Environmental Finance Workshop:Infrastructure - Sustainability & Building the Public Realm March 7, 2007,Robert van Beers, COO

Merchant Transmission and Wind Powered

Generation: A Natural Fit?

2

Outline of My Remarks Background: The Montana Alberta Tie

Project Wind Power and Merchant Transmission

A Quick Backgrounder:The Montana Alberta Tie Project

4

The MATL Line

This is a 330 km 230 kV transmission line between Lethbridge Alberta and Great Falls Montana

The total project cost will be on the order of $140 million and the in-service date is expected at the end of 2007 – three years from concept to revenues

Directional control of power flows will be achieved through the use of a phase-shifting transformer

5

Tonbridge Power and Montana Alberta Tie Ltd

Tonbridge Power Inc.

MATL

100%

Tonbridge Corp.

Publicly traded corporation (TSXV – “TBZ”)

A private merchant bank

Market cap. approx. $60 m

The transmission project

Wholly-owned subsidiary with management team based in Calgary

Minority interest, management contract

6

The (Initial) Strategic Rationale Alberta is where energy comes from; the US

(notably California) needs it There is today no suitable route for Alberta

power to reach US consumers The industry agrees with us An open season will prove us right We will enjoy the ‘first-mover’ advantage

7

At the time…

The Calgary Herald, Feb. 2, 2005:

“TransAlta would certainly be wanting to access the MATL line if it were built.”-Steve Snyder, CEO

Wind Power and Merchant Transmission

9

Our Open Season Results – 100% Wind

Shipper Receipt Delivery MW Start Date1 End Date $/ MW Great Plains Wind Energy Great Falls, MT Lethbridge, AB 120 Apr. 1/ 07 Mar. 21/ 22 $5.11 Energy Logics (USA), Inc. Great Falls, MT Lethbridge, AB 180 Apr. 1/ 08 Dec. 31/ 31 $5.53 Invenergy Wind Montana LLC2 Lethbridge, AB Great Falls, MT 180 Apr. 1/ 07 Dec. 31/ 31 $4.77 Wind Hunter. LLC – 2 Lethbridge, AB Great Falls, MT 20 Apr. 1/ 07 Dec. 31/ 31 $6.40 Wind Hunter. LLC – 2 Lethbridge, AB Great Falls, MT 20 Apr. 1/ 07 Dec. 31/ 31 $6.12 Wind Hunter. LLC – 2 Lethbridge, AB Great Falls, MT 20 Apr. 1/ 07 Dec. 31/ 31 $5.85 Wind Hunter. LLC – 2 Lethbridge, AB Great Falls, MT 20 Apr. 1/ 07 Dec. 31/ 31 $5.58 Wind Hunter. LLC – 2 Lethbridge, AB Great Falls, MT 20 Apr. 1/ 07 Dec. 31/ 31 $5.30 Wind Hunter. LLC – 2 Lethbridge, AB Great Falls, MT 20 Apr. 1/ 07 Dec. 31/ 31 $5.03

Note 1: start date is later of listed date or in-service date Note 2: contract subject to final confirmation

10

Conclusion We were wrong – and shippers are differently

segmented with respect to their willingness to commit ahead of an in-service date

We sold out very quickly but in a way that fundamentally changed the nature of our line: from an arbitrage play to a collection system

We learned that transmission capacity is perhaps the greatest constraint on wind power development

We have now become pioneers in solving wind integration issues – but without becoming a participant

11

Wind Shipper Issues “2 guys and a laptop” - a lack of balance

sheet strength undermines the off-take contract value, making project finance much more difficult

Project upon project complexity leads to technical and scheduling challenges

Wind integration is in its infancy – but the utilities’ walls in Alberta and Montana are firmly up: “Moratorium” on new wind in Alberta NERC reliability standards in Montana

Wind “firming” is urgently needed

12

Regulatory Concerns Environmental regulation needs improvement.

It is enormously detail-focused (literally ‘in the weeds’), misses the big picture (notably here where wind power is supplementing coal) and appears incapable of being concluded in line with the timeline estimates of the regulators themselves

If we truly want to transform our environmental footprint we should not expect zero change. The environmental bias is against action – this must change. In particular we must debate: Land access and ‘need’ The socialization of wind firming costs

13

So How Did We Finance MATL?

Equity raised is $22.7 m for 230 m shares

Market cap now $60 m

Total cash and LCs raised to date is $44.9 m

Negotiations for approx $100 m in senior debt upon Notice to Proceed are proceeding now

$0.0

$10.0

$20.0

$30.0

$40.0

$50.0

$60.0

$70.0

$80.0

$90.0

$100.0

Feb.'05

April'05

June'05

June'06

Nov.06

Dec. 06 Mid2007

Letter of Credit

Est. $80 - $100

million

Debt

14

Robert van Beers, MPA, ICD.D is Chief Operating Officer and Director of Tonbridge Power. His background includes over twenty years of power sector strategy and finance around the world.

Tonbridge Power 20 Bay St., Suite 1100, Toronto, M5J 2N8

Phone : 416-850-2150Fax: 416-850-1985

Robert van Beers, COO: rvanbeers@tonbridgecorp.com Website: www.tonbridgepower.com

Contact Details