1. Copyright © 2007 OSIsoft, Inc. All rights reserved. Managing Wind Power in Real Time Scotty Gilbert Director, Wind Asset Management PPM Energy

2. 2 Copyright © 2007 OSIsoft, Inc. All rights reserved. Agenda Overview of PPM Energy Business Drivers and Objectives at PPM Basic Technology Overview Business Value Achieved Questions

3. 3 Copyright © 2007 OSIsoft, Inc. All rights reserved. Who is PPM Energy? Competitive power and gas storage subsidiary of ScottishPower. Almost 450 employees in US and Canada, headquartered in Portland, Oregon with offices in Houston, Texas and Calgary, Alberta. The #2 provider of wind energy in the U.S. with control of ~1,900 MW of wind power. Recently Acquired By Iberdrola making us the largest provider of Wind in the World. More than 8,000 MW of wind in our development pipeline. Goal of more than 3,500 operating megawatts by 2010.

4. 4 Copyright © 2007 OSIsoft, Inc. All rights reserved. PPM Energy Assets Operating Assets-Owned 1,059 MW Operating Assets – PPA606 MW Operating Assets – BTS*100 MW 2007 Construction479 MW 2010 Goal3,500 MW * Build-to-sell Stateline 300 MW PPA Klondike 24 MW Owned High Winds 162 MW PPA Mountain View III 25 MW Owned Moraine 51 MW Owned SW Wyoming 144 MW PPA Colorado Green 81 MW Owned (162 MW Project) Klondike II 75 MW Owned Shiloh 150 MW Owned Maple Ridge 1 99 MW Owned (198 MW Project) Big Horn 200 MW Owned Leaning Juniper 100 MW BTS* West Region Mid- Continent Region Maple Ridge 1a 16.5 MW Owned (33 MW Project) Maple Ridge II 45.4 MW Owned (91 MW Project) Twin Buttes 75 MW Owned Northeast Region Klondike III 221 MW Owned Flying Cloud 44 MW Owned Trimont 100 MW Owned MinnDakota 150 MW Owned Elk River 150 MW Owned Casselman 35 MW Owned Updated May 8, 2007 Operating wind projects Wind projects under construction

5. 5 Copyright © 2007 OSIsoft, Inc. All rights reserved. Challenges Associated With Wind Intermittent Nature of Wind as a Fuel  Wind is considered “energy” not “capacity” Number of Units required to Monitor and Maintain  Many assets widely geographically distributed Non Standardization of Assets  Assets and technologies from various vendors Remote locations  Wind rich areas are usually remote Complexity of Power Markets  Wind can be “Merchant”  Certain RPS and PTC legislation impact markets

6. 6 Copyright © 2007 OSIsoft, Inc. All rights reserved. PPM Energy Business Drivers Improved Forecasting  Ability to more accurately forecast wind improves market performance Ability to monitor key performance indicators  Massive amounts of data distilled into impactful KPI for rapid understanding of asset performance Ability to quickly respond  Real time assessments improve market performance Ability to quickly identify Bad Data  Reducing business decision risks associated with poor information

7. 7 Copyright © 2007 OSIsoft, Inc. All rights reserved. What’s In Play at PPM PI Server Components:  PI Server  PI ACE – PI Client Applications:  PI Process Book  PI Datalink PI Interfaces:  Modbus  OPC  Loggernet  PI to PI

8. 8 Copyright © 2007 OSIsoft, Inc. All rights reserved. Basic Architecture Overview

9. 9 Copyright © 2007 OSIsoft, Inc. All rights reserved. Turbine Overview Screen

10. 10 Copyright © 2007 OSIsoft, Inc. All rights reserved. Control Room Screen

11. 11 Copyright © 2007 OSIsoft, Inc. All rights reserved. Daily Production Trends

12. 12 Copyright © 2007 OSIsoft, Inc. All rights reserved. Draft based on fabricated Data Availability Tracking

13. 13 Copyright © 2007 OSIsoft, Inc. All rights reserved. PPM Focus on Forecasting Daily and Hourly feed of Turbine level and Met Tower Data from Pi Historian to Forecasting Service. Daily 24 Hour Shaped Forecast Produced Based on Climatology and park information Rolling 6 Hour Forecast Based Mostly on Current Increase Accuracy can have a significant value in reducing exposure to the Market Imbalance

14. 14 Copyright © 2007 OSIsoft, Inc. All rights reserved. PPM Focus on Performance Monitoring Fuel Amount  Capacity Factor Conversion of Fuel  Availability/Power Curve Market exposure  Contract Market Execution  Daily Buying and Selling/forecasting

15. 15 Copyright © 2007 OSIsoft, Inc. All rights reserved. PPM Business Value Achieved Conversion of Reliability to Lost Energy  Supports O&M contractual obligations  Quantifies operational Data Valuation of Lost Output Converted based on Contract Terms  Supports prioritization Isolation of Market Exposure  Provides an ability to minimize risk of price uncertainty and volatility

16. 16 Copyright © 2007 OSIsoft, Inc. All rights reserved. PPM Business Value Achieved Improvement in key indicators Better Understanding of Market Better Data For Historical Analysis Ability to Value performance in terms of MHh and Dollars Quicker response times to critical issues

17. Copyright © 2007 OSIsoft, Inc. All rights reserved. S cotty Gilbert Director, Wind Asset Management (503) 796-7007 office (503) 475-1275 cell Scotty.Gilbert@ppmenergy.com