January 2004 Desert Sky Wind Farm

WelcomeWelcome

Desert Sky Wind FarmPecos County, Texas

Desert Sky Wind FarmJanuary 2004

Wind Power’s PlaceWind Power’s Place

Important part of mix Free fuel No emissions management

Maturing technology Cost competitive

Predictable at proven sites Low risk at proven sites

Fastest growing source Future looks bright

January 2004 Desert Sky Wind Farm

Wind Growth in U.S., TexasWind Growth in U.S., Texas

1,687 Megawatts (MW) added in 2003

204 MW in Texas 410 MW added in 2002 1,696 MW added in 2001

915 MW in Texas 28% average annual expansion in U.S. capacity over the last five years Total installed capacity:

U.S. - 6,374 MW in 32 states Texas – 1,293 MW Texas ranks 2nd in U.S.

Source: American Wind Energy Association

January 2004 Desert Sky Wind Farm

Wind Industry DriversWind Industry Drivers

Competitive cost Long-term price stability Environmental attributes Federal wind tax credit equaling 1.7 cents per KWH Texas Senate Bill 7 (electric industry restructuring) Rural development Ease of permitting

January 2004 Desert Sky Wind Farm

Senate Bill 7 DetailsSenate Bill 7 Details

Senate Bill 7 (1999 electric restructuring legislation) included renewable portfolio standard (RPS)

Requires additional 2,000 megawatts (MW) of capacity in state of Texas by Jan. 1, 2009 (beyond 880 MW installed at the time)

Under SB7, cumulative installed renewable capacity in Texas must grow to: 1,280 MW (an additional 400 MW) by Jan. 1, 2003 1,730 MW (an additional 450 MW) by Jan. 1, 2005 2,280 MW (an additional 550 MW) by Jan. 1, 2007 2,880 MW (an additional 600 MW) by Jan. 1, 2009

2,880 MW equates to about 3% of TX electricity in 2009 Installed wind capacity in TX as of Jan. 1, 2004 was

1,293 MW

January 2004 Desert Sky Wind Farm

Texas Wind Projects vs. Load CentersTexas Wind Projects vs. Load Centers

Dallas- Ft. Worth

Austin

San Antonio

Houston

Rio Grande Valley

Corpus Christi

January 2004 Desert Sky Wind Farm

Wind Energy PotentialWind Energy Potential

0 200 400 600 800 1000 1200 1400

N.Dakota

Texas

Kansas

S.Dakota

Montana

Nebraska

Wyoming

Oklahoma

Minnesota

Iowa

In Billions of KWH

January 2004 Desert Sky Wind Farm

Declining Cost of WindDeclining Cost of Wind

0

5

10

15

20

25

30

35

40

1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006

$’s Per MWHDoes not include Federal wind tax credit; reduces cost 1 cent / kWh or $10 / mWh

January 2004 Desert Sky Wind Farm

Utility Interest in Wind EnergyUtility Interest in Wind Energy

Rapidly declining cost Rapidly growing industry Adds to fuel source diversity Environmental benefits High levels of public support Legislative or regulatory

mandates Abundant resources in U.S.

January 2004 Desert Sky Wind Farm

Wind Site ConsiderationsWind Site Considerations

Willing landowners and public Windy site

1-5 years of data Mesa Few trees

Lots of land -- rural Environmental studies

Endangered species Avoid bird flyways

Archaeology studies Transmission network

January 2004 Desert Sky Wind Farm

Desert Sky Wind FarmDesert Sky Wind Farm

GE Wind Energy built project; performs O&M

CPS buying power

AEP owns facility

January 2004 Desert Sky Wind Farm

Desert Sky DetailsDesert Sky Details

160 megawatts – 107 turbines at 1.5 MW each

Located on Indian Mesa near Iraan and Bakersfield, TX

Project covers 15 sq. miles Enron Wind (now GE Wind Energy)

developed and constructed the project; now performing O&M

AEP purchased project after completion in 2001 -- $175 million investment

Power is sold to City Public Service of San Antonio under long-term power supply agreements

January 2004 Desert Sky Wind Farm

GE Wind Energy 1.5 -- Operation GE Wind Energy 1.5 -- Operation

Operates in 8-56 MPH wind Onboard weather station Electronically controlled Yaw control facing wind Variable speed via blade pitch Operates at 11-20 RPM Desert Sky a 107-unit power plant (each turbine is self-contained unit)

January 2004 Desert Sky Wind Farm

Tower and Turbine ProfileTower and Turbine Profile

GE Wind Energy 1.5 turbines Each rated at 1.5 megawatts (1,500 kilowatts) 328 ft. base to blade tip Foundation 18 to 26 ft. deep Tower in three sections 163.3 tons total

January 2004 Desert Sky Wind Farm

Wide Sweep of Turbine BladesWide Sweep of Turbine Blades

231 ft.231 ft.

211 ft.211 ft.

Each blade 112 ft. long 231 ft. blade tip to tip Span greater than 747 airliner

January 2004 Desert Sky Wind Farm

Wind Turbine UnitsWind Turbine Units

Nacelle56 tons

Tower3 sections

Blade112’ long

Workers

January 2004 Desert Sky Wind Farm

NacelleNacelle

Nacelle (nuh-cell) shown before assembly Houses generator and gearbox Resembles large travel trailer Weighs 56 tons

January 2004 Desert Sky Wind Farm

Inside NacelleInside Nacelle

January 2004 Desert Sky Wind Farm

Desert Sky MapDesert Sky Map

Dallas, 400 Miles San Antonio, 266 Miles Odessa, 90 Miles

Ft. Stockton, 50 miles McCamey, 20 Miles Iraan, 12 Miles

Desert Sky

January 2004 Desert Sky Wind Farm

More InformationMore Information

AWEA.ORG American Wind Energy Association

AEP.COM American Electric Power

CITYPUBLICSERVICE.COM City Public Service, San Antonio

GEWIND.COM GE Wind Energy

DESERTSKYWIND.COM Desert Sky Wind Farm

January 2004 Desert Sky Wind Farm

Thank You!Thank You!