Technical Conference OG&E 2008 Wind RFP January 9 th , 2009 Kim Morphis Manager – Power Operations

1. Technical ConferenceOG&E 2008 Wind RFPJanuary 9th, 2009Kim MorphisManager – Power Operations 1

2. Contacts E-mail windpowerrfp@oge.com http://www.oge.com/es/rfp/wind2008-rfp.asp Independent Evaluators John Athas*, La Capra Associates, Inc. jathas@lacapra.com Barry Sheingold, New Energy Opportunities, Inc. bjs@newenergyopps.com

3. Agenda Logistics/Disclaimers Purpose (RFP and today’s conference) Introductions Schedule RFP Overview Independent Evaluator Comments Q&A

4. Logistics and Disclaimer Registration, facilities, etc. Interactive discussion OG&E will attempt to capture all comments, questions, and responses Raise Hand, use microphone, speak up, etc. All comments and responses from OG&E during conference should be considered tentative Formal responses will be posted on www.oge.com (next week) Independent Evaluator Comments now posted Evaluation Team members subject to change (prior to Final RFP date) No members will be added who have had any inappropriate contact with any bidder or OG&E Bid Team members

5. Purpose of RFP Process Approx. 300 MW Wind Energy to OG&E customers Competitive Procurement per OAC 165:35-34 Desired operational by summer 2010

6. Purpose of RFP (continued) Resource selection criteria: Lowest reasonable cost on risk-adjusted basis For Projects that are highly likely to be built on time And that will perform reliably on long-term basis Process criteria Fairness: no undue bias or preference to any bidder Comparability: different types of bids treated in a comparable manner Transparency

7. Purpose of Technical Conference Present overview of Draft RFP Solicit input from interested parties on draft Publish Final RFP by Jan 30th

8. Introductions OG&E RFP Evaluation Team Oklahoma Corporation Commission Oklahoma Attorney General Independent Evaluator

9. Independent Evaluator (OAC 165:35-34) Retained by OCC (by choice or required when utility bids allowed) Function Provide input and comments to draft and final RFP documents Monitor the RFP and competitive bidding process Attend and monitor opening of bids Perform an independent evaluation of bids Report to the Commission and Attorney General

10. Tentative RFP Schedule Issuance of Draft RFP December 9, 2008 Technical Conference January 9, 2009 Comments and Questions January 19, 2009 Issuance of Final RFP January 30, 2009 Notice of Intent to Bid Due February 9, 2009 Comments and Questions February 13, 2009 Self Build/ OG&E Affiliate Proposals Due February 26, 2009 All other proposals Due February 27, 2009 Notify Bidder(s) of Decision March 30, 2009 Complete Negotiations April 30, 2009

11. RFP Overview Approx. 300 MW Wind Energy Desired operational by summer 2010 WEPA, utility, or build/transfer 20 year initial term WEPA (w/ optional 5 yr extension) [Sec. 1.4.4 of RFP] Assume 345 KV OKC to Woodward

12. Transmission Evaluation • All requests evaluated equitably. • Only location of interconnection and amount of generation will be known in evaluation. • SPP Scenario Models for Summer and Winter Peak 2010 and 2014 (or other year as available from SPP) will be used. Assume Network Service. • 345 kV OKC to Woodward in-service 2010. • Estimate of cost to mitigate n-1 violations added to delivered price. • Other Items: • Transmission Service request will be made and cost determined by SPP in future. • Results of SPP Generation Interconnection (Cluster) Queue process not considered in evaluation.

13. Threshold Requirements Use of appropriate Forms ( Appendix C) COD date (No later than 12/31/10) Demonstration of financial ability to secure project and contract Binding offers (up to 120 days) Experience (50 MW or greater) Site Control

14. Evaluation Criteria Price (60%) Non-Price (40%) Price and Non-Price factors will be clearly stated in Final RFP, with a qualitative weighting Weighting of Non-Price factors will be characterized as High (H) Medium (M) Low (L)

15. Evaluation Criteria – Price Estimated Price Delivered Cost $/MWh (including est. trans upgrade cost) Price Firmness Output performance guarantee Capital cost guarantee Future O&M expense guarantee PTC Risk guarantee Weighting—output weighted higher than other factors

16. Evaluation Criteria – Non Price Factors High Proposed COD date, Commercial risks/benefits Creditworthiness and financial plan Site control, permitting, environmental/wildlife impacts Experience of Bidder and contractors Medium Proximity and availability of transmission Commercial access to and availability of generation technology Confidence in long-term project energy projections Low Residual Value

17. Next Steps Technical Conference Comments (Jan 14 approx) Comments and Questions January 19, 2009 Issuance of Final RFP January 30, 2009 Notice of Intent to Bid Due February 9, 2009 Comments and Questions February 13, 2009 Self Build/Affiliate Proposals Due February 26, 2009 Other proposals Due February 27, 2009

18. Additional Questions?