North Eastham Wind Feasibility Study Results

1. North Eastham Wind Feasibility Study Results Brian EastmanEastham Energy Committee Kristen BurkeMassachusetts Technology Collaborative Ric O’Connell Black & Veatch June 19, 2006

2. Energy Committee Charge, Recommendation & Request • Charge #6: Set up process to identify the best deals and reliable companies for the implementation of a wind turbine in the Town of Eastham. • Recommendation: From the Feasibility Report, we recommend Option 4: Up to four Turbines at the North Eastham Site. • Recommendation: Issue a Request for Proposals from private entities interested in developing and owning a project constituting up to four turbines in North Eastham • Request: • Authorization to proceed in issuing an RFP with necessary local officials and departments • Authorization to explore and obtain necessary local and state permits

3. Topics • Background and context • North Eastham feasibility study results • Project ownership and finance considerations • Next steps

4. Massachusetts Technology Collaborative Renewable Energy Trust • Created in 1998 as part of utility deregulation • Funded by public benefits charge paid by investor-owned utility customers • Massachusetts Technology Collaborative is manager, as part of “innovation economy” • The Trust’s mission: • Increase the supply of and demand for energy from clean sources • Promote the development of a vibrant Massachusetts renewable energy industry

5. MTC Community Wind Collaborative • Premise • Local project sponsorship creates a sense of ownership • We can increase comfort levels by beginning with small projects (i.e. few turbines) • Early projects will build public support for renewable energy • MTC Role: provide technical, analytical and financial support to communities

6. Community Sponsor a project on public land and build local support Manage local decision process Support project permitting and approvals process Private Sector Turbine supply & installation Finance, own, and manage the project Asset management services Operation and maintenance services Roles

7. Community Wind Process • Project Conception / Identify Potential Sites • Wind Resource Monitoring & Analysis • Feasibility Analysis • Public Outreach, Education & Municipal decision __________________________________________________ • Business Planning • Construction and Interconnection • Operation and Maintenance MTC incurs cost for phases 1-4 for communities who qualify in an effort to support the decision making process. MTC is committed to helping support FEASIBLE projects through the later stages

8. Eastham Process Summary • Wind Measurement Spring 2003-2004 • Initiate CWC process with MTC Spring 2004 • Black and Veatch assigned site screening analysis Summer 2005 • Site Screening Analysis Fall 2005 • 3 locations (municipal complex, DPW, North Eastham) • Energy Committee requested North Eastham for Feasibility Analysis. Completed March 2006

9. Feasibility Study Results North Eastham location • Adjacent to the Cape Cod Rail Trail • Two municipal parcels with a gravel pit in between just West of Cape Cod National Seashore • Can accommodate up to 4 turbines (2 on each parcel) • Environmental studies necessary • Early Interconnection study necessary • Verification of wind data is suggested

10. North Eastham Location

11. Photo Simulation:

12. Opportunity for financial benefit: The final economic value of any project to the Town is subject to negotiation with the project’s developer/owner and is influenced by: • Wind resource • Total # of turbines installed • Total installed cost • Power and REC selling price

13. Revenue Options • Lease + Taxes + Revenue Sharing +Lease for 20 Years: Flat rate +Taxes decline over time: Variable +Revenue Sharing: Variable • PILOT + Revenue Sharing +Payment in Lieu of Taxes: Flat Rate +Revenue Sharing: Variable

14. Project Uncertainty; all impact financials • Turbine price & availability • Future price of energy; Power Purchase Agreement • REC price risk (MTC mitigates to some degree) • Wind resource • Permitting risk

15. Bottom Line • Increasing Electric Energy Costs • Potential Revenue source • Ability to offset much of Eastham’s Electric Energy Costs • Positive Environmental Benefits

16. Key components to explore • Interconnection • LV Distribution or HV Transmission • Interconnection study is necessary earlier • Land Use Regulations • Water Resources Protection District • National Seashore Restrictions • Wind Analysis • SODAR can verify shear but needs to be placed far from homes. • Would require clearing • New Meteorological tower could be installed • Environmental Assessments • National Seashore • Mass Audubon • Eastham Conservation Foundation • Education • Bikeways Committee • Citizens

17. Next Steps • Town indicates probable project • Recommendation from the Board of Selectmen • Authorization for Energy Committee to proceed in issuing an RFP with necessary local officials and departments • Authorization for Energy Committee to explore and obtain necessary local and state permits • Additional MTC services to support process • Additional Meteorological Tower • Utility Interconnect Discussions • Phase 1 Avian Risk Assessment • Participate in joint CCCC and CCNS discussions • Provide assistance in further permitting discussions/mapping

18. Additional Information . . . Kristen Burke, Wind Siting and Community Planning Manager Massachusetts Technology Collaborative Renewable Energy Trust 75 North Drive Westborough, MA 01581 508-870-0312 x1480 burke@masstech.org