LADWP Honored by EPA for Fuel Cell Program; 2004 Environmental Achievement Award Recognizes Significant Contributions Toward Enhancing and Protecting the Environment

Business Wire, April 20, 2004

Energy Editors/Business Editors/Environment Writers

SAN FRANCISCO--(BUSINESS WIRE)--April 20, 2004

The Los Angeles Department of Water and Power (LADWP) today received the 2004 Environmental Achievement Award from the U.S. Environmental Protection Agency (EPA) for LADWP's Fuel Cell Demonstration Program.

Over the past decade, LADWP, the nation's largest municipal utility, has taken a leadership role in developing an internationally recognized distributed generation program, which demonstrates the operation of new, clean, and efficient methods of reliable on-site electric power generation.

"We are very honored and pleased to be recognized by the EPA for this program," said Lillian Kawasaki, assistant general manager for environmental affairs and economic development. "Fuel cell technology is important to LADWP because it will help reduce dependence on fossil fuels, clean the air in Los Angeles and provide reliable on-site power for our customers."

She added, "The knowledge and experience that we gain through these projects can easily and directly transfer to applications throughout the nation."

The EPA Region 9 Environmental Awards program acknowledges individuals and organizations for their commitment and significant contributions to the environment in California, Arizona, Nevada, Hawaii, Guam and tribal lands. The awards were presented today in San Francisco.

"2003 was a landmark year for LADWP's Fuel Cell Demonstration Program," said William Glauz, distributed generation program manager, who accepted the award on behalf of LADWP. LADWP now operates close to 1 megawatt of clean, high-efficiency energy through its fuel cell program -- enough power to serve about 1,000 homes.

Accomplishments in 2003 include:

-- Completing a field trial of one of the world's first

250-kilowatt, advanced high-efficiency carbonate fuel cell

power plants.

-- Installing and starting operation of North America's first

commercial design, 250-kilowatt advanced high-efficiency

carbonate fuel cell power plant, located at LADWP headquarters

in downtown Los Angeles.

-- Installing two additional advanced high-efficiency carbonate

fuel cell power plants, including one at a wastewater

treatment facility that will ultimately operate on renewable

digester gas.

"We're very proud of the work that everyone involved with the program at LADWP has done to achieve an internationally recognized level of attention," said Glauz. During the past year, LADWP's fuel cell power plants have generated interest and visits by electrical utility representatives from Japan, China, India, Canada, and England, and sometimes multiple visits from the same country.

LADWP's three high-efficiency carbonate fuel cell power plants were built by FuelCell Energy, Inc. and partially funded with $750,000 from the U.S. Department of Defense and the U.S. Department of Energy.

LADWP also initiated a collaborative effort with the Electrical Power Research Institute, the South Coast Air Quality Management District, and Fuel Cell Technology Inc. to explore a demonstration project involving two 5 kilowatt high-efficiency solid oxide fuel cell plants for residential customers.

Fuel cells offer a number of environmental benefits, such as producing electricity that is 50 percent more efficient than conventional combustion engines and creating nearly zero emissions. Carbonate fuel cells have the ability to extract hydrogen from natural gas, and thus are at least 25 percent more efficient than more conventional phosphoric acid fuel cell plants.

The Los Angeles Department of Water and Power serves more than 3.8 million people in Los Angeles and was established more than 100 years ago to provide water and electric needs to the city's businesses and residents. For more information, visit www.ladwp.com.