Progress Briefing - Energy Initiative IAH Terminal Redevelopment Program April 27, 2017

Agenda Introduction RFI Responses – Salient Information Planning Decisions – HAS HARC – Feasibility Study Overview Open Discussion Next Steps Questions?

Energy Infrastructure Introduction – Bob Barker

ENERGY INITIATIVE PURPOSE Improve Reliability of Electrical Supply and Distribution Improve Electrical Supply and Distribution Systems Resilience Provide Opportunities for More Sustainable and Diverse Energy Supply Renew Aged Electrical Infrastructure

IAH Introduction Central Terminal Area (CTA) Intercontinental Substation Central Utility Plant Greens Road Substation

RFI Feedback & HAS Planning Decisions – Steve Cornell

RFI RESPONSES - SUMMARY Received 11 Responses from Energy Providers, Suppliers, Contractors and Consultants as Individual, Joint-Ventures or Teams Responses Reflected Extensive Experience in Delivery of Energy Solutions for International, North America, Texas and Houston Region Clients Responses Represented the Range of Energy Alternatives, Including On- Site and Off-Site Solutions Responses Included CHP, Solar, Bio-Fuel and other Renewable Resource Solutions A Number of the Respondents Included Business/Financial Options (Rate- Based, PPAs, DBOM, DBOM-F, P3, etc.)

RESPONDENTS– KEY CONSIDERATIONS Right sizing of CHP system is dependent on correct energy profile data. Early Engagement with Texas Commission on Environmental Quality (TCEQ) is Recommended. For On-Site CHP, Adequate natural gas pressure and capacity must be verified; consider uninterruptible gas contract. Phasing and sequencing of the new and modification of existing energy infrastructure must be carefully planned to maintain facility operation. Consider use of thermal storage. Early planning of site limits and logistics must be undertaken. Suggested final pricing for partnership on an “Open Books” basis. Consider the treatment / transfer of assets at end of contract term. Leverage global supply agreements with Tier 1 manufacturers. Consider renewable energy PPA supplemented by natural gas generation.

HAS PLANNING CONSIDERATIONS The Project Team is considering delivery of the Energy Initiative (EI) Project as a DBOM-F, P3, PPA, or a combination thereof. Proposals for the EI project must deliver the best long-term pricing structure for supplying energy to the City, and meet the previously defined goals of reliability and resiliency for IAH. If an onsite CHP solution is selected as the EI solution: There is currently no intent for an on-site solution to export power to the Grid other than what may potentially used for other City of Houston demands. It appears that a CHP on the order of 35-40 MW rating would be acceptable with respect to meeting the IAH Central Terminal Area (CTA) and the existing Central Utility Plant (CUP) loads. It is understood that a CHP plant solution up to a nominal 45 MW can meet TCEQ emissions limits; this will require validation by the selected EI developer, if this solution is selected.

Enabling Utilities Landside - Base Scope Project Overview EI On-Site Option

HAS PLANNING CONSIDERATIONS The interconnection of the new Enabling Landside Utilities (EUL) Project to the Energy Grid will be via a new 138-12.47 kV substation and a Energy Provider-Owned switching station, both located in the vicinity of the existing Intercontinental Substation. 12.47 kV circuits would be extended under the airfield to the Electrical Power Station (EPS) near the existing CUP, and also connect to any installed CHP. The above EPS may be included in the scope of the EI Project, as well as the 12.47 kV feeders crossing the airfield. The EI Project may include modifications to the existing CUP, such as replacing the existing steam turbine chillers which are near end-of-life. The EI Project may also include assuming responsibility for O & M of the 12.47 kV system from the EPS and up to final connections at terminals served within the Central Terminal Area as well as the CUP.

HARC Feasibility Study Overview – Darrell Thornley

CHP Feasibility Analysis George Bush International Airport (IAH) Progress Update April 27, 2017

US Department of Energy CHP Technical Assistance The US Department of Energy sponsors CHP Technical Assistance Partnerships across the US to educate on CHP and provide technical assistance HARC, a non-profit research organization, operates the CHP TAP for our region HARC is completing a Feasibility Analysis for CHP at IAH

IAH Feasibility Analysis The feasibility analysis evaluates: Load profiles Utility rate structures Potential unit sizing High-level cost estimates High-level payback analysis The purpose of the feasibility analysis is to determine if a CHP is a technically and financially viable option for energy supply at IAH.

Preliminary Sizing Considerations Approximately 18MW CHP system would generate 100% of thermal demand & over 90% of average electrical demand (~40% of peak electrical demand) 35-40MW could cover 100% of electric demand Higher cost, depending on design also higher resiliency How to best use additional thermal? Optimal equipment configuration? 2 x 18MW? Combination of steam turbines and recips?

Possible Location 1 Possibly most cost effective location, tight plant footprint, limited construction laydown, etc.

Possible Location 2 Most space available, but longer piping runs significantly increase costs

Possible Location 3 Adequate footprint and construction space, piping/conduit under runway are significant costs

Next Steps HARC submitting feasibility analysis to DOE for final review HAS will consider information in the feasibility analysis along with information provide by vendors under the RFI process as it develops an RFQP

Open Discussion

Energy Initiative Project – Next Steps

Next Steps Proceed with procurement via public bidding process – 2nd – 3rd Quarter 2017 Finalize selection of Energy Initiative solutions and delivery options for preparation of two-step RFQ/P package. Issue, receive & evaluate respondent’s Statement of Qualifications (SOQ). Establish short-list of respondents to seek Technical & Financial Proposals Receive & evaluate respondents’ Technical & Financial proposals Award Energy Infrastructure Contract – Target is to award by end of 2017.

Any Questions