Great River Energys Renewable Energy Activity

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Great River Energys Renewable Energy Activity

• October 2006 Webinar
• Mark Rathbun Great River Energy

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Great River Energy

• Generation and Transmission (GT) Cooperative
• 28 Member Distribution Cooperatives
• Serve 600,000 cooperative members
• Second largest electric utility in Minnesota
• 4th largest GT cooperative in U.S.
• 2,500 MW generating capacity
• 4,000 MW by 2015
• 10,500,000 MWH annual sales to members

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Great River Energy
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Great River Energy Renewables Today

• First electric utility in region to offer members
  a green pricing option Wellspring
• 4,579 subscribers system wide
• Purchase over 18 million kWh/year
• Not currently Green-e certified
• Increased interest from commercial customers
• First MN electric utility to commit to
  Minnesotas Renewable Energy Objective (REO)
• 10 renewable energy by 2015
• 500 MW nameplate capacity wind
• Community Based Energy Development (CBED)

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Great River Energys Renewable Portfolio - 2006

• Chandler Hills est. 1999/2001
• 9 Vestas 660 kW turbines
• McNeilus Wind est. 2003
• 6 NEG Micon (now Vestas) 950 kW turbines
• Christoffer Wind est. 2003
• 6 Suzlon 950 kW turbines
• Trimont Wind est. 2005
• 67 General Electric 1,500 kW turbines (1.5 MW)
• Elk River Station
• 39 MW RDF plant
• Anaerobic Digesters and Landfill Gas

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Trimont Wind I

• Nearly 50 landowners host the project
• Over 1 million/year into the economy in Martin
  and Jackson Counties
• Produces over 340,000 MWh/year
• Enough to supply the annual energy needs 29,000
  homes
• Provides competitively priced, environmentally
  friendly energy for an expected lifetime of over
  20 years

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Great River Energy Renewables in the Future

• In October 2005, we issued a Renewable Request
  For Proposals (RFP)
• 100 MW any ownership structure
• 20 MW community based ownership
• Proposal prices significantly higher than last
  RFP
• Signed PPA with Horizon Wind
• December 2007 COD
• Currently negotiating with other short-list
  qualifiers
• Represents 140 MW additional wind

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Great River Energy Renewables in the Future

• Our Integrated Resource Plan (IRP) projects 100
  MW of wind each year through 2015
• We expect that a large percentage of future
  renewable resources will be community wind
• Many CBED wind projects will be hosted by our
  cooperative members economic benefits to local
  economy
• If Clean Renewable Energy Bonds (CREBS) continue
  funding, we expect to take an ownership position
  in future projects

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Renewable Energy Credits (RECs)

• Renewable Energy Credit (REC) Sales
• Asset optimization
• Voluntary market currently yields low prices
• Reward v. Risk
• Increased interest and appetite for longer term
  contracts
• Midwest Renewable Energy Tracking System (M-RETS)

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Other Renewable Issues and Activities

• Federal PTC set to expire December 31, 2007
• Potential increase to wind prices of 19/MWH
• GRE not willing to accept PTC risk for projects
  beyond 2007
• Obstacles to overcome
• Turbine availability and related price increases
• Transmission limitations

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Other Renewable Issues and Activities

• Minnesota Legislature debating 20 Renewable
  Portfolio Standard
• Increasing costs for Baseload resources and
  future CO2 developments could accelerate our
  renewable activities
• Great River Energy plans to take a leadership
  role in renewable energy development and
  environmental stewardship