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OwnEnergy

Overview of OwnEnergy Community Wind Wind Development 101 Landowner Options Next Steps & Contact Information

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CONFIDENTIAL & PROPRIETARY

Who is OwnEnergy?

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OwnEnergy

Community Wind Farm Developer

Industry Leading Team Enables Local Ownership

Creates Local Benefits

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A Leader in "Community Wind" & Mid-Sized Project Development

26 active projects

Aligned with Landowner Interests

1,600 MW Current Pipeline

4 Partners Developing 2nd Project

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A Rapidly Rising IPP

2007 -Founded -1st Local Partner

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2009 - 22 projects - Sold 1st Project 2008 - 12 states - VC Funding - NFU Alliance - 1 project near complete - 12 Local Partners

2010 - 26 projects - 14 states - 13 employees - 1,600 MW pipeline - Financial Partner

CONFIDENTIAL & PROPRIETARY

Why do landowners partner with OwnEnergy?

Local Landowners/ Developers Aggregator of Mid-Size, Locally-Owned Projects

Operations

Construction

Development Expertise

Turbines Contracts

Capital

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Where is OwnEnergy developing?

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What is Community Wind?

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Community Wind

Project Size = 0 MW - 100 MW; absolute inclusion below 20 MW

Greater economic benefits than lease payments

Local Ownership = Recycled Profits

Community members have a direct financial stake

Community has significant decision-making rights

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CONFIDENTIAL & PROPRIETARY

Community Wind vs. Absentee Owned

5.0x

· Economic Impact

1.3x

· Employment impact (construction)

2.8x

· Employment impact (operations)

Sources: Kildegaard, A and Myers-Kuykindall, J: University of Minnesota, Morris Economic Development Impacts of Community Wind Projects: A Review and Empirical Evaluation, NREL; May 2009

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Wind Development 101

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Wind Development

Site Selection Early/Mid Stage Development Late Stage Development Financing

Construction

Operations & Maintenance

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Land Use & Impact

How will my land/farming be impacted?

1 - 2 acres needed per turbine Appropriate setbacks from homes & roads (1,200 ft.) Minimal impact on farming & cattle operations

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Secure Additional Land

Why does a developer need to secure land for so long?

Option/Lease Agreements Development Term 3 ­ 10 yrs Payments = $/acre or flat rate until operations Operations Term 30 ­ 60 yrs Payments are based upon a % of revenue

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CONFIDENTIAL & PROPRIETARY

Royalty

What will I get paid? Sample Project ­ 51.2 MW 32 Turbines Rated 1.6 MW/Turbine* Annual revenue share payments Increases over time (4,5,6%)

Annual Payments $/Turbine Net Capacity Factor

35.0% 40.0% 45.0%

1st ­ 10th yr

$ 7,800

11th ­ 20th yr

$ 12,600

21st ­ 30th yr

$ 19,000

$ 9,000

$ 10,000

$ 14,400

$ 16,100

$ 22,000

$25,000

Note: All numbers are estimated and are dependent upon individual project and site conditions. Number have been rounded.

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CONFIDENTIAL & PROPRIETARY

Royalty

What will I get paid per turbine?

1 Turbine

Turbines Turbine Size Net Capacity Factor kWhrs (kilowatt hours) Energy Price ($/kWhr) Energy Revenue Revenue Share to Landowner - 4%

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1 1.6 40.0 % 5,600,000 $ 0.04 $ 224,000 $ 9,000 - $22,000

Note: All numbers are estimated and are dependent upon individual project and site conditions. Numbers have been rounded.

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What can impact royalty payments?

Operations

Wind

Turbine Size

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CONFIDENTIAL & PROPRIETARY

Turbine Size

What is the tallest building in Corpus Christi?

225 kw

1.65 MW

Tallest Building in Corpus Christi One Shoreline Plaza

2.3 MW

89 ft 19

388ft

411 ft

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428 ft

Development Timeline

Site Selection Early/Mid Stage Development Late Stage Development Financing Construction Operations & Maintenance

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6 mo 15 mo

3-5 Yrs

21 mo 24 mo 36 mo 25 yrs

Landowner Options

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Landowner Options vs. Risk

Option / Lease Financial Upside Control Effort Capital Risk Development Risk Low Low Low Low Low OwnEnergy Local Partner Moderate Moderate Moderate Moderate Moderate Independent Dev High High High High High

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Why Consider OwnEnergy?

1 2 3

· Local partner influences decision-making

· Lease payments + Equity stake

· Greater benefit to local community

OwnEnergy

Your Community

Alignment of Interests

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CONFIDENTIAL & PROPRIETARY

OwnEnergy Local Partner

What is the advantage of partnering with OwnEnergy?

Lease Royalty

+

0%

=

Traditional Developer

Lease Royalty

+

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=

Note: All numbers are estimated and are dependent upon individual project and site conditions. Numbers have been rounded.

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Roles & Responsibilities

Local Partner

Wind Development, Construction, and Operations Expertise Project Finance

Community Leadership Help secure additional land Pays for Met Tower Assist with local activities

Permitting & Transmission knowhow

Turbine Procurement Wind Resource Assessment

Land Contracts

Engineering Expertise

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Next Steps & Contact Information

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Interested in being a Local Partner?

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Contact

Nathan Vajdos OwnEnergy, Inc. San Antonio, TX [email protected] (210) 831-5144

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Information

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