1. Results of Geothermal Power Survey of Electric G&T Cooperatives Robert Putnam, CH2M HILL Bob Gibson, NRECA Steve Lindenberg, Lindenberg Consulting

2. Goal of the Survey To identify technical assistance activities that will support increased use of geothermal power in Cooperative resource portfolios Focus on Generation and Transmission (G&Ts) Cooperatives Get a better understanding of how energy supply decisions are made, Co-op interest in renewable energy, knowledge of geothermal resources, barriers to increased use, etc. Focus on wind and geothermal power applications

3. Energy Supply Facts and Figures G&Ts rely heavily on coal as their major fuel source, followed by allocations of Federal hydro power and supplemented with off-system purchases or oil-fired peaking plants In most cases, wind energy supplied less than 2% of the Co-op’s annual requirements Few Co-ops plan to have more than 5% of their energy needs met by wind in the near-term Only one Co-op has an ownership interest in a geothermal power project

4. Demand Growth Distribution Co-ops : 1% per annum G&Ts : 2-4% All of the G&Ts interviewed had plans in progress to add base load generation capacity to meet this need With one exception, all of the planned additions are coal-fired units at existing plants Construction period will begin in the next 3-5 years Current stock is expected to continue to operate for many years One distribution Co-op indicated they would be interested in only renewable energy options in the future

5. Energy Supply Decisions Critical concerns: – reliability – impact on rates – environmental impact – transmission access and availability – risk management Unknowns: local energy market Only one G&T used an economic value to quantify environmental, fuel, or legislative risk, and its use was requested by the State

6. Energy Supply Decisions Continued ANY increase in rates had to be small and well- documented as the most cost-effective option Other factors considered: – fuel diversity – availability of local fuels – price stability – community acceptance 15-20 year planning horizon Decisions strongly influenced by senior management

7. Reasons for Interest in Renewable Energy Expressions of interest from their members – In most cases, this interest was based on expectations of lower rates Improving economics None of the Co-ops interviewed listed political or regulatory reasons for getting involved Some considered local economic development, but this was not a deciding factor in any case Early interest in wind, biomass and solar

8. Wind Energy Advantages and Disadvantages Advantages – hedge against high fuel or energy prices – positive community acceptance – effective operation – zero emissions – local economic development – available financial incentives – growing RPS and green power markets Disadvantages/Challenges – access to transmission – aesthetics – operational intermittency – higher than expected capital and O&M costs – lower than expected steam supply – geological instability – steep learning curve – all-requirements contracts

9. Geothermal Resources A couple of Co-ops were aware of geothermal resources in their region, but lacked clear definition of location and quality – The existence of a nearby project can lead to the assumption that a developable resource is available Maps were recognized as a valuable resource Also generally unaware of information describing resource economics Limited understanding of the technology used to determine resource potential or development steps General view was that geothermal projects are complex and have a history of problems

10. Co-op Experience with Geothermal Power Only one Co-op reported being approached by a geothermal project developer – conclusion is that electric cooperatives are not the prime target for developers seeking a power purchase agreement Co-ops are more likely to be contacted later on in the development process even if an interconnection agreement with a Co-op is required Co-ops need information to analyze and make decisions if opportunities are available At this time, little knowledge or experience is available in the Co-op community relative to geothermal power applications

11. Outreach Plan Address information needs: – resource potential – potential project locations – operations experience – costs Provide technical support through U.S DOE Grant Identify possible partnership opportunities