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The Current - December 2010 Articles In This Issue: Commercial-scale Wind Energy Now a Reality in Maryland First-ever Loan Program Available to Marylanders to Improve Their Homes’ Energy Efficiency Hundreds Rally to Overcome Obstacles to Wind ‘Farm’ Offshore Ocean City Trans-Elect Begins Permitting Process for Offshore Wind Power Line Malaysian Ambassador Salutes Maryland’s Green Leaders, Including MCEC’s Magruder Solar Helping Freeze the Ice at Rockville Arena A Smarter Grid Doesn’t Necessarily Mean a More Secure Grid Act by January 12 with Clean Currents to Help Haitians Recover from Earthquake Wind Turbine Now Supplying Clean Electricity to Cheverly, MD’s Public Works Department Pepco Holdings Among 100 Greenest Big Companies in America "THE CURRENT" NEWSLETTER SERIES IS MADE POSSIBLE THANKS TO PEPCO HOLDINGS INC: Commercial-scale Wind Energy Now a Reality in Maryland Nearly 300 feet above Backbone Mountain in far western Maryland, turbine blades are turning and within days they are to begin generating electricity. The Current - December 2010 | Maryland Clean Energy Center http://www.mdcleanenergy.org/news_and_events/archive/thecurrent-december2010 (1 of 17)6/27/2012 2:05:54 PM Login | About Us | Contact Us | Register Clean Energy Technologies Using Clean Energy Business Resources Research & Development Programs & Incentives Find News & Events

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Page 1: The Current - December 2010 | Maryland Clean Energy Centermsa.maryland.gov/.../unrestricted/20120805e-011.pdfThe Current - December 2010 Articles In This Issue: Commercial-scale Wind

The Current - December 2010 Articles In This Issue:

● Commercial-scale Wind Energy Now a Reality in Maryland

● First-ever Loan Program Available to Marylanders to Improve Their Homes’ Energy

Efficiency

● Hundreds Rally to Overcome Obstacles to Wind ‘Farm’ Offshore Ocean City

● Trans-Elect Begins Permitting Process for Offshore Wind Power Line

● Malaysian Ambassador Salutes Maryland’s Green Leaders, Including MCEC’s Magruder

● Solar Helping Freeze the Ice at Rockville Arena

● A Smarter Grid Doesn’t Necessarily Mean a More Secure Grid

● Act by January 12 with Clean Currents to Help Haitians Recover from Earthquake

● Wind Turbine Now Supplying Clean Electricity to Cheverly, MD’s Public Works Department

● Pepco Holdings Among 100 Greenest Big Companies in America

"THE CURRENT" NEWSLETTER SERIES IS MADE POSSIBLE THANKS

TO PEPCO HOLDINGS INC:

Commercial-scale Wind Energy Now a Reality in MarylandNearly 300 feet above Backbone Mountain in far western Maryland, turbine blades are turning

and within days they are to begin generating electricity.

The Current - December 2010 | Maryland Clean Energy Center

http://www.mdcleanenergy.org/news_and_events/archive/thecurrent-december2010 (1 of 17)6/27/2012 2:05:54 PM

Login | About Us | Contact Us | Register

● Clean Energy Technologies

● Using Clean Energy

● Business Resources

● Research & Development

● Programs & Incentives

● Find

● News & Events

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The Current - December 2010 | Maryland Clean Energy Center

After nine years of planning and eight months of construction, the 70-megawatt Criterion Wind

Project is scheduled to go into full operation December 17 and become the first commercial

wind power farm in Maryland.

“It’s pretty exciting for us to say that we are the first in the state of Maryland,” said Kevin

Thornton, a spokesman for Constellation Power Generation. Constellation Energy acquired the

$140-million, Garrett County project from Clipper Windpower, Inc. last April. “We feel like we

are sort of on the forefront, the avant garde of this renewable energy movement.”

Stretching across an eight-mile swath of the Western Maryland mountaintop, the Criterion

project includes 28 Clipper Liberty 2.5-megawatt turbines. Old Dominion Electric Cooperative –

a not-for-profit wholesale power provider serving public electric cooperatives in Maryland,

Delaware and Virginia, including Maryland’s Choptank Electrical Cooperative – signed a 20-

year agreement to purchase 100 percent of Criterion’s production. The associated Renewable

Energy Credits will convey to Old Dominion and factor into Maryland’s goal to draw 20 percent

of its electricity from renewable energy sources by 2020.

Constellation estimates that construction of Criterion funneled $9-10 million into Garrett

County’s economy and employed “about 140 people on site at peak with about 110 of those

being union members. We made an effort to hire as many guys from the local union halls as

possible,” Thornton said. “Overall, this project has been really positive.”

The development came amid considerable community opposition and a summer filled with first-

time logistical challenges for Constellation officials.

“We probably have a 50/50 split among the community” about the Criterion project, said Donald

Shilobod, the wind project’s manager. “We have a few community members that were

supervising us very closely and holding us to task on erosion and sediment control plans. We

had one community member who was always alerting the county and the state if they felt we

were violating any of our permits, so we had quite a few visits from county and state officials

during construction.”

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Meanwhile, Criterion project managers had to overcome the challenges of moving wind turbine

components to the site. Bringing in the gear boxes and turbine control panels from Clipper

Wind’s plant in Iowa was simple. Bringing in the rotor blades, which were manufacturing in

Brazil, and towers, which were made in China, was not.

“Everything had to be shipping to the Port of Baltimore and then there were the logistics of

offloading these super-loads, performing inspections at the port for any damage during

shipment, then getting permits from the state and county to transport these loads to the site,”

Shilobod said.

The rotor blades measured 150 feet long while the four different components that made up

each tower measured up to 130 feet each. Constellation had to contract specialized trucks to

move the hardware and follow especially careful driving rules.

“We clipped a power line [with one turbine component] one morning,” Shilobod said. But

outside of that single accident, Criterion’s hardware suffered no damage beyond some chipped

paint, he added.

In January, Constellation crews will begin a regime of preventative maintenance on the

turbines, which stand 415 feet tall from the ground to the tip of a vertical blade, to ensure that

all connections remain tight and torques stay correct.

BACK TO THE TOP

First-ever Loan Program Available to Marylanders to Improve Their

Homes’ Energy EfficiencyThe Maryland Clean Energy Center has launched the state’s first unsecured, low-interest,

home energy loan program offering homeowners up to $20,000 to finance efficiency

improvements.

The Maryland Home Energy Loan Program (MHELP) can help residents reduce their energy

utility bills through insulation upgrades, replacement of old heating and cooling equipment,

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sealing air ducts and other steps identified by a certified home energy auditor. There are no

points or closing costs associated with the 6.99% fixed rate loans, which homeowners can take

up to 10 years to pay off.

Coming at a time when home equity lines of credit are no longer available for tens of thousands

of homeowners, the MHELP program is a uniquely fast and convenient way for Marylanders of

all income levels with good credit to save money and do their part to reduce harmful carbon

emissions in the Free State.

Applicants are required to secure a home energy audit using an auditor certified to perform

such work in their home county by the Maryland Energy Administration (MEA) under the

Maryland Home Performance with Energy Star program. A list of those auditors is available

online at http://mdhomeperformance.org/findacontractor.php.

Contractors interested in participating in the MHELP program should contact the MEA. For

more information, homeowners can call 1-888-232-3477.

BACK TO THE TOP

Hundreds Rally to Overcome Obstacles to Wind ‘Farm’ Offshore Ocean

CityWill 2011 be the year of wind in Maryland? These clean energy advocates are determined to

make it so. Image courtesy of the Chesapeake Climate Action Network.

More than 300 environmentalists, entrepreneurs, labor

leaders, community activists and policy makers gathered in http://www.mdcleanenergy.org/news_and_events/archive/thecurrent-december2010 (4 of 17)6/27/2012 2:05:54 PM

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Will 2011 be the year of wind in

Maryland? These clean energy

advocates are determined to

make it so. Image courtesy of

the Chesapeake Climate Action

Network.

Annapolis December 4 to learn about the prospects – and

the challenges – facing a clean energy sector that could

create 4,000 green jobs in Maryland and satisfy as much as

two-thirds of the state’s electricity needs.

“I am very excited about the prospects for offshore wind in

Maryland,” Rob Garagiola, new Majority Leader of the

Maryland State Senate, told attendees at Wind Vision 2010.

“This is a game changer. We are on the tipping point of an

incredible green revolution and offshore wind thrusts us

forward.”

Mike Tidwell – director of the Chesapeake Climate Action

Network, which sponsored the day-long conference –

described the “staggering wind potential” of the “Mid-

Atlantic Bight.” Researchers have concluded the Bight, the 600-mile-long coastline that

stretches from Cape Cod, Mass to Cape Hatteras, NC, could generate up to 64,000 megawatts

– about 70 percent of America’s current electrical consumption. A recent report by the Abell

Foundation concluded that winds off Maryland’s coast alone could generate enough electricity

to cover 67 percent of the state’s needs.

That potential has attracted entrepreneurs to Maryland’s offshore wind sector including NRG

Bluewater Wind, which is proposing to build a wind farm off the shores of Ocean City, and

Trans-Elect Development Co., which has partnered with Google in a plan to build a subsea

transmission line that could link the grid to offshore wind farms from Virginia to New Jersey.

The Maryland Energy Administration estimates that developing 1000 megawatts of wind

capacity off the Maryland coast would create 4,000 jobs over a five-year development phase.

Multiple offshore wind projects could also entice European leaders in the sector to establish

turbine manufacturing facilities and other support industries in the state.

“In a stalled economy, few industries have the potential to bring more jobs to our state than the

renewable offshore wind industry,” said Jim Stong, sub-district director of the United

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Steelworkers in Maryland. “We want to make sure our state leads in this economic and

environmental area.”

However, speaker after speaker at Wind Vision 2010 warned that Maryland’s nascent offshore

wind sector faces major regulatory hurdles. First, the federal permitting process for offshore

wind projects typically takes seven to nine years to complete.

“It should not take longer than it took to go to the moon to permit an offshore wind

development,” said Malcolm Woolf, Director of the Maryland Energy Administration. Woolf

added that federal Interior Secretary Ken Salazar visited Maryland in November to announce

plans to expedite the permitting process and identify promising locations for wind

developments off the Atlantic coast.

Second, Federal Energy Regulatory Commission standards currently do not include any

provision that would allow the Trans-Elect transmission line to link to the PJM grid, which

includes Maryland. However, Robert Mitchell, Chief Executive Officer of Trans-Elect, said

FERC has initiated a review process that could generate regulations favorable to the offshore

wind power line.

Maryland’s existing energy sector lacks one element vital to offshore wind development: long-

term, power-purchase agreements.

“The business model calls for an understanding that if you are going to make the big

investment up front in wind power, then there is a commitment over a number of years that will

let you recoup your investment,” said Maryland Senator Paul Pinsky, who chairs the senate’s

Environmental Subcommittee. “Right now, energy companies buy on the spot market. They

don’t need to have 10-, 20- or 30-year contracts.”

Pinsky and Delegate Tom Hucker plan to introduce legislation during the 2011 session of the

General Assembly that would require Maryland utilities to purchase some of their electricity

through long-term, power-purchase agreements with offshore wind facilities.

Similar legislation failed during the 2010 session and Pinsky warned that his bill might draw

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opposition again from politicians who are now sufficiently informed about the clean energy

sector or averse to passing legislation that place a new requirement on power utilities.

“But we have to look beyond horse trading and the status quo. The status quo in the issue of

energy is unacceptable,” Pinsky said. “We have to push harder and think bigger. We need a

call for transformation of … how we use energy. Playing around the edges isn’t enough.”

BACK TO THE TOP

Trans-Elect Begins Permitting Process for Offshore Wind Power Line

This rendering of the Mid-

Atlantic ‘Bight” shows a portion

of the Atlantic coast suitable for

wind power development to be

served by the proposed Atlantic

Wind Connection transmission

line. Image courtesy of

Professor Willett Kempton at the

University of Delaware.

Bethesda-based Trans-Elect Development Company

expects to file permitting applications with federal

authorities soon for the Atlantic Wind Connection, the

proposed subsea power transmission line that could link the

regional power grid to wind power developments off the

coast of Maryland, Virginia, Delaware and New Jersey.

A spokesman for Trans-Elect said company officials hope to

complete the review process within two years and secure all

necessary permits by the end of 2013. The proposed

transmission line must secure approvals from the U.S.

Department of the Interior, the Federal Energy Regulatory

Commission (FERC) and multiple state agencies.

The Atlantic Wind Connection is the first subsea, wind-

power transmission line ever proposed off the East Coast.

Consequently, many regulatory agencies still need to fine-

tune permitting processes for the line.

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“There are so many unknowns in this process simply because Interior has never really done

this before,” said Frank Maisano, the spokesman. “When you propose the first project in any

field, there can be untold delays.”

Robert Mitchell, Chief Executive Officer of Trans-Elect, said the Atlantic Wind Connection faces

the added challenge that FERC regulations currently do not include provisions that allow the

line to tie into the PJM grid. Current regulations permit tie-ins only if the new line would reduce

electricity prices or meet a need for improved reliability, Mitchell said, adding that the Atlantic

Wind Connection likely would not qualify under those provisions.

FERC, however, recently invited interested parties to submit proposals for revising those

regulations. Officials at Trans-Elect and the Maryland Energy Administration said FERC

officials have expressed interest in adding a provision that would approve transmission lines

based on public policy priorities, such as supporting renewable portfolio standards.

In November, Interior Secretary Ken Salazar also announced his intention to refine and

streamline the process of permitting offshore wind power projects. In addition, PJM

Interconnection, operators of the Pennsylvania-New Jersey-Maryland grid, will have to approve

the tie-in by the Atlantic Wind Connection. To date, PJM officials have not expressed a formal

opinion of the offshore development.

“In the early stages of this process, PJM has been very intrigued and very supportive of the

idea,” Maisano said. “I think PJM likes the fact that it is a larger system that can be easily

managed within the grid. Certainly I can’t imagine – and I’m just thinking out loud – that PJM is

going to be angry that somebody is going to build another transmission line in what is the

busiest transmission corridor in the United States.”

BACK TO THE TOP

Malaysian Ambassador Salutes Maryland’s Green Leaders, Including

MCEC’s Magruder

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Maryland Clean Energy Center

Kathy Magruder accepts the

“Partner of the Year” award from

the Maryland-Asia

Environmental Partnership

December 4 at the National

Press Club. She is flanked on

the left by her daughter Grace

Magruder and on the right by

MD-AEP Executive Director

Peter Gourlay.

More than 160 leaders from business, government and

science gathered at the National Press Club December 2

for the Maryland-Asia Environmental Partnership’s (MD-

AEP) annual banquet to honor Maryland’s energy and

environmental leaders, including Maryland Clean Energy

Center Executive Director Katherine Magruder.

MD-AEP – a trade group with more than 500 private,

academic and government organizations from the Mid-

Atlantic and Asia in its network – awarded Magruder its

Partner of the Year Award. A key driver in the effort to

induce an energy paradigm shift in Maryland and grow the

state’s clean energy economy, Magruder partnered with MD-

AEP to produce the “Energy and Environment Leadership

Series.” Watch the award presentation and Magruder’s

remarks here.

The series – which attracted top-level representatives from

government agencies, academic facilities and companies

ranging from leading-edge startups to multinational

corporations – probed developments in smart grid, green buildings and renewable energy in

Maryland and Asia, and opportunities for the two regions to work together on solutions.

MD-AEP also presented awards to Paige Bethke, Director of the Talbot County Office of

Economic Development, and Dr. Rita Colwell, Distinguished Professor at the University of

Maryland and The Johns Hopkins University.

Bethke’s leadership has helped Talbot County, which is located in an environmentally sensitive

region of the Eastern Shore, pursue diverse efforts to attract environmental companies and

research and development initiatives. Colwell has performed groundbreaking work in

preventing the ravages of cholera and other waterborne diseases that afflict 3-5 million people

around the world each year. In September, the King of Sweden presented Colwell with the

prestigious Stockholm Water Prize, in part, for her research in Bangladesh, which produced a

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49-percent reduction in cholera cases.

Applauding Maryland for its aggressive approach to advancing clean energy and other

environmental efforts, U.S. Congressman Roscoe Bartlett described the partnerships fostered

by MD-AEP as “a very happy marriage.”

Asia, he noted has the largest concentration of people in the world, rapidly growing needs for

energy, and serious environmental and climate change challenges. China recently surpassed

the United States as the world’s largest emitter of carbon dioxide.

Maryland, Bartlett said, is well equipped to address some of Asia’s energy and environmental

needs.

Dato’ Sri Dr. Jamaludin Jarjis, Ambassador of Malaysia to the United States and the gala’s

keynote speaker, explained how Maryland could help Malaysia address one of its major

challenges, namely an economy limited by its dependence on cheap commodities and cheap

labor.

“We know that to scale-up our economy there is no other way to create value except [through]

energy and science,” said Jarjis, who formerly served as Chairman of Tenaga Nasional Berhad

(TNB), the national power utility company in Malaysia. The Ambassador said he was keen to

partner with Maryland on new technologies and new science to address Malaysia’s needs.

“We are honored that Ambassador Jarjis joined us for our banquet and are very keen in

developing partnerships with Malaysia to address its energy and environmental needs,” said

Peter Gourlay, President of MD-AEP.

“Malaysia has become an increasingly important strategic partner for the United States as both

U.S. Secretary of State Hilary Clinton and U.S. Defense Secretary Robert Gates have recently

visited the country this year to reaffirm the importance of this evolving bilateral relationship,”

said Tony Vaz, President of Insight Engineering.

The 2010 World Competitiveness Yearbook ranked Malaysia as the 10th most competitive

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economy in the world, well ahead of Germany (16), China (18) and Japan (27).

MD-AEP – which lead a trade mission to Vietnam and hosted numerous gatherings of

government, business and science leaders in 2010 – has already produced tangible benefits

for businesses and other environmental organizations in Maryland.

“MD-AEP has connected us with dozens of partners in both the academic and business

communities,” said Ted Gattino, Managing Partner with Bluewing Environmental Solutions and

Technologies. “Those connections have lead to numerous opportunities for the advancement

of our floating wetland islands in the Chesapeake Bay region to reduce nutrient pollution.”

BACK TO THE TOP

Solar Helping Freeze the Ice at Rockville Arena

“This was an easy business

decision,” said Stuart Schooler,

managing member, The Maven

Group, which owns the Rockville

Ice Arena. ”Ice rinks are an

energy-intensive operation. We

need to help our tenants

manage costs, while providing

activities like skating and hockey

Rockville-based Standard Solar, Inc. recently announced

new installations in Montgomery and St. Mary’s counties

with a combined capacity of more than 1.2 megawatts.

In late November, Standard Solar officially activated a 701

kilowatt system on the roof of Rockville Ice Arena, making it

one of the largest single rooftop solar energy systems in

Maryland. The system is expected to meet about 30 percent

of the arena’s annual electricity needs and reduce its

carbon dioxide emissions by 757 tons each year. For more

information, go to http://www.standardsolar.com/News-and-

Events/Press-Releases/Standard-Solar-Activates-701-kW-

System.aspx

In early December, Standard Solar, Perpetual Energy

Systems LLC and St. Mary’s County Public Schools

announced plans to install a 503 kilowatt system at George http://www.mdcleanenergy.org/news_and_events/archive/thecurrent-december2010 (11 of 17)6/27/2012 2:05:54 PM

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that have a more benign impact

on the environment,” Schooler

added. “After all, the C&O Canal

is only thick enough for skating

two to three weeks per year.”

Image courtesy of Standard

Solar, Inc.

Washington Carver Elementary School in Great Mills. The

system, which received a Project Sunburst grant from the

Maryland Energy Administration, is expected to generate

677,000 kilowatt hours of electricity during its first year of

operation and meet 80 percent of the school’s electricity

needs. For more information, go to http://www.

standardsolar.com/News-and-Events/Press-Releases/St-

Mary-s-County-Public-Schools-Go-Solar.aspx

Due in part to Maryland incentives and a county embracing clean energy companies

(Montgomery), projects such as these have helped propel Standard Solar to #73 on INC

magazine’s 2010 list of the fastest growing private companies in the U.S.

BACK TO THE TOP

A Smarter Grid Doesn’t Necessarily Mean a More Secure Grid

The need to incubate smart thinkers and companies that can

help governments and industries protect critical power, civil

defense, telecommunications, banking, air traffic control and

other industrial control systems was underscored by a cyber security forum held December 14

at the University of Maryland-Baltimore County’s Technology Incubator near the intersection of

I-95 and I-195.

“It’s a warhead you can’t see,” said Joe Weiss, Managing Partner of Applied Control Systems,

who spoke about the myriad threats confronting cyber-security professionals.

Weiss and other speakers shared this warning: the more networked these systems are, the

higher the threat that a nation state, terrorist group, band of criminals or even a frustrated

former employee or contractor can wreck havoc on American lifestyles and their well being.

And that doesn’t count inadvertent system errors and other mishaps that would not violate

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A few examples: the power grid has been compromised in recent years by “major” cyber

incidents since 2003; the Browns Ferry nuclear power plant in Alabama and the Hatch nuclear

plant in Georgia have been shut down from full power by a control system breach; and a utility

lost its SCADA (supervisory control and data acquisition) system for two weeks and required

four “man-months” to recover.

“The genie is out of the bottle. We cannot put the genie back in the bottle,” warned Weiss, who

worked previously at the Electric Power Research Institute.

The forum was organized by Bjorn Frogner, the Entrepreneur-in-Residence at the Maryland

Clean Energy Technology Incubator.

Maryland authorities estimate there are at least 10,000 companies and more than 140,000 full-time positions devoted to cyber-security work throughout Maryland paying an average annual salary of about $82,000.

Ron Ross, who heads a National Institutes of Standards and

Technology’s information security team, called for integrating

industrial process controls with information technology to build

“enterprise-wide” safeguards. Ross said this requires that

senior personnel in management, operations and technology in

government work together to identify and strengthen weak links

that adversaries are looking to penetrate.

NIST, based in Gaithersburg, has issued a draft report

designed to streamline the steps Ross spoke about. It is to be

posted soon at: http://nist.gov/

Due in large part to NIST’s location in Gaithersburg and the

National Security Agency at Fort Meade, Maryland increasingly is becoming known as the

“epicenter” of the nation’s cyber security industry. Maryland authorities estimate there are at

least 10,000 companies and more than 140,000 full-time positions devoted to this work

throughout Maryland at an average annual salary of about $82,000.

Despite these robust numbers, Michael Rossman, Director of Corporate Information Security at

Baltimore-based Constellation Energy, told forum attendees “the software industry is just

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scratching the surface” of work needed to deal with cyber threats.

To seize on the state’s assets, the Maryland Department of Business and Economic

Development is seeking to establish and host a National Center of Excellence for Cyber

Security.

BACK TO THE TOP

Act by January 12 with Clean Currents to Help Haitians Recover from

EarthquakeRockville, Maryland-based Clean Currents is partnering with Solar Cookers International for its

annual holiday giving campaign. From now through January 12, 2011, which is the one-year

anniversary of Haiti's devastating earthquake, Clean Currents will donate a portion of proceeds

from every residential wind power enrollment to the purchase and distribution of solar cookers

in Port-Au-Prince, Haiti.

"This year we decided to focus specifically on solar cooking in Haiti because of the ongoing

calamity in that country," said Gary Skulnik, President of Clean Currents.

Nearly a year has passed since the big earthquake that

rocked Port-Au-Prince and its environs. Conditions there

remain dire. "Solar cookers are cheap, simple, and easy to

maintain. By harnessing the abundant power of the sun,

solar cookers provide a measure of independence to those

who use them - and they decrease a user's reliance upon

traditional sources of cooking fuel like charcoal, which is

costly and very polluting," added Skulnik.

Solar cookers work by reflecting and concentrating the

sun's rays onto a black cooking pot, insulated by a clear

plastic bag that traps the heat. These concentrated rays

can boil water or cook most types of food.

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This is the type of solar cooker

that will be funded in part by

wind power purchases through

Clean Currents by January 12,

2011.

Read more about Clean Currents’ wind power offering and

the solar cookers program here.

BACK TO THE TOP

Wind Turbine Now Supplying Clean Electricity to Cheverly, MD’s Public

Works DepartmentThe wind blowing around the Cheverly maintenance facility in Prince George’s County is now

generating about half the electricity used by the Public Works Department. It is the latest sign

of a Maryland municipality moving to control its electricity costs and reduce the harmful carbon

emissions its operations are responsible for.

Cheverly Mayor Michael Callahan heralded the small but significant step at a December 1

press conference along with Kelly Speakes-Backman of the Maryland Energy Administration,

Brad Heavner of Environment Maryland, Jim Strong of the United Steelworkers and Jim

Pierobon of the Maryland Clean Energy Administration. You can watch Mayor Callahan’s

remarks here.

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Pepco Holdings Among 100 Greenest Big Companies in AmericaPepco and Delmarva Power are part of the Pepco Holdings, Inc. (PHI) family of companies.

PHI has moved into the top 100 in Newsweek magazine’s annual Green Rankings, published

in earlier this year. Pepco Holdings, Inc. (PHI) ranked 94 out of the 500 U.S. companies listed,

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The Current - December 2010 | Maryland Clean Energy Center

and was one of only three electric utility companies to reach the top 100.

“Gaining a place in the top 100 ‘greenest big companies’ is a welcome endorsement of the

hard work performed by PHI companies to honor the commitments made in our corporate and

environmental policies,” said Joseph M. Rigby, PHI Chairman, President and CEO. “Our

environmental team has worked hand-in-hand with both operational and corporate services

organizations to establish a culture of accountability for environmental protection and

stewardship. This is another reflection of our company-wide focus on operational excellence.”

The Newsweek ranking is based on environmental performance and transparency

The rankings are based on a rating system developed and

implemented by MSCI ESG Research, which tracks

environmental, social and governance data; Trucost, which

specializes in quantitative measurements of environmental

performance; and CorporateRegister.com, the world’s largest

directory of sustainability and environmental reports. Together,

they produced corporate profiles of the 500 largest publicly traded U.S. companies – as

measured by revenue, market capitalization and number of employees – “that quantify the

companies’ actual environmental footprint, policies and reputation,” according to information

published in Newsweek.

The rating system was used to assign each of the companies a “Green Score,” calculated

using three component scores, according to the Newsweek announcement. “The

Environmental Impact Score, compiled by Trucost, is based on more than 700 metrics,

including greenhouse-gas emissions, water use and solid-waste disposal.

The Green Policies Score, based on data collected by MSCI ESG Research, reflects an

analytical assessment of a company’s environmental policies and initiatives. The Reputation

Score is based on a survey of academics, environmental officers, and CEOs.

Newsweek explained that “to calculate a company’s overall ranking, the three component

scores were standardized, combined using a weighted average (45 percent for the

Environmental Impact Score, 45 percent for the Green Policies Score, and 10 percent for the

Reputation Survey), and mapped to a 100-point scale.”

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