1. 1 IPED Wind Conference: Debt Panel Santa Fe, NM July 26, 2007 The Rating Agency Perspective. Peter Murphy, Director Standard & Poors Public Power Sector Spokesperson

2. 2 Key Issues

3. 3 Renewable Energy and Global Warming Project Finance issues System debt considerations Standard & Poors wind project ratings Standard & Poors Public Power Ratings

4. 4 Renewable Energy and Global Warming Genie is out of the bottle. U.S. regulation likely, extent unknown Cap and Trade, or Carbon Tax U.S. utilities targeted. Will the pain be shared. Ratepayers Clean Coal Technology, Nuclear Efficiencies, Demand-Side Management, Conservation Fuel-Switching The role of renewables? Wind is the leading choice Renewable Portfolio Standards Federal Incentives

5. 5 Project Financings – Key factors Contract Structure Legal RegulatoryLocal, State, Federal CounterpartyContractors, Off-takers Construction TechnologyEvolution, and risk OperationsWind issues, Equipment Competitive ExposureRegional pricing FinancialDebt Service Coverage

6. 6 System Financing Reduces Risk Pledge of all system revenues Parity with other generation, transmission, and distribution debt Wind project scale is minimal compared to total

7. 7 Rated Wind Projects U.S. Energy Northwest, WA, 9 Canyon Wind (Phase I, II, III)A-/Stable ** FPL Energy American Wind LLCBBB-/Stable FPL National Wind LLCBBB-/Stable FPL Energy National Wind Portfolio LLCBB-/Stable FPL Wind Funding LLC (Calif, New Mexico)BB-/Stable Europe Max Two Ltd. (Breeze One)BBB-/Negative CRC Breeze Finance S.A. (Breeze Two)BBB/Stable Breeze Finance S.A. (Breeze Three)BBB/Stable Alte Liebe 1 Ltd.BBB-/Stable ** rating based on 10 public utilities system-wide pledge

8. 8 Public Power is Solidly Investment Grade (ratings as of July 1, 2007) AA+ 1(0.4%) AA24(10.5%) AA-31(13.5%) A+53(23.1%) A37(16.2%) A-50(21.8%) BBB+17(7.4%) BBB10(4.4%) BBB-5(2.2%) BB+ 1(0.4%)