Welcome

1. Welcome A Case Study in Community Wind New Ulm Public Utilities Commission - Success with Due Diligence

2. Introduction Advanced wind resource assessment brings success to community wind developments

3. Defining Community Wind • What is community wind? • Is it… • Size? • Location? • Economics? • Community-based wind energy development is partially owned by local land owners or local stake holders

4. Who is New Ulm Public Utilities Commission? • New Ulm Public Utilities Commission (NUPUC) is a municipal utility serving ~6,000 consumers • Goal to identify an economically viable and long-term new electrical generation resource • NUPUC analyzed ~10 options for existing and new generation • NUPUC ascertained that wind was the most competitive long-term • Called for RFP’s form third party power producers • This was unsuccessful because third party vendors were too costly

5. NUPUC and Wind Energy • Advanced methodology wind resource assessment enabled NUPUC to make time and risk sensitive decisions • By providing detailed long-term analysis in weeks vs. years • Leads to making time sensitive and capital investment decisions • Robust methodology and detailed analysis results were used in the economic analysis • 3D gridded data vs. singular met data • Giving high detail across the entire development site • Long term data analysis vs. 1-year data • Provided opportunity-cost benefits and project planning advantages • Original wind turbine cost estimates were for $1,200/kW, now $1,500/kW

6. Economics • NUPUC has completed their economic projections • Determined that they need 5 MW of wind energy • They were able to scope and model project cost • They will achieve their MN RPS mandate • (Renewable Portfolio Standard) • They will be able to use CREB’s for their project • (Clean Renewable Energy Bonds – IRS website) • Project output and projected revenue are now known • NUPUC’s high confidence in economic projections started with detailed wind resource analysis

7. Determining Economic Benefit • Three main initial due diligence components: • Wind speed • Access to transmission/site constructability • Economic analysis

8. Wind Resource Assessment Value • Long term wind resource assessment provided NUPUC with valuable data • P-95 wind speed is around 7 to 7.5 m/s annual average • NUPUC has less risk in spending capital • Interconnection studies and permitting • Met tower assessment • Turbine vendors down payments • Balance Of Plant design • High value at the beginning of project

9. Next Steps for NUPUC? • The challenges of being local – working with your neighbors • Further planning and investment is now feasible • BOP • Local stakeholder negotiations • Validation of wind speed • Financing • Permitting • Maintenance contracts • Building in 2009 2010 season

10. Points to Remember • Community wind is economically viable and valuable to communities • Advanced wind resource assessment mitigates long-term and near-term capital and time sensitive risk issues • The development process is sensitive – work with and educate your neighbors about the advantages of community based wind • Successful community wind is based not just on economics but also local ownership and involvement

11. Thank you! • Wind energy is great for communities – local wind farms empower communities • A special thank you to Pat Wrase and the New Ulm Public Utilities Commission Yusef Orest WindLogics Inc yusefo@windlogics.com