Wind

Business, Energy & the Environment: Fighting the Good Fight

Frank MaisanoBracewell & Giuliani LLP

Strategic Communications

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Which Claims are made about the project?

– Its emissions will be too high.

– It will impact wildlife.

EASY…..Right????

Project Siting Quiz: Coal vs. Wind

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• Now a little harder……

– It will harm our community

– It won’t make a difference

Could be either……

Project Siting Quiz: Coal vs. Wind

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• Final Test….

– Property values will go down

– It will make residents sick

– Somebody is getting rich at our expense

Project Siting Quiz: Coal vs. Wind

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• Moral of this quiz:

IT DOESN’T MATTER WHAT YOU BUILD, SOME ONE WILL BE OPPOSED

TO IT

Project Siting Quiz: Coal vs. Wind

Why Wind in VA?

Wind Power Is CleanWind Power Is Reliable

The New Energy Opportunity

And at Sea

At Home in the Mountains

Windpower

On the Farm

On the Coast

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Wind Farm Benefits

• Clean air• Clean water• A healthier environment• Domestic source of fuel• No external fuel cost

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Excellent payments to landowners

Large tax revenues

Wind Farm Benefits To Local Communities

Local construction jobs

Full-time jobs in Operations and Maintenance

Opportunities for New Tourism

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1. Wind Works• Wind-derived energy is nonpolluting and it improves air and water quality

• Wind projects are safe for community residents

• Properly sited and constructed wind farms can coexist with wildlife

• Wind farms work well with existing rural land uses– Use small portions of the land– Do not change the existing primary use of the land

• The Mid-Atlantic area has varying but maturing support for wind farms; encouragement is growing.

– Pennsylvania – Maryland – West Virginia– Virginia

• The Mid-Atlantic presents a good long-term opportunity for wind, given adequate wind resources and access to a strong liquid electricity market

• The areas of most interest are properties with fair wind resources and proximity to transmission lines

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Market Drivers

Why the Mid-Atlantic Needs Wind Power

• Increasing cost of energy – older coal plants, expiring of nuclear plant licenses. New clean coal plants will be much more expensive

• Increasing demand for power – usage rising at a rate of 1+% per year

• Up to 25% Renewable Energy Portfolio Standard (RPS) legislation

• Available wind resource• Demand for locally produced energy• The Mid-Atlantic is one of the largest producers of greenhouse

gases in the world - it needs to help with solutions• Future carbon emission reductions will be required. Wind is a

zero emission energy

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Mid-Atlantic (PJM) Transmission Area Fuel Mix

PJM Transmission Area

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Energy Picture In Virginia 2005

Figure 1. Electrical power generation in Virginia, 2005. Total = 78,943,045 megawatt-hours

Source: U.S. Energy Information Administration/State Electricity Profiles 2005, Table 5.

Cost of Energy ($/MWh) According to Recent Reports

0

20

40

60

80

100

120

140

Coal (PC)Coal (PC) w/CCSCoal (IGCC)Coal (IGCC) w/CCSNatural Gas (CC)Natural Gas (CC) w/ CCSNuclear Wind

Co

st o

f Ene

rgy

($/M

Wh)

Source: DOE NTEL

Source: Standard&Poor's

Notes:CCS: Carbon Capture and Storage, PC: Primary Combustion, IGCC: Integrated Gasification Combined Cycle, CC: Combined

Cycle

Sources:DOE/NTEL. Cost and Performance Baseline for Fossil Energy Plants.. Volume 1: Bituminous Coal and Natural Gas to Electricity

Final Report. DOE/NETL-2007/1281. May 2007 http://www.netl.doe.gov/energyanalyses/pubs/Bituminous%20Baseline_Final%20Report.pdf

Standard & Poor’s. Which Power Generation Technologies Will Take the Lead in Response to Carbon Controls? May 2007. On T Drive, POLICY/!general info/CostofEnergy_June2007

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County and Local Government•Bipartisan support

•Majority of governments excited about this type of economic benefits

State Government•Bipartisan support in most executive and state houses.•Strongly supported in most legislature on a bipartisan

basis

Federal Government•Bipartisan Executive and Congressional Branches of

government support•President and Vice President have publicly talked about,

encouraged development, and signed legislation

PublicIn national polls wind farms were supported by voters

87%

Political Support

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Who Else Is Encouraging and Supporting Wind Power

A Wide range of groups support wind power —

ConservationistsEnvironmental Groups

Labor UnionsLocal Community Officials

Regional Grid Power Planners

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Industry Growth

Important Operational Benefits

•Very low operating costs•Flat wholesale pricing for 10 to 20 years•Wind is a NO risk fuel supply•Hedge against gas/oil and now rising coal price volatility

•Increased energy diversity•More electrical supply competition•No carbon sequestering costs•No long-term nuclear waste storage costs

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Mid-Atlantic Wind Maps

Wind In The 4-5 Power Class Is Commercially Viable Now

Dark Green is Minimum Required Wind Speed

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Wind Farm Benefits to Landowners

• A wind farm can supply excellent additional cash flow and increased land value through guaranteed lease payments and a percentage of the gross electrical revenue generated on the landowners’ site

• Lease payments are long term, steady and predictable

• Wind farms can co-exist with existing rural land uses– No pollution– Uses small portions of the land– Does not change the existing primary use and revenue stream from the land

• Wind development improves the yield on the landholdings, avoiding ups/downs of business cycles

• Wind farms can help to improve landholder’s image by supporting a clean renewable energy source for the electrical grid

• Landholders can associate themselves with a clean environment by improved air and water quality

• Revenues paid to the communities by the wind farm improve community relations for the landowner

• Wind is an exceptional opportunity to enhance the future value of your existing land  

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DevelopmentDevelopment ProcessProcess

1)1)Meteorological and geographic analysisMeteorological and geographic analysis2)2)Secure land from landowners through land Secure land from landowners through land

leasesleases3)3)Perform wind analysisPerform wind analysis4)4)Perform interconnection studyPerform interconnection study5)5)Perform construction planPerform construction plan6)6)Secure building and environmental permitsSecure building and environmental permits7)7)Negotiate power purchase agreementNegotiate power purchase agreement8)8)Finance the projectFinance the project9)9)Construct the wind farmConstruct the wind farm

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How We Avoid Impacts

Reduce Soil Disturbance Detailed Topographic Mapping

Reduce Clearing Vegetation Cover Type Mapping

Reduce Habitat Clearing Wildlife Habitat and Wetlands Assessment

Avoid Effects on Sensitive Species Rare, Threatened and Endangered Species Studies

Reduce Potential Impacts to Birds and Bats

Bird and Bat Migration and Habitat Studies (Visual, Radar and Acoustical)

Avoid Disturbing Neighbors Noise and Visual Impact Assessment

Ensure Public Safety Ice Shedding Analysis

Minimize Effects on Cultural Resources

Historical and Archaeological Resource Assessments

Maintain Water Quality Sediment / Erosion Control Plan and Storm water Management Plan

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Per/Turbine Land Usage After Construction

•After Construction, Land Available for Landowner Use, Except: Aprox. 2500 Sq. Ft. (.06 Acres) For Tower and Parking Area

•Road and Power Line Easements 12’ - 16’ Wide Access Road* After Construction

*Whenever possible, UPC utilizes preexisting roads rather than constructing new roads.

Land Usage During Construction and Major Maintenance

•Up to 100’ Wide Equipment Access (30-35’ Crane Road and Typically 50’ to 60’ Total Width With Drainage, Cuts etc…)•Aprox. 1-3/4 Acres Area for Each 50’ x 50’ Foundation Excavation•Typical Total Land Usage Is Approximately 2-3 Acres Per Turbine.

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Economic Benefits 50 MW Pennsylvania Project

• Economic investment in the project before financing 2-3 million dollars• 3- 5 high skill full-time jobs once operational• Hundreds of thousands of dollars in federal, state & local tax revenues annually. Millions

over the life of the wind farm.• Annual lease payments to landowners• 50 – 75 jobs during construction• Million in materials and services sourced from state companies• Local businesses benefit from increased activity during construction phase of project

WindDominion & BP Wind Partnership in Virginia

VIRGINIA

• In April 2008, Dominion and BP announced a wind partnership in Virginia

• Dominion & BP will jointly develop, construct, and operate utility-scale wind projects in Virginia

• Dominion will participate through its utility, Virginia Electric & Power Company

• BP will participate through its BP Wind Energy North America subsidiary

• In January 2009, two sites in Tazewell and Wise counties were announced

WindHighland New Wind

• Virginia's First Approved Project 39 MW

• Under way since 2002 (or 1959)• Ready to Begin Construction• Paved Way for Future Development

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FreedomWorks

• Early Stages 200+ MW• Potential Opportunities in GW NF • Met Towers Permitted with Forest

Service

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VA State Legislature 2009

• Virginia has incredible renewable energy potential

• Leaders Recognize Opportunity– LG Bolling– Gov. Kaine– Sen. Wagner

• Must be investing in renewable energy, wind in particular.

• Currently in VA, there are too many obstacles

• Legislative effort designed to remove some of the burdens in a responsible manner

– Sensitive to environmental concerns– Focused on Community involvement– Yet encourages investment in renewable energy.

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Inside the Turbine

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Turbine Mechanics, Assembly and Facilities

• The blades on a turbine act as an airfoil and the lift produced can move the blades at low wind speeds

• The blades pitch (rotate on each axis) to increase or decrease lift dependant on wind speed to help regulate RPM

• The nacelle (power head on top of the tower) spins 360 degrees and is automatically rotated into the wind via computer controls

• The blades connect to a shaft connected to generators in the nacelle to produce electricity

• Blades turn at approximately 9 to 30 rpm• Cut in wind speed between approximately 3.5 M/S (7.83 MPH) and 4.0 M/S

(8.95MPH)• Cut out wind speed between approximately 20 M/S (44.7MPH)aproximately and • 25 M/S (55.9MPH)• Rotor diameters up to 325’ (swept area)• Tower and nacelle up to approximately 250’ and overall height up to

approximately 425’• Total weight over 300 tons• Most electrical wires connecting turbines under ground• Turbines can be rated to produce up to 2675KW (2,675,000 WATTS) at 690 VOLTS

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Tower Assembly

Nacelle Placement

Rotor Attached Complete Unit

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Wind Farm Facilities

O/H Transmission

100m

Hard standingFoundations

70t80m dia

34t R

otor

Unit transformer

Main transformer

Inter connectorAccess road Control

Room

O/H Transmission

100m

Hard standingFoundations

70t80m dia

34t R

otor

Unit transformer

Main transformer

Inter connectorAccess road Control

Room

100m

Hard standingFoundations

70t80m dia

34t R

otor

Unit transformer

Main transformer

Access road Control Room

100m

Hard standingFoundations

70t80m dia

34t R

otor

Unit transformer

Main transformer

Access road

Met. Mast

•Meteorological Towers•Roads•Crane Pads/ Access Foundations•Operating & Maintenance Buildings•Computer Control System (SCADA)•Electrical Gathering Systems

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~ Questions ~