Environmental Responsibility Report

Transcription

1 your community energy company 2014 Environmental Responsibility Report Madison Gas and Electric

2 Table of contents Executive summary Green Masters designation... 4 Energy... 6 Climate change... 8 Wisconsin MGE Combustion Turbine Water...10 MGE Wind Farm Waste management...12 Transportation...14 Iowa MGE Gas/Electric Service MGE Gas Service Top of Iowa Wind Farm Prairie du Chien Elroy Viroqua Columbia Plant Madison Elm Road Plant Supply chain...16 Governance...17 Des Moines Blount Station West Campus Cogeneration Combustion turbines Solar units Workforce...18 Outreach...20 Community...22 MGE s Green Team Leaders...Back cover Madison Gas and Electric (MGE) generates and distributes electricity to 141,000 customers in Dane County and purchases and distributes natural gas to 147,000 customers in seven south-central and western Wisconsin counties. MGE is a regulated utility and the main subsidiary of MGE Energy. MGE s roots in the Madison area date back more than 150 years. Location 133 S. Blair St. Madison, WI Mailing address PO Box 1231 Madison, WI MGE Environmental Affairs environment@mge.com MGE Energy Shareholder Services investor@mgeenergy.com Forward-looking statements: This report includes forwardlooking statements and estimates of future performance that may differ from actual results because of uncertainties and risks encountered in day-to-day business. MGE installed this solar unit, shaped like a flower, at Olbrich Gardens. It is one of more than 20 photovoltaic units installed by MGE throughout the community.

3 Executive summary MGE is a community energy company dedicated to preserving the environment and quality of life for everyone who lives and works here. This philosophy drives us to regularly examine how we do business and look for environmentally responsible ways to serve our customers growing energy needs. It is a process of continuous improvement. Taking action Our proactive environmental approach will guide us into the future. A combination of thoughtful planning, innovative actions and responsible management will help us achieve sustainable energy solutions. Highlights of current initiatives include: Green Masters designation. MGE has attained the highest level of the Wisconsin Sustainable Business Council s Green Masters Program. This statewide sustainability program evaluates participating companies on their sustainable actions in nine areas. Based on this evaluation, companies are placed in one of three categories. The top 20% of the companies achieve the highestranking category the Green Master distinction. MGE is one of 33 companies and the only utility in Wisconsin to be recognized as a Green Master. Green Tier. MGE also is the only utility in Wisconsin to be awarded the highest participation level in Green Tier, the Wisconsin Department of Natural Resources environmental leadership program. Under Green Tier, we will build on our past success with a focus on reducing emissions and partnering with others on local environmental initiatives. Our five-year, voluntary Green Tier agreement underscores our commitment to the communities we serve. Local generation. MGE has added more than 350 local generation projects to the community grid so everyone can benefit from clean energy produced locally. One recent project is an innovative manure digester that was coordinated by Dane County. MGE purchases renewable energy from the digester, which converts cow manure into electricity. It also helps keep area lakes clean by reducing phosphorus. Gary J. Wolter Chairman, President and Chief Executive Officer MGE Energy and MGE Testing new technology. Our customers are early adopters of new technology including alternativefueled vehicles that use electricity or compressed natural gas (CNG). To serve the electric vehicle market, we installed one of the nation s first networks of electric vehicle charging stations. CNG is becoming an attractive alternative to gasoline and diesel especially for customers who operate fleet vehicles. CNG offers lower emissions and lower costs than gasoline or diesel and reduces the nation s dependence on foreign oil. Energy investments. Since 2005, we have increased the capacity of our generation fleet by 43% by building state-of-the-art power plants and adding wind resources. We have invested $348 million in new generation that is cleaner, more efficient and meets or exceeds environmental regulations. MGE recently invested an additional $135 million in a major emission-control project at the Columbia Energy Center. MGE owns 22% of this coal-fired plant, which was built in the 1970s. This newly installed equipment is projected to reduce sulfur dioxide and mercury emissions by 90% each. Additional accomplishments, initiatives, programs and partnerships are highlighted throughout this report. 3

4 Green Masters designation In 2014, MGE achieved the Green Masters level under a statewide sustainability program. This is the highest designation given by the Wisconsin Sustainable Business Council, a network of 177 Wisconsin businesses interested in, or actively responding to, the challenge of sustainability. Only the top 20% of companies in the program receive the Green Master distinction. MGE is the only utility in Wisconsin to be recognized as a Green Master and joins the ranks of other Wisconsin companies such as Epic Systems, Trek Bicycle and Kohl s. Jeff Jaeckels, MGE s director of Safety and Environmental Affairs, and Jeanne Burns-Frank, MGE s senior environmental specialist, accept MGE s 2014 Green Master certificate from Tom Eggert of the Wisconsin Sustainable Business Council. MGE achieves Green Masters designation, the highest program level. Achieving Green Masters status The Green Masters Program is an objective, pointsbased recognition program that enables Wisconsin companies to join like-minded businesses that are committed to sustainability. The program recognizes sustainability leaders and encourages continuous improvement. Businesses of all sizes, from all sectors, are eligible to participate in the Green Masters Program. Companies submit information on the steps they have taken to use less energy, cut waste and become generally more sustainable in their operations. Based on their performance in these areas, companies are then placed in one of three program categories with Green Master being the highest level. Green Masters evaluates actions that span nine primary areas of sustainable performance: Energy Climate change Water Waste management Transportation Supply chain Governance Workforce Community outreach MGE s specific efforts in each of these categories are discussed throughout this report. Benefits The opportunity to participate in the Green Masters Program reinforces that MGE s sustainability efforts are on track. In addition, Green Masters: Identifies how MGE compares to other highperforming companies in the state. MGE scored higher than the program average in all nine categories. (See page 5.) Suggests areas for improvement. This provides direction for sustainability goal setting. Encourages continuous improvement. Continuing to participate in Green Masters requires an ongoing commitment to improving our environmental performance. This philosophy fits with our dedication to identifying and incorporating sustainable energy solutions. 4

5 Green Masters comparisons The Green Masters Program recognizes sustainability leaders and encourages continuous improvement. The program scores companies on a points-based system. This allows companies to benchmark against other program participants. The following graphs show how MGE s 2014 scores compared to the average scores of companies enrolled in the Green Masters Program in each of the nine primary areas of sustainable performance. MGE Average of all companies participating in the Green Masters Program 1 Energy 55 6 Supply chain Climate change 66 7 Governance Water 58 8 Workforce Waste management 54 9 Outreach Transportation

6 Energy Emission rates (lbs./mwh) Nitrogen oxides Sulfur dioxide MGE meets all current, applicable environmental regulations and often goes beyond what is required. We are reducing air emissions by installing new emissionreduction technology and improving the equipment efficiencies of our diversified generation mix. MGE s electric generation units include: Blount Generating Station, Madison. MGE discontinued coal use at this facility in 2011 and retired 90 megawatts of older, less-efficient generation. The plant now operates only on natural gas. Columbia Energy Center, Portage. A major air emission-reduction project wrapped up this year. (See page 7.) Combustion turbines, Madison and Marinette. Elm Road Generating Station, Oak Creek Kewaunee Wind Farm, Kewaunee County. Solar photovoltaic units, Dane County. Top of Iowa Wind Farm, Worth County, Iowa. West Campus Cogeneration Facility, Madison Particulate matter Mercury Emission rates from MGE s owned generation assets as they came online, adjusted for MGE s share of jointly owned units. MGE is a co-owner of the Elm Road Generating Station and the Columbia Energy Center. The company also purchases power through contracts and on the Midcontinent Independent System Operator energy market. Investing and expanding Since 2005, MGE has increased the capacity of its generation fleet by 43% by building new power plants and adding wind resources. We have invested $348 million in new generation that is cleaner and more efficient. Additionally, we invested $135 million in emission controls at the Columbia Energy Center. In total, these capital expenditures are projected to be $483 million by the end of In 2015, these combined investments in new generation and environmental controls will significantly reduce our emissions. Compared to 2005, sulfur dioxide emissions will decrease by 94%, nitrogen oxide emissions by 50% and mercury emissions by 88%. 6

7 For the fifth consecutive ranking, Green Power Tomorrow is included in the National Renewable Energy Laboratory s top 10 utility green power programs. In 2013, MGE was second among investorowned utilities in the United States for Customer Participation Rate and third for Green Power Sales as a Percentage of Total Retail Electricity Sales. Construction wrapped up this year on one of the largest environmental projects ever built at a Wisconsin power plant. Newly added environmental controls at the Columbia Energy Center will reduce sulfur dioxide and mercury emissions by about 90%. These controls also will help capture fine particulate matter and reduce acid mist. MGE owns 22% of this plant. Another project is proposed at the Columbia plant that would reduce nitrogen oxide emissions by about 50%. If approved by state regulators, work could start in MGE would invest about $33 million in this improvement. Renewable energy MGE continues to grow its portfolio of renewable energy. Our energy sales, from renewable generation sources as a percentage of total retail electricity sold, are more than 12%. In addition to wind and solar energy, MGE also purchases electricity produced by landfill gas and a new manure digester that came online in Green Power Tomorrow MGE offers a choice for customers who wish to increase their commitment to renewable energy with its green pricing program. Since this program began in 1999, we have increased our investment in wind power by almost 12 times from 11.2 megawatts (MW) to 137 MW. Solar power capacity has grown from 186 kilowatts (kw) to 1,000 kw installed. Today, about 11,000 customers buy green power from MGE 60% of them choose to buy 100% of their energy from renewable sources. In 2013, MGE customers purchased enough renewable energy to meet the annual energy needs of 18,000 homes. Energy we use to operate We make careful decisions about the energy we use at our facilities. Since 2006, we have reduced energy consumption at our own General Office Facility and a second facility by 44%. Projects that helped us achieve these savings include: An ongoing effort to convert interior and exterior fluorescent lighting to LED lighting across our facilities. In addition to energy savings, this also improves lighting quality. Adding occupancy sensors to automatically turn off lights when no one is present. Building automation system upgrades. Insulation and roofing improvements. Environmentally friendly training facility MGE is building a new facility for operations training. The 10,000-square-foot facility in Fitchburg incorporates sustainable building strategies, including using environmentally sensitive finishes to take advantage of natural light. Other features include: Energy-efficient lighting. Polished concrete flooring. In-floor radiant heating system. Translucent exterior wall panel system that allows natural daylight in but also has a good insulating value. A stormwater management system that will reduce run-off from the site. 7

8 Climate change Projected CO2 emission rates (lbs./kwh) MGE works to balance the need for reliable electric service with our responsibility to protect the environment. This process includes addressing global climate change. We voluntarily reduce greenhouse gas emissions (GHG), including carbon dioxide and methane. Our strategies include: Energy efficiency and renewable energy actual 2015 projected Using cleaner, more efficient power plant generation. Initiatives that generate electricity from the combustion of methane energy. Implementing these initiatives will help MGE achieve a projected 21% decrease in total CO2 emissions and a 17% decrease in CO2 rates from 2005 to Projected CO2 emissions (million tons) Energy production Methane For more than a decade, MGE has been reducing GHG impacts with initiatives that generate electricity from the combustion of methane energy, which is produced locally in landfills and cow manure. As a GHG, methane is at least 20 times more potent than CO2. However, methane as a fuel burns much cleaner and produces 50% less GHGs than coal actual 2015 projected Landfill gas. MGE purchases electricity generated from methane at a Dane County landfill. This site currently produces more than 30 million-kilowatt hours (kwh) per year or enough to power about 4,600 homes. The amount of electricity MGE has purchased from this landfill has more than tripled in the last decade. Carbon dioxide (CO2) emissions are calculated from generating units owned by MGE, power purchase agreements and power projected to be purchased by MGE on the regional Midcontinent Independent System Operator market from unspecified sources. The market purchase emission rate is based on a seven-state regional average CO2 emission profile from all power produced in Wisconsin and the surrounding Midwest states. This 1,600-kilowatt landfill generator helps convert methane gas into electricity, which MGE buys and uses to power homes and businesses. 8

9 Helping customers reduce emissions MGE is committed to providing customers with tools they need to make wise energy choices. We work with customers who want to reduce their individual carbon footprints. Green Power Tomorrow (GPT). Participating in our green pricing program is an effective way for customers to buy more of their energy from renewable sources and offset their GHG emissions. Today, about 11,000 customers buy green power from MGE about 60% of them choose to buy 100% of their energy from renewable sources. In 2013, MGE customers purchased enough renewable energy to meet the annual energy needs of 18,000 homes. Customer programs. MGE believes encouraging customers to conserve energy is necessary for a sustainable future. We have a track record of helping residential customers and businesses implement measures to achieve their energy efficiency goals. MGE s GPT program ranks among the top investor-owned utilities nationwide for customer participation rate and green power sold as a percentage of electric sales, according to the National Renewable Energy Laboratory. We offer workshops, onsite energy assessments, training sessions, construction advice and more. Over the past 25 years, our customers conservation efforts have reduced the demand for new energy supply by nearly 118 megawatts. Enrique s Market on Madison s Northport Drive made smart choices about energy efficiency with help from MGE. We offer free energy assessments to small businesses and find the most cost-effective ways to reduce energy use. Manure digester. MGE receives energy from an innovative manure digester that came online at the end of The biodigester converts cow manure from local farms into electricity. The manure digester is expected to generate 11 million kilowatt-hours (kwh) of electricity annually, which is enough to power approximately 1,600 homes. This renewable biomass energy is added to MGE s community energy grid as part of its overall fuel mix. The project was made possible with the financial support of MGE. MGE purchases this electricity at a premium of more than $1 million annually, which is above the current market price for electricity. Power plant efficiency MGE continues to modernize its generation fleet, such as retiring less-efficient generation and switching to natural gas at our Blount Generating Station. We also added state-of-the-art emission controls and installed other equipment efficiencies. These actions contribute to our GHG reduction efforts. GHG reporting Under an Environmental Protection Agency requirement, MGE monitors, measures and reports several GHG emissions annually. The tracking covers power plant emissions and smaller combustion sources such as small engines. We also monitor and report GHG emissions for natural gas distribution to customers. 9

10 Water We are committed to going beyond regulations to protect our local lakes, rivers and streams. Our proactive approach includes strategies ranging from stormwater management and phosphorus reduction to dewatering practices and erosion control at work sites. Yahara WINs MGE is working with the Madison Metropolitan Sewerage District, Dane County, municipalities and other partners on a phosphorus-reduction effort in the Yahara River watershed. Yahara WINs is a fouryear pilot program aimed at reducing algae-forming phosphorus pollution that enters lakes and waterways. The goal is to identify effective strategies and develop an adaptive management program. Yahara WINs accomplishments include: Collecting water samples and conducting more than 1,800 analyses. Installing more than 23,000 feet of buffers in the Yahara watershed. Buffers are planted with a seed mixture. These crops provide water quality benefits as well as feed for animals. Providing $80,000 in funding to test and implement innovative phosphorus-reducing practices in the pilot watershed. More traditional efforts to reduce phosphorus have had limited success because they largely focus on point sources such as sewerage treatment and power plants. Alternatively, Yahara WINs is targeting nonpoint source contributors such as farms, construction sites and urban runoff. Manure digester MGE is helping clean area lakes with an innovative manure digester, which removes phosphorus. MGE supports this anaerobic digester by purchasing energy at a premium rate. The digester, which came online last year, converts cow manure from local farms into electricity. Previously, most phosphorus from these farms was discharged to the Yahara watershed, contributing to green algae and other weed growth. The manure digester generates 11 million kilowatthours of electricity annually, which can power approximately 1,600 homes. Erosion control MGE is committed to implementing proper erosioncontrol measures at all work sites. Strategies include implementing best practices specific to land features and water conveyances to minimize the likelihood of soil being washed out of a site. Additionally, MGE uses a database to gather and store performance data beyond what is required. This information can be readily accessed to help us effectively manage erosion-control strategies over time. MGE is regulated by 37 municipalities in Dane County for erosion control at electric and natural gas 10

11 construction sites. Many communities and the state also have permit and inspection requirements. MGE s erosion control program helps ensure MGE meets or exceeds requirements. Stormwater management Pollutants transported in stormwater are harmful to lakes, rivers, wetlands and waterways. MGE implements measures to protect our water bodies. For example, MGE s parking lot is home to a stormwater filtration system that tests the efficiency of various filters to clean stormwater before it drains into Lake Monona. The U.S. Geological Survey monitored the system and identified these pollution reductions: Petroleum compounds, 48%. Sediment, 39%. Phosphorus, 36%. Solids, 32%. Copper, 23%. Zinc, 8%. Training facility MGE also is installing a stormwater management system at a new training facility under development in Fitchburg. This system ensures there is no increase in runoff resulting from the development. The stormwater facilities are designed to complement the nearby wetland habitat. Prairie vegetation will reduce maintenance needs and serve as a habitat transition for wildlife in the area. Green roof at library MGE worked with the City of Madison to incorporate a green roof into a remodeling and expansion project at the Central Library. One benefit of the roof is that it helps with stormwater management. The roof s plants absorb rainwater, release some into the atmosphere and reduce surge loads on the municipal stormwater system. Dewatering practices MGE follows best practices to remove water from underground utility vaults. Some underground utility construction work must be performed in dry conditions. In such cases, MGE discharges accumulated water from utility vaults and manholes into nearby Eliminating phosphorus from facility discharge Clean water supports plants and wildlife. It also is important for health and recreation. While more stringent federal and state regulations for phosphorus reduction are likely in the future, MGE is taking steps now to make a difference. MGE recently implemented processes to help eliminate concentrations of phosphorus in discharge from its West Campus Cogeneration Facility (WCCF). We converted to a phosphorusfree: Cooling tower hardness inhibitor. Antiscalent used for reverse osmosis systems. This reduced phosphorus in the reverse osmosis wastewater discharge by 93%. Despite these measures, a small amount of phosphorus remains in the plant s discharge because WCCF uses city water and water from Lake Mendota. Phosphorus is present in these sources. storm drainage systems. This untreated water, which may contain sediment, then enters natural water bodies. To meet water quality standards and protect our area s water system, MGE: Tested various filtration options. Identified and implemented best practices for vault dewatering. One example is a specialized end-of-hose filter that removes sediment from water prior to discharge. 11

12 Waste management Conservation and recycling are key elements in achieving a sustainable future. At MGE, waste management is a top priority across all departments. Our Green Team helps lead this charge. Recycling All-in-one recycling Successful waste management requires a solid recycling program. MGE implemented an all-inone recycling program to make recycling easier for employees. With this singlestream method, paper products, glass, plastic and aluminum cans can be combined in one recycling bin. Last year, MGE employees recycled 112 tons of materials through the all-in-one method. This is an 8% increase over the previous year. More recycling results MGE requires employees to recycle materials in the office and in the field. Our paper recycling efforts alone save hundreds of trees annually. However, our efforts extend further. MGE collects: MGE recycles metal, wire, cables and other scrap materials left over from fieldwork. Metal, wires, cables and other materials. In 2013, we recycled more than 436 tons of metals from this process. Alkaline batteries from operations areas and employees homes. We send them to a vendor who recovers steel and zinc. In 2013, we recycled more than 1,500 pounds of alkaline batteries. Wood pallets and sends them to a local service to be shredded into landscaping mulch. In 2013, we recycled 76.8 tons of pallets. Thermostat recycling MGE operates a voluntary mercury thermostat recycling program. Customers, building contractors and others can bring mercury-containing thermostats to MGE for recycling at no charge. Clean Sweep MGE regularly coordinates a companywide Clean Sweep program. The goal is to properly dispose of all unwanted chemical products from MGE facilities. This includes cleaning solutions, paints, aerosols, lubricants, adhesives or any other potentially hazardous material. In 2014, our Clean Sweep collected nearly a ton of chemicals from our facilities. Clean Sweep helps: Improve the health and safety of all employees. Prevent accidental spills and unwanted chemical exposures. Protect MGE s indoor air quality. 12

13 MGE Clean Sweep This summer Safety and Environmental Affairs is collecting hazardous chemicals from all MGE buildings. Look in your work area for: Drop off unwanted products outside the GOF lunch area throughout the summer. Contact Katy Bengsch Ext or Jeanne Burns-Frank Ext with questions or for assistance with sorting/collecting. Additionally, proper chemical disposal protects our community s air quality, water resources and local habitats. MGE also maintains safety data sheets. Employees can access these resources any time to get information about proper disposal of materials. Employee education Since MGE s Green Team began, one of its ongoing goals is to foster communication with employees, provide them with training and encourage an understanding of key environmental issues. This remains a key strategy today. Examples of employee communications include: The Environmental Times. This employee newsletter is produced several times a year. Asset recovery at Blount MGE discontinued burning coal and retired lessefficient equipment at Blount Generating Station at the end of As that equipment was dismantled and removed, MGE worked closely with contractors and vendors. A significant amount of material was recovered from the retired equipment during this process: More than 500,000 pounds of metals were recovered from each of three steam turbine generators. This includes iron, steel, copper and stainless steel. More than 300,000 pounds of steel and copper were recycled from the coalhandling system. About 200,000 pounds of metals from various other equipment. Blount was built in 1902 and was Madison s first major electric power plant. Today, Blount burns only cleaner natural gas to generate electricity. It provides power year-round, especially Meetings. Green Team Leaders are employees during peak demand times in winter and summer. The 100-megawatt facility can produce with an understaning of daily operations in their departments. They meet regularly and enough electricity to power 50,000 homes. then communicate environmental information to employees in their respective areas. This publication provides information employees can use at work, such as new regulations and corporate policies. It also shares tips employees can use at home, such as where to dispose of hazardous materials, how to obtain rebates for energy-efficient products and how to reduce water impacts. Environmental posters. A series of posters is developed annually and displayed around the company. Posters feature environmental accomplishments, sustainability tips and other conservation strategies. A coal conveyor support tube that is no longer needed is removed from Blount. We recycled thousands of pounds of metal from retired equipment during this process. 13

14 Transportation MGE studies alternative transportation fuels that can lead to a cleaner environment. MGE is testing new technologies, growing our green vehicle fleet and informing customers about transportation fuels that can reduce emissions and decrease our nation s reliance on foreign oil. Electric vehicles To serve our customers growing interest in plug-in electric vehicles, we installed one of the nation s first networks of electric vehicle (EV) charging stations. We started with six charging stations and expanded to 27. These charging stations are powered by our wind resources in Wisconsin and Iowa. Our network includes the first public direct-current (DC) quick charger in Wisconsin. The unit can charge a vehicle battery to 80% capacity in 30 minutes or less. The quick charger makes commuting long distances more convenient for EV drivers. With technology evolving, we continue to study EVs. Nearly 200 drivers are enrolled in our EV charging MGE is exploring the role of natural gas and electricity as transportation fuels. This includes compressed natural gas (CNG). We work with business customers to promote CNG where it is a good fit for their transportation needs. research study. We are tracking EV energy use and learning more about drivers needs and charging patterns. We believe it is important to understand what it will take to serve this growing need for energy. Compressed natural gas We also are helping customers learn about compressed natural gas (CNG). CNG is becoming a popular alternative for business and government customers who operate fleet vehicles. CNG costs about half as much as gasoline or diesel and has fewer air emissions. CNG fueling sites are expanding locally and nationally. Three public stations in our service area offer CNG fueling: Middleton, Monona and Verona. MGE supplies natural gas to these stations. MGE is reaching out to customers with videos, seminars, newsletters and information on our website to help explain the benefits of CNG. MGE s transportation fleet At MGE, we use alternative-fuel vehicles in our daily operations. Our vehicle fleet includes: MGE installed Wisconsin s first public DC quick charger for electric vehicles (EV). EV owners now have an additional, convenient charging option and greater flexibility when commuting longer distances to and from the Madison area. Two hybrid electric distribution trucks. Typical bucket trucks require power from an idling engine to operate an aerial lift. With MGE s hybrid trucks, an electric component operates 14

15 the aerial lift bucket. A vehicle that can operate its bucket mechanism without idling wastes no fuel and emits no pollutants while working. We test the feasibility of these vehicles for daily use in the field. Studies suggest commercial hybrid vehicles could improve fuel economy by 20%, in addition to reducing greenhouse gas emissions and smogforming pollutants. A small electric vehicle with a half-ton hauling capacity used daily by our Facilities Department. 22 passenger-vehicle hybrids: Two plug-in electric vehicles: an allelectric Nissan Leaf and a hybrid gaselectric Toyota Prius. 19 gas-electric hybrid Ford Escapes. These vehicles are used for meter reading and other light-duty functions. One Chevrolet Silverado hybrid truck used for power plant maintenance. Nine CNG vehicles: Five pick-up trucks. Three Chevrolet Cavaliers. One Chevrolet van. The CNG fleet is used for pick-up and delivery tasks, transportation to diesel generator sites and other storeroom functions. MGE plans to continue growing its alternative-fuel vehicle fleet as additional light- and heavy-duty vehicles are needed. Additionally, MGE uses about 50 trucks and off-road pieces of equipment that are powered by ultra-low sulfur biodiesel. Using biodiesel also reduces air emissions and reliance on imported oil. Vehicle idling policy A team of MGE employees developed a vehicle idling policy that directs employees to turn off company vehicles and equipment when they are not in use. This practice helps: Reduce air emissions. Idling vehicles release nitrogen oxides, volatile organics and greenhouse gases. Burn less fuel. National studies show diesel- and gasoline-powered vehicles can use fuel at the rate of up to one gallon per hour when idling. Minimize wear and tear on engines. Clean Air Action Days MGE is a founding member of the Dane County Clean Air Coalition. Partnering with schools, businesses and government agencies, MGE works to improve air quality by taking pollutionreduction steps and encouraging others to do the same. On Clean Air Action Days, when higher levels of air emissions are expected, MGE steps up measures and: Reduces operational vehicle use when possible. Curtails painting projects because volatile organic compounds in paint contribute to ground-level ozone. Encourages employees to carpool or use alternative transportation to get to work. 15

16 Supply chain At MGE, we consider the environmental impacts of all company activities and actively look for cost-effective ways to reduce those impacts. We seek environmentally friendly options when considering sources of supply, material and contractors. Training subcontractors We are dedicated to protecting the environment, and we expect anyone working with us to demonstrate that same commitment. MGE recently implemented a corporate review process that guides our efforts. Before starting a major project, we thoroughly review the plans to identify any unusual circumstances or potential environmental impacts that could arise. This could include special permitting, erosion-control measures, construction site practices or safety issues. The next step is to meet with our subcontractors before work begins. We explain the specific situation, outline our expectations and discuss strategies that will ensure we minimize environmental impacts. Additionally, MGE employees are onsite during projects to oversee work and answer questions subcontractors may have. In the case of a smaller, routine project or when working with one of our regular subcontractors, we reinforce the need for consistent environmentally friendly practices. We attend our subcontractors weekly safety meetings to touch base on such issues. Encouraging vendors MGE encourages others to step up their environmental efforts. When we were switching to an automated meter reading system, we had to order new meters for all customers. We discovered that the meters available on the market contained mercury. So we challenged the manufacturer to develop mercuryfree devices for us. The manufacturer produced what became the first mercury-free meters widely available in the nation. MGE discusses any unique circumstances and trains subcontractors to follow environmentally responsible procedures, such as installing erosion control barriers (above). Green products MGE makes environmentally responsible choices when purchasing products used in our operations. When purchasing storeroom materials, we review our supplier base and purchase from local vendors when it is cost effective. By purchasing local products, we can eliminate the air emissions that would have been generated by transporting product a longer distance from where it was produced. Local purchases also support our local economy. MGE uses a variety of earth-friendly cleaning products. We avoid products that include harsh chemicals like bleach or ammonia. We also purchase some products, such as paper, made with recycled materials. MGE challenged a manufacturer to develop an electric meter that did not contain mercury. 16

17 Governance MGE has policies, procedures and other checkpoints in place to guide our actions, measure performance and track results. These systems help ensure environmental accountability remains a core focus. Green Tier MGE is the first utility in the state to join the Green Tier environmental leadership program at the Tier 2 level the highest designation given by the Wisconsin Department of Natural Resources (DNR). We are participating in Green Tier to continue our voluntary commitment to superior environmental performance. A collaborative approach MGE participated in the DNR s Environmental Cooperative Agreement (ECA) pilot program for 10 years and helped formulate and implement the regulatory flexibility and superior environmental performance that led to the passage of the Green Tier law. Improvement projects Here is a snapshot of some projects MGE is implementing to help meet its Green Tier goals. Manure digester. MGE is purchasing energy from an innovative manure digester. The digester converts cow manure from local farms into electricity. It also helps clean area lakes by reducing phosphorus. (See page 9.) Yahara WINs. Along with the Madison Metropolitan Sewerage District, Dane County, municipalities and others, MGE is partnering on a groundbreaking phosphorus reduction effort in the Yahara River watershed. (See page 10.) Mercury reduction. As part of our commitment to reduce mercury, we continue to follow a program at Blount Generating Station that removes older mercury-control equipment. Since 2002, MGE has removed 826 pounds of mercurycontaining equipment from this century-old power plant. Under Green Tier, MGE will continue its mercury-removal efforts and regularly track results. Additional projects are discussed throughout this report. MGE is the 1st utility in Wisconsin and the 5th company in the state to achieve Tier 2 status, the highest program level. MGE s Green Tier agreement is similar to the ECA. It emphasizes operational flexibility at Blount and broader corporate commitments to advance environmental sustainability. Under Green Tier, we will build on past success with a focus on reducing emissions and waste and diversifying our renewable energy portfolio. Environmental Management System MGE s ISO Environmental Management System (EMS) at Blount is a voluntary framework to enhance our environmental performance. It emphasizes employee training, specific procedures, checklists and communications. Blount is the first power plant in Wisconsin to be ISO certified. The EMS builds environmental accountability into daily operations at Blount by establishing annual goals and measuring performance with third-party environmental audits that are thoroughly reviewed by senior management. MGE has a track record of meeting performance standards measured on audits. Blount successfully passed its fourth independent audit in 2013 to recertify the ISO status for another three-year term. The EMS helped MGE meet the criteria for the Green Tier 2 level. Companies participating at this level must have a formal environmental management system. Community Environmental Advisory Group As a community energy company, MGE values customer input. Our Community Environmental Advisory Group (CEAG) provides input and ideas. CEAG works with us on environmental issues associated with our Green Tier Agreement with the DNR. MGE s CEAG, which is comprised of representatives from environmental organizations, government, business, the community and the DNR, is one of the longest-running groups of its kind in Wisconsin. 17

18 Workforce At MGE, our employees share the company s strong environmental values. That commitment is evident each day in our daily activities as well as through other voluntary efforts that go above and beyond workplace expectations. Green Team Every employee at MGE is a member of the Green Team and has a responsibility to the environment while at work. We recently celebrated our Green Team s 20th anniversary. For more than two decades, MGE s Green Team has proactively shared ideas, promoted environmental awareness and made improvements that strengthen our processes and procedures. To have a successful green team in place for this length of time is unique. MGE is one of our Green Tier companies that we have worked with for many years, so we knew about their excellent track record and applaud them on their long-term environmental performance. Al Shea Wisconsin Department of Natural Resources Green Team achievements range from erosion-control efforts and stormwater collection procedures to biketo-work initiatives. Recent projects include: Expanding and overseeing various recycling programs. (See page 12.) MGE s Green Team Leaders represent departments across the company. (See back page.) Working with our Environmental Affairs Department, Green Team Leaders guide activity, implement regulations and serve as educational resources. MGE installed water bottle filling stations and filtration systems for employees to reduce the use of plastic bottled water. Upgrading lighting throughout several of our facilities and replacing roofing at our main office building and another facility. The roofing improvement doubled the R-value of the roofing system. Other upgrades include increased temperature control, room occupancy sensors and upgrades to energyefficient computer servers. Organizing companywide Clean Sweep programs to assist employees with proper disposal of unwanted chemical products and other potentially hazardous materials. Installing filtration systems at drinking fountains to reduce the use of plastic bottled water. Working with our caterers to provide reusable eating utensils and environmentally friendly paper goods. 18

19 Business Friend of the Environment Award MGE received one of the Wisconsin Business Friend of the Environment (BFOE) awards in The nine award winners ranged from small businesses like New Glarus Brewery to large businesses like Mercury Marine. The award recognizes MGE s achievements in environmental stewardship, including: MGE volunteers organized a cleanup day and collected trash along a popular bike path in Madison. In the community In addition to implementing environmentally friendly practices throughout our facilities and worksites, MGE also takes an active role in the community. Our employees live and work in the towns, villages and cities we serve. They are dedicated to doing their part to support the area. Cleanup efforts are one example of the type of environmental stewardship activities that MGE employees spearhead. Bike path clean up Last fall, a group of employees teamed up to clean up a stretch of Madison s Willy Street Bike Path. Adopt-A-Highway MGE regularly participates in the Wisconsin Department of Transportation s Adopt- A-Highway program. The goal is to reduce litter along state highways, provide education on proper litter disposal, enhance the environment and help beautify our roadsides. Earlier this year, a group of MGE volunteers and their families spent time cleaning up a two-mile stretch of State Highway 14. Establishing and maintaining an active green team for 20 years. Developing an all-in-one recycling program to make recycling easier for employees. Recycling materials ranging from wood pallets to batteries and metals. Communicating environmental messages to employees through the Environmental Times newsletter. Participating in voluntary efforts to clean up and protect the environment. Reaching the highest level of the Department of Natural Resources Green Tier program. Achieving ISO certification at Blount Generating Station. Wisconsin Manufacturers & Commerce established the BFOE awards program to demonstrate to state policymakers, businesses and the public that sound environmental practices are good for Wisconsin and its business environment. 19

20 Outreach Customers talk, and we listen. We engage with more than 30,000 customers annually at events, trade shows, presentations and workshops. We actively pursue the power of working together in the way we do business. Safety education MGE encourages customers to learn about using energy safely. We share safety messages in person and provide a variety of tools, including brochures and website content. Our materials cover topics such as: Gas safety. We provide resources that highlight how to use natural gas safely and what to do if you smell gas. We also promote the importance of calling Diggers Hotline before digging projects to avoid injuries, damaged equipment and fines. MGE regularly conducts a customer survey to ensure we are creating awareness and building knowledge about natural gas. This kind of research helps us understand what efforts have been successful and should be continued and which strategies need improvement. Storm preparedness. This includes tips on how to prepare for a major storm and what to do during an electric outage. Disaster recovery planning. These materials explain the value of planning ahead and steps for developing a recovery plan. Green View MGE also offers Green View, our renewable energy web channel. Customers can learn about topics ranging from LED lighting and winterizing your home to MGE participates in Madison s annual Safety Saturday to teach families about natural gas and electric safety. MGE donates trees and participates in Arbor Day celebrations in local communities. MGE also works with students to teach them about planting and caring for trees. wind energy and electric vehicles. Green View features individuals, families, organizations and businesses in our community making choices to be greener. Greening our communities Urban Tree Alliance In honor of our Green Team s 20th anniversary, MGE is partnering with the Urban Tree Alliance (UTA) to plant trees around our service territory. UTA is leading the Madison Area Canopy project, which includes planting 500 trees on residential parcels in underserved neighborhoods that have low canopy cover. Participating property owners learn about planting the right trees in the right locations to avoid clearance issues with overhead electric lines as trees grow taller. UTA received an Urban Forestry Grant from the Wisconsin Department of Natural Resources for this project. The $50,000 grant has a 50/50 match requirement. MGE made a donation, which is part of these matching funds. Bike ride for tree research This year, MGE is supporting the country s largest annual fundraiser for tree research. Tour des Trees is a 585-mile bike ride through Wisconsin. In addition to cycling, the tour includes tree plantings, educational programs and community engagement activities. 20

21 Energy Breaks MGE works with local businesses as they make energy improvements. Some of them asked if we could provide energy programs for their employees. This collaboration led to a popular MGE program called Energy Breaks. We offer this service throughout the year to companies that want to educate their employees on ways they can use energy more efficiently. Earth Day Each year in observance of Earth Day, MGE participates in events at local businesses and around the community. This allows us to share energy messages and learn more about the needs of our customers. MGE also prepares an Earth Day Every Day Classroom Fun Book that is distributed in classrooms. This educational piece features activities and information for children to help them learn about conservation, renewable energy, climate change, electric vehicles, energy efforts in our community and more. MGE sponsors a video contest for grades 4-8. Students have an opportunity to win a grand prize by creating a fun video that captures an Earth Day activity actions at home, school or elsewhere that save energy and reduce their carbon footprint. New Green Challenge MGE reaches out to customers through the New Green Challenge, an innovative program to promote green living. MGE wrapped up the second round of this hands-on program earlier this year. Participating households from the area s African- American and Latino communities accepted a sixmonth challenge to live more sustainably by: Saving energy and water. Recycling. Composting. Eating healthier, more local foods. During the program, participants shared their experiences through monthly education sessions and Facebook sites. They embraced new ideas and changed daily habits to live more sustainably. They were willing to be a voice in the community and share what they learned. The program culminates with a celebration recognizing their achievements at Madison s Isthmus Green Day. Twenty households from the area s African-American and Latino communities participated in the recent New Green Challenge. MGE sponsors this program along with other community partners. MGE has a solar trailer used for Earth Day and other events. It has two types of photovoltaic panels on the top. Inside, we have displays and information about solar energy. One of the things that was most surprising to us about participating in the program was the amount of community experience that we had sharing what we were learning with other members of the community... In addition to a lot of savings tips that we received on how to conserve energy. New Green Challenge Participant 21

22 Community MGE works hard to stay connected and make a difference in the areas we serve. We have a history of collaborative initiatives as well as current efforts that contribute to the health and vitality of our community. Integrating energy resources The energy world is changing dramatically in the ways customers use electricity and in the ways electricity can be produced. MGE is working with customers and community partners to prepare for this change. Smaller distributed generation has a role in our energy future. The number of customers with small generators of electricity also is increasing. This includes solar panels on rooftops, manure digesters on farms and wind generators. Collaborating with customers on projects like these results in a cleaner energy future for all. Our community energy grid already has more than 350 local energy sources. We will continue to recognize the benefits of these local resources and work with our customers to meet the needs of everyone in our community. Technology demonstrations Our technology demonstration program has launched more than 30 distributed generation projects located around our community. MGE demonstrates new technologies to learn from them and share that information with customers. MGE teamed up with the City of Madison to install a green roof on the new Madison Central Library. It provides insulation and helps with stormwater management. Photovoltaic shingles produce electricity for this Madisonarea home. The solar installation also feeds clean renewable energy to MGE s community energy grid. Green roof at the library One of MGE s recent technology demonstrations is a green roof at the Central Library in Madison. MGE worked with the City of Madison on this project. The green roof absorbs rainwater and provides insulation. It also is aesthetically pleasing. In addition, we anticipate the project will help dispel some misperceptions about green-roof maintenance that are no longer an issue because of advances in building materials. This one project has the potential to teach many people about many different aspects of this technology. Badger Rock solar project MGE funded, developed and installed a solar demonstration project atop the Resilience Research Center located on Madison s south side. This building is home to Badger Rock Middle School, a new charter school emphasizing sustainability and urban agriculture, and the Resilience Neighborhood Center. MGE installed two different solar technologies on the rooftop s solar garden. Students can study the performance of the two different technologies and compare energy production. The combined systems can produce up to 19,000 kilowatt-hours of electricity annually. 22

23 Students at Madison s Badger Rock Middle School are learning firsthand about two different solar technologies with the demonstration project MGE installed on the school s rooftop. MGE has 11 photovoltaic systems on schools in our service area. Badger Rock is the first middle school with a solar installation. Ten high schools also host solar units. MGE installed the units so students and educators can learn more about clean, renewable energy. 15 years of wind power MGE began producing wind energy in years ago at its Rosiere Wind Farm in northwest Kewaunee County. Some customers wanted green energy options, and MGE wanted to find a way to meet their needs. This project required community effort. We also have long-term contracts from a neighboring Top of Iowa wind farm, Endeavor Wind Farm in northwest Iowa and Forward Wind Energy Center, which spans Dodge and Fond du Lac counties in Wisconsin. This wind energy helps support MGE s green pricing program, which also took shape in Today, more than 11,000 customers receive some or all of their electricity through our Green Power Tomorrow program. Many of these customers have been with the program since it began. Building an 11-megawatt wind farm in Rosiere required the support of Kewaunee County residents. MGE met with landowners and conducted neighborhood meetings with exhibits and presentations. We wanted to make the process easy for them. MGE signed contracts with seven landowners who lease space on their farmland for wind turbines. Fifteen years later, MGE continues to work closely with these landowners. Since 1999, MGE has grown its wind capacity to 137 MW. In 2008, the company built another wind farm, its Top of Iowa 3 facility in Worth County, Iowa. MGE s Kewaunee County wind farm generates electricity for about 3,000 homes, displacing what otherwise would have required an estimated 14,250 tons of coal each year. 23

24 MGE s Green Team Leaders MGE s Green Team Leaders represent departments across the company. They guide activity and help incorporate our environmental principles. MGE s Environmental Policy Electric Construction Engineering Electric System Engineering Energy Production Facilities Management Reduce impacts Exceed compliance Educate employees Jean Stephens Tim Gleiter Jeff Marcouiller Don Schwenn Gas Systems Engineering/ Production Generation and Transmission Planning Internal Audit Materials Management/ Fleet Operations Improve continuously Communicate and work with others Shaun Endres Diane Reinebach Song Ge Matt Van Beek Safety and Environmental Affairs Service and Metering MGE participates in the top level of Green Tier, a DNR program for superior environmental performance. Jeanne Burns-Frank Laura Schaefer Daryl Hilsendager MGE attained the Green Master designation from the Wisconsin Sustainable Business Council. Madison Gas and Electric Company PO Box 1231 Madison, WI mge.com This report is printed on recycled paper manufactured with wind power.