Environmental Leadership The Pursuit of Cleaner Air A Presentation to the DENR/DAQ Mercury and CO2 Workshop Ben White April 20, 2004

Agenda Overview of Progress Energy Progress Energy’s Innovative Solutions for NOx Reduction Progress Energy’s activities pursuant to the Clean Smokestacks Act

Progress Energy at a Glance Super-regional energy company with over 23,000 megawatts of generation capacity Among the nation’s top ten utilities when ranked by generation capacity Employees: approximately 16,000 Customers: 2.8 million electric customers in North and South Carolina and Florida

Progress Energy at a Glance 39.7% coal, 38.2% natural gas/oil, 20.9% nuclear, 1.1% hydro Service Territories 34,000 square miles in the Carolinas 20,033 square miles in central Florida Electric Customers Progress Energy Carolinas -1.3 million Progress Energy Florida -1.5 million 38 plant sites 2002 Generation Capability (MWs)

Air Pollutant Formation NOX O3 SO4 NO3 OC VOC SO2 NOX VOC NOX VOC VOC NOX NH3 PM2.5

2007 Triangle Area NOx Emissions (Projected) From Greater Triangle Regional Council Air Quality Report 2000 total NOx, Triangle area: 474.25 tons per day Average summer weekday 2007 total NOx, Triangle area: 216.14 tons per day Average summer weekday

Evolution of PGN NOx Control Technology Installations 1993 – 1999 Traditional approach (LNB/OFA) 1997 - 1999 WIR installations 1999 - 2000 1st ROFA installation 1999 - 2000 AEFLGR installation 2000 - 2001 1st ROFA/Rotamix installation 1999 - 2001 1st SCR installation 2002 - 2006 5 additional SCR’s in service Change fuels Natural gas vs. coal Reduce NOx formed during combustion Low NOx burners Underfire air Overfire air Remove NOx after it is produced Selective non-catalytic reduction(SNCR) Selective catalytic reduction(SCR)

Progress Energy NOx Reduction Leadership Searched worldwide for emissions reduction technologies Sweden – ROFA technology. Reduced NOx emissions by more than 50% at Cape Fear Plant. Eastern Europe – WIR technology. Reduced NOx emissions by 35 to 40 percent at Weatherspoon and Lee plants. First utility in the world to apply these controls Selective Catalytic Reduction (SCR) First SCR in North Carolina - Roxboro Unit 4 Three SCR’s in-service in Person County on May 1, 2003 - one year ahead of compliance requirements

NC Annual and Ozone Season NOX Emissions Actual Projected 77% reduction by 2007

Clean Smokestacks Act On June 20, 2002, North Carolina Senate Bill 1078, also known as the “Clean Smokestacks Act,” was signed into effect. This law, which was a landmark, cooperative effort between utilities, regulators, and environmental groups, requires significant reductions in the emissions of nitrogen oxides (NOx) and sulfur dioxide (SO2) from utility owned coal-fired power plants located in North Carolina. This act is serving as a model that other states are following.

Progress Energy Emissions Reduction Leadership Clean Smokestacks Broad coalition (DENR, Governor, General Assembly, Advocates, Utilities) Technologies will be installed by 2013 First scrubber operational in 2005 at Asheville plant Rates frozen until 2007 Investing more than $800 million to comply with Act’s requirements Investment in addition to the $370 million the company has spent to reduce NOx emissions in the ozone season Technologies projected to reduce SO2 emissions by 74 percent and NOx emissions by 56 percent from 2001 levels EPA Clean Air Excellence Award to state and its partners

Progress Energy’s Clean Smokestacks Act Plan Supplement April 1, 2004 Progress Energy owns and operates 18 coal-fired boilers at seven plants in North Carolina, with over 5000 MWe generating capacity. On June 20, 2002 Governor Easley signed into law SB1078 which caps emissions of nitrogen oxides (NOx) and sulfur dioxide (SO2) from utility owned coal-fired power plants located in North Carolina. Progress Energy emissions caps for NC are: Tonnage Caps* NOx (2007) 25,000 SO2 (2009) 100,000 (2013) 50,000 *Cumulative for all Progress Energy NC units

Locations of Progress Energy’s Coal-Fired Power Plants in North Carolina

Progress Energy NOX Emissions (Annual Emissions in Tons) Actual SIP Call Clean Smokestacks

How Does an SO2 Scrubber Work? A slurry of finely ground limestone (CaC03) is sprayed into a reaction tower, which has flue-gas flowing counter-current to the spray. The SO2 in the gas reacts with the limestone, removing 95% of the S02 and making CaS04 (gypsum).

FGD Overview B&W Absorber Module Roxboro 4Typical Absorber Pumps Number 6 HP 2000 hp GPM 51,000 Recirc Line Size 4 feet Absorber Size 62 ft dia * 110 ft tall Liquid Depth 44 feet Flue Gas Velocity 12 ft/sec Residence time 15 hours

Progress Energy SO2 Emissions (Annual Emissions in Tons) Actual Clean Smokestacks Reduces faster - completed in 2014 instead of 2018