Wind Energy for Local Governments Larry Flowers 24 March 2004

WPA Utility Partnerships PMA Green Tags Transmission Analysis Public Power Workshops Coop Outreach Green Pricing Support Wind Energy Finance Tool Wind-Hydro Analysis

Increased Turbine Size - R&D Advances - Manufacturing Improvements Capacity (MW) Cost of Energy (cents/kWh*) Cost of Energy and Cumulative Domestic Capacity *Year 2000 dollars Capacity & Cost Trends

1. Germany: MW 2. United States: 6374 MW 3. Spain: 5780 MW 4. Denmark: 3094 MW 5. India: 1900 MW Source: WindPower Monthly World total 2003: MW Total Installed Wind Capacity World Growth Market

Drivers for Wind Power Declining Wind Costs Fuel Price Uncertainty Federal and State Policies Economic Development Green Power Energy Security

Wind Resource Financing and Ownership Structure Taxes and Policy Incentives Plant Size Green field or site expansion Wind Economics- Determining Factors

Land Lease Payments: 2-3% of gross revenue $ /MW/year Local property tax revenue: 100 MW brings in on the order of $500K-$1 million/yr 1-2 jobs/MW during construction 2-5 permanent O&M jobs per MW, Local construction and service industry: concrete, towers usually done locally Investment as Equity Owners: production tax credit, accelerated depreciation Manufacturing and Assembly plants expanding in U.S. (Micon in IL, LM Glasfiber in ND) Economic Development Opportunities

Wind Powered Municipal Utilities American Municipal Power-Ohio* Austin Energy, TX Cedar Falls Utilities, IA City of Bowling Green, OH City of Howard, SD City of Palo Alto, CA City Public Service of San Antonio, TX City of St. Charles, IL City Utilities of Springfield, MO Clark Public Utilities, WA Colorado Springs Utilities, CO Energy Northwest, OR/WA* Eugene Water & Electric Board, OR Hull Municipal Light Plant, MA Lamar Light and Power, CO Lenox Municipal Utilities, IA Lincoln Electric System, NE Los Angeles Dept. of Water & Power, CA Missouri River Energy Services, SD* Moorhead Public Service, MN Municipal Energy Agency of Nebraska, NE* Oklahoma Municipal Power Authority, OK* Omaha Public Power District, NE* Pasadena Water & Power, CA Platte River Power Authority, CO* Princeton Municipal Light Department, MA Sacramento Municipal Utility District, CA Seattle City Light, WA Southern Minnesota Municipal Power Agency, MN* Tacoma Power, WA Traverse City Light & Power, MI Wall Lake Municipal Utilities, IA Waverly Light and Power, IA Wisconsin Public Power Inc., WI* * Supplies wind power to a number of municipal utilities

Municipal utility serving 4,300 First public power system in Midwest to own and operate wind generation. Owns 2, 750-kW turbines and 1, 80- kW turbine Wind supplies 15% of its residential electricity needs Selling green tags to support new wind development (Iowa Energy Tags) Planning 1.8 MW new wind Skeets 4 -- NEG MICON Waverly, Iowa Waverly Light and Power

Launched green pricing program in 1998 Installed 2, 750-kW wind turbines Tremendous response from community Sold out capacity of 2 nd turbine in a few months 7% of its customers participate in Capture the Wind (highest in U.S.) Moorhead Public Service

1999 Austin City Council resolution called for 5% renewables by launched green pricing program Installed 77 MW of wind in 2001 for green power customers Plans another 25 MW wind Fixed price for green power, exempts customers from fuel cost increases Green power was cheaper than conventional power for some time Austin Energy

Oregon’s largest public utility Partnered with Pacificorp to develop 41 MW wind in WY –Able to spread risk by partnering –Larger project more cost-effective 6.5 MW wind green priced by EWEB Exempts customers from price increases –Green premium dropped by nearly 60% Purchasing 25 MW wind from Stateline Purchasing 7 MW wind from BPA Foote Creek Rim, Wyoming Eugene Water & Electric Board

2000 City Council resolutions to meet all future electricity needs with no net greenhouse gas emissions 2001 more stringent resolutions adopted 2001 City Council approved plan to have 5% of utility supply come from wind Seattle City Light is to purchase 100 MW from Stateline Project starting 8/02 Wind purchase increasing to as much as 175 MW by 2004 Seattle City Light also has voluntary green pricing program Pacificorp 263-MW Stateline Wind Project Along the Washington-Oregon Border Seattle City Light

Wind for Schools Location: Spirit Lake, Iowa Turbine Manufacturer: NEG Micon Turbine Size: 750 KW Spirit Lake Community School Photo courtesy of Spirit Lake Community Schools

“In my 44 years in the municipal utility business, no utility project has ever generated more customer support and interest than our wind turbine project.” Nick Scholer, former manager of Algona Municipal Utilities, Algona, Iowa

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