Our Chicago Climate Exchange (CCX) emission baseline is based on our average emission levels during the years 1998-2001; this is equivalent to 758.9 kilotonnes. CCX has set an increasingly stringent reduction schedule for the current second phase of the program, as follows:
We are fully compliant with the contractually binding emission reductions target. Our emissions have been below the allowance level in every year since we began participating in the exchange:
If a participant's emissions exceed their allowance level they are required to buy additional units through the exchange. If their emissions are below their allowance level they are able to sell surplus units.
While emissions from new generating units were exempt under the first phase, only the first 895.4 kilotonnes per year from all new sources placed into operation on or after January 1, 2002, will be exempt in Phase II. As such, emissions from the new Brandon Combustion Turbine Units 6 & 7 will be included in our reportable emissions if they exceed this level.
Our verified annual emissions data can be found under Membership/Compliance/Program-Wide Baseline & Compliance Reports on the Chicago Climate Exchange website.
Participation in the CCX is a very positive element of our commitment to greenhouse gas emission reductions. It reflects positively on the company's commitment to leadership in environmental protection. As a prominent participant in the CCX, we have received recognition for our commitment to climate change. Through participation in the CCX, we continue to gain experience with measurement, reporting, and trading of emissions.
Some of the other benefits of belonging to the CCX include:
