PSEG Fossil LLC NOx Reduction Technologies

1. 1 PSEG Fossil LLCNOx Reduction Technologies August 9, 2005 Title page Title page

2. 2 Types of Electric-Generating Units Baseload Load-Following Peaking

3. 3 Baseload Units intended to operate continuously at full load High annual capacity factors Nuclear units, e.g. Hope Creek Unit No. 1 Salem Units No. 1 & 2 None of PSEG�s fossil fuel-fired units in New Jersey are baseload

4. 4 Load-Following Unit operation and output vary with demand Low to Moderate annual capacity factors (< 5% to ~60%) Coal/Gas/No. 6 oil-fired steam boilers Hudson Unit No. 1 (water injection) Hudson Unit No. 2 (scheduled for SCR, baghouse in 2007) Mercer Unit No. 1 (SCR since 2004; < 0.15 lb/MMBtu) Mercer Units No. 2 (SCR since 2004; < 0.15 lb/MMBtu) Sewaren Units No. 1, 2, 3, & 4 (~ 0.15 lb/MMBtu) Gas/distillate oil-fired combined-cycle gas turbines (all << 0.15 MMBtu) Bergen Unit No. 1 (DLNC, water injection) Bergen Unit No. 2 (SCR) Linden Unit No. 1 (SCR) Linden Unit No. 2 (SCR)

5. 5 Peaking Serve a unique purpose Low to extremely low annual capacity factors << 1% to ~15% Satisfy PJM Requirements Energy on high demand days Grid reliability & security Congestion management Primary Reserve Energy in < 10 minutes Synchronous Condenser (�Spinning Reserve�) Secondary Reserve Energy in < 30 minutes

6. 6 Peaking Gas/distillate oil-fired simple-cycle gas turbines General Electric (GE) LM6000 aeroderivative (< 0.15 lb/MMBtu) GE Frame 7EA industrial (< 0.15 lb/MMBtu) Pratt & Whitney FT4 aeroderivative (> 0.15 lb/MMBtu)

7. 7 Signal: Announcement over hand-held radios Routes: IC will determine the appropriate route based on a variety of factors : wind, location of fire or spill, etc. Primary Assembly Area: May vary depending on the type of emergency, wind direction, etc. Roll call/head count is extremely important both for Station personnel and non-station personnel. Will determine if a search and rescue is necessary. Facility Access: Controlled by the Gatekeeper to monitor the flow of traffic and prevent unauthorized entry. Shutdown: Rapid isolation of critical power plant equipment to protect such equipment and reduce the threat to human health and the environment. Signal: Announcement over hand-held radios Routes: IC will determine the appropriate route based on a variety of factors : wind, location of fire or spill, etc. Primary Assembly Area: May vary depending on the type of emergency, wind direction, etc. Roll call/head count is extremely important both for Station personnel and non-station personnel. Will determine if a search and rescue is necessary. Facility Access: Controlled by the Gatekeeper to monitor the flow of traffic and prevent unauthorized entry. Shutdown: Rapid isolation of critical power plant equipment to protect such equipment and reduce the threat to human health and the environment.

8. Low Load Day

9. High Load Day

10. Congestion Management

11. 11 PSEG Peaking Turbines Assessment by the IC is performed to determine the need for outside medical assistance, to conduct a search and rescue, or perform an evacuation. Also aids in determining if outside response agencies and cleanup contractors are necessary. Assessment includes a description of the incident, type and quantity of the substance that was discharged, wind speed and direction, cause of the incident and steps taken to control, contain and cleanup the discharge.Assessment by the IC is performed to determine the need for outside medical assistance, to conduct a search and rescue, or perform an evacuation. Also aids in determining if outside response agencies and cleanup contractors are necessary. Assessment includes a description of the incident, type and quantity of the substance that was discharged, wind speed and direction, cause of the incident and steps taken to control, contain and cleanup the discharge.

12. 12 Capacity Factors (2001-2004) Common emergencies include: Plant injuries/accidents, HAZMAT releases, fires, evacuations, search & rescueCommon emergencies include: Plant injuries/accidents, HAZMAT releases, fires, evacuations, search & rescue

15. 15 PSEG Fossil Environmental Progress

16. 16

17. 17 Potential FT4 NOx Reduction Technologies Selective Catalytic Reduction (SCR) Dry Low NOx Combustors (DLNC) Light Oil Emulsification (LOE) Water Injection Others SCONOx, XONON Repowering/Replacement

18. 18 Selective Catalytic Reduction (SCR) Description Ammonia is injected into exhaust gas, which then passes through a catalyst reactor where elemental nitrogen and water are the products of the NOx�ammonia reaction NOx Reduction Potential 80% to 95%

19. 19 Selective Catalytic Reduction (SCR) Applications Boilers (e.g. Mercer 1&2) Combined-cycle or cogeneration turbines Bergen 2, Linden 1&2 (NJ) Bethlehem Energy Center (NY) Lawrenceburg (IN) Simple-cycle turbines Tracy, Hanford, Henrietta (CA) Gas only Different duty cycle (< 4,000 hr/yr) SCR-equipped simple-cycle turbines are newer, originally designed with SCR Mixed track record, especially with oil-firing

20. 20 Selective Catalytic Reduction (SCR) Issues/Concerns Exhaust Gas Temperature Optimum range of conventional catalysts (650�F to 850�F) FT4 exhaust gas temperatures (1,040�F to 1,200�F) Attenuation air to cool exhaust gas; or High-temperature catalysts (e.g. Zeolites) Thermal Shock Rapid start-ups and shutdowns Oil Operation Sulfur compounds may poison catalyst Ammonia Storage & Handling Increased PM2.5, PM10 emissions

21. 21 Selective Catalytic Reduction (SCR) Issues/Concerns Lost power output from back-pressure Space considerations New stacks Jeopardizes FT4 �spinning reserve� capability system reliability issues (PJM) ~$30 million/yr lost revenue Cost-prohibitive Several times more expensive than water injection Not a viable technology for FT4�s

22. 22 Dry Low-NOx Combustors (DLNC) Description Combustor �can� design premixes air and fuel, creating a fuel lean combustion environment that reduces peak flame temperatures & controls �thermal NOx� NOx Reduction Potential on FT4�s 60% to 70%

23. 23 Dry Low-NOx Combustors (DLNC) PSEG Experience In mid-1990�s, DLNC pilot-tested on Edison FT4�s Unreliable performance Combustor cans readily developed thermal stress cracks Dropped in favor of water injection Not a viable technology for FT4�s

24. 24 Light Oil Emulsification (LOE) Description Water emulsified fuel lowers peak flame temperatures to reduce �thermal NOx� NOx Reduction Potential on FT4�s ~40% PSEG Experience In early-1990�s, LOE pilot-tested on Edison FT4�s Oil firing only CO emission concerns Dropped in favor of water injection Not a viable technology for FT4�s

25. 25 SCONOx Description A single catalyst oxidizes nitric oxide (NO) to nitrogen dioxide (NO2), & then absorbs NO2 onto its surface, which is coated with potassium carbonate (K2CO3) NOx Reduction Potential 90% to 95%

26. 26 SCONOx Issues/Concerns To date, used only on combined-cycle or cogeneration turbines Not commercially available on simple-cycle turbines Optimum temperature range = 300�F to 700�F 2 to 3 times more expensive than SCR Not a viable technology for FT4�s

27. 27 XONON Description A catalyst integrated into turbine combustors limits combustion temperatures & thermal NOx formation Combustors are customized to the particular turbine by the original equipment manufacturer (OEM) Currently only commercially available from Kawasaki Gas Turbines-Americas on a small (1.4 MW) turbine Not a viable technology for FT4�s

28. 28 Water Injection Description Demineralized (DM) water is injected into turbine combustion zone to reduce peak flame temperatures & control �thermal NOx� formation System Components Water injection skids Metering pumps (1 per engine) DM trailer processing pad DM water storage tank Instrumentation & Controls NOx Reduction Potential on FT4�s ~40%

29. 29 Water Injection PSEG Experience Retrofitted on Edison Units No. 1, 2, & 3 (24 FT4�s) Successfully operated since 1999 Edison represents ~35% to 45% of total FT4 operations Estimated Cost: ~$500k to $1 million per FT4 Most FT4�s don�t run enough to justify the cost Unmanned locations (Bayonne, National Park) present additional difficulties

30. 30 Repowering/Replacement PSEG has been systematically repowering or replacing its electric-generating units since 1990 Cost-prohibitive Installed cost of new simple-cycle peaking turbines ~$500 kW ($0.5 million/MW) Replace 200 MW = ~$100 million Replace entire FT4 fleet = >$1 billion System reliability issues (PJM)

31. 31 Summary PSEG has already dramatically reduced its stationary source NOx emissions Water injection most viable technology for FT4 peaking turbines Further unit-specific evaluation necessary

32. 32 Other Areas for Investigation Compensation with NOx allowances Restrict oil usage during ozone events Increase operating flexibility of clean units No stack testing when units not ordinarily running Airport NOx emissions (e.g. Newark) Electrification of truck stops Port Elizabeth, Port Newark Ferries

33. 33 Surrounding States PA Ozone season: surrender NOx allowances for peaking turbines actuals greater than allowables CT same as PA NY Addressed in NOx RACT averaging plan DE Addressed in NOx RACT averaging plan Note: In PA the allowable limits are as follows: A simple cycle stationary combustion turbine: �������(A)���When firing natural gas or a noncommercial gaseous fuel, 0.20 lbs NOx/MMBtu or 2.2 lbs NOx/MWH. �������(B)���When firing oil, 0.30 lbs NOx/MMBtu or 3.0 lbs NOx/MWH. Note: In PA the allowable limits are as follows: A simple cycle stationary combustion turbine: �������(A)���When firing natural gas or a noncommercial gaseous fuel, 0.20 lbs NOx/MMBtu or 2.2 lbs NOx/MWH. �������(B)���When firing oil, 0.30 lbs NOx/MMBtu or 3.0 lbs NOx/MWH.