1. Energy Recovery System

2. Background of LVMWD LVMWD established in 1958. 122 square mile service area. Potable water to about 65,000 people and wastewater treatment for about 85,000 people.

3. Water Reclamation Facility Rancho Tapia

4. Digesters

5. Enclosed Ground Flare

6. Power Purchase Agreement RFP in 2008 US Energy was selected 2/2009 300kW IC Engine/Generator Self-generation Grant $280K Lease agreement 20 year PPA at 6.49 cents/KWh Escalation at 1.8% first 10 years Escalation at 1.2% second 10 years $75,000 performance security deposit

7. Energy Recovery Service Terms LVMWD not obligated to buy electricity not meeting specifications. Company will not sell electricity to anyone other than LVMWD w/out written consent.

8. Challenges for the Project SCAQMD Permitting Emission Modeling

9. Energy Recovery Building

10. Chiller

11. Gas Conditioning Units

12. Engine and Generator

13. Electric Panel

14. Emission Stanch

15. Heat Exchanger

16. Future Renewable Energy

17. Infinia Solar

18. Federal Energy Regulatory Commission FERC issued a landmark order on Oct. 21 that will greatly enhance the economic benefits water agencies and others receive under the State’s Feed-In Tariff program. The ruling paves the way for the California Public Utilities Commission (PUC) to increase rates that third-party power generators receive for the energy they sell back to the grid from the current 8 cents per kilowatt-hour (kWh) to the 16 cents to 20 cents that utilities receive for comparable energy under the State’s Renewable Portfolio Standard.

19. FERC Purchase Option Purchase Option ($280k to $50K)

20. Questions