Air Pollution Control Equipment Services, Gas

Harza Energy to assist California water agencies with power generation

CHICAGO, Ill., Jan. 31, 2001 (BUSINESS WIRE)–In an effort to ensure the safety and continuity of California’s water supply during the escalating energy crisis, the Association of California Water Agencies has signed an agreement with Harza Energy to make available the engineering and installation of Capstone MicroTurbine(TM) power systems to ACWA member facilities.

With power demand in California at an all-time high, ACWA has chosen microturbines as one of several solutions to help ease the dependence of water agencies on the public power grid.

Through this agreement, Harza Energy will provide power solutions to participating ACWA member agencies needing to create a reliable source of private power to run their individual facilities. This move will ensure that agencies can continue to supply clean water to residents.

“Distributed generation systems provide a supplement to centralized power plants and the electric grid. Generating power on-site enables businesses and municipal agencies to improve power reliability and reduce their reliance on expensive peak power,” said Steve Chippas, president of Harza Energy.

“With electricity prices for businesses in California up by as much as 15 percent, distributed generation is an excellent option for both the short and long term.”

Through the agreement with ACWA, Harza Energy will provide services for the engineering and installation of 30-kW microturbines manufactured by Capstone Turbine Corp. The ultra-low-emission Capstone MicroTurbine(TM) power system generates electricity and usable heat.

The microturbine operates by burning natural gas or digester waste gases produced at wastewater treatment plants. It has a single moving part, uses no liquid lubricants or coolants, has no gearbox or other subsystems, and has no post-combustion catalysts or other pollution- control devices.

Independent testing has shown nitrogen oxide (NOx) emissions of the Capstone system to be far lower than those of the average natural-gas-burning California power plant, according to figures published by the U.S. Environmental Protection Agency.

Capstone has demonstrated the microturbine’s capabilities to operate on digester gas at wastewater treatment plants in Los Angeles and Pennsylvania, in much the same way as they will be used at facilities of ACWA members.

About ACWA

The Association of California Water Agencies (www.acwanet.com) is the largest coalition of public water agencies in the country. Its nearly 450 public agency members collectively are responsible for 90 percent of the water delivered to cities, farms and businesses in California. Its primary mission is to assist its members in promoting the development, management and reasonable beneficial use of water in an environmentally balanced manner.

About Capstone Turbine

Capstone Turbine (www.microturbine.com; Nasdaq:CPST – news) is the winner of Financial Times Energy’s 2000 Global Energy Award for Most Innovative Commercial Technology. The company is a leading producer of low-emission microturbine systems.

About Harza Energy

Harza Energy (www.harzaenergyllc.com) is a wholly owned subsidiary of Harza Engineering Co., with headquarters in Chicago. The company provides a full range of turnkey services for the distributed generation market. In addition to sales and equipment installation, Harza Energy offers design and engineering services to cover a project from start to finish.