SPP Wind Integration

1. SPP Wind Integration Holly Starling Project Manager July 3, 2008

2. Agenda • FPL Energy • Gray County Wind Energy Center • Definitions • Wind Integration Keys • Current SPP Market • SPP Market Recommendations

3. FPL Energy is the nation’s No. 1 producer of wind power FPL Energy • Leading clean energy provider in 25 states • More than 90% of energy portfolio from clean fuels • Nation's leader in wind energy generation • Over 6,000MW of installed wind energy capacity by year end 2008 • 56 operating wind facilities in 16 states • World’s No. 1 producer of solar energy FPL Energy has a record of clean energy leadership

4. Operating Under construction (as of 4/30/08) FPL Energy’s US leading wind power portfolio includes 56 wind facilities in operation in 16 states FPL Energy’s Wind Portfolio Langdon Stateline Wilton North Dakota WPP93 Oliver I & II Vansycle Montfort South Dakota Waymart Mower Lake Benton II Mill Run Endeavor Wyoming Diablo Wind WPP90 WPP91 WPP91-92 WPP92 Green Ridge Green Mountain Crystal Lake High Winds Hancock Story County Peetz Table Cerro Gordo Somerset Meyersdale Logan Mountaineer Gray County Mojave 3 & 5 Mojave 16/17/18 Sky River TPC Victory Garden Oklahoma New Mexico WPP93 Weatherford Wolf Ridge Cabazon WPP94 Red Canyon Green Power Callahan Divide Delaware Mt. Horse Hollow I, II & III Southwest Mesa Woodward Mt. Indian Mesa King Mt. Capricorn Ridge and Expansion

5. FPL Energy’s Gray County Wind Energy Center wasthe 1st utility-scale wind facility in Kansas Gray County Wind Energy Center • 112.2MW nameplate capacity • 170 turbines, 660 kW per unit • Operating since November 2001

6. FPL Energy uses a state-of-the-art central monitoring center to ensure reliable wind facility operations Operational Excellence • Leverage corporate-wide knowledge base • Efficiencies • Cost reduction • Monitor critical parameters in real-time • Uses advanced technology to detect and prevent failure • Interface with system operators Fleet Performance Diagnostics Center

7. Net capacity factor is an indicator of wind resource Definitions • Nameplate capacity (MW): full power output • Net capacity factor (NCF): ratio of electric energy generated in a given period to the maximum possible • Wind resource is the key component • Kansas has excellent wind resource • Current turbine technology produces 35-45% NCF in Kansas Kansas has excellent wind resource *Source: http://www.awea.org

8. System balancing authorities are able to integrate wind, accommodate its variable nature and reduce costs Wind Integration Key Components • Market structure • Transmission system capability • Ancillary services and cost allocation • Wind forecasting Average wind integration costs are below $10/MWh *Source: DOE Annual Report on U.S. Wind Power Installation, Cost, and Performance Trends: 2007

9. SPP expects to transition to a nodal market by 2012 Current SPP Market • Bilateral • SPP ancillary service market needs reform to be wind-friendly • Transmission infrastructure necessary To grow wind investment in Kansas, SPP market rule reform is needed *Source: SPP Strategic Plan; Oct 24, 2006

10. Substational new wind development in SPP requires market changes Market Recommendations • Implement nodal market structure • Ensure wind facilities can interconnect to system • Provide transmission capability to transfer wind power from best wind resource areas to load • Enable wind power grid integration through ancillary service reform • Encourage SPP best practices wind forecasting capability New wind development is heavily dependent on the evolution of the SPP market and transmission system expansion *Source: SPP State of the Market Report, Apr 24, 2008

11. Questions? Holly Starling FPL Energy