These excerpts taken from the ARCI 10-K filed Mar 20, 2009.
Appliance Recycling for Energy Efficiency Programs
In 1989, we began contracting with electric utility companies to provide turnkey appliance recycling services to support their energy conservation efforts. Since that time, we have provided our services to more than eighty utilities throughout the U.S. and Canada. Current programs include:
1. A contract with Southern California Edison (Edison) to handle refrigerator and freezer recycling operations, extending Edisons 2006-2008 appliance recycling program, which covers fifty percent of the previous southern and central California territories that we handled under Edisons 2004-2005 program. The contract runs through December 2009. Under terms of this agreement, Edison is responsible for advertising the program. We expect the contract will be renewed for 2010 and 2011.
2. A bridge contract with San Diego Gas & Electric (SDG&E) for their 2006-2008 program to provide refrigerator, freezer and room air conditioner recycling services for their residential and small commercial customers. The contract runs through December 2009. Under terms of this agreement, we are responsible for advertising the program. We expect the contract will be renewed for 2010 and 2011.
3. An expansion of our contract with Southern California Public Power Authority (SCPPA), which sponsors a program to replace and recycle old, inefficient refrigerators owned by low income residents in the city. We currently perform these services for all participating members of SCPPA, including the Los Angeles Department of Water and Power (LADWP). The contract runs through June 2010.
4. An agreement with WPPI Energy (WPPI) to provide appliance recycling services through 2009. WPPI is a regional power company owned by 50 municipalities that operate electric utilities. They supply power to 190,000 homes and businesses in Wisconsin, Upper Michigan and Iowa. WPPI is responsible for advertising this program.
5. An agreement entered into in December 2004 with Austin Energy in Texas to manage appliance recycling operations in their service territory during 2005. The contract was initially extended through 2006, 2007 and 2008, and was extended again until December 2009 with two one-year extensions. In 2008, Austin Energy initiated a refrigerator replacement program for which we purchase and install new appliances and recycle the old units. Austin Energy is the nations ninth largest community-owned electric utility, serving 388,000 customers within the City of Austin and surrounding counties. Austin Energy is responsible for advertising this program.
6. A contract announced in June 2007 with Ontario Power Authority (OPA) in Ontario, Canada, to recycle refrigerators, freezers and room air conditioners throughout the province. The program is administered by OPA and managed by more than seventy local electric distribution companies. This contract runs through the end of 2010. OPA is responsible for advertising this program.
7. A subcontracting agreement with Conservation Services Group (CSG) to provide appliance recycling services to Ameren Illinois Utilities (AIU) residential customers in Illinois. The program is administered by CSG and the contract is through May 2011. We are responsible for advertising the program at the direction of CSG.
8. In November 2008, we entered into contracts with American Electric Power (AEP) Texas North Company (TNC), Texas Central Company (TCC) and Southwestern Electric Power Company (SWEPCO) to manage appliance recycling for approximately 930,000 residential and 184,000 commercial customers through December 2009. We are responsible for advertising the programs.
9. Additionally, we have appliance recycling contracts with Minnesota Power and City Water Light and Power (CWLP) of Springfield, Illinois.
In the past two years, we have seen a heightened interest from electric utilities that recognize the effectiveness of programs to recycle energy inefficient appliances. We are aggressively pursuing this segment of customers in 2009 and expect that we will continue to submit proposals for various new utility appliance recycling programs throughout the year. However, we still have a limited ability to project revenues from new utility programs in 2009. We cannot predict recycling volumes or if we will be successful obtaining new contracts.
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