We have initiated numerous projects to reduce emissions in recent years. These projects are aimed at limiting the emission of nitrous oxide and sulfur dioxide, as well as the overall reduction of greenhouse gases. In addition, our plants have air-control technology installed to minimize the amount of emissions in accordance with regulatory levels.
Environmental Upgrades Two Key Facilities In July 2006, we announced plans to install state-of-the-art emission control systems at two Pennsylvania power plants, a major step in the company’s strategy for maximizing the long-term value of its power generation assets while reducing air emissions. The plans call for the installation of a wet flue gas desulfurization system, or scrubber, at the company’s Cheswick Generating Station in Springdale, PA, and for funding our portion of the scrubber installation at the Keystone Generating Station near Indiana, Pennsylvania. Reliant jointly owns the Keystone station with six other entities and operates the facility on behalf of the owners.
We estimate that the cost for the Cheswick scrubber and its portion of the Keystone project will be approximately $350 million. The scrubbers at both facilities are expected to begin commercial operation in 2009. These capital expenditures will be made over time with the majority being incurred from 2007 to 2009.
Installation of scrubbers at these units will remove approximately 98 percent of SO2 from the stations’ flue gases, reducing Reliant Energy’s SO2 emissions by approximately 68,000 tons per year. The systems will also be designed to maximize the removal of mercury.
Greenhouse Gas Reduction Efforts We are actively working to offset carbon dioxide production through reforestation projects in the southern United States. Reforestation projects not only provide sinks for carbon, but also restore vital habitats that are essential to a host of wildlife species. Projects currently include:
PowerTree Carbon Co., an organization comprising several U.S. utility companies that pool funds for reforestation projects in the Lower Mississippi River Valley.
Texas Parks and Wildlife Department and the Conservation Fund on a 540-acre reforestation project in Northeast Texas.
Advancing and Utilizing New Technologies We strive to stay on the cutting edge of technological advances aimed at improving protection of the environment as well as improving operating efficiencies. We have partnered with the Electric Power Research Institute in demonstrating new nitrogen oxides (NOX) reduction technologies such as induced flue gas recirculation and selective catalytic reduction at several of our generating stations.
Two of our California plants, Mandalay and Ormond Beach, were listed in the August 2002 issue of POWER magazine as first and second in the category of lowest NOX emission rates for gas-oil fired plants in the nation.
We are also successfully utilizing dry cooling technology at our plants in Nevada, Mississippi and Pennsylvania in order to conserve valuable water resources. Use of dry-cooling can reduce a plant’s water usage by more than 90% compared to a conventional water-cooled plant.
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