1. Opportunities in Energy Ray Hammarlund Director, Energy Programs Division Kansas Corporation Commission

2. Top Ten Problems of Humanity for the Next 50 Years 1) Energy 2) Water 3) Food 4) Environment 5) Poverty 6) Terrorism & War 7) Disease 8) Education 9) Democracy 10) Population Source: Professor R.E. Smalley – Rice University May 3, 2003

3. U.S. Energy System

4. Human Development Index vs. Energy Usage

5. World Energy GDP vs. Energy Consumption Oman Turkmenistan Estonia Netherlands Portugal Czech Saudi Arabia Russia Denmark Japan Trinidad & Tobago Australia Finland Norway Switzerland Singapore Canada Iceland Kuwait United States UAE Sweden Belgium New Zealand Italy China Slovenia S. Korea UK Austria Israel Spain Germany France Chile Greece IrelandSlovakia Uruguay Argentina Mozambique 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 05,00010,00015,00020,00025,00030,000 GDP per capita (million Int. $ at PPP) Energy Consumption (thousand metric toe per capita)

8. Energy Efficiency, Conservation “A clean world takes a lot of dirty work” Mike Rowe – Dirty Jobs – Discovery Channel There is plenty of work to be done in Kansas for 50 years on energy efficiency and conservation

9. ARRA funding from KCC Revolving loan fund for Residential and Light Commercial –Two options Payments on the utility bill EE loan through participating banks –Details Average dollar amount of upgrade around $6000 with $1500 usually paid for upfront by homeowner Requires an energy audit

10. Meridian Way Wind Farm 201 MW - 2008 Spearville Wind Farm 100 MW - 2006 Smoky Hills Wind Farm 250 MW - 2008 Central Plains Wind Farm 99 MW - 2009 Elk River Wind Farm 150 MW - 2005 Gray County Wind Farm 112 MW - 2001 Flat Ridge Wind Farm 100 MW - 2009

14. Top Ten Wind Manufacturers (as of March 2008) Source: BTM Consulting 1) Vestas (Denmark)VestasDenmark 2) GE Energy (United States)GE EnergyUnited States 3) Gamesa (Spain)GamesaSpain 4) Enercon (Germany)EnerconGermany 5) Suzlon (India)SuzlonIndia 6) Siemens (Germany)Siemens 7) Acciona (Spain)Acciona 8) Goldwing (China - PRC)China - PRC 9) Nordex (Germany)Nordex 10)Sinovel (China - PRC)

17. U.S. Nuclear Power Plants

20. Agriculture Offsets vs. Carbon Sequestration

21. Geologic Storage of CO^2

22. Long Range Goal: Develop a Continuous Process for the Production of Algal Biomass Biomass Production Areas meeting criteria for sun exposure & temperature Fossil fuel-based electric power plants Public sources of water/wastewater Pate, R., “Biofuels and the Energy-Water Nexus”, Sandia National Laboratories, AAAS/SWARM, April 11, 2008, Albuquerque, NM

23. Fuel Extraction Fuel Processing Major Emitting Sources All Direct Sources All Indirect Emission Sources Power plant Factory Residential/Commercial Refinery Mine/Drilling Upstream (fuel producers) Downstream (consumers) Energy Supply Chain (Stylized) Source: Dallas Burtraw – Resources for the Future

24. Innovation is on the consumer side Dynamic Pricing-Pricing for incremental and time of use, not bulk sale of averaged price electricity. Smart Grid defined –Self healing/correcting –Motivate customers to be active grid participants/controllers of grid –Resist attack-physical/cyber –Increased power quality for modern uses –Accommodate all generation/storage options –Facilitate markets –Optimize all assets/operations

25. So, you want to make money in energy solutions Ray’s advice for what it is worth –Get as close to the consumer as you can This is not production solutions, it is consumption solutions –The answer is simple: Consumers want to “TiVo ®” energy Let them Real time pricing Instant consumption feedback Information Remember Dirty Jobs……

26. Questions? Ray Hammarlund (785) 271-3179 r.hammarlund@kcc.ks.gov