1. Desert Sky Wind Farm January 2004 Welcome Desert Sky Wind Farm Pecos County, Texas

2. Desert Sky Wind Farm January 2004 Wind Power’s Place  Important part of mix  Free fuel  No emissions management  Maturing technology  Cost competitive  Predictable at proven sites  Low risk at proven sites  Fastest growing source  Future looks bright

3. Desert Sky Wind Farm January 2004 Wind Growth in U.S., Texas  1,687 Megawatts (MW) added in 2003  204 MW in Texas  410 MW added in 2002  1,696 MW added in 2001  915 MW in Texas  28% average annual expansion in U.S. capacity over the last five years  Total installed capacity:  U.S. - 6,374 MW in 32 states  Texas – 1,293 MW  Texas ranks 2 nd in U.S. Source: American Wind Energy Association

4. Desert Sky Wind Farm January 2004 Wind Industry Drivers  Competitive cost  Long-term price stability  Environmental attributes  Federal wind tax credit equaling 1.7 cents per KWH  Texas Senate Bill 7 (electric industry restructuring)  Rural development  Ease of permitting

5. Desert Sky Wind Farm January 2004 Senate Bill 7 Details  Senate Bill 7 (1999 electric restructuring legislation) included renewable portfolio standard (RPS)  Requires additional 2,000 megawatts (MW) of capacity in state of Texas by Jan. 1, 2009 (beyond 880 MW installed at the time)  Under SB7, cumulative installed renewable capacity in Texas must grow to:  1,280 MW (an additional 400 MW) by Jan. 1, 2003  1,730 MW (an additional 450 MW) by Jan. 1, 2005  2,280 MW (an additional 550 MW) by Jan. 1, 2007  2,880 MW (an additional 600 MW) by Jan. 1, 2009  2,880 MW equates to about 3% of TX electricity in 2009  Installed wind capacity in TX as of Jan. 1, 2004 was 1,293 MW

6. Desert Sky Wind Farm January 2004 Texas Wind Projects vs. Load Centers Dallas- Ft. Worth Austin San Antonio Houston Rio Grande Valley Corpus Christi

7. Desert Sky Wind Farm January 2004 Wind Energy Potential In Billions of KWH

8. Desert Sky Wind Farm January 2004 Declining Cost of Wind $’s Per MWH Does not include Federal wind tax credit; reduces cost 1 cent / kWh or $10 / mWh

9. Desert Sky Wind Farm January 2004 Utility Interest in Wind Energy  Rapidly declining cost  Rapidly growing industry  Adds to fuel source diversity  Environmental benefits  High levels of public support  Legislative or regulatory mandates  Abundant resources in U.S.

10. Desert Sky Wind Farm January 2004 Wind Site Considerations  Willing landowners and public  Windy site  1-5 years of data  Mesa  Few trees  Lots of land -- rural  Environmental studies  Endangered species  Avoid bird flyways  Archaeology studies  Transmission network

11. Desert Sky Wind Farm January 2004 Desert Sky Wind Farm GE Wind Energy built project; performs O&M CPS buying power AEP owns facility

12. Desert Sky Wind Farm January 2004 Desert Sky Details  160 megawatts – 107 turbines at 1.5 MW each  Located on Indian Mesa near Iraan and Bakersfield, TX  Project covers 15 sq. miles  Enron Wind (now GE Wind Energy) developed and constructed the project; now performing O&M  AEP purchased project after completion in 2001 -- $175 million investment  Power is sold to City Public Service of San Antonio under long-term power supply agreements

13. Desert Sky Wind Farm January 2004 GE Wind Energy 1.5 -- Operation GE Wind Energy 1.5 -- Operation  Operates in 8-56 MPH wind  Onboard weather station  Electronically controlled  Yaw control facing wind  Variable speed via blade pitch  Operates at 11-20 RPM  Desert Sky a 107-unit power plant (each turbine is self-contained unit)

14. Desert Sky Wind Farm January 2004 Tower and Turbine Profile  GE Wind Energy 1.5 turbines  Each rated at 1.5 megawatts (1,500 kilowatts)  328 ft. base to blade tip  Foundation 18 to 26 ft. deep  Tower in three sections  163.3 tons total

15. Desert Sky Wind Farm January 2004 Wide Sweep of Turbine Blades 231 ft. 211 ft.  Each blade 112 ft. long  231 ft. blade tip to tip  Span greater than 747 airliner

16. Desert Sky Wind Farm January 2004 Wind Turbine Units Nacelle 56 tons Tower 3 sections Blade 112’ long Workers

17. Desert Sky Wind Farm January 2004 Nacelle  Nacelle (nuh-cell) shown before assembly  Houses generator and gearbox  Resembles large travel trailer  Weighs 56 tons

18. Desert Sky Wind Farm January 2004 Inside Nacelle

19. Desert Sky Wind Farm January 2004 Desert Sky Map  Dallas, 400 Miles  San Antonio, 266 Miles  Odessa, 90 Miles  Ft. Stockton, 50 miles  McCamey, 20 Miles  Iraan, 12 Miles Desert Sky

20. Desert Sky Wind Farm January 2004 More Information  AWEA.ORG  American Wind Energy Association  AEP.COM  American Electric Power  CITYPUBLICSERVICE.COM  City Public Service, San Antonio  GEWIND.COM  GE Wind Energy  DESERTSKYWIND.COM  Desert Sky Wind Farm

21. Desert Sky Wind Farm January 2004 Thank You!