Operational Experience of EcoElectrica L.P. in the Puerto Rico Electric System CIAPR General Meeting August 5, 2010 – San Juan, PR Carlos A. Reyes-Berríos, P.E. General Manager - Operations

Objectives Facility Overview EcoElectrica in the System Operational Experience Gas Natural Impact on Production Costs Environmental Results TSA Functional Description

Facility Overview Facility Staffing Commercial 507MWnet Combined Cycle Power Plant LNG Import Terminal and Re-gasification station 2MGD Desalination Water Production Plant Staffing 77 total number of EcoElectrica Employees 67 positions in the O&M Organization 40 positions form O&M allocated to the power plant, .07/MW Commercial 100% contracted with PREPA for 22 years 93% availability / 45% thermal efficiency contracted guarantee Facility dispatched from 54% to 100% Energy priced fixed annually up to 76% dispatch, above 76% dispatch price is based on spot offers

EcoElectrica in the System First IPP integrated to the electric system and only power plant on natural gas. 9% of the electric system installed capacity of 5,700MW. 13 – 15 % of the island annual energy production of 23,000MkWhr. Environmentally cleanest and best thermal efficiency power plant on the island. Ancillary services provider as any other power station on the electric system. One of 10 LNG Terminal’s in US Borders.

Operational Experience Power Plant Stable plant reliability, achieving contractual availability. Base loaded power plant with daily load following dispatch. > 90% service factor, ~80% capacity factor. ~ 80k EBH, 3rd W501F fleet leaders Three fuel capability, on-line fuel transfers from NG to Diesel and from NG to LPG. LNG Terminal ~99.5% annual availability with >99.9% reliability. 128 LNG ship un-loadings w/out safety incidents. Exceeding security requirements from Federal Agencies Annual inspections from FERC and USCG consistently w/out material findings or recommendations.

LNG Terminal Receiving Storage Re-gasification 136,000mt3 tankers 24 hrs total unloading time Storage 160,000mt3, Double containment Un-cooled / atmospheric pressure Re-gasification 2 X 93 MMSCFD, heat source from CT’s inlet air Controlled temperature rise from -256oF to 40oF

Production Costs Fuel Cost Thermal Efficiency O&M Costs NGCC – low O&M cost / high efficiency Fuel Cost + Efficiency + O&M Cost Fuel Cost accounts for 49% to 92% of the total production cost of the Power Plant Thermal Efficiency energy conversion factor from fuel to electricity normalized to the best thermal performance in the system this component accounts up to 38% of the total production cost O&M Costs accounts for 26% to 5% of the total production cost of the Power Plant on a gas turbine burning natural gas vs oil#2 the O&M cost is reduced by a factor of 30%. Oil#2 SC – high fuel cost / low efficiency Coal CFB – high O&M / low fuel cost PR electric system cost estimates. Based on actual fuel cost and IPP’s PPOA base energy cost.

Actual gap from crude to LNG is above 40% including estimated Production Costs Actual gap from crude to LNG is above 40% including estimated transportation costs.

Environmental Natural Gas Inherent Controls Fossil fuels lowest CO2, 30% less than Oil and 43% less than Coal. Nitrogen Oxides is less than 25% than oil. Almost zero Sulfur & Particulates. Controls Steam injection and SCR with ammonia injection for NOx reduction. 6 – 22 - 3

Results Reliable operation in compliance with PPOA warranties and within best 10% of comparable operations worldwide. Excellent relation with Federal and Local Regulating Agencies. Perfect safety record on the LNG Terminal Management. ~ 7 years w/out lost time accidents in the facility. OSHAS 18,001 certified facility. 2008 EPA Environmental Excellence Award. ISO 14,001 certified facility. Best O&M team in the sector.

TSA Functional Description PREPA & EcoElectrica’s DOR LNG Sourcing Receiving Puerto Rico Electric Power Authority EcoElectrica L.P. Re-gasification Storage

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