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Santee Cooper to move forward with coal plant analysis

By Santee Cooper  Wednesday, March 19, 2008

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MONCKS CORNER, S.C.-Santee Cooper announced today it has decided to conduct an additional environmental analysis, called a Maximum Achievable Control Technology (MACT) analysis, in connection with the permitting of the Pee Dee Energy Campus in Florence County, S.C. This analysis is focused only on certain pollutants, including mercury.

Santee Cooper has advised the South Carolina Department of Health and Environmental Control (DHEC) of its decision. The state-owned utility made this decision last month in order to maintain momentum on its state air permit, in the wake of federal regulatory uncertainty following the February decision of the U.S. Court of Appeals for the District of Columbia Circuit to vacate the Clean Air Mercury Rule (CAMR).

A MACT analysis is a state-regulated case-by-case analysis of similar operating facility’s environmental technology and emission levels.

“We are confident that the mercury emission levels in our permit are among the most stringent in the country. The state-imposed limits are far more protective than the federal limits. However, this proactive MACT analysis will keep our permit moving along, regardless of any future outcomes related to the federal regulatory process. We have said all along we intend to maintain an environmental leadership role throughout every stage of the permitting, construction and operation process, and this action provides transparency and continues us on our clear permitting path,” said Santee Cooper President and Chief Executive Officer Lonnie Carter.

Santee Cooper welcomes the anticipated DHEC public comment process associated with the MACT analysis, to assure the utility’s emissions are in compliance with standards and are protective of human health and the environment.

The high efficiency 600-megawatt coal-fired generation facility at the Pee Dee site, near Kingsburg, S.C., is scheduled to become operational after 2012. Santee Cooper has board approval permitting two units on the 2,700 acres the company has owned since the mid 1980s and building one unit.

This facility will utilize the best available environmental control technology, resulting in one of the cleanest power plants in the nation. It will reduce sulfur dioxide emissions by more than 98 percent, nitrogen oxide emissions by more than 90 percent, mercury emissions by more than 92 percent and particulate matter by more than 99 percent.

South Carolina’s population grew by 15 percent in the last decade, and the population is expected to grow by 10 percent through 2010. Additional generation capacity is required to meet this growth.

The construction of the new Pee Dee Energy Campus is an important component of Santee Cooper’s ability to meet the certain load growth in its service area as well as across the state. As the largest producer of electricity for South Carolina, Santee Cooper has an obligation to meet those energy needs with a balanced approach.

Santee Cooper has been and will continue to be a leader in conservation, energy efficiency and renewables, and its recent Santee Cooper Green brand (www.SanteeCooperGreen.com) is a reflection of its ongoing commitment. The utility has been encouraging and promoting energy conservation for over 40 years to help meet this load growth.

Santee Cooper Green outlines the 23 initiatives that show how Santee Cooper goes green and how it helps customers go green, conserve energy and save money. Programs include the Solar Homes Initiative, Green Power, compact fluorescent light program, Green Power Solar Schools programs and more. However, there is not enough renewable energy or conservation for the large base load generation currently required to meet the growth.

Santee Cooper is South Carolina's state-owned electric and water utility and serves more than 163,000 residential and commercial customers in Berkeley, Georgetown and Horry counties. The utility also generates the power distributed by the state's 20 electric cooperatives to more than 685,000 customers in all 46 counties. Santee Cooper is the largest provider of electricity to South Carolinians. All total, more than two million South Carolinians receive their power directly or indirectly from Santee Cooper. For more information, visit www.SanteeCooper.com

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