Energy Recovery System

Background of LVMWD

• LVMWD established in 1958.

• 122 square mile service area.

• Potable water to about 65,000 people and wastewater treatment for about 85,000 people.

Water Reclamation Facility

Rancho

Tapia

Digesters

Enclosed Ground Flare

Power Purchase Agreement

• RFP in 2008• US Energy was selected 2/2009• 300kW IC Engine/Generator• Self-generation Grant $280K• Lease agreement• 20 year PPA at 6.49 cents/KWh• Escalation at 1.8% first 10 years• Escalation at 1.2% second 10 years• $75,000 performance security deposit

Energy Recovery Service Terms

• LVMWD not obligated to buy electricity not meeting specifications.

• Company will not sell electricity to anyone other than LVMWD w/out written consent.

Challenges for the Project

• SCAQMD Permitting

• Emission Modeling

Energy Recovery Building

Chiller

Gas Conditioning Units

Engine and Generator

Electric Panel

Emission Stanch

Heat Exchanger

Future Renewable Energy

Infinia Solar

Federal Energy Regulatory Commission

• FERC issued a landmark order on Oct. 21 that will greatly enhance the economic benefits water agencies and others receive under the State’s Feed-In Tariff program.

• The ruling paves the way for the California Public Utilities Commission (PUC) to increase rates that third-party power generators receive for the energy they sell back to the grid from the current 8 cents per kilowatt-hour (kWh) to the 16 cents to 20 cents that utilities receive for comparable energy under the State’s Renewable Portfolio Standard.

FERC Purchase Option

• Purchase Option ($280k to $50K)

Questions