Wheelabrator Technologies Inc. A Waste Management Company Florida Public Service Commission Renewable Portfolio Standards Workshop Tallahassee, FL July 26, 2007 Francis A. Ferraro VP, Public Affairs From everyday collection to environmental protection, Think Green.® Think Waste Management.

Wheelabrator Technologies Inc. Wholly owned subsidiary of Waste Management Inc. Operate 21 energy facilities (19 renewable energy) 16 waste-to-energy plants 5 Independent Power Production facilities Developed, built and operate the first commercially successful waste-to-energy plant in U.S. Saugus, MA 1975 Total generating capacity 836 MW Wheelabrator Technologies Inc. A Waste Management Company Think Green.®

Wheelabrator Technologies Facilities Hudson Falls 21 Waste-to-Energy facility Lassen Independent Power Production facility Lisbon 20 Ridge (Polk County) 19 Falls 18 Spokane, South & North Broward 17 Concord, Gloucester 16 Bridgeport 13 Frackville, Norwalk 11 Claremont, Millbury 10 Number of Plants Shasta 8 N. Andover, Tampa, Baltimore 6 Westchester 5 Saugus 2 1 ‘75 ‘83 ‘84 ‘85 ‘86 ‘87 ‘88 ‘89 ‘90 ‘91 ‘92 ‘93 ‘94 ‘95 ‘96 ‘97 ‘98 ’99 ‘03 Year Completed

Wheelabrator Technologies Inc. A Waste Management Company FLORIDA Own & operate 2 waste-to-energy facilities in Broward County 134 MW; 4,500 tons per day Municipal Solid Waste Built & operate City of Tampa’s waste-to-energy facility 22 MW; 1,000 tons per day Municipal Solid Waste Own & operate a waste wood/tires/landfill gas-to-energy facility in Auburndale 50 MW Wheelabrator Technologies Inc. A Waste Management Company Think Green.®

A Waste Management Company Waste-to-Energy Waste-to-Energy is a modern, proven process for safe disposal of municipal solid waste and generation of clean, renewable energy from the heat released by the combusted waste. Waste-to-Energy facilities are equipped with state-of-the-art air pollution control systems and are operated by professionals certified by US EPA and American Society of Mechanical Engineers. South Broward (FL) facility Wheelabrator Technologies Inc. A Waste Management Company Think Green.®

A Waste Management Company Waste-to-Energy - U.S. - There are 89 waste-to-energy facilities in 27 states that: Combust MSW to reduce its volume Produce energy, usually as electricity Recover ferrous and sometimes non-ferrous metals for recycling McKay Bay (Tampa) facility Wheelabrator Technologies Inc. A Waste Management Company Think Green.®

A Waste Management Company Waste-to-Energy - U.S. - Percentage of U.S. Waste Managed: 13% Disposal Capacity: 93,000 TPD Annual Disposal: 29 million tons People Served: 36 million Wheelabrator Technologies Inc. A Waste Management Company Think Green.®

A Waste Management Company Waste-to-Energy - U.S. - Power Generation Capacity: 2500 MW Annual Power Generation: 16 million MW-hours Homes served: 1.98 million Percentage of Total Renewable Energy (excluding hydropower): 18% North Broward (FL) facility Wheelabrator Technologies Inc. A Waste Management Company Think Green.®

Waste-to-Energy - Florida - Existing waste-to-energy capacity in Florida 11 facilities ~496 MW of installed capacity > 17,500 tons per day municipal solid waste processing capacity Wheelabrator Technologies Inc. A Waste Management Company Think Green.®

Renewable Portfolio Standards “New” waste-to-energy capacity in Florida -- Definite and anticipated near-term Lee County is completing an expansion Hillsborough County is planning an expansion Palm Beach County is considering an expansion Others? Wheelabrator Technologies Inc. A Waste Management Company Think Green.®

Renewable Portfolio Standards Setting a Renewable Portfolio Standard 1.      How should a renewable portfolio standard be set? a.       Based on a megawatt goal? b.      Based on a percentage of peak generation goal? c.       What renewable technologies should qualify toward meeting the goal? 2.      What vintage of renewable generating units should qualify toward meeting the goal? 3.      What is a reasonable level for the goal? a.       What amount of renewable generation is achievable in Florida? Wheelabrator Technologies Inc. A Waste Management Company Think Green.®

Renewable Portfolio Standards Setting a Renewable Portfolio Standard 1.      How should a renewable portfolio standard be set? a.       Based on a megawatt goal? b.      Based on a percentage of peak generation goal? c.       What renewable technologies should qualify toward meeting the goal? 2.      What vintage of renewable generating units should qualify toward meeting the goal? 3.      What is a reasonable level for the goal? a.       What amount of renewable generation is achievable in Florida? Wheelabrator Technologies Inc. A Waste Management Company Think Green.®

Renewable Portfolio Standards Renewable Energy Sources that should be included in a Renewable Portfolio Standard Chapter 366 366.91 -- "Renewable energy" means electrical energy produced from a method that uses one or more of the following fuels or energy sources: hydrogen produced from sources other than fossil fuels, biomass, solar energy, geothermal energy, wind energy, ocean energy, and hydroelectric power. The term includes the alternative energy resource, waste heat, from sulfuric acid manufacturing operations. "Biomass" means a power source that is comprised of, but not limited to, combustible residues or gases from forest products manufacturing, agricultural and orchard crops, waste products from livestock and poultry operations and food processing, urban wood waste, municipal solid waste, municipal liquid waste treatment operations, and landfill gas. Wheelabrator Technologies Inc. A Waste Management Company Think Green.®

Renewable Portfolio Standards Setting a Renewable Portfolio Standard 1.      How should a renewable portfolio standard be set? a.       Based on a megawatt goal? b.      Based on a percentage of peak generation goal? c.       What renewable technologies should qualify toward meeting the goal? 2.      What vintage of renewable generating units should qualify toward meeting the goal? 3.      What is a reasonable level for the goal? a.       What amount of renewable generation is achievable in Florida? Wheelabrator Technologies Inc. A Waste Management Company Think Green.®

Renewable Portfolio Standards Requirement should be set as a percentage of total, annual electric sales A fixed MWhr requirement does not provide for concomitant growth of renewable energy along with electric load growth. A percentage requirement provides incentive for utilities to implement additional demand-side activities. Wheelabrator Technologies Inc. A Waste Management Company Think Green.®

Renewable Portfolio Standards Setting a Renewable Portfolio Standard 1.      How should a renewable portfolio standard be set? a.       Based on a megawatt goal? b.      Based on a percentage of peak generation goal? c.       What renewable technologies should qualify toward meeting the goal? 2.      What vintage of renewable generating units should qualify toward meeting the goal? 3.      What is a reasonable level for the goal? a.       What amount of renewable generation is achievable in Florida? Wheelabrator Technologies Inc. A Waste Management Company Think Green.®

Renewable Portfolio Standards What vintage of renewable generating units should qualify toward meeting the goal? New renewable energy facilities RPS must provide incentive for new renewable energy generation Existing renewable energy facilities RPS must help protect existing base of renewable energy generation Wheelabrator Technologies Inc. A Waste Management Company Think Green.®

Renewable Portfolio Standards New renewable energy facilities RPS must provide incentive for new renewable energy generation Establish definition of “new” “New” renewable energy is capacity that is established after the effective date of the RPS rule Establish “age“ for transition from “new” to existing e.g. 10 years after qualifying as a “new” facility Wheelabrator Technologies Inc. A Waste Management Company Think Green.®

Renewable Portfolio Standards “New” renewable energy is capacity that is established after the effective date of the RPS rule - New, “greenfield” facilities - Increased capacity at existing facilities - Addition of new generating capacity - Efficiency improvements that lead to increased generation Wheelabrator Technologies Inc. A Waste Management Company Think Green.®

Renewable Portfolio Standards “New” renewable energy is capacity that is established after the effective date of the RPS rule Ambitious goals Alternative Compliance Payment If utilities are unable to obtain required amount of renewable energy Wheelabrator Technologies Inc. A Waste Management Company Think Green.®

Renewable Portfolio Standards “New” renewable energy Alternative Compliance Payment At what level should ACP be set? High enough to provide incentive for utilities to search out and provide incentives for new renewable capacity Experience of other states with ACPs Wheelabrator Technologies Inc. A Waste Management Company Think Green.®

Renewable Portfolio Standards “New” renewable energy Alternative Compliance Payment Experience of other states with ACPs e.g., Massachusetts 1.0% by 2003   1.5% by 2004   2.0% by 2005   2.5% by 2006   3.0% by 2007   3.5% by 2008   4.0% by 2009   an additional 1.0% each year afterward until DOER ends add’l reqmnts 2007 ACP $57.12 /MWh Utilities have paid ACP every year since 2003 Wheelabrator Technologies Inc. A Waste Management Company Think Green.®

Renewable Portfolio Standards “New” renewable energy Alternative Compliance Payment At what level should ACP be set? High enough to provide incentive for utilities to search out and provide incentives for new renewable capacity Experience of other states with ACPs Uses for ACP funds? Development of new, promising technologies; seed money for construction of new facilities; etc. Wheelabrator Technologies Inc. A Waste Management Company Think Green.®

Renewable Portfolio Standards RPS must help protect existing base of renewable energy generation Set at current percentage of renewable generation Increase requirement as “new” capacity transitions to “existing” capacity Wheelabrator Technologies Inc. A Waste Management Company Think Green.®

Renewable Portfolio Standards Setting a Renewable Portfolio Standard 1.      How should a renewable portfolio standard be set? a.       Based on a megawatt goal? b.      Based on a percentage of peak generation goal? c.       What renewable technologies should qualify toward meeting the goal? 2.      What vintage of renewable generating units should qualify toward meeting the goal? 3.      What is a reasonable level for the goal? a.       What amount of renewable generation is achievable in Florida? Wheelabrator Technologies Inc. A Waste Management Company Think Green.®

Renewable Portfolio Standards What is a reasonable level for the goal? Current Renewable Generation in Florida 1* - 2.5% * Florida’s Energy Plan Goal: ? Governor’s goal – 20% Over what time period? How aggressive? Wheelabrator Technologies Inc. A Waste Management Company Think Green.®

Renewable Portfolio Standards http://www.dsireusa.org/documents/SummaryMaps/RPS_Map.ppt Wheelabrator Technologies Inc. A Waste Management Company Think Green.®

Renewable Portfolio Standards Examples of other states New Jersey 2004 – 3.25% 2021 – 22.5% Connecticut 2006 – 5% 2020 – 27% (includes customer-sited combined heat and power (CHP) systems; 2) electricity savings from conservation and load management programs; and 3) systems that recover waste heat or pressure from commercial and industrial processes) Wheelabrator Technologies Inc. A Waste Management Company Think Green.®

A Waste Management Company Wheelabrator Technologies Inc. A Waste Management Company Think Green.®