Smith Cogeneration Extends Steam Agreement With Dayton Tire

OKLAHOMA CITY, Oct. 2, 2003 -- Smith Cogeneration, Inc. of Oklahoma City today announced the signing of an agreement with Dayton Tire Company of Oklahoma City. The accord provides a seven-year extension of their agreement to provide low-cost steam as a byproduct of their electric power, cogeneration plant on South Council Road in Oklahoma City.

The PowerSmith cogeneration power plant, of which Smith Cogeneration is the managing general partner, began service in 1989 supplying low-cost steam to Bridgestone at a time when the tire plant was scheduled to be shutdown due to high costs. The tire plant (then called the Firestone Plant) was making approximately 19,000 tires per day. After Firestone announced that this plant would close due to high costs, PowerSmith offered to provide low-cost steam by building a cogeneration plant adjacent to the tire plant. The plant would generate 110 MW of electric power to be sold to OGE and produce 80,000 lbs of steam per hour to be used in Firestones tire making facility.

Accepting PowerSmith's offer, Firestone agreed to keep the plant open for 15 years, and to invest in new capital equipment following a new wage rate negotiation with the Firestone employees. The cogeneration plant was a huge success. The Japanese tire concern, Bridgestone, bought the Firestone plant in 1989 and increased tire production to 44,000 tires per day. The tire plant became the most cost efficient tire manufacturer in the United States and one of Oklahoma City's largest employers.

"We've had great partners in this 15-year relationship, securing over 2,000 well-paying jobs for Oklahoma, utilizing over 100 billion cubic feet of Oklahoma natural gas, and generating low-cost electric power. The ongoing success of the plant validates our original promise and commitment to the State of Oklahoma," said Don Smith, president of Smith Cogeneration. "As we begin our 15th year of operation and prepare the plant for the next 15 years, we will continue to work closely with our partners Bridgestone/Firestone North America (Dayton Tire) and OGE to provide clean, cost-efficient steam to power Oklahoma's economy."