MIRAMAR LANDFILL GAS POWER PLANT PROJECTS MP 3

MIRAMAR LANDFILL GAS POWER PLANT PROJECTS (MP 3) A PARTNERSHIP BETWEEN THE CITY OF SAN DIEGO, FORTISTAR METHANE GROUP, LLC AND THE MARINE CORPS AIR STATION MIRAMAR (MCASM) February 2010 Methane Group, LLC MCASM

MIRAMAR LANDFILL 2

History • Navy had the responsibility for the LFG and the APCD violations • City leased and operated the Landfill • Both thought it was the others obligation to install the LFG system • In December 1995 City contracted with Minnesota Methane/NEO (Fortistar) to install LFG system, MBC Cogeneration and NCCF • City received • • • Free Landfill Gas (LFG) system Free LFG system operation and maintenance Free Electricity on the Landfill Significantly reduced Electricity costs at MBC and NCWRP 8% Royalties on Sales to NCWRP 3

WHY MIRAMAR LANDFILL GAS POWER PLANT PROJECTS (MP 3)? Ø ESD Needs Additional LFG Wells Ø Marines Want Renewable Energy at MCASM Ø NCWRP Needs Additional Onsite Generation Capacity to Control Demand Cost and for its Growing RW Electricity Loads Ø MBC Wants Switchgear Modifications Ø City Receive 8% Royalties on New Fortistar 4

LFG WELL 5

LFG Well Cross Section 6

6. 4 MW MBC COGENERATION SYSTEM Plus 3. 2 MW for MCASM 7

NORTH CITY COGENERATION FACILITY 8

3. 8 MW “SMALL POWER PRODUCER” PLUS 1. 6 MW CITY OWNED NCCFE (SEPARATE CONTROL) 9

NORTH CITY COGENERATION FACILITY EXPANSION 10

THE NORTH CITY WRP NCCFE (City Owned) NCCF 11

FIVE CAT 950 k. W 3500 Series Engines 12

MP 3 Ø City BENEFITS § 8% of Fortistar’s Energy sales to MCASM and NCCFE are split 50/50; Hard Return ESD/Public Utilities § Approximately 80 LFG Wells § LFG at reasonable rates for NCCFE (City Owned) (1. 6 MW of Renewable Electricity) § Switchgear modifications at MBC to increase plats reliability Ø MCASM § 3. 2 MW of Renewable Electricity Ø Fortistar § New Government Customer for 3. 2 MW of Electricity § Additional Gas Customer (NCCFE) § 7 year Extension to existing Agreement to accommodate Marines’ requirements to 2026 13

More Info. NCCF at the NCWRP is Currently Saving Public Utilities $1. 8 M/year & is Providing 8% of this amount to City Revenues MBC Cogen is Currently Saving Public Utilities $2. 0 M/year 14

More Info. ESD has received $7. 4 M in LFG Well installations Free LFG well field operations and maintenance worth over $400, 000/year plus Free Electricity on Landfill 15

This Amendment Will Add approximately 80 LFG Wells needed in the West Phase II Landfill Provide Fuel for the City’s NCCFE, thus Lowering NCWRP’s Electricity Costs Provide use for the methane, a strong GHG by allowing Fortistar to Sell Renewable Electricity to MCASM and LFG to NCCFE, and providing revenues to the City Ensure continuation of the operational Savings that Environmental Services Department and Public Utilities Department are now experiencing Establishes favorable City conditions for future LFG Use 16

Thank you Methane Group, LLC MCASM 17