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Massachusetts Division of Energy Resources Energy Roundtable April 12, 2002

Massachusetts Division of Energy Resources Energy Roundtable April 12, 2002. 4/12/02. Coal/Oil (10 facilities) 2,997 MW. Natural Gas (10 facilities) 2,277 MW. Hydro (3 facilities) 1,166 MW. Windpower (2 facilities) 78 MW. PG&E NEG Generation Mix.

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Massachusetts Division of Energy Resources Energy Roundtable April 12, 2002

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  1. Massachusetts Division of Energy Resources Energy Roundtable April 12, 2002 4/12/02

  2. Coal/Oil(10 facilities) 2,997 MW Natural Gas (10 facilities) 2,277 MW Hydro (3 facilities) 1,166 MW Windpower (2 facilities) 78 MW PG&E NEG Generation Mix *As of 12/31/2001, PG&E NEG had ownership or leasehold interests in 25 operating generating facilities with a net generating capacity of 6,518 megawatts. Source: PG&E National Energy Group Form 10K published on 3/5/2002.

  3. Breakdown of New England Generating Unit Output 4,386 Megawatts Total* PG&E National Energy Group Hydro 1,167 MW Coal/Oil 2,336 MW Natural Gas 2,052 MW *Includes 1,152 MWs under construction

  4. Preserving Diversity Does Not Mean Sacrificing Environmental Protection PG&E National Energy Group plans to invest hundreds of millions of dollars in environmental improvements at Brayton Point Station and Salem Harbor Station over the next several years. Brayton Point Station: Air -$150 - $170 M Reductions in NOX by 80% from 1990 levels Reductions in SO2 by 70% from 1990 levels Water - $58 M - ? 33% reduction in heat and flow of water discharge Mercury Controls - ? Greenhouse Gas Controls - ?

  5. The Benefits of Preserving Diversity • Maintaining a reliable electricity supply • Stabilizing costs

  6. Impact of Removing Coal from the New England Portfolio Estimated cost to the New England economy is more than $500 million

  7. Reliability Concerns • “…major changes are underway in New England’s energy situation and the region is headed toward sharply increased dependence on natural gas, particularly for electric generation. These changes …will have potential risks for the reliability of energy supplies and the cost of energy that will be born by the people of New England.” • Glenn Schleede, Energy Market and Policy Analysis, Inc.

  8. Public Policy Considerations • Past efforts at maintaining diversity • Brayton Point and Salem Harbor were required by the federal government to switch to coal in the late 1970’s and early 1980’s because of concerns about excess dependency on oil • For the future: Who is looking at the cumulative impacts of policies and regulations on fuel diversity?

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