LIPA PEAKING PLANT OPPORTUNITY

Presented to: Village of Greenport, NY

FEBRUARY 2014

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PROJECT TEAM

§  COGENTRIX/CARLYLE

•  Project owner/operator

§  GLOBAL COMMON, LLC

•  Project developer

•  Private energy development company

•  Developed existing Greenport peaking plant, which was sold to Hawkeye Electric, Inc in 2003

§  TWOMEY LATHAM, LLP

•  Project counsel

•  Largest law firm in eastern Suffolk

•  Extensive experience with energy and environmental issues

§  Engineering and construction

§  Environmental consulting and permitting

§  Plant operations

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Project Benefits

§ Rent and tax revenue

§ Meet increasing peaking demands on East End

§ Replace inefficient peaking plants

§ Avoid new transmission from western LI

§  “Firm up” renewables

§  Improve local grid reliability

§ Help control energy costs

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Introduction  to  

Cogentrix  Energy  Power  Management,  LLC  

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Cogentrix  Energy  Power  Management  (“Cogentrix”)  

Cogentrix   develops   or   acquires,   constructs,   owns,   and   operates   power   facilities.   Since   1983,   Cogentrix   has  developed   20   power   plants   with   a   total   generating   capability   of   approximately   5,100   MW   and   acquired   22  additional  facilities  with  a  total  generating  capability  of  approximately  4,200  MW.      The  company  has  a  seasoned  management   team  with  experience   in  engineering,  asset  management  and  O&M  across  all  fuel  types.    

Ø  Independent  Power  Producer,  founded  in  1983  

Ø  Headquartered  in  Charlotte,  NC    Ø  Owned  by  funds  managed  by  The  Carlyle  Group,  one  of  the  

world’s  largest  and  most  diversiJied  multi-­‐product  global  alternative  asset  Jirms.  

Ø  Full  compliment  of  in-­‐house  support  services:  

Development  Asset  Management  

Operations  Finance  

Legal    Environmental  &  Regulatory    

Engineering  and  Construction  Management  

Ø  Cogentrix  has  constructed  17  power  plants,  acting  as  EPC  contractor  on  13  

Ø  Cogentrix  has  operated  a  generation  Jleet  in  excess  of  7,000  MWs  

Ø  Current  ownership  in  the  U.S.  includes  11  operating  generation  projects:  

•  1,143  MW  natural  gas  

•  478  MWs  coal    

•  73  MWs  solar  

Projects  Developed  by  Cogentrix  

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Construction,  Asset  Management  and  O&M  Experience  

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ü

Plant   Fuel Type   Capacity (MW)   Commenced   Ending   Construction Management   Asset Management   O&M  

Lumberton   Coal   35   1985   2001   ü   ü   ü  

Elizabethtown   Coal   35   1985   2001   ü   ü   ü  

Kenansville   Coal   35   1986   2003   ü   ü   ü  

Roxboro   Coal   55   1987   2005   ü   ü   ü  

Southport   Coal   110   1987   2005   ü   ü   ü  

Hopewell   Coal   110   1987   Ongoing   ü   ü   ü  

Portsmouth   Coal   110   1988   Ongoing   ü   ü   ü  

Rocky Mount   Coal   110   1990   2010   ü   ü   ü  

Richmond   Coal   220   1992   2010   ü   ü   ü  

River Road   Natural Gas CC   248   1997   2000   ü   û   ü  

Batesville   Natural Gas CC   800   2000   2002   û   û   ü  

Whitewater   Natural Gas CC   248   1998   2010   û   ü   ü  

Cottage Grove   Natural Gas CC   235   1998   2010   ü   ü   ü  

Rathdrum   Natural Gas CC   270   2001   2010   ü   ü   ü  

San Pedro de Macrois   Oil-fired CC   300   2002   2006   ü   ü   ü  

Green Country   Natural Gas CC   810   2002   2004   ü   ü   ü  

Ouachita   Natural Gas CC   810   2002   2007   ü   ü   ü  

Southaven   Natural Gas CC   810   2002   2008   ü   ü   ü  

Caledonia   Natural Gas CC   810   2002   2004   ü   ü   ü  

Logan   Coal   220   2005   2010   û   ü   ü  

Carneys Point   Coal   260   205   2010   û   ü   ü  

Indiantown   Coal   330   2005   2010   û   ü   ü  

Selkirk   Natural Gas CC   325   2005   2010   û   ü   ü  

Scrubgrass   Waste Coal   85   2005   2010   û   ü   ü  

Northampton   Waste Coal   110   2005   2010   û   ü   ü  

Cedar Bay   Coal   258   2005   Ongoing   û   ü   ü  

Plains End I   Natural Gas Peaker   113   2005   2010   û   ü   ü  

Plains End II   Natural Gas Peaker   115   2005   2010   ü   ü   ü  

Sunray   Solar thermal   43   2009   Ongoing   û   ü   ü  

Alamosa   Solar CPV   30   2012   Ongoing   ü   ü   ü  

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Cogentrix  Current  Operating  Plants  

Cedar Bay

Hopewell

Coal

Solar

Portsmouth Alamosa Sunray

Gas

Enterprise Border / Border Land

Panoche Midway

Vaca Dixon Red Oak

Overview  of  the  Carlyle  Group  

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Ø  Established  in  Washington,  D.C.  in  1987,  Carlyle  is  one  of  the  world’s  largest  and  most  successful  investment  Jirms:  o  Over  $180  billion  in  assets  under  management    o  More  than  1,400  employees  operating  in  34  ofJices  across  6  continents  o  Carlyle  has  expertise  in  various  industries,  including:  aerospace,  defense  &  government  services,  consumer  &  retail,  

energy,  Jinancial  services,  healthcare,  industrial,  technology  &  business  services,  telecommunications  &  media  and  transportation  

Note: As of June 30, 2013.

East End Energy Requirements

§  Minimum 200 MW on East End

•  Maximum 250 MW

•  75 MW preferred to Southold substation

– Additional capacity possible with substation expansion

•  Remainder preferred to Buell, Southampton, Deerfield and Montauk substations

§  Permitting/resource constraints

•  Air permit

•  Fuel storage

•  Water supply

§  Land requirements

•  2-5 acres

§  LIPA technology requirements

§  Lender/investor requirements

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Project Description

§ Peaking generating units

•  Gas turbine

•  Low sulfur diesel fuel on East End due to limited gas supply

– Low sulfur diesel has about 1/20 as much sulfur as kerosene, which is used in the existing plant

•  Existing plant has operated 484-1,055 hours per year since 2009

•  New plant operations will depend on customer needs

•  Maximum of 2,000 hours per year of operations under air permit

§ Unit and project size depend on location and substation constraints

•  75 MW-100 MW delivered to Southold substation

•  150 MW delivered to Deerfield and Southampton substations

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Emissions Data for Existing Plant

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Comparison with Permit Limits and Other Metrics § NOx emissions have been well below the annual emissions cap of 22.5 tons/

year NOx (synthetic minor), ranging from 2.5 to 5.9 tons/year (11 to 26% of NOx cap)

§ Sulfur limit is 0.05% sulfur; the facility has been burning fuel with about 0.03% sulfur (60% of limit)

§ CO2 emissions in 2013 were equivalent to about 12 cars per day

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Project Schedule

§ Proposal submittal- March 31, 2014

§ LIPA selection- December 2014

§ Project development and permitting- Jan 2015 - Q1 2016

§ Contract execution- Q1 2016

§ Financial closing-Q1 2016

§ COD- Required <May 1, 2019

• Construction period four to 12 months

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Business Arrangements with Village of Greenport §  2-4 acre site

§  Long-term lease

•  20 year term with extension options

•  Lease payments $486,000 per year assuming 75 MW plant

•  Taxes to be determined

§ Option periods to match LIPA schedule

§ Contingent on selection by LIPA

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Discussion

§ 

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