0 Greg Wagoner Manager, Power Supply Wabash Valley Power Association June 6, 2006 Methane Recovery Workshop

“Working with the Electric Utility”

2 Discussion Points Overview of Wabash Valley and Programs Interconnection Process & Agreements Power Purchase Agreements Recommendations Questions

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4 Wabash Valley Program Distributed Generation Policy Behind the Meter Generation 10 MW or less Support Digester, Wind, Solar, Landfill, etc.

5 Landfill Power Plants WVPA owns seven landfill gas generating facilities throughout Indiana Total of 22 MW

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10 Additional Resources Adding two landfill sites – 6.4 MW Commercial within 12 to 18 months Final stages of entering into PPA for 8.4 MW wind power Commercial Q or Q1 2007

11 Interconnection Process Identify local configuration Local capabilities Feasibility studies Interconnection Agreement Local distribution/transmission provider Safety, metering, liability, etc.

12  69 KV Transmission Line  6.9 kv / 12kv Sub  M1  M2 GenGen  M1  M2  Loa d GenGen  CASE #2  CASE #1  CKT. #3 (Load)  CKT. #2 (Load)  CKT. #1 (Load)  M1  M2 GenGen  CASE #3

13 Power Purchase Agreement Establishes Terms & Conditions Wabash Valley Power Rates, Contract Term, etc. Net Billing “not” Net Metering Utility buys 100% of output Retail Displacement Local Facilities Back-up

14 Recommendations Hire an “experienced” developer/contractor Contact local utility early in process Understand the issues Risks Production capabilities Prioritize your goals Lower electricity costs Environmental objectives Reliability

15 Questions?