Wind Energy DiscussionVan Wert County Economic DevelopmentJune 22, 2011

1. Blue Creek Overview

2. Regulatory environment in Ohio

Blue Creek Wind Farm

• 152 wind turbines– Gamesa G90 2.0 MW on 100m towers

• Approx $600M investment

• Construction started September 2010

• Should go online in December 2011

• Approx $1.1 million in annual lease payments

• Approx $2.7 million/year in local property tax revenue

• 114 turbines in Van Wert County, 38 in Paulding

• 15-20 new permanent jobs2

Our Three Projects

4

Our Three Projects

• Blue Creek – up to 350 MW (175 turbines)

• Prairie Creek – 200 MW (100 turbines)

–North of Ohio Route 114

• Dog Creek – 300 MW (150 turbines)

–East of U.S. Route 127

• Strong interconnection positions for all three.

• Total investment: approx $1.7 Billion

5

Doing Business in Ohio

• Permits – the OPSB, Federal, local

• SB 221 (2008) – Portfolio Standard

• SB 232 (2010) – Property Taxes

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Ohio Power Siting Board

• Division of PUCO, issues CECPNs

• 2008 rules to govern wind farms > 5 MW

• Blue Creek Timeline– Dec 21, 2009 filing of 3,000+ page application

– April 2010 supplemental filing with re-designed project

– July 15, 2010 Stipulation reached with Staff

– August 23, 2010 CECPN issued

– September 22, 2010 Start of Construction approved

• Thorough, centralized process7

Federal and local permits

• Federal– FAA

– ACOE

• Local– Officially, none

– Road Agreement

– Regular communication with

townships and counties

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SB 221 (2008)

• Advanced Energy Portfolio Standard (“RPS” elsewhere)

• 25% by 2025: 12.5% renewable, 12.5% advanced– 2.5% by 2014, then increases of 1% per year

– 0.5% “carve-out” for solar energy

• 50% in-state requirement

• Created a market for renewable energy in OH– Led us to move project plans from IN to OH

• Adds long-term price stability to OH market– Fixed prices at 5-8 cents/kW-hr for 20 years 9

SB 232 (2010)

• PILOT for personal property taxes

• Vital for capital-intensive wind projects

• Replaced rates of up to $40k/MW/yr with $9k/MW/yr

• Clarified sales tax exemption for energy conversion equip.

• Need County-level approval

• Need to hire >50% Ohio-domiciled employees

–$6k if >75%, $7k if >60%, $8k >50%

• Other reqs: educational partnership, emergency responders, road repairs, sell to OH utilities

• 2 year term, but current budget bill includes 3 yr extension 10

SB 232 (2010) relative to adj. states

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SB 232 (2010) local benefit

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• Blue Creek in VW County:

114 x 2.0 MW turbines

$9k/MW

= $2,052,000 new rev/year

= top 14 current taxpayers combined

Local Benefits of Blue Creek and Timber Road II

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• Peak construction jobs: 495

• New permanent jobs: 30

• NW Ohio vendors/suppliers to the projects: 40

• Total spending on local contracts: $21.3 M

• Total local spending in April by out of state workers: $100,000

• Combined annual local taxes: $3.6 M

• Combined annual landowner payments: $2.6 M

• To-date local contributions: $145,000

• Vantage contributions over 20 years: $325,000

Contact information

www.iberdrolarenewables.us/bluecreek.html

dlitchfield@iberdrolaren.com

773-318-1289

126 E Main St, Van Wert