offsets.

Climate change is a serious risk to all of us and requires an appropriate response. We atEPCOR remain committed to voluntary action to respond to this risk. We see CanadasVoluntary Challenge and Registry as a good opportunity to balance our economy and ourenvironment in a sustainable way.

In 1998, we re-evaluated our Climate Change Program in light of the commitments thatCanada made in Kyoto. We have established a new target of achieving 6% below 1990greenhouse gas emission levels during the first Kyoto budget period (2008 - 2012). Thiscommitment includes 100% offset of emissions from new generation projects. We arepleased to offer this progress report outlining our continuing voluntary programs andinitiatives in support of Canadas National Objectives.

Don LowryPresident and CEOEPCOR


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3.2 Internal Practices and Management Systems Dealing With Climate Change

EPCOR has a team whose main focus is climate change mitigation. The purpose of this teamis to identify new projects that will reduce our greenhouse gas emissions, recording andimplementing projects, and educating the company on new advances and challenges relatedto the climate change issue.

EPCOR is committed to annual reporting to the Voluntary Challenge and Registry Inc. andthe Canadian Electricity Association's Environmental Commitment and ResponsibilityProgram. The results of these reports are internally audited each year.

To ensure the environmental practices are upheld throughout EPCOR, frequent reporting tosenior management is conducted (see Section 6.2). This includes annual goal setting,emissions tracking and an employee financial incentive program (see Section 9.1).

The strength of the EPCOR's environmental management systems allowed our Clover Barand Rossdale Generating Stations to become the first two fossil fuel power plants in Canada

to achieve ISO 14001 registration. Our Genesee Generating Station is slated to be ISO 14001registered by the end of 1999.

4. Base Year Quantification

4.1 Methodology

In order to set a realistic target for reductions and offsets, we first had to calculate our 1990baseline emissions and forecast those levels to the year 2000. Reduction and offset targetswere derived from this projection.

The situation was complicated by the construction of the second generating unit at theGenesee Generating Station. This unit, originally targeted for construction in the early

1980s, was not completed until 1994. Had it been completed when originally planned andapproved, the added emission impact would have been included in our 1990 baselineemissions. Including Genesees total output in our baseline effectively increases our 1990emission levels by approximately 2.9 million tonnes per year of carbon dioxide, as illustratedin Figure 2: Actual Emissions vs. Baseline Emissions below.

This year the baseline has been adjusted to include methane and nitrous oxide emissions fromour operations. To calculate the carbon dioxide emissions produced by our generatingstations, factors from the Environment Canada publication, Canada's Greenhouse GasInventory, 1997 Emissions and Removals with Trends were used. To calculate the carbondioxide produced when coal is combusted, the heat rate and electrical energy rate of the plant

was used. The factors used to convert methane and nitrous oxide to an equivalent amount ofcarbon dioxide are 21 and 310 respectively.


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Figure 2: Actual Emissions vs Baseline Emissions

19901991

19921993

19941995

19961997

19981999

2000

Actual Emissions

Baseline Emissions

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1

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Carb

onDioxideEmissions(Million

tonnesperyear)

Actual Emissions vs Baseline Emissions

Actual Emissions Baseline Emissions

4.2 Quantification

Table 1: Emissions Produced (Millions of tonnes per year)

Type of Emission 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000

Carbon Dioxide (CO2) 3.425 3.596 4.614 4.372 7.021 7.212 7.494 7.676 8.776

Methane (CH4) 0.001 0.001 0.001 0.001 0.002 0.002 0.020 0.002 0.003

Nitrous Oxide (N2O) 0.024 0.025 0.033 0.031 0.049 0.051 0.053 0.054 0.062

Total 3.450 3.622 4.647 4.404 7.072 7.265 7.567 7.732 8.841

Baseline Emissions 7.367 7.367 7.367 7.367 7.367 7.367 7.691 7.955 8.097 8.138 8.280


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5. Projection

5.1 Methodology

In this report, EPCOR's definition of a reduction project is one in which the methods ofcalculation and accounting principles are well developed and generally accepted. An offsetproject is one where the methods of calculation and accounting principles are still being

developed.

A conservative approach is used when calculating the values projected to the year 2000. Ifan initiative is expected to continue reducing emissions to the year 2000, it is assumed thatthe amount of carbon dioxide reduced this year can be forecasted to subsequent years.Factors and assumptions stated in Section 4.1 of this Report are also used when calculatingthese projections.

5.2 Quantification

EPCOR owns three generating stations: Clover Bar, Rossdale, and Genesee. These are thethree major sources of emissions from our company. Clover Bar and Rossdale use naturalgas and Genesee uses coal to generate electricity. As a result, these plants produce carbondioxide (CO2), methane (CH4), and nitrous oxide (N2O) as outlined in Table 1, Section 4.2.

6. Target Setting

6.1 Targets

Each year our Executive Council and Board of Directors set a target for emission reductionsand offsets. Our overall objective is to maintain our initial reduction and offset target of1,000,000 tonnes per year. For 1999, our target was 30,000 tonnes. Our progress to date isoutlined in Table 2.

Table 2: Offset and Reduction Targets

OBJECTIVE(tonnes)

OFFSET / REDUCTIONACHIEVED

(tonnes)

1996 70,000 78,000

1997 140,000 261,000

1998 100,000 104,000

1999 to Date 30,000 125,000

6.2 Process for Target Review and Update

Progress towards our objectives and targets is measured and reported monthly to seniormanagement and quarterly to our Executive Council and Board of Directors. A portion ofannual compensation to all employees depends upon our overall success in achieving theseobjectives.


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7. Measures to Achieve Targets

7.1 List of Key Activities / Projects

To reach our projected target we have numerous ongoing projects, as well as new projectsthat are being pursued. Projects that are under evaluation or in the early stages ofdevelopment are not counted against our emissions.

Ongoing Projects:

Water Efficiency Initiatives

Customer Energy Awareness

Internal Energy Efficiency Initiatives

EnVest Alberta

Flyash Sales

Landfill Gas Operations

Alberta R-2000

Small Power Research & Development Program

Wood Pole Recycling

New Projects:

Micro Hydro Facility Partnership

Emissions Trading

Green Power

Description of Reduction Projects:

Reduction values show the amount of carbon dioxide emissions reduced forecasted to the

year 2000.

ONGOING PROJECTS:

Water Efficiency Initiatives

Reduction: 72,000 tonnes/year

When water is conserved, considerable energy is saved through reduced pumping, treatment,distribution and sewage treatment after use.

Since 1990, EPCOR water conservation programs have allowed us to defer the expansion ofour E.L. Smith Water Treatment Plant. In addition, a smaller water treatment facility locatedwithin our Rossdale Water Treatment Plant site was shut down in 1994.

Customer Energy AwarenessReduction: 145,000 tonnes/yearElectricity demand can be reduced by providing our customers with information about thewise use of energy.

We conduct awareness programs promoting efficient energy and water use with ourcustomers through seasonal newsletters distributed with bills, trade shows and other publicevents. EPCOR is a major sponsor of both Energy Awareness Week and Environment Week.


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For a number of years we have placed co-op engineering students from the University ofAlberta with some of our larger industrial customers. These students work for our customersin their facilities and identify ways to improve energy use. When these projects areimplemented, emissions reductions are realized.

In 1998, we placed a Co-op Engineering Student in the Physical Plant facilities of theUniversity of Alberta to assist that institution in identifying energy efficiency opportunities.This work identified ongoing and new efficiency options.

Internal Energy Efficiency InitiativesReduction: 39,000 tonnes/yearThe thermal efficiency of EPCOR's three generating stations has been improved through aseries of initiatives, including:

Recalibration

Tuning

Enhanced maintenance

On-line performance monitoring

In 1996, training of our generating station staff was conducted in order to enhance theirsensitivity to technical issues that can affect heat rate.

In 1997, we undertook a program to identify and evaluate additional cost-effective methodsof heat rate improvement that can be implemented at our facilities.

In 1997 and continuing in 1998, we conducted specialized energy efficiency training for ouroperations personnel. This training enhances the ability of staff to identify opportunities forimproving efficiency in their day-to-day operation of our generating facility.

EnVest AlbertaReduction: 21,000 tonnes/year

EPCORs corporate headquarters has been transformed into a model of energy efficiency. In1995, the building was retrofitted with over 18 energy saving innovations. This has resultedin energy reductions of almost 50%, saving the building over $200,000 per year.

These services are now offered to our commercial customers through theEnVest Albertaprogram. EnVestoffers a complete package of services to our commercial customers,including:

Energy savings assessments

Pre-qualified listing of energy service companies

Financing

Utility bill repayment plans

Monitoring post program performanceEnVestis presently working with morethan 30 customers and has completed a number of contracts.


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EnVestAlberta would like to publicly acknowledge the leadership and vision demonstratedby the following new customers who participated in this program in 1998:

Agora Food Merchants-Data Centre

Bedford Holdings

CKER Radio

Clareco Industries

Ericksen Infiniti Nissan

Foothills Creamery

Ford Motor Company of Canada

Manulife Financial

Mountbatten Apartments

Pleasantview IGA

GKC Financial

Can Con Gas

Good Will Industries

FlyashReduction: 19,000 tonnes/yearOne form of ash produced by coal-fired power plants is called flyash. Flyash has manyproperties similar to cement and can be used to displace limestone in concrete production.When this is done, energy used to produce the cement is significantly reduced, resulting inlarge carbon dioxide reductions.

In 1998, EPCOR produced 402,000 tonnes of flyash and sold 38,000 tonnes of ash forcement production. This represents a net carbon dioxide reduction of 18,850 tonnes. EPCORhas contracts for flyash sales that are expected to increase emissions reductions to 22,000

tonnes per year by 2000.

Landfill Gas RecoveryReduction: 202,000 tonnes/yearDecomposing garbage produces methane gas. Starting in 1992, the methane gas from theClover Bar Landfill has been collected, purified and routed to the Clover Bar GeneratingStation to augment the natural gas fuel supply. In 1996, the supply of methane gas to thegenerating station was 8,014,000 cubic metres.

EPCOR purchased the collection, purification and distribution system in 1996. Since then,process improvements have increased the output of the operation to 28,000,000 cubic metres

in 1998, with a total carbon dioxide reduction of 202,000 tonnes per year.

Alberta R-2000Reduction: 2,300 tonnes/year

TheR-2000 program was developed in the early 1980s to promote energy efficient newhomes and is a co-operative initiative of the Canadian Home Builders Association andNatural Resources Canada.


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Since its initiation, theR-2000 program focus has broadened to include:

energy efficiency

lighting and appliances

indoor air quality

water conservation

recycled construction material

To qualify as anR-2000 home, a new house must be built to theR-2000 technical standards,pass an audit and be certified. On average there are tenR-2000 homes certified in Albertaeach year.

Our sustainable development objectives are complimentary to theR-2000 program. In 1996,EPCOR became a full partner in theAlberta R-2000 program and in 1998 became a memberof theAlberta R-2000 Steering Committee. The strong synergies from our partnership areyielding significant water and energy efficiency improvements in the new home sector.

Alberta R-2000 has agreed to EPCOR receiving all carbon dioxide reductions accrued by theProgram for each year of our participation.

Small Power Research and Development ProgramReduction: 106,000 tonnes/yearIn 1992, the Alberta Government initiated the Small Power Research and DevelopmentProgram to promote renewable electrical energy sources in Alberta. The Program has addedapproximately 108 MW of renewable power from wind, biomass, and hydro sources, to theAlberta Interconnected System. This energy displaces power produced from conventionalfossil fuel sources and therefore effectively reduces the carbon dioxide emissionsprovincially.

The program is paid for by all Albertans through the power pool system. EPCORs share isapproximately 20% of this program, representing a carbon dioxide reduction of 106,000tonnes per year.

Wood Pole Recycling ProgramReduction: 21,000 tonnes/year

In August 1996, EPCOR entered an agreement with Moen Lumber Sales of Edmonton, torecycle used cedar power poles. The recycled wood displaces virgin lumber in the retailmarket. This initiative has a number of positive environmental effects:

discarded power poles are no longer sent to landfill

fewer cedar trees are harvested

energy consumption associated with harvesting is reduced

Each year approximately 600 wood poles are recycled though this program. This year 638poles were recycled. These activities result in carbon dioxide reductions of 20,505 tonnes peryear.


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NEW PROJECTS:

Micro HydroEPCOR has formed a partnership with Canadian Hydro Developers Inc. to develop a 13 MWmicro hydro project in Southern Alberta. The energy produced by this project will displacepower generated from conventional fossil fuel sources and therefore effectively reduce the

carbon dioxide emissions provincially. As part of our arrangement with Canadian Hydro, allemission reductions associated with the project will accrue to EPCOR.

This project is expected to be commissioned and in full service in mid-2000.

Emissions Trading

There are a number of emissions trading models currently vying for general acceptance.Some companies, including EPCOR, have started to conduct emissions trades in order toestablish appropriate trading models, contract language, and to gain a fundamentalunderstanding of emissions market pricing

This is an evolving market designed to establish a carbon reduction credit trading mechanismfor Canada. It must be clear that no credit exists until the regulator agrees that the certificatescan be cashed-in against some regulatory obligation. Several pro-active companies are nowtrading carbon reduction in order to demonstrate the viability of market mechanisms.

In EPCORs case bi-lateral trading through brokerages, multi-party trading throughcommodities exchanges and joint ventures will be conducted.

Green PowerEPCOR introduced its Green Power Program in July 1999. Green Power customers agree to

pay a premium to ensure that their power is supplied from Eco Logo certified low impact,

alternative source electrical generation. Eco Logo certification is administered under theEnvironmental Choice Program of Environment Canada.

Initially the power in the program is from biomass power generation. Ultimately, theprogram will offer a complete portfolio of green power sources.

Customers can participate in the program at four levels:

ECO-PACK (10% of household power for $5/month),

ECO-PACK Premium (20% of household power for $10/month),

Premium Plus (50% of household power for $20/month), and

Premium Plus (100% of household power for $40/month)

The program is designed to encourage the development of renewable energy options andstimulate their introduction into the marketplace through the identification of a core group ofcommitted customers.


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7.2 Estimated Impact of Activities and Projects

Table 3: Forecasted Impact of Reduction Projects

PROGRAM (tonnes per year) 1999 2000

Water Efficiency Initiatives 72,235 72,235

Capitol Square Solar Power Array 14 14

Customer Energy Efficiency 144,961 144,961

Internal Energy Efficiency Initiatives 46,097 47,624

EnVest Alberta 21,379 21,379

Flyash Sales 18,850 18,850

Landfill Gas Operations 202,003 202,003

Landfill Gas Operations - Upstream Impacts 3,144 3,144

R-2000 1,807 2,317

Small Power Research & Development Program 106,098 106,098

Transmission Losses Management in AIS 1,003 1,003

Wood Pole Recycling - Avoided Landfill 20,505 20,505

Total Emissions Reductions 638,096 640,133

8. Results Achieved

8.1 Current Reporting Year

In 1999, we achieved 125,000 tonnes of new reductions and offsets, surpassing our target of30,000 tonnes. This supports our portfolio of similar initiatives. Our overall program nowtotals 1,125,000 tonnes, exceeding our goal of 1,000,000 tonnes. A detailed account is givenin Table 4 and illustrated in the Program Performance graph.

Figure 3: Program Performance

Program Performance

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1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000CarbonDioxideEmissions(Milliontonnesperyear)

Baseline Emissions Net Impact wi th reductions Net Impact wi th reductions + offsets Init ia l Target


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Table 4: Results Achieved by Reduction Programs

ReductionsPROGRAM (tonnes per year) 1998

Water Efficiency Initiatives 72,224Capitol Square Solar Power Array 14

Customer Energy Efficiency 115,737

Internal Energy Efficiency Initiatives 44,571

EnVest Alberta 19,000

Flyash Sales 18,850

Landfill Gas Operations 202,003

Landfill Gas Operations - Upstream Impacts 3,144

R-2000 1,297

Small Power Research & Development Program 106,098

Transmission Losses Management in AIS 1,003

Wood Pole Recycling - Avoided Landfill 20,505

Total Emissions Reductions 604,445

OffsetsPROGRAM 1998

Tree Initiatives 16,227

W ood Pole Recycling - Displaced Forestry 3,710

Wood Pole Recycling - GWP Impacts 93,338

Wood Pole Recycl ing - Root System Impacts 27,339

Landfill Gas Operations - GWP Impacts 336,672

REAP 9,014

R-2000 Impact on Marketplace 35,213

Total Emissions Offsets 521,513

Total Emission Reductions + Offsets 1,125,958


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Table 5: Carbon Dioxide Emission Inventory

8.2 Interim Years Table 5:CARBON DIOXIDE EMISSION INVENTORY

PROGRAM PERFORMANCE TO OCTOBER 31, 1998

(Tonnes Per Year)

Reductions

PROGRAM 1990 1991 1992 1993 1994 1995 1996 1997

Water Efficiency Initiatives 0 0 0 65,110 71,583 72,136 72,121 72,247 7Capitol Square Solar Power Array 0 0 0 0 0 0 0 10

Customer Energy Efficiency 0 322 924 2,660 14,103 12,534 13,874 15,420 11

Internal Energy Efficiency Initiatives 586 1,256 1,700 2,145 5,769 39,990 41,517 43,044 4

EnVest Alberta 0 0 0 0 753 4,546 9,509 16,069 1

Flyash Sales 0 0 0 0 0 14,310 17,022 27,160 1

Landfill Gas Operations 0 0 85,228 90,660 136,160 137,607 113,492 181,470 20

Landfill Gas Operations - Upstream Impacts 0 0 1,327 1,411 2,119 2,142 1,766 2,824 3

R-2000 0 0 0 0 0 0 486 787 1

Small Power Research & Development Program 0 0 14,695 24,892 48,099 79,548 99,308 107,708 10

Transmission Losses Management in AIS 0 0 0 0 0 0 0 1,003 1

Wood Pole Recycling - Avoided Landfill 0 0 0 0 0 0 8,924 13,387 2

Total Emissions Reductions 586 1,578 103,874 186,878 278,586 362,813 378,019 481,129 60

Offsets

PROGRAM 1990 1991 1992 1993 1994 1995 1996 1997

Tree Initiatives 0 0 0 0 0 2,719 5,665 10,461 1

Wood Pole Recycling - Displaced Forestry 0 0 0 0 0 0 1,614 2,422 3

Wood Pole Recycling - GWP Impacts 0 0 0 0 0 0 41,740 65,032 9

Wood Pole Recycling - Root System Impacts 0 0 0 0 0 0 11,899 17,849 2

Landfill Gas Operations - GWP Impacts 0 0 142,047 151,100 226,933 229,345 189,153 302,450 33

REAP 0 0 0 0 0 0 9,014 9,014 9

R-2000 Impact on Marketplace 0 0 0 0 0 0 14,406 22,408 3

Total Emissions Offsets 0 0 142,047 151,100 226,933 232,064 273,491 429,636 52

Total Emission Reductions + Offsets 586 1,578 245,921 337,978 505,519 594,877 651,510 910,765 1,1


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8.3 Verification

The calculations of the reductions and offsets are internally audited on a yearly basis.This consists of:

confirming baselines

interviewing project managers

re-calculating emissions with updated emission factors

verifying numbers

statistical testing

assessing forecasted numbers, quantifying and explaining differences

8.4 Offsets

Table 6: Results Achieved with Offset Programs

OffsetsPROGRAM (tonnes per year) 1998

Tree Initiatives 16,227W ood Pole Recycling - Displaced Forestry 3,710

Wood Pole Recycling - GWP Impacts 93,338

Wood Pole Recycl ing - Root System Impacts 27,339

Landfill Gas Operations - GW P Impacts 336,672

REAP 9,014

R-2000 Impact on Marketplace 35,213

Total Emissions Offsets 521,513

Projects

Offset values show the amount of carbon dioxide emissions offset by the year 2000.

Tree Planting Initiatives

Offset: 16,000 tonnes/year

Trees remove carbon dioxide from the environment.

In 1995, EPCOR joined with 40 other Canadian and American electric utilities in theUtiliTree consortium. Based on a worldwide search, UtiliTree has invested in sixforestry-based carbon sequestration projects.

One of the goals ofUtiliTree is to promote economically and ecologically sustainableforest management. The projects vary in complexity from basic protection and

reforestation, development and application of different forestry management practices.

In 1996, EPCOR designed the Partnering with Alberta Communities for Trees (PACT)Program. Approximately 20,000 trees were planted in 19 Alberta communities.In addition to carbon sequestration by the trees, other benefits ofPACTinclude thecreation of wildlife habitats, increased energy conservation, and the protection ofwatersheds from erosion. In the spring of 1997, EPCOR's PACTProgram wasrecognized with the presentation of the Trees Canada Foundation Eterne Award.


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In 1997, our work with the Trees Canada Foundation continued with our participation intheLets Root for Canada Program. Our efforts that year resulted in planting another50,000 trees across Canada.

Wood Pole Recycling: Indirect BenefitsOffset: 124,000 tonnes/yearWhen trees are harvested, their root systems remain underground to decompose slowly.This process is analogous to the rotting of wood waste in a landfill.

The Wood Pole Recycling Program prevents the harvesting of approximately 600 trees.This has the effect of reducing the equivalent of 124,000 tonnes per year of carbondioxide emissions resulting from the anaerobic decomposition of root systems.

Alberta R-2000: Indirect Benefits

Offset: 61,000 tonnes/yearR-2000 was initially developed to promote new home development, which went beyondexisting standards, to provide more efficient and comfortable homes. The program hasinfluenced the market, resulting in many new homes exceeding code requirements but notmeeting 100% of theR-2000 technical specifications.

This positive influence creates market desirability and provides a technical basis forhome efficiency improvement, which is progressing outside of the direct context of theProgram. Offsets, from new homes being built to higher efficiency levels than requiredby code, are a result of theR-2000 influence. Within Alberta, these indirect offsets growby an average of 13,000 tonnes per year.

Landfill Gas Recovery: 20-Year HorizonOffset: 337,000 tonnes/year

Greenhouse gases all have different climate change potentials. TheInternational Panelon Climate Change (IPCC) has developed conversion factors that allow the climatechange impacts of these different gases to be compared to carbon dioxide.

The Global Warming Potential (GWP) factor measures the difference in climate changecaused by a specific greenhouse gas over a given period of time, and compares it with theeffects of carbon dioxide over the same period. GWPs for 20, 100 and 500-year horizonshave been developed by theIPCC. To date, there is no scientifically based standardregarding which GWP to use, but it has become common practice to use the 100-yearhorizon. Based on this scale, each tonne of methane that is reduced is the same as 21tonnes of carbon dioxide.

In some instances, it is more appropriate to apply a GWP factor based on a 20-yearhorizon. This is especially true in situations where the duration of an initiative and itsimpact will be observed on a much shorter time horizon. This is clearly the case with theClover Bar Landfill Gas Plant operation. This initiative will be removing methane from


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the landfill for a period of approximately 15 years. Using the 100-year horizon, the GWPfactor significantly under-estimates the positive climate change impact of the project inthe short-term. At the same time, this approach over-estimates the long-term impact ofthe project by spreading reduction impacts over an 85-year period when the plant will nolonger be in operation.

The value of the 20-year horizon GWP factor for methane is 56. When the climatechange impact of the Clover Bar Landfill Gas Plant operation is calculated on this basis,it results in an additional 337,000 tonnes per year of equivalent carbon dioxide offsets.

9. Education, Training, and Awareness

9.1 Our Corporate Response to Climate Change Issue

Our environmental targets and action plans are formulated into an annualEnvironmentalPerformance Index (EPI). Progress is measured and communicated monthly toemployees throughout the company.

AchievingEPItargets is factored into the calculation of employee compensation awardsat the end of each year.

EPCOR introduced its Green Power Program in July, 1999. EPCOR financially rewardsCall Center employees who sell Green Power. More information about Green Power isprovided in Section 7.1.

EPCOR has a sustainable development policy that mandates effective use of resourcesand materials; supporting environmentally sound and sustainable technologies andoperations; the process of continuous improvement; and reporting our environmentalperformance to both our employees and our customers. A quarterly Environmental

newsletter,Essential Balance, is distributed to inform our key stakeholders, describingour environmental performance and new initiatives in our Sustainable DevelopmentProgram.

9.2 Climate Change and Our Employees

In 1996, EPCOR launched a highly innovative employee training program based on CDROM multi-media software. Every employee in our operations areas must undertake thisself-directed training and pass a test. The climate change issue is addressed in a moduleof this training program. Operations personnel at our generating stations also receivespecific training in optimizing operations to improve plant heat rate performance. Thiscan significantly contribute emissions reductions.

Several publications such as: the VCR Report, a company newsletter,Essential Balance,and bulletins on the Intranet are available throughout the company to improve employeeawareness about environmental issues. An update of EPCOR's environmental progress ispresented at the Annual General Meetings for all employees.


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9.3 Climate Change and our External Contacts

GEMCoEPCOR is one of the original seven, western Canadian energy companies that formed theGreenhouse Emissions Management Consortium (GEMCo).

GEMCo is a not-for-profit Canadian corporation created to provide leadership ingreenhouse gas management by:

identifying and developing projects

creating emissions trading methodologies

providing scientific, policy, and technical information

EPCOR is on the Board of Directors ofGEMCo.

Electric Vehicle ProgramElectric power generation is a more efficient method of producing energy thanconventional internal combustion engines. Over the past several years, significantadvances have been made in electric vehicles, batteries and battery charging. Ultimately,electric vehicles will offer reduced emissions per kilometer driven.

EPCOR is the incoming Chair of the Environmental Subcommittee of the InfrastructureCouncil of theElectric Vehicle Association of Canada and is an active member of theElectric Vehicle Infrastructure Council. Through these two bodies, EPCOR will helpbring electric vehicles to the marketplace and reduce carbon dioxide emissions fromtransportation sources at the same time.

North Sun 99

In August 1999, EPCOR was the major sponsor and Co-Chair of the 8th internationalconference on solar energy in high latitudes, North Sun 99. It was the first time thisconference has been held outside of Europe. The meeting also incorporated the 25thAnnual Conference of the Solar Energy Society of Canada.

The conference comprised three streams critical to the development of renewable energy:

Attracting mainstream business;

Developing leading edge technology; and

Engaging the public.

The conference focused on:

Understanding the technological infrastructure;

Economic challenges and commercial opportunities for renewable energy;and

Integration of renewable energy into traditional technologies.


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An integral part of the conference was a public forum on Climate Change focusing onindividual actions that can be taken to positively contribute to Canadas Climate Changeobjectives.

Other

EPCOR was a participant in the National Climate Change Consultation Process servingon the Credit for Early Action Table, Kyoto Mechanisms Table and the MunicipalitiesTable. EPCOR also provided advice and assistance to the Electricity Sector Table.

EPCOR is involved with several other groups that are addressing the issue of climatechange. Some of these groups include the Canadian Energy Association (CEA),Conference Board of Canada, Canadian Energy Research Institute (CERI), AlbertaClimate Change Central, E Source Inc., and Alberta's KEFI Exchange.

EPCOR sits on the Board of Directors for UtiliTree, which participates in CleanDevelopment Mechanism (CDM) and Joint Implementation (JI) projects focusing on

reforestation and improved forestry management. More information on UtiliTree isprovided in Section 8.4.

EPCOR was represented at several major national and international conferencesaddressing new techniques and technology for reducing greenhouse gas emissions.

9.4 Other Public Education on Climate Change

EPCOR gives many presentations each year on Landfill Gas Utilization, Climate Change,the environment, and energy efficiency. Tours of our solar array and Landfill Gas Plantare given to the public on request. Answering public enquiry about the environment,climate change or any of our programs is considered an essential role of our

Environmental Affairs and Sustainable Development Group.

EPCOR provides a lecturer to teach a fourth year Engineering course at the University ofAlberta. The focus of the course is sensitizing new engineers to broader social andenvironmental issues. Each year approximately 80 students take this course.

EPCOR helped develop Vision Kids; a city wide program using interactive booths andtours to educate children on energy efficiency in their own homes.

Together with the Alberta Provincial Museum, EPCOR sponsored Earth Quest inEdmonton. Earth Quest was a travelling exhibit that educates people on reducing, re-

using and recycling. The focus of the Program is to create a dialogue between childrenand adults to help them realize potential changes in their homes and lives to improve theenvironment. EPCOR helped to put a Canadian spin on Earth Quest by creating displayspertaining to more regional environmental initiatives including solar power and landfillgas utilization.

EPCOR now sponsors EcoFile, a weekly radio series on the economy, society and theenvironment. EcoFile is broadcast by CKUA, a province wide public radio station.


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EPCOR is Chair of the Board of Directors for both the Alberta Emerald Foundation forEnvironmental Excellence and the Edmonton Space and Science Centre. EPCOR is alsoa patron sponsor of the Alberta Emerald Foundation.

EPCOR will be sponsoring the Triple Bottom Line Award, a part of the Alberta BusinessAwards of Distinction, presented by the Alberta Chamber of Commerce. This award isearned by a business that has financial success, environmental commitment andachievement, and community involvement.

epcor voluntary action plan 1999

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