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APPA

“What large customers want from their local utilities”

Presentation by Keith Todd

September 26, 2005

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Keith Todd (Director Operations)

C & T Malt Great Western Malting

• Vancouver Washington• Pocatello Idaho

Canada Malting• Calgary Alberta• Thunder Bay Ontario• Montreal Quebec• Vancouver BC

Operating in UK and Australia

3Source Rabobank estimates

Worlds Largest Independent Maltsters

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What is Malt The major raw material in beer production Made Mainly from barley

Vancouver plants barley comes from Washington & Idaho

Other cereals can be malted Wheat, Rye, Rice

C & T Malt produce 600,000 tonnes in NA Malt is used in

Brewing Beer Distilling Food Flour

I tonne of malt will produce at least 10,000 bottles of beer

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Schematic of Malting Process

receiving pre-cleaningdryingcooling

storagemain cleaning

grading

steeping germinating kilning deculming storage

blending dust removal despatch

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Structure of a Barley Grain

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Modification Patterns

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Significant Malting Operating Costs

40%

30%

23%

0%

10%

20%

30%

40%

50%

Gas Labor Power

% of Variable Manuf Cost

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What does GWM want from Clark county PUD ?

Reliable Supply Outstanding Customer Service All at the best possible price Novel efficiency incentives and support

Sixth Largest PUD customer 3.5MW load

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Reliable Supply

Couldn’t be more pleased They merit their Salt River Project reliability

survey ranking as “Best in the West” Only one power outage in 3 years !

• Fork truck driver hit primary feed.• This is a great testament to their asset

protection and planned maintenance programs

Most reliable service in all 5 of our NA plants

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Outstanding Customer Service

Do an excellent Job Dedicated account manager One stop shopping Rapid response Rapid action

• Billing• Metering• Engineering

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All at the best possible price

Can always be better Over 50% increase in last 5 years 2.5 years stability 2% increase this October

This is a fair price, but increases make us challenge our own efficiency to become competitive

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Novel efficiency incentives and support

Worldwide and Domestic competition Western Europeans way ahead

• Government directives on efficiency/emissions• Up to 50% more efficient

New more efficient North American plants

Want to use efficiencies learned at our other plants

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Positive Examples

E Manager for load and billing Now get accurate data when we need it with no effort

required from GWM Use it as monitoring and targeting tool

Feasibility study help in reintroduction of Cogen at Vancouver site

Facilitated efficiency studies Compressed air Lighting

OSU industrial energy survey NW Energy Alliance Motor Management Software Combined billing saving $ on power factor charges

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Positive Examples

EnVINTA 1 to 5 Program Two sessions sponsored by PUD

• Focus on management systems and practices Were able to participate in Further sessions

Committed staff time 66% funding Clark PUD & NW Energy Alliance

• Site visit including validation of diagnostic results and identification of opportunities available;

• Development of a structured action plan for improvement;• Implementation support in the form of coaching and assistance with

selected potential projects;• Revisiting the diagnostic session to track progress; and

• The development of a case study.

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Positive Examples

$300k to $500k potential savings Currently recovered

$80k on “low hanging efficiency” $40k on compressed air $21k on Power Factor

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Energy PolicyGreat Western Malting

  GW is committed to:     Reducing energy costs and using energy resources efficiently.

    Achieving target energy cost reductions (on a per ton of production basis) of a minimum 5% per year for the 3 years commencing 2006.     Making the management of energy part of the way we do business.

  

To achieve this, GW will undertake the following actions: 

    Develop and maintain a strategic plan that incorporates identified actions and defines our intended actions.     Introduce effective monitoring and reporting systems for energy use to measure site and work area performance and track this against targets set for each major energy using work area.     Ensure that energy efficiency is considered for all new plant and equipment decisions, including life cycle costing.     Incorporate energy performance as a key performance indicator in operational planning and in the performance appraisal processes.   Publicly recognize achievements in energy reduction.

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Moving forward

In last 3 years we have developed a far better understanding of energy performance at all employee levels.

We will continue to challenge ourselves and the local utility to maintain this pace.

Excellent Reliability, Service and Support are expected and not negotiable.