Carbon Mercantile Exchange & Green Carbon Bank

The Center for Environment, Commerce & Energy's Carbon Mercantile Exchange (CMX) is a service that allows clients to trade carbon dioxide, methane, sulfur dioxide, nitrogen oxides, and mercury. Participants can reduce their "emission footprint," the total emissions created by driving, flying, usnig electricity and other activities, by utilizing the service. CMX can be used to complement other emissions offset programs. CMX is easy to use and fully transparent. All transactions are open for public review.

The CMX is a free on-line emissions offset clearinghouse service. Our mission is to promote verifiable reductions in greenhouse and smog-forming gases. The service is open to everyone. It is a market-based system that will rely on the goodwill of the participants to conduct honest trades. Ultimately, we hope the service will be a dynamic portal that will serve as a gateway for innovative emissions reductions. We hope participants will use the service often. We hope that CMX will be one part of a global effort to reduce global climate change and smog in our cities.

The Center for Environment, Commerce & Energy's Green Carbon Dioxide Offset Bank (Green Carbon Bank) (GCB) is a service that allows participants to reduce their "carbon footprint," the total carbon dioxide emissions created by driving, flying, using electricity and other activities. Nuclear power plants, like hydro and wind, do not emit any greenhouse or smog forming gases. Every time a carbon dioxide credit is purchased via the GCB, the credit holder will be designated with an equilavent fission credit certifying that the holder purchased emission free energy. GCB's carbon dioxide credits are based on uprates at nuclear power plants subsequent to October 1, 2010, fission futures from new nuclear power plants and power plant license renewals. Uprates are increases in capacity factors at power plants. Fission carbon dioxide offset futures (fission futures) (FF), will be available upon submittal of applications to the NRC for license renewals, uprates and new nuclear power plants.

GCB funds promote the creation of new sources of emission-free electricity. These offsets are for new sources of emission free production of electricity. In addition to carbon dioxide, offsets can be taken for methane, sulfur dioxide, nitrogen oxides and mercury. Green Power is also available through the GCB. GCB Green Power is available through independent power suppliers at a rate of 15 cents per kilowatt hour (KWH). GCB will receive 1.5 cents per KWH from the independent power supplier for each customer referral. GCB Green Power income is used to promote the production of additional Green Power.

EPA Administrator Names Dr. James H. Johnson, Jr. as Chair of Policy Advisory Group

U. S. Environmental Protection Agency Administrator Lisa P. Jackson has appointed Dr. James H. Johnson, Jr., left, as chair of the National Advisory Council for Environmental Policy and Technology (NACEPT), an independent committee that advises the agency on a broad range of environmental policy, technology, and management issues. He is the first African- American to serve as chair of the committee.

Dr. Johnson is Professor Emeritus of Civil Engineering and former Dean of the College of Engineering, Architecture, and Computer Sciences at Howard University in Washington, D.C. He previously served the university as chair of the Department of Civil Engineering and Interim Associate Vice President for Research. Dr. Johnson’s research interests include the treatment and disposal of hazardous substances, the evaluation of minority environmental policy issues and the development of environmental curricula and strategies to increase the pool of underrepresented groups in the science, technology, engineering, and math disciplines. From 1996-2002, Dr. Johnson oversaw the activities of the Engineering Coalition of Schools for Excellence and Leadership in Education, a National Science Foundation-funded consortium. From 1989-2002, he was the associate director of the EPA-sponsored Great Lakes and Mid-Atlantic Center for Hazardous Substance Research.

Previous service to EPA includes six years on both the Science Advisory Board and the Board of Scientific Counselors, where he served as chair for two years. Dr. Johnson is currently a member of the National Research Council’s Division of Earth and Life Sciences Oversight Committee, and chair of the Anne Arundel Community College Board of Trustees in Maryland. Dr. Johnson has published more than 60 scholarly articles, contributed to three books and co-edited two books. Dr. Johnson received his B.S. from Howard University, M.S. from the University of Illinois and Ph.D. from the University of Delaware.

Platts 5th Annual European Nuclear Power Conference

Platts 5th Annual European Nuclear Power: Prices, Policy and Projects conference has just been announced for June 29–30, 2010 at the Grange St. Paul’s Hotel, London, UK. The conference will continue to assemble and showcase those organisations that are leading Europe’s nuclear revival and those supporting it. Leading operators, project developers, policy makers, observers and financiers will be brought together to debate the challenges faced from policy to finance, discuss and review nuclear projects in their various stages and look to provide attendees with a practical overview of the industry now and moving forward.

Just some of the speakers that have confirmed their participation already include:

Matthias Hartung, CEO, RWE Technology
Jörn-Erik Mantz, Vice President Nuclear New Build, RWE Power
Francesco de Falco, Chief Executive Officer, SVILUPPO NUCLEARE ITALIA
Peter Faross, Director. Nuclear Energy, DG TREN, European Commission
Colette Lewiner, Global Energy, Utilities and Chemicals Leader, Capgemini
Greg Evans, Head of Nuclear, Centrica
Jimmy Wang, Vice General Manager, China Nuclear Power Engineering Co., Ltd. (A CGNPC subsidiary)
Didier Bienfait, Vice President, Nuclear, Bureau Veritas
Kevin Allars, Director for Nuclear New Build Generic Design Assessment, HSE
Jean-Claude Gauthier, Director, ENELA

The 6th Annual China Nuclear Energy Congress 2010

Center Trip To China To Tour Nuclear Power Plants

The 6th Annual China Nuclear Energy Congress 2010, which is going to be held on May 19th – 21st in Beijing China, the most dynamic region in the global nuclear energy industry.

New Trends in China

Nuclear Power Plants In Operation:

Plants, Site, Power Output(MWe), Reactor Type, In-Service Date

Qinshan Phase I, Zhejiang Haiyan, 310, PWR, 1994.4

Daya Bay, Guangdong Shenzhen, 984X2, M310, 1994.5

LingAo, Guangdong Shenzhen, 990X2, M310, 2003.1

Qinshan Phase III, Zhejiang Haiyan, 700X2, CANDU, 2003.7

Qinshan Phase II, Zhejiang Haiyan, 650X2, PWR, 2004.5

Tianwan, Jiangsu Lianyungang, 1060X2, VVER, 2006.8

Until Oct 2009, the number of nuclear power units under construction was 28. The popular view is that the previous target will be doubled by 2020. The 2nd nuclear baby boom is coming led by China with contribution of 5 units every year from 2015.

Nuclear Power Plants Under Construction:

Plants, Site, Power Output(MWe), Reactor Type, Start-up Date

Lingdong, Guangdong Shenzhen, 1080X2, CPR1000, 2005.12

Qinshan Phase II Expansion, Zhejing Haiyan, 650X2, CNP600, 2006.4

Hongyanhe, Liaoning Dalian, 1080X4, CPR1000, 2007.8

Ningde, Fujian Ningde, 1080X4, CPR1000, 2008.2

Fuqing Phase I, Fujian Fuqing, 1080X2, CNP1000, 2008.11

Fangjiashan, Zhejiang Haiyan, 1080X2, CNP1000, 2008.12

Yangjiang, Guangdong Yangjiang, 1080X6, CPR1000, 2008.12

Sanmen, Zhejiang Sanmen, 1250X2, AP1000, 2009.4

Haiyang, Shandong Haiyang, 1250X2, AP1000, 2009.9

Taishan, Guangdong Taishan, 1700X2, EPR, 2009.10

NPPs Will Get Approved:

Plants, Site, Power Output(MWe), Reactor Type, Start-up Date

Changjiang, Hainan Changjiang, 650X2, CNP600, 2010.10

Shidaowan, Shandong Yantai, 200X1, HTR, ----

Fangchenggang, Guangxi Fangchenggang, 1080X2, CPR1000, ----

Taohuajiang, Hunan Yiyang, 125X4, Gen III, 2010.9

Daban, Hubei Xianning, 100X4, Gen III, ----

Pengze, Jiangxi Pengze, 125X4, Gen III, ----

China will focus on Gen II and Gen II+ reactors for the following 5 years, for economical, proved track of record and self-reliance. By 2016, Gen III will dominate. Competition will determine the preference for the AP1000 or the EPR.

(China Decision Makers)

DOE Awards $1.4 Billion Loan Guarantee to BrightSource Energy

The Ivanpah solar project will rely on solar power tower technology, which employs a field of flat mirrors to concentrate the sunlight on a receiver, mounted at the top of a central tower. DOE announced on February 22 its conditional commitments for more than $1.37 billion in loan guarantees to BrightSource Energy, Inc. in support of the construction and start-up of three utility-scale concentrated solar power plants (CSP) in the Mojave Desert of southeastern California.

The loan guarantee is funded under the American Recovery and Reinvestment Act and is predicated on BrightSource meeting financial and environmental requirements before closing on the loan. The Bureau of Land Management is leading a federal review of the project with support from DOE. Pending local, state, and federal regulatory approval, the new plants will generate approximately 400 megawatts (MW) of electricity using the company's proprietary technology. This output would nearly double the existing generation capacity of CSP facilities in the United States.


BrightSource will employ solar power tower technology, which uses thousands of flat mirrors, or "heliostats," to concentrate the sun's heat onto a receiver mounted at the top of a tower. Water pumped to the receiver is boiled into steam, which drives a turbine to produce electricity. Solar power towers allow the capture of a greater percentage of solar energy than other solar thermal technologies. (DOE)

Energy Experts Discuss Northeastern Energy at National Grid

Norris McDonald, Martin Cook, Carolyn Green, Frank Stewart
The American Association of Blacks in Energy (AABE) and the Alliance of Black Professionals (ABP)
held an energy forum today at National Grid in Brooklyn, New York with the theme:

“Future of Northeast Energy – What is on the Horizon?”

Panelists included:

Lisa Crutchfield, National Grid

Martin Cook, National Grid

Carolyn Green, National Chair of AABE

Frank Stewart, National President of AABE

Moderator: Norris McDonald, President Center for Environment, Commerce & Energy

The forum was held in the Metrotech Auditorium and covered a broad array of electricity, energy and environmental issues facing the Northeast. Some questions considered included: Is there adequate electrical capacity to satisfy the needs of Northeastern states in the next few years? Will energy prices negatively affect the Northeast? How could pending carbon dioxide regulations affect the Northeast? What about the influence of the Regional Greenhouse Gas Initiative (RGGI) on a project 'low-carbon' future? Do you know of any policies that are being put into place to address energy efficiency and alternative technology marketing techniques? How are companies and organizations looking to address the "green divide" to make sure minority communities in the Northeast region are not being left behind? Many other questions were addressed during the forum.

Photo: Stephanie George. Renee McClure, Martin Cook, Norris McDonald, Jose Garcia (kneeling), Carolyn Green, Frank Stewart, Bill Suggs, Akil Friday

Lisa Jackson Defends FY 2011 Budget At EP&W Committee

Statement of Lisa P. Jackson Administrator

U.S. Environmental Protection Agency

Legislative Hearing on EPA’s 2011 Budget Proposal Senate Committee on Environment and Public Works

Chairman Boxer convened the Full Committee to examine President Obama’s Fiscal Year 2011 budget for the Environmental Protection Agency (EPA).

FULL STATEMENT

Excerpts:

The $10 billion proposed for EPA in the FY 2011 President’s budget will support key priorities during this time of fiscal challenges. These themes are: taking action on climate change; improving air quality; assuring the safety of chemicals; cleaning up our communities; protecting America’s waters; expanding the conversation on environmentalism and working for environmental justice; building strong state and tribal partnerships; and maintaining a strong science foundation.

The budget includes a requested increase of more than $43 million for additional regulatory efforts aimed at taking action on climate change. It includes $25 million for state grants focused on developing technical capacity to address greenhouse gas emissions under the Clean Air Act. It also includes $13.5 million in funding for implementing new emission standards that will reduce Greenhouse Gas (GHG) emissions from mobile sources such as passenger cars, light-duty trucks, and medium-duty passenger vehicles, developing potential standards for large transportation sources such as locomotives and aircraft engines, and analyzing the potential need for standards under petitions relating to major stationary sources – all through means that are flexible and manageable for business.

A request of $21 million will support continued implementation of the Greenhouse Gas Reporting Rule to ensure the collection of high quality data. This budget also requests an additional $3.1 million to promote work on current and future carbon capture and sequestration projects.

EPA Administrator Jackson Sends Letter to Senators

U.S. EPA Administrator Lisa P. Jackson, right, issued a letter responding to a letter sent to her the evening of February 19 by eight U.S. Senators asking about the agency’s plans for 2010. In the letter, the administrator outlines several of the decisions she has made for 2010-2011:

· No facility will be required to address greenhouse gas emissions in Clean Air Act permitting of new construction or modifications before 2011.

· For the first half of 2011, only facilities that already must apply for Clean Air Act permits as a result of their non-greenhouse gas emissions will need to address their greenhouse gas emissions in their permit applications.

· EPA is also considering a modification to the rule announced in September requiring large facilities emitting more than 25,000 tons of greenhouse gases a year to obtain permits demonstrating they are using the best practices and technologies to minimize GHG emissions.

EPA is considering raising that threshold substantially to reflect input provided during the public comment process. · EPA does not intend to subject smaller facilities to Clean Air Act permitting for greenhouse gas emissions any sooner than 2016.

Full Text of the letter

General Atomics Energy Multiplier Modular Nuclear Reactor

General Atomics has announced a 12-year program to develop a small, commercial nuclear reactor that could run on spent fuel from big reactors. It sounds like a smaller version that is similar to Bill Gates' promotion of the Terra Power Wave (liquid metal fast breeder) Reactor. But unlike Gates' liquid metal (sodium) design, General Atomics' reactor is helium-cooled. The Pebble Bed Modular Reactor (PBMR), which is being developed in China, is also helium cooled. The General Atomics reactors is small enough to be built in factories and hauled on trucks or trains.

The General Atomics reactor (EM2 -Energy Multiplier Module), would be about one-quarter the size of a conventional reactor and have unusual features, including the ability to burn used fuel, which still contains more than 90% of its original energy. Such reuse would reduce the volume and toxicity of the waste that remained. The EM2 would operate at temperatures as high as 850 degrees Centigrade, which is about twice as hot as a conventional water-cooled reactor. General Atomics expects the development effort to cost $1.7 billion, and it intends to seek financial assistance from the Energy Department. The reactor design will have to be certified by the Nuclear Regulatory Commission.

General Atomics has built more than five dozen small reactors over the years, mostly for research purposes, including two gas-cooled units. Its Peach Bottom unit, in Pennsylvania, ran from 1967 to 1974, and its unit at Fort St. Vrain in Colorado produced electricity from 1976 to 1989. (WSJ, 2/22/10)

The Center's Green Carbon Bank (GCB)

The Center for Environment, Commerce & Energy's Green Carbon Dioxide Offset Bank (Green Carbon Bank) (GCB) is a service that allows participants to reduce their "carbon footprint," the total carbon dioxide emissions created by driving, flying, using electricity and other activities. Nuclear power plants, like hydro and wind, do not emit any greenhouse or smog forming gases. Every time a carbon dioxide credit is purchased via the GCB, the credit holder will be designated with an equilavent fission credit certifying that the holder purchased emission free energy. GCB's carbon dioxide credits are based on uprates at nuclear power plants subsequent to October 1, 2010, fission futures from new nuclear power plants and power plant license renewals. Uprates are increases in capacity factors at power plants. Fission carbon dioxide offset futures (fission futures) (FF), will be available upon submittal of applications to the NRC for license renewals, uprates and new nuclear power plants.

GCB funds promote the creation of new sources of emission-free electricity. These offsets are for new sources of emission free production of electricity. In addition to carbon dioxide, offsets can be taken for methane, sulfur dioxide, nitrogen oxides and mercury. Green Power is also available through the GCB. GCB Green Power is available through independent power suppliers at a rate of 15 cents per kilowatt hour (KWH). GCB will receive 1.5 cents per KWH from the independent power supplier for each customer referral. GCB Green Power income is used to promote the production of additional Green Power.

Brandon Shores New Flue Gas Desulfurization Scrubber

Constellation Energy has just completed an $875 million air pollution scrubber at its 26-year-old Brandon Shores coal-fired power plant in Pasedena, Maryland. A pair of 700-foot stacks adjacent to the new scrubber are no longer used because of the new scrubber and 400-foot stack. nearby, which until recently belched toxic, acidic smoke from the power plant, are quiet. The white clouds rising from the stack are almost entirely water vapor.

Brandon Shores, along with Constellation's H.A. Wagner power plant on the same 360-acre riverfront tract, have together been the nation's leading emitter of hazardous air pollutants, according to data from EPA. Constellation's spent more than $1.5 billion to comply with Maryland's Healthy Air Act, which when it was passed in 2006 and requires power plants to reduce harmful emissions by 70 percent to 80 percent by this year, and by 75 percent to 90 percent by 2013. Targeted are releases of nitrogen oxides, sulfur dioxide and mercury - byproducts of burning coal that contribute to environmental and health problems in the state. Nitrogen oxides contribute to ground-level ozone pollution or smog. Mercury is a toxic metal that, in small doses, can damage the brain, nervous system and other organs.

Baltimore Sun photo by Kenneth K. Lam:
Jeff Grynkiewicz and co-workers monitor operations in the control room
Residents near the plant are still jousting with Constellation over its disposal of the ash left after burning coal at the Brandon Shores and neighboring Wagner plants. The company paid a $1 million fine and settled out of court for $54 million more a couple of years ago for contaminating wells in the Gambrills area with ash dumped into an old quarry. Now, most of the ash - which can contain toxic metals and other contaminants - goes into making cement and is put to other beneficial uses, while about 20 percent of it is hauled by truck to a landfill in Virginia. The company is seeking state approval to dispose of ash in an industrial landfill in nearby Hawkins Point.

The water used in the scrubbers is treated wastewater from Anne Arundel's Cox Creek sewage plant and is treated again to state specifications before being discharged into the Patapsco River. Brandon Shores can generate 1,300 megawatts of electricity, enough to power 1 million households for a year. The Brandon Shores scrubber project is the largest environmental construction project ever undertaken by Constellation Energy and is now one of the cleanest coal-burning power plants of its kind in the country.

(Baltimore Sun, 2/20/10, Constellation Overview and Video)

Yes To Wind Power No To Oil Drilling Off Virginia's Coast

Virginia Governor Bob McDonnell (R) and Virginia's U.S. Senators Jim Webb (D) and Mark Warner (D) are promoting offshore wind development and oil drilling off the coast of the state to Department of Interior Secretary Ken Salazar. Virginia's U.S. House delegation have also written letters in support to the secretary. The Center supports the wind development but opposes the oil drilling. The risks of permanently injuring Virginia's coast and ocean resources simply are not worth any oil that might be discovered and developed off its shores. Although wind power projects are hugely industrial in nature, after construction they would have minimal effects on the ocean and the shore.

Governor McDonnell wants Virginia to be first Atlantic Coast state in the country to engage in exploration and drilling for oil and gas offshore. The Minerals Management Service, part of the Interior Department, included Virginia in its five-year plan and began soliciting companies to drill off the coast in 2011. It is the only state on the East Coast included in the plan. But Secretary Salazar halted the process to review the plan and get input from the public. (WashPost, 2/19/10)

The Center's Carbon Mercantile Exchange (CMX)

The Center for Environment, Commerce & Energy's Carbon Mercantile Exchange (CMX) is a service that allows clients to trade carbon dioxide, methane, sulfur dioxide, nitrogen oxides, and mercury. Participants can reduce their "emission footprint," the total emissions created by driving, flying, usnig electricity and other activities, by utilizing the service. CMX can be used to complement other emissions offset programs. CMX is easy to use and fully transparent. All transactions are open for public review.

CMX is a free service to users and is supported by the Carbon Dioxide Reduction (CDR) Program and the Green Carbon Bank (GCB). The CDR Program is designed to reduce emissions of the primary greenhouse gas from vehicles by promoting the use of broadband telecommuting to take vehicles off of the road. The GCB promotes the creation of new sources of emission-free electricity. These offsets are for new sources of emission free production of electricity. In addition to carbon dioxide, offsets can be taken for methane, sulfur dioxide, nitrogen oxides and mercury.

The CMX is a free on-line emissions offset clearinghouse service. Our mission is to promote verifiable reductions in greenhouse and smog-forming gases. The service is open to everyone. It is a market-based system that will rely on the goodwill of the participants to conduct honest trades. Ultimately, we hope the service will be a dynamic portal that will serve as a gateway for innovative emissions reductions. We hope participants will use the service often. We hope that CMX will be one part of a global effort to reduce global climate change and smog in our cities.

FERC Approves Google's Power Marketing Application

The Federal Energy Regulatory Commission (FERC) unanimously approved Google's application to become an electricity marketer, which means it can buy and sell bulk power like a utility. Google made the filing so they can have more flexibility in buying power for their own operations, including their data centers. Data centers have become huge power users.

The Center become a power marketer in order to complement and leverage our Carbon Mercantile Exchange (CMX) and Green Carbon Bank (GCB). These are greenhouse gas offset services. Companies and organizations do not need to own generation facilities or transmission lines to deliver power. Google does not own generating plants or power lines. Google wants to manage its own energy supplies and gain better access to renewable power. Google does not plan to sell its energy management service or speculate in energy markets. They have their hands full providing for powering their own servers.

Our guess is that Google intends to get on on the Smart Meter business, at least the software side. Google already offers an on-line tool to help consumers manage their energy use known as Google's PowerMeter. The company has partnered with utilities on this project. (WSJ, 2/18/10)

Monitoring Server Room Temperatures

Maintaining Server Room Temperatures

Stocks, Bonds, Mutual Funds, and CDs

How To Buy a Stock. Investors most commonly buy and trade stock through brokers. You can set up an account by depositing cash or stocks in a brokerage account. Firms like Charles Schwab and Citgroup's Smith Barney unit offer brokerage accounts that can be managed online or with a broker in person. If you prefer buying and selling stocks online, you can use sites like E-Trade or Ameritrade. Those are just two of the most well-known electronic brokerages, but many large firms have online options as well.

Bonds are a form of debt. Bonds are loans, or IOUs, but you serve as the bank. You loan your money to a company, a city, the government – and they promise to pay you back in full, with regular interest payments. A city may sell bonds to raise money to build a bridge, while the federal government issues bonds to finance its spiraling debts.

What Is A Mutual Fund. A mutual fund pools the assets of its investors and invests the money on behalf of those investors. The companies that issue these funds, such as Fidelity or Vanguard, manage the pool of money on the investors’ behalf. The underlying logic of mutual funds is that they provide diverse investments — in stocks, bonds and cash — without requiring investors to make separate purchases and trades. An individual would need more than $100,000 to build a similarly diversified portfolio of individual shares and bonds, but a mutual fund investor can send $1,000 to a fund company and find herself holding an ownership stake in a number of companies.

How To Buy A Mutual Fund. Picking the right mutual funds is a lot like selecting the right kinds of stocks to purchase. Among the similar strategic rules of thumb: watch the fees, diversify your holdings to mitigate your risk and don’t chase performance — think long-term. Let’s start with diversification. If your company has a 401(k) plan, you probably have a good number of funds to choose from. You don’t want to put all your eggs in one basket, so holding a diversified portfolio is important. A smart fund strategy mixes bond funds and stocks funds as well as funds that invest in domestic and overseas markets.

How To Invest In A Certificate of Deposit (CD). Certificates of deposit (CDs) make financial sense for people of all ages who want a low-risk investment to park cash they don’t plan to use immediately. If you won’t need your cash reserve the day after tomorrow or next week, you’ll likely want that money to earn a better rate of return than your checking account offers—without taking on too much risk. This is when a CD is useful.

(WSJ-Personal Finance How To Guides)

Obama Nuclear: He Finally Listened To The Center

Senator Obama weathered tritium leaks at a nuclear power plant in his home state when he was a member of the Senate Environment and Public Works Committee. Presidential candidate Obama danced on both sides of the nuclear issue by saying that it should 'be on the table' while opposing Yucca Mountain. Now, after clearly taking note of the Center's drumbeat for a decade on this issue, President Obama stepped up to the plate and proposed increasing loan guarantees for nuclear power plants by $36 billion. The Center was a Special Guest of the White House at the signing of the Energy Policy Act of 2005 that established the $18.5 billion in current loan guarantees for nuclear power plants. Thank you for validating our work Mr. President. And expanding upon it.It is interesting that President Obama opposed the 'Republican' cap and trade program by voting against President Bush's Clear Skies Initiative. We tried to get then Senator Obama to sponsor an Environmental Justice Allowance Reserve (EJAR) amendment to the legislation, but he ultimately sponsored another type of bill with Hillary Clinton. Now Republicans are opposing President Obama's cap and trade program. Aren't Washington politics wonderful? Now President Obama has become not only the greenest president in history, he has also become the first real nuclear president. President Obama is the Green Nuclear President (Greenuclear).

Of course, Mr. President, you will be vilified by the environmental community while not receiving appropriate support from Republicans on climate change and energy legislation. You will be vilified by both sides for not being pure. Just know that you have done the right thing (even if we want you to drink the Yucca Mountain Kool-Aid). Just keep reading our blog and websites. Clearly you are listening to the only environmental organization that publicly and aggressively supports nuclear power.

President Obama on the One Year Anniversary of ARRA

Remarks by the President on the One-Year Anniversary of the Signing of the Recovery Act

South Court Auditorium, Eisenhower Executive Office Building

FULL STATEMENT

Energy Excerpt:

Because of the Recovery Act, we have finally jumpstarted the clean energy industry in America, and made possible 200,000 jobs in the clean energy and construction sectors.

Just take one example: Consider the investment that we've made in the kind of batteries used in hybrid and electric cars. You've heard about these, right? Before the Recovery Act was signed, 98 percent of the world's advanced battery production was done in Asian countries. The United States did less than 2 percent of this advanced battery manufacturing that's going to be the key to these high-mileage, low-emission cars.

Then we invested in new research and battery technologies, and supported the construction of 20 battery factories that will employ tens of thousands of Americans -– batteries that can make enough -- factories that can make enough batteries each year to power half a million plug-in hybrid vehicles. So as a result, next year -- next year, two years after the Recovery Act -- the United States will have the capacity to produce nearly 20 percent of the world's advanced batteries -- from less than 2 percent to 20 percent. And we’ll be able to make 40 percent of these advanced batteries by 2015 -- an entire new industry because of the Recovery Act.

This kind of progress is happening throughout our clean energy sector. Yesterday I announced loan guarantees to break ground on America's first new nuclear power plant in nearly three decades -– a plant that will create thousands of construction jobs and 800 permanent jobs in years to come. There's the manufacturer in Philadelphia who makes energy-efficient windows. He used to be skeptical about the Recovery Act until he had to add two more shifts just to keep up with the new business it's created.

EPA Launches New 'Transparency' Website For Rulemaking

EPA Increases Transparency of Proposed Regulations

The U.S. Environmental Protection Agency (EPA) is launching a new Web site giving the public additional opportunity to participate in the agency’s rulemaking process, demonstrating President Obama’s commitment to more transparent and open government. The online Rulemaking Gateway serves as a portal to EPA’s priority rules, providing citizens with earlier and more concise information about agency regulations. It also allows users to search for EPA rules that relate to specific interests, including impacts on small business; children’s health; environmental justice; and state, local and tribal government.

Rulemaking Gateway provides information as soon as work begins and provides updates on a monthly basis as new information becomes available. Time-sensitive information, such as notice of public meetings, is updated on a daily basis.

Rulemaking Gateway complements Regulations.gov, the federal government’s main portal for tracking rules from all federal agencies, by providing brief overviews of specific EPA rules and additional ways to search rules based on the phases they are in (e.g., pre-proposal, proposal), the topics they relate to (e.g., air, water), and the impacts they might have (e.g., impacts on small businesses or environmental justice). The new Web site offers a distilled “snapshot” of a rule, with just enough information for a citizen to determine his or her interest in the rule. The individual then can use Rulemaking Gateway links to Regulations.gov and to other EPA sources where comprehensive information is available.

In addition, EPA has established a Rulemaking Gateway discussion forum to allow the public to suggest enhancements to the site. The forum will be open through July 16, 2010, after which EPA plans to make enhancements based on ideas received.

More information on Rulemaking Gateway and the discussion forum

More information on Regulations.gov Web site

Final Rule On Air Toxics from Existing Stationary Diesel Engines

Emissions Reductions Will Save Lives and Protect Health

The U.S. Environmental Protection Agency (EPA) is setting the first standards that will reduce emissions of formaldehyde, benzene, acrolein and other toxic air pollutants from certain stationary diesel engines. These pollutants are known or suspected to cause cancer or other serious health problems and environmental damage. Controlling emissions from these engines will save lives and protect our communities from serious health problems, including heart attacks, asthma and other respiratory illnesses.

The emission limits apply to existing diesel engines meeting certain criteria for age, size, and use. EPA estimates that more than 900,000 of the engines generate electricity and power equipment at industrial, agricultural and other facilities. The engines also are used in emergencies to produce electricity and pump water for flood and fire control. Emergency engines used at most residences, hospitals and other institutional facilities, and commercial facilities such as shopping centers are not covered by this rule. To meet the emissions requirements, owners and operators of the largest of the engines will need to install emissions controls, such as catalysts, to engine exhaust systems. Emergency engines covered by this rule need to comply with operating requirements that will limit emissions.

EPA estimates that the rule will reduce annual air toxics emissions by 1,000 tons, particle pollution by 2,800 tons, carbon monoxide emissions by 14,000 tons, and organic compound emissions by 27,000 tons when fully implemented in 2013. EPA will issue final emissions standards for similar existing stationary engines that burn gasoline, natural gas and landfill gas, known as spark ignition engines, by August 10, 2010. More information (EPA)

Cement Industry Wrong On Price & Jobs Re Emissions

The U.S. cement industry is opposing tighter EPA regulations on mercury, soot, hydrochloric acid and hydrocarbons such as benzene. They are also suing EPA over pending carbon dioxide (CO2) emission regulations. A Portland Cement Association (PCA) report, written by a Southern Methodist University researcher, states that the rules could lead to job losses at American plants and the importation of cement from countries with less-stringent regulations. Portland cement is made by cooking limestone in giant kilns, and it's one of the key ingredients in concrete, mortar and other building materials. The Center disagrees about the job losses and believes the industry could leverage offsets to increase jobs.

PCA believes the rules could cost the industry $4 billion and raise the price of cement from $100 per ton to $121 per ton. The Center believes the cement industry could leverage offsets to increase its profitability.

According to EPA, some plants already meet the new standards and that compliance will cost $222 million to $624 million. EPA also claims the rules could prevent 620 to 1,600 premature deaths from lung disease and other illnesses and save $4 billion to $11 billion in healthcare costs. The rules are expected to be finalized by June. (Star Telegram, 2/17/10)

Southern Company Lobbying Did Not Influence President

Some opponents of nuclear power are grumbling that Southern Company's lobbying campaign led to the company receiving $8.3 billion in Department of Energy (DOE) loan guarantees to assist with the construction of two new nuclear reactors at Plant Vogtle near Waynesboro, Georgia. Nothing could be farther from the truth. President Obama is trying to get a cap and trade climate bill passed and the loan guarantees were already in the pipeline from the 2005 Energy Policy Act (The Center attended the signing in Albuquerque, N.M. as a Special Guest of the White House).

Evidently the nuclear issue is partisan with Republicans being pronuclear and Democrats being antinuclear. Another stupid Congressional distinction. Regardless, the loan guarantees were already scheduled and nuclear companies are scrambling to arrange financing for new nuclear power plants. The FY 2011 $36 billion increase in loan guarantees recommended by President Obama is a reach across the aisle to get support for climate legislation. And it is also good energy policy.

According to the Center for Public Integrity, Southern Company hired 16 outside firms to supplement their stable of in-house lobbyists and spent $16.5 million on Capitol Hill lobbying in 2009. According to reports filed with the Senate Office of Public Records in 2009, Southern had 63 lobbyists on its payroll, eight of them were in-house lobbyists and the rest came from 16 outside lobbying firms. One of the lobbyists was Heather Podesta, the sister-in-law of John Podesta (so what!). Southern representatives claim that they have only seven full-time lobbyists in its Washington office. (Charleston [W.V.] Daily Mail, 2/17/10, AP)

Industry Groups Sue over 'Endangerment Finding'

Opponents of EPA's 'Endangerment Finding' have filed lawsuits asking the U.S. Circuit Court of Appeals to review EPA's determination that greenhouse gases endanger human health and welfare. EPA issued finding that carbon dioxide and other greenhouse gases endanger public health last December. The finding was issued in response to a 2007 U.S. Supreme Court ruling and allows EPA to regulate the heat-trapping emissions under the Clean Air Act.

Those filing petitions included:

Ohio Coal Association
Utility Air Regulatory Group
Portland Cement Association
State of Texas
Competitive Enterprise Institute
National Association of Manufacturers (NAM)
American Petroleum Institute
Corn Refiners Association
National Association of Home Builders
National Oilseed Processors Association
National Petrochemical and Refiners Association
Western States Petroleum Association

Industry groups and states argue that forthcoming EPA regulations will have devastating economic consequences. EPA and other environmentalists, including the Center, would prefer for Congress to pass legislation that would delineate how greenhouse gases should be regulated.

Ten other petitions have been filed by:

Alabama
Virginia
American Iron and Steel Institute
Gerdau Ameristeel Corporation
American Farm Bureau Federation
National Mining Association
Peabody Energy Company
U.S. Chamber of Commerce
13 House lawmakers
Southeastern Legal Foundation
Coalition for Responsible Regulation

A coalition of 16 states and New York City has also asked to intervene on behalf of EPA in the endangerment case. (NYT, 2/17/10-Greenwire)

Yvo de Boer Resigns as Chief of IPCC

The U.N. climate chief Yvo de Boer, right, has resigned to join a consultancy group as an adviser, the U.N. climate secretariat. De Boer will step down on July 1 to join KPMG.

The resignation comes after an email scandal called 'Climategate' that put IPCC science in doubt, disappointing results at the Copenhagen summit and a botched estimate on the disappearance of Himalayan glaciers. Now, climate change legislation that appeared to be a sure thing for passage through Congress just a year ago appears to be dead for the foreseeable future. The IPCC 'Climategate' situation has also put the EPA Endangerment Finding and Tailoring Rule in jeopardy. Business groups have already made formal challenges to the pending EPA ruling.

NRG Energy and CPS Energy Settle Dispute Over Nuke

NRG Energy settled the dispute with CPS Energy (Antonio municipal utility) by reducing the utility's stake in the south Texas nuclear power project to 7.6%, from 50%, with the joint venture (NRG, Toshiba, Nuclear Innovation North America) retaining 92.4%. CPS sued, alleging that NRG misled the utility on project costs and saying it might withdraw.

The agreement ends a $32 billion lawsuit that CPS filed in December to reduce its participation in the project, and allows development of the plant to proceed. The companies have filed for federal loan guarantees. CPS estimates its remaining stake in the project is worth about $1 billion. The agreement requires CPS to help with the project's loan guarantee application, but excuses the utility from spending more money on the project. The utility has said it has spent about $370 million on the project's engineering and permitting.

The project, estimated to cost between $12 billion, would add two new nuclear power units to an existing nuclear reactor, expanding the facility by 2,700 megawatts, enough power for more than 2 million homes. (WSJ, 2/17/10)

Babcock & Wilcox Tout Smaller Nuclear Reactor

Babcock & Wilcox is touting a new type of smaller nuclear reactor that is one tenth the cost of a big plant.

The Tennessee Valley Authority, First Energy Corp. and Oglethorpe Power Corporation have signed an agreement Babcock & Wilcom to get the new reactor approved for commercial use in the U.S. from the Nuclear Regulatory Commission (NRC).

The smaller Babcox & Wilcox reactor can generate only 125 to 140 megawatts of power, about a tenth as much as a big one.

It is estimated that large reactors will cost about $10 billion. Small reactors are expected to cost about $5,000 per kilowatt of capacity, or $750 million or so for one of Babcock & Wilcox's units. (WSJ, 2/18/10)

CEG Commits $90 Million To Commercial Solar Systems

Constellation Energy Group announced it has committed $90 million to support the development of commercial solar energy systems.

In order to maximize the value of government renewable energy incentives, the $90 million set-aside will be available for customer-sited solar installations of 500 kilowatts or larger that begin construction before mid-year 2010.

Approximately $18 million of the funding has already been committed to projects soon to begin development in Maryland and New Jersey. Under the arrangement, Constellation will finance, design, construct and own a solar installation on a customer’s site, and sell the power generated to the customer, thereby relieving the client of upfront costs. (The Daily Record, 2/16/10)

EPA Announces New Website to Help State and Local Governments Tackle Climate Change

EPA just launched a new Web site to help state and local governments understand, plan, and implement strategies to reduce greenhouse gas emissions within their jurisdictions. The State and Local Climate and Energy Program Web site, brings together EPA resources to serve as a one-stop shop for government officials seeking information on climate change and clean energy.

The site provides:

Resources on energy efficiency, renewable energy, waste management, workforce development, health, adaptation, and more.

“How to” information for developing a climate change action plan or greenhouse gas inventory along with maps showing which states and localities have them in place.

Guidance on evaluating policy and program options and measuring results.

A calendar of upcoming climate change and clean energy webcasts and conferences.

Podcasts and video recordings of State and Local Climate and Energy Program webcasts.

Featured Resource: Assessing the Multiple Benefits of Clean Energy: A Resource for States

This resource will help state energy, environmental, and economic policy makers identify and quantify the many benefits of clean energy. This groundbreaking document is the first to organize and present a comprehensive review of the multiple benefits of clean energy, together with an analytical framework that states can use to assess those benefits during the development and implementation of clean energy policies and programs.

Access the resource

To be notified of upcoming Webcasts, hear about state and local climate and energy news, and learn of enhancements to the Web site, join the State and Local Climate and Energy Listserv

Bill Gates Touts TerraPower-Fast Neutron Nuclear Reactors

Update [3/22/10 WSJ]: TerraPower, a unit of Intellectual Venturas, an energy start up partially funded by Gates, is in discussions with Toshiba Corporation to develop a new type of small-scale nuclear reactor. TerraPower's reactor technology {see description below} would run for decades on depleted uranium without refueling or removing spent fuel from the device.

Intellectual Ventures, based in Bellevue, Washington, is run by a former Microsoft Corporation executive Nathan Myhrvold.
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Bill Gates is supporting a new type of nuclear power plant called TerraPower (Traveling Wave) reactors. TerraPower reactors are fast neutron reactors that breed their own fuel. The concept has been around for awhile and the technology is quite a few years away from being commercially available. The Center is a long-time supporter of nuclear power and we support fast neutron breeder reactor technology. According to Gates:

“Because you burn 99 percent of the waste, it is kind of like a candle. Nuclear waste fed into a TerraPower reactor would potentially burn for decades before being exhausted. Today we are always refueling the reactor so lots of controls and lots of things that can go wrong. That is not good. With this, you have a piece of fuel, think of it like a log, that burns for 60 years and it is done.“The skeptics will accept it because it is cheaper."

Gates should be careful about "too cheap to meter" rhetoric." The nuclear industry got burned with this statement decades ago. Yet he is on the right track here. He should come back down to Earth though and support current nuclear power plant technology. It is fine for our current needs and the fuel can be reprocessed. (Grist, )

At TED2010, Bill Gates unveiled his vision for the world's energy future, describing the need to avoid planetary catastrophe and explaining why he's backing a dramatically different type of nuclear reactor (Traveling Wave Terra Power liquid metal fast breeder reactor). His goal? Zero carbon emissions globally by 2050.

Fast Neutron Reactors:

Wiki

World Nuclear Association

Public Citizen

States Launching Federal "Cash For Appliances" Programs

The federal government has distributed $300 million in stimulus funding via the "Cash for Appliances," which was allocated from the American Recovery and Reinvestment Act of 2009. The Cash for Appliances Program (CAP) encourages consumers to trade in their old appliances and upgrade to new energy efficiency Energy Star rated ones.

New York and Georgia launched their "Appliance Swap Out" programs on President's Day weekend. Oregon and Michigan are already running their CAP with most other states coming onboard in March and April. The rebates range from about $50 to $250 per appliance. Qualifying appliances include: boilers, central air conditioners, clothes washers, dishwashers, freezers, furnaces (oil and gas), heat pumps (air source and geothermal), refrigerators, room air conditioners and water heaters (read your state's requirements before you shop).

To apply, you'll generally need to print forms off the Web and mail them in with qualifying proof of purchase. Keep the original receipt for the new appliance, this may be requested. As for the old appliance, if you recycle old appliances properly (i.e., not just dumping in the landfill), you can get additional rebates in some states.

You can take the CAP rebate and the federal energy efficiency tax credit, in effect through this year, which gives a 30% credit up to $1,500 for the purchase of certain heating, cooling and ventilation appliances, among other things. Your local utility or municipality also might have its own rebate program, which you may or may not be able to tap on top of the federal program, depending on where you live. Check the Database of State Incentives for Renewables and Efficiency (dsireusa.org) for more on local perks. (WSJ, 2/12/10)

Corbin-Mark & Hansen Just Plain Wrong on Cap & Trade

Cecil Corbin-Mark, left, of West Harlem Environmental Action (WEACT) and James Hansen, right, head of the NASA Goddard Institute for Space Studies, are wrong about cap and trade. And we cannot distinguish between their opposition to cap and trade and their promotion of fee and dividend. They admit that fee and dividend will raise the price of electricity just as they decry cap and trade for supposedly doing the same thing. We believe that a properly structured cap and trade program can create jobs and cost-effectively reduce greenhouse gas emissions into the atmosphere.

Corbin-Mark and Hansen recently addressed their concerns at events in New York. They describe fee-and-dividend as an approach that will reduce carbon emissions. We think they both underestimate the benefits of cap and trade while promoting the fee and dividend as a reasonable alternative. In addition to Corbin-Mark and Hansen, Charles Komanoff of the Carbon Tax Centre, and Father Paul Mayer of the Climate Crisis Coalition, also spoke about the inequity of a cap-and-trade system at the New York events. Their recommendation is similar to the Cantwell-Collins Cap and Dividend legislation currently pending in the Senate. Fee and Dividend and Cap and Dividend are just too bureaucratic and both limit the innovation prospects of the private sector to cost-effectively implement a dynamic greenhouse gas emissions reduction program.

A carbon trading system depends on allocating a market price to carbon emissions, and either hands out, auctions or sells carbon permits to industry sectors. The Center supports the free allocation of carbon allowances in order to keep the cost down. A fee-and-dividend system imposes a fee on the initial sale of a fossil fuel which is then redistributed to the public; the rising cost of carbon-intensive products would, it is hoped, encourage families to keep their carbon footprints low. Again, the cap and trade deniers admit that fee and dividend would use price as a conservation tool. The Center opposes using price as a conservation tool as a matter of organization policy.

Schwarzenegger Is Right About Nutty Environmentalism

Governor Arnold Schwarzenegger states that he has:

"had enough of the mindless interference with development that characterizes the actions of many environmentalists...in a state where one out of eight workers is unemployed."

Governor Schwarzenegger, left, is asking the legislature for more authority to fast-track projects after they have undergone an environmental impact study. The Center agrees with him. America cannot build anything anymore, even solar and wind projects, because some extremist environmentalists are misusing environmental laws to, well, stop everything. The Center was the only environmental group to support the National Harbor Project just outside of Washington, D.C. and this is a perfect example of extremists misusing their power to try to stop the project. Now it is a gem on the Potomac River and everybody acknowledges its benefit to the area. We were also the only environmental group to support the Woodrow Wilson Bridge replacement. Now it is a gem across the Potomac River.

The California governor is frustrated about environmental obstacles that some environmentalists are using to block construction of alternative energy farms in the Mojave Desert. The same thing has happened with the Cape Wind offshore wind project off the coast of Massachusetts. Environmentalists and other opponents have virtually delayed that project to death. Schwarzenegger continues:

"So the environmentalists . . . are confused because they want to have renewable energy but then when it comes to the permitting process, creating that renewable energy and building the solar plants, they are then in the way."

We have been on some of the most intense protests ever with our colleagues in the environmental movement. We have also taken the other side when we have concluded that a project is beneficial and environmentally benign. We are also probably one of the only environmental groups with criteria for supporting or opposing projects. (WSJ, 2/12/10)

How will PayGo Affect Climate Change Legislation?

On Friday, February 12, President Obama signed into law H.J. Res. 45, the Statutory Pay-As-You-Go Act of 2010 (PayGo), which increases the public debt limit from $12.394 trillion to $14.294 trillion; and establishes a statutory Pay-As-You-Go procedure requiring that new non-emergency legislation affecting tax revenue or mandatory spending not increase the Federal deficit.

How will PayGo affect climate change and other environmental legislation?

The Kerry/Boxer legislattion S. 1733 would reduce budget deficits.

The CBO and the Joint Committee on Taxation estimate that over the 2010 to 1019 period enacting this legislation would:

• Increase federal revenues by about $854 billion; and
• Increase direct spending by about $833 billion

In total, those changes would reduce budget deficits (or increase future surpluses) by about $21 billion over the 2010-2019 period. (All estimated effects would be on-budget.) In years after 2019, direct spending would be less than the net revenues attributable to the legislation in each of the 10-year periods following 2019. Therefore, CBO estimates that enacting S. 1733 would not increase the deficit in any of the four 10-year periods following 2019.

BASIS OF ESTIMATE

CBO estimates that implementing this legislation would result in additional revenues, net of income and payroll tax offsets, of $254 billion over the 2010-2014 period and $854 billion over the 2010-2019 period. We estimate that direct spending would increase by $232 billion and $833 billion over the same periods, respectively. Those changes in revenues and direct spending would mainly stem from the process of auctioning and freely distributing allowances under the cap-and-trade programs established under this legislation.

The Waxman/Markey legislation H.R. 2454 would reduce budget deficits.

CBO and the Joint Committee on Taxation (JCT) estimate that over the 2010-2019 period enacting this legislation would:

• Increase federal revenues by about $846 billion; and
• Increase direct spending by about $821 billion.

In total, those changes would reduce budget deficits (or increase future surpluses) by
about $24 billion over the 2010-2019 period. In addition, assuming appropriation of the necessary amounts, CBO estimates that implementing H.R. 2454 would increase discretionary spending by about $50 billion over the 2010-2019 period. Most of that funding would stem from spending auction proceeds from various funds established under this legislation.

BASIS OF ESTIMATE

CBO estimates that implementing this legislation would result in additional revenues, net of income and payroll tax offsets, of $253.2 billion over the 2010-2014 period and $845.6 billion over the 2010-2019 period. We estimate that direct spending would increase by $241.3 billion and $821.2 billion over the same periods, respectively. Those changes in revenues and direct spending would mainly stem from the process of auctioning and freely distributing allowances under the cap-and-trade programs established under this legislation.

The Jobs For Mainstreet Act, H.R., 2847 would add to the deficit.

According to CBO, H.R. 2847, including $75 billion in offsets from TARP, would have the net effect of increasing the federal deficit by $64.8 billion over ten years.

H.J. Res. 45: SEC. 11. EXEMPT PROGRAMS AND ACTIVITIES.

Administration of Territories, Northern Mariana Islands Covenant grants
‘Black Lung Disability Trust Fund Refinancing
Bonneville Power Administration Fund
Continuing Fund, Southeastern Power Administration
Continuing Fund, Southwestern Power Administration
Emergency Fund, Western Area Power Administration
Hazardous Waste Management, Conservation Reserve Program
Payment to Radiation Exposure Compensation Trust Fund
National Oceanic and Atmospheric Administration retirement
Biomass Energy Development
Geothermal resources development fund
Natural Resource Damage Assessment Fund
Contributions to U.S. Park Police annuity benefits
Energy Employees Occupational Illness Compensation Fund

(The White House, CBO Cost Estimate for S. 1733, CBO Estimate for H.R. 2454, GOP.gov for CBO Estimate of H.R. 2847,)

Obama Gives Loan Guarantees For Nuclear Power Plants

FULL STATEMENT: at IBEW Local 26, Lanham, Maryland

President Barack Obama announced $8.3 billion in loan guarantees to help Atlanta-based Southern Company build two new reactors at an existing Vogtle plant in Burke County, Georgia. The Southern Company is the first company selected to receive the Department of Energy loan guarantees to build nuclear reactors. He made the announcement at an International Brotherhood of Electrical Workers training center in Lanham, Maryland.

Loan guarantees for other sites are expected to be announced in the coming months. The Southern Company has applied to the Nuclear Regulatory Commission for a construction and operating license for the plant, one of 13 such applications the agency is considering. The Southern Company has begun site preparation in Burke, but cannot begin construction without NRC approval. It costs about $90 million dollars to get the license.

President Obama called for building new nuclear power plants in his January 27 State of the Union speech, and followed that by proposing to triple loan guarantees for new nuclear plants from the current $18.5 billion to $54.5 billion (an addition of $36 billion). The $54.5 bilion is enough to help build six or seven new nuclear plants, which can cost $8 billion to $10 billion each.

The loan guarantees were authorized by the 2005 Energy Policy Act. The Center attended the signing of the EPA of 2005 as a Special Guest of the White House. The Energy Department is negotiating with other projects. The Scana Corporation and Santee Cooper are proposing to build a nuclear plant in Jenkinsville, S.C., and UniStar is planning a reactor in Maryland at the site of the current Calvert Cliffs reactors.

Traditionally antinuclear environmental groups will now condemn President Obama when he has been the biggest friend to traditional alternative energy technologies in the history of the United States. The Center supports nuclear power and we salute President Obama for his bold vision for America's energy future. (Financial Times, Forbes/AP)

First Energy Corp Proposes Acquisition of Allegheny Energy

First Energy Corporation has agreed to acquire Allegheny Energy Inc. for $4.7 billion in a stock deal that would create a company with 10 utilities and six million customers stretching across seven states. The combined company would have $16 billion in annual revenue and $1.4 billion in expected net income from utilities in the traditionally regulated states of Virginia and West Virginia and deregulated states of Ohio, Maryland, New Jersey, New York and Pennsylvania.

It would have 24,000 megawatts of power generation, dominated by coal but including nuclear, gas and a small amount of renewable energy. The merger will have to be approved by state state regulators. The key states for the companies will be Maryland, Pennsylvania and West Virginia. Allegheny also will need approval in Virginia. (WSJ, 2/11/10)