National Association of State Utility Consumer Advocates A Wind Vignette November 15, 2016 Tom Darin Sr. Director of Western State Policy

First Things First: November 8, 2016 The Trump Administration and the U.S. Wind Industry – Excerpts from AWEA’s Media Release: President-elect Trump has said, ‘We can pursue all forms of energy. This includes renewable energies and the technologies of the future.’ “We are ready to work with President-elect Donald Trump  

Nov. 8, continued: 5-year Production Tax Credit and IRS Guidance Clean Power Plan Infrastructure and Transmission Outlook: our fundamentals remain strong – low-costs and reliability The continued importance of states in shaping energy policy Utilities and corporate purchasers continue clean energy investments Vast majority of Americans want more renewable energy Transmission as enabling continued economic investment Rural economic benefits

Bipartisan Support for Wind/PTC Over 70% of all Congressional districts have either a wind turbine, a wind-related manufacturing facility or both. 80% of wind capacity is located in districts held by Republicans, and 20% of wind capacity is located in districts held by Democrats.

Wind and Rural America Nationally, 99% of wind is installed in rural areas. $144 billion in capital investment – over $100 billion of that is in low-income counties. In addition, we pay $222 million in landowner lease payments every year, $156 million of that is in low-income counties. This means: construction jobs, ripple effect jobs in local communities during construction – restaurants, hotels, gas stations; permanent wind technician and facility operator jobs & County Taxes

Wind was biggest source of new U.S. electric power in 2015 U.S. wind a leader in the clean energy sector The wind industry installed 8,598 MW last year, the third-biggest year for installations ever. The first quarter of 2016 proved to be the strongest first quarter for installations since 2012, with 520 MW installed. Wind power was the No. 1 source of new electric generation capacity additions in 2015, capturing 41% of new capacity additions. Wind power led solar (28.5%) and natural gas (28.1%). Source: AWEA U.S. Wind Industry Annual Market Report Year Ending 2015

Enough U.S. wind power for 20 million homes, led by Texas Most wind power Texas (18,531 MW) Iowa (6,365 MW) California (5,662 MW) Oklahoma (5,453 MW) Illinois (3,842 MW) More than 75 gigawatts of wind power capacity in America, enough to power 20 million average American homes every year. Utility scale wind turbines are now in 40 out of 50 states plus Puerto Rico and Guam. More than 20,200 MW currently under construction or in advanced development, much of it in Texas. Texas leads the nation with more than twice the wind power installed of any other state. Texas has a strong wind resource, with supportive state policies that allowed for expanded transmission in recent years, including the CREZ transmission line. (Competitive Renewable Energy Zone) Source: AWEA U.S. Wind Industry Third Quarter 2016 Market Report

2016: Steel in the Water! Block Island Wind Farm 3.8 miles off of Rhode Island Five, 6-MW turbines OCS much for favorable for Atlantic Offshore resources Technology improving; prices dropping Offshore wind technology works, proven by an established global industry with over 12,000 MW of installed capacity. Massachusetts 2016 law – 1,600 MW within 10 years - There are 13 American offshore wind projects in various stages of development, spanning 10 states, representing almost 6,000 MW of capacity off the East, West and Great Lakes coasts. - Offshore wind can use the most powerful and efficient turbines, each generating three times as much electricity as the typical land-based turbine. - As on land offshore wind power has no fuel price risk and thus hedges against future increases in fuel prices, thus saving consumers money.

Wind capacity under construction stretches across 27 states More than 20,200 MW of wind capacity are currently under construction or in advanced development across 32 states. Source: AWEA U.S. Wind Industry Third Quarter 2016 Market Report

88,000 jobs today – growing to 360,000 in 2030 Most wind jobs Texas (24,001-25,000) Oklahoma (7,001-8,000) Iowa (6,001-7,000) Colorado (6,001-7,000) Kansas (5,001-6,000) The fastest growing job in America is the wind turbine technician, according to the Bureau of Labor Statistics. Wind supported 88,000 jobs nationally in 2015. Includes: Over 21,000 manufacturing jobs nationwide Over 24,000 jobs in Texas alone Source: AWEA U.S. Wind Industry Annual Market Report Year Ending 2015

Where the Megawatts are: Wind energy is on sale: 66% off The cost of wind energy fell by 66% in six years

Power = cube of wind speed Swept field =

Where the Megawatts are: States RPS demand for wind AWEA estimates that RPS markets will drive the development of approximately 24.2 GW of wind power capacity from 2016 through 2025. The top five states in terms of wind eligible demand through 2025 are California, New York, Ohio, Illinois, and New Jersey. These five states contain 63% of all wind eligible RPS demand. California (12,656 MW) far surpasses the rest of the RPS states, with over twice as much wind eligible demand as the second highest state, New York (5,941 MW). Source: AWEA State RPS Market Assessment 2016

Where the Megawatts are: Corporate and Industrial Purchasing We’re seeing a rapidly growing trend of major consumer brands, city governments, universities, and other institutions buying wind directly instead of going through utilities. They’re attracted by long-term contracts for fixed low prices, along with the carbon savings. In the last quarter of 2015, 75% of the megawatts (MW) contracted through power purchase agreements were through non-utility buyers. (Chart includes physical and virtual Power Purchase Agreements, offsite wind projects announced under direct ownership, and offsite wind projects announced with a long-term, REC-only contract. Does not indicated when the associated wind project is placed into operation, just its public announcement.) Source: AWEA U.S. Wind Industry Annual Market Report Year Ending 2015. MW counted as of public announcement of contract

Transmission and Consumer Benefits Access to low-cost wind Fuel price hedge Congestion spikes Major transmission investments over the last decade have made wind energy’s growth possible. Much of this investment increases access to wind resources located in low-cost areas, enabling us to bring it to cities and low-wind areas where wind energy isn’t economical. In many cases, 2 cent/kWh carbon-free energy, delivered for a cost of 2 cents/kWh leads to delivered carbon-free energy for 4 cents/kWh which is competitive in any region. There are opportunities within states and regions, as well as inter-regionally and nationally. Achieving Wind Vision goal will require 890 more miles per year in the coming decade to connect the best wind resources to load Need to remove remaining barriers of transmission and get the long-distance lines we need built to let new areas capitalize on their rich wind resources. The benefits far exceed costs. Source: AWEA 2015 Annual Report. Wind project capacity includes projects under construction.

Increasing contribution to the grid, reliably integrated Iowa now generates over 35% of its electricity produced in-state from wind 12 states produced over 10% of their in-state electricity from wind Wind provided more than 35% of Iowa’s in-state electricity generation from July 2015 – July 2016, the first state to generate more than 1/3 of its in-state electricity from wind. At times, wind has supplied more than 65% of the electricity on the main utility system in Colorado, and the main grid operator in Texas has gone above 43%. Source: AWEA U.S. Wind Industry Annual Market Report Year Ending 2015; AWEA U.S. Wind Industry Third Quarter 2016 Market Report

Conclusion: Multiple Benefits from Wind as Part of a Diverse Energy Portfolio Consumer savings including hedge against fuel-price volatility Economic Development: construction activity, manufacturing jobs and rural economic benefits Economic Diversification Improved air quality and reducing potential regulatory risk Water savings Improved reliability (no water use/drought nexus)