1. A Case Study in Community Wind New Ulm Public Utilities Commission - Success with Due Diligence Welcome

2. Introduction Advanced wind resource assessment brings success to community wind developments

3. Defining Community Wind What is community wind? Is it…  Size?  Location?  Economics? Community-based wind energy development is partially owned by local land owners or local stake holders

4. Who is New Ulm Public Utilities Commission? New Ulm Public Utilities Commission (NUPUC) is a municipal utility serving ~6,000 consumers Goal to identify an economically viable and long-term new electrical generation resource NUPUC analyzed ~10 options for existing and new generation  NUPUC ascertained that wind was the most competitive long-term Called for RFP’s form third party power producers  This was unsuccessful because third party vendors were too costly

5. NUPUC and Wind Energy Advanced methodology wind resource assessment enabled NUPUC to make time and risk sensitive decisions  By providing detailed long-term analysis in weeks vs. years Leads to making time sensitive and capital investment decisions  Robust methodology and detailed analysis results were used in the economic analysis  3D gridded data vs. singular met data Giving high detail across the entire development site  Long term data analysis vs. 1-year data  Provided opportunity-cost benefits and project planning advantages Original wind turbine cost estimates were for $1,200/kW, now $1,500/kW

6. Economics NUPUC has completed their economic projections  Determined that they need 5 MW of wind energy  They were able to scope and model project cost  They will achieve their MN RPS mandate (Renewable Portfolio Standard)  They will be able to use CREB’s for their project (Clean Renewable Energy Bonds – IRS website)  Project output and projected revenue are now known NUPUC’s high confidence in economic projections started with detailed wind resource analysis

7. Determining Economic Benefit Three main initial due diligence components:  Wind speed  Access to transmission/site constructability  Economic analysis

8. Wind Resource Assessment Value Long term wind resource assessment provided NUPUC with valuable data  P-95 wind speed is around 7 to 7.5 m/s annual average NUPUC has less risk in spending capital  Interconnection studies and permitting  Met tower assessment  Turbine vendors down payments  Balance Of Plant design High value at the beginning of project

9. Next Steps for NUPUC? The challenges of being local – working with your neighbors Further planning and investment is now feasible  BOP  Local stakeholder negotiations  Validation of wind speed  Financing  Permitting  Maintenance contracts Building in 2009 2010 season

10. Points to Remember Community wind is economically viable and valuable to communities Advanced wind resource assessment mitigates long-term and near-term capital and time sensitive risk issues The development process is sensitive – work with and educate your neighbors about the advantages of community based wind Successful community wind is based not just on economics but also local ownership and involvement

11. Thank you! Wind energy is great for communities – local wind farms empower communities A special thank you to Pat Wrase and the New Ulm Public Utilities Commission Yusef Orest WindLogics Inc yusefo@windlogics.com