City of Houston Cogeneration Electricity Plant
October 3, 2007

Bovay has been selected to participate in a Feasibility Study with Parsons Brinckerhoff Quade & Douglas (PB Power) for a City of Houston Cogeneration Electrical Plant.

The project involves a feasibility study to determine whether the city should construct its own Cogeneration Power Plant. The intended objective is to: (1) generate the total electricity requirements of a designated City Facility, (2) utilize the exhaust heat to supplement a process that will offset natural gas consumption, and (3) appropriately size the co-generation plant and, if feasible, size the plant to accommodate an additional 50 to 75 megawatts. This additional capacity can be sold on the open market.

The Feasibility Study will be undertaken in two phases: (1) a high-level study to identify the relative merits and flaws of each location, and (2) a detailed study on each of the selected preferred locations considering issues such as air quality, visual and noise impacts, transmission line proximity, permit issues and constructability.