THE CPV VALLEY ENERGY CENTER

(1)

T

HE

CPV

V

ALLEY

E

NERGY

(2)

CPV

V

ALLEY

E

NERGY

C

ENTER

A. E

XECUTIVE

S

UMMARY

1.0 Project Abstract

CPV Valley Energy Center, located in Orange County, New York, is an technologically-advanced clean combined-cycle power generation project that is expected to deliver over $270 million of annual reductions in electric costs for New York ratepayers, significantly reduce harmful pollutants by displacing power generated from older, dirtier generation sources, add dispatch flexibility to spur intermittent renewable resource development and spur over $1 billion in private investment in the local economy. Following over 4 years of development activity, the CPV Valley Energy Center is nearing completion of all major permits to start construction and represents an immediate actionable project that could meet the objectives and goals of the Energy Highway initiative.

2.0 Executive Summary

The CPV Valley Energy Center is 650 MW advanced stage development project that meets the objectives and goals of the Energy Highway initiative set forth by Governor Cuomo. The CPV Valley Energy Center offers New York an opportunity to build a stronger economic future as well as enhance and modernize New York’s electric power system.

The CPV Valley Energy Center offers New York:

• $273 million of average annual reduction in electric costs for the ratepayers of New York, • Reduction in NOx emissions, SOx emissions, and Mercury emissions by approximately 816 tons,

325 tons and 4 lbs per year, respectively,

• Reductions in 494,000 tons per year of greenhouse gas emissions due to the high efficiency of combined-cycle generation and the displace of older, less efficient units, as well as the water conscious design of the CPV Valley Energy Center will make a positive impact on New York’s environmental profile,

• Over $1 billion of economic benefit to the local economy from the construction and long-term operation of the CPV Valley Energy Center,

• 1,890 of new jobs from the construction of this new $900 million state-of-art generation facility,

• 131 jobs during the operating life of the project, and

• Enhancements for the long-term reliability of New York’s electric system through the addition of new dual fuel generation and transmission capabilities, thereby reducing New York’s dependency on older, less efficient generation technology, especially in densely populated areas.

CPV Valley Energy Center is in an advanced stage of development with the SEQRA Findings Statement being adopted by the Lead Agency in May of 2012, and a number of interconnection and deliverability studies completed by the New York Independent System Operator (NYISO).

The CPV Valley Energy Center represents an immediate actionable project that could begin construction in 2013 for an in-service date in 2016. This opportunity provides a low-risk option for New York to make meaningful reductions in the cost of electricity for New York ratepayers while improving the air and water quality in the state and creating a stronger economy.

(5)

CPV

V

ALLEY

E

NERGY

C

ENTER

New York Energy Highway 2 | P a g e

B. R

EQUIRED

I

NFORMATION

1.0 Respondent Information 1.1 Company Information

CPV is pleased to submit information regarding its proposed CPV Valley Energy Center (CPV Valley or Project) in response to the Energy Highway Task Force Request for Information (RFI). Specific questions regarding CPV, the Valley project and any information contained herein should be directed to:

Mr. Steven Remillard

Competitive Power Ventures, Inc. 50 Braintree Hill Office Park, Suite 300 Braintree, MA 02184

Tel: (781) 817-8970 www.cpv.com

1.2 CPV Overview and Experience

CPV is a leading North American electric power generation development and asset management company headquartered in Silver Spring, Maryland, with offices in Braintree, Massachusetts; San Francisco, California; and Toronto, Canada. CPV has concentrated on clean energy, developing wind‐powered and high efficiency natural gas generation to meet growing electric demands. CPV is majority owned by Warburg Pincus, a leading global private equity firm that has invested over $40 billion in approximately 650 companies worldwide. For more information on CPV, please visit the CPV

website a

CPV’s management team has a proven track record in the development, financing and operations of numerous power projects throughout the US and abroad. CPV's management team has successfully developed over 20,000 MW of power projects that are currently in operation, and have acquired or monetized more than $10 billion of generation assets. The experience and leadership of the CPV management team has established CPV as a premier electric power generation development and asset management company in North America.

CPV specializes and focuses on three (3) power generation business lines:

1.) Natural Gas-Fired Generation - CPV is actively developing natural gas-fired generation projects in select markets in North America. CPV’s thermal development group is leading the development and/or construction of over 5,800 MW of natural gas-fired projects in various stages of development of which:

• 1,458 MW are under or have been awarded long term contracts or PPAs with Load Serving Entities (LSE).

•728 MW are currently under construction with COD projected for Q1 2013.

2.) Renewable Energy Development – CPV’s renewable energy development and construction portfolio includes approximately 3,600 MW (gross) of wind power projects across North America, of which 1,125 MW (gross) are located within Canada. CPV’s renewable portfolio consists of:

• 317 MW under long term Power Purchase Agreements (PPA) • 152 MW in operation

(6)

CPV

V

ALLEY

E

NERGY

C

ENTER

3.) Asset Management – CPV’s asset management portfolio consists of over 4,200 MW of operating natural gas-fired generation assets in North America, with an additional 800MW in construction. CPV’s asset management division also manages the construction and startup for CPV’s thermal and renewable energy projects.

CPV’s management and development team has extensive experience in the New York energy markets. Members of CPV’s senior management team were responsible for the development of the Athens Generation Facility (1,080 MW combined-cycle located in Athens, New York), which was one of the first power projects permitted under New York’s former Article X power plant siting law. CPV currently manages the Athens Generating facility. CPV continues to build on this track record and experience with the successful development of the CPV Valley Energy Center in Orange County New York. This experience in navigating challenging permitting regimes has led to CPV Valley becoming one of the state’s first power projects approved under New York’s State Environmental Quality Review Act (SEQRA) with a local board acting as Lead Agency. Recent achievements of CPV include the following:

2012

• CPV Valley Energy Center concludes SEQRA with the Town of Wawayanda Planning Board unanimously passing a resolution adopting its Findings Statement for the CPV Valley Energy Center.

• CPV’s St. Charles Energy Center project was awarded a long-term contract resulting from a competitive state sponsored solicitation process in Maryland.

2011

• Financed $263 million for CPV’s 166 MW CPV Cimarron wind facility, which through a competitive procurement process was awarded a 20-year PPA with TVA.

• Financed $800 million for the CPV Sentinel (728 MW) gas-fired generation facility, which through a competitive procurement process was awarded a 10-year PPA with Southern California Edison and is currently under construction.

• Project Financial International and Project Finance Magazine recognized the financing of CPV Sentinel as the “Americas Power Deal of the Year” and “Single Asset Deal of the Year”, respectively.

• The CPV Woodbridge Energy Center project was selected out of 31 proposals by the New Jersey Board of Public Utilities as one of three electric generating projects awarded contracts for its output.

2010

• Financed and constructed $230 million for CPV’s 252 MW CPV Keenan wind facility, which through a competitive procurement process was awarded a 20-year PPA with Oklahoma Gas & Electric Co.

2.0 Project Description

2.1 Overview of the CPV Valley Energy Center

The proposed CPV Valley Energy Center is a nominally rated 650 MW combined-cycle facility located in the Town of Wawayanda, Orange County, NY. The Project is comprised of two (2) F-class gas turbines and one (1) steam turbine. This highly efficient configuration will operate primarily on natural gas, to be supplied through the Millennium Pipeline, but will also be capable of operating on ultra-low sulfur diesel (ULSD) as a backup fuel. The Project is electrically located within the New York Independent System Operator’s (NYISO) Zone G, and will interconnect to New York Power Authority’s (NYPA) 345kV electric transmission line (Line 42) between the Coopers Corners and Rock Tavern

(7)

CPV

V

ALLEY

E

NERGY

C

ENTER

substations. A rendering of CPV Valley along with a more detailed project description is provided in Appendix A – Project Description.)

Transmission Enhanced Option - In addition to the CPV Valley Energy Center, CPV can provide a “Transmission Enhanced Option”. This is a transmission upgrade that uses economies of scale to oversize the transmission upgrades beyond what is required for CPV Valley’s capacity deliverability to further increase transmission capability over existing lines and lower congestion costs in the Lower Hudson Valley and New York City. Specifically, the Transmission Enhanced Option is based on increasing the amount of series compensation on the Leeds-Hurley transmission line beyond what is required for CPV Valley’s interconnection. The Transmission Enhanced Option increases the transfer capability across the UPNY-SENY interface by approximately 450 MW. The benefit of this solution is an opportunity to build on CPV Valley’s ratepayer benefits at a low incremental cost by increasing the capability and utilization of its existing transmission system to enhance system reliability and access to upstate renewable and conventional generation. This is a “no regrets” opportunity for the New York ratepayers as this option can be in service sooner than a new transmission line can be constructed and would complement future transmission system reinforcements.

2.2 Project Capability

The Project, based on NYISO analysis, will be capable of producing and delivering approximately 680 MW (peak output during summer conditions) of capacity and energy at the point of interconnection at NYPA’s Marcy South 345kV line. The Project has progressed through the NYISO interconnection study process and is currently in the Facilities Study phase, which is the next to last step in the NYISO interconnection process before the execution of an Interconnection Agreement. In addition to the output of the Valley Energy Center, the Transmission Enhanced Option discussed above would provide an additional 450 MW of transmission transfer capability at the UPNY-SENY interface, and therefore, 450 MW of additional flow on the system allowing existing “bottled” generation upstate to flow to the downstate area.

2.3 Project Location

The proposed CPV Valley Energy Center is located on a large undeveloped 122 acre site, but will only use approximately 21 acres of the site. The remaining portion of the property will remain

undeveloped land to provide significant buffer from abutting property owners. The project site is located in the Town of Wawayanda, Orange County, New York. The broader 122 acre site parcel is bounded by Interstate-84 (I-84) to the south, Route 17M on the east, and Route 6 to the north and west. Portions of the 122 acre site were used previously for agricultural purposes, while other portions are wooded. The property is currently zoned Mixed Commercial and the development of power generation facility is permitted via a special use permit. From an electrical perspective, CPV Valley is located in Zone G of the NYISO’s electrical zones. Please refer to Appendix B – Site Location and Maps, which contains a map and aerial view of the project site, as well as, a map showing CPV Valley’s location in Zone G.

2.4 Fuel Source and Availability

CPV Valley is a dual fuel capable facility. The Project is designed to operate predominately on safe clean natural gas, as well as, fuel oil for reliability purposes, which is critical for the long-term reliability of the New York energy system. The primary fuel source, natural gas, is readily available from the Millennium Pipeline. In 2010, CPV entered into a commercial agreement with Millennium Pipeline LLC (“Millennium”) to provide the natural gas connection from the existing Millennium pipeline to the Project. While there will be new construction associated with the lateral connecting the Project to the Millennium pipeline, there will be no major infrastructure upgrades required to provide natural gas to the Project. The construction of the lateral and CPV’s firm transportation service through Millennium provides for a stable supply of natural gas to fuel the Project. With the

(8)

CPV

V

ALLEY

E

NERGY

C

ENTER recent finds of natural gas reserves, the long-term outlook for natural gas supply is more robust than ever and prices are projected to remain low and stable for the foreseeable future.

As mentioned previously, the Project will be capable of operating on an alternate fuel, if needed. If natural gas supply is interrupted, the Project will be able to switch to ULSD fuel oil and continue to provide electricity to the New York electric system. This feature is of significant importance when considering the need to maintain electric supply to customers in emergency situations. New York’s Public Service Commission (PSC) has long been an advocate of electric generating facilities having dual fuel capability for reliability purposes.

2.5 Commercial Operation Date & Schedule

CPV Valley can be operational as early as first quarter of 2016, based on the Project entering into a suitable long-term off-take contract by October 2012 to support financing. The Project is in an advanced stage of development with many of the major development milestones achieved. Most notably, CPV Valley completed the SEQRA process on May 23, 2012 with Town of Wawayanda Planning Board, acting as Lead Agency, adopting its Findings Statement for the CPV Valley Energy Center. A more detailed discussion of the project schedule is provided in Section 7 herein. A Gantt chart depicting the project schedule is provided in Appendix C – Preliminary Project Schedule.

2.6 Experience, Market Availability and Suitability of Project Technology

CPV Valley F-class turbine combined-cycle technology is proven, with over 1,000 turbines deployed throughout North America. The availability of these units is typically in the low 90 percent range with a forced outage rate below 3%. These demonstrated reliability and availability characteristics of this technology have made F-class turbine combine-cycle one of the most proven technologies for power generation. CPV has extensive experience with the operation of combined-cycle facilities. CPV’s asset management group has experience in managing over 5,000 MW of generation, of which a majority is combined-cycle generation.

CPV Valley’s F-class turbine based technology is consistent with the State of New York’s current generation portfolio. According to a report issued by the NYISO titled 2012 Load & Capacity Data: Gold Book, combined cycle generation is responsible for supplying approximately 8,960MW of New York’s summer capability, which is more than any other form of generation identified in the NYISO Gold Book (Table III-3a: Capability by Zone and Type – Summer).

3.0 Project Justification

The Project utilizes cutting-edge technology to increase the efficiency of power generation, create greater reliability through fuel diversity while cutting air pollution in the densely populated downstate area. Furthermore, not only does the Project create jobs and opportunities for New Yorkers, it

reduces costs to electric ratepayers. The justification for CPV Valley is further detailed herein.

3.1 Maximize New York State electric ratepayer value in the operation of the electric grid

CPV Valley is expected to reduce ratepayer’s costs by approximately $273 million per year on average over the first 15 years of the Project’s life. CPV engaged PA Consulting to conduct a third party independent analysis of the potential benefits to ratepayers if the CPV Valley Energy Center was built. The analysis includes the electric and capacity revenues received from the project net of the capital and operating costs. In addition, the analysis included the change in the energy and capacity prices across NY-ISO relative to the energy and capacity costs if CPV Valley was not built.

CPV Valley with the Transmission Enhanced Option is expected to further reduce energy prices for ratepayers across the NYISO by approximately $14 million per year on average over the first 15 years of the Project’s life.

(9)

CPV

V

ALLEY

E

NERGY

C

ENTER

The ratepayer benefits are primarily caused by the addition of a highly efficient generating facility inside a densely populated and highly congested region, thereby reducing the overall market cost of electric generation to New York’s ratepayers. The Transmission Enhanced Option provides New York ratepayers a low cost option to increase the capability of the existing transmission system through incremental transmission capacity that allows the ratepayers access to stranded conventional generation and upstate renewable generation.

3.2 Contribute to an environmentally sustainable future for New York State

The high efficiency of CPV Valley and its state-of-the-art emissions control technology will make this facility one of the cleanest in the state of New York. The Project is expected to reduce pollution across New York, due to the operation of CPV Valley as an alternative to the older less efficient and dirtier generation in existence today. Specifically, based on PA Consulting’s independent study, building CPV Valley will lower NOx emissions, SOx emissions, and Mercury emissions across the state of New York by approximately 816 tons, 325 tons and 4 lbs per year, respectively, during the first 15 years of operation. Furthermore, building CPV Valley will lower CO2 emissions across PJM, New York and New England by approximately 494,000 tons per year for the first 15 years of operation. Please refer to Appendix D – Emission Comparisons for a comparison of CPV Valley’s emission to other traditional generation technologies.

3.3 Assure that long-term reliability of the electric system is maintained in the face of major system uncertainties.

The reliability of the system is directly related to maintaining sufficient generation resources to meet the demands of New York’s customers, as well as an adequate transmission system to transmit electricity to New York’s customers. The pending environmental regulations and low gas prices continue to raise question about the future of older, less efficient generation resources, and whether these resources will be economically viable over the long-term to continue to supply New York’s energy needs. The addition of Valley’s generation capacity in the Lower Hudson Valley provides New York with the certainty of new clean generation to replace retiring generation. The addition of CPV Valley and its Transmission Enhanced Option provides New York with a significant increase in new generation from the Project, as well as access to bottled generation that currently is not deliverable throughout the system.

Over the years, various NYISO studies have identified the need for additional generation and

transmission in the Lower Hudson Valley region to address reliability concerns under certain planning scenarios. With the potential retirement of the older units discussed above and an economic

recovery, CPV Valley provides New York with certainty and options to improve the long-term

reliability of the electric system. Also, as discussed previously in Section 2.3, the Valley Energy Center offers additional system reliability enhancement through its ability to operate on fuel oil should New York experience any interruptions in natural gas supply.

3.4 Encourage development of utility-scale renewable generation resources throughout the State

CPV Valley utilizes advanced combined-cycle technology, which is one the most efficient and flexible generation technologies available today. The duct firing capability for peak power output along with the fast ramping capability of the facility provide the NYISO’s system operations significant flexibility and enhanced performance. This flexibility is essential for supporting intermittent solar and wind generation.

The Transmission Enhanced Option discussed previously would also create approximately 450MW of incremental transmission capability through the UPNY-SENY interface. This incremental transfer capability could be utilized by existing and/or new utility-scale renewable resources to be deliverable throughout the state (and more specifically downstate).

(10)

CPV

V

ALLEY

E

NERGY

C

ENTER

3.5 Reduce constraints on the flow of electricity to, and within, the downstate area, and expand the diversity of power generation sources supplying downstate

The transmission system upgrades associated with CPV Valley reduces constraints in the Leeds Hurley transmission corridor, and therefore, makes the additional 680 MW of capacity from the Project available to the downstate region. This additional 680 MW of clean and highly efficient generation can reduce the reliance on other downstate facilities, such as peakers or oil fired units, during critical periods of the year. In addition, the Transmission Enhanced Option, in conjunction with the

construction of CPV Valley, is capable of providing approximately 450 MW of incremental

transmission capability on the UPNY-SENY interface. This additional transmission transfer capability could facilitate the flow of existing bottled upstate natural gas and renewable generation sources to the downstate area. This increased flow from these other upstate generation sources expands the diversity of generation supply available to the downstate area.

3.6 Increase efficiency of power generation, particularly in densely populated urban areas

As a state-of-the-art combined cycle facility, Valley will be cleaner and more efficient than existing generation in New York’s fleet. The addition of more efficient generation will increase New York’s overall system efficiency, or in generic terms, reduce the amount of fuel used to produce the same amount of electricity. Cleaner and more efficient generation will tend to displace older, less efficient generation units. For example, Valley will use approximately 7,000 Btu’s of fuel to produce 1 kWh of electricity (under full load conditions without duct firing), whereas it is expected that on average the cost of electricity across the densely populated lower Hudson Valley is based on using approximately 11,300 Btu’s of fuel to produce 1 kWh of electricity during an on-peak period. The amount of fuel to make electricity is referred to as the “heat rate”. With the addition of CPV Valley as a deliverable generation resource, New York’s cost of electricity per fuel cost improves by approximately 1.6% in 2015 across the entire densely populated Zones G, H and I according to the PA Consulting analysis.

3.7 Create jobs and opportunities for New Yorkers

CPV Valley will create over 500 direct newconstruction jobs at the peak of construction. In addition, the operation of the facility will create 24 new permanent high-paying jobs. CPV engaged an

independent third party to evaluate the economic impacts of CPV Valley. Based on the results of socio-economic analyses, the 29 month construction period will create approximately 1,889 jobs, including direct, indirect and induced jobs. It is estimated that throughout the operating years CPV Valley will create 131 jobs, including direct, indirect and induced.

In addition, the Project will provide a boost to the local economy through the direct and indirect purchase of goods and services to support the construction and operation of the Project. This increased activity will support the local business and create additional jobs. Detail of the job creation is outlined in Section 12.2 of the Additional Information section.

3.8 Apply advanced technologies that benefit system performance and operations

CPV Valley’s Transmission Enhanced Option utilizes series compensation technology to maximize the performance and capability of the existing transmission system. This is a no regrets, low cost opportunity for New York to optimize the performance and operation of New York’s existing transmission infrastructure. This option is can be placed in service sooner than other transmission upgrades that require the construction of new lines. This option would also complement and be compatible with future larger transmission reinforcements.

3.9 Adhere to market rules and procedures, and make recommendation for improvements as appropriate

CPV will adhere to market rules and procedures and would be entirely consistent with FERC, NY State and NYISO laws, rules, regulations and procedures. CPV management’s development of the Athens

(11)

CPV

V

ALLEY

E

NERGY

C

ENTER

Generation facility and current management of 1,080MW in New York’s electric and gas markets demonstrates its understanding of the market rules and procedures.

CPV Valley’s successful navigation of the NYISO interconnection process from the NYISO’s Feasibility Study through its Class Year Facilities Study process is further demonstration of CPV’s experience and ability to adhere to New York market rules and procedures. In the course of completing the System Reliability and Impact Study (SRIS) process, CPV Valley impacts have been quantified and were determined to be minimal. CPV Valley’s completion of the Class Year Facilities Study determined the Project would be deliverable with relatively minor upgrades on the system.

Finally, CPV’s Valley Energy Center has successfully navigated New York’s SEQRA process. Understanding and adhering to state procedures was fundamental to CPV completing the SEQRA process for the CPV Valley Energy Center in May of 2012.

4.0 Financial

4.1 General Financial Structure

The Project is owned by CPV Valley Energy Center, LLC, which is an indirect wholly owned subsidiary of Competitive Power Ventures Holdings, LLC (CPVH). CPV is majority owned by Warburg Pincus, with participation by CPV management and other individual accredited investors. Since the late 1980's, Warburg Pincus has invested more than $6 billion in energy companies around the world and has backed CPVH for over a decade.

4.2 Financing Structures

CPV Valley’s finance plan addresses the Project’s three distinct periods of activity: development, construction, and operations. During development, CPV Valley’s sponsors will contribute the required equity to fund 100% of the capital needs of the Project. Raising debt financing for the CPV Valley Energy Center is predicated on a solution beyond that currently offered in the NYISO market. CPV Valley is flexible and willing to work with the state of New York in developing a structure that provides the greatest value to the New York ratepayers. However, in order to effectively raise the private capital to start construction of the CPV Valley Energy Center, CPV Valley would require some form of surety of future revenues in the form of a long-term contract.

Upon commencement of construction, which is expected coincident with the financial closing of credit facilities for CPV Valley, construction funding will be sourced through a combination of non-recourse credit facilities provided by third party lenders and equity contributed by Project sponsors. The debt funding during construction is projected to be in the form of either a commercial bank mini-perm construction loan converting to a term loan upon the Commercial Operations Date (COD), or a long-term construction/term financing executed in the institutional/private placement markets. The commercial bank market and the institutional/private placement markets each represent viable financing alternatives and the competitiveness of each will continually be assessed as the Project nears financial closing.

The foregoing provided a summary of potential financing structures based on assumptions regarding the surety of the revenue stream. The ultimate contractual structure of the revenue stream and future market conditions will shape the actual financial structure. However, CPV has successfully put into construction multiple clean generation projects by raising over $1 billion of private financing in the past 12 months and feels confident that with an effective long-term contract it will be possible to raise the necessary financing to construct CPV Valley.

5.0 Permits and Approval Process

CPV Valley has achieved one of the most significant milestones in the New York SEQRA approval process. CPV Valley’s SEQRA Findings Statement was adopted by the lead agency in May of 2012. Since New York law precludes state agencies from taking action until SEQRA is complete, other project

(12)

CPV

V

ALLEY

E

NERGY

C

ENTER permits were not able to be issued. With SEQRA now complete, the other state permits are now able to be issued.

The Project submitted a Full Environmental Assessment Form (EAF) on March 10, 2008, formally commencing the permitting process. Since that time, the Project has achieved many milestones and advanced the permitting of the Project to a point where it is now nearing completion. A complete list of permits and approvals, as well as their status can be provided upon request; however, the

following is a brief summary of the key permits, approvals and their status.

5.1 New York State Environmental Quality Review Act

CPV Valley completed the NY SEQRA process earlier this month. CPV Valley began the SEQRA process on March 10, 2008 with the submittal of the EAF, and has advanced through the process with the Town of Wawayanda Planning Board acting as Lead Agency. Most recently on May 23, 2012, the Lead Agency passed a unanimous board resolution adopting the Findings Statement for the CPV Valley Energy Center. This was the final step in the SEQRA process and allows other state entities to issue their respective permits associated with the Project.

5.2 Air Permit

CPV Valley is subject to the Clean Air Act’s requirement for a Prevention of Significant Deterioration (PSD) permit review. The Project submitted an application for regulatory agency review in conjunction with the Federal and State PSD and non-attainment new source review requirements and process. The New York State Department of Environmental Conservation (DEC) is reviewing the application as the Environmental Protection Agency (EPA) has delegated DEC the responsibility for reviewing and administering permits in the State of New York. DEC is currently in the process of drafting the air permit.

5.3 Wetlands Permit

CPV Valley has submitted an application for a Joint Wetlands Permit to the DEC and the U.S. Army Corps of Engineers (ACOE). On May 9, 2012 the ACOE determined the application to be complete and commenced the 45 day review period. The DEC has completed the review of their portion of the application and has drafted the permit, which is expected to be issued by the DEC shortly.

Great effort was taken in the design and layout of the facility to minimize impacts to wetlands. As a result, the Project will have a permanent impact less than 0.50 acres; therefore only a Nationwide Permit is required.

5.4 Certificate of Public Convenience and Necessity

On November 14, 2010, CPV Valley filed a Petition with the New York PSC for approval of a lightened regulatory regime and financing in connection with a natural gas electric generating facility and was assigned case number 10-E-0501. On November 24, 2010 the New York PSC issued a notice under New York's Administrative Procedures Act, calling for public comments on CPV's Petition. The public comment period was open for forty-five (45) days and closed on January 10, 2011 without any comments. CPV Valley has provided a supplement to the PSC, highlighting aspects of the project that are more defined than they were at the time of the November 14, 2010 submittal. Upon issuance of the Findings Statement by the Lead Agency under SEQRA, the PSC will be in a position to issue their Findings Statement related to the Petition.

5.5 New York Independent System Operator Interconnect Process

CPV Valley submitted an Interconnection Application to the NYISO on July 5, 2007 and was assigned queue position #251. CPV Valley has completed the Feasibility Study, System Reliability Impact Study and the Facilities Study as a member of Class Year 2009. The Project subsequently entered Class Year 2011, which is the current Facilities Study underway at the NYISO. Upon completion of the Class Year

(13)

CPV

V

ALLEY

E

NERGY

C

ENTER

2011 Facilities Study, the Project will be capable of advancing towards execution of an Interconnection Agreement.

5.6 Site Plan and Special Use

CPV Valley is required to obtain a Site Plan approval and Special Use permit from the Town of Wawayanda. An application for Site Plan approval and Special Use was submitted on [date] to the Town of Wawayanda Planning Board. The plans have periodically been modified to reflect the most current design and also to coincide with the determinations of the Final Environmental Impact

Statement (EIS) developed during the SEQRA approval process. Upon issuance of a Findings Statement by the Lead Agency, the Site Plan permit and approval and Special Use permit will be finalized.

C. A

DDITIONAL

I

NFORMATION

1.0 Property

CPV Valley has obtained site control for the project site and is securing the remaining easements for the electrical transmission and water line from the state, which could not be obtained until SEQRA was complete. A brief description of the real estate (project site as well as laterals) and status are provided below.

1.1 Project Site

CPV Valley controls the 122 acre Project site located in the Town of Wawayanda, Orange County, New York. The Project site is currently undeveloped land, which a portion of was previously used for agricultural purposes and a portion is wooded area. The property is bound by an interstate highway (I-84) and New York State Roadways (Route 6 and Route 17M). This Route 6 corridor has been

identified by the Town for commercial development, and is zoned as such, Mixed Commercial. Please refer Appendix B for an aerial overview of the Project site.

1.2 Electrical Interconnect

The electrical interconnect with NYPA’s existing 345kV electric transmission line (Line 42) is less than one mile from the project site. The property required to allow the Project to interconnect at the Point of Interconnection (POI), consists of a private easement and use of existing rights of way controlled by the state. CPV Valley secured the necessary easement area from the private landowner in 2008 and is coordinating with the New York State Department of Transportation (DOT) to utilize the existing DOT ROW along Route 17M for the underground electric transmission lines connecting the Project to NYPA’s Marcy South transmission line. To facilitate the interconnection, the Project will construct a new substation on private property adjacent to NYPA’s ROW. CPV has obtained the construction and permanent easements to allow for the construction and operation of the 80’ x 50’ substation. The area surrounding the interconnection is developed commercial property.

1.3 Water Supply and Discharge

Consistent with CPV’s ongoing commitment to the environment, CPV Valley will be utilizing the treated water (gray water) currently being discharged by the City of Middletown’s (City) waste water treatment facility. This use of gray water eliminates the need to use New York’s potable water resources for an industrial process. In addition to the purchase of the City’s gray water, the Project will send its wastewater to the City’s treatment facility. The waterlines associated with the supply and discharge water will be located within existing ROW along Route 17M and are approximately 1.5 miles in length. CPV Valley is working closely with the DOT and is in the process of obtaining the necessary approvals.

(14)

CPV

V

ALLEY

E

NERGY

C

ENTER

1.4 Potable Water and Sewer

CPV Valley will interconnect with the exiting Town of Wawayanda Sewer and Water systems, both located adjacent to the Project site along Route 6. The interconnecting pipes will be located in existing ROW along Route 6. CPV Valley is working closely with DOT and in the process of obtaining the necessary approvals.

1.5 Gas Interconnect

The easements required to interconnect the Project with Millennium will be obtained by Millennium. Millennium has identified various routes that maximize existing utility and railroad ROW, while minimizing impacts to private landowners. These routes identified by Millennium range from 7 to 8 miles in length.

2.0 Projected In-Serve Date and Project Schedule

CPV Valley could be in-service in the first quarter of 2016 if the Project were awarded a contract by no later than October 2012. The project permitting is anticipated to be complete by the summer of 2012, and the NYISO interconnection process is projected to be complete with an Interconnection Agreement executed in the fall of 2012. With the permitting complete, an executed Interconnection and an executed long-term revenue contract by October 2012, CPV Valley could achieve an in-service date in early 2016. As discussed previously, financing of CPV Valley is contingent on the long-term revenue contract. Therefore, any projected in-service date will be driven by when the long-term contract is executed. A preliminary project schedule is provided in Appendix C – Preliminary Project Schedule.

3.0 Interconnection

3.1 Interconnection Point

The Point of Interconnection (POI) for CPV Valley is a new gas insulated switchgear (GIS) substation to be located in Middletown, New York along NYPA’s 345kV Marcy South line #42 between Coopers Corners and Rock Tavern substations (NYISO Zone G). The specific location is shown in Appendix E – Point of Electrical Interconnection. This location was studied by the NYISO and NYPA representatives throughout the NYISO interconnection process.

3.2 POI Assessment

As discussed above, the POI location was studied by the NYISO and NYPA representatives for technical feasibility and approved in the Class Year 2009 Facility Study process. The interconnection consists of an underground cable from the Project to a new GIS substation, to be constructed by the Project, located directly adjacent to the existing NYPA ROW. Interconnecting at this location had several positive attributes described below:

Close Proximity to the Project site – The relatively short distance between the POI and the Project helped mitigate any potential environmental impacts associated with the transmission line connecting the Project to the grid. The close proximity of site (less than one mile) to the POI eliminated the potential uncertainty associated with additional approvals required for transmission lines in excess of one mile.

Utilization of Existing ROW – The interconnection route to the POI utilizes mostly Project property and existing state ROW. Only a small amount of private land was needed to facilitate the

interconnection. To eliminate any uncertainty associated with the interconnection route, CPV procured the necessary easements from the private landowner in 2008.

Capacity of Marcy South – Interconnection to Marcy South provides a significant amount of

(15)

CPV

V

ALLEY

E

NERGY

C

ENTER

Marcy South line can accommodate the injection of additional generation capacity from the Project without significant upgrade costs. (Please see discussion on deliverability in Section 8.3.) This POI was studied by the NYISO in detail as part of the Class Year 2009 Facilities Study.

3.3 Deliverability Assessment

CPV Valley will be 100% deliverable throughout New York based on the NYISO’s Facility Study (Class Year 2009). The NYISO’s involved process includes a detailed study of what is required for not only projects to physically connect to the system, but also what upgrades are necessary for a project’s capacity to be available or “deliverable” throughout the state. CPV Valley underwent the NYISO’s extensive study process and as part of the Class Year 2009 Facilities Study, the upgrades and associated costs to be deliverable were determined. This study included many stakeholders such as NYPA, New York State Electric & Gas (NYSEG), Central Hudson Electric & Gas (CHEG) and the NYISO. The study identified the installation of series compensation on the Leeds-Hurley line which will allow CPV Valley full deliverability of its capacity.

The Transmission Enhanced Option increases the amount of the series compensation to provide additional transfer capability beyond the amount needed for full capacity deliverability of CPV Valley. This will provide approximately 300 MW (UCAP equivalent) of additional capacity deliverability service for new renewable generation.

The interconnection to the Marcy South line, which connects the Rock Tavern and Coopers Corners substations, is a preferred location as it will not impact New York’s import capability from neighboring systems, such as PJM or ISO New England, and will address in-state transmission concerns.

4.0 Technical

4.1 Anticipated Life of Components

The Plant is designed to support a minimum of 30 years of operation. Throughout the operating life there is scheduled maintenance at specified periods defined by the major component original equipment manufacturers (OEM). During this scheduled maintenance, various upgrades and

prescribed servicing of the equipment is performed. By following the OEM’s recommended servicing, the equipment is maintained in good working order to ensure long-term operation and availability of the facility. The equipment proposed for CPV Valley is proven technology that has been used throughout the power generation industry for many years. These facilities are designed for, and therefore anticipated that, certain parts or components to be replaced as they approach the end of their life cycle. The replacement of these parts as they wear is factored into the long-term operation of the facility, and helps ensure the Project’s life of 30 or more years.

4.2 Manufacturers Warranties

The Engineer, Procure and Construct (EPC) Contractor will provide a minimum warranty for the facility that will commence on the date the facility is accepted by CPV and will extend for one (1) year with an additional year added for any component that is repaired or replaced during the initial warranty period. The EPC Contractor’s warranty will be based on individual warranties secured from all the equipment suppliers. In addition, CPV will sign a separate Long Term Services Agreement (LTSA) with the turbine OEM which will extend through the first two major turbine outages (approximately 16 years). The LTSA will generally cover the supply of maintenance spares, expediting of replacement parts, supervision of any maintenance or repair work, assistance with maintenance planning, support of component upgrades and any technical consulting needed to support reliable turbine operation. Currently managing over 4,200 MW of gas-fired facilities, CPV is very familiar with and experienced in administering the warranties associated with this type of equipment and power generation facilities.

(16)

CPV

V

ALLEY

E

NERGY

C

ENTER

5.0 Construction

5.1 Opportunity for New York Based Manufacturers

CPV Valley represents a boon to NY based manufacturers who will be essential for the engineering and construction of the Project as well as the on-going operation, refurbishment of parts and maintenance of the facility. CPV Valley will utilize New York based manufacturers to the extent that they are competitive and can meet the design, contracting and general requirements necessary for the task. The socio-economic study commissioned to evaluate the economic impacts to the region from CPV Valley concluded that Orange County and the Hudson Valley region has a large supply of firms in key industries and are well positioned to capture a significant portion of the construction related expenditures.

5.2 Overview of Contractual Arrangements During Construction

CPV intends to construct the Project through two major contracts. One contract will be for the power island, which includes the power generation equipment. This includes the gas turbines, the heat recovery steam generators, and the steam turbine generator. This equipment will be purchased under the power island equipment contract with a major OEM (such as Siemens or General Electric). The actual construction of the Project would be performed under the EPC contract with a major contractor that has experience building similar combined-cycle projects. Through CPV’s development and construction portfolio, CPV has developed ongoing relationships with qualified constructors such as, CH2MHill, Gemma, Bechtel, Shaw, and others, who have experience constructing large scale generation projects in New York. Throughout the development of the Project, CPV has discussed CPV Valley with qualified constructors to determine constructors availability. This contracting approach is very similar to that CPV utilized for the 800MW CPV Sentinel project that was financed last year and is currently in construction.

5.3 Availability of Labor

CPV Valley has had several meetings with representatives of local labor and qualified constructors regarding the availability of qualified labor. In discussions with the Hudson Valley Building Trades Council, CPV has confirmed that qualified labor can be secured for the construction of the Project. In addition, discussions with various contractors have confirmed the availability of labor and bulk material for the construction of the CPV Valley Energy Center.

5.4 Potential Decommissioning

The typical operating life span for a new gas-fired electric generating facility ranges from 30 to 40 years. Once operational, CPV Valley will be one of the cleanest, most efficient and reliable baseload electric generation facilities in the fleet. Following the useful life of the Project, or the useful life of any repowering of the Project, it is expected that the aboveground portion of the Project’s

components would be offered for sale, for salvage or at least scrap. The sale or crap value of the equipment, buildings, and structures on the Project site are anticipated to be more than sufficient to offset the complete cost of demolition of the facility. Moreover, unlike other electric generating facilities using different fuel and technology, CPV Valley will not require mass disposal of any highly toxic or hazardous wastes. This topic was evaluated during the SEQRA process and is contained in the EIS.

6.0 Operational

6.1 Projected Availability

CPV Valley’s 2x1 natural gas combined-cycle design is not only highly efficient and environmentally responsible, but also highly reliable. Natural gas generation is a proven technology with F-class turbines being among the best in terms of strong availability and reliability records. Based on a recent

(17)

CPV

V

ALLEY

E

NERGY

C

ENTER

report prepared by Strategic Power Systems Inc. and presented in an article entitled “Updating gas-turbine reliability, availability”, issued in the 1Q/2012 publication of Combined Cycle Journal (CCJ), F-class turbines achieved a 91.4% availability in 2011, which is consistent for this technology. In addition, F-class turbines have a minimal forced outage rate of approximately 2.6%. It is expected that consistent with historical performance of this technology, CPV Valley will have an availability factor over 90% for dispatch starting with the first year of operation and throughout its useful life.

6.2 Safety and Emergency Considerations

CPV is committed to ensure safety for all workers and community members and has incorporated several design features in the facility, as well as developed procedures, to provide protection against potential safety and/or emergency events. CPV Valley will be equipped with multiple safety systems, including on-site fire protection and suppression systems, which will be designed in accordance with the New York State Fire Safety Code, and the National Fire Protection Association (NFPA) Standard 101 Life Safety Code. The systems will include pull boxes, on-site fire hydrants, gas turbine enclosure fire suppression systems, portable fire extinguishers, an emergency gas shutoff valve and a sprinkler system supplied by a 1,000,000 gallon on-site raw water tank (500,000 gallons dedicated solely to fire protection). Other emergency equipment include an internal public address system, emergency lighting, stack lighting, first-aid kits, spill response kits, eyewashes, safety showers, and personal protective equipment such as hard hats, safety shoes, and safety glasses.

In addition, the on-site facility personnel will be trained in fire safety and emergency response procedures and will adhere to Occupational Safety and Health Administration standards, as well as all other applicable safety standards. This training includes annual review of procedures and safety protocol. The on-site facility personnel will work closely with the local fire department and other emergency response teams to ensure that all personnel are familiar with the facility and the safety procedures that have been established. Periodic site visits will be scheduled to keep all personnel familiar with the site and to make them aware of any changes that could impact their response to an emergency.

A draft Emergency Response Plan and Spill Prevention and Control Plan was prepared and included in the Final EIS. The design of the facility also incorporates several security considerations, including a fence around the site’s parameter, a gated entrance, camera monitoring and safety lighting. The control room, which is manned at all time throughout the entire year, is equipped to monitor not only the equipment and operation of the Facility, but also the security cameras and access gate, limiting access to only authorized personnel. The design characteristics and safety procedures, accompanied with strong working relationships with local emergency response personnel, result in a very safe and secure facility for both the surrounding community and the on-site personnel.

7.0 Socio-Economic

7.1 Benefits to the Local Economy

CPV Valley will provide over $1 billion of benefit to the local economy – CPV Valley will have both direct and indirect positive economic effects on the state, town, county, and school district. These effects will begin during construction and continue throughout the operating life of the Project. The Project will result in an estimated capital investment of approximately $900 million for the

development and construction of the Project. In the short term, benefits will include additional employment and expenditures associated with construction of the Project. In addition to the jobs created during construction and the wages paid to the work force, this Project is expected to have an indirect impact on the local economy through the purchase of goods and services, which will support local businesses and perhaps result in the creation of some additional new jobs. During the SEQRA approval process, an independent third-party performed socio-economic analysis to quantify the economic impacts to the region. An input-output (I/O) methodology model was used to determine the economic and fiscal impacts of the Project on the regional economy. The analysis was included in

(18)

CPV

V

ALLEY

E

NERGY

C

ENTER the Final EIS and is available on the Project website. This analysis was updated in May of 2012 and now estimates the Project’s construction impact on Orange County and New York will result in total benefit of $640 million, of which $540 million will occur within Orange County, based on current project costs. The operation of CPV Valley will provide an additional benefit of over $23 million annually. Over a twenty year horizon, CPV Valley will generate over $1 billion to the local economy ($540 million during construction, plus $463 million over 20 years of operation).

In the long term, operation of CPV Valley will represent a source of additional revenue for the local economy through a Payment in Lieu of Taxes (PILOT) agreement, purchases of goods and services, and a Host Community Agreement. The PILOT payments will increase the revenues to the local taxing jurisdictions, and will represent a significant portion of their total tax levy. The PILOT payments will more than offset any minor increases in community service costs (e.g., the addition of a small number of new children in the school system) that may be associated with long-term operation and

maintenance of CPV Valley. All of the items discussed above will have a beneficial effect on local community, school district and businesses.

7.2 Impact on Jobs

CPV Valley will create 1,890 jobs during construction – It is expected that the Project will require approximately 500 employees during the peak construction months, and approximately 250 construction employees on average throughout construction. Construction is expected to be completed within an estimated 30 month timeframe. In addition to the jobs created during construction and the wages paid to the work force, the Project will have an indirect impact on the local economy through the purchase of goods and services, which will support local businesses and perhaps result in the creation of additional new jobs. The job impacts from construction activity will be large, especially with indirect and induced (multiplier) impacts occurring across many industries. The construction of CPV Valley will result in a total job impact of 1,890 across the State of New York during each year of the construction phase of the Project. The total increase in labor incomes from the construction is estimated to be $204 million. The total annual direct, indirect and induced income impacts (including all non-wage salary and benefits) are estimated to be over $8 million.

CPV Valley will create 131 jobs once in operation - The operation of the Project will create

approximately 24 permanent skilled high-wage jobs. In addition, another 37 indirect and induced jobs will be created in the region as a result of the operation of CPV Valley and the income earned from the direct and indirect employment impacts for a total annual impact of 42 jobs in the region. Further, 28 jobs will be created or “leak” from the region into other areas of New York as a result of CPV Valley’s annual operations. The total job impacts in New York resulting from CPV Valley operations are estimated to be 131. The direct and indirect labor income impacts suggest that the average annual wages resulting from the Project operations will be significantly higher than the current average annual wages in the region.

7.3 Public Safety Concerns

Natural gas, which is the primary fuel for CPV Valley, is a safe fuel source that is not only used for power generation, but is widely used in homes for heating. Natural gas fueled generation provides New York with safe reliable generation without public safety concerns about long-term fuel disposal plans or large scale evacuation. As a natural gas fired generation facility, CPV Valley will be a very safe facility from a fuel and operational perspective.

Through the SEQRA approval process, public safety concerns were one of the many areas evaluated. Potential impacts to the public were extensively evaluated and included in the Project’s Final EIS. Impacts to public services such as fire, police and emergency response services were evaluated. After evaluation and consultation with these service providers, the conclusion was that due to the design of the facility, low volume of traffic and the number of employees once operational, CPV Valley will not impact the level and quality of local services during its construction and operation.

(19)

CPV

V

ALLEY

E

NERGY

C

ENTER

The Final EIS contains the details of the various analyses of public safety concerns, such as air quality, traffic, and natural resource impacts. Also included in the Final EIS are summaries of impacts related to concerns of potential spills or leaks of various industrial products stored on site, such as fuel oil and ammonia that is used to reduce environmental emissions. The results were that each one of these concerns were addressed either through safety design features of the facility, such as berming of storage vessels that are capable of containing 110% of the vessels capacity, or operating procedures. To appreciate the extent of the comprehensive evaluations conducted and reviewed by the public, please refer to the table of contents from the CPV Valley Energy Center Final EIS provided in Appendix F. The results of these evaluations are available on line at the CPV Valley Energy Center website

7.4 Aesthetic Issues

CPV Valley is sited and designed in such a way to minimize visual impacts to the maximum extent possible. CPV performed extensive analysis and assessment of aesthetic issues through the SEQRA approval process. Locating the Project at the southern center portion of the Project site was preferred, as it is placed proximate to nearby Route 6 and I-84 and proposed industrial properties, thereby providing maximum buffer from nearby visual receptors. The air-cooled design was chosen over a wet-cooling design for a number of reasons, including its elimination of cooling tower plumes. The air-cooled condenser height was minimized so as not to increase the height of the stacks. The electric transmission lines required to connect the Project to NYPA’s existing transmission

infrastructure will be placed underground to avoid the visual impacts associated with towers and wires of an aboveground electrical interconnection.

The Final EIS contains visual simulations from various sensitive receptors identified by the SEQRA lead agent. The simulations depicted the Project during leaf on and off conditions, as well as both night and daytime simulations. The Final EIS also contains significant documentation on the visual analyses conducted and steps taken to mitigate impacts. The Project design implemented a number of techniques to avoid and minimize off-site visual impacts. The techniques are consistent with the visual impact avoidance and mitigation tools recommended for consideration under NYSDEC’s visual resources policy. These include design and siting; alternative cooling technologies; changes to the profile or size of the facility; on-site screening and landscaping; coloring and texture of materials; maintenance during operation. The Project design includes enclosing much of the facility components inside buildings, minimizing stack height, preserving the natural vegetation to the extent practicable and optimizing lighting options to mitigate impacts.

The existing natural vegetation, which provides large buffer areas surrounding the facility, and proposed landscaping, will help shield full views of the facility from off site locations. Other landscaping plans include adding trees and shrubs in select areas on the site. To the maximum extent practical, mature shade trees, vegetation, and unique site features such as stone walls will be preserved. The Project’s proposed lighting is designed to minimize off-site impacts, while providing sufficient lighting to ensure worker safety during routine operations and maintenance.

7.5 Impacts on Real Estate

Impacts to real estate were evaluated in the SEQRA approval process. The Final EIS contains various studies related to the location of power projects and local real estate values. Two specific studies concluded that there were no negative impacts to property values in areas where power projects were located. These studies are available at the CPV Valley Energy Center website.

7.6 Environmental Justice Considerations

During the SEQRA process, an Environmental Justice (EJ) analysis, which addresses potential impacts to low-income and minority populations, was conducted for the CPV Valley Energy Center. The results are contained in the Final EIS. The EJ analysis of the Project was conducted consistent with the principles set forth in Executive Order 12898, entitled “Federal Actions to Address Environmental

(20)

CPV

V

ALLEY

E

NERGY

C

ENTER Justice in Minority Populations and Low Income Populations” and DEC Policy CP-29. The intent of this EJ analysis was to determine whether the construction and operation of the proposed Project would have a significant adverse and disproportionate affect on an “environmental justice community.” An EJ area located in the City of Middletown, with a small portion located in Wallkill, was identified. The southwestern most point of the census block is 0.94 miles northeast from the facility site. The analysis demonstrates that the Project’s potential air emission concentrations do not cause violations of the National Ambient Air Quality Standards (NAAQS) within the EJ study area, and therefore are not adverse.

Regarding hazardous materials, the use of oil, aqueous ammonia, and other chemicals at the Project site will not result in a disproportionate or adverse impact to the identified potential EJ area. The storage of fuel oil or use of aqueous ammonia or other chemicals at the Project site will comply with all local, state and federal requirements and will not jeopardize public health or impact groundwater quality. The use and/or presence of fuel oil, chemicals, and other materials is currently occurring throughout the two-mile study area and is not concentrated within the EJ area. The Project would also comply with NYSDEC and Town of Wawayanda noise standards at all locations within the Project study area, and therefore, would not cause any adverse impact to any EJ area.

Views from within the EJ area are likely to be intermittent and minimal, and limited to the top of the Project stack. Any views that do exist will be within a commercial/industrial context and visual impacts will be minimal. In addition, views of the stack would not be limited to those from within the EJ area. Therefore, visual impacts within the EJ area are not considered adverse or disproportionate.

8.0 Financial 8.1 Financial Plan

Any financing plan will depend on the contract structure for the project revenue. A finance plan was discussed previously in Section 4.0 – Financial of Part B – Required Information. Generally, a long-term contract with a creditworthy counterparty would facilitate the financing of a project such as CPV Valley.

8.2 Name of Project Sponsors

CPV Valley LLC

8.3 Projected Amounts of Energy & Capacity

The CPV Valley Energy Center capacity is approximately 667 MW during peak summer conditions. Based on PA Consulting’s forecast of energy and fuel prices, CPV Valley is expected to produce between 4.0 and 5.2 GWHs annually of energy, which means that the facility is expected to operate between 64% to 72% of the year. The Transmission Enhanced Option will provide an additional 450 MW of capacity that would be deliverable down state.

8.4 Potential Sources of Project Revenue

The project revenue would be obtained through contract structure providing long-term revenue surety from a creditworthy counterparty and/or sales to the NYISO. The longer the term of the contract will the lower the price for the ratepayers. There are various types of contracts that can be considered such as a contract for differences or a tolling agreement.

8.5 Risks of Price Change

There is a risk that the cost of the CPV Valley Energy Center increases with rising construction costs, equipment costs and interest rates. Currently, the market is experiencing a time where both construction costs and equipment costs are depressed in conjunction with a very low interest price environment. This is an ideal time to lock-in through a fixed price contract as discussed in the

THE CPV VALLEY ENERGY CENTER

T

HE

CPV

V

ALLEY

E

NERGY

Table of Contents

Table of Contents

CPV

V

E

C

A.

E

S

CPV

V

E

C

B.

R

I

CPV

V

E

C

CPV

V

E

C

CPV

V

E

C

CPV

V

E

C

CPV

V

E

C

CPV

V

E

C

CPV

V

E

C

CPV

V

E

C

C.

A

I

CPV

V

E

C

CPV

V

E

C

CPV

V

E

C

CPV

V

E

C

CPV

V

E

C

CPV