Symbiotics LLC | A New Generation of Hydropower

Investors

Investors

Symbiotics LLC (Symbiotics) was founded under the business model that there are existing hydroelectric facilities and sites that can be retrofitted to produce a significant amount of electrical energy at prices competitive with alternate sources and with minimal environmental impact.

Symbiotics is a joint venture between Ecosystems Research Institute1 and Northwest Power Services2. The principals involved in this relationship bring over 20 years experience in selecting, permitting, construction and operation of hydroelectric facilities throughout the western United States.

Symbiotics has completed FERC permit applications for a large number of projects that have been evaluated in our proprietary pre-feasibility study and are considered to be economically feasible for development.

At Symbiotics we value both energy independence and environmental stewardship. Since 2001 we have been developing low-impact hydroelectric projects to meet the growing demand for renewable energy while preserving a healthy environment.

Included in our project portfolio is the building of new pumped-storage facilities as well as the retrofitting of existing dams that currently have no hydroelectric facilities. Combining the proven efficiency of clean hydropower with emerging technologies and a new environmental ethic, we envision a second generation of hydropower for melding in an economically efficient and environmentally correct manner the old with the new.

Hydroelectric power represents the most efficient form of renewable energy resource. It is a proven technology with turbine efficiencies steadily increasing with design improvements. To select cost-effective hydro power sources, several factors were taken into consideration and their supporting tasks undertaken. Implementation of the initial task (Permit Application) involved the selection of 280 hydroelectric sites that would have minimal environmental concerns for permitting and project construction costs. Overall project implementation time schedules were also factors weighing in the site selection process.

The sites that were selected for further investigation and feasibility study used the following basic criteria:

Sites which had FERC (Federal Energy Regulatory Commission) permits at one time but were not built because of a poor or no power sales contract
Sites with existing dams (the majority of the environmental impacts have already occurred at these sites)
Federal facilities (dams built by the Bureau of Reclamation or the Corps of Engineers), thus assuring quality design and construction of those existing facilities.

Symbiotics has undertaken an exhaustive search for projects that fit the above criteria. In the selection of existing dam sites, additional criteria were added to the selection process. These criteria selected federal dams that had the highest hydraulic head and hydrology to support flow regimes and thus the potential power at a site.

Symbiotics has, from 2001 to 2004, filed 280 Preliminary Permit applications on the best sites, maintaining the first priority date (permittee has exclusive rights to develop the project for a period of three years) on 28 projects. There are three other sites that are pending. Currently, permitted sites represent a combined capacity of 1,341 MW and an estimated annual generation of 244 gWh. Pending sites account for a potential annual generation of an additional 16.8 gWh (81 MW).

Methodology of Database Development and Project Selection

To reach the goal of operating fifteen (15) newly built hydroelectric facilities with an annual generation of at least 380 gWh, Symbiotics LLC implemented a strategy that matched the observed behavior of the hydroelectric development industry. Observation showed that from the initial filing of a permit to the end of construction there was only a ten percent success rate. To implement our business plan we needed to manage this project mortality rate, which was done utilizing the following procedure.

Potential sites were selected which had high unutilized hydroelectric potential. It was estimated that approximately 250 to 300 sites where some data existed would need to be evaluated to determine site capacity and annual generation. These values would allow the initial approximation of annual revenue and capital investment.

Because the intent was to streamline the permitting process and reduce project mortalities due to environmental reasons, we only select sites on existing reservoirs where no hydroelectric facilities were installed. An added benefit of this approach was that building on existing structures minimizes environmental concerns and represents a renewable resource, and is therefore eligible for renewable credits (green tags).

To start the development of the database from which to select possible sites, the National Inventory of Dams (NID) dataset for the United States was obtained. This database had information on over 30,000 dams. It should be noted that the NID is no longer available due to heightened (post 9/11) security concerns. A second database was acquired from a $23M study conducted by the U.S. Department of Energy through the Idaho National Engineering Laboratory (1983).

This study examined the feasibility of hydroelectric power at a large number of sites with and without dams. The final two databases (which are also no longer available) documented facilities built by the U.S. Bureau of Reclamation and the U.S. Army Corps of Engineers. These separate databases were combined into one and the best sites were selected based upon capacity, annual generation, and low environmental sensitivity.

Sites were systematically selected which appeared to have hydroelectric power potential and which would be cost effective. To that end, Symbiotics LLC submitted to the FERC over 280 applications for preliminary permits. This effort consisted of more applications than have ever been submitted to the FERC by any one entity.

As a development company with extensive licensing capabilities, we welcome contacts from qualified investors. Our preferred channel is to contact:

Kim Johnson
Executive Vice President of Investor Relations
Telephone: 816-728-3533
Email: kim.johnson@symbioticsenergy.com

1Ecosystems Research Institute (ERI) is a multi-disciplinary environmental consulting firm with personnel qualified to address all aspects of the aquatic and terrestrial environment. The ERI staff and associates include aquatics ecologists, wetland specialists, terrestrial ecologists, fisheries and wildlife biologists, environmental engineers, soil scientists, data analysts, and water quality laboratory personnel.

ERI has a broad range of experience with environmental monitoring, mitigation design and implementation, natural resource management, and regulatory compliance. In addition, since its inception in 1981, ERI has been involved in a wide variety of important environmental projects in ecologically sensitive areas. ERI has been a member of a number of joint venture teams and all ERI personnel are experienced in working with other team members with complementary expertise.

2Founded in 1993, Northwest Power Services, Inc. (NPSI) specializes in project management, construction supervision and project operation for hydroelectric generating facilities. The company has chosen to limit direct staff to principle management personnel in the aforementioned areas. Support staff is obtained from major engineering/construction firms as required.

The company maintains sufficient in house expertise to facilitate FERC, state and local government, and resource agency coordination, licensing, permitting and regulatory compliance. NPSI has been involved in a wide variety of hydroelectric generation projects from initial site investigations and evaluation thru licensing, design and construction. NPSI has been involved in several joint venture projects that have utilized the team approach with other disciplines and organizations to augment in house expertise.