Wind Energy in New York State:Opportunities & Challenges

Presented by Allison Finley forThe 12th Annual North Country Sustainable Energy Fair,

Canton, NY

April 28, 2007

This presentation is an amended version of the workshop that was presented to the 12th Annual North Country SustainableEnergy Fair on Saturday April 28, 2007.

For more information please visit us on the web at www.noblepower.com or write to

us at info@noblepower.com

Presentation OverviewPart I: About Noble

Part II: Opportunities, Benefits and Challenges of Windpark Development in New York State

Part III: Myths and Facts

Part I: Who is Noble

Environmental Power?

Who is Noble Environmental Power?

Noble is a leading renewable energy company committed to creating environmentally friendly facilities in partnership with local communities.

Noble is majority-owned by J.P. Morgan Partners Fund

Noble was formed in 2004 in response to public policy initiatives

Headquartered in Essex, CT, Noble has regional offices across NYS

Noble currently employs about 100 people

Where Does Noble

Have Windparks?

Siting Considerations

Wind Resource Assessment

Access to Transmission

Land Use

Environmental Assessment

Preliminary Site Design

New York State

(230 kV and above)

Legend:

Niagara

Oswego

OakdaleFraser

Marcy

Massena

Moses

Chateauguay

Plattsburgh

GilboaAlps

Clay

Lafayette

Watercure

Stolle Rd.

EdicPorter

Rotterdam

PleasantValley

Coopers Corners

Rock Tavern

Roseton

Buchanan

RamapoSprainbrook

Dunwoodie

765 kV

345 kV230 kV Goethals

Complex

Homer City

Shore Rd.E.Garden City

HuntleyPannell

Sta.80

Transmission System

Somerset

500 kV

Adirondack

Dunkirk

Meyer

Willis

NewScotland

Leeds

Hillside

Millwood

Farragut

W49St/Rainey

New YorkNew York’’s Electrical Systems Electrical System

10,775 miles of High Voltage Transmission360+ individual generating units.Installed Capacity 35,000+ MW

Source: NYISO 2004 Electricity Markets Overview Presentation

Noble plans to own and operate its facilities. We are investing in a long relationship and

want to be excellent neighbors.

Part II: Opportunities, Benefits

& Challenges -

Wind Energy in

New York State

The Benefits of Wind Energy:

Good for our Energy Future

Good for the Environment

Good for the Local Economy

Good for our Energy Future: Challenges in New York, the Answer is Blowin’ in the Wind

Clean, Plentiful, Renewable Energy

Diversified Power Generation Sources

Price of Electricity from Wind

We Need More Generation Capacity

Energy Security in Uncertain Times

Good for our Energy Future:Clean, Plentiful, Renewable Energy

NY State has adopted a Renewable Portfolio Standard (RPS):

Requires 25% of energy to come from renewable sources by 2013

Currently, NY’s energy mix contains 19% energy from renewable sources

Wind energy has potential to provide 10% of New York State’s energy

Good for our Energy Future:Diversified Power Generation Sources

Good for our Energy Future: We Need New Generation Capacity

Demand for energy increases every year

Supply isn’t keeping up with demand

Some additional capacity is being added to the New York grid here and there, but it’s not enough

The only new power plants being built run on natural gas – the most expensive fuel there is!

Noble plans to add 385 MW of wind power to the New York grid in 2007, and 380 MW in 2008

Breaking Records: New York Peak Load 1997-2006

26,00027,00028,00029,00030,00031,00032,00033,00034,00035,000

July 15,1997

July 6,1999

Aug 9,2001

July 26,2005

July 17,2006

Aug 1,2006

Aug 2,2006

HENRY HUB NATURAL GAS PRICE WEEKLY DATA

$0

$2

$4

$6

$8

$10

$12

$14

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

($/MMBTU)

Hurricane Andrew

March 1993 Blizzard

January 1994 Blizzard

Massive Cold Front and Well Freeze Off

Early Winter 1996/97

Hurricane D

Technical Factors

Hurricane Georges

Excess Storage and Mild Winter

Source: NGW and EVA, Inc.

Coldest Nov/Dec on Record/S.T. Demand > S.T. Supply

Declining production for six quarters

Mild Winter Hurricane Opal

January 1996

Blizzard

HurricaneIvan

Hurricane Katrina

Chronological Highlights byJim Lazar, Consulting Economist

The Regulatory Assistance ProjectGraph Data Source: NGW and EVA, Inc.

Baseload, Intermittent, and Peak Generationvs. 24-hour Demand Curve

12:00 midnight

12:00 noon

12:00 midnight

Baseload

Peak

Nuclear

Steam Turbine Coal, Oil, Natural Gas

Combustion Turbine Gas

Intermittent Generation (Hydro, Wind)

Demand

Good for our Energy Future: Energy Security in Uncertain Times

“Home-grown” energy

Decreases reliance on non-renewable supplies from unstable parts of the world

President Bush calls for 20% of national energy to come from wind (Advanced Energy Initiative, Feb. 2006)

Good for the Environment

Zero Air and Water Emissions, Zero Hazardous Waste

Minimally Impacts Wildlife, Natural Habitat

Good for the Environment: Zero Air and Water Emissions, Zero Hazardous Waste

Burning fossil fuels to make electricity releases toxins into our air and water:

Carbon dioxide (CO2) – global warmingSulfur dioxide (SO2) – acid rainNitrous oxides (NOX) – smogMercury and lead – impair neurological development

Nuclear power is emission free, but creates radioactive waste

Good for the Environment: Windparks Minimally Impact Wildlife, Natural Habitat

Wildlife needs clean air and water, too!

No build-up of toxic mercury in environment and biological food chain, i.e. fish

Preserves open space, providing more habitat

Responsibly sited windparks do not pose a threat to avian and bat species

Good for the Local Economy

Creates Jobs

Helps to Stabilize Electricity Costs State Wide

Promising Job Future

Good for the Local Economy: A 100 MW Windpark Creates Jobs, Tax Revenue

Hundreds of short term jobs during construction phase, several permanent jobs once operational

Wind parks create 27% more jobs per kilowatt hour than coal and natural gas plants

Payments to host communities can be used to reduce local taxes, improve schools, services, infrastructure

Lease payments to participating land owners are also significant source of income

Over 20 years, the economic impact of Noble’s three 2006

North Country windparks is estimated to be

$360,000,000

GE orders propel port activity By Eric Anderson, Deputy business editor Albany Times Union -Wednesday, April 26, 2006Work at Albany docks is picking up as wind turbine blades, sugar pass through.

Good for the Local Economy: Stabilizes Local Electricity Costs

Price of electricity from most sources is affected by fuel prices (esp. natural gas) – but not wind!

Most fossil-fuel based generators won’t enter into long-term (> 3 year) contracts, and even then, they may require a “fuel price adder”as protection against rising fuel prices

Wind generators are generally happy to sign 10 or 15 year contracts improves stability of electricity prices

GE Energy Study – Noble’s seven New York windparks will save ratepayers $40,000,000 annually in electricity prices

Buying coal, oil, and gas sends New York dollars out of state -- wind projects keep energy dollars in state

Good for the Future: A Promising Job Future For The Next Generation of Rural New Yorkers

An emerging market for permanent operations and maintenance jobs

New opportunities for college degrees: SUNY Canton Alternative and Renewable Energy Applications degree program

Good for rural economic development and homegrown industry jobs, reinvigorating rural NYS

Property values

Wind energy is expensive

Birds / wildlife

Noise

Reliability

Infrasound

Electromagnetic interference (EMI)

Shadow Flicker

Part III. Myths and Facts

Myth:

“Wind turbines lower property values.”

FACT: Multiple studies have shown that wind turbines do not cause a decline in property values.If anything, the studies indicate that property values may increase slightly – most likely because of lowered taxes and improved local services.

Myth:

“Wind energy is expensive.”

Don’t let anyone tell you that wind energy is expensive!

Today, wind is one of the least expensive options for new sources of electric generation.

(…and that’s without even factoring in the cost of the environmental impacts from other generation sources…)

Comparing the price of electricity from a new windpark to the price of electricity from a 30 year-old coal plant is meaningless – you have to compare apples to apples.

Myth:

“Wind turbines pose a threat to wildlife such as

birds and bats.”

#1 –Buildings/windows (5,500 per 10,000 deaths)

#2 – Housecats (1,000 per 10,000). Some estimates say cats kill up to a billion birds per year in the U.S.

#3 – high tension lines, vehicles (1,500 per 10,000)

…and wind turbines? On average, about 1.2 birdsper turbine, per year…not biologically significant.

The National and New York Audubon Societiesand the American Bird Conservancy, along with numerous other environmental groups, all support wind power.

FACT: The top three killers of birds in the United States are:

Myth:

“Wind turbines are noisy.”

FACT: Modern wind turbines are very quiet – and the GE 1.5 megawatt turbines that Noble plans to use in New York are one of the quietest turbines made.

A commonly used reference is that at a distance of 750 to 1000 ft., a modern wind turbine is no noisier than a kitchen refrigerator or a moderately quiet room. In high-wind conditions, the sound of the wind will be far louder than any sound from the turbine.

Myth:

“Wind energy isn’t reliable.”

FACT: Wind energy is intermittent, but that doesn’t mean it’s unreliable.

Wind energy is actually quite predictable, and studies have shown that New York State could easily get 10% or more of its electricityfrom wind energy without having any negative impact on the grid.

Wind turbines have been in commercial operation around the world for up to twenty years, and wind energy has proven to be highly reliable and predictable.

Myth:

“Wind turbines produce ‘infrasound’ which has

negative impacts on human health.”

FACT: Everything emits infrasound (even you!), but scientists agree that the levels of infrasound from wind turbines are so low that they do not affect anyone’s health.

There are approximately 60,000 wind turbines in operation around the world – some of which have been producing clean energy for twenty years! – and there is absolutely no documented evidence of negative health effects resulting from the operation of wind turbines.

Myth:

“Wind turbines cause ‘shadow flicker’,

an annoying strobe-like effect.”

FACT: Wind turbines may cast moving shadows under the right conditions, but proper sitingcan minimize or eliminate any potential impacts.

Complex computer programs are used to indicate where and when shadowing could occur, so any potential problems can be identified – and mitigated –before the windpark is developed.

Allison FinleyCommunity Outreach, Public Affais

Office: 518.497.3414Mobile: 518.534.1439

Fax: 518.497.3421Email: Finleya@noblepower.com

Noble Environmental Power, LLC8 Railroad Avenue Essex, CT 06426

www.noblepower.com | info@noblepower.com