ROCK ISLAND CLEAN LINE Clean Energy. Delivered. U.S. Onshore Wind Resources United States - Annual Average Onshore Wind Speed at 80 m 2 Existing Transmission Lines 3 Clean Line Energy Partners Clean Line projects Connecting the lowest-cost wind resources to major demand centers 4 Rock Island Clean Line SD NE IA DE NC I N PA MD VA NJ IL OH KY TN M I WV DC Delivers 3,500 MW of wind power 500-mile direct current transmission line Approximate project cost: $2 billion 1.4 million homes powered per year 5 Rock Island Regulatory Approvals STATUS MILESTONES Federal Energy Regulatory Commission authorized Rock Island to negotiate rates in 2012 REGULATORY APPROVALS Illinois Commerce Commission unanimously approved the Rock Island Clean Line on November 25, 2014, making Rock Island a public utility. Iowa Utilities Board informational meetings completed in 16 counties, franchise petitions filed in November 2014. 6 Key Partnerships Kiewit will provide development support and construction management services for the Rock Island Clean Line Sabre Tubular Structures is the preferred supplier of transmission structures for the Rock Island Clean Line Siemens will provide the high voltage direct current technology solutions for the Rock Island Clean Line Southwire is the preferred supplier for the overhead transmission cable for the Rock Island Clean Line 7 Growing Demand and Value for Renewables RPS Demand in PJM States TWh 180 160 MD/NJ/PA Average REC Prices 2011-2014 $ Projected demand1 14 120 12 100 10 80 Current supply + Rock Island 0 8 6 40 20 18 16 140 60 20 Current supply (in PJM states, 2013 YE installed capacity) 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 4 2 Jan-11 Jan-12 Jan-13 Jan-14 Rock Island will supply 15 million MWh of clean energy per year to reduce projected REC shortfalls, helping states comply with Renewable Portfolio Standards. EPA 111(d) rules strengthen need for renewables and minimize likelihood of RPS repeal or rollback. 1. 2. Projected demand for renewable energy credits within PJM. States with voluntary goals are not included in the demand calculations. Source: EIA; DSIRE; AWEA Prices as of 10/20/2014. 2013, 2014, 2015, and 2016 Vintage, Class 1/Tier 1 Maryland, New Jersey, and Pennsylvania. Source: SNL 8 Clean Line Competes Levelized Cost of Energy $ / MWh 180 160 140 145 120 120 100 94 80 20 105 104 74 60 40 154 20 Transmission2 23 Wind1 0 Clean Line Delivered Product Combined Solar PV 3 Cycle Gas Thin-Film 3, 4 Turbine 3 Nuclear Coal 3 3 IGCC Solar Off-shore 3 Thermal wind 3 1. Based on the Lazard estimate for high-capacity factor wind, includes Production Tax Credit 2. Assumes ~725 miles of transmission at $2 mm per mile, end-point converter costs of $250 mm each, mid-point converter at $100 mm and development cost of ~$100 mm, price is flat for 25 years 3. Cost of generation based on mid-point of Lazard’s Levelized Cost of Energy estimate 4. Assumes $4.50/MMBtu gas price. Source: Clean Line, Lazard’s 2013 Levelized Cost of Energy Analysis 9 Direct Current Technology • More efficient — Lower line losses • Lower cost — Requires less infrastructure, results in lower costs and lower prices for delivered renewable energy • Improved reliability — Control of power flow enhances system stability and lowers cost of integrating wind • Smaller footprint — Uses a narrower right-of-way than equivalent Alternating Current (AC) AC footprint DC footprint 10 Delivering Renewable Energy • In O’Brien County, Iowa • Collects wind energy • Converts energy from AC to DC • Transmits energy on the Rock Island Clean Line • In Grundy County, Illinois • Receives energy from the Rock Island Clean Line • Converts energy from DC to AC • Connects with existing transmission system 11 Wind Power Curve Correlations Correlation of 10-Minute Wind Energy Generated KS KS IA 0.37 IL IN PA 0.09 0.03 .00 0.19 0.07 .02 0.75 .15 IA 0.37 IL 0.09 0.19 IN 0.03 0.07 0.75 PA .00 .02 .15 Low correlation Medium correlation High correlation .19 .19 1. “Low correlation”: between 0.0 and 0.25; “Medium correlation”: between 0.25 and 0.5; “High correlation”: between 0.5 and 1.0 Source: EWITS; Clean Line analysis 12 Economic Benefits $7 billion i n new wind farm i nvestments $2 billion i nvestment i n transmi ssion line project 5,000+ construction jobs 500+ operations jobs Millions per year in tax payments Provides electricity to 1.4 million homes per year Increased market competition benefits consumers Significant pollution reduction "Expanding transmission is very important to the U.S. wind industr y and to Iowa. The Rock Island Clean Line enables a market for 4,000 MW of new wind, supporting hundreds of jobs at facilities like our wind blade factory in Newton, Iowa." — Steve Lockard, President & CEO, TPI Composites Inc 13 Preferred Route 14 www.rockislandcleanline.com Typical Structure Types Monopole Structure Lattice Mast Structure Lattice Structure Typically 4 - 6 structures per mile Typically 4 - 6 structures per mile Typically 3 - 5 structures per mile Typically 1,000 - 1,300-foot spans between structures Typically 1,000 - 1,300-foot spans between structures Typically 1,100 - 1,600-foot spans between structures Structure sizes and span lengths vary due to soil conditions, topography and other routing considerations. 16 Study Corridors 3 to 10-mile-wide study corridors within which Clean Line has worked with communities and other stakeholders to determine the preferred route for the line 17 Environmental Benefits 9 MILLION TONS (equal to taking 1.7 million cars off the road each year) 16,100 TONS PER YEAR OVER 3.5 BILLION GALLONS OF WATER PER YEAR (sulfur dioxide is a precursor to acid rain) 8,300 TONS PER YEAR (nitrogen oxide contributes to smog) 140 POUNDS OF MERCURY PER YEAR 18 Growing Demand For Renewables Renewable energy supply and demand in PJM states Thousand GWh 180 160 Rock Island 140 120 100 80 Current renewables supply Renewable energy demand 60 40 20 0 2015 2017 2019 2021 2023 2025 1. Energy from existing wind, biomass, and solar projects within the PJM states 2. Demand for renewable energy credits within PJM. States with voluntary goals are not included in the demand calculations. Sources: EIA; DSIRE; AWEA; PJM Transmission Expansion Advisory Committee 19 Local Business Opportunities Engineering • Geotechnical engineering • Utility potholing • Surveying (Lidar, staking) Equipment Rentals • Vehicles, excavators, dozers, cranes • Equipment Fueling Trucking and Hauling Service Environmental • Silt fence • Dewatering • Environmental controls ST&S Local Services • Title searches and abstracting • Housing / apartments / hotels • Restaurants • Office and event space Converter/substation equipment • Transformers • Converter stations Access • Clearing of right away • Stone purchasing • Geo fabric material • Culvert material and installation Foundations • Drilled pier contractors • Concrete suppliers • Rebar suppliers and installers • Foundation casings Structures • Steel fabricators • Lattice and monopole structure manufacturers • Rigging materials Conductor • Conductor manufacturers, aluminum producers • Conductor hardware and insulators Restoration • Site grading • Hydro or broadcast seeding • Grass matting 20