Water Power Peer Review

1. Water Power Peer Review Percheron Power, LLC’s Proof of Power Project on Potholes East Canal (POP‐PEC) 2011 Water Power project to advance sustainable small hydropower technology in the U.S. through system testing of the Archimedes Hydrodynamic Screw (AHS) system Michael Spray New West Technologies Michael.Spray@ee.doe.gov November 3, 2011 Proof of Power Project on Potholes East Canal (POP‐PEC) Low Head Hydro in Engineered Drops of the Columbia Basin Project Percheron Power, LLC

2. Purpose, Objectives, & Integration Project Purpose: • Design, develop, permit, and operate an innovative low‐head hydro‐electric generation facility on an existing engineered drop of the Columbia Basin Project irrigation canal system. • Employ new turbine and technology, called an Archimedes Hydrodynamic Screw (AHS) • Deployed successfully in Europe over the past five years, but no known installations of AHS yet exist in the U.S. Water Power Program Mission and Objectives: • By demonstrating and testing the reliability, efficiency, economic viability, environmental sustainability and inherent simplicity of the AHS system, the project is supporting the program goal to accelerate deployment of conventional hydropower technologies. • Proving the AHS system demonstrates viable solution for low head hydropower at engineered drops across the United States

3. Technical Approach Percheron Power selected Station 1973 on the Potholes East Canal in the Columbia Basin Project as the demonstration site for the AHS technology system • Design flow of 1800 cfs and average head of 18 feet. • Constructed on existing gate structure • Operate in run of river mode • Four to five of the AHS turbines will be installed in parallel at approximately a 22 degree angle in the bypass canal • Capacity: 1.6 MW (approximately 400 KW per turbine) • Task 1: Project Management, Licensing/Permitting and Contracts • Complete Agency and Stakeholder Consultations on Preliminary Design (3 rounds are anticipated) March 2012 • Receive WA State SEPA Determination and Conditional Use Permit from Franklin County March 2012 • Submit Conduit Exemption Application to FERC, with record of consultations July 2012 • Receive Order Issuing Exemption from FERC January 2013 • Execute Interconnection/Transmission Agreements September 2013 • Execute Power Purchase Agreement October 2013 • Task 2: Design • Complete Preliminary Design for Consultations January 2012 • Complete Detailed Design February 2013 • Receive FERC and Reclamation Approval to Construct August 2013 • Task 3: Construction • Solicit Bids October 2013 • Place Long Lead Procurements November 2013 • Complete all in Water‐Work April 2014 • Task 4: Testing and Commissioning • Install Turbines and Complete Powerhouse August 2014 • Commissioning and Interconnection to Grid September 2014

4. Impact The potential for low‐head hydro in the engineered drops in both federal and private irrigation system is well known and significant. • Few new plants have been commissioned in more than two decades. • The challenge is finding economical ways to harness the hydro‐electric potential in the engineered drops, and efficiently deliver the power to the grid • The POP-PEC project will demonstrate the LCOE benefits of the Archimedes Hydraulic Screw • Head: 18 ft, Design Flow: 1800 cfs • Roughly half the cost of traditional low head Kaplan or bulb type turbines • Increased development and deployment at other low‐head hydro sites in existing canals with successful demonstration • Represent one of the largest demonstrations of the AHS technology systems worldwide, from a total capacity standpoint.