Reuters report

[Guest guest]

By Michael Erman

NEW YORK (Reuters) - U.S. power company Exelon Corp. (EXC.N: Quote,

Profile, Research) on Friday said it plans to voluntarily cut its

greenhouse gas emissions by 8 percent from 2001 levels by the end of

2008.

 

Many scientists blame greenhouse gases for a gradual rise in the

temperature of the earth's atmosphere that is affecting coastal

areas, icebergs and wildlife.

 

The company said that more than half of the reduction would be made

through increased reliance on cleaner energy like wind, solar or

landfill gas. Another quarter would come from improving its own

operations.

 

The company said it emitted about 16 million tons of greenhouse gas

in 2001. Based on this level, its goal is to cut those emissions by

1.3 million tons by 2008, when, without cuts, it projects it could

emit up to 18 million tons of greenhouse gas from its fossil fuel

plants.

 

The company, which is making the reductions under the Environmental

Protection Agency's Climate Leaders program, said it would also

propose a new target after completion of its planned acquisition of

Public Service Enterprise Group Inc. (PEG.N: Quote, Profile,

Research) .

 

" At Exelon, we accept that the science of global warming is

overwhelming. We accept that limitations on greenhouse gases

emissions will prove necessary. Until those limitations are adopted,

we believe that business should take voluntary action to begin the

transition to a lower-carbon future, " said Chief Executive John Rowe.

 

Emissions fluctuate on a year-by-year basis -- in 2002, the company

only emitted about 13.8 million tons of carbon dioxide, well below

its 2008 target.

 

However, emissions were back in the 2001 range in 2003 and just

slightly lower in 2004, and the company expects greenhouse gas

emissions to ramp up in 2006 and 2007.

 

Exelon's greenhouse gas emissions are relatively low compared with

other utilities of its size, because the company, which is the No. 1

U.S. nuclear power producer, uses much less fossil fuel than most of

its competitors. Around 40 percent of U.S. carbon dioxide comes from

fossil-fueled power plants, while nuclear plants produce hardly any

greenhouse gas emissions.

 

Helen Howes, Exelon's vice president for environmental, health, and

safety matters, said the program gets the company ready for a carbon

constrained world.

 

" We are expecting one of two things in 2008 -- that we would

renegotiate a new voluntary target, or there could well be regulatory

or legislated requirements, " Howes said in an interview.