your community energy company Madison Gas and Electric Company 2010 Environmental Responsibility Report

Transcription

1 your community energy company Madison Gas and Electric Company 2010 Environmental Responsibility Report

2 Table of contents Executive summary Taking a proactive environmental approach Controlling air emissions Growing renewable energy Addressing climate change Leading voluntary efforts Enhancing operations Testing technology Working with our customers Green Team Back Madison Gas and Electric (MGE) generates and distributes electricity to 138,000 customers in Dane County and purchases and distributes natural gas to 142,000 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. Web address Mailing address P.O. Box 1231 Madison, WI Location 133 S. Blair St. Madison, WI MGE Environmental Affairs environment@mge.com MGE Energy Shareholder Services investor@mgeenergy.com Forward-looking statements: This report includes forward-looking statements and estimates of future performance that may differ from actual results because of uncertainties and risks encountered in day-to-day business. 2

3 Executive summary MGE is an environmental leader. We recognize our responsibility to aggressively prevent pollution, minimize waste and improve the environment. Along with that charge comes the need to balance affordable, reliable energy for customers and maintain financial strength for investors. As an industry leader and your community energy company, we are well-positioned to take on this challenge. Our careful planning and decision-making, innovative approaches and responsible management will help us continue to achieve these goals. Energy 2015 plan MGE s Energy 2015 plan is guiding our efforts to provide reliable energy and reduce emissions. We have achieved major milestones ahead of schedule that include taking steps to discontinue burning coal at Blount Generating Station, securing replacement energy, adding renewable resources, demonstrating new technologies and encouraging customers to boost conservation efforts. This early progress on Energy 2015 is expected to contribute to significantly decreased carbon dioxide (CO2) emissions. We project a 21% decrease in total CO2 emissions and a 17% decrease in CO2 rates from 2005 to Green Power Tomorrow In addition to our operations, MGE works with customers to reduce their environmental footprints. Our green pricing program, Green Power Tomorrow, has the second highest participation rate of all investor-owned utilities in the country and received the national Utility Green Power Program of the Year award in MGE, the main subsidiary of MGE Energy, is headquartered in the state capital of Madison, Wis. MGE is a community energy company dedicated to improving the environment and the quality of life for all of us who live and work here. Gary J. Wolter Chairman, President and Chief Executive Officer MGE Energy and MGE responsiblenvironment Moving forward, we will build on our momentum, look for new ways to become more sustainable and go beyond regulatory requirements when possible. We also encourage you to step up your efforts to use energy wisely and help protect the environment. Working together, we can make a difference. 3

4 Taking a proactive environmental approach MGE is dedicated to the area and its people and that means doing our part to ensure a sustainable future. Each day, we strive to go above and beyond in our efforts to balance customers needs for reliable, affordable energy with our commitment to be responsible environmental stewards. Our Environmental Management System (EMS) helps guide our efforts. We voluntarily implemented this framework, updated it in 2004 and continue to use it to enhance our environmental performance. Our EMS builds environmental accountability into our daily operations by establishing annual goals and measuring performance with audits reviewed by senior management. Meeting Energy 2015 goals early Energy 2015 is MGE s strategic, multiyear plan to ensure a balanced and reliable energy supply and to reduce emissions. Under Energy 2015, MGE s carbon dioxide (CO2) impacts are projected to decline a 21% decrease for total CO2 emissions and a 17% decrease for CO2 rates from 2005 to 2015 (see page 10). MGE is meeting the environmental goals set in the Energy 2015 plan meeting many goals earlier than planned. MGE committed to: Discontinue burning coal at Blount Generating Station by the end of Earlier this year, we switched to natural gas as the primary fuel at that facility. We are on track to discontinue coal use completely by the end of Secure energy from new cleaner coal resources. MGE owns about 100 megawatts (MW) of the Elm Road Generating Station at Oak Creek, which came online this year. This state-of-the-art plant features advanced environmental control technologies to dramatically cut air emissions. Grow wind energy capacity by five to 10 times. Today, we have 12 times the wind capacity we had in Increase energy efficiency and conservation. Efforts by customers have saved about 420,000 megawatthours of electricity since For the second consecutive year, MGE s Green Power Tomorrow program was recognized for having the second-highest participation rate of all investor-owned utilities in the country. The same study also ranks MGE #2 among investor-owned utilities nationwide in green power sales as a percentage of total electricity sold. These rankings are based on 2009 participation levels and were announced by the U.S. Department of Energy s National Renewable Energy Laboratory. 4

5 Green Power Program of the Year Award MGE received the 2009 Utility Green Power Program of the Year Award from the U.S. Department of Energy and the U.S. Environmental Protection Agency. This award recognizes MGE for expanding its wind power program by eight times and growing the number of participants who purchase the equivalent of 100% of their energy use in wind and solar power. We reached this milestone by listening to and working with our customers. MGE s Utility Green Power Program of the Year Award also recognizes that MGE has helped grow the wind energy industry through our investments and commitments. Power of working together At MGE, we take a proactive approach in helping customers save energy and become more sustainable. Making the right choices for heating and cooling commercial buildings can be complicated. That s where MGE s expertise comes into play. For example, energy improvements are making a difference at 455 Science Drive in the University Research Park. This office building, constructed about 20 years ago, had outdated and inefficient heating and air-handling systems powered by electricity. A switch to new equipment powered by natural gas increased the efficiency by about 50%. For even greater performance, MGE recommended a condensing boiler system. MGE was critical to the success of this project, said Greg Hyer, associate director at University Research Park. MGE staffers bring an unbiased third-party perspective when it comes to analysis and recommendations. They have the technical expertise to guide you through the process and help you understand exactly what your choices are and the benefits of different options, Hyer said. It s been a great partnership. 5

6 Controlling air emissions MGE meets all current, applicable environmental regulations and looks for opportunities to go beyond regulations when possible. We work to reduce air emissions by exploring new technologies, improving equipment efficiencies and diversifying our generation mix. MGE s owned electric generation units are located in Wisconsin with the exception of a wind farm in Iowa. The emissions profiled on page 7 represent MGE s generation assets as they came online, adjusted for our share of jointly owned units. Our facilities include: Blount Generating Station, Madison. Columbia Energy Center, Portage. MGE owns 22% of this power plant operated by Alliant Energy. Combustion turbines, Madison area and Marinette. Elm Road Generating Station, Oak Creek. MGE owns 8.3% of this facility operated by We Energies. Kewaunee Wind Farm, Kewaunee County. Top of Iowa III Wind Farm, Worth County, Iowa. West Campus Cogeneration Facility (WCCF), Madison. MGE owns the electric generation facilities, and UW-Madison owns the facilities related to steam heat and chilled water. Regulated emission rates MGE began receiving energy this year from the Elm Road Generating Station at Oak Creek. It is equipped with state-of-theart emission-control technology, making the plant one of the cleanest of its type worldwide. The company also purchases power through contracts and on the regional Midwest Independent Transmission System Operator energy market. Improving the performance of our generation fleet Over the last decade, MGE has steadily modernized its generation fleet to increase efficiencies and reduce air emissions. This has included state-of-the-art, new coal-fired generating units, switching some generation from coal to cleaner-burning natural gas and bringing more renewable energy online (see page 8). In 2010, we began receiving energy from the new cleaner coal generating facility at Elm Road in Oak Creek. Unit 1 came online in February, and Unit 2 is due online this fall. Electricity from this efficient, world-class plant will allow MGE to stop burning coal at its much older, less efficient Blount plant in downtown Madison. Early emission test results from Elm Road s Unit 1 show a nitrogen oxides (NOx) removal rate greater than 80% and sulfur dioxide (SO2) removal rate greater than 95%. Under our Energy 2015 plan, we made a commitment to stop burning coal at Blount by the end of Earlier this year, we switched to natural gas as the primary fuel at Blount, with coal as In 2005, we brought the West Campus Cogeneration Facility online. This 150-MW, natural gas-fired facility provides electricity to MGE customers and steam heat and chilled water air-conditioning to the UW-Madison campus. The highly efficient cogeneration operation uses the residual heat typically wasted in a standard power plant. 6

7 the secondary fuel. We are on track to discontinue the use of coal at Blount by the end of In addition, our wind energy has increased. We have 12 times the wind capacity that we had in MGE owns two wind farms and has long-term energy contracts with three different wind farms. Meeting regulations Federal and state air emission regulations continue to evolve. While MGE meets all current applicable regulations, the company closely follows new rules and developments. In July, the EPA released its proposed Transport Rule to further regulate SO2 and NOx both precursors of particulate matter. The final rule is expected in spring MGE has been working on reducing its emission rates for SO2, NOx and particulate matter through modernizing our generation fleet and adding new emission controls. By taking a proactive approach, MGE is well positioned to respond to future regulations. MGE uses an environmental risk analysis to follow regulatory issues and plan for the future. An Environmental Management System process assists us in identifying and tracking regulations to ensure compliance with measuring and reporting requirements. New state mercury rule MGE is working to reduce mercury emissions to meet a new state rule. Wisconsin s new mercury regulations call for a 40% reduction in emissions in 2010 and a 90% reduction by In 2009, MGE emitted 131 pounds of mercury down from 140 pounds in Going forward, we project more significant decreases in mercury due to modernizing our generation fleet. In Madison, Blount (when fueled by natural gas) and WCCF, which operates on natural gas, emit virtually no mercury. We also have taken action at our other main fossil-fuel plants. The coal-fired Elm Road plant was constructed with state-of-the-art mercury controls providing a mercury-removal rate greater than 90%. At the Columbia plant, which has two coal-fired 500-megawatt (MW) generating units, new mercury-reduction equipment was installed and began operating on one of the units in January of this year. Data shows mercury reduction of at least 70% from the new equipment. Columbia s co-owners have filed a request with the Public Service Commission of Wisconsin to install additional emission controls at Columbia. This request includes mercury-reduction equipment for the other 500-MW unit and equipment to further reduce SO2 emissions. Regulated emission rates Nitrogen oxides (lbs./mwh) 2.73 Sulfur dioxide (lbs./mwh) Particulate matter (lbs./mwh) Emission rates from MGE s owned generation. New mercury-reduction equipment is significantly cutting emissions at the Columbia Energy Center. 7

8 Growing renewable energy MGE continues to be an industry leader taking new steps with renewable energy. We exceed our current Renewable Portfolio Standard requirements and already surpass the 2015 requirement set by the State of Wisconsin. In 2009, MGE delivered more than 375,800 megawatt-hours of renewable energy to customers. This includes energy produced from solar, methane gas and wind. Solar MGE works to develop solar installations in the community by: Installing our own systems. MGE owns, operates, maintains or helps maintain more than 20 photovoltaic (PV) systems, including 10 systems on area high schools. Using an innovative program to encourage customer participation. MGE expanded its Clean Power Partners program to encourage homeowners and businesses to install solar PV systems and sell the energy back to MGE. Due to customer demand, we increased the amount of solar generation in the program more than three times from 300 kilowatts to 1 megawatt (MW) in The solar energy is part of MGE s overall green pricing program. MGE is nationally recognized for its wind energy efforts. The company receives more than 10% of its energy from renewable sources. PV systems are expensive to purchase and install. Clean Power Partners helps address that expense and make it more feasible for businesses and residents to invest in solar energy. Since the program began in 2008, customers have installed more than 100 solar units. As a result of these efforts, MGE recently was ranked #4 in the central U.S. region for annual total solar watts per customer by the Solar Electric Power Association. Methane gas Landfills produce methane gas, which is a greenhouse gas that is 20 times more potent than carbon dioxide (CO2). Methane would typically be burned off into the atmosphere, but it can be captured and used as fuel. Since 2001, we have purchased electricity produced by methane from a local landfill. In 2009, MGE purchased 27.5 million kilowatt-hours, which is enough electricity to power 4,200 homes for a year. MGE owns and operates solar systems to study their economic benefits and technical performance and produce clean energy for customers. 8

9 Wind energy MGE currently owns two wind farms and purchases wind power from independent projects. We have grown our wind capacity from an 11-MW wind farm that we built in 1999 to our present wind capacity of 137 MW. Part of this wind energy is mandated by state law and goes into our overall electric mix for customers. The remaining wind energy is above and beyond that mandated amount and supplies our Green Power Tomorrow program. MGE wind capacity 137 MW Green Power Tomorrow MGE challenges customers to increase their commitment to conservation with its green pricing program. We expanded Green Power Tomorrow in 2008, and by the end of 2009, the number of customers in the program increased 160%. Green Power Tomorrow gives customers the option to purchase clean energy by paying a little extra on their monthly electric bills. In 2009, Green Power participants saved more than 172,000 tons of CO2 and other air emissions. Green Power Tomorrow received the 2009 Utility Green Power Program of the Year Award from the U.S. Department of Energy and the Environmental Protection Agency. It recognizes MGE for expanding its wind power program. 11 MW Customers value renewable energy opportunities More than 200 business customers participate in Green Power Tomorrow and are featured on mge.com/marketplace. They find value in green energy: Being green is what it s all about. We want to feel better about what we do and set an example for the industry. Using green energy is a key piece of the puzzle it costs a bit more, but the positive impact it can have makes it worthwhile. --Ole Olson, Isthmus Engineering & Manufacturing Cooperative The Green Power Tomorrow program shows our dedication to our community and is a simple way for consumers to support renewable energy just by doing everyday shopping. It s a way for us to lead by example and to show that every bit of green power can make a difference. --Tim Metcalfe, Metcalfe s Market We are pleased to be part of MGE s Green Power Tomorrow program. Protecting the earth is a value we want the children to grow up with, and supporting renewable energy is a great way to help teach that lesson. --Elizabeth Strasma, Middleton Baby and Child Care 9

10 Addressing climate change MGE s Energy 2015 plan Delivering electricity and natural gas to our customers is complex and often poses challenges. We balance our responsibility for the safe and reliable delivery of energy with our responsibility to the environment. We are addressing the challenge of global climate change with our 10-year supply plan, Energy MGE voluntarily developed this plan to meet customers energy needs while reducing emissions including carbon dioxide (CO2), the most significant greenhouse gas (GHG) contributing to climate change. Energy 2015 emphasizes three ways to reduce GHG emissions: energy efficiency, renewable energy and new cleaner generation. Projected CO2 emission rate (lbs. per kilowatt-hour) MGE is committed to increasing renewable energy sources and offering innovative pricing options. Our aggressive implementation of Energy 2015 will help MGE achieve a projected 21% decrease in total CO2 emissions and a 17% decrease in CO2 rates from 2005 to These projected decreases are significantly greater than our original forecasts for reducing this GHG. With valuable input from customers, we have been able to implement Energy 2015 a plan that responsibly meets the needs of our growing community and reduces CO2 earlier than anticipated (actual) (projected) Projected CO2 emissions (in million tons) Federal regulations The Environmental Protection Agency (EPA) has begun issuing regulations to reduce GHGs. The EPA decided that the main GHGs are covered under the Clean Air Act. As a result, the EPA intends to include GHGs under environmental permitting guidelines in The EPA rules cover: Carbon dioxide. Hydrofluorocarbons. Methane. Perfluorocarbons. Nitrous oxide. Sulfur hexafluoride. The EPA also mandated a comprehensive GHG-reporting requirement (see story on page 11). Planning and analysis With uncertainty surrounding future GHG regulations, MGE applies the same careful approach and environmental risk analysis to possible future sources of GHGs that the company uses for other emissions (actual) 2015 (projected) Carbon dioxide (CO2) emissions are calculated from generating units owned by MGE, power purchase agreements and all power projected to be purchased on the regional Midwest ISO 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. 10

11 When making generation decisions, MGE s economic analysis already includes a possible projected carbon tax to help ensure its decisions are financially sound whether or not CO2 is regulated in the future. Wisconsin has a strong regulatory system that helps protect customers and utility investors. The Public Service Commission of Wisconsin makes a thorough, independent review of all investment decisions by the state s utilities. MGE s response to any future GHG regulations will fall under the purview of the commission. Should MGE incur additional costs to comply with GHG regulations, we would work with the commission to meet those regulations to be in full compliance. Developing technologies In the United States, power plants account for 41% of CO2 emissions, transportation for 33% and the remaining 26% comes from commercial, industrial and residential sources. MGE supports the development of new technologies and greater fuel efficiencies to help reduce GHGs across all sectors. In the electric generation sector, the utility industry and federal government are exploring large-scale technologies to capture and/or reduce CO2 emissions from coal-fired power plants. Energy from methane Methane is the second-largest contributor to climate change behind CO2 and is a greenhouse gas 20 times more potent than CO2. Landfills are the largest source of methane emissions in the United States, according to the EPA. When methane is captured from landfills, it can be used as a fuel to produce electricity. MGE purchases electricity generated from methane at a Dane County landfill. Since 2001, MGE has more than doubled its use of electricity from this local resource. In 2001, MGE received 12.2 million kilowatt-hours (kwh). In 2009, MGE purchased 27.5 million kwh, which is enough electricity to power 4,200 homes for a year. Voluntary actions MGE is addressing GHG emissions through voluntary actions. We project a decrease in CO2 rates and in total CO2 emissions due to our Energy 2015 plan. We will continue to monitor our environmental footprint and proposed GHG regulations so we are prepared to take additional, appropriate actions. We recognize our responsibility to aggressively control emissions, minimize impacts and improve our environment. Measuring and reporting greenhouse gases MGE has laid the groundwork to meet new federal requirements to monitor, measure, track and report annual GHG emissions. As required, MGE is prepared to report its 2010 emissions to the EPA in The new rule covers six different GHG emissions. It covers emissions from power plants that we operate, natural gas distribution and all smaller combustion such as using small engines at any of our facilities. For 2010, we will report GHGs from Blount Generating Station and the West Campus Cogeneration Facility. We already have continuous emissions monitoring in place to report power plant emissions. We also will monitor and report GHG emissions from all natural gas distribution. The EPA requires us to report how much natural gas has been supplied to customers and estimate the amount of emissions that customers have released. In addition, MGE now has further tracking and reporting systems in place to account for GHGs from all other combustion sources. 11

12 Leading voluntary efforts MGE complies with all current, applicable environmental regulations. We also seek out opportunities to exceed minimum requirements and pursue cleaner options. Environmental Cooperative Agreement MGE pledges to meet higher environmental standards at Blount Generating Station through its Environmental Cooperative Agreement with the Wisconsin Department of Natural Resources. MGE signed the original agreement in 2002 and has renewed that commitment through It includes goals to reduce waste, improve air emissions and save natural resources. ISO certification Blount recently passed its third independent ISO audit. Blount has been ISO certified since 2004 when it became the first power plant in Wisconsin to earn this certification. ISO is an internationally recognized standard for environmental management systems. Clean Air Action Days MGE is a founding member of the Dane County Clean Air Coalition a partnership of businesses, schools and government agencies working to improve air quality in Dane County. Since 2003, the coalition has worked on voluntary programs to ensure Dane County meets federal air standards. MGE and its employees participate by following company and county guidelines for improved air quality. Because transportation, energy consumption and other daily activities have a significant effect on air quality, the Dane County Clean Air Coalition asks public institutions, private businesses and residents to take: Overall pollution-reduction measures. Stepped-up measures on Clean Air Action Days when higher levels of air emissions are expected. MGE has committed to a variety of operational measures and offers an employee incentive program to encourage carpooling and alternate transportation. Blount maintains its superior environmental performance by following a permanent framework of annual goals and continuous environmental improvements. Reduce and recycle MGE is committed to reducing mercury use and emissions throughout its company operations (see page 7) and in equipment. MGE was the first utility in the nation to install mercury-free encoders in meters on customers businesses and homes. The meter manufacturer developed the mercury-free encoders at the urging of MGE. MGE offers a thermostat-recycling program. Customers can drop off mercury thermostats at MGE, which we recycle to ensure the mercury does not enter the waste stream. We have recycled more than 240 thermostats and more than 2.13 pounds of mercury. 12

13 Vehicle idling policy MGE implemented a new vehicle idling policy that directs employees to turn off company vehicles and equipment when 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. Prairie restoration MGE participates in a prairie restoration effort with the City of Madison and Wisconsin & Southern Railroad. The project includes establishing prairie plantings along the Capital City Trail and railroad tracks from South Blair Street to South Ingersoll Street in Madison. The first phase of the project involved removing undesirable plants and turf areas and then reseeding those areas. A controlled prairie burn and additional seeding took place this year. A team of MGE employees developed the vehicle idling policy, which is tailored to MGE s operations. It limits idling to no more than five minutes per hour under most circumstances. Prairie restoration increases plant diversity, which attracts native, beneficial insects and other wildlife. Increased plant diversity provides more nutrients to the soil than monoculture plantings such as turf grass. In addition, prairie grasses have deeper root systems, which aid in water infiltration and retention. They also cut down on surface water runoff and erosion, which can be a problem in urban areas. Pollutants that run off into prairie plantings are removed before water enters groundwater or lakes and streams. Prairie grasses also eliminate or reduce reliance on mowing, which decreases fossil fuel use and associated air pollution. Adopt-a-Highway MGE participates in Wisconsin s Adopt-a-Highway program. Volunteers pick up litter along a two-mile stretch of state highway. This annual project is part of MGE s commitment to the environment. MGE monitored a controlled prairie burn this spring as part of its restoration project. 13

14 Enhancing operations MGE continues to green up its operations with environmentally friendly improvements to its facilities and transportation fleet. Facility improvements A major energy efficiency/sustainability project that began in 2009 is yielding significant results. MGE has been upgrading lighting and equipment ranging from its offices to its fleet garage. Improvements at MGE s General Office Facility already have saved 50,000 kilowatt-hours of electricity. This includes upgrading the building automation and lighting systems. Lighting upgrades included retrofitting numerous lights and controls, removing unneeded units and installing occupancy sensors. Projects at other company buildings have cut energy use by up to 26%. These efforts include lighting upgrades and occupancy sensor installations. Additional projects are under way across the company including heating/cooling upgrades, air handler improvements and control upgrades. Transportation Hybrid utility trucks: MGE added two hybrid line-and-pole trucks to its fleet this year. Typical bucket trucks require power from an idling engine to operate an aerial lift. With MGE s new trucks, a hybrid component operates the aerial lift bucket. A vehicle that can operate its bucket mechanism without idling wastes no fuel and emits no pollutants. MGE uses 100% renewable energy for its General Office Facility. This has prevented more than 7.3 million pounds of carbon dioxide emissions and saved more than 2.5 million pounds of coal. MGE is testing 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 smog-forming pollutants. Electric Facilities vehicle: MGE s Facilities department uses a small but rugged electric vehicle that has a half-ton hauling capacity and can travel 30 to 40 miles between charges. Passenger-vehicle hybrids: MGE s hybrid fleet includes more than 20 passenger vehicles: 18 Ford Escape hybrids. One Ford Escape plug-in hybrid. One Toyota Prius plug-in hybrid. One Chevrolet Silverado hybrid truck. MGE began testing commercially available hybrid electric vehicles for various fleet operations in The Ford Escapes are When properly charged, a hybrid bucket truck can operate its 65-foot aerial lift with little or no engine idling. 14

15 used for meter reading and other light-duty functions. The Toyota Prius features an automated device that monitors fuel efficiency, engine function and more. It communicates directly with the federal Idaho National Laboratory as part of a larger, nationwide study to learn more about plug-in technology. MGE s plug-in hybrid vehicle is charged by plugging into a standard household electrical outlet. Other alternative fuels: MGE has a history of testing alternativefueled vehicles in its fleet. This includes compressed natural gas and biodiesel. Today, 100 trucks and off-road equipment powered by ultra low sulfur biodiesel help reduce air emissions and reliance on imported oil. Our Green Team At MGE, every employee is a member of the MGE Green Team and has a responsibility to the environment while at work. Employees understand their individual actions in day-to-day operations can improve our environment. MGE s Green Team Leaders represent departments across the company. Working with our Environmental Affairs department, Green Team Leaders meet regularly and work to ensure compliance with regulations and our Environmental Management System. Their achievements include: Employee actions MGE encourages employees to take actions to reduce their impact on the environment at work and at home. Our Environmental Times, published semiannually, provides information on company projects and at-home resources for employees. MGE s Green Team Leaders spearhead many company efforts. They have sponsored an energy awareness education month, provided information on at-home energy hogs, distributed free compact fluorescent bulbs to employees and offered employees an opportunity to see how much energy can be saved by switching from traditional holiday lighting to energy-efficient LED (light-emitting diode) options. Earlier this year, a team of MGE employees took the initiative and began a wood recycling program. A designated dumpster is available for employees and contractors who handle wood waste pallets, shipping crates and plywood. Through this pilot program, wood waste is sent to a local company that shreds it for landscaping mulch. Overseeing and enforcing MGE s environmental policies. This includes setting new policies and changing procedures as needed. Developing educational materials and displays. Tracking the impact of employees who participate in Clean Air Action Days and offering incentives to those who use alternative transportation. 15

16 Testing technology MGE has a solid track record of developing technology demonstration projects to learn about renewable energy sources and ways to help our environment. Solar projects State Capitol: MGE purchased and installed 48 solar photovoltaic panels on the west wing roof of the state Capitol. The 10-kilowatt system is about twice the size of a typical residential solar system. The power generated feeds into MGE s electric grid. This demonstration project prevents 12 tons of carbon dioxide emissions annually. Madison Children s Museum: MGE recently installed a solar demonstration project on the rooftop garden of the new Madison Children s Museum (MCM). It includes 14 flexible laminate panels that are applied directly to the roof. This solar system will produce about 1,600 kilowatt-hours of electricity annually. Museum visitors can check out the system inverter that takes DC power from the solar system and makes AC power for the electric grid. MGE will monitor, test and maintain this solar system. Live data reporting is available at mge.com for MGE s solar demonstration projects, including the one installed at the state Capitol. MGE is working with MCM to develop a future educational component to this effort. It may include renewable energy workshops for children and sessions for teachers. LED/solar lighting demonstration: MGE recently provided solarpowered lights along a pathway in Madison s Thut Park. The system features 2-foot by 3.5-foot solar panels that sit atop five light poles. Four of the lights are located along the path and a fifth sits at the edge of the park to help light a dark area of the neighborhood. During the day, the solar units take sunlight, convert it to electricity and store it in a battery. At night, that electricity is used to turn on the new, energy-efficient LED (light-emitting diode) lights. The lights stay on at 100% for five hours after sundown and then dim to 25%. Two hours before sunrise, the LEDs ramp up to 100% and stay lit until the sun comes up. Solar-powered high-efficiency LED lights from MGE provide light along a pathway in Madison s Thut Park. 16

17 Stormwater filtration system MGE s parking lot is home to an innovative 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 learned it reduced these pollutants: Petroleum compounds by 48%. Solids by 32%. Sediment by 39%. Copper by 23%. Phosphorus by 36%. Zinc by 8%. One of the first installations of its kind in the state, the system features replaceable cartridges in a concrete vault that trap litter and sediment particles, filter out pollutants and collect the treated flow for discharge. Electric vehicle charging stations As a leader in developing an infrastructure for electric vehicles, MGE is installing a public network of 24 charging stations in its service territory. MGE had plans to install six electric vehicle stations when the company received a federal stimulus grant to expand the program. The grant will help fund 18 additional charging stations. The project also will include 25 inhome advanced meters for plug-in electric vehicles. MGE is recruiting customers with electric vehicles to participate in this research demonstration project. The information MGE gathers from this project will help us learn how consumers are using this new technology and help us plan to support the future energy needs of electric vehicle use in our area. Urban turbine A public park in Fitchburg is home to MGE s 10-kilowatt urban turbine, which is one of only a few urban turbines in the nation. It is comprised of a 12-foot rotating helix that sits on a 30-foot pole. The helix spins on its vertical axis in the wind to power an electric generator. The use of electric vehicles will eventually impact electric utilities and the infrastructure to provide electricity to customers. The auto industry is introducing its first mass-produced plug-in electric vehicles to American consumers this year. MGE is testing the feasibility of using an urban turbine to provide renewable energy for customers. This particular turbine has shown poor performance. MGE plans to replace it with a new vertical turbine to test its energy output. Repeated testing and documentation are important components of MGE s technology demonstration program. 17

18 Working with our customers As a community energy company, MGE is committed to working with customers providing information to help them take charge of their energy use and make wise choices about conservation. These efforts include energy efficiency education programs, training opportunities, construction and remodeling advice, conservation ads and other strategic outreach initiatives. Since 1987, MGE s proactive measures have helped customers save: More than 46,522,000 therms of natural gas. Nearly 597,000 megawatt-hours of electricity. This is enough electricity to power more than 90,000 homes for one year. Watch Green View online Customers and visitors to mge.com can tune in to our Green View Web channel to learn a myriad of information about eco-friendly living and steps MGE is taking for a greener tomorrow. Green View, now in its second year, covers a range of stories from climbing to the top of a 265-foot wind turbine tower to how MGE teaches students about energy and the environment through the MaGicEnergy show. About 10% of MGE s customers participate in our Green Power Tomorrow program by paying a little extra on their monthly bill for renewable energy. Green View was developed to keep them informed about the positive effect their participation makes. Green View also educates people on how energy choices help the environment and steps they can take for a greener tomorrow. MGE offers energy-saving ideas to seniors at a community event this year. CO2gether.org MGE established CO2gether.org to give customers tools they need to reduce their carbon footprint and save energy. This innovative Web site allows our customers to measure, track and manage the carbon dioxide emitted from their energy use. CO2gether.org automatically links MGE customers to their energy use. Through the Web site, customers can collaborate and learn from each other. MGE developed this resource in cooperation with 1000 Friends of Wisconsin and the University of Wisconsin- Madison Center for Sustainability and the Global Environment. Visit mge.com/greenview. Online billing MGE offers customers a greener way to receive and pay their utility bills. Online billing is a simple, effective way to save paper and protect the environment. Since we launched online billing in 2003, customers have paid 1.2 million bills online. What does that mean for the environment? A savings of paper and the water and energy used to produce the paper. In 2009, our customers who pay their bills online saved 251,400 gallons of water and 9,312 kilowatt-hours of energy. 18

19 Sixteen neighborhoods across MGE s service territory participated in the Green Power Challenge. These neighborhoods include 22,000 residential households and 2,200 businesses. Engaging neighborhoods MGE held a Green Power Challenge for Madison neighborhood associations. The goal was for each association to encourage residents and businesses in their neighborhood to go beyond current levels of green power participation. The two neighborhoods with the greatest increase in green power participation over the nine-month contest period received cash prizes. This challenge created an opportunity to reach many people and encourage them to make smart choices about energy. It also allowed MGE to strengthen relationships with the 16 participating neighborhoods. Several neighborhood associations took a proactive approach by distributing green power materials at community events, signing up people at community meetings and making plans to go door to door to encourage participation. Earth Day education MGE took part in several events this spring to help celebrate the 40th anniversary of Earth Day and teach community members about reducing their environmental footprint. MGE set up displays, made presentations and sponsored an educational newspaper insert. We also launched a Web site section: Earth Day Every Day at mge.com/earthday. This resource features learning activities for children, an Earth Day quiz, information on renewable energy and energy-saving tips that can be practiced year-round. MGE discussed renewable energy with children and adults and answered visitor questions about conservation during tours of MGE s solar trailer at an Earth Day celebration in Madison. 19

20 MGE s Green Team Our Green Team Leaders help MGE incorporate environmental principles across the company. Green Team Leaders include (left to right) Tim Gleiter, Substations; Jeff Marcouiller, Energy Production; Daryl Hilsendager, Meter and Connection; Laura Coleman, Safety and Environmental Affairs; Song Ge, Internal Audit; Steve Beversdorf, Gas Systems Engineering; Jean Stephens, Environmental Compliance in Electric Transmission and Distribution; and Jeanne Burns-Frank, Safety and Environmental Affairs. MGE s Environmental Policy Reduce impacts Exceed compliance Educate employees Improve continuously Communicate and work with others Madison Gas and Electric Company P.O. Box 1231 Madison, WI