Table of Contents

2. Table of Contents • Brookfield Asset Management – Overview • Brookfield Renewable Power – Overview • Hydropower is an Important Contributor to Renewable Energy in NE and NY • Why is Hydropower Capacity Declining? • Policies • Pumped Storage

3. Brookfield Asset Management | Overview

4. Brookfield Asset Management A global asset management company • Brookfield Asset Management is an asset management company, focused on property, power and infrastructure assets • Approximately US$80 billion of assets owned and under management • Approximately 10,000 employees in the Americas, Europe and Australia • 2.5 million acres of timberlands • 165 renewable power plants • 120 million sq. ft.office and retail space • 11,000 km of transmission lines

5. Brookfield Renewable Power | Overview

6. Brookfield Renewable Power • Brookfield Renewable Power is a responsible developer, owner and operator of renewable power generation facilities • Brookfield Renewable Power has strong corporate values • Long-term commitment to communities in which we operate • High safety standards • Environmentally responsible • Brookfield Renewable Power is committed to growth on a value basis

7. Brookfield Renewable Power Unique power operations focused on renewable energy sources • Brookfield Renewable Power is a leading producer and developer of renewable energy focused on: • hydroelectric • wind • Over US$12 billion of assets owned and under management • Approximately 1,000 employees in North America and Brazil

8. Brookfield Renewable Power Leader in hydroelectric power in North America and Brazil • 95% of our production is sourced from renewable energy • Generating assets on 64 river systems • Over 100 years of power generating experience Total Output Capacity Hydroelectric Portfolio MarketsStations MW United States New England 20 841 New York 75 705 PJM/MISO 4 168 Louisiana 1 192 Canada Quebec 6 286 Ontario 21 897 British Columbia 5 135 Brazil 32 532 164 3,756 5% 5% 90% Hydroelectric Wind Other

9. Hydroelectric - New England Operating Statistics Installed capacity: 841 MW* Annual generation: 1,828 GWh Storage: 509 GWh Generating stations: 20 Generating units: 68 • Located on five river systems in New Hampshire and Maine. • New England assets are interconnected to the New England Power Pool. • * Includes 600 MW Pumped Storage Facility

10. Hydroelectric - New York State Operating Statistics Installed capacity: 705 MW Annual generation: 3,025 GWh Storage: 541 GWh Generating stations: 75 Generating units: 180 • Located on 15 river systems in upstate New York. • New York assets are interconnected to five different NYISO market zones. Production CentersInstalled Annual Capacity Generation Generating Generating in MW in GWh Units Stations Lake Ontario Operations 215 892 79 29 St. Lawrence Operations 229 1,131 57 32 Hudson River Operations 261 1,002 41 14

11. Active Participant in New England and New York • New York • Own over 87% of all non-NYPA, non-utility owned/controlled hydropower in the state (13.5% of all hydropower) • 12 NY projects participate in NY RPS Main Tier – selected via auction • Maine • Own over 20% of all hydropower in the state • Sell REC’s into ME RPS • New Hampshire • Own 5% of all hydropower in the state • Rhode Island • Participate in RI RPS • Massachusetts • Bear Swamp Pumped Storage is 8th largest power plant in state Nationwide: • 40% of Brookfield facilities are Low Impact Hydropower Institute (LIHI) certified • 71% if our stations are 5 MW or under • Participate in mandatory and voluntary attribute markets

12. Hydropower is an Important Contributor to Renewable Energy in NE and NY

13. 63 47 1 41 4 28 14 x 5 FERC-Licensed Hydropower in New England • 198 Hydropower facilities in operation • 3500 MWs installed nameplate capacity • 138 facilities are under 5 MW • 70% of all stations • 5% of all capacity Source: FERC

14. 17% (49%) 27.8% (79%) 11.5% (74%) 1.9% (46%) 11.5% (74%) 1.6% (43%) Hydropower Share of New England Generation • Hydropower is important share of overall electricity capacity • Hydropower generally makes up large percentage of overall renewable power capacity • Important to maintain if states are going to meet their clean energy goals • Hydropower share of total capacity / • (percentage of all renewable capacity made up by Hydropower) Source: EIA DOE, 2007 data

15. Hydropower Installed Capacity Declining 14% Decline in Hydropower Capacity from 1997 to 2007 in New England states Only New Hampshire has had increase Source: EIA - DOE

16. Why?

17. Possible Reasons • 70% of FERC-licensed hydropower project are under 5 MW • Re-licensing costs are the same regardless of size of facility • Environmental safeguards have same capital cost regardless of size • Size correlates to power revenues • Commodity pricing • Revenues from other sources (RPS, Voluntary RECs, Capacity) limited • Do smaller hydropower projects face greater challenges than large ones? • Dam retirements • Natural retirements – maintenance & replacement • ESA – Atlantic Salmon, American eels • Compliance costs

18. Possible Policy Approaches

19. Policy Approaches • Renewable Electricity Standards • Have been focused on new growth • Baseline set – hydropower often is the baseline • Little attention to erosion of baseline or replacement costs • Some include tier for small hydropower regardless of project age • Some have tiers that include small hydropower regardless of project age – but usually compliance obligations/demand not robust • New York has Maintenance Tier • Current national RES bills do not include any pre-1992 hydro • Waxman-Markey supports wind, solar, etc. regardless of vintage • Inclusion of Low Impact Hydropower Institute certified hydro as opposed to age cut-off would help preserve good, existing hydropower • Most advanced environmental safeguards • Rewards “good behavior” • Cap and Trade • Putting a price on carbon creates demand and pricing incentive for renewables • But only if the program accurately prices carbon (doesn’t artificially lower it through allocation scheme)

20. Pumped Storage

21. Pumped Storage • Two New England states (Massachusetts & Connecticut) and New York have pumped storage • Totals 2,969 MW in 2007 (31 MW increase from 1997) • Net user of electricity 1.3 MW used : 1 MW generated • Important resource as more intermittent renewable resources are added to the grid • Quick start • Dispatchable • Transmission firming • Policy approach: Recognize value of pumped storage role in green energy future – investment tax credits, etc.