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W A T E R I E N E R G Y I L i E E RIVERSIDE PUBLIC UTILITIES Board Memorandum P U B L I C U T T L I T I E 5 BOARD OF PUBLIC UTILITIES DATE: February 5, 2010 ITEM NO: 10 SUBJECT: AGREEMENT WITH NORTHWEST PIPE COMPANY AND LUCID ENERGY TECHNOLOGIES, LLP ISSUE: Consideration of agreement with Northwest Pipe Company and Lucid Energy Technologies, LLP to furnish a small in-pipe hydro electric generator for testing and eventual donation to the City of Riverside Water Utility. RECOMMENDATION: That the Board of Public Utilities approve the Field Test Demonstration Agreement for Northwest Power Pipe between the City of Riverside and Northwest Pipe Company and Lucid Energy Technologies LLP. BACKGROUND: Northwest Pipe Company (NWP) and Lucid Energy Technologies, LLP (LET) have developed technology to capture untapped energy from municipal water and wastewater pipelines. The result of their joint development efforts is Northwest PowerPipe TM (NWPP), an "in-conduit" vertical axis spherical turbine system that is designed to utilize water flow within a pipeline to generate green energy. Northwest PowerPipe converts excess energy in a water transmission line into usable electricity, resulting in greater efficiency in the use of existing resources. Because the turbine is lift-based, resulting in faster rotation, NWPP is able to generate substantially more power than traditional drag-based turbines. Riverside Public Utilities (RPU) staff initiated conversations with NWP at the Association of California Water Agencies conference last year to field test a unit in Riverside. To date, testing of the unit has been limited to a laboratory at Utah State University. If approved, this will be the first field installation of the NWPP. RPU proposes to install one 48-inch NWPP unit in the Gage Transmission pipeline near Linden Street. Based on the pipeline flows and pressures, the NWPP is expected to generate between 2 and 6 kW on a continuous basis. Construction is currently scheduled for February 16 —26, 2010. Under the terms of the agreement Northwest Pipe would provide a 48-inch NWPP unit at no cost to Riverside. RPU would pay for installation of the unit and provide access for testing and data collection. Terms of the agreement have been finalized with Northwest Pipe Company and Lucid Energy Technologies LLP. Installation of the NWPP provides an opportunity for RPU to be first in the nation with this cutting edge renewable power. On December 18, 2009, the Board of Public Utilities approved this agreement in concept and recommended approval of the donation of the Northwest PowerPipe to the City Council. On January 5, 2010, the City Council approved the donation of the Northwest PowerPipe.