Beth Soholt Director Wisconsin Public Utility Institute Wind Energy – Prospects for Growth in Wisconsin Madison, WI February 27, 2008 Wind Power Expansion: You Can’t Be Pro-Wind and Anti-Transmission

Background on Wind on the Wires Organized in 2001 to overcome the barriers to bringing wind power to market in the Midwest. Members include wind developers, turbine manufacturers, American Wind Energy Association (wind industry trade association), non-profit advocacy organizations, businesses that provide goods and services to the wind industry. Work in 3 areas: technical, regulatory, education/outreach Technical – work with electric utilities and Midwest Independent System Operator (MISO – regional “grid” operator) on transmission planning for wind Regulatory – involved in cases where states are approving new transmission lines that will advance wind power Education/outreach – speak to many people and groups about our work and issues Support – Foundations and membership dues.

Wind on the Wires Members green – non-profit Wind on the Wires Members green – non-profit blue – developers pink – goods/services providers American Wind Energy Association BP Alternative Energy Clipper Windpower D.H. Blattner & Sons Environmental Law & Policy Center enXco FPL Energy Fredrikson & Byron Fresh Energy GE Energy Horizon Wind Energy Intertribal Council on Utility Policy Izaak Walton League of America John Deere M.A. Mortenson National Wind Navitas/Gamesa Energy PPM Energy/Iberdrola Rahn Group RENEW Wisconsin RES-Americas, Inc. Stoel Rives Suzlon Wind Energy Vestas Windlogics Windustry

Western Resource Advocates West Wind Wires MISO Renewable NW Project Renewable NW Project Wind on the Wires Wind on the Wires Wind Power NY MISO Interwest Energy Alliance CEERT CEERT Western Resource Advocates The Wind Coalition Renewable Northwest Project (WA, OR, ID, MT) Interwest Energy Alliance (AZ, CO, NV, NM, UT, WY) The Wind Coalition (NM, TX, OK, AR, LA, MS, KS, MO) Center for Energy Efficiency & Renewable Technologies (CA) Wind on the Wires (ND, SD, NE, MI, MN, IA, IN, WI, IL) Wind Power New York (NY) Western Resource Advocates West Wind Wires (CA, OR, WA, MT, ID, AZ, NM, CO, UT, NV, WY) Midwest Indep. Trans. Sys. Operators (MISO) (ND, SD, NE, MN, IA, MO, WI, IL, MI, IN, OH, KY, Manitoba)

What’s driving the renewables/transmission case in the Midwest? Climate change – public policy State RPS/promise of federal RPS? Need for new infrastructure for load growth, renewables, to reduce congestion Midwest Governors Association (MGA) Energy Security and Climate Stewardship Platform for the Midwest 2007

MGA Platform 12 MGA states - IL, IN, IA, KS, MI, MN, MO, NE, ND, OH, SD, WI Milestones* % electric energy consumed % electric capacity 10% by 2015 32,000 MW 20,000 MW 20% by 2020 70,000 MW 45,000 MW 25% by 2025 95,000 MW 60,000 MW 30% by 2030 125,000 MW 80,000 MW * The milestones were calculated from the electric energy consumed by state (base and growth rates projected from EIA data), applying the milestone percentage, and then calculating a required wind installed capacity (rated nameplate) by applying an approximate net annual wind capacity factor for each state.

Challenges to Achieving Wind Vision in the Midwest Shared regional vision on wind build out Large amount of transmission needed Potential operating impacts – studies underway MAPP/MISO seam between Dakotas and MISO Cost allocation for new transmission Identify entities to build transmission Utilities, ITC’s, wind developers Cooperation and planning between states to implement transmission plans MISO unlike ERCOT and CAISO where ISO borders same as state borders Bottom line: Need the political will and nuts & bolts implementation of wind vision components

Challenges for Wisconsin to Achieve Wind Vision Transmission Siting/permitting Transporting wind turbines Moderate wind speed

Transmission Work Underway in the Midwest to Achieve the Wind Vision MISO Generator Interconnection Queue reform (helpful near-term) Transmission planning and build out CapX 2020 Initiative 16,000 MW of wind in MISO Transmission Expansion Plan (MTEP) 40,000 MW of wind in MTEP ’07 (renewables case) Joint Coordinated System Plan – transmission needed for 20% wind in MISO/SPP/TVA/PJM

Visit: www.windonthewires.org Contact Information Visit: www.windonthewires.org Email: bsoholt@windonthewires.org Phone: Beth Soholt (651) 644-3400 Wind on the Wires 1619 Dayton Avenue, Suite 203 Saint Paul, Minnesota 55104