1. Protecting the Midwest’s Environment and Natural Heritage 1 Expanding and Modernizing the Electrical Grid: Essential Infrastructure for the Midwest’s Clean Energy Future John N. Moore Senior Attorney Environmental Law and Policy Center Chicago  Des Moines  Sioux Falls  Jamestown (ND) Minneapolis  Madison  Columbus  Washington

2. Protecting the Midwest’s Environment and Natural Heritage The Situation  Global climate change hasn’t gone away, even if Washington has.  Coal is on the way out.  Most renewable energy is either carbon free or low carbon.  The Midwest still can be the “Saudi Arabia” of wind power, IF we can free it in a responsible way.  Time to align federal policies with reality. 2

3. Protecting the Midwest’s Environment and Natural Heritage Coal Ramping Down, Wind/Renewables Up 3  Coal retirements expected to be 30 to 120 gigawatts (GW) by 2040.  Based on all the EPA rules, low demand, and low natural gas prices.  High range depends on real and perceived impact of carbon regulation.

4. Protecting the Midwest’s Environment and Natural Heritage Even Electric Power Research Institute Believes It 4 Why? Air rules Low natural gas prices Energy efficiency/price- responsive demand Uprates to nuclear plants More solar Potential carbon regulation

5. Protecting the Midwest’s Environment and Natural Heritage Midwest Wind Growth Even More Pronounced 5

6. Protecting the Midwest’s Environment and Natural Heritage Federal Policy Not Aligned with Reality Source: Environmental Law Institute

7. Protecting the Midwest’s Environment and Natural Heritage 7 Need to site new backbone transmission in ways that minimize delivery of coal power, especially to eastward load centers. Recognize that much large- scale transmission planning will seek to maximize use of new lines for all generation. = lower power prices = higher power prices Key – Don’t Provide Lifeline for Coal

8. Protecting the Midwest’s Environment and Natural Heritage PS - Wind Turbine Income Is Good for Farmers 8 ELPC study 2010

9. Protecting the Midwest’s Environment and Natural Heritage But If You Don’t Build It, Will Lose It 9 Upper Midwest Wind Transmission Development Initiativ