GP&L and Environmental Waste Services Partner on Landfill Gas-to-Energy Project

Garland, Texas – December 8, 2008 – Garland Power & Light (GP&L) and the City of Garland’s Environmental Waste Services have announced plans to develop landfill gas-to-energy projects at the City’s Castle Drive and C. M. Hinton Landfills.

The Castle Landfill has a gas collection and control system which will need to be enhanced before electricity can be generated. A collection and control system will be installed at the Hinton Landfill. These steps are in Phase I of the project. Electricity generating facilities will be designed and installed in Phase II. Construction on Phase I begins in January 2009 and Phase II begins July 2009. Electric generation is projected to be online by July 2010. GP&L will be responsible for operating and maintaining the gas collection system and generation facilities.

Initially, two generating units will operate at the Castle Landfill and two at the Hinton Landfill, with each landfill site producing approximately two megawatts of power. As the amount of methane increases at the Hinton Landfill, it is expected that seven to eight units will ultimately operate at that site. It is anticipated that the landfill gas-to-energy projects will generate $18 million in net revenue for the City over the next 25 years.

As organic materials in landfills decompose, landfills emit gasses, 50% of which is methane. By converting methane to electricity, emissions of this greenhouse gas will be greatly reduced, thereby decreasing air pollution and odors at the landfills. In addition to utilizing this renewable energy source, GP&L will market the renewable energy credits (RECs), compliance premiums and carbon credits created by these new facilities.

“We’re excited about this project and the environmental benefits it will provide to the City and those who live near the landfills,” says Ray Schwertner, Electric Utility Director. He added, “We’re also looking forward to including this reliable, renewable power in the electricity mix we provide to our customers.” GP&L currently generates 1 MW of renewable energy from its Lewisville Hydroelectric Plant. Additionally, 10% of the electricity included in GP&L’s 2008 power purchase agreement is from renewable resources.