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Progress EnergyIssues OverviewProgress EnergyIssues Overview
April 25, 2006
Don Cooke
Sr. Environmental Coordinator
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Progress Energy at-a-glance
Progress Energy service territory in green
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
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Fuel Sources
Year-End 2005
1%
46%34%
19% Coal
Nuclear
Gas/Oil
Hydro
Clean AirClean Air
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Emissions are down
Source: EPA. "Latest Findings on National Air Quality: 2003 Status and Trends."
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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
7Source: Progress Energy’s Report to Shareholders, 2006
Clean Smokestacks Impact
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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).
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Emissions Control Equipment
Boiler ScrubberTower(Removes
SO2)
Flue GasFlue Gas
SCR(Removes
NOx)
Precipitator(Removes
Particulates)
Stack
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Clean Smokestacks Emissions Controls
NOx Controls 2006: Low-NOx burners - Lee 2, Sutton 2 2007: SCR - Asheville 1 2010: ROTAMIX - Lee 3
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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
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Additional Air Quality Regulations Clean Air Interstate Rule Clean Air Visibility Rule Clean Air Mercury Rule
New GenerationNew Generation
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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
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Electricity generation options Coal Natural gas Renewable sources Nuclear
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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
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Coal-fired plantsAdvantages Baseload generation Plentiful fuel supply New technology reduces
emissions
Challenges Environmental issues New technology adds
additional costs and risks Fuel costs
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Natural gas-fired plantsAdvantages Fewer emissions than coal or
oil Efficient fuel source Low capital costs Construction time
Challenges Fuel volatility Fuel accessibility Limited world reserves
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Wind technologyAdvantages 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
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Solar technologyAdvantages
Plentiful resource Renewable and emission-free Low operating costs
Challenges Limited generating capability High capital costs
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BiomassAdvantages 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
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Nuclear energy
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
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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