Power Generation Emissions & Control

May 9, 2001

Mohsen Nazemi, P.E. Assistant Deputy Executive Officer South Coast Air Quality Management District

Generation Capacity in California by Source

Nuclear 8% Geothermal 5% Natural Gas 52% Hydroelectric 27% Other Fossil Fuel 2% Solar/Wind 3% Other NonFossil Fuel 3%

Generation Capacity: 55,500 MW Import Capacity: 8,000 MW

Source: California Energy Commission

South Coast AQMD Goal/Concerns

Goal - Meet Californias Power Demand and Protect the Air Quality in South Coast Area Concerns - Increased Use of In-Basin Uncontrolled or Dirty Central Electrical Generation Units - Power Plants Delayed Installation of Air Pollution Equipment and Approached Emission Caps - Impact of Power Plants on RECLAIM and RTC Prices - Increased Use of Diesel-Fired Emergency Back-up

Age of Oil & Gas-Fired Plants in California

(% of Total)

SCR Installation Plans for South Coast Power Plants

Without SCR Equipment Existing Boilers Turbines/IC Engines 39 55 6,138 1,194 7,332 After Retrofits Boilers Turbines/IC Engines 25 53 2,245 1,073 3,318 31% 23 6 7,009 533 7,542 69% 67% 9 3 3,116 412 3,528 33% No. of Units MW % No. of Units With SCR MW %

Comparison of Existing Power Generation & NOx Emissions from Controlled vs. Uncontrolled Units in SCAQMD

100% 80% 60% 40% 20% 0%

Boiler/Turbines Without SCR

68% 32% 95% Emissions (%) MW (%)

5%
Boiler/Turbines With SCR

Basis: 100% Capacity 24 hrs/day

Comparison of Power Generation & NOx Emissions from Controlled vs. Uncontrolled Units in SCAQMD After Retrofits

80% 60% 80% 40% 20% 0% Boiler/Turbines Without SCR Boiler/Turbines With SCR 20% 31%

69% MW (% )

Emissions (% )

Basis: 100% Capacity 24 hrs/day

SCR Installation Plans for Existing Units Under ISO

ISO Proposed Schedule (By 6/01) Statewide 4,360 MW (67%) 18 Units (75%) ISO Proposed Delayed 2,229 MW (33%) 6 Units (25%)

SCAQMD

2,250 MW (82%) 9 Units (82%)

495 MW (18%) 2 Units (18%)

Initial RECLAIM and Power Plants Allocations vs. Power Plants NOx Emissions

40,000

Tons of NOx

30,000

20,000

10,000

1994

1995 1996 1997 1998

1999 2000 2001

2002 2003 2004 2005

Compliance Year Utility Allocations Other Industry Allocations Utility Emissions

Comparison of Emissions from Power Generation Units

30
(20-30)

25

20
NOx (lb/MW-Hr) .

15

10
7.0

5
(1.5 - 3.0) (0.05-0.12) 0.16 0.42 0.8

4.4 (3.0 - 4.0)

0
Controlled Power Plant (CC Turbine or Boiler) Controlled Peaking Turbine Controlled IC Uncontrolled Uncontrolled Uncontrolled Controlled Engine or Peaking Power Plant Power Plant Emergency IC Micro Turbine Turbine (Boiler) (Turbine) Engine Controlled Diesel IC Engine Uncontrolled Diesel Emergency IC Engine

Future Steps/Objectives

Accelerate Replacement & Control of Existing Dirty Units Support/Promote Use of Clean New Generation Technologies for New Power Plants and Distributed Generation Support/Promote Environmental Dispatch (Use Cleanest Units first and Dirtiest Units last and only to Avoid

Address Power Plant Emissions Impacts on RECLAIM and RTC Prices Minimize Use of Existing Diesel-fired Emergency Back-Up Implement Executive Orders Support/Promote Conservation Efforts

New Generation Projects in SCAQMD

Plant
AES Huntington Beach LADWP Harbor LADWP Valley Pegasus Power LLC Alliance Colton LLC Alliance Colton LLC Indigo (Wildflower Energy) Bear Valley Electric NRG El Segundo LADWP Valley Mountainview Power Nueva Azalea Oakley Power Innovators Stocker Resources Stocker Resources Calpine: Teayawa City of Vernon THUMS AES Redondo LLC Magnolia Power

City
Huntington Beach Wilmington Sun Valley Chino Colton:Drews Colton:Century Palm Springs Big Bear Lake El Segundo Sun Valley Redlands South Gate Foothill Ranch Fontana Montebello Baldwin Hills Torres Martinez Vernon Long Beach Redondo Beach Burbank

Equipment
2 Boilers: 3 & 4/ Retired Units 5 Turbines Simple Cycle Turbine Simple Cycle 4 Turbines (DWR) 4 Turbines Simple Cycle (DWR) 4 Turbines Simple Cycle (DWR) 3 Turbines Simple Cycle (DWR) 7 IC Engines 2 Turbines 2 Combined Cycle Turbines: Repower for Boilers 1,2,3,4 4 Turbines 2 Turbines Future Projects 1-4 IC Engines 4 IC Engines Lean Burn Cogen 2 Turbines Simple Cycle 2 Turbines Simple Cycle 2 Turbines 4 Turbines Simple Cycle 1 Turbines Simple Cycle 3 Turbines 2 Turbines

Maximum Expected Sub-Total Rating (MW) Date of Operation Year (MW)

450 235 47 188 40 40 135 8 630 500 1,056 550 6 to 10 11 50 50 600 94 48 700 310 2001 2001 2001 2001 2001 2001 2001 2001 2003 2003 2003 2003 2001 2001 2001 2001 2002 2002 2002 2003 2003 742 1,010 119 2,744 1,143