Utility Monetization

Americas Power Partners Inc. will purchase power plant assets for a specified value, incorporate site improvements in power production and distribution, and sell applicable power commodities (steam, electric, air, water and waste water) to the customer at or below their current total costs. In some cases these payments can be based on the customer's product.

Here's how it works:

1. The existing power plant system is purchased.
2. The power plant and utility systems are upgraded and improved.
3. APP will own the utility system for a period of 10 to 20 years.
4. Utility services will be provided to the customer for a cost equated to product produced, if applicable.
5. APP will operate and maintain the power plant and utility system. APP will coordinate this sensitive issue to meet customer requirements.
6. Future savings opportunities will be implemented and shared with the customer on a 50/50 basis.
7. The facility will be maintained at optimum levels.
8. All utility costs will be coordinated, processed and paid by APP.
9. Commodity price risk (fuel, electricity, water, etc.) is handled through a price management structure coordinated between APP and the customer.
10. The power plant and utility system will be certified and maintained as "Best in Class."

Monetization Benefits

1. A capital payment will be made to the customer at deal closure for the existing asset.
2. The customer will maintain or reduce the current utility expenditures.
3. The customer will be billed for all utility services on a variable cost basis correlated to production units, if applicable.
4. All utility and system-saving opportunities will be pursued, implemented and shared on a 50/50 basis.
5. Operations and maintenance risk can be transferred.
6. All utility bills will be reviewed and paid by APP. This procedure will ensure accurate billings for all utility providers. Any savings found in the review process will be passed directly to the customer.
7. At the end of the contract the improved power plant and system will transfer back to the customer.
8. The power plant and utility system will become "Best in Class," improving operations and reliability.
9. The customer can concentrate on its core business and be assured the complete power plant and utility system is at peak efficiency.
10. The project is developed completely on an "Open Book" basis.

Americas Power Partners, Inc., 710 North York Road, Hinsdale, IL 60521. Tel: 630-325-9111; Fax: 630-325-9605.