United States Environmental Protection Agency
Solid Waste and Emergency Response
(5306W)
EPA530-R-97-017
August 1997
Waste Reduction Activities of Selected WasteWise Partners
Electric Power Industry

FOREWORD

WasteWise is a voluntary partnership program aimed at
reducing municipal solid waste. Partners set waste
prevention and recycling goals, as well as goals for buying
or manufacturing products with recycled content. Each year,
partners report on their progress in meeting waste reduction
goals to the U.S. Environmental Protection Agency (EPA).

In 1996, WasteWise began a study of solid waste reduction
practices within the electric utility industry, through a
combination of site visits, interviews, and literature
reviews. This report highlights some of the most effective
and innovative solid waste reduction activities implemented
by the industry. While EPA considers coal ash to be an
industrial waste as opposed to municipal solid waste, this
report also documents ways utility partners are reducing
coal ash. EPA included this waste stream in the report
because partners have undertaken innovative waste reduction
efforts in this area and because coal ash constitutes such a
large portion of the utility waste stream.

During the study, WasteWise worked with the following
partner utilities: Baltimore Gas & Electric, Commonwealth
Edison, Florida Power Corporation, Florida Power & Light,
Illinois Power, Northeast Utilities, Northern States Power,
Pacific Gas & Electric, Pennsylvania Power & Light, and
Public Service Electric & Gas. 

This report was compiled with the assistance of the Edison
Electric Institute, a WasteWise endorser. Edison Electric
Institute helped select the utilities profiled and reviewed
the content of this report prior to publication.

TABLE OF CONTENTS

Chapter 1 Making Waste Reduction a Success 
Chapter 2 Waste Reduction Opportunities: Generating Stations
Chapter 3 Waste Reduction Opportunities: Distribution and
          Transmission
Chapter 4 Waste Reduction Opportunities: Investment Recovery
          and Warehouse Operations 
Chapter 5 Additional Opportunities for Waste Reduction
Conclusion
Appendix: WasteWise Utility Partner Profiles

CHAPTER 1
MAKING WASTE REDUCTION A SUCCESS

============================================================

The U.S. electric power industry is undergoing a series of
changes fueled, in part, by the move toward deregulation.
Traditionally, utilities have been heavily regulated, but
impending deregulation is prompting these utilities to
closely examine their operations and seek opportunities to
improve efficiency. Utilities are merging, consolidating
vendors, reducing their labor and compliance costs, and
seeking new profit centers to remain competitive.Solid waste
management is an area many utilities are examining. Waste
reduction initiatives are helping utilities to reduce
purchasing, transportation, and disposal costs, as well as
to conserve resources. Many utilities have been recycling
scrap metal and other materials for years; however, the more
ambitious programs covered in this report emphasize waste
prevention activities such as reconditioning and reuse of
materials. In fact, waste prevention programs are now
integral to many utilities' strategic business plans.

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Solid waste management is an area many utilities are
examining. Waste reduction initiatives are helping utilities
to reduce purchasing, transportation, and disposal costs, as
well as to conserve resources. Many utilities have been
recycling scrap metal and other materials for years;
however, the more ambitious programs covered in this report
emphasize waste prevention activities such as reconditioning
and reuse of materials. In fact, waste prevention programs
are now integral to many utilities' strategic business
plans.

Waste prevention eliminating waste before it is created is
the hallmark of the WasteWise program. Partner
organizations, including utilities, assess their current
operations to identify areas where waste can be prevented,
establish waste prevention goals, and then take action to
achieve those goals.

Based on the experiences of WasteWise partners, including
utilities, manufacturers, and service providers, three key
elements are necessary for a successful solid waste
reduction program:

CHAPTER 1
MAKING WASTE REDUCTION A SUCCESS

     Obtaining corporate support. Solid waste and recycling
     program managers all agree: the biggest savings and
     efficiencies are achieved when management asks all
     employees across all operations to commit to waste
     reduction.

     Involving company employees in all phases of the waste
     reduction campaign. Several partners achieve a high
     level of employee participation by offering innovative
     incentives and rewards for employees who contribute to
     the success of company waste reduction efforts.

     Tracking and measuring waste reduction progress. Many
     partners discovered that tracking progress helps to
     justify their program to senior management and
     stockholders and enhances productivity among utility
     employees.

Solid Waste Management and Utilities

Before developing or expanding a waste reduction program,
solid waste and recycling managers should first assess their
operations to identify unique opportunities for waste
prevention. While some waste prevention techniques are
applicable to all utilities, opportunities are often unique
to specific utilities, operations, or geographic regions. To
uncover some of these unique opportunities, solid waste and
recycling managers should examine the following questions:

     How are waste management costs currently being
     allocated? What corporate, division, or facility
     incentives are in place to encourage waste reduction?
     Utilities that allocate waste disposal costs to
     individual divisions or facilities, as opposed to
     general overhead or environmental affairs accounts,
     create an incentive for employees of that division to
     reduce waste.

     What level of involvement can be offered to the service
     area? Can a cost-effective centralized collection
     system for recyclables be established? If recycling is
     part of the corporate philosophy, having a mechanism in
     place to frequently drop off and pick up materials from
     power plants, substations, and other field offices
     helps determine the profitability of recycling and
     reuse programs. Centralized collection systems are
     often more successful in smaller service areas.

     Do local markets exist for selling reusable materials
     or recyclables? Strong local markets are often rich
     with customers interested in either purchasing, or
     hauling away at no cost, materials a utility previously
     paid to dispose of.

Report Overview

This report details the numerous waste prevention,
recycling, and buying recycled programs many utilities have
already implemented. Also highlighted are factors
influencing the decision-making process within the utility
industry, approaches utility solid waste and recycling
managers are taking to overcome barriers and obstacles, and
efforts being undertaken to find waste reduction solutions
for several difficult solid waste streams. The success
stories featured here can help other utilities develop
programs to reduce their solid waste costs through waste
prevention, reuse and refurbishment activities, recycling
efforts, and by donating materials to outside groups and
organizations.

The remainder of this report is organized according to the
functional areas in which waste is generated at utilities.
These areas include generation, distribution and
transmission, warehouse, fleet, and administrative offices.

CHAPTER 2
WASTE REDUCTION OPPORTUNITIES:
GENERATING STATIONS

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The type and quantity of waste generated by an electric
utility depends on station configuration, size, and age, as
well as the type of fuel used to generate power. For coal-fired power plants, the largest and most costly solid waste
stream to manage is ash. Each year, nearly 90 million tons
of bottom and fly ash, flue gas desulfurization sludge, and
boiler slag are generated at coal-fired plants. To
understand the magnitude of this waste stream, picture
filling the Houston Astrodome nearly 369 times!

============================================================

With an average management cost of $12 per ton 1 , handling
ash waste is an expensive operation. Yearly ash management
costs can run as high as $20 million, especially for large
utilities such as Pennsylvania Power and Light (PP&L), which
generates more than 1 million tons of ash per year. [1995
industry average. Source: Public Service Electric & Gas.]

One method for managing ash is to mix it with water to
create a resulting slurry that is then pumped to a de-watering impoundment. This management method is very
expensive, particularly when new impoundments are required.
Taking into account the costs for labor, land, and
regulatory requirements, a new de-watering impoundment can
cost upwards of several million dollars. In addition, this
wet management method limits the reuse potential of the ash.
One way utilities are addressing the costs of wet management
is by switching to dry ash handling systems, which use air
to vacuum the ash and blow it into storage silos. By
converting to dry ash handling systems, PP&L avoided
building new wet ash disposal units, for a net savings of
$14 million. PP&L anticipates additional savings through the
sale of  the ash since dry ash is a more marketable
commodity and can be readily sold as an alternative to
Portland cement, flowable fill, and blasting grit.

Ash reuse programs do not need to generate large amounts of
revenue to be both environmentally beneficial and
financially sound corporate investments. Avoiding ash
management costs is incentive enough to establish a reuse
program. Utilities that choose to aggressively seek markets
and opportunities for reusing their ash avoid significant
ash management costs and can often generate revenue from the
sale of ash.

Coal Ash Reuse Opportunities

There are numerous uses for coal fly ash, including as an
alternative to Portland cement, as blasting grit, or as
structural and flowable fill. Most of the utility companies
interviewed in this report market fly ash as an alternative
to Portland cement in the production of concrete. Another
common practice implemented by utility companies, such as
Northeast Utilities and Illinois Power (IP), is to market
bottom ash for the production of asphalt pavement, roofing,
and roofing shingles. Other common uses for ash include
roadway antiskid material (road deicer), drainage materials,
and sand for onsite septic systems. In 1995, Northeast
Utilities reused thousands of tons of fly ash, generating
$579,000 in avoided disposal and purchasing costs. Florida
Power Corporation (FPC) facilitates the reuse of nearly all
of its fly ash for the construction of concrete products. In
1995, FPC reduced 430,000 tons of fly ash waste by putting
it in these products.

Several companies use or sell bottom ash as blasting grit
for cleaning metal and other items. Northeast Utilities
saves $2.6 million annually in avoided disposal costs by
bagging bottom ash on site and selling it to end-users as a
blasting grit for paint and rust removal. In 1994, one
Baltimore Gas & Electric (BGE) power plant marketed 21,000
tons of bottom ash for reuse as blasting grit.

BGE found a way to reuse its fly and bottom ash for
structural fill. In 1995, the utility sold and reused more
than 3 million tons of ash in a variety of highway, office
and industrial park, and utility projects. With numerous
road and bridge construction projects currently underway in
the state of Maryland, BGE is expanding its marketing effort
to find uses for ash in road embankments.

BGE also uses ash as a component in flowable fill. By
combining ash with other elements, the company creates a
controlled low-strength material. In addition to using the
fill for nonstructural applications, such as backfilling
around gas lines, BGE sells it as a replacement for
compacted soil. This material has been used in projects to
fill underground storage tanks and missile silos.

PP&L generated more than 1 million tons of coal ash in
1995 enough to cover a football field to a depth of 400
feet. As a disposal alternative, PP&L mixes hydrated lime
with its fly ash to create a new chemically stable
alternative to soil-based fill. The resulting product,
Stabil-Fill, initially was used for onsite construction
during renovation and expansion to build a coal pile liner
and to raise storage areas and roads to prevent stormwater
flooding. PP&L estimates that one of its facilities saved
$700,000 in avoided purchasing costs by using Stabil-Fill
for construction purposes rather than purchasing material
from an outside source. Stabil-Fill is also marketed outside
the company and has been used to backfill coal mines, in the
construction of airport runways and roads, in industrial
sites, and as a base for ready-mix concrete.

New markets for ash reuse are constantly being developed.
Ash use is being evaluated for a number of products, such as
sports equipment, insulation, automobile bodies, marine
craft bodies, paints, coatings, and fire and heat protection
devices. Ash use also shows promise in mine reclamation, as
a soil amendment, and in the manufacture of tires and
wallboard.

Factors That Impact Ash Reuse Efforts

Utilities considering creating or expanding an ash reuse
program should take into account the following factors:

     How much ash is generated? The goal of ash reuse
     programs is to avoid disposal costs; however, it is
     usually not cost-effective to transport and manage the
     third-party costs associated with handling small
     amounts of ash. Utilities generating modest amounts of
     ash should consider onsite reuse opportunities or other
     ways to break even. Public Service Electric & Gas
     (PSE&G), for example, generates a relatively small
     amount of coal ash 60,000 tons annually. The utility
     breaks even on its ash reuse program by working with
     several contractors to find external markets for its
     ash.

     What type of coal is being burned? The more homogeneous
     the coal, the higher quality of ash produced. High-quality ash is often required for many reuse
     applications. Ash quality, however, is a secondary
     concern when compared to the economics of purchasing
     coal and complying with air quality regulations. The
     ash reuse market also presents numerous opportunities
     for ash created from the burning of nonhomogeneous
     coal.

     What marketing resources are available? Significant
     effort may be required to determine acceptable uses for
     ash and to locate potential users. Marketing firms can
     often help utilities market ash and locate customers.
     For example, Commonwealth Edison (ComEd) attributes its
     ash reuse success to an arrangement that provides
     vendors with incentives to find applications for
     ComEd's coal ash. These outside marketers found reuse
     opportunities for 90 percent of ComEd's coal
     ash 780,000 tons in 1995  saving more than $8 million
     in avoided landfill disposal costs.

     What state regulatory constraints exist with respect to
     ash reuse? Some states have restrictions on ash reuse.
     Illinois, for example, required utilities to obtain a
     solid waste determination prior to starting an ash
     reuse project. Given the time required for the state to
     make this determination, IP would often lose
     opportunities to market its ash. The utility worked
     with the state legislature, and in July 1995, Illinois
     passed a law to enable utilities to market ash as a
     revenue-generating commodity. This law reduced the need
     for Illinois utilities to construct new onsite disposal
     facilities.

The economics of coal ash reuse are largely dependent on
local or regional factors including production rates,
processing and handling costs, availability of markets,
transportation costs, price and availability of competing
materials, and seasonal adjustments. [American Coal Ash
Association, "Coal Ash: Local Materials for Local
Development.]

CHAPTER 3
WASTE REDUCTION OPPORTUNITIES: DISTRIBUTION AND TRANSMISSION

============================================================

Significant and varied opportunities exist for utilities to
reduce solid waste in their distribution and transmission
processes, particularly with respect to utility poles,
porcelain brushings and insulators, street lamp units,
transformers, protective equipment, and rags. These
opportunities can increase if a utility develops an
effective materials collection system.

============================================================

Reusing Utility Poles

The utilities participating in this report indicated that
disposing of an increasingly large number of used utility
poles motivated them to find cost-effective disposal
alternatives.

The most common type of utility pole is made of wood and has
an average useful life of between 25 and 30 years. To
prevent underground rotting, these poles are often treated
with creosote, pentachlorophenol, or other wood
preservatives. Some states have disposal restrictions on
treated poles, such as prohibiting their incineration. As
always, companies should always follow all applicable
federal, state, and local regulations for managing these
materials.

When properly managed, these poles present a variety of
reuse opportunities, such as in landscaping, for
constructing gates and barriers, as fencing, in the
construction of playground equipment, and for hiking trails.
Some utilities encourage line workers to give away used
utility poles near takedown sites to avoid transportation
and disposal costs. For example, utilities with rural
service areas often give farmers the poles to use for
fencing.

To encourage the reuse of wood poles and at the same time to
limit a utility's potential liability with respect to poles'
reuse, many utilities distribute waiver forms and disclosure
information. PP&L developed a "Beneficial Use of Treated
Wood" form to track the number of poles given away by line
workers. This one-page form, which discussed proper uses for
the poles, also acted as a receipt and release to guard
against liability. As part of its employee incentive award
program, which rewarded employees for achieving operational,
safety, and environmental goals, PP&L provided bonuses to
line workers for each pole donated or reused. In 1994, PP&L
saved $400,000 in avoided disposal costs by finding new uses
for its wood poles.

In addition to finding reuse opportunities for wood poles,
ComEd is searching for ways to extend the life of its poles.
ComEd replaces between 18,000 and 20,000 wood poles each
year. Many of these poles are taken down due to public
service improvements, such as road widening, rather than
deterioration. Although these poles still have considerable
life remaining, they have lost some of the preservative at
the ground line that would protect them from deterioration.
In the past, these poles were disposed of and replaced with
new poles. To help remedy the problem of lost preservative,
ComEd is placing sodium-fluoride impregnated bandages around
the bases of removed poles. This bandage helps reestablish
the protective barrier around the pole and extend its life.
ComEd is currently using the "pole bandage" on approximately
3 percent of its removed poles, leading to an annual savings
of nearly $92,000.

Wood Pole Alternatives

In certain climates and geographical locations, wood poles
have limitations. For this reason, many utilities are
testing or expanding the use of poles made of more resistant
materials, such as fiberglass and concrete.

Pacific Gas & Electric (PG&E) discovered that many of its
wood poles lasted only 6 months in areas heavily populated
with woodpeckers. To find an alternative, PG&E experimented
with fiberglass poles. Fiberglass poles are guaranteed by
the manufacturer to last for 80 years. PG&E expects each
fiberglass pole used to replace 160 wood poles (2 poles per
year over 80 years) if the current woodpecker damage rate
remains unchanged. To date, PG&E has installed approximately
100 fiber-glass poles, conserving 16,000 wood poles. Even at
a cost of $900 per fiberglass pole, over twice the cost of a
$400 wood pole, PG&E estimates it will save more than $6
million in avoided wood pole purchasing costs over the next
80 years.  

In Florida, wood poles are often damaged by hurricanes. FPC
and Florida Power & Light (FP&L) both have begun to replace
their wood poles with more hurricane-resistant concrete
poles. Just like wood poles, however, concrete poles become
a waste management challenge when their useful life is over. 
FPC took advantage of a local opportunity to donate its used
concrete poles and other concrete debris to Pinellas
County's artificial reef program, one of the largest in the
country. Since the program began, more than 240 tons of
retired poles have been used to create a habitat for many
species of fish that now call these artificial reefs in the
Gulf of Mexico their home.

Cost-Effective Porcelain Reuse 

Porcelain bushings and insulators are often used on utility
poles to insulate electric currents. As with the poles
themselves, there are numerous reuse opportunities for these
porcelain items. When utility poles are taken down,
utilities can grind the bushings and insulators for use in
road aggregate, ice melt, and outdoor tiling. Since 1993,
Northern States Power has recovered nearly 400 tons of
porcelain for these purposes. The utility also donates some
of its insulators to a local artist who uses them to create
sculptures.

Several utilities, however, find it labor intensive to
process and grind the porcelain in order to make it
economically viable in the marketplace. BGE, which recovered
nearly 270 tons of porcelain in 1995, is sending its
insulators and bushings to an outside vendor for processing.
The vendor employs handicapped individuals to strip any
metal remaining on the insulators and bushings (selling it
for scrap) and then grinds the porcelain for aggregate. This
program not only helps BGE avoid porcelain disposal cost,
but also provides BGE with a small percentage of profits
made by the outside vendor.

Porcelain processing costs can be avoided altogether by
reusing intact bushings and insulators. For example, PG&E
tries to reuse its insulators. In addition, the utility
lists unusable insulators with a state materials exchange.
This way, the utility avoids both disposal costs and
porcelain processing costs and, hopefully, finds someone who
is interested in the material.

Profit in Luminary (Street Light) Remanufacture 

Utilities normally do not view luminaries (street light
fixtures) as a disposal problem because of the scrap value
of the metal contained in these fixtures. Several utilities,
however, are beginning to repair or remanufacture these
luminaries in order to extend their useful life. While the
scrap metal value for luminaries generates a small profit,
remanufacturing these products is often more cost-effective,
particularly in avoided purchasing costs.

Several utilities found that the most cost-effective means
for remanufacturing these lighting fixtures is to contract
with outside groups to clean, test, and replace bulbs, photo
cells, globes, and ballasts where feasible. FPC, for
example, contracted with a local nonprofit organization for
luminaries remanufacturing services. Approximately 5,000
fixtures were collected for remanufacturing in 1996. FPC
estimated saving at least $200,000 through this practice, or
between $40 and $100 per unit, depending on the number of
parts requiring replacement.

IP also uses an outside company to remanufacture its
luminaries. In 1995, IP shipped 2,500 units to be
remanufactured. Once the necessary refurbishments were made,
IP purchased those units that could be remanufactured back
from this company. The remaining units went to a scrap
recycler.

Before FP&L remanufactures its luminaries, the utility
examines the units to see if the lamps (light bulbs) and
photo cells are still under warranty. FP&L discovered that a
significant number of failed luminaries have parts still
under warranty. The utility began to seek manufacturer
credits for the defective parts, generating almost $200,000
in 1996 alone.

FP&L also takes an aggressive approach to investment
recovery with respect to lamps. The utility tests all lamps
returned by line crews. If the lamps still have some useful
life, they are repackaged and sold to developing countries
at a reduced price. Lamp resale has generated over $26,000
in income for FP&L while avoiding expensive disposal costs.

Transformers 

Rather than scrap damaged transformers, many utilities
rebuild them on site to extend their useful life. While
recycling scrap metal from transformers offers a source of
income, rebuilding them provides more impressive savings in
the area of avoided purchasing costs. Transformers returned
by line crews are assessed to determine their feasibility
for repair or remanufacture. Utilities may replace mineral
oils, cardboard insulation, metal coils, or metal housing
panels. If the transformer is still in good condition, the
company can repaint and reuse it. The magnitude of
transformer remanufacturing and recycling by PG&E warranted
a dedicated facility for this activity. In 1996, PG&E
processed nearly 30,000 transformers. Of these, more than
8,000 were remanufactured and placed back in service. Nearly
20,000 were recycled yielding 4,400 tons of materials worth
nearly $500,000. Avoided disposal costs totalled $44
million.

Onsite transformer remanufacturing often requires a major
start-up investment. In addition, older transformers may
still contain polychlorinated biphenyls, which present
significant handling and disposal issues. Because of these
obstacles, many utilities send transformers to offsite
facilities for remanufacturing.

IP uses a contractor to routinely collect transformers from
all of its 16 service areas. In 1995, IP remanufactured 800
transformers for a projected savings of 40 percent, or
$200,000, over the cost of purchasing new transformers. IP
can rebuild transformers up to six times, until they are no
longer usable, at which point the contractor sells the metal
for scrap.

Reuse Opportunities Abound 

The utilities participating in this study found that many
waste streams can be eliminated if they carefully evaluate
the sources of their waste and look for ways to reuse
materials.

For example, some utilities have investigated new uses for
minor items, like rubber gloves, rubber blankets, and rags.
The utilities addressing these seemingly small waste stream
challenges have come up with several innovative ways to
reduce the disposal costs associated with these materials.

Rubber gloves and blankets, used to protect workers from
electric currents, become useless if compromised by even a
pin-sized hole. These materials, however, are still useful
to many outside organizations. FPC discovered organizations
that can make use of these materials. The utility donates
used rubber gloves to Mote Marine Laboratory, the Florida
Aquarium, and the Suncoast Seabird Sanctuary for use in
handling fish and birds. FPC's worn rubber blankets found a
home at the Wildlife Rescue Rehabilitation Center, where
they now serve as lounging mats for Bengal tigers.

Cloth, once thought of as cheap disposable items for
cleaning gas meters, can pile up quickly for large
utilities  as can their disposal costs. Several utilities
now are purchasing durable rags that can be laundered and
reused several times prior to disposal. BGE found a local
company to launder its rags. This practice saved one BGE
facility over 50 percent on new rag purchases in 1994. FPC
washes and reuses shop rags on site, which enabled the
utility to cut its rag consumption in half over a period of
3 years.

Some Additional Ideas to Help Increase Waste Reduction
Opportunities 

     Thoroughly explore all potential onsite and offsite
     reuse opportunities. All utilities should investigate
     nonprofit organizations or local businesses in their
     area that may be able to reuse or recycle wood,
     porcelain, or other materials. Sometimes simply
     publicizing the availability of a material for reuse or
     recycling will generate a long list of individuals and
     groups who are not only interested in the material but
     will come and haul it away.

     Consider partnering with other organizations or
     donating materials to nonprofits. For small waste
     streams or where preparing material for recycling is
     labor intensive, consider partnering with another
     organization to reduce costs or donating the material
     to a nonprofit organization.

CHAPTER 4 
WASTE REDUCTION OPPORTUNITIES: INVESTMENT RECOVERY AND
WAREHOUSE OPERATIONS   

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At most utilities, several operational groups often share
the responsibility for waste reduction. For example,
materials collected through an office recycling program,
such as paper, corrugated, and glass bottles, may fall under
the responsibility of an environmental division. The
environmental division arranges for the collection of these
materials, tracks the volume of material collected, and
calculates any associated revenue or cost savings
attributable to this recycling. Many utilities also
frequently dedicate staff to "investment recovery"
activities. These individuals identify revenue-generating
options for readily marketable retired, obsolete, or surplus
equipment and material.

============================================================

While each utility may choose to concentrate its efforts in
different markets, the most common materials being marketed
by investment recovery groups include scrap metals,
electrical hardware, computers, office furniture, and fleet
vehicles. Utility partners have also identified innovative
opportunities to reduce waste in their warehouse operations.

Scrap Metal Recycling and Reuse 

Scrap metal, particularly used aluminum, copper and lead
cable, ferrous steel, and old appliances, is routinely
collected and recycled by most utilities. Scrap metal sales
can be quite profitable, especially for large utilities like
PG&E, which in 1995 recycled almost 24 million pounds of
scrap metal from electrical conductors, transformers, and
other equipment.

FP&L, after analyzing the amount and associated value of the
metal it scrapped, began exploring ways to increase the
value of the utility's metal recovery operations. FP&L
purchased equipment to clean and polish 11 metal and
established more efficient metal sorting processes. A piece
of pole hardware that would traditionally have been scrapped
at a value of $7, for example, is now being cleaned and put
back in service for a purchase cost savings of $60 per unit.

Options for Reducing Wood Waste 

Old or broken wood pallets and reels often represent a
significant part of a utility's solid waste stream. In an
effort to reduce the disposal costs associated with wood
waste, utilities are either trying to find ways to extend
the life of their pallets or looking for new uses for this
wood waste.

Many utilities refurbish their pallets on site or with the
help of an outside vendor. BGE, for example, currently uses
a vendor to recondition its pallets, allowing the utility to
cut new pallet purchases by approximately 50 percent a year.

PP&L also saves money from pallet repair and reuse. PP&L
marks pallets that are not damaged or only slightly damaged
to facilitate their reuse. To encourage reuse, PP&L also
published a list of pallet refurbishers and mulching
facilities and distributed this list to its service centers.
In addition, PP&L has successfully worked with its vendors
to encourage the use of durable pallets. Employees are
encouraged to take excess pallets home and construct home
compost bins. Through these programs, PP&L reduced wood
purchases by 193,000 pounds in 1995 alone.

BGE and Northeast Utilities have additional uses for pallets
that cannot be reconditioned. The wood is shredded either on
site or off site by a vendor and turned into wood chips.
Both companies use these wood chips for energy recovery and
landscaping mulch.

At FPC and PG&E, unusable pallets are picked up by local
furniture makers for conversion into chairs, tables, and
lounges. There is a growing trend among utilities to
standardize pallet size, encouraging greater reuse. In
addition, several utilities are exploring or already
purchasing reusable plastic pallets for certain uses.

Refurbishing and rebuilding wood cable reels offer
additional opportunities for reducing wood waste. Some
refurbishing vendors come directly to a utility's facility
and disassemble the reels on site. FP&L has refurbished
nearly 4,500 reels using this method. BGE uses a contractor
that removes the reels at no charge. This contractor then
refurbishes the reels and sells them back to cable
manufacturers. This activity helped BGE divert 750,000
pounds of wood reels from its landfill waste stream in 1995.

Seeking further solutions to reduce wood waste, PG&E is
investigating the use of plastic reels that are more durable
and longer lasting than their wood counterparts.

"Just in Time" Inventory Systems 

Some utilities are moving to a "just in time" inventory
system in order to control losses. Many utilities store
large equipment, such as generators, transformers, meters,
and piping, in outside supply yards until it is needed.
Often, this equipment rusts, is damaged, or deteriorates
before it can be used. Using "just in time" inventory, some
utilities are storing less equipment on site and ordering
replacements only when current inventory is used. In some
cases, items that can be obtained quickly (within 24 hours)
from vendors are not kept in inventory at all. FP&L has
taken "just in time" inventory one step further. The utility
has entered into agreements with some of its vendors to
allow them to store equipment in FP&L's supply yards. The
vendors are responsible for the upkeep of the equipment, and
FP&L takes ownership only when the equipment is needed.

Centralized Collection Systems Improve Efficiency for Some
Utilities 

Utilities with small service areas can improve the
efficiency of their investment recovery operations by
developing centralized collection systems for salvaged
materials. FP&L, for example, developed a central
reclamation and salvage program to manage the materials
collected from the utility's service centers. Materials are
collected daily and sent to the centralized recovery
facility next to FP&L's supply warehouse. Materials are then
sorted; those that can be refurbished, such as pole line
hardware, are cleaned and redistributed to service centers.
Leftover paint is consolidated and used to paint warehouses
and storage facilities. Recyclable materials, such as scrap
metal and plastic conduits, are allowed to accumulate at the
recovery facility until enough materials have been collected
to sell.

Several factors contribute to the success of FP&L's
centralized investment recovery system: 

     Service area size and demography. Utilities like PG&E,
     with numerous service centers (1,600) and large service
     areas (75,000 square miles), may find that the high
     transportation costs involved in supporting a
     centralized collection system make it unprofitable to
     consolidate their investment recovery operations.
     FP&L's relatively small service area, 65 service
     centers spanning 27,650 square miles, enables the
     utility to keep transportation costs down.

     Property. FP&L has enough property surrounding its
     supply warehouse to operate a centralized recovery
     facility large enough to collect, process, and store
     substantial amounts of recovered materials. Having the
     recovery facility next to its supply warehouse allows
     FP&L to use its service center delivery fleet to
     backhaul recyclables to the recovery facility each day
     after delivering new supplies. This method saves FP&L
     money since the utility incurs no additional costs to
     transport materials from the recovery facility to the
     supply warehouse for distribution.

One additional factor that can facilitate a successful
centralized collection program is the purchase of recycling
equipment such as bailers and grinders. Companies using a
payback period longer than one year to guide capital
purchases often can make such purchases and reap the
benefits over the long term.

Factors That Impact Investment Recovery and Warehouse Waste
Reduction 

Utilities may want to consider the following issues when
considering investment recovery and warehouse waste
reduction programs: 

     Will an investment recovery program make the best use
     of available staff time and resources? Some utilities
     do not invest a great deal of staff time or capital
     resources in recovery activities. These utilities
     believe their primary focus should be to produce and
     distribute electric power, not create inhouse recycling
     and refurbishment businesses. On the other hand, some
     utilities ask their environmental departments to
     develop and maintain ways to sell utility "waste"
     materials. Utilities interested in aggressively
     pursuing investment recovery activities should first
     make sure they have adequate staff and equipment
     resources to dedicate to this activity. A successful
     investment-recovery program requires staff to manage
     investment recovery activities, prepare the materials
     for reuse and recycling, and transport the materials to
     facilities for processing and final distribution. A
     successful program may also require purchasing
     equipment to bale, grind, polish, shred, or crush
     recovered material.

     Is adequate space available to store and process
     recovered materials? Many utilities have limited
     warehouse and yard storage space. For these utilities,
     even collecting a few pallets for repair can be a
     problem. Utilities lacking adequate space to store
     waste for reuse or recycling may want to consider
     partnering with vendors, other businesses in their
     service territory, or even other utilities. These other
     organizations may be willing to transport and store
     materials for a share of the proceeds. These utilities
     may also want to explore other avenues for waste
     reduction, such as requesting that vendors use and
     collect durable transport packaging, pallets, and
     reels.

CHAPTER 5 
ADDITIONAL OPPORTUNITIES FOR WASTE REDUCTION  

============================================================

In addition to the waste reduction opportunities associated
with power generation, distribution, transmission, and
storage, many utilities are discovering ways to reduce waste
in their fleet maintenance operations and administrative
offices. Investigating new computer technologies and
innovative practices highlighted in this chapter can help
your company conserve materials such as antifreeze, tires,
oil, and paper.

============================================================

FLEET MAINTENANCE 

Recycling Fleet Products 

A number of utilities achieve significant cost savings by
recycling and reusing various fleet products, such as
antifreeze. IP, for example, reclaimed nearly 30 55-gallon
drums of antifreeze used in its maintenance vehicles in
1995. The reclaimed antifreeze was then reused in heat
exchangers, saving the utility more than $12,000 in
antifreeze disposal and purchasing costs.

Several utilities are also recycling large quantities of
lead-acid batteries. In 1995 alone, FP&L shipped 186,000
pounds of batteries for recycling.

Retreading can extend the usable life of a tire several
times, at a savings of between one-third and one-half the
cost of a new tire. Some utilities are exploring the use of
retread tires for their fleets, and others recycle their
damaged tires. BGE collected more than 85 tons of tires for
retreading in 1995, saving several million dollars in
avoided disposal and purchasing costs.

Changing Fleet Maintenance Practices 

Some utilities have found that by simply changing some of
their traditional fleet maintenance practices, they are able
to reduce their waste disposal and purchasing costs as well.
Most utilities, for example, change the oil in their
maintenance and service vehicles at prescribed vehicle
mileage levels. Northeast Utilities followed this practice
but recently began to test the oil quality in its vehicles
prior to changing it. The utility discovered that, in most
vehicles, the oil did not require changing every 3,000 miles
but rather somewhere between 5,000 and 6,000 miles. By
waiting until this additional mileage has accrued, Northeast
Utilities essentially doubles the mileage between servicing.
In 1995, Northeast Utilities conserved 1,000 gallons of oil
by making this change, saving $54,000 in purchasing and
disposal costs. The utility also located a vendor that
rerefines Northeast Utilities' used oil and sells it back to
the utility for reuse.

ADMINISTRATIVE OFFICES 

Eliminating Paper Waste 

Many utilities are working diligently to reduce their office
paper use. For example, BGE's use of electronic mail,
double-sided copying, and electronic filing reduced paper
use to approximately 0.5 pounds per employee per day in
1995, down from 1.5 pounds per employee per day in 1991. In
addition, most utilities have been very proactive with
respect to recycling mixed paper, corrugated, and aluminum
in their administrative offices. PP&L recycled 1,800,000
pounds of high-grade, mixed office paper, corrugated,
magazines, and newspaper in 1995. In 1994, PG&E reduced
60,000 pounds of corrugated by asking one of its suppliers
to reuse corrugated boxes up to three times.

Northeast Utilities developed a program to eliminate
unwanted bulk mail, which is a significant component of the
company's office waste. By instituting an employee education
campaign and providing employees with cards to send to
vendors requesting that their names be removed from mailing
lists, Northeast Utilities reduced third-class (bulk) mail
by 39,000 pounds and advertising by 3,000 pounds in 1994
alone.

Several utilities found an additional way to reduce paper
usage by moving to electronic purchasing and billing
systems. The Southern Company, for example, electronically
obtains price quotes from vendors, saving the utility
$120,000 per year in avoided administrative costs. This
paperless system shortens the purchasing process and helps
The Southern Company conserve over 600 pounds of paper per
year. PSE&G reduced paper consumption by establishing an
electronic data interchange system to receive supplier
invoices electronically. Other WasteWise partners including
Illinois Power, Detroit Edison, and The Southern Company are
also exploring ways to bill their customers electronically.

Vendor Consolidation 

In an effort to streamline operations, improve efficiency,
reduce waste, and lower operating costs, several utilities
are consolidating the number of vendors with whom they work.
PSE&G, for example, was accustomed to using over 85
suppliers. Working with this number of vendors increased the
incidence of waste caused from expired products, duplicate
items, and oversupply. The utility now uses only six
suppliers.

Factors That Impact Waste Reduction 

Utilities may want to consider the following issues when
considering fleet maintenance and administrative office
waste reduction programs: 

     Have all means of recycling and reuse for fleet
     maintenance supplies been explored? Remember, oil and
     antifreeze can be recycled, and tires can be retreaded.
     Recycled, rather than virgin, fleet materials can be
     purchased from vendors and suppliers. Look for other
     innovative ways to help extend the life of fleet
     materials while not jeopardizing fleet safety.

     Look for ways to reduce or eliminate paper waste
     streams, even if they are currently being recycled.
     Even if utilities have an active office paper recycling
     program, they can still find ways to reduce the amount
     of paper that ends up in their recycling bins. They can
     promote the use of electronic mail and electronic data
     interchange systems within the utility. They can also
     institute a double-sided copying policy and help
     employees reduce the amount of junk mail they receive
     and ultimately throw away.

CONCLUSION

Many factors impact the success of solid waste reduction
campaigns, many of which have little or nothing to do with a
utility's investment in these programs. Utility solid waste
and recycling coordinators often have little control over
factors: 

     Size and geographic location of the utility's service
     area.

     Existence of local recycling and reuse markets.

     Organizational structure of the utility.

     Amount of staffing support dedicated to waste reduction
     efforts.

     Capital investment resources available to assist with
     solid waste reduction.

     Warehouse and storage space constraints.

Though all the utilities studied in this report took
different approaches to reducing their solid waste, many
faced some of the same constraints listed above. In spite of
the constraints, all had at least one success story to tell.
The most successful solid waste programs shared several
components. They:   

     Used a comprehensive approach to solid waste reduction.
     While beginning with, and expending the most resources
     on, managing their largest or most profitable waste
     streams, successful utilities looked for ways to reduce
     waste in all of their function areas: production,
     distribution, transmission, warehouse, and
     administrative offices.

     Included both large and small waste streams. No waste
     stream is too small. Waste reduction opportunities
     exist for transformers, as well as gloves, spray cans,
     or junk mail.

     Made waste reduction profitable. Sometimes this means
     donating materials and/or finding outside groups to
     partner with to reduce costs.

     Included employees in waste reduction campaigns. Many
     of the utilities developed "green teams" comprised of
     employees from different function areas. These
     employees not only help identify areas where waste
     reduction is needed, but they also help implement the
     programs. Utilities engaged employees through signage,
     contests, special events, newsletters, personalized
     recycling boxes, or promotional items like reusable
     coffee mugs. They also provided training and/or tools
     to assist employees with their waste reduction efforts.
     Recognizing employees for their waste reduction
     achievements and notifying them of campaign successes
     can help ensure that employees stay involved.

     Tracked and measured results. Not all of the utilities
     established sophisticated data collection systems to
     track waste reduction efforts, but all of them made a
     conscious effort to record reductions and to equate
     these reductions to either landfill cost savings or
     recycling and reuse income.

     Shared solid waste reduction success with management
     and shareholders. Solid waste and recycling
     achievements should always be a component of utility
     shareholder reports.

     Engaged top management support. Sometimes this support
     comes in the form of additional dollars to invest in
     staff or equipment to facilitate waste reduction. Most
     of the time, however, management support is expressed
     in the authorization to aggressively pursue ways to
     reduce utility solid waste and its associated disposal
     and purchasing costs.

     Consolidated or centralized supplies and recyclables
     where possible. The greatest efficiencies and
     reductions are achieved in those utilities where it is
     cost effective to centralize storage and collection
     activities.

     Looked first for in-house reuse opportunities before
     selling, donating, or landfilling material. Employees
     appreciate the offer of valuable materials that would
     otherwise be thrown away. Such give-away programs have
     the dual benefit of boosting employee morale in
     addition to waste reduction.

     Tried various approaches to make waste reduction
     profitable. Persistence helps make waste reduction
     successful even if initial efforts achieved limited
     success.

APPENDIX 

WasteWise UTILITY PARTNER PROFILES     

BALTIMORE GAS & ELECTRIC COMPANY (BG&E)

     Fuel source: BGE's fuel mix is 39 percent nuclear, 58
     percent fossil, and 3 percent hydro.

     Facilities:  BGE operates 10 electric power plants.

     Generating capacity: 5,938 megawatts installed.

     Service area: BGE's electrical service area covers
     2,300 square miles. Its natural gas lines cover 617
     square miles.

     Customers: BGE serves approximately one million
     residential, commercial, and industrial customers. It
     provides natural gas service to more than 500,000
     customers.

     Employees: Approximately 7,000.

     Environmental policy: To have a business environment
     where environmental issues are routinely considered in
     the strategic decision-making, business planning, and
     day-to-day operations of the company. To prevent
     pollution and reduce waste through integration of cost-effective programs into planning and daily operations.
     To have effective environmental performance measurement
     and feedback directed toward continuous improvement of
     environmental management systems and results. To have
     more effective two-way communications with BGE
     stakeholders regarding environmental management and
     performance.

Innovative Waste Reduction Activities

Education and Measurement

Employee Recognition.  BGE has a corporate commitment to
pollution prevention and waste reduction efforts. One of the
company's environmental pledges is to encourage employee
awareness. To support this pledge and recognize employees'
contributions to environmental efforts, BGE established two
award programs: an Employee Recognition Award Program (ERAP)
to reward employees for identifying cost saving efforts, and
a Results Incentive Awards (RIA) program. Both programs
incorporate environmental efforts into their screening
criteria. BGE also implemented a corporate pollution
prevention plan to increase employee awareness.

In 1995, for example, at the C.P. Crane power plant, the
Plant Labor Group received an RIA program goal to reduce
solid waste disposal costs from 1994 levels. By reducing
costs by 7-1/2 percent, or about $3,000, the Plant Labor
Group would earn an award equal to  percent of their
salary. The payout would double if the group reduced waste
disposal costs by 15 percent, or about $6,000. The facility
general supervisor created a spreadsheet to track the goal
and reported progress to the group monthly. The station
labor group reduced solid waste by 36 percent and saved the
station nearly $13,000 in disposal costs. The group achieved
this goal by waste reduction and recycling activities. The
incentive program brought results, since certain individuals
had responsibility and ownership of the goal.

Measurement. In an effort to better manage its environmental
programs, BGE began to measure its solid waste reduction
progress in 1994. Toward this end, BGE decided to use the
Electric Power Research Institute's Accounting Software
Application for Pollution Prevention (ASAPP) to better track
waste generation and management. BGE began using ASAPP as a
tool to help establish a centralized, systematic way to
collect and maintain waste reduction data. The waste
accounting software integrates waste management information
from plant and support personnel, manifests, shipping
papers, and invoices. As a result, BGE is able to identify
waste streams and management costs with the most room for
improvement.

Generating Stations and Distribution 

Coal ash recycling. BGE does not landfill any ash because
they are able to find reuse alternatives, such as using ash
as a replacement for ready-mix cement. BGE has used ash for
structural fill in highway projects and for the construction
of a light industrial park. BGE uses ash for flowable fill,
such as backfill around gas lines. BGE also sells slag for
sand blasting material.

Porcelain. BGE strips the metals from porcelain insulators,
reuses a portion of the metals in their operations, and uses
the porcelain for aggregate. By reusing metal in their
operations, BGE saves $2 million per year.

Concrete and soils. BGE recycles concrete from construction
and demolition operations, and concrete curbs from gas pipe
installations. A contractor turns the concrete into
aggregate for road bed construction purposes. Soils
excavated from gas pipeline expansion and repair projects
are screened and reused for backfill. BGE's Gas Engineering
saves approximately $400,000 annually from soil reuse.

For More Information, Contact: 
Greg Gunzelman, Environmental Scientist 
Air & Waste Management Unit 
Environmental Section 
Baltimore Gas & Electric Company 
7609 Energy Parkway, Suite 101 
Baltimore, MD 21226 410 787-5195 (Phone) 410 787-5199 (Fax)  

============================================================

FLORIDA POWER CORPORATION (FPC) 

     Fuel source: Coal, oil, nuclear, and natural gas.

     Facilities: FPC operates more than 50 facilities,
     business offices, and plants.

     Generating capacity: 7.3 million kilowatts.

     Service area: FPC's electrical service area covers more
     than 20,000 square miles.

     Customers: FPC serves more than 4 million customers in
     32 counties.

     Employees: Approximately 4,600.

     Environmental policy:  Florida Power believes that
     environmental responsibility goes beyond compliance
     with laws and regulations. The utility is committed to
     providing energy as efficiently as possible, while
     reducing waste and conserving resources.

Innovative Waste Reduction Activities

Education and Measurement

Community education efforts. FPC participates in a variety
of county and city-sponsored functions that feature
environmental education. On Earth Day, employee volunteers
educated school children and their families on the company's
environmental philosophy and best management practices.

Solid waste consulting. FPC has performed waste audits and
trained more than 50 retail customers and schools on the
company's paper recycling program. FPC also provides waste
disposal services for local governments and stresses the
importance of recycling to its vendors and contractors.

Generating Stations and Distribution 

Coal ash recycling. FPC facilitates the reuse of nearly all
of its fly ash into various concrete products. More than
400,000 tons of fly ash were reused in 1996.

Poles. FPC donates concrete poles to the Pinellas County
artificial reef program. Since the program began, more than
500 tons of concrete have found new life in the Gulf of
Mexico. The artificial reef program provides habitat for
many species of fish and vegetation.

Streetlight refurbishment. FPC began remanufacturing
luminaries in January 1996. The company contracted with a
local nonprofit organization to clean, test, and replace
bulbs, photo cells, globes, and light starters where
feasible. Approximately 5,000 luminaries were remanufactured
in 1996. With each remanufactured luminary used, the company
saves between $40 and $100 depending on the type replaced.

Donation of materials. FPC donates used rubber lineman
gloves to the Mote Marine Lab, the Florida Aquarium, and the
Suncoast Seabird Sanctuary. The company also donates used
rubber blankets to the Wildlife Rescue Rehabilitation Center
and used three-ring binders to underprivileged kids and
their teachers at Project Headstart.

Reuse of shop rags. FPC washes and reuses shop rags on site,
which cuts rag consumption in half over a 3-year period.

Investment Recovery and Recycling 

Wood Reuse Program. At FPC, broken pallets that are no
longer usable are picked up by local wood recyclers and
converted into new, reusable pallets. In addition, wood
reels are stripped of wire, dismantled, and reassembled for
sale as new reels. As a result, the company conserved
approximately 197,000 pounds in one year.

Steel recycling. FPC recycles over 2 million pounds of steel
annually.

Recycling used wire. FPC sends all of its used wire and
nonperforming transformers to a metal recovery facility
where a cable chopper and burner processes materials into
high grade marketable metals.

Fleet Maintenance 

Antifreeze reuse. Purchase of antifreeze has been reduced by
filtering contaminants from used antifreeze and returning it
back to service.

General Office 

Buying recycled products. FPC has implemented a closed-loop
buy-recycled policy. Office paper collected is recycled into
janitorial products and office paper purchased by the
company. Whenever possible, FPC purchases items made from
recycled materials and stresses the importance of take-back
programs with vendors.

Buying remanufactured products. FPC purchases toner
cartridges remanufactured from its used cartridges.

Paper recycling. FPC recycles nearly 1 million pounds of
paper annually. This saves the utility approximately $60,000
in avoided disposal costs each year and generates revenue
from the sale of paper and cardboard.

For More Information, Contact: 
Jennifer Waggoner 
Florida Power Corporation 
3201 34th Street 
P.O. Box 14042-H2G 
St. Petersburg, FL 33733 
813 866-5395 (Phone) 
813 866-4926 (Fax)   

============================================================

FLORIDA POWER & LIGHT (FP&L)

     Fuel source: FP&L's energy mix is 31 percent gas, 25
     percent nuclear, 19 percent oil, 18 percent purchased
     power, and 7 percent coal.

     Facilities: FP&L generates power at 34 major generating
     units and non-utility sources.

     Generating capacity: 18,608 megawatts.

     Service area: FP&L's service area covers 27,650 square
     miles.

     Customers: FP&L provides service to more than 3.5
     million customers.

     Employees: Approximately 11,000.

     Environmental policy: FP&L pledges to comply with the
     spirit and intent as well as the letter of
     environmental laws, regulations, and standards;
     incorporate environmental protection and stewardship as
     an integral part of the design, construction,
     operation, and maintenance of their facilities;
     encourage the wise use of energy to minimize the impact
     on the environment; communicate effectively on
     environmental issues; conduct periodic self-evaluations, report performance, and take appropriate
     actions.

Innovative Waste Reduction Activities

Education and Measurement

Incentive Programs. FP&L builds environmental goals and
incentives into employee performance evaluations.

Employee education. FP&L communicates recycling statistics
to employees via e-mail and other internal communication
media. The utility also posts recycling awareness signs in
its service centers.

Generating Stations and Distribution 

Remanufacture of luminaries. FP&L examines luminaries for
defective bulbs, photo cells, and loose wiring. If the bulbs
and photo cells are still under warranty, then the
manufacturer credits FP&L for the defective parts. If bulbs
still have some useful life, the company sells them through
an investment recovery program to developing countries at a
reduced price. Refurbished luminaries are put back into the
inventory system for reuse. With the luminary recovery
program, FP&L has generated $145,000 in revenues from
fixtures which failed under warranty and $26,000 through
items sold in the investment recovery program.

Transformers. FP&L evaluates and refurbishes transformers.
For those not salvageable, FP&L dismantles them and sells
the scrap metal. FP&L refurbishes more than 4,000
transformers annually.

Investment Recovery & Recycling 

Centralized collection for recyclables. FP&L developed a
centralized collection system for recyclables, netting more
than $7 million in revenues in 1995. Materials are collected
daily from FP&L's service centers and sent to a centralized
recovery facility for separation and storage. Materials that
can be refurbished, such as pole line hardware, fuses, and
porcelain insulators, are cleaned and redistributed to
service centers. Recyclables, such as scrap metals and
plastic conduits, are allowed to accumulate in the recovery
facility until there is enough of a product to sell.

Metal recycling. In 1995, FP&L collected over 10.5 million
pounds of reclaimed metals.

Refurbishing. FP&L refurbishes materials, such as pole line
hardware, fuses, and porcelain insulators. By refurbishing
pole line hardware, FP&L saved $218,492.

Wood reuse and recycling. FP&L returned nearly 4,500 reels
for refurbishment. In addition, FP&L collected over 5
million pounds of scrap wood in 1995. The company has a
chipper on site to turn the scrap wood into mulch.

Shrink wrap recycling. FP&L recycled 21,500 pounds of shrink
wrap in 1995. It collects and bales the shrink wrap.

Scrap wire processing. FP&L processed over 3.7 million
pounds of wire and cable in 1995. Aluminum and copper are
separated from the wire insulation and ferrous metals.

Aerosol cans. FP&L processed over 18,000 aerosol cans in
1995. It purchased a can crusher, and within 2 months the
avoided disposal costs paid off the investment.

Fleet Maintenance 

Lead acid battery recycling. In 1995, FP&L shipped 186,000
pounds of lead acid batteries for recycling.

General Office 

Working with suppliers.  FP&L is piloting "take-back" and
"just-in-time" inventory programs with its suppliers. FP&L
also received a National Leadership award from the U.S.
Conference of Mayors for collecting and recycling 982 tons
of office waste material.

For More Information, Contact: 
Scott Freeburn, Recycling Coordinator 
Florida Power & Light 
2455 Port West Boulevard 
Riviera Beach, FL 
33407 
561 845-4924 (Phone) 
561 845-3308 (Fax)   

============================================================

ILLINOIS POWER COMPANY (IP)

     Fuel source: Coal generates 81 percent of the
     electricity supplied by IP. Nuclear energy accounts for
     an additional 18 percent. The remaining fuel sources
     include natural gas and oil.

     Facilities: Illinois Power operates six generating
     facilities.

     Net generating capacity: 4,146 megawatts.

     Service area: IP supplies 16 separate service areas.

     Customers: IP supplies electricity to 550,000 customers
     and natural gas to 390,000 customers.

     Employees: Approximately 3,635.

     Environmental policy: IP's environmental policy states
     that all operations are to be in compliance with
     environmental regulations and laws. Operating within
     compliance is the responsibility of all employees.

Innovative Waste Reduction Activities

Education and Measurement

Employee education and recognition. IP developed an
environmental awards program to both increase corporate
environmental awareness and recognize individuals or teams
that contributed to the fulfillment of the company's
environmental goals. The company determines awards based on
the merit of the activities presented and does not limit the
number of awards given in any one year.

Generating Stations and Distribution 

Coal ash recycling. IP recycles ash at the Baldwin power
plant, its largest facility. A recycling company (Gran-Grit,
Inc.) processes the bottom ash on site. The company uses the
ash as filler in cement, roofing shingles, blasting grit,
and ice control on road surfaces. The company recycles
500,000 tons of coal ash annually. IP has not found a market
for ash generated at other sites. A key issue for the
company is avoiding the cost of building a new ash storage
pond.

Remanufacture of transformers, meters, and luminaries. IP
rebuilds transformers, meters, and luminaries to extend
their useful life. A contractor routinely visits all 16
service areas to rebuild transformers until they are no
longer usable. When it is no longer cost-effective to
rebuild the transformers, the contractor sells the metal for
scrap. This process saves money, since IP does not have to
purchase all new equipment. In addition, the company
rebuilds all meters on site. The company sends out
luminaries to be rebuilt and buys back "new" luminaries from
the same company. In 1995, IP shipped 258 containers of
street lamps for remanufacture.

Require suppliers to use reusable transport packaging. In
suppliers' contracts, the company requires that materials be
delivered in recyclable or returnable containers. For
example, boiler treatment chemicals are now delivered in
reusable aluminum tote bins instead of 55-gallon plastic
drums. The practice eliminated the use of 30 plastic drums
per year.

Composting organics caught in intake valves. Each winter,
small fish die off as a result of cold stress and flow into
the Clinton Power Station's intake screens. Rather than
discard the fish in a landfill, IP began composting trapped
organics with wood chips. The company composted 450,000
pounds of organic material in 1994.

Concrete and asphalt recycling. IP reuses or recycles
concrete and asphalt resulting from the installation and
replacement of new electric and gas lines. The company used
the recycled concrete to build a driveway at one station.
Whenever the company cannot use the materials internally, it
gives the material to other recyclers.

Investment Recovery and Recycling 

Centralized collection for recyclables. IP recently moved to
a centralized collection system for many recyclables. After
delivering supplies to service centers, the company's fleet
backhauls certain recyclables (such as aluminum, copper,
iron, and steel) to a centralized facility for separation
and storage. IP recycled a total of 1.23 million pounds of
nonferrous metals, generating $350,000 in 1995. Paper, wood,
and other materials are usually recycled on a local basis.

Fleet Maintenance 

Antifreeze use. The Wood River Power Plant recycled and
reused nearly 30 55-gallon drums of antifreeze from
maintenance vehicles for use in heat exchangers, saving more
than $12,000 in disposal and drum purchasing costs.

For More Information, Contact: 
Roger Cruse, Environmental Professional 
Illinois Power 
500 South 27th Street 
Decatur, IL 62525-1805 
217 424-7376 (Phone) 
217 362-7649 (Fax)   

============================================================

NORTHEAST UTILITIES SERVICE COMPANY (NU)

     Fuel source: Nuclear, hydropower, natural gas, and
     coal.

     Generating capacity: 7,800 megawatts.

     Service area: NU, serves three states, covering 11,000
     square miles stretching from the Long Island Sound to
     the Canadian border.

     Customers: NU companies serve more than 1.6 million
     customers.

     Employees: Approximately 10,000.

     Environmental policy: In conducting its business and
     operating its facilities, NU is committed to protecting
     the environment. Achievement of this objective requires
     that employees at all levels in the organization
     understand and comply with environmental regulations
     related to their areas of responsibility. This means
     strict adherence to both the letter and spirit of state
     and federal laws for the protection of the environment.

Innovative Waste Reduction Activities

Generating Stations and Distribution 

Fly ash and bottom ash recycling. NU sold 93 percent (27,500
tons) of its fly ash for reuse as concrete filler, saving
$579,000 in 1995. The bottom ash (sand blasting grit) is
bagged on site; then it is sold and used to clean paint and
rust off of antique furniture. In 1995, NU reused more than
58,000 tons of this material, saving $2.6 million in avoided
disposal costs.

Transformers. NU works with a company that takes apart the
transformers, cleans the parts, and remanufactures the
product. When the transformers reach the end of their useful
life, the scrap materials are recycled.

Poles. NU sold more than 6,000 feet of wood poles for
lumber. The buyer uses the poles to create beams and posts.
This action saved NU $5,000 in avoided disposal costs. NU is
exploring a joint effort with Southern New England Telephone
to increase reuse of wood poles.

Organics. NU is researching the use of fish weirs to help
fish safely bypass hydroelectric dams. The company hopes
that the project will dramatically increase the safe passage
of shad and salmon downstream around NU dams. If successful,
the project could be replicated at other utilities.

Investment Recovery and Warehouse 

Metal recycling. NU generated $500,000 by recycling 4
million pounds of metals in 1995.

Wood pallets. While some pallets are refurbished on a local
basis, many pallets are chipped for recycling. In 1995, NU
recycled 120,000 pounds of wood pallets saving more than
$2,000.

Cable reels. NU refurbished 240,000 pounds of cable reels in
1995, saving $12,000 in avoided disposal costs.

Fleet Maintenance 

Conditional maintenance program. NU routinely tests oil from
maintenance and service vehicles prior to changing it. The
company has found that, for most vehicles, the oil does not
require changing until 5,000 or 6,000 miles. This activity
has enabled the company to essentially double the mileage
between servicing. In 1995, the company conserved 1,000
gallons of oil through this practice and saved $54,000 in
purchasing and disposal costs. A single vendor recycles the
oil, and NU purchases back the oil from the same vendor.

General Office 

Unwanted mail reduction. NU developed an aggressive program
to combat unwanted bulk mail, estimated at 35 to 50 percent
of all mail received. The company supplies employees with
kits to remove their names from mailing lists and returns
bulk shipments if they are not wanted. In 1995, these
actions resulted in reductions of 42,000 pounds (a 50
percent reduction) and saved $2,000 in avoided disposal
costs.

Working with suppliers to reduce waste. NU is consolidating
the number of vendors they work with, thereby streamlining
operations and reducing waste.

Buy-recycled measurement. NU, in conjunction with its
supplier, developed a system to track recycled content
purchases. This system is available to all the suppliers'
customers.

Donation programs. NU donates office furniture and equipment
(such as computers), that are no longer needed, to nonprofit
groups or schools. In addition, participants indicated that
old furniture or equipment might be sold to employees and/or
the public. Unusable computers are sold to a scrap vendor,
who is able to resell some circuit boards.

For More Information, Contact: 
Rick Larsen
Senior Scientist, Environmental Programs 
P.O. Box 270 
Hartford, CT 06141-0270 
860 665-5326 (Phone) 
860 665-3777 (Fax) 
larsera@nu.com (Email)   

============================================================

PACIFIC GAS AND ELECTRIC (PG&E)

     Fuel source: Natural gas, hydro power, nuclear, and
     geothermal.

     Facilities: PG&E operates 1,500 facilities.

     Generating capacity: 102 billion kilowatt hours.

     Service area: PG&E's service area covers 75,000 square
     miles.

     Customers: Approximately 4,463,000.

     Employees: Approximately 22,000.

     Environmental policy: PG&E's environmental policy
     states that "PG&E is committed to a clean, healthy
     environment. We will provide our customers with safe,
     reliable, and responsive utility service in an
     environmentally sensitive and responsible manner. We
     believe that sound environmental policy contributes to
     our competitive strength and benefits our customers,
     shareholders, and employees by contributing to the
     overall well-being and economic health of the
     communities we serve."   

Innovative Waste Reduction Activities

Education and Measurement 

Life cycle cost-analysis. For 1997, PG&E is conducting a
facility-scale life cycle cost-analysis (LCCA) at a medium-
sized customer service center in Contra Costa County. The
assessment is examining all material inputs and solid waste
stream outputs with the goal of using LCCA techniques to
reduce waste disposal costs.

Solid waste consulting. PG&E works with some of its
customers on paper recycling and was also one of seven
founding members of the Recycled Paper Coalition, a
voluntary effort to reduce waste by purchasing recycled
content paper and encouraging corporate paper recycling.

Employee education. PG&E's Environmental Quality Statement
and other environmental materials are now included
throughout the company's core curriculum training. In 1995,
more than 3,500 employees attended these courses.

Environmental report. PG&E produced its 7th corporate
environmental report in 1996, which was distributed to the
Board of Directors, managers, employees, and external
groups.

Measurement. PG&E is working with its haulers to collect
baseline data on its solid waste streams. The company plans
to reduce solid waste generation by 10 percent in 1997 at 10
pilot facilities. PG&E is developing management systems to
track progress.

Generating Stations and Distribution 

Transformer remanufacture and recycling. PG&E built a
dedicated facility for its transformer remanufacture and
recycling program. In 1996, PG&E processed nearly 30,000
transformers. Of these, more than 8,000 were remanufactured
and placed back in service. Nearly 20,000 were recycled,
yielding 4,400 tons of metals worth nearly $500,000. The
avoided disposal costs were approximately $4.4 million.

Poles. PG&E experimented with fiberglass poles due to damage
caused by woodpeckers. While wood poles last only 6 months
due to woodpecker damage, fiberglass poles are guaranteed to
last for 80 years. PG&E expects that each fiberglass pole
used will replace 160 wood poles (2 poles per year over 80
years). To date, PG&E has installed approximately 100
fiberglass poles, potentially conserving 16,000 wood poles.
Given that wood poles cost $400 each and fiberglass poles
cost $900 each, PG&E could potentially save more than
$6,000,000 in avoided purchasing costs over 80 years. When
fiberglass poles meet the company's performance
requirements, PG&E will regularly use them wherever
woodpecker problems exist. Fiberglass poles are also two-thirds lighter than wood poles, making them particularly
valuable for manual installation in remote areas.
Reuse of insulators. PG&E attempts first to reuse insulators
in-house. Unusable insulators are then listed with CALMAX,
an area materials exchange.

Soils. PG&E processes and reuses 65 to 75 percent of its
trenching soil in a backfill recycling plant.

Investment Recovery and Warehouse 

Wood reuse and reduction. At PG&E, pallets that are no
longer usable are picked up by local furniture makers. In
addition, PG&E is investigating the use of plastic reels.
The plastic reels would be more durable and would last
longer than their wood counterparts, allowing them to be
reused more often.

Miscellaneous. PG&E's Investment Recovery Team salvaged and
recycled $4.1 million in materials in 1996. The volume
recycled increased 22 percent from 1995 for a total of
15,500 tons, while the dollar value increased 7.6 percent.
PG&E replaced 1,300 miles of power line, 18,000 electrical
transformers, 46,000 gas meters, 37,000 electric meters,
hundreds of miles of plastic natural gas distribution
piping, and thousands of computers.

Aerosol containers. A new handling process, emphasizing
sorting and returning usable materials and investigating
alternative point delivery systems, should reduce disposal
costs of the 40-ton waste stream by 25 percent, or $35,000
annually.

Dry-cell batteries. Increased use of rechargeable alkaline
batteries will reduce disposal costs for the half-million
battery waste stream by $40,000 annually.

Fleet Maintenance 

Recycling used motor oil. PG&E recycles its used motor oil,
rerefines it, and uses it in its fleet. This activity saves
the utility $20,000 and conserves 800,000 pounds of waste
annually. More than 4,700 barrels were reprocessed in 1996,
a 6 percent increase over 1995.

Antifreeze reuse. The 80 tons generated annually in the 80
maintenance garages will be recycled onsite and will reduce
the waste stream by 90 percent (72 ton reduction), resulting
in an annual savings of $30,000 to $40,000.

General Office 

Working with suppliers. PG&E has formulated supplier
evaluation criteria that include environmental factors among
those considered when selecting suppliers of products and
services. In addition, in 1994 the utility requested that
its largest supplier of envelopes begin reusing the shipping
cartons for billing envelopes an average of three times
before they are too worn for use. This action reduced the
amount of packaging each year by two-thirds, or 60,000
pounds.

Buying recycling products. PG&E uses recycled content paper
for bill inserts, employee newsletters, environmental
reports, billing envelopes, annual reports, proxy
statements, monthly bills, stationery, and business cards.
In 1995, the company purchased over 140,000 tons of recycled
content paper. More than 86 percent of all paper products
purchased by the utility contain at least 10 percent
postconsumer recycled fibers. In 1996, the company increased
dollars spent on the purchase of recycled office products by
5 percent.

For More Information, Contact: 
Peter Melhus, Director 
Corporate Environmental Quality 
Pacific Gas & Electric Company 
123 Mission Street, H21A 
P.O. Box 770000 
San Francisco, CA 94177 
415 973-5782 (Phone) 
415 973-5790 (Fax)   

============================================================

PENNSYLVANIA POWER AND LIGHT COMPANY (PP&L)

     Fuel source: Nearly two-thirds of electrical energy
     comes from burning coal.

     Facilities: PP&L operates five coal-fired plants with
     14 units, one nuclear plant with two units, two
     hydroelectric units, and one unit that has the capacity
     to burn either oil or natural gas.

     Generating capacity: 6,600 megawatts.

     Service area: PP&L provides electrical service
     throughout a 10,000 square mile area.

     Customers: PP&L supplies electricity to 1,200,000
     customers.

     Employees: Approximately 6,500.

     Environmental policy: One of PP&L's corporate
     objectives for 1996 is to achieve at least $1 million
     in savings through waste prevention activities. To help
     achieve this goal, PP&L launched a "Taking Care of the
     Future Today" campaign with the message that good
     corporate environmental performance comes from the
     actions and decisions made each day by employees.

Innovative Waste Reduction Activities

Education and Measurement 

Obtaining management support. Obtaining top management
support is a key to a successful waste reduction program.
PP&L's Corporate Environmental Policy Committee consists of
management representatives that review their company's
environmental direction and set policy. The goal is to
develop a cultural attitude for environmental responsibility
equivalent to that of safety, quality, and productivity.

Employee Incentive Award Program. PP&L's employee incentive
award program pays cash bonuses to all employees for
achievement of annual corporate goals, including an
environmental goal from 1993- 1995. The Environmental Goal,
established by the Solid Waste Team, consisted of a number
of waste prevention, reuse, and recycling targets. The
overall goal was to achieve a combined average of 100
percent or higher on each of the individual targets by year
end. The environmental goals for 1995 included reduce paper
use by 15 percent, reduce trash disposal by 10 percent,
recycle 1,000 tons of paper and cardboard, and recycle 2,500
tons of wood. Performance on the corporate environmental
goal was measured and reported to employees monthly. To
promote competition between facilities, waste generation and
recycling totals were reported. PP&L replaced these
individual targets with a 1996 goal of at least $1 million
in savings through waste prevention activities.

Generating Stations and Distribution 

Coal ash recycling. PP&L mixes hydrated lime with its fly
ash to create Stabil-Fill. PP&L uses Stabil-Fill to backfill
former coal mines, as ready-mix concrete, and as fill for
construction projects. At one PP&L facility, the use of
Stabil-Fill saved an estimated $700,000 in avoided costs for
purchasing fill material and reduced the need to build new
ash disposal units, which would have cost over $50 million.
For offsite construction projects, Stabil-Fill has been used
for the expansion of an airport runway and backfill at
industrial sites. In the near future, it will be used for
local road construction.

Wood Reuse Program. In 1995, PP&L reused or donated
1,852,000 pounds of poles. PP&L encourages the reuse and
recycling of poles by the company, employees, and customers.
A company incentive program encouraged employees to find
ways to reuse, donate, and recycle poles, and track
giveaways. Wooden poles may be used for gates, barriers,
fencing, and landscape purposes. Used poles that cannot be
reused or recycled are chipped and burned for energy
purposes.

In 1995, PP&L reduced pallet purchases by 193,300 pounds and
sold almost 300,000 pounds of cable reels for refurbishing.
The company works with vendors on the quality of their
pallets to improve the potential for reuse (e.g., requesting
standard sizes and hardwood materials). It discourages the
use of "junk" or "one-time use" pallets.

PP&L attempts to reuse pallets wherever feasible and allows
employees to take home excess pallets to create compost
bins. It publishes a listing of pallet and reel refurbishers
and mulching facilities.

Fleet Maintenance 

Antifreeze reuse. Employees developed a filter to purify
antifreeze. They collect antifreeze in drums, filter off oil
and contaminants, and reuse it. Any unusable antifreeze is
recycled by a vendor.

For More Information, Contact: 
Larry LaBuz, Project Engineer 
Environmental Management 
Pennsylvania Power & Light Company 
2 North Ninth Street 
Allentown, PA 18101 
610 498-6238 (Phone) 
610 498-6204 (Fax)   

============================================================

PUBLIC SERVICE ELECTRIC AND GAS COMPANY (PSE&G)

     Fuel source: Coal and natural gas.

     Facilities: 16 fossil (PJM facilities).

     Generating capacity: 8,015 megawatts.

     Customers: Approximately 1,900,000.

     Employees: Approximately 11,000.

     Environmental policy: PSE&G is committed to 12
     environmental principles to foster a cleaner, healthier
     environment. These principles include conducting all
     operations to: meet and/or exceed all applicable
     environmental laws and regulations; promote
     environmental awareness; prevent pollution at the
     source, minimize waste generation, and recycle
     materials; and commit resources to support these
     principles.

Innovative Waste Reduction Activities

Education and Measurement 

Incentives in performance evaluations. PSE&G encourages
managers and staff to achieve environmental goals by
including such provisions in employee performance
evaluations. Company officers must achieve environmental
goals in their divisions to receive base raises. They
receive incremental raises for exceeding the goals.

Waste accounting. PSE&G uses a database program to track
waste management costs. The system enables PSE&G to track
labor, transportation, rental, taxes, and disposal costs for
all waste generated by the company. The system helps the
company track waste reduction benefits and identify high-cost activities and cost savings.

Generating Stations and Distribution 

Coal ash reuse. PSE&G established a goal of reusing 100
percent of its coal ash. The company contracts with firms
who find markets for both low-and high-quality ash. Some
uses for the ash include anti-skid material, landfill cover,
backfill material, buffering agents, and concrete
construction material.

Investment Recovery and Warehouse 

New technology for wood pole reuse. PSE&G initiated a pilot
program with a Louisiana firm to convert utility poles into
useful building materials using a combination of chemical
and biological processes. If successful, the process will
enable PSE&G to reuse between 6,000 and 8,000 tons of wood
poles annually (approximately 10,000 poles).

Commingled recycling. To achieve its ambitious recycling
goal, PSE&G uses a materials recovery facility that
processes recyclable materials, such as paper, wood, glass,
and construction debris. The company finds that commingled
recycling collection saves time devoted to separating
materials. Not only does this process help PSE&G exceed
state recycling targets (PSE&G recycled 94.5 percent of its
nonhazardous waste); it also helps save money in avoided
disposal costs. In 1995, PSE&G saved $500,000 in avoided
disposal costs through the commingled recycling program.

General Office 

Streamline suppliers. PSE&G consolidated the number of
suppliers it uses from 85 companies to only six. Doing so
enabled the company to eliminate several problems, such as
oversupply, duplication, and waste stemming from expired
product. PSE&G requires remaining suppliers to meet a 10
percent waste reduction target. The utility is also piloting
"take-back" and "just-in-time" inventory programs with these
suppliers.

Solid waste consulting. PSE&G has offered its waste
management expertise to one of its customers, Liberty State
Park (a waste-to-energy facility), in New York. PSE&G helped
the company to develop purchasing specifications for waste
management services. PSE&G is also establishing a computer
demanufacturing program at the PSE&G resource recovery
facility.

Electronic purchasing and billing. PSE&G is pilot-testing an
electronic data interchange system to electronically bill
both its commercial and residential customers. This action
would eliminate return envelopes and checks. PSE&G has
implemented an electronic purchasing program with its
suppliers.

For More Information, Contact: 
Donald McCloskey, Manager 
Coal Ash and Solid Waste Business 
80 Park Plaza, MC 23C 
Newark, NJ 07102-4194 
609 599-7018 (Phone) 
609 394-5980 (Fax)   

============================================================

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complete sections A and B)
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complete section A.) 

SECTION A 
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