1. Event Location Event Date and Location

2. 2012 ADC WINTER FORUM | PAGE 2 Development Issues Energy Project Siting Considerations Tom Graves, Burns & McDonnell

3. 2012 ADC WINTER FORUM | PAGE 3 Traditional Generation Options Base Load  Nuclear  Coal Intermediate / Peak Load  Natural Gas Combined Cycle  Natural Gas / Oil Simple Cycle  Natural Gas / Diesel Reciprocating Engines

4. 2012 ADC WINTER FORUM | PAGE 4 Base Load Characteristics Nuclear  10+ year gestation period  High development cost $$$$$  Massive land (1,000+ acres) Coal  5-10 year gestation period  High development cost $$$$  Immense regulatory pressure  Significant land (500-1,000 acres)

5. 2012 ADC WINTER FORUM | PAGE 5 Intermediate / Peak Load Characteristics Combined Cycle  3-4 year gestation period  Moderate development cost $$  Moderate land (100 acres) Simple Cycle / Reciprocating Engines  2-3 year gestation period  Low development cost $  Minimal land (50 acres)

6. 2012 ADC WINTER FORUM | PAGE 6 Renewable Technology Options Abundant and viable  Biomass  Solar  Wind Limited capacity and/or technology  Geothermal  Landfill methane  Hydro  Others

7. 2012 ADC WINTER FORUM | PAGE 7 Wind Advantages  Small footprint  No emissions  Free fuel  Declining costs  Quick installation  Phased growth

8. 2012 ADC WINTER FORUM | PAGE 8 Wind Disadvantages  Doesn’t match load  Transmission  Intermittent resource  Size (40-60 acres / MW)  Environmental impacts  Birds  Noise  Visual

9. 2012 ADC WINTER FORUM | PAGE 9 Wind Resources

10. 2012 ADC WINTER FORUM | PAGE 10 Solar Advantages  No emissions  Free fuel  Matches load  Quick installation  Easily scalable  Low operational costs  Residential/Commercial  No noise

11. 2012 ADC WINTER FORUM | PAGE 11 Solar Disadvantages  Capital intensive  Transmission  Intermittent resource  Weather  Land requirements  Efficiency

12. 2012 ADC WINTER FORUM | PAGE 12 Solar Resources

13. 2012 ADC WINTER FORUM | PAGE 13 Biomass Advantages  Capacity Value  Easily retrofit  Easily scalable  Familiar operations

14. 2012 ADC WINTER FORUM | PAGE 14 Biomass Disadvantages  Emissions  Low heating value  Fuel storage  Cost  Significant off-site impacts

15. 2012 ADC WINTER FORUM | PAGE 15 Biomass Resources

16. 2012 ADC WINTER FORUM | PAGE 16 Which Option is Best?  Renewable development options are largely dependent upon regional resource availability factors  Traditional generating resources impose fewer restrictions

17. 2012 ADC WINTER FORUM | PAGE 17 Considerations for Realigned Bases  Physical space demands  Voltage control on distribution system  Potential need for flexible resources  Plant operation is foreign to bases  Security considerations  Potential flight approach path impacts  Potential LSE standby energy charges  Likely Notice of Availability requirements

18. 2012 ADC WINTER FORUM | PAGE 18 Considerations for Closed Bases  Interference with remediation programs  Energy development projects have long gestation periods  Public support often less durable  “Feed-in tariffs” can prop up public support  Nodal pricing changes as the base becomes a net energy exporter