Windfall from the Windfarm

1. Windfall from the Windfarm Sherman County, OR

2. Klondike Overview • Located in Sherman County, OR • 7 miles east of Wasco • 24 MW capacity from 16 turbines • Developed by Northwestern Wind Power • On-line December 2001 • Just before expiration of Production Tax Credit • 20 year Power Purchase Agreement with Bonneville Power • Purchased by PPM in January 2003

3. Sherman County at a Glance • ‘One crop county’ • Primarily dryland wheat farming • Some barley, oats, cattle and wind • Currently experiencing 5th year of drought • County ranks last out of 36 in per capita income • Commercial quality wind resource

4. Brett Wilcox, President and Owner of Golden Northwest Aluminum, Inc., started Northwestern Wind Power in wake of energy crisis to diversify power for aluminum smelters Broad Public Support Planning process designed to inform the community and to minimize conflict Local government supportive in planning process Minimal environmental and aesthetic issues Result: expedited 1 year process Klondike Planning & Development Developed by Northwestern Wind Power

5. Permitting and Siting employment Environmental Assessments PBS Environmental, Portland, OR NW Wildlife Consultants, Pendleton, OR WEST, Inc., Cheyenne, WY (field office Walla Walla, WA) Legal work on siting Stoel Rives, Portland, OR Design & engineering TriAxis Engineering, Corvallis, OR Tenneson Engineering, The Dalles, OR Don Keef & Associates, Redding, CA Consulting CH2M Hill, Portland, OR Development Employment

6. Construction Labor • Additional income accrues to suppliers: fuel, transportation, equipment rentals • Crews stayed at local trailer parks and motels, and patronized local restaurants, markets, and hardware store * Labor hours estimated through conversations with contractors, typically combining length of service, number of employees, and hours per week

7. Businesses such as cafes, markets, motels & RV parks, and hardware stores, experienced increased activity during construction and steady flow during operations Economic Benefits Clark Street, Wasco, OR

8. Increased business during construction and maintenance Construction crews ate lunch at the café, or Mike and Kathy catered on-site Business success relies on occasional external stimulus Revenue allowed construction of new covered front porch and benches Considering building a motel to be ready for Klondike expansion, as well as on-site restaurant trailer Lean-to Café and Goose Pit Saloon Mike Gutfleish and Kathy Neihart, Co-owners of The Lean-To Café and Goosepit Saloon. • “I’d put a windmill on top of this building” • Kathy Neihart, co-owner of The Lean-To Cafe

9. GE operates and maintains the 16 turbines O&M expense is predominantly labor cost 3 full-time technicians 1 part-time administrator All 4 live in Sherman or surrounding counties Result is that much of O&M expense remains local Considering addition of a part-time, local technician Operations and Maintenance GE Technicians, Jose Guzman, Seth Stanfield and Flemming Pedersen stand in front of the Klondike Wind Project.

10. Minimal impact to wheat production: total footprint is approximately 1/2 acre per turbine Half acre would typically yield 25 bushels of wheat at $5 per bushel, totaling $125 Contracts vary, but landowner royalty payments are typically $2,000 - 4,000 per turbine each year Landowners • “Wind turbines bring benefits I hadn’t expected. The roads allow easier access to my fields, and the turbines make money during the winter when I can’t work my land. We want turbines on every acre.” • John Hilderbrand, landowner Lee Kaseberg and John Hilderbrand, standing in front of their wheat and wind crops

11. Klondike Tax Revenues • First Major Capital Investment in Sherman County • Accounts for approximately 10% of local tax base • “Wind helped to diversify the economy. It’s another crop we can harvest, [and] it helps fill gaps in the county budget.” • Mike McArthur, Sherman County Judge Sherman County Grade School & Fire House

12. Klondike Tax Revenues • Wind Turbine Contribution, 2002-2003: $321,205

13. Conclusions • The Klondike Wind Project has positively impacted Sherman County in terms of: • Construction and Operations Jobs • Tax revenues • Induced business activity • Landowner revenue • Impetus for future wind projects, both commercial (Klondike Phase II) and community (China Hollow) Thank You! Renewable Northwest Project 917 SW Oak Portland, OR 97205 503.223.4544 www.rnp.org