The San Bernardino Municipal Water Department recently constructed a Co-Generation Facility at the Water Reclamation Plant. The Co-Generation project consists of two 750 kilowatt generators fueled by methane gas generated from the bio-solids produced at the Water Reclamation Plant during the waste water treatment processes. The new engines are clean burning and meet required emission standards of the South Coast Air Quality Management District. The Co-Generation project was eligible for rebate funds under the State Self Generation Incentive program and the Water Department received an $800,000.00 rebate from Southern California Edison. The daily operation of the Co-Generation facility will save approximately $1000.00 each day in energy costs. The cost savings realized by the Co-Generation facility confirms the implementation of responsible financial management policies of the Water Department.