Bob Cupit Manager, Energy Facility Permitting Minnesota Public Utilities Commission

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Minnesota PUC’s Wind Siting Authority Small projects (5-50 megawatts) – Require only a site permit – Must be completed within 6 months - typically 3 to 4 months – 2007 legislation allows local review up to 25 MW Large projects (>50 megawatts) – Require both a certificate of need and a site permit: separate processes that are undertaken in parallel and, to some extent, jointly – Must be completed in 12 months – typically 7months – Largest to date – 200 MW We have denied no permit applications

The Minnesota Siting Experience Has Been Positive, Enabled By: A state policy emphasis on aggressive wind development Since 1994, state mandates increasing wind capacity in utility portfolios State incentives for wind development Community Based Energy Development encouraging locally- owned wind projects that has improved public acceptance A societal and economic environment that recognizes renewable benefits Broad public support of wind as an alternative energy source

Other Factors: Economic benefits associated with rapid growth in ethanol production has enhanced willingness in rural areas to host other non-traditional economic opportunities. Our best wind resources are in a rural, agricultural area that is seeing significant economic benefits, both directly to landowners and local economies. on the eastern edge of the mid-continent Great Plains, with relatively flat terrain and sparse settlement. Initial development in an area with few conflicting resource development interests

Responding to Needs Regulatory treatment that has responded to needs With a 15 year history of wind project permitting, our siting standards and process have evolved, providing clearer guidance for permit applicants and smoother review procedures. As development moves into areas with more diverse and dense land use, we are seeing more resistance from adjacent landowners, though there are clearly still strong policy drivers that support continued development throughout the state. Evaluating whether certification of need continues to be appropriate for wind mandates Evaluating further efficiencies in site review process

Needs Going Forward Siting standards and procedures will need to continue to evolve. Recent legislation addresses balance of local and state siting jurisdiction by allowing counties to regulate wind developments under 25 megawatts Siting standards are being reviewed for use by both state and county permitting procedures. State and federal agencies with land and resource management interests need to continue to develop review and policy standards. Wind developers need to continue to improve appropriate best practices for working with communities. The significant potential for continued wind energy development justifies an emphasis on anticipating and assessing environmental impacts. Aggressive planning of efficient transmission capability is critical. Integration of long term wind development and transmission development is needed to guide expansion.

What About Transmission? Current Minnesota Initiatives – CapX2020 Projects – Mandated Renewable Energy Transmission Plan Interconnection Challenges – Midwest ISO Responses

CapX 2020 Transmission Projects CapX 2020 is a current effort by the state's largest transmission owners -- including cooperatives, municipals and investor-owned utilities -- to assess the system and projected growth in customer demand for electricity through Studies show that Minnesota's transmission backbone will require major upgrades and expansion to accommodate increased electricity use expected in the state and region through Project Group I Project Group I includes approximately 600 miles of 345- kilovolt lines, connecting Minnesota with North Dakota, South Dakota and Wisconsin and a smaller 230-kilovolt line in the Bemidji area. These projects are estimated to cost approximately $1.3 billion. Permitting underway – in service Project Group II – Around the Twin Cities Project Group III – Remote Generation Outlet

Mandated Renewable Energy Transmission Plan 2007 RES requires additional 7000 MW by 2025 Transmission Plan to meet RES filed Nov. 1, 2007 Multiple additional studies required Aggressive expansion anticipated Must be fully integrated with Midwest ISO planning

Interconnection Challenges Midwest ISO interconnection study queue is backed up 22,000 Minnesota MW in study queue 32% result in interconnection agreement Concerns by developers Concerns by Midwest Governors Midwest ISO working with stakeholders to fix