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Pennsylvania Electric Company (Pennelec)



GPU Generation, Inc.
1001 Broad Street
Johnstown, PA 15907
Tel 814-533-8111

Writer's Direct Dial Number
(814) 533-8811

April 29, 1997

The Honorable James M. Seif
PA Department of Environmental Protection
Rachel Carson State Office Building (16th Floor)
P. O. Box 2063
Harrisburg, PA 17105-2063

Mr. Robert J. Barkanic
Special Assistant
PA Department of Environmental Protection
Office of Air, Recycling and Radiation Protection
Rachel Carson State Office Building
P.O. Box 2063
Harrisburg, PA 17105-2063

Dear Mr. Barkanic:

This is to express our appreciation for your support on behalf of Pennsylvania Electric Company (Pennelec), GPU Generation, Inc. (Genco), and New York State Electric & Gas Corporation (NYSEG), the owners and operator of Homer City Station in Indiana County, Pennsylvania to conduct an Excellence and Leadership (XL) project at the Homer City Station. The project would have provided environmental and economic benefits in Pennsylvania, and could have been used as a national model for demonstrating compliance with environmental standards in a more flexible fashion.

Unfortunately, and despite our presentations demonstrating the compelling economic and environmental benefits of the project, EPA has not accepted the Homer City Station XL proposal. The enclosed letter contains EPA's reasons for not accepting the proposal. Significantly, EPA has decided that the owners should not be given any "credit" for agreeing to maintain the voluntary early emission reductions (more than 25,000 tons of SO2 per year below allowable levels) already achieved at the station. In short, without any credit for the station's current superior environmental performance, the owner's proposal, in EPA's judgment, could not satisfy their test for superior environmental performance.

We will advise you if any further steps are taken to preserve the environmental benefits achieved at the station. In the interim, should you have any questions or comments, please call me.

Your support was appreciated greatly.

Very truly yours

R. P. Lantzy
Director - Technical Services & Strategy

cc: J. Rue
J. Salvaggio
bcc: Lisa Lund
David Gardiner
XL Team


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