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WindShare I Investment Proposal

WindShare I Investment Proposal. Presentation to WindShare I Members General Meeting, June 7th, 2006. Introduction. Background Decision: explore investment opportunities Proposal: Lakewind-Bervie Project. EF. WindShare I (Share Capital Co-op). THESI Toronto Hydro Energy Services.

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WindShare I Investment Proposal

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  1. WindShare I Investment Proposal Presentation to WindShare I Members General Meeting, June 7th, 2006

  2. Introduction • Background • Decision: explore investment opportunities • Proposal: Lakewind-Bervie Project EF

  3. WindShare I (Share Capital Co-op) THESI Toronto Hydro Energy Services Ex Place Turbine (Joint Venture) Background Current Structure EF

  4. Background • WindShare I AGM - February 2006 • Reviewed several new lakeshore turbine investment scenarios EF

  5. Background • Constricting factors: • Poor pricing • Lack of PPA (power purchase agreement) • Height restrictions - preventing use of more efficient turbines EF

  6. Background • SOC (Standard Offer Contract) • Developments <10 Meg (ExPlace 650kw) • Expected price: 11c/kWh • 20 year contract • Indexed to inflation March 2006 EF

  7. Background • Impact of SOCs: • Improves economics of ExPlace turbine • Can’t overcome height restrictions - preventing use of more efficient turbines EF

  8. Background • AGM Conclusion: we must look elsewhere for our next investment EF

  9. Lakewind Overview • WindShare II created by TREC to develop Lakewind • Joint venture with local cooperative: Countryside Energy Coop (Milverton) EH

  10. Lakewind–Bervie Project • Community wind power project east of Bervie, near Kincardine • 900 acres • Existing wind study • Adjacent interconnect EH

  11. Lakewind-Bervie: Progress Report • Lease Agreement signed • Wind Data • Interconnection Update • Environmental Assessment & Bird Study EH

  12. Lakewind-Bervie: Business Case • 11 cents/kWh + strong wind regime = healthy economic revenue (20 years) • Projected Internal Rate of Return: > 7% EH

  13. Offering Statement • Capital target: $20 million • Risks • Schedules EH

  14. Ex Place Turbine (Joint Venture) Current Business PartnershipStructures WindShare I (Share Capital Co-op) THESI Toronto Hydro Energy Services Countryside Energy Co-op (Share Capital Co-op) WindShare II (Share Capital Co-op) Lakewind Power Co-operative (Joint Venture) Lakewind Bervie Project EF

  15. Proposal to WindShare I Members • Merger between WindShare I and WindShare II • Create one WindShare share capital cooperative EF

  16. Lakewind Bervie Project Ex Place Turbine (Joint Venture) Proposed Business Partnership Structure Countryside Energy Co-op (Share Capital Co-op) WindShare I & II (New Share Capital Co-op) THESI Toronto Hydro Energy Services Lakewind Power Co-op (Joint Venture) EF

  17. Benefits of Merger • Social • WindShare I: reputation & experience • CEC: Local partner & rural perspective • Environmental • Economic • Economies of scale • Standard Offer Contract EF

  18. Scenario Comparison DR

  19. Business entities, contract & conditions “Pioneer” membership designation Investors-in-waiting: Transfer funds held in escrow (with approval) Preference shares: transfer at ‘threshold’ point Implications for WindShare I Other Board Member???

  20. Lakewind Proposed Timeline • Summer 06: WindShare and CEC offering agreements to FSCO • Fall 06: FSCO approval; Bervie EA completed; membership campaign launch • Spring 07: turbines ordered • Spring 08: turbine installation Other Board Member???

  21. View from the Board • Motion Review • Q&A • Membership Motion • Vote EF

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