Generating Jobs Invenergy David Groberg 4.1.11

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April 1, 2011 Presented by David Groberg, Invenergy LLC Direct Local Spending at U.S. Wind Farms Generating Jobs with Wind Power: SACE Webinar

Invenergy :

2 Invenergy U.S. company, based in Chicago, IL Over 350 employees worldwide Independent developer of renewable energy and natural gas electricity generation projects Focused on development, construction management, financing, operations, maintenance and long-term ownership Largest independently-owned U.S. wind energy developer (6 th largest U.S. owner/operator of wind energy facilities) 2 nd Largest U.S. Purchaser of General Electric Wind Turbines (over 2,000 GE turbines placed into operation) Six U.S. natural gas generation projects in operation or construction (2,810 MW ) Moving into utility-scale solar. 40 MW of projects under contract.

Invenergy North America Wind and NG/Thermal and Solar Portfolio - Map:

3 Invenergy North America Wind and NG/Thermal and Solar Portfolio - Map CONFIDENTIAL

Direct Local Spending:

Direct Local Spending Wind farms produce an initial burst of intense direct local spending during construction, followed by twenty years of stable economic activity. Wind farm construction creates significant numbers of temporary jobs for skilled workers and high demand for many local vendors. During operations, wind farms provide good-paying, stable employment for a modest number of local residents, along with significant, reliable tax revenues for local governments.

Local Spending During Development:

Local Spending During Development Development does not typically result in significant local spending. The Development process for wind projects can take 3 to 5 years before construction commences . Total development spending typically amounts to approximately $25,000 per MW or $4,000,000 per 100 MW. Local spending typically covers up to 25% of these expenses. In addition to lease or option payments to landowners, the main opportunities for local business during development include local legal representation, environmental consultants, and surveyors.

Local Spending During Construction:

Local Spending During Construction For every wind turbine it builds, Invenergy typically spends approximately $200,000 locally. Locally sourced inputs include materials such as fuel, concrete, gravel and other road materials. Local services used include lodging, meals, vehicle/equipment rental. A typical 100 MW, 67-turbine wind farm should generate 9-12 months of employment for over 100 construction workers and support staff. Construction workers typically involved in wind turbine construction typically include carpenters, millwrights, operators, iron workers, laborers, and high and medium voltage electricians. As a result, a 100 MW wind project should result in $10,000,000 to $15,000,000 of direct local spending.

Local Spending During Operations:

Local Spending During Operations Wind farms typically require one turbine technician for every 8 turbines, plus a site supervisor and a site administrator. These positions are typically full-time with benefits. A typical 67-turbine, 100 MW project would have an annual payroll of approximately $600,000 based on 10 full time employees, including including a site manager, site administrator, and 8 turbine technicians. Invenergy has been very successful hiring local candidates for wind energy operations staff. Additional local spending should exceed $100,000 per year (including locally available parts, tools equipment, fuels, vehicle and office expenses). Landowner payments should be approximately $10,000 per turbine per year or $675,000 for a 100 MW project.

Taxes:

Taxes Property taxes vary from wind state, but as a general rule, wind energy projects typically end up being the highest, or one of the highest property tax payers in their counties. Nationally, a typical 100-MW wind farm generates $ 500,000 to $1,000,000 per year in county property taxes for every year of operation. The 100-MW Beech Ridge Wind Farm in Greenbrier County, WV will pay more than $500,000 per year in property taxes. That amounts to more than $10,000,000 in direct additional tax revenue for local government over the project’s 20-year life .

Annual Local Spending: 100 MW Project:

Annual Local Spending: 100 MW Project 9 Direct Annual Economic Benefits to Local Community $ 500,000 Total Tax-Related Payments $ 600,000 Operations Payroll $ 100,000 Local Goods and Services $ 675,000 Landowner Payments ------------------------------------------------ $1,875,000 Total Annual Direct Local Spending

Questions?:

Questions?