Landowner-Driven Wind Development

Sponsored by

In Cooperation with

Great Falls, Montana ~ October 17,2009

1. Proven, Developable, and Competitive Wind Resource

2. Organization with Committed Leadership, Support, and a Plan

3. Seed Money and Initial Development Capital

4. Control of Wind Resource Footprint

5. Committed Client(s)

6. Generation Interconnection/Transmission Solution

7. Generation Outlet

8. Strategic Partner(s)

9. Permits and Licenses

10.Dedicated Project Manager

Critical Components

1. Proven, Developable, and Competitive Wind Resource

• Met Towers (commissioned, height, and location)

• History and Corroboration of Data

• Modeling and Analysis

• Net Capacity Factor with Different Turbines

• Developability Factors

• Current Market Expectations

2. Organization with Dedicated Leadership, Support, and a Plan

• Constituency and Leaders (controlling your own destiny)

• Legal Counsel

• The Landscape

• The Organization

• Engaging a “Developer”

• Potential Business Models

• Feasibility Study of Alternatives (risks/rewards)

3. Seed Money and Initial Development Capital

• Planning and Startup Funding

• Offering Memorandum

• Staging and Raising Investment Capital

4. Control of Wind Resource Footprint

• Optimum Area for Development (footprint)

• Landowner Participation in Ownership

• Landowner Information Meetings

• Web Site and/or Point of Information Dissemination

• The “Land Man” and Landowner Relations

• Wind Right Options and Project “Buy-In”

U.S. Wind Energy Projects - Montana (existing)(As of 03/31/2009)

Source – American Wind Energy Association

Power Capacity - Existing projects (MW): 271.53

Power Capacity - Projects under construction (MW): 0

Rank In US (by Existing Capacity): 19

Rank In US (by Potential Capacity): 5

Potential Capacity (in MW): 116000

Annual Energy (in billion kWh): 1020

5. Committed Client(s)

• Opportunity Evaluation (business model)

• Unsolicited Proposals

• Requests for Proposals

• Letter of Intent

6. Generation Interconnection & Transmission Solution

• The Experienced “Grid Engineer”

• Optimum Interconnection Point and System Impacts/Costs

• Potential Partners in Interconnection/Transmission Solution

• Application for Interconnection

7. Generation Outlet

• Parameters for Generation Outlet Transmission Line

• Landowner Considerations

• Local Utility Considerations

8. Strategic Partners(s)

• The “tax incentive” Factor

• Partner(s) with Investment Capital and Turbine Access

• Partner(s) with Commitment to “Community Ownership”

• Partner(s) with Credibility

9. Permits and Licenses

• State Jurisdiction over Facility Siting

• Federal Compliance and Environmental Issues

• Local Conditional Use and Building Permits

10. Dedicated Project Manager

• Many Complex Issues

• Many Parties

• Many Meetings

• Many Negotiations

• Many Decisions

• Dedicated Professional Support

‘Landowner Driven’ Wind Energy Development Process Flow Chart

Landowner

Interest

Potential Wind Resource

Potential Market

Transmission Options

Site Identification

Site Control

On-Site Wind

Assessment

Indicative Data Review

Abandon Site

Market Evaluation

Interconnect and

Transmission

Permitting Assessment and Initiation

Preliminary Engineering and Design

Easement Acquisition

Capital & Operating

Cost Estimate

Select Strategic Finance Partner

Project Still Feasible?

Abandon Site

Begin

Construction

Commercial Operation

No Yes

<NO-GO>

<GO>

Thank you.

Questions and Comment