Presented to Mid-America Chamber Executives Regional Policy Conference November 2015 Presented by Doug Fredrickson, Vice President Blattner Energy, Inc. “ALL OF THE ABOVE” STRATEGY

© Blattner Energy, Inc. THE BLATTNER FAMILY OF COMPANIES The Blattner Family of Companies leverages more than a century of experience building large-scale projects North America. –Blattner Energy, Inc. –D.H. Blattner & Sons, Inc. –Borea Construction, ULC. –Blattner Energy Puerto Rico, LLC.

A BETTER CONSTRUCTION EXPERIENCE

© Blattner Energy, Inc. CURRENT & COMPLETED ENERGY PROJECTS = Current Wind = Completed Wind = Current Solar = Completed Solar

© Blattner Energy, Inc. PRESENTATION FOR RENEWABLES Old presentation for renewables: “Global Warming is coming and don’t ask about cost.” –Industry pitch… “Majority of the public say they want it…” –Utilities said it was too expensive and warned that only a token amount of MWs could be tolerated on the grid without catastrophe. –Supporters saying you shouldn’t be concerned about price… turned off about half the electorate. New presentation for renewables: “It’s still clean…Please let me tell you about price.” Renewable Energy has changed a lot in the past 18 years, but the public dialog hasn’t changed that much.

© Blattner Energy, Inc. “ALL OF THE ABOVE” STRATEGY Coal, nuclear, gas & renewables Similar strategy of the Coalition for a Secure Energy Future The renewable industry supports this strategy Every state has a different percentage of these four sources Minnesota’s Current Energy Mix Sources include: Coal (37%) Gas (8%) Nuclear (30%) Wind (15%) Hydro (6%) Biomass (4%) Source: Upper Midwest Resource Plan Reply Comments 10/2/15

© Blattner Energy, Inc. COST OF RENEWABLE TREND LINES ARE FORMING Wind power is: –A low-cost solution for new electricity generation in America –The least-cost renewable source of NEW electricity

© Blattner Energy, Inc. ENERGY COST TREND LINES ARE FORMING Costs for Wind & Solar have dropped by over 50% The trend is not over Wind power is the most competitive (LCOE) At today’s gas price this chart would show gas being low Wind and Solar price $MWh is generally fixed up to 25 years Xcel Energy has been: – “…Able to deliver renewable energy at a price our customers can afford. In 2013, we announced the addition of 1,900 megawatts of wind energy across our service territory and 170 megawatts of solar energy, all at prices below fossil alternatives.” Source: Message from CEOSource: Message from CEO Xcel’s current Integrated Resource Plan (IRP) calls for 35% Renewables by 2030, including an additional 1,800 MW of Wind Energy.

© Blattner Energy, Inc. XCEL RESOURCE PLAN: Highlights: Retire Sherco Coal Units 1&2 New Natural Gas 1700 MW of Solar 1800 MW of Wind 1200 MW of new renewables

© Blattner Energy, Inc. CONTRIBUTORS TO CONFLICTING PERSPECTIVE Power costs increasing across the US; even in States with no renewables. Why? Comparing new renewable generation with old coal and nuclear Aging Fleet contributes to the dilemma of choice for Utilities –Nuclear are operating on 2nd or 3rd license life –Coal – 40, 50, 60+, year old facilities Politics around regulation authority (Who & How) Climate change, health impacts Job losses in coal – verses - Job gains in renewables Ratepayer Impacts from renewable

© Blattner Energy, Inc. CLOSING THOUGHTS This isn’t about picking winners and losers. It’s about balance in an “all of the above” strategy Separate the issues and clarify your position around each –Is it the politics of how the change is occurring? –Is it the cost effects on future electric rates? –Is it the loss of jobs for coal miners? –Is it about economics for your State or the Midwest? Renewables save ratepayers money today and in the future; not increase it. (You can then take Climate Change risk and Health Care savings as a free bonus.)

Presented to Mid-America Chamber Executives Regional Policy Conference November 2015 Presented by Doug Fredrickson, Vice President Blattner Energy, Inc. “ALL OF THE ABOVE” STRATEGY

Over $100 Billion in Project Investment since 2008.

WIND BENEFITS EVERY STATE: There are utility-scale wind projects or active wind-related manufacturing facilities in all 50 states. In fact, over 70 percent of U.S. Congressional districts have operational wind energy projects or active wind-related manufacturing facilities. In 2014, a total of 73,000 jobs in wind were spread across all 50 states.

CORPORATIONS WANT WIND: Over 23% of the MW contracted through 2014 power purchase agreements were with non-utility off-takers including Amazon, Microsoft, the General Services Administration (GSA), Walmart and Yahoo! Many of these companies and organizations explained that they were attracted by wind energy’s unique ability to offer stably-priced energy, given its lack of fuel cost uncertainty.