Electricity and the Environment !

2014!

Legislative advertising paid for by: John W. Fainter, Jr. • President and CEO Association of Electric Companies of Texas, Inc. 1005 Congress, Suite 600 • Austin, TX 78701 • phone 512-474-6725 • fax 512-474-9670 • www.aect.net

2

AECT Principles!

• AECT is an advocacy group composed of member companies committed to:

- Ensuring a modern, reliable infrastructure for the supply & delivery of electricity.

- Supporting efficient competitive markets that are fair to customers and market participants.

- Supporting consistent and predictable oversight and regulation that will promote investment and ensure the stability of Texas’ electric industry.

- Promoting an economically strong and environmentally healthy future for Texas, including conservation and efficient use of available resources.

• AECT member companies remain dedicated to providing Texas customers with reliable service and are committed to the highest standards of integrity. The Association of Electric Companies of Texas, Inc. (AECT) is a trade organization of investor-owned electric companies in Texas. Organized in 1978, AECT provides a forum for member company representatives to exchange information about public policy, and to communicate with government officials and the public. For more information, visit www.aect.net.

3!

Texas is Among Nationwide Leaders!in Low Emissions Rates!

States  With  NOx,  SO2  and  CO2  Emissions  Rates  Below  the  Na9onal  Average  for  Electric  Genera9on  

Source: EPA Air Markets Program Data (2013, Preliminary Data)

4!

13  Northeast  States  &  DC   Texas  

Sources: CO2, NOx, SO2: EPA Air Markets Program Data (2013, Preliminary Data); Land Area: US Census Bureau, 2010

Land Area 247,175 mi2 261,232 mi2

Tons of CO2 427,123,780 259,789,897 Tons of SO2 722,257 365,350 Tons of NOx 367,109 133,966

Comparison of Electric Utility Generation Emissions: Texas vs. the Northeast!!

5!

Texas’ Electric Generating Plants Remain Among Cleanest NOx Emitters in the Nation!

Source: EPA Air Markets Program Data (2013, Preliminary Data)

6!

Area

2012 NOx Emission Rate Averages (lbs/

mmBtu) National 0.139 Texas 0.086

0.340 NM

0.086 TX

0.179 OK 0.174

AR

0.109 LA

Texas electric generators have the lowest rate of NOx emissions in the region

Texas is Already Leading the Way in Clean Power Plants Regionally

Source: EPA Air Markets Program Data (2013, Preliminary Data)

7!

Texas’ Electric Generating Plants Below National Average SO2 Emissions Rates!

Source: EPA Air Markets Program Data (2013, Preliminary Data)

8!

Texas’ Electric Generating Plants Also Below Average CO2 Emissions Rates!

Source: EPA Air Markets Program Data (2013, Preliminary Data)

9!

•  AECT member companies represent the largest private owners, builders, and operators of private reservoirs in Texas.

•  Dependable water supplies are essential to the reliable generation of electricity.

–  Water supply is generally obtained in the form of water contracts/rights, prior to the construction of an electric generation station.

–  Water contracts/rights are secured at a level to ensure a reliable water source during future drought periods.

–  It is important to note that most of this water is not consumed: water consumed for electric generation is currently 4% of total Texas water demand.

•  The reliable generation of electricity is necessary for pumping water to cities and farms, and for water treatment and sewage treatment – among other necessities.

•  Moreover, a reliable Texas electricity industry is necessary for the state to meet the

needs of our growing population and the new and growing businesses that fuel our state’s economy.

Overview of Water Use !by Electric Generators in Texas!

10!

•  The graphic above is a simplified example of a power plant’s use of water for steam generation.

•  Most power plants heat water in a closed system until it becomes steam, then pressurize that steam to turn a generating turbine.

•  The steam is then routed to a condenser, where the water is condensed and reused in the steam cycle.

How Texas’ Steam Power Plants!Use Water!

Turbine   Generator   Transformer      Pump  

   Combus9on  

   Water  

   Steam  

   Cooling  Water  

Condenser  

   Fuel  

   Controls  

   Stack  

Electricity  Flow  of  Power  

Flow  of  H2O  

Flow  of  H2O  

11!

•  Many electric generating facilities in Texas obtain TCEQ permits for use of fresh surface water or surface saltwater as well as groundwater conservation district permits for well water withdrawals.

•  Electric generating facilities in Texas are required to obtain TCEQ permits for their wastewater discharge.

–  AECT member companies have an outstanding record of compliance with state and federal water quality standards and requirements, which includes rigorous monitoring of the wastewater discharge

•  In addition to complying with state and federal water quality regulations, AECT member companies are committed to practicing sound water conservation. We:

–  Reuse water whenever possible –  Capture storm water runoff –  Restore, enhance and create aquatic habitats –  Preserve ecosystems –  Enhance and create valuable wetlands

•  Many reservoirs created by electric generating companies are used for recreational

purposes, including camping, boating, fishing and swimming.

Management and Use of Water at Texas’ Power Plants!

12!

•  The typical American household consumes 300 gallons of water each day. Producing the electricity consumed by that household requires only about 9½ gallons.

•  Only about 3% of an average resident’s total daily consumption of electricity is needed to take care of all of daily water needs.

–  This includes pumping the raw water from the ground or lake, pumping it to a treatment plant and treating it, delivering the treated water to the resident and treating the resulting wastewater.

•  EPRI’s Water Conservation & Technology Center report supports once-through cooling used on the majority of fossil fuel-fired power plants today, finding that “Mandating one cooling technology may result in job losses and have unintended consequences,” due to the costs and potential impact on the broader state economy.

Recent Key Findings!On Water Use in Texas!

Source: Viability and Impacts of Implementing Various Power Plant Cooling Technologies in Texas, prepared for EPRI by Texas A&M University, July 2012

13!

•  Generators are taking many actions to help ensure water supplies allow for reliable operation. Examples include:

–  Implementing water conservation measures –  Reusing water whenever possible –  Using treated municipal sewage effluent for cooling –  Upgrading power plant processes to minimize or eliminate use of water for

non-cooling purposes –  Capturing, treating and using storm runoff from the plant site –  Procuring additional water rights –  Building pipelines to remote water sources –  Adding pumping capability –  Using advanced water treatment systems to treat and use surface water that

naturally contains high levels of minerals or dissolved solids, thus avoiding use of higher quality surface water

Mitigating Drought Effects!

14!

•  Zebra mussels clog cooling water intake valves, as well as impacting water supply. The mussels have multiplied so quickly in Lake Texoma that the North Texas Municipal Water District is no longer able to pump water.

•  Hydrilla, a non-native invasive aquatic plant, is found in over 100 bodies of water in Texas. In great quantities, it can affect water supplies and operations of power plants.

Additional Water Challenges:!Invasive Species!

15!

•  Water consumption for electric generation is currently 4% of total Texas water

demand.

–  The Texas Water Development Board projects this to grow to 7.4% by 2060. It is noteworthy that this increase in water usage is sufficient to provide electricity for a population projected to grow over the same time frame by 82%.

•  AECT member companies have made substantial investments to secure water contracts/rights and groundwater resources and build and maintain reservoirs in advance of actual use.

•  All of these water contracts/rights and groundwater resources have been or are held for substantial periods of time for future generating units and also during drought periods for existing power plants.

•  AECT member companies are working hard to ensure adequate water supply for reliable electric generation, including building pipelines to remote water sources, seeking additional water rights, adding pumping capability, and use of effluent for cooling, and implementing water conservation measures.

Generation and Water Usage:!Summary!

16!

Selected Environmental Programs and Fees

•  The electric industry is among the most heavily regulated in the nation, complying with hundreds of regulations and paying millions of dollars in fees annually.

Selected Current Environmental Programs - Compliance with National Ambient Air Quality Standards -  State Implementation Plan -  NOx reductions for electric generating units -  Clean Air Interstate/Clean Air Mercury Rules -  New Source Review (NSR)���Prevention of Significant Deterioration -  Non-attainment NSR, including offset -  State Minor NSR -  Title V and Acid rain permits -  Compliance Assurance Monitoring -  Continuous Emissions Monitoring Systems -  Toxic Release Inventory -  Monitoring cooling water -  Mass Emission Cap and Trade Program

Selected Current Environmental Fees - Title V federal operating permit fees ���- Air inspection fees ���- Air quality permit fees ���- Air quality permit renewal fees ���- Wastewater inspection fees ���- Wastewater permit application fees ���- Water quality fees ���- Potable water fees ���- Water use permit application fees ���- Hazardous waste generation fees ���- Non-hazardous waste fees -  Low level radioactive waste fee -  Injection well fee

17!

Giving Back to the Environment

•  AECT member companies help to improve our environment through stewardship, support for new technologies and partnership with other agencies.

Environmental Stewardship!-  Reducing releases of chlorofluorocarbons from electrical equipment - Recycling coal combustion products - Educating schools and communities about renewable energy - Designating land and reservoirs for public recreational use - Preserving and restoring forests by planting millions of trees - Helping other industries adopt pollution-prevention plans - Launching education campaigns to help communities save energy - Creating wetlands and wildlife habitats on company properties -  Reclaimed water utilization -  Offering renewable energy products to retail customers

Environmental Partnerships !-  Climate Challenge Program - Energy Star - Energy Smart Schools - Environment Research Program

-  EPA SF6 Partnership program

-  Mickey Leland Internship Program - TCEQ Teaching Environmental Science -  Green Lights - Habitat Protection - Learning From Light! - Millennium Council - Million Solar Roofs - National Energy Education Development (NEED) Project - Natural Gas Star

18!

Web: AECT.net Blog: AECTnet.wordpress.com

Twitter: twitter.com/AECTnet Facebook: AECT Advocacy Email: info@aect.net