SDP takes the following steps when evaluating COGEN sites:

• After reviewing the site host’s gas and electricity bills, SDP will either install its own 15-minute interval electrical metering instrument on site for 7 days or utilize the utility company’s “metering service” if available. It is critical to analyze the highest peak use periods as well as the lowest demand times of the site host. The COGEN must be sized such that its electrical output is never more the 20% greater than the lowest demand period of the site. Otherwise, if the COGEN continues to run lower that the demand load, it will fall out of emissions compliance and if it exceeds the load, electricity will be dumped into the GRID.

• SDP Construction Division will walk the site to ensure adequate space requirements, and a suitable exhaust and ventilation system for the COGEN and balance of plant required.

• SDP Engineers will configure the optimum system with maximum output and minimum parasitic loads on the COGEN. They will then determine the net output of the COGEN for electrical kW and therms (heat).

• SDP Headquarters and Marketing will take all the site evaluation data to determine the total savings on electricity and gas. Then if SDP will be the “Owner” of the COGEN site, SDP will write up a Power Purchase Agreement for the site host, guaranteeing what savings the site host will have over a ten-year period, based on discounts given off of present rates