1. The Tale of Two Ashland Projects David Donovan Manager, Regulatory Policy David Donovan Manager, Regulatory Policy

2. 2 Bay Front Operations 35 full-time employees Wood purchases of  $5.0 million in 2008 $20 million+ local economic impact Generates an average of 325,000 MWh/year Helps meet Wisconsin’s RPS Beneficial use of fly ash to construct “pad sites” to aid local farmers, ranchers, others 35 full-time employees Wood purchases of  $5.0 million in 2008 $20 million+ local economic impact Generates an average of 325,000 MWh/year Helps meet Wisconsin’s RPS Beneficial use of fly ash to construct “pad sites” to aid local farmers, ranchers, others

3. 3 Fuels at Bay Front Waste wood Natural gas Coal Shredded tires

4. 4 Bay Front Gasification Project Need for long-term plan for Bay Front Financial and environmental considerations Convert remaining coal-fired boiler to use biomass gasification technology Project allows plant to use 100% biomass Approximately $58 million Adds 200,00-250,000 tons of biomass per year Need for long-term plan for Bay Front Financial and environmental considerations Convert remaining coal-fired boiler to use biomass gasification technology Project allows plant to use 100% biomass Approximately $58 million Adds 200,00-250,000 tons of biomass per year

5. 5 Biomass Gasification Process

6. 6 Major Environmental Improvements NOx: 60% SO 2 : 80% Particulate Matter: 80% Avoids 100,000 tons coal per year Avoids 200,000 tons CO 2 emissions per year Reduction in mercury emissions NOx: 60% SO 2 : 80% Particulate Matter: 80% Avoids 100,000 tons coal per year Avoids 200,000 tons CO 2 emissions per year Reduction in mercury emissions

7. 7 Regulatory Process Feb. 2009 – Filed Application with PSCW Certificate of Authority vs. CPCN March-April 2009 – MPUC, NDPSC applications Spring-Summer 2009 – Environmental Assessment Fall 2009 – Public hearings Fall or Winter 2009 – PSCW decision Feb. 2009 – Filed Application with PSCW Certificate of Authority vs. CPCN March-April 2009 – MPUC, NDPSC applications Spring-Summer 2009 – Environmental Assessment Fall 2009 – Public hearings Fall or Winter 2009 – PSCW decision

8. 8 Customer and Community Impact Eco-municipality goals of Chequamegon Bay Retain fuel costs in Wisconsin Support local economic development Achieve carbon management goals Meet renewable portfolio standards Support local agricultural industry Eco-municipality goals of Chequamegon Bay Retain fuel costs in Wisconsin Support local economic development Achieve carbon management goals Meet renewable portfolio standards Support local agricultural industry

9. 9 Ashland Lakefront Project

10. 10

11. 11 History of Ashland and the Site Wood processing activities 1884-1939 Manufactured Gas Plant operation1885-1947 Ashland County1939-1942 City of Ashland (landfill and WWTP)1942-now Wood processing activities 1884-1939 Manufactured Gas Plant operation1885-1947 Ashland County1939-1942 City of Ashland (landfill and WWTP)1942-now

12. 12 Project History WDNR site evaluation1994 NSP characterizes MGP site1995-1997 Site proposed for listing on NPLDec. 2000 Listed on NPLSept. 2002 WDNR site evaluation1994 NSP characterizes MGP site1995-1997 Site proposed for listing on NPLDec. 2000 Listed on NPLSept. 2002

13. 13 Ashland Lakefront Project Schroeder Lumber Occupied the site from 1901 to 1939. Harvested more than 50,000,000 board-feet of logs per year. Operated sawmill, lath mill and planing mill at this site. Produced finished lumber, creosoted treated railroad ties, piles for dock construction, roof shingles and cedar posts. Shipped wood from pulp mills to Fox River Valley. Employed hundreds of people at the site, paying some of the best wages in the area. A $1-million company in 1901. Schroeder Lumber Occupied the site from 1901 to 1939. Harvested more than 50,000,000 board-feet of logs per year. Operated sawmill, lath mill and planing mill at this site. Produced finished lumber, creosoted treated railroad ties, piles for dock construction, roof shingles and cedar posts. Shipped wood from pulp mills to Fox River Valley. Employed hundreds of people at the site, paying some of the best wages in the area. A $1-million company in 1901.

14. 14 Ashland Lakefront Project City of Ashland Wastewater treatment plant Municipal and construction debris landfill Construction of the marina Canadian National Railroad City of Ashland Wastewater treatment plant Municipal and construction debris landfill Construction of the marina Canadian National Railroad

15. 15 Ashland Lakefront Project Remedial investigation completed2007 Feasibility study completed2008 Framework document signed2008 What’s next? Who pays? Remedial investigation completed2007 Feasibility study completed2008 Framework document signed2008 What’s next? Who pays?