Current Trends in Renewable Energy: IPED COAL POWER CONFERENCE Current Trends in Renewable Energy: Tangible and Intangible Benefits January 18-19, 2007 St. Petersburg, FL presented by David L. Patton, P.E. R. W. Beck, Inc.

Which Renewable Candidates are Realistic Now? Wind Biomass Fuel Cells Geothermal Hydro Ocean (Tidal, OTEC) Solar (PV, Thermal)

Renewable Energy Capacity Trend, 1999 - 2006 Geothermal Solar Wind Biomass (Total) Wood/Wood Waste MSW/Landfill Gas Other Biomass 14,000 12,000 10,000 8000 Installed Capacity, MW 6000 4000 2000 2000 2001 2002 2003 2004 2005 2006 Year Source: U.S. DOE EIA, August 2005

U.S. Renewable Electric Generating Capacity 2005 Coal 23% Nuclear Biomass 8% 46% Natural Gas 23% Renewables 6% Conventional Hydroelectric 46% Geothermal 5% Wind 2% Petroleum Fuels Solar 40% 1% Source: U.S. DOE EIA, January 2007

Wind Energy – Tangible Benefits No Fuel Price Uncertainty No Fuel Cost Low Operating Cost Relatively Less Complex Mature Wind Turbine Technologies Addresses Environmental Issues Lease Payments Support Family Farms Government Financial Incentives & Grants

U.S. Annual Average Wind Resources Map Source: NREL

U.S. Annual Wind Generating Capacity: Installed and Projected 3500 3250 3000 2750 2500 2250 2000 1750 MW Installed During Year 1500 1250 1000 750 500 250 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 (projected) Source: U.S. DOE Wind Energy Program and AWEA

Biomass Energy – Tangible Benefits Lower Fuel Costs Addresses Environmental Issues Domestic Sources Local Economic Benefits Mature Biomass/Biogas Process Technologies Government Financial Incentives & Grants

Biomass Resource Availability Biomass Fuel for Generation is Widespread Within Most States MA, CT, RI, NJ, DE, MD, DC States with Renewable Portfolio Standards (RPS) / Goals Source: NREL and PEW Center, Global Climate Change

States with Renewable Portfolio Standards (RPS) / Goals Source: NREL and PEW Center, Global Climate Change

Intangible Benefits – All Renewables Positive Public Image Desire for Diversified Portfolio Public Support/Perception Political Support Greenhouse Gas Drivers Energy Independence / Security Offset Emissions from “Dirtier” Energy Sources

RPS Goals vs. Renewable Status RPS Year RPS / Goal* Arizona 2025 15% California 2010 20% Colorado 2015 10% Connecticut Delaware 2019 District of Columbia 2022 11% Hawaii 2020 Illinois* 2013 8% Iowa 2007 105 MW Maine 2000 30% Maryland 7.5% Massachusetts 2009 4.0% RPS Year RPS / Goal* Minnesota 2015 10% Montana 15% Nevada 20% New Jersey 2021 22.5% New Mexico 2011 New York 2013 24% Pennsylvania 2020 18% Rhode Island Texas 5,880 MW Vermont 2012 Washington Wisconsin * As a percent of state generation or actual generation / use. Source: U.S. DOE EIA & PEW Central Global Climate Change, December 2006

Summary Realistic Renewable Candidates Renewable Energy Capacity Trends Recent Renewable Capacity Wind Energy – Tangible Benefits Biomass Energy – Tangible Benefits Intangible Benefits – All Renewables RPS Goals

Electricity Generation by Fuel, 1980-2030 (billion kilowatt hours) 4000 History Projections Coal 3000 2000 Natural Gas 1000 Nuclear Renewables Petroleum 1980 1990 2005 2020 2030 Source: U.S. DOE EIA

Conclusions Biomass and Wind are Currently the Most Commercially Realistic Renewables 25,000 to 50,000 Megawatts New Renewable Energy Capacity Nationwide in Next Decade Policy Consistency and Continuity

Questions David L. Patton, P.E. IPED COAL POWER CONFERENCE R. W. Beck, Inc. dpatton@rwbeck.com (508) 935-1811