Affordable Energy Production from Renewable Fuel Presentation to: Logansport Municipal Utilities Board November 27 2012

Background By 2030 annual net peak demand for power approaching 150 MW The current 38.5 megawatt (MW) facility, cannot meet the basic demand levels of its service area Environmental policies pose significant challenges for LMU to upgrade existing plant Opportunities for generating lower-cost and cleaner electricity

Study scope Determine if energy can be produced from renewable fuels at a production cost in the range of 4.5 to 5.5 cents per kWhr

What is this study about? Independence / local control of LMU No loss of LMU employment Keep existing jobs within Logansport Economic development for Logansport – new jobs!

The do-nothing option Loss of local jobs Limitations to economic development Higher energy costs to Logansport residents No control

New power plant concept Produce energy at a cost of 4.5 to 5.5 cents per kWhr. Capable of delivering a total installed generating capacity of 300 MW Use “renewable” fuel from processed municipal solid waste as the primary source of fuel Allow sufficient redundancy in operation so as not to affect ability to deliver power load requirements to its customers

New power plant concept 2 – 150 MW Systems Environmental control Ancillary equipment Power plant fuel storage Rail access Fuel source production

New power plant concept Key to achieving energy cost target: Fuel quality Fuel supply Ability to sell highly marketable renewable power

Implementation Approach: No municipal bonding required Low risk strategy for LMU Schedule Security of power sales contract

Conclusion The proposed power plant will: Allow the LMU to meet its power demands and have an independent operation of its energy demand and supply Ensure a stable competitive energy price

Conclusion The proposed power plant will: Help retain needed jobs in the community Be attractive to new business looking to relocate to Logansport Generate direct and indirect economic impact to Logansport

Next steps Issue request for proposals Answer questions from potential submitters Develop evaluation criteria Submission of proposals Review proposals Interview short list Recommendation to LMU Board January 11 2013 February 4 2013