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Sargent's Court Reporting Service, Inc. (814) 536-8908 10 1 COMMONWEALTH OF PENNSYLVANIA DEPARTMENT OF ENVIRONMENTAL PROTECTION * * * * * * * * * IN RE: SECTION 111(D) LISTENING SESSION * * * * * * * * * BEFORE: VINCE BRISINI, Chair CRAIG EVANS, Member DEAN VANORDEN, Member KRISHNAN RAMAMURTHY, Member JOYCE EPPS, Member HEARING: Thursday, September 25, 2014 9:03 a.m. LOCATION: Office of Chief Counsel PA Department of Education 333 Market Street First Floor Honor’s Suite Harrisburg, PA 17126-0333 Reporter: Kelly J.B. Arnold Any reproduction of this transcript is prohibited without authorization by the certifying agency Sargent's Court Reporting Service, Inc. (814) 536-8908 2 1 WITNESSES 2 3 Kathleen Robertson, John Pippy, John 4 Olebracht, Gary Mernick, Steve Todd, 5 Maureen Mulligan, Megan Toomey, Ron 6 Celentano, Tom Crooks, Ray Evans, Eugene 7 Trisko, Tom Kovalchuk, Terry Jarrett, Mike 8 Catanzaro, John Shimshock, Jackson Morris, 9 Donald Brown, Robin Mann, Joy Bergey, Mary 10 Elizabeth Clark, Edward Perry, Gretchen 11 Dahlkemper-Alfonso, John Bechtel, Bob 12 Potter, Karen Melton, Kevin Stewart, Wendy Taylor, 13 Cece Viti, Matt Walker, James 14 Jones, Daniel Kremer, Sue Edwards, Gillian 15 Norris-Szanto, Joanne Kilgour 16 17 18 19 20 21 22 23 24 25 Sargent's Court Reporting Service, Inc. (814) 536-8908 3 1 I N D E X 2 3 OPENING REMARKS 4 By Chair 7 - 8 5 TESTIMONY 6 By Ms. Robertson 8 - 20 7 DISCUSSION AMONG PARTIES 21 - 22 8 TESTIMONY 9 By Mr. Pippy 22 - 32 10 By Mr. Olebracht 33 - 45 11 QUESTIONS BY BOARD 45 - 48 12 TESTIMONY 13 By Mr. Todd 48 – 52 14 By Ms. Toomey 53 - 57 15 By Ms. Mulligan 58 - 70 16 QUESTIONS BY BOARD 70 - 73 17 TESTIMONY 18 By Mr. Celentano 73 - 79 19 By Mr. Crooks 80 – 83 20 By Mr. Evans 84 - 93 21 QUESTIONS BY BOARD 93 - 94 22 TESTIMONY 23 By Mr. Trisko 94 - 100 24 25 Sargent's Court Reporting Service, Inc. (814) 536-8908 4 1 I N D E X (cont.) 2 3 QUESTIONS BY BOARD 100 - 102 4 TESTIMONY 5 By Mr. Kovalchuk 102 - 109 6 By Mr. Jarrett 109 - 115 7 By Mr. Mike Catanzaro 116 - 129 8 QUESTIONS BY BOARD 129 - 131 9 TESTIMONY 10 By Mr. Shimshock 132 - 136 11 QUESTIONS BY BOARD 136 - 139 12 TESTIMONY 13 By Mr. Morris 140 - 155 14 QUESTIONS BY BOARD 155 - 159 15 TESTIMONY 16 By Mr. Brown 160 - 171 17 QUESTIONS BY BOARD 172 - 173 18 TESTIMONY 19 By Ms. Mann 173 - 178 20 By Ms. Bergey 179 - 182 21 By Ms. Clark 183 - 185 22 By Mr. Perry 186 - 193 23 DISCUSSION AMONG PARTIES 193 - 195 24 25 Sargent's Court Reporting Service, Inc. (814) 536-8908 5 1 I N D E X (cont.) 2 3 TESTIMONY 4 By Ms. Dahlkemper-Alfonso 195 - 203 5 By Mr. Bechtol 203 - 210 6 By Mr. Potter 211 - 214 7 By Ms. Melton 215 - 224 8 By Mr. Stewart 225 - 232 9 QUESTIONS BY THE BOARD 232 - 236 10 DISCUSSION AMONG PARTIES 236 - 237 11 TESTIMONY 12 By Ms. Taylor 238 - 248 13 By Ms. Viti 248 - 250 14 By Mr. Walker 251 - 259 15 By Dr. Jones 260 - 262 16 By Mr. Kremer 262 - 267 17 By Ms. Edwards 268 - 272 18 By Ms. Norris-Szanto 273 - 276 19 By Ms. Kilgour 276 - 282 20 21 22 23 24 25 Sargent's Court Reporting Service, Inc. (814) 536-8908 6 1 E X H I B I T S 2 3 Page 4 Number Description Offered 5 NONE OFFERED 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Sargent's Court Reporting Service, Inc. (814) 536-8908 7 1 P R O C E E D I N G S 2 ------------------------------------------------------ 3 CHAIR: 4 Good morning. Welcome to our, I guess 5 you might say third 11D (sic) listening session. We 6 appreciate that you’re taking the time to be here and 7 that you’re sharing your thoughts on the EPA proposal 8 with us. 9 The ground rules for today’s 10 presentations are that each speaker will be provided 11 15 minutes, those are uninterrupted minutes, to 12 present their position and comments on EPA’s proposed 13 Clean Power Plant. 14 We, as DEP, may ask some clarifying 15 questions, however, there will be no questions from 16 the audience and there will be no assistance from 17 other members of the audience or the presenters in 18 addressing questions from the individual. 19 If you find it necessary to clarify more 20 than you’ve been able to do verbally today, you may 21 submit additional clarifying information that we will 22 consider in preparation of our comments. I learned 23 that our first speaker for today --- I don’t think I 24 have ---. Oh, here we go. 25 Our first speaker for today has canceled Sargent's Court Reporting Service, Inc. (814) 536-8908 8 1 due to illness, so I was wondering if Kathleen Ann 2 Robertson is here, if she would be willing to be the 3 first speaker of the day. Also I should warn you that 4 there is no on off switch on that microphone, so 5 should you utter anything under your breath we all may 6 hear it. 7 MS. ROBERTSON: 8 Good morning. My name is Kathleen 9 Robertson. I’m environmental and fuels policy manager 10 of Exelon Corporation. Exelon is one of the nation's 11 leading competitive power generators, owning and 12 operating over 35,000 megawatts of nuclear, wind, 13 hydropower, solar, gas, coal and oil fired generation, 14 including almost 9,000 megawatts of generation in 15 Pennsylvania. In addition, our utility businesses 16 serve three major metropolitan areas in the PJM 17 Interconnection including PECO Energy in southeastern 18 Pennsylvania. 19 Exelon Generation is headquartered in 20 Kennett Square, Pennsylvania and our Exelon nuclear 21 business unit is the leading owner and operator of 22 nuclear plants in the United States with ownership 23 interests in nuclear plants representing over 24,000 24 megawatts of generation capacity, including over 5,400 25 megawatts in Pennsylvania at the Limerick, Peach Sargent's Court Reporting Service, Inc. (814) 536-8908 9 1 Bottom and Three Mile Island facilities. 2 Exelon's PECO Energy subsidiary has over 3 2,400 full-time employees and proudly provides 4 electric and natural gas distribution services to a 5 population of over 4 million people, with 1.6 million 6 electric and 497,000 natural gas customer accounts in 7 southeastern Pennsylvania. 8 In total Exelon currently employs over 9 6,000 people in Pennsylvania in highly skilled 10 positions. During 2012 Exelon Corporation and its 11 subsidiaries paid $256 million in state and local 12 taxes in Pennsylvania and collected an additional $104 13 million on behalf of Pennsylvania government agencies. 14 Exelon appreciates the Department's 15 efforts to seek public input concerning Pennsylvania's 16 plans to implement and enforce EPA's Section 111(d) 17 rulemaking to reduce greenhouse gas emissions from 18 existing fossil fuel fired power plants. 19 My colleague, Bruce Alexander, commented 20 at the previous listening session last December. He 21 highlighted the important role that our industry must 22 play in reducing greenhouse gas emissions as well as 23 three principles to guide, plan and development. 24 First we noted that the primary focus of the 25 compliance plan should be to achieve the necessary Sargent's Court Reporting Service, Inc. (814) 536-8908 10 1 reductions in a way that maintains reliability and 2 minimizes consumer costs. 3 Second, we stated that the compliance 4 timeline should be cognizant of the current fleet 5 transition. Finally, we urged regulators to minimize 6 regulatory uncertainty during this process. We 7 reiterate our support for these principles as 8 Pennsylvania explores compliance options. In 9 addition, we offer the following comments specific to 10 the guidelines proposed by EPA in June. 11 Nuclear power is often an overlooked 12 lynchpin of the transition to a lower carbon 13 electricity generating fleet. Pennsylvania is a 14 national leader in the production of clean energy, in 15 part due to the benefits provided by its nuclear 16 fleet. 17 In 2013 Pennsylvania ranked third in the 18 country in the production of carbon free power. 19 Thirty-four (34) percent of the power generated in 20 Pennsylvania in 2012 was produced by nuclear 21 generation, which equates to nearly 35 million tons of 22 carbon emissions avoided through this reliable source 23 of base load generation. 24 Environmentalists and scientists around 25 the world have concluded that the necessary emission Sargent's Court Reporting Service, Inc. (814) 536-8908 11 1 reductions cannot be achieved without the continued 2 operation of nuclear power. The pathway to a clean 3 energy future must include what is working today. 4 In fact, nuclear supplies 62 percent of 5 clean energy resources in the U.S. and 93 percent of 6 the clean energy resources in Pennsylvania. For the 7 foreseeable future nuclear power is the only means to 8 predictably produce large amounts of zero emission 9 electricity at all times of the day. 10 As PJM has noted, nuclear plants provide 11 unrivaled performance during all weather conditions. 12 Exelon Nuclear's 24 units across five states, 13 including Pennsylvania, achieved an average capacity 14 factor in excess of 94 percent in 2013. 15 That means they were available 94 16 percent of the time to meet customers needs, even 17 taking into account the time we need to take the 18 plants offline to refuel them and conduct all 19 scheduled and unscheduled maintenance outages.
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