A Brief History 1889 – District energy comes to Philadelphia April 1, 2017 1889 – District energy comes to Philadelphia 1903 - Electricity is first generated at Schuylkill Station 1938 - Boiler #23 and #24 were installed. 1972 - Boiler #26 was installed 1987 - Philadelphia district energy system purchased from investor owned utility 1993 – Trigen Energy acquires assets of United Thermal Corporation 1992 – PPA & Steam purchase agreements executed for Grays Ferry Cogeneration Partnership 1996 – GFCP financing closes 1998 - Grays Ferry Cogeneration Project commences commercial operation

A Brief History April 1, 2017 2005 – Thermal North America Inc. acquires assets of The Trigen Companies 2005 – Energy Services Agreement executed for new Chilled Water Plant at Edison Station for benefit of Thomas Jefferson University 2007 – Edison Chilled Water Plant commences commercial operation 2007 – Veolia Energy North America acquires assets of Thermal North America Inc.

Veolia Energy’s Operations in Philadelphia

Veolia Energy’s Philadelphia Operations Veolia Energy owns and operates two district energy systems in the City of Philadelphia: Steam System serving Center City and West Philadelphia Edison Station Central Chilled Water Plant

Veolia Energy’s Philadelphia Steam System

Veolia Energy’s Philadelphia System (Cont’d) Approximately 300 Customers Serve approximately 500+ buildings representing 100 million square feet of commercial, institutional, residential and governmental buildings Two steam generation plants Schuylkill Station and Edison Station Total steam capacity of approximately 2.6 million pounds per hour Cogeneration Plant - Grays Ferry Cogeneration Plant 170-megawatts Total steam capacity of 1.4 million pounds per hour Fuel diversity to customers, using natural gas, #6 fuel oil, and purchased steam from cogeneration plant 30 miles of steam distribution piping 470 manholes Two steam pressures – 165 psig and 205 psig

Schuylkill Station #23 and #24 Boilers 800 MMbtu (235 MWth) # 6 Oil fired Circa 1939 #26 Boiler 760 MMbtu (225 MWth) Natural Gas & # 6 Oil fired Circa 1972

Edison Station #1 and #2 Boilers 200 MMbtu (60 MWth) # 6 Oil fired Circa 1957 #3 and #4 Boilers 250 MMbtu (75 MWth) Circa 1963

Grays Ferry Cogeneration Project Westinghouse 501D5A combustion turbine Excellent match for steam load MHI controlled extraction / induction / condensing steam turbine generator Nooter / Eriksen heat recovery steam generator Cerrey auxiliary boiler-dual fueled boiler-nominal capacity of 500,000 lbs/hr

Edison Station Central Chilled Water System Four (4) 1,750 dual compressor McQuay Electric Centrifugal Chillers Four (4) custom cooling towers to match chiller capacity New controls, new chilled water pumps, new condenser water pumps, new electric switchgear Approximately 2,000 feet distribution system

TJU Campus Aerial View with CHW Service

Customer Profile More than 300 Customers Served 500+ buildings, approx. 100 million square feet 3.6 million Mlbs sales annually

Recent Veolia Philadelphia Customer Additions Comcast Center 1.2 million square foot Class A commercial office building First LEED certified high rise in country Utilizes steam for radiant heating, domestic hot water, cooking, snow melting, and as part of hybrid cooling plant (1,000 ton absorption chiller with two electric centrifugal chillers) 20 year agreement Residences at the Ritz-Carlton 628,000 square foot, 46-story, 289 condominiums Steam for heating and domestic hot water Symphony House Condominiums 642,000 square foot, 31-story condominium building 400 seat theater (Philadelphia Theater Company) Murano Condominium 440,000 square foot, 42-story, 302 condominiums

Future Growth, Expansion and New Equipment Continued investment in expansion of steam infrastructure to serve new construction/conversion from other energy sources Chilled water plant-potential expansion to serve new buildings on TJU campus (3,000 to 8,000 tons additional-850,000 sf of space) Talking with current customers about potential sustainable energy projects such as bio-fueled plant using municipal waste and renewable fuels (wood waste) to generate electricity and steam

Future Growth, Expansion and New Equipment (Cont’d) Offering of services “beyond the meter”. Recognized as energy experts, natural transition is to provide services on customer equipment ranging from mechanical repairs, steam trap surveys and repair/replacements, operations and maintenance contracts, recycling, etc. Provide an array of services across the spectrum of purchasing/managing energy commodity, operations and maintenance of major energy producing equipment, assisting customers manage their energy operations and efficiency, and providing the services to allow customers to focus on their core business.

Veolia Energy North America Questions?