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Progress EnergyIssues Overview April 25, 2006 Don Cooke Sr. Environmental Coordinator
Progress Energy at-a-glance • 3 million customers • 24,500+ MW’s • 72,000 primary miles of distribution lines • 9,800 miles of transmission lines • 15,300 employees • $24 billion assets • $8 billion revenues • Fortune 250 company Progress Energy service territory in green
Fuel Sources Year-End 2005
Emissions are down Source: EPA. "Latest Findings on National Air Quality: 2003 Status and Trends."
N.C. Clean Smokestacks Act • 2002 - Clean Smokestacks Act signed into law • Developed cooperatively with Gov. Easley and legislative, regulatory, environmental and business leaders • Significantly cuts NOx and SO2 emissions from utility-owned coal-fired power plants • Technologies will also reduce mercury emissions by more than two-thirds statewide • Model for other states to improve air quality
Clean Smokestacks Impact Source: Progress Energy’s Report to Shareholders, 2006
How Does a Scrubber Work? A slurry of finely ground limestone (CaC03) is sprayed into a reaction tower, which has flue-gas flowing counter-current to the spray. The SO2 in the gas reacts with the limestone, removing 97% of the S02 and making CaS04 (gypsum).
Emissions Control Equipment Flue Gas Flue Gas Scrubber Tower (Removes SO2) Boiler SCR (Removes NOx) Precipitator (Removes Particulates) Stack
Clean Smokestacks Emissions Controls NOx Controls • 2006: Low-NOx burners - Lee 2, Sutton 2 • 2007: SCR - Asheville 1 • 2010: ROTAMIX - Lee 3
Clean Smokestacks Emissions Controls Sulfur Dioxide Controls (Scrubbers) • 2005: Asheville 1 • 2006: Asheville 2 • 2007: Roxboro 2, Roxboro 4 • 2008: Roxboro 1, Roxboro 3 • 2009: Mayo 1 • 2011: Cape Fear 6 • 2012: Cape Fear 5, Sutton 3
Additional Air Quality Regulations • Clean Air Interstate Rule • Clean Air Visibility Rule • Clean Air Mercury Rule
A balanced solution • Increasing demand for electricity • Commitment - and obligation - to provide reliable and affordable electricity • Cannot rely on just one approach – requires a balanced solution • Efficiency & conservation • Supporting alternative energy technologies • Investing in new power plants
Electricity generation options • Coal • Natural gas • Renewable sources • Nuclear
Planning for new electricity generation • Factors considered include: • Fuel costs and availability • Environmental considerations • Load growth • Maintenance and operation costs • Construction and permitting time • Regulatory environment • Community support
Advantages Baseload generation Plentiful fuel supply New technology reduces emissions Challenges Environmental issues New technology adds additional costs and risks Fuel costs Coal-fired plants
Advantages Fewer emissions than coal or oil Efficient fuel source Low capital costs Construction time Challenges Fuel volatility Fuel accessibility Limited world reserves Natural gas-fired plants
Advantages Plentiful resource in certain places Renewable, domestic and emission-free Land beneath wind structures can be used for farming and ranching Low operating costs Challenges Generation may not correspond with peak demand Noise and sight pollution Impacts wildlife Requires extensive amounts of land Siting difficulties Wind technology
Advantages Plentiful resource Renewable and emission-free Low operating costs Challenges Limited generating capability High capital costs Solar technology
Advantages Plentiful in southeastern U.S. Renewable Co-firing potential Could also address animal waste issues Challenges Co-firing may not work on all units Availability of some biomass sources Biomass
Advantages Baseload generation Low fuel costs and adequate uranium supply No greenhouse gas or air emissions Challenges Capital costs Delay in permanent used fuel repository Public acceptance Nuclear energy
Planning for the future • Considering new nuclear generation in Carolinas and Florida • Potentially plan to file two combined licenses (COL)s with the Nuclear Regulatory Commission by 2008 • Community involvement is key • COL applications do not commit company to building plants