SPP Wind Integration Holly Starling Project Manager July 3, 2008

2 FPL Energy Gray County Wind Energy Center Definitions Wind Integration Keys Current SPP Market SPP Market Recommendations Agenda

3 Leading clean energy provider in 25 states –More than 90% of energy portfolio from clean fuels Nation's leader in wind energy generation –Over 6,000MW of installed wind energy capacity by year end 2008 –56 operating wind facilities in 16 states World’s No. 1 producer of solar energy FPL Energy is the nation’s No. 1 producer of wind power FPL Energy FPL Energy has a record of clean energy leadership

4 FPL Energy’s US leading wind power portfolio includes 56 wind facilities in operation in 16 states FPL Energy’s Wind Portfolio Stateline Vansycle Diablo Wind Diablo Wind WPP90 WPP90 WPP91 WPP91 WPP91-92 WPP91-92 WPP92 WPP92 Green Ridge Green Ridge Mojave 3 & 5 Mojave 3 & 5 Mojave 16/17/18 Mojave 16/17/18 Sky River Sky River TPC TPC Victory Garden Victory Garden Gray County Southwest Mesa Woodward Mt. Indian Mesa King Mt. Lake Benton II SomersetOperating Under construction (as of 4/30/08) Montfort Mountaineer North Dakota South Dakota CerroGordo Hancock New Mexico High Winds Delaware Mt. Mill Run Green Mountain Waymart Oklahoma Wyoming Meyersdale Cabazon Green Power WPP93 WPP93 WPP94 Weatherford Horse Hollow I, II & III Wilton Red Canyon Mower Peetz Table Endeavor Capricorn Ridge and Expansion Callahan Divide Oliver I & II Langdon Logan Wolf Ridge Story County Crystal Lake

MW nameplate capacity 170 turbines, 660 kW per unit Operating since November 2001 FPL Energy’s Gray County Wind Energy Center was the 1 st utility-scale wind facility in Kansas Gray County Wind Energy Center

6 Leverage corporate-wide knowledge base –Efficiencies –Cost reduction Monitor critical parameters in real-time Uses advanced technology to detect and prevent failure Interface with system operators FPL Energy uses a state-of-the-art central monitoring center to ensure reliable wind facility operations Operational Excellence Fleet Performance Diagnostics Center

7 Nameplate capacity (MW): full power output Net capacity factor (NCF): ratio of electric energy generated in a given period to the maximum possible –Wind resource is the key component –Kansas has excellent wind resource –Current turbine technology produces 35-45% NCF in Kansas Net capacity factor is an indicator of wind resource Kansas has excellent wind resource Definitions *Source:

8 Market structure Transmission system capability Ancillary services and cost allocation Wind forecasting System balancing authorities are able to integrate wind, accommodate its variable nature and reduce costs Average wind integration costs are below $10/MWh Wind Integration Key Components *Source: DOE Annual Report on U.S. Wind Power Installation, Cost, and Performance Trends: 2007

9 Current SPP Market SPP expects to transition to a nodal market by 2012 To grow wind investment in Kansas, SPP market rule reform is needed *Source: SPP Strategic Plan; Oct 24, 2006 Bilateral SPP ancillary service market needs reform to be wind- friendly Transmission infrastructure necessary

10 Implement nodal market structure Ensure wind facilities can interconnect to system Provide transmission capability to transfer wind power from best wind resource areas to load Enable wind power grid integration through ancillary service reform Encourage SPP best practices wind forecasting capability Substational new wind development in SPP requires market changes New wind development is heavily dependent on the evolution of the SPP market and transmission system expansion Market Recommendations *Source: SPP State of the Market Report, Apr 24, 2008

11 Holly Starling FPL Energy Questions?