Progress Energy and the Environment

Western North Carolina Air Quality

Don Cooke

April 29, 2003

P rog ress E n erg y V en tu resTom K ilg ore

P rog ress E n erg y F L , In c .H . W illiam H ab erm eyer

Energy SupplyW illiam Orser

[Technical Srvs.}[Env. Servs Sec.]

C u s tom er S erviceTu cker M an n

D E & OB u d d y C lin e

Tran sm iss ionJe ff L yash

L & S

O PS C enter M anager

Region V P'sJe ffrey C orbe tt

E nvironm enta l C oordina tors

D ir -T & D S rvs .Rebecca M cBath K i l ian

E nergy D e l ivery S olutionsL isa M yers - V P

F red N. D ay, IVE nergy D e l iveryProgress E nergy

C arol inas , Inc .

Robert B. M cG eheePres ident & C O O

Progress E nergy, Inc .

Chuck W akildEH&S

Env. Support

P E S ervice C o., L L CW illiam D . Joh n son

W ill iam C avenaugh IIIC ha irm an & C E O

Local plant may store more nuclear waste

By Millard K. IvesStaff Writer

millard.ives@wilmingtonstar.comThe Brunswick Nuclear Plant in Southport wants to build a dry-

cask fuel-storage facility to hold more nuclear waste.

Progress Energy, which operates the plant, has begun asking for bids from companies to construct the facility on its grounds near

Southport. It will likely be built in 2005 or 2006, and the waste would be held there until a proposed nuclear repository is

constructed in Nevada, said Mike McCracken, a spokesman for the nuclear plant….

Some other issues…...

Coal Combustion Products Endangered Species Act Total Maximum Daily Loads Hydro Relicensing Chemical control Regulatory Reform Environmental Justice Vegetation Management Groundwater Quality Standards PCB’s…..

….and Air QualityArticle published Apr 29, 2003‘Haze Cam’ provides look at air pollution in Triad

GREENSBORO - A Web site operated by Forsyth County is giving Triad residents an up-close view of the polluted air that plagues the region.

Triad Haze Cam, which went online this month, displays views snapped every half-hour from 2,360 feet up Sauratown Mountain in Stokes County.

One view looks toward western North Carolina. The other is to the northeast.

Air Quality

What are the trends?

Where have we been?

Where are we going?

1970 1980 1990 2000

Economic Growth Trends

Source: EPA Trends Report for 2000

US Gross Domestic Product Increased 158%

Vehicle Miles Traveled Increased 143%

Energy Consumption Increased 45%

US Population Increased 36%

Aggregate Emissions Decreased 29% (Six Principal Pollutants)

Comparison of Growth Areas and Emission Trends

EPA - National Air Emissions TrendsPercentage change in total emissions (1981-2000)

NOx 4%

SO2 31%

PM-2.55%(since 1990)

VOCs32%

PM-1047%

Are trends similar in North Carolina?

Statewide air quality trends show similar results over last twenty years

PM - 10 Declined SO2 Declined NOx Increased Acid Rain Declined

Source: NC DAQ

Ozone Exceedance Days (total orange, red and purple)

5

23

49

29

40

3

33

44

3029

7 8

27

21

14

1 4

2622

9

0

10

20

30

40

50

1998 1999 2000 2001

Asheville Valleys Asheville Ridge Tops

Charlotte Triad

Triangle

1

But Air Quality Problems Remain...

Visibility Ozone Fine particles

What’s being done?

Federal and State Initiatives to Reduce emissions EPA’s clear skies (NOx, SO2, and Mercury targets

and time tables) NC’s clean smokestacks (NOx, SO2 targets and time

tables) NOx SIP Call Plan already being implemented

through 2006 EPA Regional Haze Regulation reduces future SO2

emissions (2007-2010) Clean Air Act Title IV

(Acid Rain program mandates SO2 and NOx reductions)

Reduces NOx, SO2 and mercury emission from power generation

sources by 70%.

Edison Electric Institute on The Clear Skies Act of 2002: “Such an approach, if done right, could

allow power companies to make even deeper cuts in air emissions, while lowering regulatory

compliance costs, saving money for customers, and maintaining the nation’s diverse fuel mix.”

Reduces NOx, SO2 and mercury emission from power generation

sources by 70%.

Edison Electric Institute on The Clear Skies Act of 2002: “Such an approach, if done right, could

allow power companies to make even deeper cuts in air emissions, while lowering regulatory

compliance costs, saving money for customers, and maintaining the nation’s diverse fuel mix.”

The President’s Clear Skies Initiative February 14, 2002

National Emission Levels of SO2, Nox and

Mercury and Cap Levels under the Clear Skies Proposal

0

2

4

6

8

10

12

14

16

18

1980 1990 2000 2010 2020

SO2 Emissions (millions tons)

NOx Emissions (million tons)

Hg Emissions (tens of tons)

Clear Skies ProposalActual

Governor Easley’s Clean Air Legislation

Puts more stringent controls on NC coal fired plants than any state in U.S. has implemented

Far exceeds both Federal and EPA standards

No surcharge - freezes rates for five years

Progress Energy NOX Emissions ReductionsAnnual Emission in tons

0

20,000

40,000

60,000

80,000

100,000

120,000

140,00019

95

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

Actual Reductions SIP Call Clean Smokestacks Clear Skies

Actual SIP Call

Clean Smokestacks

Clear Skies

Progress Energy SO2 Emissions ReductionsAnnual Emission in tons

0

50,000

100,000

150,000

200,000

250,000

Actual Emissions Clear Skies Clean Smokestacks

Actual

Clean Smokestacks

Clear Skies

Projected by EPA and NC Proposals

How will we get there?

Environmental leadership - the pursuit of new technologies

No utility in the country has been as aggressive as Progress Energy in searching out new technologies

Produce affordable, reliable electricity - cost is very important to many customers

Progress Energy is a Leader in Implementing New NOx Reduction Technologies

Brought 2 new technologies to the US from Europe

Third U.S. installation of AEFLGR NOx control technology at the CP&L Skyland Plant

Installed the 1st SCR in North Carolina Benefits to stakeholders

Cleaner air Capital cost savings of $50M Introduced new low cost NOx control

options for industry and other utilities

Progress Energy AshevilleOzone Season NOx Reductions

0

1000

2000

3000

4000

5000

6000

7000

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Actual Projected

86% reduction

Largest on system

70 %

0

0.5

1

1.5

2

2.5

lbs

/mm

Btu

Unit No. 1 1.73 1.6 1.65 1.43 1.33

Unit No. 2 1.69 1.58 1.61 1.46 1.36

1997 1998 1999 2000 2001

Emissions Standard = 2.3 lbs/mm Btu

Average SO2 Emissions Rates Asheville Plant Coal-Fired Units

Asheville Unit No. 2 Opacity Data(1998 and 1999)

Where do we go from here?

Practice Environmental Stewardship Conserve electricity

Ideal Choice Home Program

Support Clean Air Initiatives Land of Sky Clean Air Campaign Alternative Transportation Choices Strive Not to Drive Program Ozone Action Awareness Days Program Clean Air Car Fair

Summary

Reliability, affordability, & environmental stewardship

PGN is reducing emissions now and will continue in the future

Pursuit of Innovative Technologies Efficiently manage best control technology