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STATE OF CONNECTICUT

DEPARTMENT OF ENVIRONMENTAL PROTECTION

In the matter of

The State of Connecticut and

,

PSEG Power Connecticut LLC

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Trading Agreement

and Order No. 8242

Whereas, the Commissioner of Environmental Protection

("Commissioner") and PSEG Power Connecticut LLC ("PSEG U ) agree

that it is in the public interest that they work cooperatively

to improve the air quality within the State of Connecticut and

that the use of emission reduction trading will achieve this

result in a timely and cost-effective manner:

A. At the request and with the agreement of PSEG, the

Commissioner finds the following:

1. PSEG is an exempt wholesale electric generating

company with its principal place of business in

Newark, New Jersey. On December 6, 2002 PSEG

purchased from Wisvest-Connecticut, LLC and now owns a

fossil fuel-fired electric generating station at 1

Atlantic Street in Bridgeport, Connecticut

("facility") .

2. At the facility, PSEG operates Bridgeport Harbor

Station Unit 2, Connecticut Registration NO.00150162,

an oil-fired cyclone boiler, currently rated at 170

megawatts ("boiler"). The boiler operates on No. 6 or

No.2 fuel oil. No.2 fuel oil is used primarily as a

start-up fuel. A continuous emissions monitor

("CEM"), certified to 40 Code of Federal Regulations

Part 75, measures nitrogen oxide ("NOx") emissions

from the boiler.

3. During the year 1997, based on CEM monitoring data,

the annual NOx emissions for Bridgeport Harbor

Station Unit 2 were 1,095 tons. The unit operated

for 5,320 hours and combusted 34,885,616 gallons of

No.6 oil and 61,781 gallons of No.2 oil.

4. During the year 1998, based on CEM monitoring data,

(PriIH:d Oil R~c~c'ed Paper)

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" .. PSEG Power Connecticut LLC 2 Trading Agreement

and Order No. 8242

the annual l.JOx emissions for Bridgeport Harbor

Station Unit 2 were 920 tons. The unit operated

for 4,493 tours and combusted 31,110,827 gallons of

No.6 oil and 71,527 gallons of No.2 oil.

, , s. The NOx RACT emission limit for Unit 2 is 0.43

lb/MMBtu, w~ich applies to firing on No. 6 oil or

No.2.oil, either individually or in combination.

6. On Decembe=.6, 2002 PSEG purchased from WisvestConnecticut, LLC and now owns 200 tons of NOx

CERCs, SN#C~4NOxOO-015-0045-7668-200. These 200

tons of·NOx CERCs were approved under Trading

Agreement and Order 8187.

fQ....

7. Pursuant to Section 22a-174-22(j) of the

Regulations: PSEG intends to limit' the NOx

emissions f=om Unit 2 to 192 tons annually to

maintain the NOx CERCs approved under Trading

Agreement and Order 8187 issued to WisvestConnecticut, LLC.

B. With the agreement of PSEG, the Commissioner, acting under

Sections 22a-6, 22a-:71, 22a-174, 22a-176, and 22a-177 of the

Connecticut General Statutes, orders PSEG as follows:

1. PSEG shall limit annual NOx emissions from the boiler to

no more than 192 tons during any calendar year.

2. PSEG shall maintain records fDr the boiler showing daily

NOx mass emissions, actual fuel consumed on a daily

basis, and ru~~ing totals of each of the foregoing for

the current calendar year.

3. No later than March 1 of every year after ~ssuance of

this Trading Agreement and Order, PSEG shall ~nclude

with the k~nual Emission Statement orovided to the

Commissioner, a record of each sale· or other transfer,

and use of any and all of the 200 tons of CERes

referenced ip oaragraph A.6. of this rrading Agreement

and Order until all such CERCs have been used. PSEG

shall also include actual NOx emissions from the boiler.

These reports shall be on a form prescribed by the

Commissioner.

4. PSEG shall retain records and supporting documentation

as described in this Trading Agreement and Order for a

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PSEG Power Cop~ecticut LLC 3 Trading Agreement

and Order No. 8242

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minimum of five years, commencin~ on the dat~ such

records were created. PSEG shal_ o~ovide the records

specified above to the Commissioner-within thirty (30)

days of receipt of a written request from the

Commissioner'l

5. Any NOx allowances allocated to the boiler and received

by PSEG pursuant to Sections 22a-i74-22a or 22a-174-22b

of the Regulations shall not be eligible for conversion

to offset credits. In addition, the 200 tons per year of

NOx CERCs referenced in paragraph A.G. of this Trading

Agreement and Order shall be used as offset, credits only

by stationary sources subject to Sections 22a-174-22a or

22a-174-22b of the Regulations or by stationary so~rces

subject to a NOx budget program established by another

state in accordance with the Ozone Transport Commission

Memorandum of Understanding dated September 27, 1994 or

40 Code of Federal Regulations Part 96.

6. Aoorovals. PSEG shall use best efforts to submit to the

Commissioner all documents required by this Trading

Agreement and Order in a complete and approvable form.

If the Com~issioner notifies PSEG that any docume~t or

other action is deficient, and does not approve it with

conditions or modifications, it is deemed disapproved,

and PSEG shall correct the deficiencies and resubmit it

within the time specified by the Commissioner or, if no

time is specified by the Commissioner, within 30 days of

the Commissioner's notice of deficiencies. In approving

any document or other action under this Trading Agreement

and Order, the Commissioner may approve the document or

other action as submitted or performed or with such

conditions or modifications as the Commissioner deems

necessary to carry out the purposes of this Trading

Agreement and Order. Nothing in this paragraph shall

excuse noncompliance or delay.

7. Definitions. As used in this Trading Agreement and

Order, "Commissioner" means the Commissioner of

Environmental Protection or an agent of the Commissioner.

"Ozone season" means the period from May 1 through

September 30 in any given calendar year. The date of

"issuance" of this Trading P.greement and Order is the

date the Trading Agreement and Order is deposited in the

U.S. mail or personally delivered, whichever is earlier.

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PSEG Power Connecticut LLC 4 Trading Agreement

and Order No. 8242

8. Dates. The dal:e of submission to the Commissioner of any

document requir:ed by this Trading Agreement and Order

shall be the ,date such document is received by the

CommissioneI:. ·.. The date of any notice by the Commissioner

under this Trading Agreement and Order, including but not

limited to notice of approval or disapproval of any

document or other action, shall be the date such notice

is deposited in the U.S. mail or is personally delivered,

whichever is earlier. Except as otherwise specified in

this Trading Agreement and Order, the word "day" as used

in this Trading Agreement and Order means calendar day.

Any document or action which is required by this Tr~ding

Agreement and Qrd~r to be submitted or performed by a

date which falls on a Saturday, Sunday or a Connecticut

or federal holiday shall be submitted or performed by

the next day which is not a Saturday, Sunday or

Connecticut or federal holiday.

9. Certification of documents. Any document, including but

not limited to any notice, which is reqUired to be

submitted to the Commissioner under this Trading

Agreement and Order shall be signed by PSEG or, if PSEG

is not an individual, by PSEG's chief executive officer

or a duly authorized representative of such officer, as

those terms are defined in Section 22a-430-3(b) (2) of the

Regulations, and by the individual(s) responsible for

actually preparing such document, and PSEG or PSEG's

chief executive officer and each such individual shall

certify in writing as follows: ~I have personally

examined and am familiar with the information submitted

in this document and all attachments thereto, and I

certify, based on reasonable investigation, including my

inquiry of those individuals responsible for obtaining

the information, that the submitted information is true,

accurate and complete to the best of my knowledge and

belief. I understand that any false statement made in

the submitted information is punishable as a criminal

offense under Section 53a-157b of the Connecticut General

Statutes and an.y other applicable law."

10. Noncomoliance .. This Trading Agreement and Order is a

final order of.the Commissioner with respect to the

matters addressed herein, and is nonappealable and
PSEG Power Connecticut LLC 5 Trading Agreement

and Order No. 8242

immediately enforceable. Failure -to comply with this

Trading Agreement and Order may subject PSEG to an

injunction and penalties.

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11. False statements. Any false stat~ment in any information

submitted pursuant to this Trading Agreement and Order is

punishable as a criminal offense under Section 53a-157b

of the Connecticut General Statut'es and any other

applicable law.

12. Notice of transfer; liability of PSEG and others. Until

PSEG has fully complied with this Trading Agreement and

Order, PSEG shall notify the Commissioner in writing no

later than fifteen (15) days after transferring all or

any portion of the facility, the operations, the site or

the business which is the subject of this Trading

Agreement and Order or after obtaining a new mailing or

location address. PSEG's obligations under this Trading

Agreement and Order shall not be affected by the passage

of title to any property to any other person or

municipality.

13. Commissionerls powers. Nothing in this Trading Agreement

and Order shall affect the Commissioner's authority to

institute any proceeding or take any other action to

prevent or abate. violations of law, prevent or abate

pollution, recover costs and natural resource damages,

and to impose penalties for past, present, or future

violations of law. If at any time the Commissioner

determines that the actions taken by PSEG pursuant to

this Trading Agreement and Order have successfully

corrected all violations, fully characterized the extent

or degree of any pollution, or successfully abated or

prevented pollution, the Commissioner may institute any

proceeding to require PSEG to undertake further

investigation or further action to prevent or abate

violations or pollution.

14. PSEG's obligations under law. Nothing in this Trading

Agreement and Order shall relieve PS£G of other

obligations under applicable federal, state and local

law.

15. No assurance by Commissioner. No provision of this
PSEG Power Connecticut LLC 6 Trading Agreement

and Order No. 8242

Trading Agreement and Order and· no action or inaction by

the Commissioner shall be construed to constitute an

assurance by the Commissioner that the actions taken by

PSEG pursuant to this Trading Agreement and Order will

result in c~~liance or prevent or abate pollution.

16. Access to facility. Any representative of the Department

of Environmental Protection may enter the facility

without prior notice for the purposes of monitoring and

enforcing the actions required or allowed by this Trading

Agreement and Order.

17. No effect on rights of other persons_ This Trading.

Agreement and Order neither creates nor affects any

rights of persons or municipalities that are not parties

to this Trading Agreement and Order.

18. No Creatlon of Property Rights. This Trading Agreement

and Order does not create any property rights with

respect to these DERCs.

19. Notice to Commissioner of changes. Within fifteen (15)

days of the date PSEG becomes aware of a change in any

information submitted to the Cowmissioner under this

Trading Agreement and Order, or that any such information

was inaccurate or misleading or that any relevant

information was omitted, PSEG shall submit the correct or

omitted information to the Commissioner.

20. Notification of noncomnliance. In the event that P5EG

becomes aware that it did not or may not comply, or did

not or may not comply on time, with any requirement of

this Trading Agreement and Order or of any document

required hereunder, PSEG shall immediately notify by

telephone the individual identified in the next paragraph

and shall take all reasonable steps to ensure that any

noncompliance or delay is avoided or, if unavoidable, is

minimized to the greatest extent possible. Within five

(5) days of the initial notice, PSEG shall submit in

writing the date, time, and duration of the noncompliance

and the reasons for the noncompliance or delay and

propose, for the review and written approval of the

Commissioner, dates by which compliance will be achieved,

and PSEG shall comply with any dates which may be
PSEG Power Connecticuc LLC 7 Trading Agreement

and Order No. 8242

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approved in writing by the Commissioner. Notification

by PSEG shall not excuse noncompliance or delay, and the

Comrnissioner1s approval of any compliance dates proposed

shall not excpse noncompliance or delay unless

specifically. so stated by the Commissioner in writing.

21. Submission of documents. Any document required ~o be

submitted to the Commissioner under this Trading

Agreement and Order shall, unless otherwise specified in

this Trading Agreement and Order or in writing by the

Commissioner, be directed to:

Ms. Wendy Jacobs

Department of Environmental Protection

Bureau of Air Management

Compliance and Field 'Operations Division

Emissions and Credit Trading Section

79 Elm Street

Hartford, Cop_~ecticut 06106
P5EG Power Connecticut LLC 8 Trading Agreement

and Order No. 8242

PSEG consents to the issuance of this Trading Agreement and

Order without further notice. The undersigned certifies that

he/she is fully authorized to enter into this Trading Agreement

and Order and to legally bind PSEG to the terms and conditions

of the Trading Ag~eement and Order.

Signature:

Name:

~power

W. r"toore

Connecticut LLC

Title; V_ce President - =ossil O~erations

Environmental Protection on

Issued as a final consent order

~anuar~ 24, 2003

nrtnur

Commi 'e,J,ta

RECEIPT REQUESTED

RECORDS

RETURN

Date;

CITY OF BRIDGEPORT LP~VD

MAILED CERTIFIED MAIL,

Certified Document No.

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