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Windshare 2008 AGM Welcome Members. Windshare 2008 AGM Welcome & Introductions 2007 Windshare Board Paula Boutis John Binns Riki Burkhardt Evan Ferrari.

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Presentation on theme: "Windshare 2008 AGM Welcome Members. Windshare 2008 AGM Welcome & Introductions 2007 Windshare Board Paula Boutis John Binns Riki Burkhardt Evan Ferrari."— Presentation transcript:

1 Windshare 2008 AGM Welcome Members

2 Windshare 2008 AGM Welcome & Introductions 2007 Windshare Board Paula Boutis John Binns Riki Burkhardt Evan Ferrari Jennifer Jeffery Rose Kudlac Stewart Russel Treasurer - David Robertson Introduction to: Joanna Slezak Richard Lawrence Deb Doncaster – Community Power Fund

3 Windshare 2008 AGM Agenda (motion to approve agenda) 1. 1.Welcome and Introductions 2. 2.Agenda Review Approval of minutes from 2007 AGM Recognition of Board & Staff: 5. 5.Board Elections: WindShare Board Report – A year in Review: a) Year Overview b) Administration Coffee Break WindShare Board Report – Continued: c) Technical and Production d) Financial Report 8. 8.New Investment ExPlace scenarios Election Results ADJOURNMENT ANNOUNCEMENTS

4 Windshare 2008 AGM “Energy and persistence alter all things.” Benjamin Franklin

5 Windshare 2008 AGM “The definition of insanity is doing the same thing over and over and expecting different results.” Benjamin Franklin

6 Windshare 2008 AGM APPROVAL OF MINUTES 2007 AGM Riki Burkhardt

7 Windshare 2008 AGM RECOGNITION Rose Kudlac Riki Burkhardt Paula Boutis

8 Windshare 2008 AGM BOARD ELECTIONS Seven Member Board Three year terms Open to members and members in waiting Three vacancies to fill tonight Dianne Sax Evan Ferrari Ted Tracewicz Nominations from the floor? Stewart Russell

9 Windshare 2008 AGM BOARD ELECTIONS Each Candidate will have 2 minutes

10 Windshare 2008 AGM BOARD ELECTIONS -Can vote for up to three people -Election ballots to be submitted into Ballot Boxes -Ballots will be counted over Coffee Break -Board can appoint new members during the year but must ratify new members at next AGM

11 Windshare 2008 AGM WINDSHARE BOARD REPORT   WINDSHARE BOARD REPORT   a) Year Overview   b) Technical and Production   c) Financial Report

12 Windshare 2008 AGM Overview of 2007 WINDSHARE BOARD REPORT Overview of 2007  Original Goal – multiple turbines  Environmental CO2 emission reduction  Board continues to look at ways of  increasing production  reducing costs  reducing our risk  making us profitable.  Financial – not there yet  Challenging year for production and maintenance  1 turbine exposes us to higher financial risk while multiples reduce risk  Main Bearing issue - future  Financials demonstrate the difficulties that this situation presents us  New Investments – trials and tribulations  Lakewind –  ExPlace  Other possible opportunities

13 Windshare 2008 AGM What happened to Lakewind Project? WINDSHARE BOARD REPORT What happened to Lakewind Project?  Worked with TREC & Countryside Energy Cooperative  10 megawatt (5 turbine) project near Kincardine,  On hold for up to five years  Orange Zone - Ontario Power Authority (OPA) agreement - Bruce Power  No new production unless generated at Bruce Nuclear Plant  Many of you sent letters to the Minister of Energy  decision to leave the Lakewind for another day was difficult

14 Windshare 2008 AGM Lakewind on Hold – Now What? WINDSHARE BOARD REPORT Lakewind on Hold – Now What?  No potential new projects  October, 2007 joint Visioning session  Re-evaluate something close to home - ExPlace.

15 Windshare 2008 AGM More Tirbines at the Ex? WINDSHARE BOARD REPORT More Tirbines at the Ex?  Why more turbines at the Ex?  2005 feasibility add one turbine at ExPlace  not financially feasible  Number of these issues have changed considerably since 2005, namely:  Access to a long term contract - Standard Offer Program  Guaranteed price for 20 years  Turbine technology has improved  20% more efficient than our current turbine

16 Windshare 2008 AGM ExPlace Fasibility Study WINDSHARE BOARD REPORT ExPlace Fasibility Study  ExPlace now receptive to 2 more turbines (electricity self sufficiency by 2015)  Toronto Hydro very interested in joint venture  Has potential to move quicker than Lakewind  Good working relationships with all associated with this development and location

17 Windshare 2008 AGM ExPlace Fasibility Study WINDSHARE BOARD REPORT ExPlace Fasibility Study  Enabled us to conduct Feasibility study:  1) Continuing to operate only one turbine  2) Adding two more turbines at ExPlace

18 Windshare 2008 AGM E1 E2 Proposed Wind Turbine Locations 04/02/08

19 Windshare 2008 AGM Administrative Committees  Joint Venture (WindShare & Toronto Hydro)  Rose Kudlac, John Binns, Stewart Russell, Evan Ferrari  Technical Committee  Rose Kudlac & John Binns, Stewart  Finance Committee  (David Robertson, looking for new treasurer )  Communications Committee  Jennifer Jeffery  Admin  Riki Burkhardt

20 Windshare 2008 AGM Coffee Break

21 Windshare 2008 AGM WINDSHARE BOARD REPORT John Binns Technical and Production

22 Windshare 2008 AGM Production/Technical Exhibition Place Turbine Lagerwey LW52 wind turbine Installed Dec 2002, energy generation Jan 2003 Rotor diameter 52m, Hub height 60m 600 kW capacity (de-rated), direct drive, gearless model AC-DC-grid AC converter Normal rotation speed 24.5 rpm 2.5 m/s minimum wind threshold for blade rotation Approximately 500 kilowatts energy production in winds of 11 m/sec At 95% availability potential maximum energy generated 5,000,000KwH per year Average energy generated 1,000,000KwH per year 4,000,000 KwH achieved June 2007

23 Windshare 2008 AGM Energy Revenue  WS fiscal year October-September  Power Purchase Agreement (PPA) Jan Dec 2006-$0.0969/KwH  Hourly Ontario Energy Price (HOEP) Jan April 2007  Renewable Energy Standard Offer Programme (RESOP) 27 April 2007 onwards- $0.11/KwH

24 Windshare 2008 AGM Sep-March

25 Windshare 2008 AGM

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27 Production Technical  Technical Management  Joint Venture Committee  WindShare – Evan Ferrari, Rose Kudlac, [Dave Robertson], Stewart Russell, John Binns  THESI –Jack Simpson, Leo Guidolin, Joyce MacLean  Bettink NV  McDowell Electrical  WS Technical Committee-volunteers  Technical communication  Online operations log (Yahoo)– captures information to create a database of incidents and their resolutions

28 Windshare 2008 AGM Future Challenges  Main bearing replacement (crane rental)  Overheating  LWMS (Shoebox)

29 Windshare 2008 AGM “Sagging cables” Replacement of power cable clamps  9 x 3 component sandwich clamps, holes drilled to 1” rather than 2.5cm diameter  Slippage of up to 20cm between clamps  Single prototype machined and drilled, installed to test for slippage.  New clamps machined  Replaced over 3 Sundays, finished Jan 27, 2008  Cost $450 for 9 clamps, labour $0

30 Windshare 2008 AGM

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34 Treasurers Report WINDSHARE BOARD REPORT Treasurers Report Dave Robertson

35 Windshare 2008 AGM Treasurer’s Report  Audited Financial Statements  Balance Sheet  Operations statement  Income Tax  FY 2008 Forecast

36 Windshare 2008 AGM Treasurer’s Report  Auditors:  Cowperthwaite Mehta Chartered Accountants

37 Windshare 2008 AGM Treasurer’s Report  Fiscal Year – Oct 1, 2006 to Sept 30, 2007  Low income because:  Large amount of down time for repairs  Paid at market rates not RESOP or original 9.67 cent per Kwh.  High operating costs to recover from downtime  High operating costs direct result of no warranty  Low overhead expenses  Negative operating income  Refunds to shareholders for shares not replaced  Significant reduction in cash  Cash shortage funded by EC loans

38 Windshare 2008 AGM Balance Sheet Assets (page 1) Current Assets Cash$169,305$169,788 Accounts Receivable 18,57267,210 Inventory –parts 10,02710,027 Prepaid expenses 17,03916,706 TOTAL$214,943$263,731

39 Windshare 2008 AGM Capital Assets 615,984$657,264 Funds held in escrow 291,503307,066 TOTAL$1,122,430$1,228,061

40 Windshare 2008 AGM Balance Sheet Liabilities/Equity (page 1) Current Liabilities Accounts Payable & Accrued Liabilities $9,422$17,793 Current Portion Debt 150,000150,000 Deferred Revenue 75,00075,000 TOTAL CURRENT LIABILITIES 234,422242,793 PHASE II FUNDS IN ESCROW 291,503307,066 Member Equity Members’ Equity Share Capital 776,423786,923 Accumulated Deficit (179,918)(108,721) TOTAL MEMBER EQUITY $596,505$678,202 TOTALS$1,122,430$1,228,061

41 Windshare 2008 AGM Debt Financing Environment Canada Loans  $150,000 loan  0% interest  Continuing to negotiate reuse of funds in next project

42 Windshare 2008 AGM Members’ Equity and Funds in Escrow (page 1) Members’ Equity Preference Shares $776,000786,500 Membership Shares Funds in Escrow Preference Shares 291,503307,066 Membership Shares

43 Windshare 2008 AGM Balance Sheet Liquidity   Negative working capital $ (2006, $20,938).   Working capital decreased by operating loss.

44 Windshare 2008 AGM Statement of Operations  Total energy delivered to the grid for Sept. 30, 2007 year end was 626,250 KWH (2006; 946,342 kWh) (50% WindShare’s)  Issues  Downtime reduced revenue  Low rate reduced revenue  High operating expenses  No warranty  Local electrical contractor  Brought in Bettink from Europe  Regular maintenance by electrical contractor  Management on site no longer volunteer

45 Windshare 2008 AGM Statement of Operations Revenues (page 2) Revenue Power Sales & Management Fees $18,977$46,621 Windpower Production Incentive ($0.12/kWh) 3,2905,759 Interest & Exchange gain 7,7258,242 Total$22,267$60,622

46 Windshare 2008 AGM Statement of Operations (page 2) Expenses Turbine O&M $30,817$24,472 Insurance9,3299,883 Land Lease 1,0001,000 Realty taxes 3,8505,798 Professional Fees 7,67917,057 Office expenses 6,7125,325 Interest & Bank Charges Total$59,909$63,959

47 Windshare 2008 AGM Statement of Operations Operating Income & Net Loss (page 2) Operating Income & Net Loss Revenues$22,267$60,622 Expenses$59,90963,959 (Loss) from Operations (37,642)(3,337) Amortization41,28041,280 Net Income (Loss) $(78,922)$(44,617) Deficit, open (108,721)(64,104) Deficit, close $(179,918)$(108,721)

48 Windshare 2008 AGM Statement of Operations Statement of Cash Flows Sources/Uses of Cash  Sources  Preference and Membership shares  Uses  Refunds to members  Operating loss

49 Windshare 2008 AGM Income Tax  Non-capital losses can be carried forward and applied to future taxable income  Both CCA and prior losses deductible against future income after

50 Windshare 2008 AGM 2007 Forecast  2007 budget as yet not set. PPA rate to be negotiated as to start date of RESOP  Use conservative estimate for operating costs  Operating costs include maintenance contract  Projections done for revenue & expenses for one turbine and/or 2 additional turbines in budget  2007 budget shows operating surplus but net loss after amortization.  Continues to be not sustainable in the long term. Risk of more downtime and related repair costs remains high with no warranty.  Not enough economies of scale

51 Windshare 2008 AGM Acceptance of Audited Financial Statements Motion:  To accept the Audited Statements for TREC WindShare Co-operative (No 1) Incorporated for Fiscal Year ended September 30, 2007

52 Windshare 2008 AGM Appointment of Auditors Board of Directors recommendation… Motion:  That Cowperthwaite Mehta Chartered Accountants be re-appointed auditors for TREC WindShare Co-operative (No 1) Incorporated for Fiscal Year 2008

53 Windshare 2008 AGM ExPlace Feasibility OPTIONS   OPERATE LAGERWEY ALONE   BUILD 2 NEW TURBINES   DO BOTH

54 Windshare 2008 AGM ExPlace Feasibility Assumptions  Finance new Enercons with debentures (4%)  Discount rate 4%  NPV measure is return to existing shareholders

55 Windshare 2008 AGM ExPlace Feasibility Economic feasibility Option NPV Lagerwey alone out of cash in 11 years Enercons alone 0 Both (680k)

56 Windshare 2008 AGM ExPlace Feasibility Analysis  Just Lagerwey is out of the question  Just 2 new Enercons still leaves us with the Lagerwey to deal with. NPV of zero means all the return would go to the debenture holders.  Have not costed removal of the Lagerwey although it is being discussed with our JV partners  Negative NPV means original shareholder investment discounted by approximately 80%

57 Windshare 2008 AGM EXPlace Feasibility Conclusions  Must do something to improve outlook for shareholders  2 new Enercons about the only available option

58 Windshare 2008 AGM ExPlace Feasibility NEXT STEPS  Continue the analysis of the 2 new Enercons  If positive result can be developed then decision will come to membership  Apply to CP Fund for additional funding to continue analysis and process

59 Windshare 2008 AGM ExPlace Feasibility ANTICIPATED SEQUENCE OF EVENTS  Receive approval from NavCan  Do final feasibility analysis for membership  Call member meeting to decide  If approved:  Finalize negotiations with THESI  Finalize negotiations with ExPlace  Commence environmental screening  Apply for RESOP  Commence marketing of debentures  Place order with Enercon

60 Windshare 2008 AGM ExPlace Feasibility Dave Robertson Motion:  That the WindShare Board continue to pursue building more turbines at Explace (and other developments) with a goal of coming back to the membership with a new offering statement

61 Windshare 2008 AGM Your 2008 Board: 1. 1.Gary Zavitz 2. 2.Ted Tracewicz 3. 3.Dianne Sax 4. 4.Stewart Russell 5. 5.Jennifer Jeffery 6. 6.Evan Ferrari 7. 7.John Binns Treasurer – Dave Robertson

62 Windshare 2008 AGM Agenda 10. QUESTIONS & ANSWERS9:25-9:35 11.ADJOURNMENT9:35 12.ANNOUNCEMENTS9:35


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