1. Berkshire Wind: Joint Action By Communities with Common Goals Presented by: David Tuohey, Director of Communications & External Affairs Massachusetts Municipal Wholesale Electric Company (MMWEC) Clean Energy Connections Conference November 2, 2011Springfield, MA

2. Berkshire Wind Power Cooperative Key Points Proof of the benefits of public power Joint Action No Renewable Portfolio Standard mandate for municipal utilities Customer and municipal utility desire for renewable energy Commitment to complete project

3. Berkshire Wind Power Cooperative Corporation

4. Cooperative Members 14 Massachusetts Municipal Light Departments Ashburnham Municipal Light Plant, Boylston Municipal Light Department, Groton Electric Light Department, Holden Municipal Light Department, Hull Municipal Light Plant, Ipswich Municipal Light Department, Marblehead Municipal Light Department, Paxton Municipal Light Department, Peabody Municipal Light Plant, Shrewsbury Electric and Cable Operations, Sterling Municipal Light Department, Templeton Municipal Light and Water Plant, Wakefield Municipal Gas and Light Department, West Boylston Municipal Light Plant Massachusetts Municipal Wholesale Electric Company (MMWEC) –Non-profit, public corporation; MA political subdivision –Created through state legislation in 1976 –Joint Action Agency for MA municipal utilities

5. The Cooperative Structure Berkshire Wind Power Cooperative Corporation (Cooperative) was established to acquire, construct, finance and operate the Berkshire Wind Power Project (Project), a 15 MW wind farm in Western Massachusetts. The Cooperative is authorized to sell and resell energy or energy related services to wholesale customers. The Cooperative is comprised of 15 non-profit public power entities, including the Massachusetts Municipal Wholesale Electric Company (MMWEC) and 14 of MMWEC’s consumer-owned member Municipal Light Departments. It is managed by a Board of Directors comprised of 1 member from MMWEC and 4 members from the participating light departments.

6. The formation of a Cooperative as a vehicle to own the Project streamlines financing and development activities The Cooperative is non-profit and qualifies for tax-exempt financing Under various agreements, MMWEC provides the Cooperative with development, financing, construction, operation and other services Each of the Municipal Light Departments receives a share of the Project’s output and capability via Power Purchase Agreements (PPAs) with MMWEC Each Light Department is responsible for paying its share of the 20- year, $64.7 million in bonds issued to finance the project The Cooperative Structure

7. Project Entitlements

8. Project Background

9. 1998: Development started @ 1998 by private developer DisGen 2002: MMWEC involvement starts with contract discussions 2004: MMWEC enters into contract for project output 2008: Berkshire Cooperative formed; purchases project assets 2009: Construction starts in June; suspended in October 2010: Construction restarted in October 2011: Commercial operation

10. Purchased Assets The Berkshire Wind Power Project assets were purchased by the Berkshire Wind Power Cooperative Corporation in June 2008 The assets included: –Meteorological Tower with Wind Data –Three 30-year easements for at least ten wind turbine sites –Site surveying and a site plan –An access road to the wind turbine sites –Ten wind turbine sites in various stages of development –Geotechnical Studies –Federal, State and Local Permits –Electrical Interconnection Studies –An interconnection agreement with WMECO

11. Project Benefits Energy - The Project will generate enough electricity for about 6,000 homes and diversify municipal utility energy resources, reducing reliance on fossil fuels to produce electricity, which helps stabilize energy costs by limiting exposure to volatile spikes in the price of oil and natural gas. Environmental - Renewable energy resources are at the core of state and national initiatives to reduce carbon dioxide and greenhouse gas emissions. The Project will offset the production of nearly 612,000 metric tons of carbon dioxide and the use of 1.71 million barrels of oil. Economic - “Green” jobs such as those created by the Project are a key part of state and federal economic recovery programs. Construction of the Project created the equivalent of approximately 50 full-time jobs.

12. Project Description

13. Attributes Location – On the ridgeline of Brodie Mountain in Hancock, MA one of the Commonwealth’s best inland wind power sites Wind Turbines – 10 General Electric Model 1.5 MW sle wind turbines with 80-meter tower height and 77 meter blade diameter Proven Technology – More than 8,500 of these turbines in operation in 19 countries Construction Expertise - General contractor Reed & Reed erected more than 100 wind turbines, many on mountainous terrain Excellent Wind Resource – Brodie Mountain is about 2,500 feet above sea level. The average wind speed is over 8.0 meters per second, an AWEA Class 6 wind resource on a scale of 1 to 7 Capacity Factor: 40%

14. Financing Project assets purchased by the Cooperative in 2008 for $4 million Obtained $8 million loan from People’s Bank of Holyoke, MA Obtained $52.5 million short-term financing with Dexia to purchase 10 wind turbines and begin construction (July 2009) Received private letter ruling from the IRS affirming that sale of Project’s Renewable Energy Credits (RECs) does not constitute private use, clearing the final hurdle to tax-exempt financing of the Project (June 2010) Issue $64.7 million long-term tax-exempt financing (December 2010)

15. Extraordinary Commitment www.berkshirewindcoop.org

16. Questions?Questions?