Fossil Gulch Wind Park Fossil Gulch Wind Park

• Presented By Jeff Duff• Vice President, Airstreams LLC

WelcomeWelcome

Hagerman, Id

Fossil Gulch• Seven (7) GE 1.5MW SLE

Turbines • Owned by Colorado & Santa

Fe Real Estate• Construction started in 2004

(Developed by Exergy Energy)• Installation and

Commissioning Completed 2005, First Utility Wind Facility in Idaho

• Operations and Maintenance (GE Wind Energy-Contract)

• Performance Management (Owners Representative Airstreams, LLC)

Fossil Gulch Facts– First Utility Scale Wind Power

Facility in Idaho– Each 1500 kW Rated Power

• Would power about 400 -500 homes energy needs at full capacity

– 80 Meter Tower • Airbus A380 wing span is 80m

– 77 Meter Rotor Diameter– Cut-In Wind Speed 3.5 mps

• Low Wind Technology– Currently two full time technicians– Turbines are remotely monitored

on a 24 hr/7 day basis

Wind Farm Development Simplified• Wind Resource – Minimum 5mps+ annual average wind speed,

local data collection and site measurements, • Transmission - Cost to build, access and development costs,• Land – Private (Royalties) and Public (Lease), roads, infrastructure,

facilities,• Capital - $1 - $1.35m per MW installed 20 MW plus projects• Power Purchaser or Market – 10 to 30 year contracts, Purchasers

will seek cheapest and reliable source, trend in states like California is for Utilities to seek competitive bids due to development demand.

• Project Feasibility Issues – Biological Issues, Geological Issues, Local Issues (Noise, Visual), Flight Paths

• Zoning and Permitting Expertise• Turbine Supplier – Turbine Purchase Agreements (Demand

constraints have booked most OEM’s into Q1 2009)• Turbine Operations and Maintenance – Cost, Warranties, Service

and Engineering Support and track Record

O&M Challenges• Wind turbines located in remote areas• Lack of Trained Personnel due to strong

demand by other companies• Warranties – Fossil Gulch was purchased with

a five (5) year parts and service warranty. New projects typically have two (2) year parts and service or “Parts Only” warranties.

• O&M Costs typically $5 to $8 per MW on 20MW and above projects.

Industry Trends

• The U.S. wind energy industry installed 2,454 megawatts (MW) in 2006, an investment of approximately $4 billion,

• New wind farms boosted cumulative U.S. installed wind energy capacity by 27% to 11,603 MW,

• Expected growth for 2007 will add 26%, nearly 3,000 MW,

• One megawatt of wind power produces enough electricity to serve 250 to 300 homes on average each day.

• Source AWEA

Wind Resource Energy PotentialTHE TOP TWENTY STATES for wind energy potential, as measured

by annual energy potential in the billions of kWhs, factoring inenvironmental and land use exclusions for wind class of 3 and higher.

1 North Dakota 1,210 11 Colorado 4812 Texas 1,190 12 New Mexico 435

3 Kansas 1,070 13 Idaho 734 South Dakota 1,030 14 Michigan 655 Montana 1,020 15 New York 626 Nebraska 868 16 Illinois 617 Wyoming 747 17 California 598 Oklahoma 725 18 Wisconsin 589 Minnesota 657 19 Maine 5610 Iowa 551 20 Missouri 52

Wind Energy Potential

The total amount of electricity that could potentially be generated from wind in the United States has been estimated at10,777 billion kWh annually—more than twice the electricity generated in the U.S. today. An estimated 31 billion kWh of Wind Energy will be generated in 2007, representing less than 1% of the potential.

Thank You

• I Will Be Available for Questions Throughout the Conference,

• Fossil Gulch Field Trip Leaves at about 9am

How Do Turbine Cost Stack Up?