1. CAPTURING THE POWER OF NATURE Iowa Stored Energy Park Advancing Renewables in the Midwest Anheuser-Busch Natural Resources Building March 28, 2007 Kent Holst Development Director

2. CAPTURING THE POWER OF NATURE Iowa Stored Energy Park “It’s The Responsible Thing To Do”

3. CAPTURING THE POWER OF NATURE ▪(Animation from Web Site)

4. CAPTURING THE POWER OF NATURE Where We Are: ▪We’ve found the geologic formation. ▪The Department of Energy backs the project. ▪Energy customers support the idea. ▪Investors are coming on board.

5. CAPTURING THE POWER OF NATURE The Site Fits CAES Storage Requirements Size Depth Porosity Permeability Cap Rock Chemistry

6. CAPTURING THE POWER OF NATURE ▪Located west of “downtown” Dallas Center, Iowa ▪Within city limits, but still primarily rural ▪Landowners & citizens coming on board

7. CAPTURING THE POWER OF NATURE Why The Department Of Energy Backs ISEP ▪Increased demand requires new resources ▪Federal & State mandates on emissions likely ▪Trends, challenges, and needs point to ISEP

8. CAPTURING THE POWER OF NATURE ▪Iowa Stored Energy Park “It’s The Responsible Thing To Do” What Energy Customers Say…

9. CAPTURING THE POWER OF NATURE ▪Helps reduce/control MY household energy costs ▪Uses a resource (wind) not being used enough ▪Can decrease dependency on foreign energy ▪Can decrease dependency on fossil fuels ▪Is a clean and healthy source of energy

10. CAPTURING THE POWER OF NATURE Load Duration Curve 0 2 4 6 8 10 12 0%10%20%30%40%50%60%70%80%90% % Hours Demand MW

11. CAPTURING THE POWER OF NATURE Energy Generation 0 2 4 6 8 10 12 0%10%20%30%40%50%60%70%80%90% % Hours Diesel GT CAES Wind Coal 2 Coal 1 ISEP Demand in MW

12. CAPTURING THE POWER OF NATURE Costs $/MWh in 10% to 50% Capacity Factor. 0 10 20 30 40 50 60 70 80 90 Coal-PCCCSCCAES Compression Fuel + VOM Fixed Costs $/MWh

13. CAPTURING THE POWER OF NATURE How Much Would CAES Save? 268 MW of CAES can save utility owners $5 Million per Year in cost of energy * Additional operational savings will come from better flexibility of CAES Black & Veatch: 200 MW CAES offers system benefits of $100 million/year * Comparison: CAES to CC or Coal at 30% Capacity Factor

14. CAPTURING THE POWER OF NATURE Funding to date ▪$1,000,000 from Municipal Utility Funds ▪$3,500,000 from Federal Funds

15. CAPTURING THE POWER OF NATURE Moving Forward ▪Leaving Research Phase ▪Entering Development Phase Research Development Construction ending 2007 -2009 2009 - 2011

16. CAPTURING THE POWER OF NATURE ▪Iowa Stored Energy Park For more information: Kent Holst ISEPA Development Director 319.239.8968 kentholst@traer.net www.isepa.com kentholst@traer.net