From everyday collection to environmental protection, Think Green. ® Think Waste Management.

Wheelabrator Technologies Inc. A Waste Management Company Florida Public Service CommissionRenewable Portfolio Standards WorkshopTallahassee, FLJuly 26, 2007Francis A. FerraroVP, Public Affairs From everyday collection to environmental protection, Think Green.® Think Waste Management.

Wheelabrator Technologies Inc. • Wholly owned subsidiary of Waste Management Inc. • Operate 21 energy facilities (19 renewable energy) • 16 waste-to-energy plants • 5 Independent Power Production facilities • Developed, built and operate the first commercially successful waste-to-energy plant in U.S. • Saugus, MA 1975 • Total generating capacity 836 MW Wheelabrator Technologies Inc. A Waste Management Company Think Green.®

Lisbon Falls Concord, Gloucester Bridgeport Frackville, Norwalk Shasta N. Andover, Tampa, Baltimore Westchester Saugus Wheelabrator Technologies Facilities Hudson Falls 21 Lassen Waste-to-Energy facility 20 Independent Power Production facility Ridge (Polk County) 19 18 Spokane, South & North Broward 17 16 13 11 Claremont, Millbury 10 Number of Plants 8 6 5 2 1 ‘75 ‘83 ‘84 ‘85 ‘86 ‘87 ‘88 ‘89 ‘90 ‘91 ‘92 ‘93 ‘94 ‘95 ‘96 ‘97 ‘98 ’99 ‘03 Year Completed

Wheelabrator Technologies Inc. FLORIDA • Own & operate 2 waste-to-energy facilities in Broward County • 134 MW; 4,500 tons per day Municipal Solid Waste • Built & operate City of Tampa’s waste-to-energy facility • 22 MW; 1,000 tons per day Municipal Solid Waste • Own & operate a waste wood/tires/landfill gas-to-energy facility in Auburndale • 50 MW Wheelabrator Technologies Inc. A Waste Management Company Think Green.®

Waste-to-Energy Waste-to-Energy is a modern, proven process for safe disposal of municipal solid waste and generation of clean, renewable energy from the heat released by the combusted waste. Waste-to-Energy facilities are equipped with state-of-the-art air pollution control systems and are operated by professionals certified by US EPA and American Society of Mechanical Engineers. South Broward (FL) facility Wheelabrator Technologies Inc. A Waste Management Company Think Green.®

Waste-to-Energy- U.S. - There are 89 waste-to-energy facilities in 27 states that: • Combust MSW to reduce its volume • Produce energy, usually as electricity • Recover ferrous and sometimes non-ferrous metals for recycling McKay Bay (Tampa) facility Wheelabrator Technologies Inc. A Waste Management Company Think Green.®

Waste-to-Energy- U.S. - • Percentage of U.S. Waste Managed: 13% • Disposal Capacity: 93,000 TPD • Annual Disposal: 29 million tons • People Served: 36 million Wheelabrator Technologies Inc. A Waste Management Company Think Green.®

Waste-to-Energy- U.S. - • Power Generation Capacity: 2500 MW • Annual Power Generation: 16 million MW-hours • Homes served: 1.98 million • Percentage of Total Renewable Energy (excluding hydropower): 18% North Broward (FL) facility Wheelabrator Technologies Inc. A Waste Management Company Think Green.®

Waste-to-Energy- Florida - Existing waste-to-energy capacity in Florida • 11 facilities • ~496 MW of installed capacity • > 17,500 tons per day municipal solid waste processing capacity Wheelabrator Technologies Inc. A Waste Management Company Think Green.®

Renewable Portfolio Standards “New” waste-to-energy capacity in Florida -- Definite and anticipated near-term • Lee County is completing an expansion • Hillsborough County is planning an expansion • Palm Beach County is considering an expansion • Others? Wheelabrator Technologies Inc. A Waste Management Company Think Green.®

Renewable Portfolio Standards • Setting a Renewable Portfolio Standard • 1.How should a renewable portfolio standard be set? • a.Based on a megawatt goal? • b.Based on a percentage of peak generation goal? • c.What renewable technologies should qualify toward meeting the goal? • 2.What vintage of renewable generating units should qualify toward meeting the goal? • 3.What is a reasonable level for the goal? • a.What amount of renewable generation is achievable in Florida? Wheelabrator Technologies Inc. A Waste Management Company Think Green.®

Renewable Portfolio Standards Renewable Energy Sources that should be included in a Renewable Portfolio Standard • Chapter 366 • 366.91 -- "Renewable energy" means electrical energy produced from a method that uses one or more of the following fuels or energy sources: hydrogen produced from sources other than fossil fuels, biomass, solar energy, geothermal energy, wind energy, ocean energy, and hydroelectric power. The term includes the alternative energy resource, waste heat, from sulfuric acid manufacturing operations. • "Biomass" means a power source that is comprised of, but not limited to, combustible residues or gases from forest products manufacturing, agricultural and orchard crops, waste products from livestock and poultry operations and food processing, urban wood waste, municipal solid waste, municipal liquid waste treatment operations, and landfill gas. Wheelabrator Technologies Inc. A Waste Management Company Think Green.®

Renewable Portfolio Standards Requirement should be set as a percentage of total, annual electric sales • A fixed MWhr requirement does not provide for concomitant growth of renewable energy along with electric load growth. • A percentage requirement provides incentive for utilities to implement additional demand-side activities. Wheelabrator Technologies Inc. A Waste Management Company Think Green.®

Renewable Portfolio Standards What vintage of renewable generating units should qualify toward meeting the goal? • New renewable energy facilities • RPS must provide incentive for new renewable energy generation • Existing renewable energy facilities • RPS must help protect existing base of renewable energy generation Wheelabrator Technologies Inc. A Waste Management Company Think Green.®

Renewable Portfolio Standards New renewable energy facilities • RPS must provide incentive for new renewable energy generation • Establish definition of “new” • “New” renewable energy is capacity that is established after the effective date of the RPS rule • Establish “age“ for transition from “new” to existing • e.g. 10 years after qualifying as a “new” facility Wheelabrator Technologies Inc. A Waste Management Company Think Green.®

Renewable Portfolio Standards “New” renewable energy is capacity that is established after the effective date of the RPS rule - New, “greenfield” facilities - Increased capacity at existing facilities - Addition of new generating capacity - Efficiency improvements that lead to increased generation Wheelabrator Technologies Inc. A Waste Management Company Think Green.®

Renewable Portfolio Standards “New” renewable energy is capacity that is established after the effective date of the RPS rule • Ambitious goals • Alternative Compliance Payment • If utilities are unable to obtain required amount of renewable energy Wheelabrator Technologies Inc. A Waste Management Company Think Green.®

Renewable Portfolio Standards “New” renewable energy Alternative Compliance Payment • At what level should ACP be set? • High enough to provide incentive for utilities to search out and provide incentives for new renewable capacity • Experience of other states with ACPs Wheelabrator Technologies Inc. A Waste Management Company Think Green.®

Renewable Portfolio Standards “New” renewable energy Alternative Compliance Payment • Experience of other states with ACPs • e.g., Massachusetts • 1.0% by 2003 1.5% by 2004 2.0% by 2005 2.5% by 2006 3.0% by 2007 3.5% by 2008 4.0% by 2009 an additional 1.0% each year afterward until DOER ends add’l reqmnts • 2007 ACP $57.12 /MWh • Utilities have paid ACP every year since 2003 Wheelabrator Technologies Inc. A Waste Management Company Think Green.®

Renewable Portfolio Standards “New” renewable energy Alternative Compliance Payment • At what level should ACP be set? • High enough to provide incentive for utilities to search out and provide incentives for new renewable capacity • Experience of other states with ACPs • Uses for ACP funds? • Development of new, promising technologies; seed money for construction of new facilities; etc. Wheelabrator Technologies Inc. A Waste Management Company Think Green.®

Renewable Portfolio Standards RPS must help protect existing base of renewable energy generation • Set at current percentage of renewable generation • Increase requirement as “new” capacity transitions to “existing” capacity Wheelabrator Technologies Inc. A Waste Management Company Think Green.®

Renewable Portfolio Standards What is a reasonable level for the goal? Current Renewable Generation in Florida • 1* - 2.5% * Florida’s Energy Plan • Goal: ? • Governor’s goal – 20% • Over what time period? • How aggressive? Wheelabrator Technologies Inc. A Waste Management Company Think Green.®

Renewable Portfolio Standards http://www.dsireusa.org/documents/SummaryMaps/RPS_Map.ppt Wheelabrator Technologies Inc. A Waste Management Company Think Green.®

Renewable Portfolio StandardsExamples of other states New Jersey 2004 – 3.25% 2021 – 22.5% Connecticut 2006 – 5% 2020 – 27%(includes customer-sited combined heat and power (CHP) systems; 2) electricity savings from conservation and load management programs; and 3) systems that recover waste heat or pressure from commercial and industrial processes) Wheelabrator Technologies Inc. A Waste Management Company Think Green.®

Wheelabrator Technologies Inc. A Waste Management Company Think Green.®

From everyday collection to environmental protection, Think Green. ® Think Waste Management.