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EREN NETWORK NEWS -- January 22, 2003
A weekly newsletter from the U.S. Department of Energy's (DOE)
Energy Efficiency and Renewable Energy Network (EREN).
<http://www.eren.doe.gov/>
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Featuring:
*News and Events
           14 Organizations to Cut Greenhouse Gases 4 Percent by 2006
           Zilkha Proposes 180-Megawatt Wind Plant for Washington
           Hawaiian Electric Launches Renewable Energy Subsidiary
           Green Mountain Energy to Stop Selling Power in Connecticut
           Toyota to Discontinue Electric Version of its RAV4
           New York State Supports Industrial Energy Efficiency

*Site News
           New Hampshire Department of Environmental Services (NHDES)

*Energy Facts and Tips
           EIA Updates Projection of U.S. Winter Heating Costs

*About this Newsletter


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NEWS AND EVENTS
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14 Organizations to Cut Greenhouse Gases 4 Percent by 2006

Fourteen organizations, including several large corporations, have
entered into a legally binding agreement to cut their greenhouse gas
emissions by 4 percent within the next four years. The 14 entities
announced last week that they are forming the Chicago Climate
Exchange, a voluntary cap-and-trade program for reducing greenhouse
gas emissions. The program will allow entities that exceed their
emissions goal to sell carbon credits to organizations that are
falling short. Trading will begin in spring, and will include
so-called "sinks" -- farm and forestry projects that help reduce
greenhouse gas concentrations in the atmosphere -- as well as
"offsets," which are emissions-reducing projects in other countries
that are funded by the U.S. entities.

The 14 entities include American Electric Power (AEP); Baxter
International Inc.; the City of Chicago; DuPont; Equity Office
Properties Trust; Ford Motor Company; International Paper; Manitoba
Hydro; MeadWestvaco Corporation; Motorola, Inc.; STMicroelectronics;
Stora Enso North America; Temple-Inland Inc.; and Waste Management,
Inc.

Carbon dioxide is the primary greenhouse gas, and since most energy
sources produce carbon dioxide, energy efficiency is one of the key
strategies for achieving greenhouse gas reductions. Methane is also
a powerful greenhouse gas, so bioenergy projects that capture
methane and use it as an energy source also reduce greenhouse gas
emissions, as do other renewable energy projects. See the Chicago
Climate Exchange press release, in PDF format only, at:
<http://www.chicagoclimateexchange.com/pdf/CCXPressRelease011603.pdf>.

See also the Chicago Climate Exchange Web site at:
<http://www.chicagoclimateexchange.com/>.

As noted by AEP, the Chicago Climate Exchange is that company's way
of participating in the Bush Administration's voluntary climate
change program. The company may use power plant efficiency
improvements and renewable generation, such as wind power and
biomass co-firing at its coal plants, to meet its goals, although it
also expects to buy credits through the exchange. See the January
16th press release by selecting "News Releases" on the AEP Web site
at: <http://www.aep.com/newsroom/default.asp>.


Zilkha Proposes 180-Megawatt Wind Plant for Washington

Zilkha Renewable Energy announced last week that it has submitted a
permit application to build a 181.5-megawatt wind facility near
Ellensburg, Washington, about 70 miles east of Tacoma. The Kittitas
Valley Wind Power Project will generate enough electricity to serve
about 45,000 homes in the area. See the Zilkha press release at:
<http://www.zilkha.com/news_single.asp?id=111&noflash=1>.

Among other recent wind power announcements, the Tennessee Valley
Authority (TVA) plans to expand its Buffalo Mountain wind plant
tenfold, adding 27 megawatts of new wind turbines to the site near
Oliver Springs, Tennessee. In Illinois, the state's first wind
facility received approval from the Board for Bureau County, where
the wind plant will be built. The Crescent Ridge Windpower Project
will generate 51 megawatts, enough for 20,000 Illinois homes. And
FPL Energy, LLC, started up its 66-megawatt Mountaineer Wind Energy
Center in northern West Virginia in December, as well as its
98-megawatt Hancock County Wind Energy Center in northern Iowa. It
also expanded the Stateline Wind Energy Center on the Washington and
Oregon border by 37 megawatts, to 300 megawatts. The company plans to
add an additional 700 to 1,200 megawatts of new wind power in 2003.
See the announcements from TVA, Crescent Ridge, and FPL Energy,
respectively, at:
<http://www.tva.gov/news/releases/janmar03/morewind.htm>,
<http://www.crescentridgewind.com/>, and
<http://www.fplenergy.com/news/contents/03002.shtml>.

A number of agencies are seeking to develop more wind resources. In
early December, the New York Power Authority (NYPA) requested bids
for up to 50 megawatts of wind power, and on December 18th,
Wisconsin's We Energies requested proposals for up to 200 megawatts
on wind power. See the NYPA and We Energies press releases at:
<http://www.nypa.gov/press/2002/021209a.htm> and
<http://ir.ccbn.com/ir.zhtml?t=wec&s=400>.


Hawaiian Electric Launches Renewable Energy Subsidiary

Hawaiian Electric Company (HECO) announced on January 3rd its launch
of a new subsidiary that will invest in renewable energy projects
for Hawaii. Called Renewable Hawaii, the new subsidiary will be
initially capitalized at a level of $10 million. In 2002, HECO and
its neighbor island subsidiaries generated 7 percent of their
electricity from renewable sources. See the January 3rd press
release by selecting "News & Press Info" under "About HECO" on the
HECO Web site at: <http://www.heco.com/CDA/frontDoor/>.


Green Mountain Energy to Stop Selling Power in Connecticut

Green Mountain Energy Company (GMEC) announced last week that it
will stop selling green power in Connecticut at the end of March.
The company has 1,312 customers in the state, but claims that
current state regulations make competitive power sales there cost
prohibitive. In recent months, GMEC has been the only energy
supplier actively signing up residential customers in the state.
See the January 17th press release from GMEC at:
<http://www.prnewswire.com/micro/greenm>.


Toyota to Discontinue Electric Version of its RAV4

Toyota Motor Corporation announced last week that it will
discontinue production of its RAV4 EV, an all-electric sport utility
vehicle, this spring. In a list of "Frequently Asked Questions" on
the Toyota Web site, the company blamed low sales for its decision,
saying that hybrid electric systems and other advanced technologies
had a greater potential. Twenty-five Toyota dealerships sold just
216 RAV4 EVs from February to mid-November 2002. The announcement
came just one week after the California Air Resources Board
announced plans to delay its Zero-Emissions Vehicle program. See the
Toyota RAV4 EV Web site at:
<http://www.toyota.com/html/shop/vehicles/ravev/rav4ev_0_home/>.


New York State Supports Industrial Energy Efficiency

The New York State Energy Research and Development Authority
(NYSERDA) has been busily promoting industrial energy efficiency
throughout the state in recent weeks. NYSERDA provided nearly
$735,000 to install high-efficiency chillers at IBM's East Fishkill
facility, cutting energy use for cooling by 15 percent. In
Lackawanna, the Electro Abrasives Corporation is drawing on NYSERDA
incentives totaling nearly $480,000 for its million-dollar project
to upgrade a variety of air-handling equipment. The project will cut
the plant's electrical load by more than 500 kilowatts, saving more
than $285,000 per year in electricity costs. And in Ravena, the
Lafarge Building Material plant -- one of the largest cement plants
in the world -- used NYSERDA incentive payments of more than
$555,000 to upgrade its raw material mills, equipment for rotating
its kilns, and cooler fans, reducing its electrical demand by
2,460 kilowatts. To help respond to power emergencies, the company
installed a sophisticated power monitoring system that will allow it
to cut its electrical load by an additional 22,000 kilowatts within
about one hour. NYSERDA is also providing more than $1.2 million to
seven municipal water and wastewater projects that are employing
energy-efficient techniques of treating water. See the NYSERDA press
releases at: <http://www.nyserda.org/press/2002/dec04_02.html>,
<http://www.nyserda.org/press/2003/jan06_03.html>,
<http://www.nyserda.org/press/2003/jan14_03.html>, and
<http://www.nyserda.org/press/2003/jan02_03.html>.


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SITE NEWS
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New Hampshire Department of Environmental Services (NHDES)
<http://www.des.state.nh.us/ard/climatechange/>

The new Energy Programs/Climate Change Web site from NHDES features
energy saving information for individuals and local schools and
businesses, as well as information on climate change. The site
is part of the NHDES Climate Change Challenge, which provides
recommendations for the state to reduce greenhouse gas emissions.


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ENERGY FACTS AND TIPS
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EIA Updates Projection of U.S. Winter Heating Costs

DOE's Energy Information Administration (EIA) updated its projection
of winter heating costs in the United States in early January,
predicting more severe financial impacts for those using natural gas
for heating. Compared to last year, households using natural gas
will likely pay 34 percent more this winter; back in November, the
EIA projected an increase of only 25 percent. Increases for other
heating fuels stayed close to earlier projections: Propane users
will see an increase of 20 percent over last year, fuel oil users
will see a 43 percent increase, and electricity users should see
their bills go up by 12 percent over last year. Although winter
temperatures have been average so far, the cutoff of oil exports
from Venezuela and sharply falling levels of natural gas in storage
have caused fuel prices to rise rapidly, although those price
increases may not be showing up on heating bills yet. See the EIA
Short Term Energy Outlook at:
<http://www.eia.doe.gov/emeu/steo/pub/contents.html>.

Meanwhile, the National Oceanic and Atmospheric Administration
(NOAA) reported on January 9th that the current El Nino has reached
its "mature stage" and will linger through the end of spring. That
should bring warmer-than-average temperatures across the northern
part of the country, lowering the cost of heating. See the NOAA
press release at: <http://www.noaanews.noaa.gov/stories/s1080.htm>.


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ABOUT THIS NEWSLETTER
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