## C3 1 

## I W i

Jun e 30,200 4 Mr
. Rober

t T
. Donaldson , Associat

e Directo r Busines s Complianc e Divisio n Burea u o f Wast e Prevention Departmen

t o f Environmenta

l Protectio n On e Winter Street, Eight

h Floo r Boston , M A 0210 8 RE : Propose

d Amendments t o 31 0 CM R7.0 0 an d 31 0 CM R70.00 Dea r Mr
. Donaldson : Pinpoint Powe r appreciate s th

e opportunit

y t o provid e inpu t

int o the Massachusett

s Departmen

t o f Environmenta

l Protection' s ("DEP" ) propose d regulatio n changes fo r

engine s an d turbine s (31 0 CM R7.0

0 an d 31 0 CM R70.00)
. Pinpoint Powe r develops , own s an

d manage s powe r and deman

d sid e managemen

t asset s i n the Northeast
. Pinpoint Powe r ha s bee n a n activ e Deman

d Respons

e Provide r i n the Ne w England Powe r Poo l sinc e 2002
. W

e applaud th

e DEP' s effort s t o proactivel y addres s bot h ne w distribute d generation technolog y an d a t the sam e tim e the urgen

t nee d t o increas e the reliabilit y o f electri c powe

r suppl y i n Massachusetts , particularl y i n the Northeas t Massachusetts/Bosto

n ("NEMA/Boston" ) area . Th e Independen

t Syste mOperato

r fo r Ne w England ("IS O Ne w England " or "ISO") , th

e not
for-profi t entit y responsible fo r

operating Ne w England' s bul k powe r system , ha

s determined tha t electri c loa

d i n Massachusett

s coul d excee

d the capabilit

y o f existin g electri c generating an d transmission resource s i n the region
. Unde r certai n conditions , thes e resource s ma y not b e abl e t o suppl y the loa d withou t overloadin g the line s or

causing lo w voltages
. I n 2002 , th e IS O reporte d tha

t tw o t o fou r

time s pe r yea r aportio n o f

the regio n i s onl y on

e ste p awa y fromsheddin

g 5 0 t o 10

0 megawatt

s ("MW" ) o f

loa d fo r a s man y a s ten hours a

t atime
. Accordingly , th

e stat e need s t o tak e immediat

e actio n t o ensur

e the continue d reliabilit y o f powe r suppl y i n the area . A strong Massachusetts ' econom y an d busines s climat

e depend s o n thi s reliability
. Fortunately , the DEP' s recommendation t o amen d the definitio n o f "emergency " t o allo w customers ' bac k u p generator

s t o participat

e i n IS O Ne w England' s 3 0 minut e real-tim e deman d response progra

m(a.k.a
. emergenc

y deman d response program

) i s exactly the kin d o f

actio n required
. Th e DEP' s recommendation t o amen d the definitio n o f

"emergency " need

s to explicitl y include situation s whe

n IS O Ne w England declare s Actio n 1 2 unde r the Ne w England Powe

r Poo l ("NEPOOL" ) Operating Procedur e 4 ("OP 4" ) "Actio n Durin g A Capacit y Deficiency " o r highe r fo r aspecifie d area . O

P 4 , Actio n 12 , a

s i t i s referre d to , i s the star

t o f brownout s wit h th e nex t ste p bein g involuntar

y interruption s o f

load
. Thi s declaratio n i s take n ver y 104 0 Grea t Plai n Avenu e Needham , M A 0249 2 Ph : 781-453-114 5 Fax : 781-453- 1 14 2Mr
. Rober t Donaldson Pag e 2 Jun e 30,200 4 seriously b y the ISO
. I n fact , eve n unde r th e extrem e weathe r condition s whic h occurred durin g the summe

r o f 2002 , the IS O di d not

declar e O P 4 , Actio n 12
. Othe

r tha n on Augus t 15 , 2003 , i n response t o the majo r powe r failur e tha

t occurre d throughout

th e Northeast , thi s leve l ha s rarely bee

n declared - i t

i s trul y reserve

d fo r emergenc y situations
. Thi s declaratio n shoul d no t

b e confuse d wit h othe

r IS O programs tha

t ar e enacte d fo r economi c reason s (e.g. , economic deman

d response)
. I t i s recommende

d tha t th e DE P us e languag e simila r t o the language tha

t th e Connecticu

t DE P ha s use d i n it s propose

d amendmen

t t o th e definitio n o f

"emergency. " Thi s proposa l ha s gon e throug h th

e publi c hearin g proces s an d i s expecte

d t o b e enacte d on Januar

y 1 , 2005
. Th e propose d languag

e tha t the Connecticu

t DE P ha s propose d i n §22a-174-22(a)(4 ) tha t revise s th

e definitio n o f

"emergency " is : "require s th e operatio n o f th e emergenc y engin e durin g th e perio d o f tim e i n whic h th e Ne w Englan d Regio n Syste mOperato r begin s voltag e reduction s o r involuntar y loa d interruption s withi n th e Connecticu t loa d zone. " Thi s revisio n doe

s not explicitl y us

e the ter mO P 4 , Actio n 1 2 becaus

e the DE P wa s concerne d tha t IS O ma y chang e the terminolog y i n th

e future
. Thus , languag

e wa s use d tha t describe s O

P 4 , Actio n 12
. I t

i s no t unti l O P 4 , Actio n 1 2 tha

t the IS O ca

n implemen

t voltag e reductions
. O

P 4 , Actio n 12 , a

s approved by th

e NEPOO L Participant s Committee o n Jun e 26 , 2003 , is : "Implemen

t avoltag e reductio n o f

five percen

t (5% ) o f norma l operating voltag e requirin g mor

e tha n 1 0 minute s t o implement
. Interrup t Real-Tim e Deman d Respons e - 3 0 Minute s o r

Les s Notificatio n (tha

t require s avoltag e reductio n t o b e implemented). " Id o no t believ e th

e languag e tha t th e DE P propose s i n it s revision s t o 31 0 CM R7.0 0 i s adequate
. Specifically , the proposed language : "Emergenc

y shal l als o mea

n whe n th e imminen

t threa t o f apowe r outag e i s likel y du e t o failur e o f

th e electrical suppl

y o r whe n capacit y deficiencie s result

i n a deviatio n o f

voltag e fromth e electrica l supplie r t o th e premise s o f

three percen

t (3% ) abov e o r fiv e percen

t (5% ) belo w standar

d voltage. " shoul d b e replaced wit h the followin g languag e tha t combine s th

e Massachusett

s DEP' s propose d languag

e alon g wit h wha

t the Connecticu

t DE P i s using : "Emergenc

y shal l als o mea

n whe n th e imminen

t threa t o f apowe r outag e i s likel y du e t o failur e o f

th e electrica

l supply , suc

h a s whe n the operatio n o f

the emergenc

y engin e i s require d durin g the perio d o f time i n whic h th

e Ne w Englan

d Regio n Syste mOperato

r begin s voltag e reduction s or involuntar

y loa d interruption s withi n th e Massachusett

s loa d zone. " Th e modifie d definitio n o f

"emergency " shoul d appl y t o al l ne w an d existin g sources , whethe r the y ar e permitte d b y rul e o r

b y a n ai r pla n approval
. Al l emergenc y engine s shoul d b e treated consistently
. Thus , the existin g air regulation s fo r

emergenc y engine s a

s regulated by permi t b y rul e nee

d t o b e amende d s o tha t th e definitio n o f

"emergency " als o applie s t oMr
. Rober t Donaldson Pag e 3 Jun e 30,200 4 existin g emergenc

y engine s locate d a

t facilitie s wit h existin g ai r pla n approvals
. Thus , the modifie d definitio n o f

"emergency " wil l b

e consistent ; otherwise , th e DE P wil l hav

e t o modif y ever y air pla n approva l tha t ha s bee n issue d fo r emergenc

y engines
. W e ar e als o awar

e o f arepor t prepare d b y Synaps

e Energ y Economics , Inc
. fo r

th e Environmenta

l Protectio n Agenc y ("EPA" ) entitle d "Results o f Deman d Respons

e Emission s Modeling " b

y Geof f Keith , Bruc e Biewald , Davi d White an d Mik e Drunsi c date

d August , 2003 an d revise d Septembe

r 4 , 2003 , assessin

g th e impacts o f

deman d respons e ("DR" ) i n Ne w England usin g a

n electri c syste

mdispatch model. 1 A s the draf t repor t states , "when th

e DRresource i s use

d t o mee t reserv e requirements , the result i s mor e efficien t

uni t commitment , reduce

d operatio n o f

oil

- an d gas-fire d stea

munit s an

d increase d operatio n o f combined-cycle unit s i n Ne w England. " Eve n assumin g al l D Ri s fro mdiesels , the repor t showe d ane t benefi t i n air quality
. Thus , b y changing th e definitio n o f

emergency , mor

e D R resource s wil l provid e th

e necessar

y reserv e capabilit

y an d regiona l air qualit y shoul d actually improve
. Th e DE P i s currentl y proposin g tha t a n alternativ e t o certificatio n b e available vi aa

n applicatio n unde

r the 31 0 CM R7.0

2 pla n approva l proces s fo r

alimite d numbe

r o f facilitie s including : peaking powe r units , loa d shaving units , unit s i n energ y assistanc

e programs , mechanica

l powe r unit s t o ru n pumps , unite s i n natura l ga s pipelin e service , an

d unit s usin g landfil l digester

s o r biogas
. Th

e DE P shoul d not

limi t the optio n o f

obtainin g a

n air pla n approva l t o alimite d numbe

r o f facilit y types . Thi s optio n shoul d b e availabl e t

o al l source types . Finally , according t o th

e supplier s o f

ultra-lo w sulfu r

diesel fuel , du

e t o testin g limitations , the y canno t guarante e the sulfu r

conten t o f th e fue l t o 0.015 % or

1 5 pp msulfur
. A mor

e realisti c limi t

i s 0.003 % or

3 0 pp msulfu r

whic h i s wha

t the Connecticu

t DE P ha s proposed i n it s regulations
. Than k yo u fo r allowin g Pinpoint

Powe r t o provide these comments . I f yo u hav e an y question s or

requir e additiona

l information , please d

o no t hesitat e t o contac

t m e a t 617-699

- 3756
. Ver y trul y yours , PINPOINT POWE

R

Thoma s E
. Atkin s Presiden t

1 A hypothetica

l near-ter myea r i n Ne w Englan d usin g projecte d 200 6 fue l price

s an d load s wa s modeled
. Th

e modelin g include d 50 0 M W o f D Rcapability : 6

0 percen t loa d respons e an d 4 0 percen t generation
. Th

e emission s impact s whe n D Ri s use d fo r reserve s result s i n significan

t decrease s o f criteri apollutan

t emissions , eve

n whe n i t i s assume d tha t th e D Ruse d t o mee t reserve s i s al l diese

l (e.g. , summe

r ai r impact s include : oxide

s o f nitroge n decrease s 2 3 tons , sulfu

r dioxid e decrease s 21 6 tons , carbo n dioxid e decrease s 31,40 0 tons , particulat

e matte r 2. 5 micron

s o r les s decrease s 12. 5 tons , particulat e matte r decrease s 21. 2 ton s an dmercur y decrease s 0.2 9 tons)
.