# Appendix B: Point Source SO 2 

# Emissions Reductions

## SCE&G Facility Reductions Analysis.................................................................................3 SCE&G Press Release (May 30, 2012) .............................................................................11 Duke Energy: Progress Energy Press Release (July 27, 2012)..........................................12 Duke Energy: Progress Energy Robinson Retired Unit Exemption (October 18, 2012)...14 Santee Cooper: Grainger & Jefferies Press Release (October 19, 2012)...........................22 Santee Cooper Consent Decree (June 24, 2004)................................................................24

## Since sulfates have been shown to be the predom inant species of concern to visibility impairment at Cape Romain during the first round of regi onal haze planning, the Department of Health and Environmental Control (DHEC) conducted an analys is of the emissions at several of the large electric generating units (EGUs) in the State. Th is analysis of South Ca rolina Electric & Gas (SCE&G) facilities in the state indicate that SO 2 

## emissions over the last decade have decreased significantly. Of the three sources that experienced slight increases in SO 2 

## emissions (Canadys, McMeekin, and Urquhart), SCE&G recently announced as part of the annual Integrated Resource Plan filed with the Public Service Comm ission of South Carolina, its plans to retire up to six coal-fired generating units at three locations by the end of 2018. The retirement of these units will serve to further reduce SO 2 

## emissions in the South Carolina, ensuring that the state will meet its reasonable progress goals in the future . A pronounced decline in economic activity and curtailment of natural gas lead to the replacemen t of coal as the primary source of fuel for many of the facilities within the last few years. The following figures and tables provide emission information on the SCE&G facilities in the state.

Figure 1: SCE&G Network SO 2 

## Emissions in Tons/Year

SCE&G Network of PC-Fired Facilities

0 20,000 40,000 60,000 80,000 100,000 120,00019971998199920002001200220032004200520062007200820092010



## YearSO2 Tons 

### Canadys

Cope

McMeekin

Urquhart

Wateree

Williams

Network Sum Running Average

## Table 1: SCE&G Network SO 2 

## Emissions in Tons/Year

Year Canadys Cope McMeekin Ur quhart Wateree Williams Sum Average 5-Year Rolling 

### Average

1997 12,810 2,275 15,453 11,518 35, 550 25,399 103,005 103,005 1998 17,345 2,496 16,839 11,961 36, 387 18,598 103,626 103,316 1999 11,877 2,347 14,894 13,251 39, 501 24,937 106,807 104,479 2000 18,667 2,012 14,155 13,990 31, 184 24,205 104,213 104,413 2001 22,038 1,464 12,773 12,878 34,925 22,789 106,867 104,904 104,904 2002 18,591 1,879 9,820 5,510 36,378 25,544 97,722 103,707 103,847 2003 19,890 2,215 12,010 6,370 33,069 20,008 93,562 102,257 101,834 2004 27,088 2,689 11,509 5,780 39,421 20,718 107,205 102,876 101,914 2005 19,558 2,293 14,427 5,961 37,774 28,063 108,076 103,454 102,686 2006 22,984 2,603 13,308 6,738 32,797 28,147 106,577 103,766 102,628 2007 17,881 2,334 10,647 7,172 30,939 22,494 91,467 102,648 101,377 2008 17,966 1,817 12,996 5,876 35,471 22,923 97,049 102,181 102,075 2009 9,629 1,595 6,585 4,422 27, 992 16,920 67,143 99,486 94,062

2010 1 

### 12,680 1,759 9,680 5,161 18,239 947 48,466 95,842 82,140

1 

## Scrubbers became operational at Wateree and Williams Source: USEPA Acid Rain

Note: The “Average” field is an average of all available annual data from 1997 to date. The 1998 Average includes annual data from 1997 and 1998 (2 years), while the 2010 Average includes data from 1997-2010 (14 years). The second Average column provides the 5-year rolling average for comparison.

## Figure 2: SCE&G Canady’s SO 2 

## Emissions in Tons/Year

SCE&G-Canadys Station (ORIS 3280)

0 5,000 10,000 15,000 20,000 25,000 30,000

19

97 19 98 1999 2000 2 0

01 20 0 2 20 0 3 2004 2005 20 06 20 07 20 08 2009 2 0

10 

### YearSO2 Tons 

### ARP Annual Actuals

ARP Annual Average



## Note: “ARP” means Acid Rain Program

Table 2: SCE&G Canady’s SO 2 

## Emissions in Tons/Year

Year SO 2 

### Tons Average

1997 12,810 12,810 1998 17,345 15,078 1999 11,877 14,011 2000 18,667 15,175 2001 22,038 16,547 2002 18,591 16,888 2003 19,890 17,317 2004 27,088 18,538 2005 19,558 18,652 2006 22,984 19,085 2007 17,881 18,975 2008 17,966 18,891 2009 9,629 18,179 2010 12,680 17,786

## Figure 3: SCE&G Cope’s SO 2 

## Emissions in Tons/Year

SCE&G-Cope Station (ORIS 7210)

0 500 1,000 1,500 2,000 2,500 3,00019971998199920002001200220032004200520062007200820092010 

## YearSO2 Tons 

### ARP Annual Actuals

ARP Annual Average



## Note: “ARP” means Acid Rain Program

Table 3: SCE&G Cope’s SO 2 

## Emissions in Tons/Year

Year SO 2 

### Tons Average

1997 2,275 2,275 1998 2,496 2,386 1999 2,347 2,373 2000 2,012 2,283 2001 1,464 2,119 2002 1,879 2,079 2003 2,215 2,098 2004 2,689 2,172 2005 2,293 2,186 2006 2,603 2,227 2007 2,334 2,237 2008 1,817 2,202 2009 1,595 2,155 2010 1,759 2,127

## Figure 4: SCE&G McMeekin’s SO 2 

## Emissions in Tons/Year

SCE&G-McMeekin Station (ORIS 3287)

0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,00019971998199920002001200220032004200520062007200820092010 

## YearSO2 Tons 

### ARP Annual Actuals

ARP Annual Average



## Note: “ARP” means Acid Rain Program

Table 4: SCE&G McMeekin’s SO 2 

## Emissions in Tons/Year

Year SO 2 

### Tons Average

1997 15,453 15,453 1998 16,839 16,146 1999 14,894 15,729 2000 14,155 15,335 2001 12,773 14,823 2002 9,820 13,989 2003 12,010 13,706 2004 11,509 13,432 2005 14,427 13,542 2006 13,308 13,519 2007 10,647 13,258 2008 12,996 13,236 2009 6,585 12,724 2010 9,680 12,507

## Figure 5: SCE&G Urguhart’s SO 2 

## Emissions in Tons/Year

SCE&G-Urquhart Station (ORIS 3295)

0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,00019971998199920002001200220032004200520062007200820092010 

## YearSO2 Tons 

### ARP Annual Actuals

ARP Annual Average



## Note: “ARP” means Acid Rain Program

Table 5: SCE&G Urguhart’s SO 2 

## Emissions in Tons/Year

Year SO 2 

### Tons Average

1997 11,518 11,518 1998 11,961 11,740 1999 13,251 12,243 2000 13,990 12,680 2001 12,878 12,720 2002 5,510 11,518 2003 6,370 10,783 2004 5,780 10,157 2005 5,961 9,691 2006 6,738 9,396 2007 7,172 9,194 2008 5,876 8,917 2009 4,422 8,571 2010 5,161 8,328

## Figure 6: SCE&G Wateree’s SO 2 

## Emissions in Tons/Year

SCE&G-Wateree Station (ORIS 3297)

0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,00019971998199920002001200220032004200520062007200820092010 

## YearSO2 Tons 

### ARP Annual Actuals

ARP Annual Average



## Note: “ARP” means Acid Rain Program

Table 6: SCE&G Wateree’s SO 2 

## Emissions in Tons/Year

Year SO 2 

### Tons Average

1997 35,550 35,550 1998 36,387 35,969 1999 39,501 37,146 2000 31,184 35,656 2001 34,925 35,509 2002 36,378 35,654 2003 33,069 35,285 2004 39,421 35,802 2005 37,774 36,021 2006 32,797 35,699 2007 30,939 35,266 2008 35,471 35,283 2009 27,992 34,722
2010 18,239 33,545

## Figure 7: SCE&G William’s SO 2 

## Emissions in Tons/Year

SCGenCo-Williams Station (ORIS 3298)

0 5,000 10,000 15,000 20,000 25,000 30,000

19

97 19 98 19 99 20 00 20 01 20 02 20 03 20 04 20 05 20 06 20 07 20 08 20 09 20 10 

### YearSO2 Tons 

### ARP Annual Actuals

ARP Annual Average



## Note: “ARP” means Acid Rain Program

Table 7: SCE&G William’s SO 2 

## Emissions in Tons/Year

Year SO 2 

### Tons Average

1997 25,399 25,399 1998 18,598 21,999 1999 24,937 22,978 2000 24,205 23,285 2001 22,789 23,186 2002 25,544 23,579 2003 20,008 23,069 2004 20,718 22,775 2005 28,063 23,362 2006 28,147 23,841 2007 22,494 23,718 2008 22,923 23,652
2009 16,920 23,134 2010 947 21,549SCANA Public Affairs  Cayce, S.C. 29033  T (800) 562.9308  F (803) 217.8825  www.scana.com 

### For Immediate Release Contact: Public Affairs: 1-800-562-9308



## SCE&G announces plans to retire a portion of its coal-fired generation

CAYCE, S.C. (May 30, 2012) – As part of its annual Integrated Reso urce Plan filed today with the Public Service Commission of South Carolina, South Carolina Electric & Gas (SCE&G) announced plans to retire up to six coal-fired generating units at thr ee locations by the end of 2018. The units range in age from 45 to 57 years and are SCE&G’s oldest and smallest coal-fired units.

The Environmental Protection Agency in recent y ears has issued a series of increasingly stringent regulations targeting coal-fired electric generating plants. Since 2008, SCE&G has installed more than $600 million in environmental equipment at its largest coal-fired power plants, significantly reducing emissions of sulfur dioxide, nitrogen oxides and me rcury. However, the company determined that adding costly environmental control equipment to these older plants to ensure compliance with the new regulations would not at this time be a good business decision.

“Since announcing our new nuclear project in 2008, we ’ve said that the addition of the two new nuclear units would give us flexibility to look at reducing ou r reliance on coal and allow us to achieve better fuel diversity in our electric generation portfolio,” sa id Kevin Marsh, Chairman and CEO of SCE&G’s parent company, SCANA Corp. “With the planned retirement of these coal units and the addition of our two new nuclear units, we anticipate that by the end of 2018 roughly one-third of our electric generation will be fueled by nuclear power, one-third by natural gas, and one-third by scrubbed coal-fired plants. These changes will help us meet the increasingly stringent environmental regulations facing our industry and should position SCE&G to be a leader in non-emitting generation well into the future.”

Near term steps SCE&G outlined in its IRP include: • Retirement of Unit 1 at the Canadys Plant near Walterboro by the end of 2012 • Switching Unit 3 at the Urquhart Plant near Aiken from coal to entirely natural gas by the end of 2012

Additional planned steps include: • Planned switching of Units 1 and 2 at the McMe ekin Plant near Irmo and Units 2 and 3 at the Canadys Plant from coal to entirely natural gas by 2015 • Planned retirement of the remaining two units (Units 2 and 3) at Canadys by the end of 2017 • Planned retirement of both Units 1 and 2 at the McMeekin Plant by the end of 2018 • Planned retirement of Unit 3 at Urquhart by the end of 2018

SCE&G employs a total of about 170 people at these th ree plants. The retirement of Unit 1 at Canadys and the switching of Urquhart Unit 3 to natural gas are expected to impact 20 positions. The company will assist affected employees in looking for other posi tions within the company. “These units and their employees have served our customers well for decades , and we appreciate their service,” said Marsh.

SCE&G is a regulated utility engaged in the generation, trans mission, distribution and sale of electricity to approximately 668,000 customers in South Carolina. The company also provides natural gas service to approximately 319,000 customers throughout the state. More information about SCE&G is available at www.sceg.com

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t s R e s e r v e dCorporate Communications & Media Relations • 1 Riverwood Dr. • Moncks Corner SC • 29461 • Fax 843-761-7060 

### Oct. 19, 2012 Media Contact: Mollie Gore Corporate Communications 843-761-7093 mollie.gore@santeecooper.com



# Santee Cooper board authorizes retirements of Jefferies and Grainger generating units

MONCKS CORNER, S.C. – The Sa ntee Cooper Board of Directors voted today to authorize retirement of six electric generating units at its tw o oldest stations, after considering Santee Cooper’s generation resource needs and the cost of complying with new environmental regulations. The board directed its president and CEO to take charge of developing and executing plans for an orderly retirement of the four coal and two oil units.

The vote marks Santee Cooper’s first unit retirements since the state-owned utility first generated power 70 years ago. Santee Cooper was established in 1934, first generated electricity in 1942 and today has 165,000 direct-serve customers and hund reds of thousands more who receive Santee Cooper electricity through the state’s 20 electric cooperatives, in all 46 counties of South Carolina.

“As we evaluated the anticipated costs of complying with new regulations and the generation resources we anticipate needing, it became clear that the best action for our customers and the state is to authorize the retirement of these units at Jefferies and Grainger,” Board Chairman O.L. Thompson said. “It is not a decision we make lightl y. However, it is the most cost-effective move we can make.”

Santee Cooper expects to relocate affected employees to other positions made available through attrition, and so layoffs are not anticipated. There is no timetable yet for the unit retirements, although Grainger’s units were idled in the spring.

“Santee Cooper’s primary responsibility is to prov ide South Carolina with affordable, reliable and environmentally protective electricity, and today’s board vote supports that responsibility,” said President and CEO Lonnie Carter. “Even so, this was a difficult recommendation for management to make, given the important legacies of these two generating stations to our utility, our state and to the communities around them.”

Jefferies Generating Station, located in Moncks Corner, has four units slated to be retired: two are coal-fired and two use oil. The oldest two units da te to 1954, units 3 and 4 came online in 1970, andCorporate Communications & Media Relations • 1 Riverwood Dr. • Moncks Corner SC • 29461 • Fax 843-761-7060 

### the four have a combined capacity of 398 megawa tts. The decision does not affect Jefferies Hydroelectric Generating Station.

Grainger Generating Station, located in Conway, came online in 1966 and has a capacity of 170 megawatts. The station has been idle since earlier this year as Santee Cooper continued evaluating potential impacts of the U.S. Environmental Protection Agency’s new Mercury and Air Toxics Standard (MATS) for air emissions, issued last December.

Santee Cooper continues its evaluation of MATS requ irements affecting its other, newer fossil fueled generating units. The utility has an excellent record of environmental stewardship and was the first in South Carolina to install scrubbers on gene rating units, among other achievements.

“Our priority now will be to evaluate next steps and establish a timetable for retiring the units,” Carter said. “I recognize that these will be impo rtant decisions potentially impacting many people, and we will be inclusive and transparent as we go forward. These stations are neighbors to thousands of our customers, after all, and we fully intend to remain involved in these communities.”

Santee Cooper is South Carolina’s state-owned electric and water utility, and the state’s largest power producer. The ultimate source of electricity for 2 million South Carolinians, Santee Cooper is dedicated to being the state’s leading resource for improving the quality of life for the people of South Carolina. For more information, visit www.santeecooper.com.