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Progress Energy

Don CookeLead Environmental Specialist

don.cooke@pgnmail.com

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Progress Energy www.progress-energy.com

2.8 million customers 23,000+ MW’s 72,000 primary miles of

distribution lines 9,800 miles of

transmission lines 15,300 employees $24 billion assets $8 billion revenues Fortune 250 company

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Generating electricity

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How electricity gets to your house

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Fuel mixture

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1970 1980 1990 2000

Economic Growth Trends

Source: EPA Trends Report for 2000

US Gross Domestic Product Increased 158%

Vehicle Miles Traveled Increased 143%

Energy Consumption Increased 45%

US Population Increased 36%

Aggregate Emissions Decreased 29% (Six Principal Pollutants)

Comparison of Growth Areas and Emission Trends

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Issues electric utilities are currently following…

Air – NOx, SOx, PM2.5, mercury, NSR, Clear Skies Initiative, Clean Smokestacks (NC), etc.

New Energy Policy – 2004 The Blackout of 2003 Alternative energy - “Green” power; fuel

cells; etc. Synfuel tax credit; EMF;……?

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Energy Delivery

Environmental Awareness

Level II

Energy Delivery

2003 Environmental Training

For Facility Contacts

Eastern Region2003 Environmental Training

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ENVIRONMENTAL MANAGEMENT SYSTEM

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Accountability For Environmental Performance

To ensure that accountability for environmental performance is clearly defined at all levels of the organization.

Ensures involvement/interest of management and other personnel whose actions most directly affect environmental performance.

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Environmental Audits

Level I - Self-Assessments Level II - Compliance Audits &

Unannounced Compliance Inspections Level III - Management/Programmatic

Audits Level IV - Performance/Practices

Review Environmental Audits - External

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Environmental Awareness Program & Environmental Guidance Document

Level I - video Level II - provides

specific environmental information primarily to line organizations

Environmental Guidance Document - on Intranet

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Environmental Index

Scale 0 - 5 Monitors and

measures environmental performance

Corporate incentive goal - cash and stock compensation

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2003 Environmental GoalComponent 1

Oil Spills

The following is not considered a spill against the Index:

a) less than 5 gallons of oil spilled to land;

b) any oil spill caused by an “Act of God” (storms, etc.);

c) any oil spill caused by a “Third Party”;

d) any oil spill caused by minor fault operations of electrical equipment;

e) a spill (excluding human error or negligence) that occurs on CP&Lproperty with controlled access and no potential involvement for waters of the state.

Index Score

0 1 2 3 Goal:4 Stretch: 5

# of Spills

>38 <38 <30 <22 <14 <10

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Observe / Report Potential Leaking Equipment

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Observe / Report Potential Leaking Equipment

Rusted Padmounts Padmounts Installed Below Grade

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2003 Environmental GoalComponent 2

Environmental TrainingPGN ED Environmental Coordinators will provide a targeted Environmental training program for each Distribution Region and the Transmission Department. New linemen will continue to receive Environmental Awareness Level I and Level II as part of the Craft Training Program.

(One point is awarded for completion of the training for each Region and for Transmission.)

IndexScore

0 1 2 3 Goal:4 Stretch:5

TargetedEnv.

Training

<31 > 31 >36 >41 46 >47

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2003 Environmental GoalComponent 3

Non-PCB InitiativePGN Ed will develop and implement a program to remove from service transformers less than 10 kVA in size with a “P” in the serial number. This program will be designed to remove all of these targeted transfomers by the end of 2006. A risk-based approach will be utilized to customize the program for each Distribution Region.The program and annual targets will be implemented in each region during 2002.

The Transmission Dept. will test and/or replace station service transformers in Transmission substations, as outages permit, to ensure all are non-PCB.

IndexScore

0 1 2 3 Goal: 4 Stretch: 5

Non-PCBInitiative

(% Target)

<85 >85 >90 >95 100 >105

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2003 Environmental GoalComponent 4

Self Assessment Peer ReviewsThis goal is intended to improve the environmental self-assessment program by implementing a peer review process. Each peer review assessment team will consist of the site environmental contact and the region/area environmental coordinator accompanied by peers from other regions and/or other departments.. At least one peer review will be conducted for Energy Services functions

Index Score 0 1 2 3 Goal: 4 Stretch: 5

Self-Assessment

PeerReviews

0-3 4-7 8-11 12-15 16-19 >20

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PGN’s Environmental Policy

Progress Energy, Inc. Environmental PolicyEnvironmental responsibility is a core value of Progress Energy. Progress Energy is committed to excellence in its environmental practices and performance, and acknowledges its responsibility to be a good steward of the natural resources entrusted to its management. Environmental factors will be an integral part of planning, design, construction and operationaldecisions. Further, Progress Energy shall:

• Comply with local, state and federal environmental laws and regulations;• Maintain an environmental management system, including the use of objectives and goals to measure, track, drive and continually improve performance;• Ensure proper management of all wastes and pollutants;

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PGN’s Environmental Policy

Be proactive in addressing environmental issues and in finding innovative solutions to protect and improve the environment;

Be vigilant in efforts to prevent environmental degradation and be prepared to act effectively in the event of an environmental emergency;

Ensure that employees and contractors are aware of this policy through communication, training, performance expectations and management accountability; and

Communicate environmental impacts and performance to stakeholders and support effective community efforts in environmental education, protection and conservation.

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AIR

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Open Burning

Generally, open burning of refuse and wastes is prohibited.

State and regional regulatory agencies do allow certain types of open burning (such as for land clearing)

Must have prior approval from regulatory agencies.

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WATER

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NC >1 acre of land disturbance must have an approved

erosion control plan.

SC <2 acres of land disturbance must have an erosion

control plan submitted. >2 acres must have approved plan. certain T&D maintenance and construction activities

are exempted subject to compliance with a Policy & Procedures manual filed with SC Public Service Commission.

Sedimentation & Erosion Control

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Sedimentation & Erosion Control

Land Disturbance

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Sedimentation & Erosion Control

Engineering Controls

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Sedimentation & Erosion Control

Silt Fence

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Sedimentation & Erosion Control

Temporary Gravel Construction Entrance / Exit

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Wetlands

Hydrology + Soil + Vegetation Dredging, ditching, filling, operation of

heavy equipment, and the construction of roads or power lines which may impact rivers, lakes, streams, wetlands, and estuarine areas are regulated.

Permits - Nationwide, Individual If wetlands are avoided, no permit is

required.

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Hydrology

Water within 12 inches of surface

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Hydric Soil

Note color change at about 6 inches

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Hydrophytic Vegetation

Pitcher PlantSphagnum Moss

Creeping Blueberry

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WetlandsWhy are they important?

Improve water quality - filter

Enhance water quantity - act as sponge

Provide habitat for fish and wildlife

Transmission Line ROW

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River Basin Riparian Rules

Neuse River Basin Tar-Pamlico River Basin Protected zones

Zone 1 - a 30’ wide area measured perpendicular to the stream

Zone 2 - a 20’ wide area starting at the edge of Zone 1 and measured perpendicular to the stream

Special 10’ zone adjacent to the stream No structures (poles) allowed Special vegetation management required

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River Basin Riparian Rules

Underground and Overhead activities in Zone 2 require no special measures (parallel to stream)

Overhead activities in Zone 1 for ROW width of <150 ft., follow Best Management

Practices (BMP) for ROW width of >150 ft., plans must be approved by

State Underground activities in Zone 1 (crossing or parallel)

for ROW width of <40 ft., follow BMP for ROW width of >40 ft., plans must be approved by

State

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PROTECTING NATURAL RESOURCES

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Endangered & Threatened Species

Red-Cockaded Woodpecker

Bald Eagle

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Endangered & Threatened Species

Michaux’s Sumac(endangered)

Cooley’s Meadowrue(endangered)

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Endangered SpeciesCase Study

On June 14, 1999 PGN employees changed out a pole adjacent to a Red-Cockaded Woodpecker nesting tree while replacing lighting for a college parking lot.

An unidentified observer called US Fish & Wildlife to complain that PGN activities were interfering with the feeding of Red-Cockaded Woodpecker fledglings by an adult bird.

PGN employees were unaware of the endangered species site or the complaint to US Fish & Wildlife.

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Endangered SpeciesCase Study

A US Fish & Wildlife employee inspected the nesting site the next day in response to the complaint.

The inspector requested that PGN delay activities at the pole adjacent to the active nest until the fledglings matured (approximately 8 days).

The inspector stated that other PGN work in the area would not disturb the red-cockaded woodpeckers.

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Light Pole & Active Nest

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Close Up of Nest Cavity

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The Nest Tree was Marked With the Sign and Tag Below

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Adult Bird Feeding Fledglings

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Lessons Learned

This tree was marked on the opposite side of the nest cavity.

If the wildlife agency is contacted and provided the tag # of the nest site or other information on the location, they will advise on allowable work activities.

Endangered Species can be found in Urban Areas.

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Lessons Learned

Regulatory agencies must investigate complaints. Don’t rely on the customer to advise you of

endangered species activities. Customer knew about the nest but failed to inform

PGN personnel. Contact your Environmental Coordinator if you

encounter or suspect endangered species activity at a work site.

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Endangered Plant Sign

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Migratory Birds

3 species not protected pigeon starling english sparrow.

Permits are required to: relocate active nests. remove inactive nests.

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Pesticides/Herbicides

General Use Pesticides Restricted Use Pesticides NC - have a valid Public Operators license or

work under the supervision of an employee with a valid license.

Follow all label directions. Store pesticides properly.

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Herbicides - ROW Spraying

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No Herbicides Sign

Vegetation Management

Information Line

1-888-201-2229

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SOLID & HAZARDOUS WASTE

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Asbestos

Any structure to be renovated or demolished must be inspected for the presence of asbestos.

Keep records of asbestos removal in environmental files at facility.

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Emergency Planning and Community Right-to-Know (EPCRA)

Extremely Hazardous Substances (500 lbs or TPQ, whichever is less)

Hazardous Substances (10,000 lbs) Emergency Planning Release Reporting Community Right-to-Know - Tier II Toxics Release Inventory (TRI)

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Emergency Planning andCommunity Right-to-Know (EPCRA)

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Hazardous Substance Spill Notification

RQ - reportable quantity. Chemical spills - contact

Environmental Services immediately.

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Hazardous Waste Management

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Universal Hazardous Wastes

Lamps Fluorescent Street lamps (all types)

Batteries Nickel Cadmium (NiCad) Lead Acid Lithium

*Containers must be labeled (Universal Waste-Lamps; Universal Waste - Batteries) and labels must include date when first lamp or battery was placed in container.

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Housekeeping

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Oil Spills

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Oil Sheen on Water

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Oil Spills

Stop leak, contain spill. Oil spill cleanup material on truck?

Call your environmental coordinator - Spill must be reported.

Remove and properly dispose of contaminated materials.

Label drums and include spill number on transport card.

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Absorbent Pads

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Containment & Absorbent Booms

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Aggregate total of > 1320 gallons of oil storage capacity. Applies to containers 55 gallon or greater

containers. Oil discharges into or upon navigable

waters of the United States. Plan must be certified by a Registered

Professional Engineer.

Spill Prevention Control and Countermeasure (SPCC) Plans

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Plans require employee training. Transmission plans for each substation

located in control panel. Prevent oil from leaving the site.

SPCC Plans

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SPCC Plans

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SPCC Plans

Oil/Water Separator

Concrete Containment

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SPCC Plans

Earthen Berm

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SPCC PlansMobile 230 kV Substation

Note: Portable Containment System

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Non-PCB (less than 50 ppm) PCB contaminated (50 to <500 ppm) PCB (500 ppm or greater) Container labeling Spill Response Record keeping requirements

Polychlorinated Biphenyls (PCBs)

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High Probability PCB5 kVA Transformer

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PCB (>500 ppm) Spill Cleanup

Spill from 5 kVA Transformer

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High Contact SurfaceOil Stained Door

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Solid Waste must not be disposed or buried in an unpermitted area.

Liquid wastes cannot be placed in dumpster.

It is illegal to dispose of aluminum cans in landfill (NC).

Reduce generation of solid waste.

Solid Waste / Waste Minimization

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Solid Waste - Used Poles

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Containers must be labeled “Used Oil”. Must determine PCB content (Chlor-N-Oil kit)

and label accordingly. Must determine halogen content (Chlor-D-

Tect kit). Cannot transport more than 55 gallons of

“Used Oil” unless registered with EPA as Used Oil Transporter.

Used Oil Transport & Delivery Record.

Used Oil