1. PSC Update: Wind Energy Issues James W. Ellars, P.E. Chief Utilities Manager, Engineering Division Public Service Commission of West Virginia

2. PURPOSE To provide an update of wind and renewable energy issues pending before the WV PSC

3. SITING AUTHORITY WV Code §24-2-1 and §24-2-11c Applies to electric generating facilities that have Exempt Wholesale Generator (EWG) status under federal law that have not received a certificate from the Commission before July 1, 2003

4. NOISE RULES FOR EWG FACILITIES (GO 255.2 and Case #06-0573-CS-GI) Order issued July 12, 2005 establishing Task Force to study noise rules Task Force held one meeting in November 2005 and issued a preliminary report

5. NOISE RULES FOR EWG FACILITIES (GO 255.2 and Case #06-0573-CS-GI) Commission dismissed the noise rules proceeding (06- 0573-CS-GI) on June 8, 2006 The Commission determined that “the current noise provisions of the Siting Rules have provided sufficient guidance to applicants and other parties, and resulted in sufficient information regarding project noise predictions to allow the Commission to become informed and make reasonable public interest analyses in siting applications” The Commission decided to continue with the current noise provisions in current and future siting applications

6. ONGOING PROCEEDINGS Beech Ridge Energy, LLC Case No. 05-1590-E-CS Evidentiary hearings held in May 2006 lasted approximately 2 weeks Currently awaiting Commission decision Major issues in case were: Viewshed Avian risk (including bats) Economic impact/benefits

7. ONGOING PROCEEDINGS Liberty Gap Wind Force, LLC Case No. 05-1740-E-CS Order issued July 24, 2006 dismissed proceeding In its Order the Commission cited filing delays and “unreasonable behavior” that the applicant effectively denied an intervener the opportunity to access the project area, and thereby eliminated the possibility of full litigation of the issues in the case Applicant filed a Petition for Reconsideration, which is currently pending with the Commission

8. ONGOING PROCEEDINGS EPAct 2005 Proceeding Case No. 06-0708-E-GI Relates to certain requirements under the Energy Policy Act of 2005 Investigates whether the Commission should adopt rules for net metering, smart metering, and interconnection of distributed generation Initial comments filed by parties, Commission Staff recommendation is due August 31, 2006

9. WIND PROJECTS DOMINANT ISSUES Avian Risk and Impact (including bats) Visual Impact (Viewshed) Noise (including low frequency) Benefits to the State

10. QUESTIONS?