1. Overview of Environmental Performance
of Power Plants in Texas
May 2010
Legislative advertising paid for by: John W. Fainter, Jr. • President and CEO Association of Electric Companies of Texas, Inc.
1005 Congress, Suite 600 • Austin, TX 78701 • phone 512-474-6725 • fax 512-474-9670 • www.aect.net

2. AECT Principles
• AECT is an advocacy group composed of member companies committed to:
- Ensuring a modern, reliable infrastructure for the supply & delivery of
electricity.
- Supporting efficient competitive markets that are fair to customers and
market participants.
- Supporting consistent and predictable oversight and regulation that will
promote investment and ensure the stability of Texas’ electric industry.
- Promoting an economically strong and environmentally healthy future for
Texas, including conservation and efficient use of available resources.
• AECT member companies remain dedicated to providing Texas customers with
reliable service and are committed to the highest standards of integrity.
The Association of Electric Companies of Texas, Inc. (AECT) is a trade organization of investor-
owned electric companies in Texas. Organized in 1978, AECT provides a forum for member
company representatives to exchange information about public policy, and to communicate with
government officials and the public. For more information, visit www.aect.net.
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3. CO2 Emissions in
Context of Texas’ Economy
A common refrain is that CO2 emissions generated in Texas are higher than in
other states. However, it is critical to view that in the context of other truths:
− Texas generates more electricity than any other state; in fact, Texas produces almost
80% more electricity than the next most generating state.1
− Much of the CO2 emitted in Texas results from the generation of “products” that are
very significant to our state and nation. For example, Texas produces about:
− 60% of petrochemicals produced in the U.S.
− 30% of gasoline and diesel refined in the U.S.
− 10% of electricity generated in the U.S.
− The dollars of gross product produced in Texas per ton of CO2 emitted is high, and it
increased by more than 1000% between 1963 and 2001.
− The ratio of the amount of CO2 emitted per MWh of electricity generated in Texas is
lower than half of the states that have more than a nominal amount of coal-fired or oil-
fired electricity generation (see previous slide).
1
3
Source: EIA, 2008 State Electricity Profiles

4. Technical Feasibility of
CO2 Reductions
Technology EIA 2008 Reference Target
Efficiency Load Growth ~ +1.05%/yr Load Growth ~ +0.75%/yr
Renewables 55 GWe by 2030 100 GWe by 2030
Nuclear
15 GWe by 2030 64 GWe by 2030
Generation
No Heat Rate Improvement 1-3% Heat Rate Improvement
Advanced Coal for Existing Plants for 130 GWe Existing Plants
Generation 40% New Plant Efficiency 46% New Plant Efficiency
by 2020–2030 by 2020; 49% in 2030
CCS None Widely Deployed After 2020
10% of New Light-Duty Vehicle
PHEV None
Sales by 2017; 33% by 2030
DER < 0.1% of Base Load in 2030 5% of Base Load in 2030
Chart Source: EEI and EIA
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5. Texas Is Already Leading the Way
in Clean Power Plants
Texas has the largest emissions of any state since
it produces ~80% more power than the next ranked state.
0.247
0.395 OK 0.223
NM AR
0.156
0.103 LA
TX
2008 NOx Emission
Rate Averages
Area (lbs/mmBtu)
National 0.222
Over 80% of the fossil-fueled
electricity produced in Texas Texas 0.103
comes from East Texas.
Source: EPA Clean Air Markets Division – 2008 Acid Rain Program Data 5

6. Electric Generator-
NOx Reductions Achieved Under
TCEQ 1-hr Ozone SIP Rules
– HGA SIP- 86% overall reduction from 1997
– DFW SIP- 88% overall reduction from 1997
– Beaumont SIP- 45% reduction from 1997
– East Texas SIP- 51% reduction from 1997
Between 2000 and 2005, electric generating
companies in Texas spent over $1 billion on NOx
emission reductions alone.
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7. Texas’ Electric Generating
Plants Among Lowest NOx
Emitters in the Nation
NOx
0.800
0.700
Texas has the 9th
lowest average NOx
0.600
emissions rate.
NOx (lb/MMBtu)
0.500
0.400
0.300
U.S. Average-
0.222 lb/mmBtu
0.200
0.100
0.000
NJ
ND
NE
OH
UT
IN
TN
IL
FL
NY
NH
NM
MN
WI
WY
DE
SD
KY
PA
MI
MT
MD
OK
AL
MS
MO
WV
GA
IA
LA
NC
VT
WA
NV
OR
TX
MA
ME
RI
ID
KS
CO
DC
VA
AR
AZ
SC
CT
CA
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Source: EPA Clean Air Markets Division – 2008 Acid Rain Program Data

8. Average Emissions Rates of NOx from
Existing Texas and U.S. Power Plants
NOx (lb/MMBtu)
Notes:
NOx Emission Rates for New Coal-Fired Power Plants range from 0.05 to 0.08 pounds per million Btu
NOx Emission Rates for New Gas-Fired Power Plants are approx. 0.015 pounds per million Btu
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Source: EPA Clean Air Markets Division – 2008 Acid Rain Program Data

9. Texas’ Electric Generating
Plants Among Lowest SO2
Emitters in the Nation
SO2 Rank
1.800
1.600
Texas has the 19th
1.400
lowest average SO2
emissions rate.
SO2 (lb/MMBtu)
1.200
1.000
0.800
U.S. Average-
0.564 lb/mmBtu
0.600
0.400
0.200
0.000
NJ
OH
IN
ND
NH
TN
NE
IL
FL
NY
UT
MN
NM
WI
DE
WY
MD
PA
GA
MI
AL
WV
KY
MO
SD
NC
IA
MS
MA
TX
OK
LA
MT
OR
NV
ME
WA
VT
RI
ID
VA
SC
DC
KS
AR
CO
AZ
CT
CA
9
Source: EPA Clean Air Markets Division – 2008 Acid Rain Program Data

10. Average Emission Rates of Sulfur
Dioxide from Existing Texas and
U.S. Power Plants
SO2 (lb/MMBtu)
10
Source: EPA Clean Air Markets Division – 2008 Acid Rain Program Data

11. 1995-2008 Emission Rate Trends
Sulfur Dioxide Nitrogen Oxides
(SO2) (NOx)
lb./mmBtu lb./mmBtu
Year Nation Texas Nation Texas
1995 1.086 0.517 0.551 0.313
1996 1.096 0.527 0.518 0.314
1997 1.093 0.523 0.509 0.310
1998 1.058 0.485 0.481 0.307
1999 0.999 0.481 0.440 0.286
2000 0.875 0.380 0.399 0.261
2001 0.843 0.385 0.373 0.221
2002 0.794 0.384 0.348 0.173
2003 0.815 0.390 0.320 0.142
2004 0.779 0.353 0.286 0.124
2005 0.753 0.349 0.268 0.116
2006 0.702 0.338 0.255 0.111
2007 0.644 0.321 0.237 0.103
2008 0.564 0.316 0.222 0.103
1995 - 2002 data are from the Acid Rain Program Scorecard Table B1
2003 - 2006 data are from the Clean Air Markets Division database for the Acid Rain Program 11

12. Additional
Emission Reductions
 Federal Clean Air Interstate Rules (CAIR)
− Requires additional NOx and SO2 emissions reductions from power plants in
2009, 2010, and again in 2015, with a cap and trade program.
− The NOx and SO2 emissions from all new units must “fit” under the 2009, 2010,
and 2015 caps; such emissions are not in addition to those caps.
− TCEQ has recently revised its rules to implement CAIR.
 Regional Haze
− Requires reductions in NOx, SO2, and Particulate Matter (PM) emissions based
on best available retrofit technology (BART) for different types of facilities,
including electric generating units, industrial boilers, and refineries.
− EPA has decided that NOx and SO2 emissions reductions made for CAIR will
suffice for the NOx and SO2 emissions reduction requirements under Regional
Haze.
− The TCEQ is developing rules to implement BART.
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13. Giving Back to the
Environment
• AECT member companies help to improve our environment through stewardship,
support for new technologies and partnership with other agencies.
Environmental Stewardship Environmental Partnerships
- Reducing releases of chlorofluorocarbons from
- Climate Challenge Program
electrical equipment - Energy Star
- Recycling coal combustion products - Energy Smart Schools
- Educating schools and communities about - Environment Research Program
renewable energy
- Designating land and reservoirs for public - EPA SF6 Partnership program
recreational use - Mickey Leland Internship Program
- Preserving and restoring forests by planting -TCEQ Teaching Environmental Science
millions of trees - Green Lights
- Helping other industries adopt pollution- - Habitat Protection
prevention plans - Learning From Light!
- Launching education campaigns to help - Millennium Council
communities save energy - Million Solar Roofs
- Creating wetlands and wildlife habitats on - National Energy Education Development
company properties (NEED) Project
- Natural Gas Star
- Reclaimed water utilization
- Offering renewable energy products to retail
customers
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14. Selected Environmental
Programs and Fees
• The electric industry is among the most heavily regulated in the nation, complying
with hundreds of regulations and paying millions of dollars in fees annually.
Selected Current Selected Current
Environmental Programs Environmental Fees
- Compliance with National Ambient Air Quality - Title V federal operating permit fees
Standards - Air inspection fees
- State Implementation Plan - Air quality permit fees
- NOx reductions for electric generating units - Air quality permit renewal fees
- Clean Air Interstate/Clean Air Mercury Rules - Wastewater inspection fees
- New Source Review (NSR) - Wastewater permit application fees
Prevention of Significant Deterioration - Water quality fees
- Non-attainment NSR, including offset - Potable water fees
- State Minor NSR - Water use permit application fees
- Title V and Acid rain permits - Hazardous waste generation fees
- Compliance Assurance Monitoring - Non-hazardous waste fees
- Continuous Emissions Monitoring Systems - Low level radioactive waste fee
- Toxic Release Inventory - Injection well fee
- Monitoring cooling water
- Mass Emission Cap and Trade Program
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15. Q&A
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