Energy Recovery Operations, Inc.

Joppa, MD

Harford County Resource Recovery Facility Executive Summary Fiscal Year 2012
Overview The HCRRF finished fiscal year 2012 with a total processed tonnage of 121,000 tons, or about 92% of design capacity. The Facility operated favorably to budget in both controllable and direct pass-through costs. Special waste revenue credit returned to the County equaled $831,000. Recycled material revenue credit returned to the County equaled $26,296. Avoided cost of electricity from turbine generator operations equaled about $162,000. All contractual obligations with respect to the Steam Purchase Agreement and Operating and Maintenance Agreement were met. All environmental and permit requirements were met and no regulatory actions were brought against the Facility. Energy Recovery gained recertification in the Maryland Occupation Safety and Health SHARP program and completed a 7th consecutive year without a lost time injury Major maintenance and refurbishment projects for the year included the replacement of several hundred feet of underground condensate return line, installation of about 5,000 square feet of main building roof and the replacement of several hundred boiler tubes. Additionally, a program was begun to upgrade all process equipment PLC processors and communication link hardware. Facility Operational Performance Total Waste Through-put Total waste through-put for FY 2012 equaled 121,000 tons or about 92 % of design and permit capacity. This represents an increase over FY 2011 of 4,275 tons. Special Waste Total Special Waste through-put for the year equaled 9,748 tons, including 7,635 tons of scrap tires and 2,113 tons of confidential materials. Steam Delivery to APG Steam made available to the Government for the year equaled 515.6 million pounds. The contractual obligation for available steam, based on the Governments September 30 fiscal year, is 452.3 million pounds. Electrical Generation Excess steam supplied to the turbine generator during FY 2012 generated 1,625mW
HCRRF 2012 Summary page 1 of 2

hours of electricity for an electrical consumption savings of about $162 thousand. Facility Financial Performance Cost of Operations Total Controllable Cost of Operations for the year equaled $5.704 million versus a budget of $5.821 million, $117 thousand or 2.0 % favorable. Both the labor and material cost portions of the budget ended favorably. Budgeted Pass Through Costs for the year equaled $1.951 million versus a budget of $1.968 million, $16 thousand or about 1% favorable. Cost of utilities and insurance were favorable to budget with the cost of ash disposal unfavorable. Total Special Waste Revenues for the year equaled $962 thousand, $62 thousand or 6.9 % favorable. The fraction of total special waste revenue credited to Harford County equaled about $831 thousand. Safety and Compliance As mentioned in the overview, Energy Recovery gained re-certification in Marylands SHARP program for the 6th year. In addition, Facility staff completed a 7th consecutive year with no lost time injuries. No environmental events occurred during FY 2012 that resulted in regulatory action. The Facilitys Title V operating permit was renewed in October of 2011. Annual air emission testing was also completed in October of 2011 and all emission parameters were found to be within permit limits. EPAs mandatory greenhouse gas testing continued on a quarterly basis through-out FY 2012. The typical biogenic fraction of total Facility carbon dioxide emissions equals about 52% FY 2013 Forecast Energy Recovery management believes that total facility throughput can again be increased in FY 2013 with a target of 121,000 tons processed, or about 92.5% of rated capacity. Steam generation and delivery to APG is expected to remain within contract specifications producing a revenue flow of about $3.7 million. Special waste revenue returned to the County is forecast at $900 thousand and recycled material revenue at $25 thousand. Controllable cost of operations for FY 2013 is forecast at $5.94 million. Major capital and replacement projects for the year will include continued boiler and economizer tube bundle replacement, completion of the plant PLC hardware upgrade mentioned above and continued repair or replacement the process buildings roof and exterior sheathing . END

HCRRF 2012 Summary page 2 of 2