California Gets More BioEnergy

Clean Power Income Fund has announced that Gas Recovery Systems, Inc. of Livermore, California has been awarded three new contracts for the sale of power to San Diego Gas & Electric Company (“SDG&E”). These contracts have now been approved by the California Public Utilities Commission (“CPUC”).

Toronto, Canada – December 18, 2002 [] The contracts involve overall capacity of approximately 12 MW located at three sites: Coyote Canyon Bio-gas Facility, City of Irvine, Orange County, California; Sycamore Bio-gas Facility, Santee, San Diego County, California; and San Marcos Bio-gas Facility, San Marcos, San Diego County, California. The contracts were issued by SDG&E pursuant to legislation passed this year by the State of California mandating development of additional green power resources through a renewable portfolio standard. “These new contracts demonstrate the impact of renewable portfolio standard legislation on GRS’s operations and will enable the company to expand its generating capacity in southern California,” said Stephen Probyn, CEO of Clean Power Inc., administrator of the Fund. The bulk of the contracted capacity, or approximately 9.5 MW, is located at Coyote Canyon and involves a contract for power previously sold on a merchant basis. Sycamore, an open landfill, is expected over time to provide additional potential for expansion beyond the capacity currently being provided under existing contracts, including the new contract approved by the CPUC. Landfill gas is largely comprised of methane which is 21 times more damaging to the environment than an equivalent volume of CO2 emissions. By capturing and converting LFG into energy, GRS’s annual production eliminates 5.9 million tons of CO2 equivalent. On October 31, 2002, the Fund closed its investment of US$94 million to finance the acquisition of GRS which is the largest independent landfill gas (LFG) recovery power generator in the United States. GRS operates 29 LFG recovery facilities in nine states and is a leader in the development of the North America LFG industry. Clean Power Income Fund is an open-ended income trust that invests in environmentally preferred power generating assets and distributes the resulting cash flow to unit holders on a quarterly basis. It is the first fund of any type to be certified under the Government of Canada’s Environmental Choice Program and is eligible to use the EcoLogo in recognition of superior environmental performance and a continuing commitment to environmental excellence.


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