District Energy - 2005 Third Quarter

Industry
News

The agreement is subject to approval by government authorities and the annual general meetings of the companies involved in the transactions.

Spirax Sarco Introduces New
Pump Retrofit

Spirax Sarco has introduced a Pivotrol^®pressure-powered pump cover and mechanism retrofit – an in-line, bolt-in upgrade for most makes of mechanical pump. Provided with full warranty coverage at 200 psig operation, the retrofit is designed as a solution to excessive maintenance and energy consumption, heat exchanger stall, water hammer and erratic steam system performance. The Pivotrol technology replaces conventional pins and linkages with pivots, which reduce friction and wear and lengthen service life. A special damper uses the hydraulic inertia of the collected condensate to reduce mechanical shock as the valve actuatorsshift.Fo r details, visit www.spirax sarco.com/us.

Pivotrol^®pressure-powered pump cover and mechanism retrofit

New Chilled-Water Plant in
Indianapolis

Citizens Thermal Energy (CTE) recently

completed construction of a new chilled-water plant that adds 4,000 tons of cooling capacity to its system in downtown Indianapolis, Ind. The project is part of the company’s $7 million chilled-water system expansion begun last year. Designed to grow to approximately 24,000 tons in the future, the new CTE plant will provide chilled water for process cooling and air conditioning to various downtown customers including the new Clarian Clinical Laboratory Building and the Indiana University Medial Information Sciences Building. CTE, a division of Citizens Gas & Coke Utility, will supply steam and chilled-water services to both buildings.

St. Paul System Develops
Energy Game

District Energy St. Paul of St. Paul, Minn., is developing a classroom presentation and game designed to teach school children about energy conservation and renewable energy. Called “Survivor – Energy Planet,” the game aims to get students thinking about how energy is produced and consumed, and how they can make environmentally friendly energy choices.

Research suggests significant teacher interest in having organizations come into the classrooms to present information related to current study topics. In Minnesota, learning about energy is already required in grades 3-8. The company plans to test and fine-tune the presentation in time for use during the 2005-2006 school year.

Calpine Sells Pennsylvania
Cogen Plant

Calpine Corp., which recently entered negotiations to sell four power plants totaling nearly 850 MW of capacity, announced July 11 that it completed the sale of its interest in the Grays Ferry Power Plant in Philadelphia. The company’s 50 percent stake in the 175 MW cogeneration facility was acquired by Thermal North

America Inc. for $37.4 million. Calpine expected to report a loss on the sale of $20 million in the June 30 second quarter.

The transaction was part of Calpine’s plan to reduce debt by more than $3 billion by the end of 2005. In addition to Grays Ferry, the other Calpine plants proposed for sale include the Ontelaunee Energy Center, Ontelaunee Township, Pa.; Philadelphia Water Works Plant, Philadelphia; and Morris Power Plant, Morris, Ill.

CHP Project Wins 2005
Environmental Award

Market Street Energy Co., in partnership with Cinergy Solutions, was named the winner of a 2005 Environmental Initiative Award conferred by the Minnesota Environmental Initiative (MEI). Presented at a May 5 banquet, the honor – awarded in the energy category – recognizes outstanding partnerships that take place to solve a wide range of complex environmental problems.

Market Street Energy was selected for the award on the basis of its teaming up with Cinergy to establish St. Paul Cogeneration – a wood-fueled combined heat and power plant that provides heat to District Energy St. Paul and electricity to Xcel Energy. It is the largest wood-fired CHP plant serving a district energy system in the United States.

In addition to energy, the MEI environmental awards recognize partnerships in four other categories: environmental education, land use, private sector innovation and public sector innovation. The annual awards program was founded in 1993.

Market Street Energy Co. is a for-profit affiliate of District Energy St. Paul, a non-profit heating utility, and District Cooling St. Paul, a nonprofit cooling utility, in St. Paul, Minn.