CIPCO Central Iowa Power Cooperative Iowa Industrial Energy Group April 9, 2013

CIPCO At A Glance Founded: 1946 Locations: Cedar Rapids, Creston, Des Moines, Montpelier and Wilton Employees: 129 Members: 13 rural electric cooperatives and associations Territory: Stretches 300 miles diagonally across Iowa serving 58 of Iowa's 99 counties

CIPCO At A Glance Energy Sales: 2.8 million MWh Operating Revenue:$187 million Net Margin: $23.9 million Total Assets: $659 million Peak Demand: 610 MW (2012) Transmission Lines: 1,869 miles

How Iowa Utilities Differ Investor-Owned Utility (IOU) Electric Cooperative (REC) Municipal Utility (Muni) Number of Electric Utilities in Iowa OwnershipPublic CorporationMembershipLocal Government Tax StatusFor-profitNot-for-profit Governed ByBoard of DirectorsLocal Board of Directors City Council or Board Percent of Customers Served in Iowa72%14% Average Number of Customers per Mile of Line Percent of Residential Customers85%88%83% Percent of Commercial & Industrial Customers 15%12%17% IUB Regulatory AuthorityRates, Service Service, Rates (optional) Service

CIPCO Member Systems Member-owned, not-for-profit governed by board of directors 13 rural electric cooperatives and associations Serve 320,000 residents and 12,000 commercial/industrial accounts Service territory adjoins 12 of Iowa’s 17 largest cities 449 distribution employees Smallest member = 2,832 consumers – Largest member = 25,606 Density: 2.3 members per mile line – 11.7 members per mile line

CIPCO Member Systems Service Areas

Wholesale Power Supply (2013 Annual Estimate) Owned & Co-owned Power Plants DAECNuclear Walter Scott #3Coal Walter Scott #4Coal LouisaCoal Fair StationCoal Summit Lake/PeakingGas/Diesel Contract Purchases WAPA Hydroelectric (13 MW) Hancock County Wind Farm (2 MW) Story County Wind Farm (42 MW) Elk Wind Farm (41 MW) Hawkeye Wind Farm (36 MW) Rippey Wind Farm (50 MW) Pioneer Grove Wind Farm (6 MW)

Transmission System Miles of Transmission Line = 1,869 Transmission Substations = 29 8

Transmission Technology

Balanced & Diverse Portfolio More than 95% generated in Iowa Over 50% carbon-free and emissions-free Limited market exposure with over 95% from owned units and long-term contracts Growth in energy efficiency and renewable resources Ownership and resource diversity lead to price stability

Power Supply Fuel Mix Wind, Etc. Hydro Nuclear N-Gas Coal 1% 48% 26% 4% 70% CIPCO Commitments 7-State Region 51% Emissions- & Carbon-Free Years

Business Partnerships CIPCO Subsidiaries: Iowa Area Development Group Capital Management Associates (CMA) CMA Ventures Myriad Developers

Business Partnerships CIPCO Business Partners Electric utility industry Iowa Association of Business & Industry Coalition of Comm. Bankers & Comm. Colleges Active in communities we serve

Major Industry Challenges Aging Infrastructure: Generation assets Transmission grid Workforce challenges – Shortage – Skills gap

Major Industry Challenges Changing regulatory climate: Short-term cycles vs. long-term business model Planning vs. reacting Regulatory progression – Environmental – Financial – Health care

Major Industry Challenges Evolving energy markets: Transition to market models vs. monopoly FERC, MISO, NERC oversight Absence of national energy policy

CIPCO’s Strategic Goals Asset ownership Diversity of generation resources Stewardship of our system Financial strength and flexibility Facilitate a platform of growth Leverage with our business partners

Thank you!