1. EO 210 – Power Plant, Wind, and Nuclear Energy Fundamentals Wind Energy

2. 4000 mw = $8,000,000,000 • Circulation of this money = “Economic Stimulus” • Per 100 Towers: • Direct Jobs: linked to the project (general and sub contractors)-trucking, concrete, manufacturing, earth work, road construction, electricians, 12-14 permanent technicians. • Indirect Jobs: New businesses or increased established business-restaurants, grocery stores, motels, apartments, gasoline, entertainment • Possibilities: • Job creation • Rural Revitalization • White, SD project has currently generated 500 new jobs Article 1- Wind Power Development

3. South dakota currently ranks 4th

4. Land Acquisition: On Site Tower: going rate is about $4000.00/MW • 1.5 MW Tower = $6000.00/year • “Fair Market Price” • Lease is good for the life of the turbine =usually 20-25 years. • Look at both charts on page 2. • 250 MW project would create 500 Direct and 500 indirect jobs for the surrounding communities. =$97 million during construction and $10.1 million annually after completion. • South Dakota Law HB1320 – Uniform Taxation Law • $3000/MW plus 2% of Gross Revenues = $600,000/year tax revenue per 100 MW. 20% directly to the county! Land owner revenues

5. Pre-Agreement Lease • “Wind Rights” comparable to mineral rights. • Current going rate $2000.00/year • Land owner agrees not to discuss or create deals with other developers. • Can cause social animosity between communities, individuals or individuals and a community. • Look at the map from Lake Pickeral down to Clear Lake Land acquisition continued

6. Key Players: • Transportation of LARGE EQUIPMENT: blades, nacelles, towers…. • Specialty Trailer – Load King – Mitchell =$180,000 • 3 trucks/tower, 2 pilot cars/truck • Back pilot car controls back end of trailer Industrial development

7. Component Manufacturers; • GE • Clipper • Acciona • Siemens • LM Glasfiber – North Dakota • Molded Fiber Glass – Aberdeen employs 750 • Energy Maintenance Systems (EMS) – Howard • Employs 180 – refurbish and maintain turbines Industrial Development con’t

8. No Carbon Dioxide, Mercury, Sulfur Dioxide, Nitrogen Dioxides, or radioactive wastes. • No Water use. • Minimal wildlife impact – bird/bat death • Aesthetics – Some like the looks of turbines… • Other perceptions: Ugly, Bird killers, Noise, and flicker. • Those who don’t cash in can create tremendous animosity among neighbors. Environmental effects

9. Federal Renewable Energy Standard 25% by 2025 • South Dakota easily already meets this standard… • Why? • Hydroelectric dams • Wind Farms • Allows us to currently be an exporter to tothers who cannot----Minnesota Environmental effects con’t

10. Small • Individual or business for personal usage. Goal – to make energy. • Medium • “Community Wind”- Several investors and several users. Goal – to make energy and some money. • Large • Corporate companies in the “Power” business. • Basin Electric, Florida power and Lights… Wind farm size

11. Crane Transport Permit = $50,000 • Crane operation = $850/hour • Crane operator (certified) start @ $30/hr. • Blades: “root” about 2 ft., tip about 2 inches • Double tag lines • Techs: assembly-hydro-torque wrenches • Construction White Co Indiana • Bristol Port Turbine Construction • World’s Largest Turbine Turbine Construction – Direct Jobs

12. Historical Cycle- Farm (sail style) windmills to today • Fastest Growing renewable energy source • USA has the greatest capacity to grow and will continue to do so…..why? • Texas- current leader…..why? • T Boone Pickens-who is he? Research info on him for tomorrow! • Net Metering = “Green Credits” Article # 2 – wind energy today and tomorrow. pages 1-3

13. Rural Economics: • Land owner taxes • Towers taxed • Permits • Sales taxes- direct and indirect • Less Subsidies- cannot compare to other energy production systems because it is “new” • Free Fuel – but variable….no wind, too much wind Article # 2 Con’t

14. Price Stability- Wind vs. Fossil Fuel….Sources? Cost Effective Production- South Dakota= on average 7 years to pay back initial investment Creates Jobs Social Advantages- Supports Agriculture, small footprint, local ownership, makes our country safer Local Ownership- Own shares. Similar to Ethanol Economics Continued

15. Clean Water • Water is not needed in this energy conversion. • Clean Air • No “Carbon Gas emissions • No Mining • No toxins brought to the surface (tailings) • No Reclamation of land • Land Preservation • Ag land can still be farmed and/or grazed Environmental Advantages

16. Aesthetics- two sides to this coin • Shadow Flicker- True argument • Setbacks • Noise- true argument • Setbacks • Biological – bird/bat death • Construction • Radar disadvantages