1. Mark Faulkenberry Webinar for … Colorado Geo Energy & Heat Pump Association February19, 2013

4. Blue Canyon74.3 MW Buffalo Bear18.9 MW Red Hills123 MW Rocky Ridge150 MW (Commercially available Jun 2012) Total366 MW Once Rocky Ridge is operational approximately 17% of WFEC annual energy production will come from wind!

5. CASPER Cross Air State Pollution Rule 30 M project on CC NG units EPA Regulation  Regional Greenhouse Gas Initiative  Clean Air transport Rule  Hazardous Air Pollutant  Coal Combustion Residual (Coal ash)  Clean Water Act

6. 30 MW in Reduced Capacity 30,000 kW @ $1850/kW = $55,000,000 Principal only … No carbon costs considered … Sacrifice energy sales for capacity reduction …

7. You can lead a horse to water … But you can’t make him drink!

8. Big difference between SEER & EER

9. Listening to consumers …  Cost  Urgency Issues  Education Change “stereo-typical” GS home

10. 1 kWh of energy from the grid Plus: 3-5 kWh of energy from the earth Yields: 4-6 kWh of energy for the building Another form of utility “plant” for delivering Renewable Energy to the load

11.  Co-op partners to become a premiere “Thermal Energy Services Provider”  Co-op installs, owns, and maintains loop for fixed monthly service fee added to electric bill  Co-op contracts with 3 rd party for construction and maintenance of the loop  Co-op provides low interest financing for equipment, installation, & basic energy efficiency improvements (insulation & seal) Note: the financing will be limited to positive cash flow applications and only offered through pre-approved installers.

12. Customer HVAC Contractor Loop Contractor Electric Cooperative New Role for Electric Cooperative

13. Cost for System 3 Ton System 200ft/ton + 100 ft. = 700 ft. 700 ft. x $7/ft. = $4900 4 Ton System 200ft/ton + 150 ft. = 950 ft. 950 ft. x $7/ft. = $6650 Using RUS Financing 3 Ton $18-$25/month Tariff Rate 4 Ton $25-$28/month

14. System Cost 3 Ton (Less Loop) $10,000 Less WFEC Rebate $ 1,200 Total Loan $ 8,800 Less 30% Fed Credit $ 2,640 Net Balance $ 5,800 Note: Additional 30% State Tax Credit in NM Amortized Cost $8,800 @ 3% (10 years) $84.97/month

15. Projected Annual Savings $3,830/yr. Using Geo Design Software Less Annual TSC Costs $ 300/yr. $25/mo. x 12 months Less Facilities Payments $1,019/yr. $84.97/mo. x 12 months Cash Flow Positive $2,511/yr. Sample used: 2400 sq. ft. (15 yr. old) – STD EFF 10 SEER

16. Projected Annual Savings $1,959/yr. Using Geo Design Software Less Annual TSC Costs $ 300/yr. $25/mo. x 12 months Less Facilities Payments $1,019/yr. $84.97/mo. x 12 months Cash Flow Positive $640/yr. Sample used: 2400 sq. ft. (15 yr. old) – STD EFF 10 SEER

18.  Caddo Electric Cooperative First out of the gate … Huge Success New Construction & Retrofits  Roosevelt EC - 1st to offer services in NM  Kiamichi seeking Board Approval in Feb  Seven (7) other co-ops planning to present to their Boards by mid year.  Numerous others awaiting the results of Geo Validation Project

19. Research to validate the 0.65 kW/ton Largest “Testimonial” advertising campaign in our cooperatives history Imagine...  25 retrofit installations (Volunteers)  Spreading across two states  All sub-metered to acquire actual before and after demand reduction  All coordinated to flip the week of July 29

20. Estimated Project Cost $315,000 The Players  WFEC and our co-op family  Cooperative Research Network (CRN)  Verbal commitments for financial support from ClimateMaster & Bosch … Water Furnace considering …  Looking for other financial support

21.  Found a “Strategic Partner” with extensive experience with GSP installations.  Participating cooperatives will work with said entity through their “Key Accounts” programs and targeted consumer groups  Third party will engineer, bid out installations, and oversee the entire project thus assuring quality installation. Dairy Pilot in New Mexico

22. Must match replacement time frame Each “pre-approved” dealer must submit a plan for dealing with urgency issues - Summer- Portable Cooling Tower - Winter -Utilize backup heat strip and offer a $50 credit for the month utilized Equipment inventory has to be addressed

23.  Internal – Family Buy-in Shared Vision … leading the way Custom Business Plans  GSHP Manufactures & Dealers Unbiased … We want competition Determining who wants to play …  External – General Public No brainer when the system goes out Fall of 2012 effort … “Go Go Geo Challenge”

25. Title Sponsor Touchstone Energy Cooperatives of OK Co-Sponsors 1. ClimateMaster 2. Bosch – (Florida Heat Pump) 3. Water Furnace Other Industry “Beneficiaries”

26. The goal is to challenge high school juniors and seniors to use their creativity in the production of a 1-3 minute video which delivers our message. How Geo Works – Overview of incentives currently available Savings Benefits – Renewable –– Environmental benefits Then by using their social media network … deliver our message to all of their friends and family as they go online and view/vote for their favorite videos

27.  Co-op & GSP dealers promote ….within their “Service Territory” (No cost to the co-op or dealer other than sweat equity)  Entire program is managed online (website) - intro video - rules & entry process - message to be delivered - general research information on GSHP  Students submit videos online  Videos previewed before posted  All videos posted at the same time for voting

29. REGIONAL COMPETITIONSTATE COMPETITION  Five (5) Regional competitions winner from each advancing to state finals  Top Five (5) vote getters are judged  Winner Scholarships 1 st Place - $3000 2 nd Place - $2000 3 rd Place - $1000  1st place winners school awarded $2500  Finalist videos posted for finals online voting  State Finalists come to OKC for interviews  Judges interview finalists and score the group  Winner Scholarships 1 st Place - $7000 2 nd Place - $3500 3 rd Place - $2000  1st place winner school awarded $2500

30. Michael Ming Oklahoma Secretary of Energy Betty Thompson Miss Oklahoma Stephen McKeever Oklahoma Secretary of Science & Technology

31. Online voting 25 points (Ranges from 25-10) Message delivery35 points (5 pts per message) Creativity- Wow25 points Technical Merit10 points Videography 5 points Total100 points Finals criteria will be modified to include interview scores