1. Michigan Public Power Agency Wind Energy Supply Agreement www.mpower.org

2. Why Wind Energy Supply? www.mpower.org © Michigan Public Power Agency 2 Wind Energy is the only large scale power supply resource remaining that protects our power portfolio against rising natural gas prices (coal & nuclear phased out) Federal Legislation passed in late 2015 phases out Renewable Energy production tax incentives over next 5 years (incentives translate into lower pricing for buyers) Federal Clean Power Plan and other Michigan & Federal legislation decarbonizing the power business make wind energy more valuable in the future Premier geographic locations for wind in the State of Michigan are limited Retail customers of our member systems want more renewable (large and growing portion of Fortune 500 Corporations have 100% renewable energy goal) Pricing is competitive (60% + decline in pricing in last decade for wind)

3. Wind Supply Assessment Process www.mpower.org © Michigan Public Power Agency 3 Experienced the benefits of joint action and economies of scale through execution of a Wind Energy Supply agreement in Gratiot County in 2013 Performed member by member energy supply portfolio risk assessment in 2014 (meeting State Mandate RPS & forward fuel price risk sensitivities) Organized individual and aggregate member targets and began evaluating project opportunities in early 2015 Evaluated & ranked resources on (a.) Project Quality Characteristics, (b.) Contract terms & conditions, (c.) Financial Requirements, (d.) Pricing and (e.) Experience of Developer Considered out of State Resources but financial settlement differences, delivery costs and regulatory & legislative compliance misalignment too big a risk (in State law) Over 90% of Agency membership participating (remaining 10% large % of renewable)

4. Why Huron Wind Project? www.mpower.org © Michigan Public Power Agency 4 Project developed by the largest wind power developer in the United States Interconnected to the most robust delivery system in Michigan – 345 kV Thumb Loop One of the best wind resource locations in all of Michigan (high annual efficiency) Latest technology - Turbines (GE) Advanced quality project development with supportive land owners Customized Agreement with advantageous terms and conditions Economic competitive advantage – pricing and product delivery structure superior Credibility of operator - one of the largest power generators in North America

5. Wind Supply - Key Specifications www.mpower.org © Michigan Public Power Agency 5 Huron County, MI (thumb region) 20 Year Power Purchase Agreement Receive Energy, Capacity and Environmental Attributes Pricing – competitive w/ conventional power supply Commercial Operation expected mid 2018 Pay only for what is produced & delivered ( Operational Risk remains with operator ) Transaction volume less than 5% of each member power supply portfolio needs Huron Wind Project