Clean Line Energy National Association of State Utility Consumer Advocates

1. Clean Line Energy National Association of State Utility Consumer Advocates Charleston SC Annual Meeting June 2012

2. Clean Line’s projects connect the best wind resources to load centers Clean Line projects Rock Island Clean Line’s projects connect the regions where wind power is most abundant; existing extra-high voltage transmission lines do not Grain Belt Express Centennial West Plains & Eastern Existing High Voltage Transmission Lines (500–999kV AC and HVDC)

3. Clean Line Energy PartnersEntrepreneurial team, focus, and capital to connect renewable energy with demand • Clean Line Energy focuses on building transmission lines to connect renewable resources to load centers • Clean Line seeks to develop, own and operate long haul, high voltage direct current (HVDC) transmission lines across the United States, helping solve one of the most vexing challenges to a cleaner energy future • Clean Line’s principals, partners and investors bring unique perspective, experience and focus to transmission development along with a track record of success in energy project development Large demand centers Strong wind resources Integrating large clean energy sources with demand centers

4. HVDC is the most efficient method to transmit large amounts of electricity over long distances • More efficient— Lower line losses • Lower cost— Requires less infrastructure, results in lower costs and lower prices for delivered renewable energy • Improved reliability — Control of power flow enhances system stability and lowers cost of integrating wind • Smaller footprint — Use narrower right-of-way than equivalent Alternating Current (AC) AC Footprint DC Footprint

5. Source: www.nerc.com Transmission critical link and smallest part of the rate dollar 60 ¢ 7 ¢ 28 ¢ 5 ¢

6. Many transmission projects driven by large differences in regional costs of renewables and state policy goals Renewable generation costs, by region Source: IHS (enXco Renewables Directions Conference, March 28, 2012)

7. Wind energy is cost competitive with gas-fired plants and can help economically meet renewables demand Levelized Cost of Energy $ / MWh Transmission Generation Note: Mid-point of Lazard’s LCOE estimates, except for lower-end for coal (no carbon capture). Wind includes lower-end LCOE estimate (for best quality wind) + $25/MWh transmission cost. Long-term natural gas price of $5.5/MMBTU Source: Lazard

8. Connecting high capacity factor wind provides important results for utilities and consumers • Access low cost wind resource that is most competitive with conventional energy sources • Lock in attractive long-term purchases with fixed pricing Price certainty • Diversify generation mix to reduce exposure to volatile commodity prices and policy uncertainty • Extend power sources geographically • Direct delivery to region reduces transmission risk, locational marginal pricing impact and cost of congestion Risk mitigation • Cleaner energy consistently ranked by customers as preferred power supply • Sustainability is a key corporate metric • Support domestic infrastructure investment, jobs, and manufacturing supply chain Public acceptance

9. PROVEN TECHNOLOGY PLENTY OF FINANCING REALIZATION THAT CONGESTION CAN IMPOSE BIG COSTS WIDENING THE APERTURE ON TRANSMISSION PLANNING ECONOMIC COMPETITIVENESS OF LOCATION CONSTRAINED RESOURCES What’s working in favor of independent transmission FERC’S NEGOTIATED RATE STRUCTURE PUBLIC ACCEPTANCE PUBLIC ACCEPTANCE AT THE LOCAL LEVEL

10. LIMITED FEDERAL SITING LACK OF RULES AROUND NEW FORMS OF INTERCONNECTION PACE OF CHANGE ANTIQUATED STATE SITING LAWS INCUMBENTS SANDBOX INTEGRATION CONCERNS BY UTILITIES What’s challenging for independent transmission

11. Clean Line Energy www. cleanlineenergy.com