1. Xtreme Power – Battery Based Energy Storage in Alaska Alaska Energy Storage Workshop
June 2012

2. Xtreme Power, Inc. Company Overview
Xtreme Power engineers, designs, and integrates power management and energy storage solutions
Founded in 2004 in Austin, Texas; ~ 270 employees
Established Beijing Office
Projects installed, contracted, and in final negotiations: >70 MVA, across 12 projects
US-based operations in Austin, TX and OK, International presence
Utility industry leadership on Board of Directors– Pat Wood, Former FERC Chairman and Foster Duncan, Former EVP/CFO of Cinergy
Over $70 MM in funding: SAIL Capital, Bessemer VP, Dow Chemical, Fluor, Dominion Power, BP, POSCO, Skylake Incuvest

3. The Dynamic Power Resource® (DPR®)
Key Product Features
Scalable solutions: MVA to 500 MVA
Available durations: , 15, 30 min and 1, 2, or 4 h
Multi-Storage Architecture
Multiple enclosure options
Fully integrated turnkey product
High round trip efficiency
Accurate, real time response in
< 3 cycles
Re-deployable
Intelligent Control
Seamless Integration
Proven Performance

4. Truly Innovative Solutions
The DPR is an Integrated, Intelligent, Power Management Solution
that is Configurable, Modular and Scalable.
Programmable, Flexible, and Modular
High Reliability & Cyber Security
Optimized System Performance
Web Based Real Time Monitoring
Real-time Response
Control System
Fully Synchronized BMS & PCS Control
Seamlessly Interface with the Grid
Factory Tested and Field-Ready
Operate 100 Modules as Single System
System Integration
Real and Reactive Power Supply
Low Auxiliary Consumption
Power Precision within 10 kW
Overload to 150% of Nameplate MVA
Power Electronics
Fast Response
Long or Short Duration
Multi-Storage Platform Capabilities
Low lifecycle cost
Safe and Reliable
Battery Energy Storage 4

5. XPOC and Test Bay 24/7 Operations Center (XPOC) Test Bay
Monitors all installations in the field in real time
Collects and stores data to view graphical representations of historical and live operational data
Remote access via secure Virtual Private Network
Option to access through Tablets and Smart Phones
Redundant Safety Notification Alerts
Test Bay
12 MVA in-house test facility
Equipped for Factory Acceptance Tests
Expandable to 20MVA
Ability to perform full 4 quadrant PQ operation
Verification of control modes such as Ramp Control, Frequency Regulation, Voltage Regulation, Power Leveling, etc.

6. Proven Experience 77 > 143,000 > 2.5 GWh 245
As of March 31, 2012 – Xtreme Power’s experience includes:
> 2.5 GWh
Energy Charged and Discharged 77
Megawatts Installed by End of 2012
> 143,000
Hours of Integrated Module Operation
245
Gigabytes of Recorded Data
Leading the Market with Operational Experience

7. A Growing Portfolio of Deployed Projects
Customer
Application
Power Rating / Duration
COD
Services
Deployed Projects
South Pole Telescope (SPT)
University of Chicago
Microgrid
0.5 MVA / 5 min.
4Q 2006
Peak-Shaving
Kahuku
First Wind
Renewable Integration
15.0 MVA/ 15 min
1Q 2011
Ramp Control, Curtailment Mitigation
Lanai
Castle & Cook
1.1 MVA / 15 min
2Q 2011
Ramp Control, Frequency Response
Ford Michigan Assembly Plant
Ford, DTE Energy
Demand Management
0.75 MVA / 60 min
Load-Leveling, Ramp Control
KIUC
Kaua’i Island Utility Cooperative
Grid Support
1.5 MVA / 15 min
3Q 2011
Frequency Response, VAR Support
Nova
Xcel Energy
4Q 2011
Ramp Control, Firming & Shaping, Frequency Response, VAR Support
Total Operating
6 Customers
4 Applications
~20 MW
6 Projects
7 Services
Near-Term Projects
KWP II (Maui)
10.0 MVA / 45 min
2Q 2012
Ramp Control, Responsive Reserves, Grid Services
Fosters
Classified
3.0 MVA / 15 min
Uninterruptible Power Source
Ture
1.5 MVA/ 15 minutes
Ramp Control & VAR Support
KIUC II & III
3Q 2012
Ramp Control
Notrees
Duke Energy
Merchant Services
36.0 MVA / 15 min
4Q 2012
Responsive Reserves, Regulation Services, Grid Services
Bear
Kodiak Electric
3 MVA/ 15 min
Frequency response, Responsive Reserves, Voltage Support
Total Near-Term
3 New Customers
57 MW
5 Projects
9 Customers, 5 Applications & 10 Services To Date in Deployed Projects
~ 77 MVA, 154 MW Dynamic Power Range in Deployed Projects 7

8. South Pole Telescope 5 Years Experience
Location
South Pole, Antarctica
Segment
Microgrid
DPR
0.5 MVA, 5 minute duration
Dynamic Power
1 MW
COD
Q4 2006
Services
Peak-shaving,
Load-leveling
In collaboration with several centers of higher education, the University of Chicago chose the Xtreme Power DPR to power the 200-ton South Pole Telescope’s scan cycles without infringing on the station’s life support system. The Telescope requires up to 259,200 cycles/month.

9. Kodiak Electric Cooperative Expanding Xtreme Power’s Microgrid Experience
Location
Kodiak, AK
Segment
Microgrid
DPR
3.0 MVA, 15 minute duration
Dynamic Power
6.0 MW
COD
Q4 2012
Services
Ramp Control, Frequency and Voltage Response
Kodiak Electric will employ the 3.0 MW DPR to smooth the output of the Pillar Mountain Wind Project, so that the utility can utilize the Terror Lake Hydro facility to manage grid stability and frequency regulation. Additionally, the utilization of the DPR will reduce diesel fuel consumption by allowing a higher penetration of renewable assets.

10. Microgrid Operators Challenges Expensive Diesel Operating Costs
Can be >$4/gal in remote locations
High cost and risk of fuel delivery
Few alternatives available
Unstable and Unsecure Grid
Weak electrical distribution system can lead to loss of critical loads
Poor power quality may require purchase of additional electrical equipment
Insufficient response time for diesel generators
Inefficient Use of Grid Resources
Generators operate at reduced output for reliability
Common curtailment and limited integration of renewable generation
Constant cycling of units leads to more frequent O&M and greater fuel consumption
Actual Wind Output Without DPR 10

11. Microgrid Operators: Case Study
Microgrid Challenge
Example Case Study Scenario Outline
Microgrid Peak Load
5 MW
Diesel Generators
3 x 2 MW each
Solar Farm Nameplate Capacity
2 MW
Wind Farm Capacity
4.5 MW
Diesel Fuel Cost
$1.25/liter
Solution 1: Utilize Diesel Generators to Balance Grid
Grid Instability Limits Renewable Energy Delivered
2 MW of solar curtailed down to 1.2 MW
4.5 MW of wind curtailed down to 2.5 MW
Requires more generation from diesel
Inefficient Diesel Operation Consumes More Fuel
Contingency requirements force generators to operate at low levels
Average loading of generators = ~52%
Spinning reserves cause additional curtailment of renewables 11

12. Microgrid Operators: Case Study
Microgrid Solution
Example Case Study Scenario Outline
Microgrid Peak Load
5 MW
Diesel Generators
3 x 2 MW each
Solar Farm Nameplate Capacity
2 MW
Wind Farm Capacity
4.5 MW
Diesel Fuel Cost
$1.25/liter
Solution 2: Utilize 2 MVA/1 h DPR for Grid Balancing and Reserves
DPR Maximizes Renewable Energy Delivered
Wind and solar farms operate at full nameplate
DPR balances intermittency of renewables and acts as reserves without adding generation
Efficient Asset Utilization Yields High Cost Saving
Average loading of generators = ~70%
Decrease Fuel Consumed by > 17% 12

13. Xtreme Power Solutions
Microgrid Operators
Xtreme Power Solutions
Increase Reliability and Reduce Diesel Consumption
Allow diesels to operate in optimal range to reduce fuel consumption
Reduce need for fuel shipments
Support energy independence
Correct Grid Imbalances
Act as back up power source to keep critical loads online
Maintain high power quality with VAR support
Respond times faster than diesel generators
Maximize Productivity of Grid Assets
Reduce strain on the electrical distribution system caused by intermittency
Decrease diesel consumption through less curtailment of renewable resources
Decrease cycling to reduce O&M and fuel consumption
Actual Wind Output Without DPR 13

14. Renewable Developers & Operators
Challenges
Intermittent supply
Variable, inconsistent production decreases market value
Difficult to maintain sufficient power quality
May require additional balancing services
Curtailed Production
Frequent curtailment reduces annual production
Unable to capitalize on PPA without guarantees
Prolonged return on investment
Uncorrelated Generation & Demand
Inconsistent generation profile vs. consistent load profile
Peak output does not match peak load
Unable to capture full market value
Actual Wind Output Without DPR
Actual Wind Output Without DPR
Source: Energy Storage – A Cheaper, Faster, & Cleaner Alternative to Conventional Frequency Regulation (CESA) 14

15. Renewable Developers & Operators: Case Study
Renewable Developer Challenge
Example Case Study Scenario Outline
Solar farm Capacity
3 MW
Ramp Rate Requirement
± 500 kW/min
PPA Compliance Requirement
99%
Solar PPA Price
$135/MWh
Solution 1: Limit Maximum Capacity
950 kW
Ramp Rate Limit Requires Curtailment
Uncurtailed ramp rate > 3x limit (±1.9 MW/min)
Must curtail to 950 kW to meet requirement
Curtailment Decreases Energy Delivered
Capacity nameplate 3MW = 19.3%
Capacity limited 950 kW = 11.5%
Annual production decreased by over 40% 15

16. Renewable Developers & Operators: Case Study
Renewable Developer Solution
Example Case Study Scenario Outline
Solar farm Capacity
3 MW
Ramp Rate Requirement
500 kW/min
PPA Compliance Requirement
99%
Solar PPA Price
$135/MWh
Solution 2: DPR Size
1.5 MVA/15 min duration
1.5 MW DPR Reduces Intermittency
DPR able to maintain ramp rate requirement
No curtailment required to meet PPA
Increase Energy Delivered & Project Revenues
Maintain capacity factor of 19.3%
Capture incremental Ancillary Service revenue
Increase Project Revenues by > 95% 16

17. Renewable Developers & Operators
Xtreme Power Solutions
Smooth Generation Variability
Reduce intermittency, Avoid penalties
Improve power quality
Provide grid balancing services
Optimize Asset Value
Mitigate Curtailment, Increase energy delivered
Enable restructured Power Purchase Agreements
Boost revenue with additional service offerings
Reshape Output to Meet Demand
Mitigate forecast error market penalties
Shape power to capture peak pricing opportunities
Firm power to access premium pricing
Actual Wind Output With DPR® 17

18. Utilities, Cooperatives & Municipalities
Challenges
Grid Stability & Power Quality
Growth in renewables drives need for additional balancing services
Inefficient grid balancing service offerings increases operating costs
Power Quality issues must be solved locally
Rigid and Costly T&D Congestion Solutions
Transmission congestion can lead to high wholesale prices
T&D infrastructure is sized to meet a future peak demand, but rarely used at that level
Congestion requires capital intensive T&D infrastructure upgrades
Complex T&D Project Planning & Logistics
NIMBY area restraints
Prolonged lead times increase project risks
Onerous permitting process increases costs
Strict siting limitations reduces solution efficiency
Actual Wind Output Without DPR 18

19. Utilities, Cooperatives & Municipalities
Xtreme Power Solutions
Improve Grid Stability & Power Quality
Smooth intermittency or firm and shape power delivered from renewable resources
Balance grid fluctuations accurately and efficiently without adding unneeded energy
Siting flexibility delivers power quality solutions directly to problem source
Enable Flexible, Economic Congestion Solutions
Enhance reliability and decrease congestion
Increase load carrying capacity of the transmission system
Provide incremental capacity to defer an oversized T&D upgrade investment
Expedite Turnkey Project Execution
Integrate all key components into a utility-scale system and shorten project lead times
Operate with existing/planned infrastructure
Site anywhere with non-hazmat technology
Actual Wind Output Without DPR 19

20. Tom Noelle
Vice President, Business Development
5513 Silentbrook
Rolling Meadows, IL 60008