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About Power Partners℠

 

 About Power Partners

The electric power industry has partnered with the Department of Energy (DOE) to create Power Partners — a joint government-industry initiative to reduce greenhouse gas emissions. Through Power Partners, the power sector and DOE are working together to develop and implement voluntary climate actions to sustain economic growth.

The electric power sector participates in the Climate VISION program through the Electric Power Industry Climate Initiative (EPICI), an umbrella group of power sector organizations. The memberships of the seven organizations that comprise EPICI represent 100% of the power generators in the United States:

  APPA The American Public Power Association represents the interests of the nation’s nearly 2,000 not-for-profit community- and state-owned electric utilities.
  LPPC The Large Public Power Council is an organization of 24 of the largest publicly owned electric utilities. Publicly owned electric utilities provide electric service to more than 40 million Americans.
  EEI The Edison Electric Institute is the association of U.S. shareholder-owned electric companies, international affiliates, and industry associates worldwide. EEI’s U.S. members serve 97 percent of the ultimate customers in the shareholder-owned segment of the industry, and 71 percent of all electric utility ultimate customers in the nation.
  EPSA The Electric Power Supply Association is the national trade association representing competitive power suppliers. Using the cleanest, most efficient generating technologies available, EPSA’s members are serving the nation’s growing need for power.
  NRECA The National Rural Electric Cooperative Association is the national service organization that represents the nation’s 900-plus, consumer-owned electric cooperatives, which provide electric service to more than 39 million people in 47 states.
  NEI The Nuclear Energy Institute is the policy organization of the nuclear energy and technologies industry and participates in both national and global policy-making processes. NEI’s objective is to ensure the formation of policies that promote the beneficial uses of nuclear energy and technologies in the United States and around the world.
  TVA The Tennessee Valley Authority is a federal corporation and the nation’s largest public power company. Congress established TVA in 1933 primarily to provide flood control, navigation, and electric power in the Tennessee Valley region.

Power Partners climate actions are guided by the principles of improved energy efficiency, increased investments in research and development, technological innovation, market-based initiatives, and cost-effective carbon dioxide (CO2) emissions reductions. In addition to individual company actions, which are the cornerstone of Power Partners voluntary programs, member companies throughout the electric power industry are participating in several, industry-wide initiatives to reduce, avoid, and sequester greenhouse gas emissions.
 

 Power Partners Annual Report

The reporting plan for Power Partners is described in the December 13, 2004 Climate VISION Memorandum of Understanding between the U.S. electric power sector and the U.S. Department of Energy:

The Power Partners will prepare an annual report on activities and accomplishments under this MOU, beginning two calendar years after this MOU is signed by the Parties. This report shall present the actions taken and results achieved through the Climate VISION program during the preceding year and shall include an analysis that explains how these activities and accomplishments represent a meaningful contribution by the power sector to the President’s 18 percent GHG emission intensity reduction goal. In support of this effort, the Power Partners will develop a standardized metric for annual reporting to measure progress in reducing carbon emission intensity for the electric power sector. This report and accompanying analysis will reflect trends and conditions within the power sector and other major sectors of the U.S. economy.

The first Power Partners Annual Report was published in January 2007. The full report (PDF, 3.6MB) can be downloadable from this website using this link: Reports&pubs\PowerPartners(sm)-AnnualReport-Jan2007.pdf  Progress will also be reported on DOE's Climate Vision website.

 Power Partners: Reported Results

    Power Partners Results for 2002-2005:

From the Executive Summary of the January 2007 Power Partners Annual Report, The Power Partners presented their estimate of progress made over the 2002 to 2005 period. In 2005, only three years into the program, the GHG emissions intensity was already 2.54 percent lower than the base year average:

"Our industry is currently on track to meet its reduction targets, with adjusted power sector carbon intensity approaching a three- percent reduction compared to the baseline level after only three years into the 10-year program. ... Achieving the goal set forth in the MOU will be a significant accomplishment when considering the difficult challenges the electric power sector faces. ... However, as this report demonstrates, the Power Partners have made important progress to date and we are on track to reach our goal. The Power Partners look forward to continuing to work together with DOE and other government agencies to find innovative ways to reduce the GHG emissions intensity in the power sector—and ultimately to help meet the national emissions-intensity goal."

    Power PartnersPreliminary Results for 2006 (CO2 only):

In November 2007, the Energy Information Administration published its estimates for GHG emissions for 2006. This report, "Emissions of Greenhouse Gases in the United States 2006" (Report #: DOE/EIA-0573(2006), November 2007), is available from EIA's website at ftp://ftp.eia.doe.gov/pub/oiaf/1605/cdrom/pdf/ggrpt/057306.pdf.

According to EIA's preliminary estimates, 2006 was a year of enormous progress in the electric power sector's efforts to reduce GHG intensity.  EIA reported that from 2005 to 2006, electricity demand was essentially flat and the carbon intensity of the electricity supply fell, leading to a drop in electric power sector emissions. Additionally, from 2000 to 2006, as the overall efficiency of U.S. electricity generation has increased, there has been a decline in electric power sector energy losses relative to total sales, which has helped to mitigate the sector’s carbon dioxide emissions. As seen in the table below (Table 9 from "Emissions of Greenhouse Gases in the United States 2006"), electric power sector CO2 emissions in 2006 decreased by 53.2 MMTCO2, a decline of about 2.2 percent in a single year:
 

In terms of Net Generation, EIA data for 2006 show an increase of 0.15 percent for the electric power sector. This slight generation increase, coupled with the 2.2 percent decline in CO2 emissions, indicate a 2.3 percent decrease in CO2 intensity in 2006 relative to 2005.,

The next Power Partners Annual Report will update their estimate of progress made to include the 2006 period. While preliminary results from EIA appear very favorable, the estimates to be reported in the Power Partners Annual Report can be expected to show changes, either positive or negative. First, the EIA estimates for 2006 estimates are labeled as preliminary, and revisions can be expected in subsequent reports. Second, the estimates above cover only CO2, and as such does not capture the impact of several categories of voluntary actions that are measured by Power Partners, such as improving end-use energy efficiency and to reducing electricity demand, improving transmission and distribution efficiency, and “off-system” actions such as tree-planting programs. These additional factors are measured and incorporated into the Power Partners Intensity metric, and will be reported in their next Annual Report.
 

 About Climate VISION

Power Partners  is a sector initiative within the broader Climate VISION program. Early in his first term, President Bush directed his Administration to develop a new approach to addressing climate change. As part of a Global Climate Change Initiative (GCCI), the President set a national goal of reducing greenhouse gas intensity by 18 percent over 10 years, and challenged the business community to take part in the effort.

In February 2003, the federal government and industry organizations representing thousands of companies from 12 energy-intensive economic sectors joined in a voluntary partnership called Climate VISION. As of 2006 there are 15 industry partners including aluminum, automobile manufacturers, the Business Roundtable, cement, chemical manufacturers, electric power, forest products, iron and steel, lime, magnesium, minerals, mining, oil and gas, railroads, and semiconductors. Joining in this presidential initiative are the Department of Energy, Department of Transportation, Department of Agriculture, and Environmental Protection Agency.

Climate VISION works with industry to identify and pursue cost-effective solutions to reduce emissions using existing technologies; develop tools to calculate and report emission intensity reductions; speed the commercial adoption of advanced technologies; and develop strategies to reduce emissions intensity in other economic sectors.
 

 Climate VISION Progress Report 2007

On February 1, 2008, the U.S. Department of Energy released the Climate VISION Progress Report 2007, which reports on the actions taken by energy-intensive industries to improve greenhouse gas emissions intensity of their operations from 2002 to 2006. The report indicates that the power and energy-intensive industrial sectors improved their combined emissions intensity by 9.4 percent over this four year period, and in 2006, actual greenhouse gas emissions for these sectors fell a combined 1.4 percent.

The report includes reports for each of the Climate VISION partners' activities and progress. Since the program launch in 2003, the Climate VISION partners report that they are making progress, and many are ahead of schedule. Collectively, the success reported by the individual sectors is also evident in GHG intensity data for the U.S. economy and the overall industrial and power sectors (the “Industry & Power Group”). For the Industry & Power Group, GHG intensity improved 9.4 percent from 2002 to 2006, substantially better than the 5.4 percent improvement in the Group’s baseline forecast. A substantial intensity improvement of about 2.8 percent in 2005 followed by another 5.2 percent in 2006 more than made up for weaker-than-forecasted improvements in 2003 and 2004. This performance relative to the baseline forecast is graphed below:

 

 For More Information on Power Partners and Climate VISION

"Climate VISION: Electric Power Sector". http://www.climatevision.gov/sectors/electricpower/index.html

Climate VISION Progress Report 2007, published Feb. 1, 2008,
http://www.climatevision.gov/sectors/progress_report/pdfs/CV_Progress_Report_Final_Report.pdf.

The U.S. Department of Energy released the Climate VISION Progress Report 2007, which reports on the actions taken by energy-intensive industries to improve greenhouse gas emissions intensity of their operations from 2002 to 2006. The report indicates that the power and energy-intensive industrial sectors improved their combined emissions intensity by 9.4 percent over this four year period, and in 2006, actual greenhouse gas emissions for these sectors fell a combined 1.4 percent.

Edison Electric Institute, Power Partners Annual Report, published January 2007.
Downloadable from this website at:
Reports&pubs\PowerPartners(sm)-AnnualReport-Jan2007.pdf 

As described in the December 13, 2004 Climate VISION Memorandum of Understanding between the U.S. electric power sector and the U.S. Department of Energy, "The Power Partners will prepare an annual report on activities and accomplishments under this MOU, beginning two calendar years after this MOU is signed by the Parties. This report shall present the actions taken and results achieved through the Climate VISION program during the preceding year and shall include an analysis that explains how these activities and accomplishments represent a meaningful contribution by the power sector to the President’s 18 percent GHG emission intensity reduction goal. In support of this effort, the Power Partners will develop a standardized metric for annual reporting to measure progress in reducing carbon emission intensity for the electric power sector. This report and accompanying analysis will reflect trends and conditions within the power sector and other major sectors of the U.S. economy."

Edison Electric Institute, "Power Partners : EEI Industry Initiatives". http://www.ji.org/climate_05.pdf

Edison Electric Institute, "Power Partners : Voluntary Climate Actions to Sustain Economic Growth". http://www.eei.org/industry_issues/environment/climate/pp_overview_brochure.pdf%20%20

Letters from the EPICI member organizations to Secretary of Energy Abraham outlining the organization's voluntary commitments.

bullet APPA and LPPC Commitment Letter
bullet EEI Commitment Letter
bullet EPSA Commitment Letter
bullet NEI Commitment Letter
bullet NRECA Commitment Letter
bullet TVA Commitment Letter

U.S. Department of Energy, "DOE News: Department of Energy–U.S. Power Sector Sign MOU on Voluntary Efforts to Reduce Greenhouse Gas Emissions", December 13, 2004,
 http://www.climatevision.gov/sectors/electricpower/pdfs/powersector_mou_pressrelease.pdf

U.S. Department of Energy, Press Release, "DOE Releases Climate VISION Progress Report 2007, Outlines Industry Progress in Reducing Greenhouse Gas Emissions Intensity through Climate VISION Partnership," February 8, 2008,
http://www.climatevision.gov/sectors/progress_report/index.html

U.S. Department of State, Bureau of Oceans and International Environmental and Scientific Affairs, "Global Climate Change Initiative," Fact Sheet, August 23, 2002,
http://www.state.gov/g/oes/rls/fs/2002/12956.htm.

 

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Website prepared for the Edison Electric Institute
and the Electric Power Industry Climate Initiative

Prepared by Twenty-First Strategies, LLC.
Copyright © 2008.  All rights reserved.
Last revised: June 20, 2008.