1. COMBINED HEAT & POWER J.R. Simplot Mountain Home, Idaho

4. COMMON POWER CYCLE THERMAL EFFICIENCIES Simple Steam Cycle25% - 35% –Generate steam at high pressure exhaust steam from steam turbine to condenser. Simple Gas Turbine30% - 35% –Gas Turbine driven generator with exhaust to atmosphere. Combined Cycle50% - 60% –Gas Turbine driven generator with exhaust used to make high pressure steam, and high pressure steam used to generate additional electricity in steam turbine. Gas Turbine-Process Steam75% - 85% –Gas Trubine driven generator with exhaust used to make low pressure steam for process.

5. COMBINED GAS TURBINE PROCESS STEAM SYSTEM

6. ENERGY REQUIREMENTS FOR SIMPLOT ROLLING MILL (without combined heat & power) 475 Therms of natural gas per hour to generate 38,000 lbs of process steam. –Natural Gas budget of $1,995,000.00 per year 1500 kw to operate the rolling mill equipment. –Electric budget including demand of $693,000.00 per year. Total utility budget of $2,688,000.00 per year. CAN A COMBINED HEAT AND POWER PLANT REDUCE THE UTILITY BUDGET?

7. Pictured are twin GE-5 Gas Turbines. The photographer has his back to the Heat Recovery Boiler, although the steam line can be seen at the top center of the picture. We are looking towards the generator, and the gas line can be viewed at the bottom center yellow pipe.

8. INCREMENTAL COST FOR ELECTRICITY 5.5 MW GT10 MW GT Electricity from Gas Turbine5,500 kw10,000 kw Electricity from Steam Turbine0 kw3,000 kw Total Electricity5,500 kw13,000 kw Total Steam From Waste Heat Boiler31,000 lbs/hr60,000 lbs/hr Average Process Steam38,000 lbs/hr Steam to steam turbine0 lbs/hr22,000 lbs/hr Cost of Natural Gas$0.50/therm Total Natural Gas Requirements Therms/hr6451115 Gas Required for process steam load Therms/hr475 Gas dedicated to generation of electricity Therms/hr 170640 Fuel Cost for electricity$0.0155/kwh$0.0246/kwh Maintenance cost for electricity$0.0045kwh$0.0025/kwh Operating Cost for electricity (no capital reduction) $0.0200/kwh$0.0271/kwh Capital Budget for the system$6,320,000$14,526,000

11. EXTERNALITIES ASSOCIATED with CHP PROJECTS Added Positive Economic Viability to the Host Facility Dual Use of an Energy Source Added Employment Added Property Tax Rate Base Added Income Tax Revenue Stream Internal Electrical consumption may free resources and help to relieve Transmission Constraints Added resource to the Regional Generation Pool Net addition of NOx and CO2 may be less Initial Generation Pricing may exceed Local Utility WACOE but is set by State PUC and is therefore, Just and Reasonable and is based upon the Avoided Cost as set in Open Hearings. Return on Capital Invested and Payout may not meet Host Company Guidelines especially during constrained economic times.

12. FINANCING and OWNERSHIP OPTIONS PURPA Qualified Facility Host Facility Third Party with Steam Contract to Host –Partnership with Local Electric Utility (They can own up to fifty percent of a QF.) –Adds effectively to their Rate Base