1. INVESTING FOR CLEAN ENERGY IN OREGON Renewable Energy Project Investments

2. Renewable Energy Project Investments
Topics 1. Aequitas 2. Investor Benefits 3. Tax Credits / Benefits 4. Capital Structure 5. Investment Considerations 6. Investment Options

3. Aequitas
Aequitas Capital Management: Who We Are Aequitas Capital Management, a diversified financial services firm, acquires and deploys capital in high potential and socially-responsible markets. Operating in Portland, Oregon, since 1993, Aequitas has structured and invested more than $1.5 billion in customized financial transactions. With broad capabilities and focused execution in such markets as energy, healthcare, manufacturing, distribution, not-for-profits, and professional services, Aequitas focuses much of their effort structuring and deploying capital for socially-responsible endeavors.

4. Renewable Energy Project Investments
Investor Benefits Significant tax credits and benefits available Federal production tax credits, monetized on an upfront basis, may approach up to 35% of the total capital cost of a project. (It may be difficult for individuals, S-Corps and closely-held corporations to effectively utilize.) Oregon State Business Energy Tax credits equal to 35% of the project’s eligible capital costs over five (5) years if used by project investor or 25.5% in an upfront payment to the project owner if sold to a non-project party Attractive risk-adjusted after-tax returns - may range from 10% to 15% after-tax IRR over 20 years on an un-levered basis. Socially-responsible investment opportunities

5. Energy Policy Act of 2005
Production Tax Credits Qualifying Facilities – wind farms, power plants fueled by biomass (new plants), geothermal energy, landfill gas or municipal solid waste, small turbines of less than 5MW in size that produce electricity in irrigation canals and new turbines installed at existing dams. Tax Credit Period – 10 years In-Service Date – by 12/31/07

6. Energy Policy Act of 2005
Production Tax Credits Tax Credit – wind and closed-loop biomass – currently 1.9 cents / kwh. All other projects cents / kwh. Adjusted annually for inflation. “Haircut” – production tax credits are subject to a “haircut” if the project benefited from government grants, tax-exempt financing, “subsidized energy financing” or other credits – e.g., Oregon Business Energy Tax Credit. Maximum “haircut” is 50%.

7. Energy Policy Act of 2005
Investment Tax Credits Solar - 30% Investment Tax Credit. Credit is for 30% of the cost of equipment used in a solar installation for equipment put into service in calendar years 2006 and Tax credit is claimed in the year that the project is put into service.

8. Other Tax Credits & Benefits
Other Tax Credits and Benefits Oregon Business Energy Tax Credit (“BETC”) % of eligible project capital costs Can be monetized for approximately 25.5% of project capital costs (with federal income tax implications) Accelerated depreciation benefits on some types of renewable projects – e.g., wind powered and Biomass-fueled plants. Green tags – currently $1.00 to $3.00 megawatt hour in Oregon on a wholesale basis

9. Capital Structure
Sources of Capital

10. $ $ $ $ $ Capital Structure Sponsor / Developer Equity Contribution
Agreement
Investor(s)
Tax Investor(s) $ $
Partnership or
LLC
Lender $
Project

11. Investment Considerations
Project Risks Technology – proven technology / equipment Completion – on time / on budget Revenue – sufficient to service debt / paid by a creditworthy offtaker ? Resource – sufficient / reliability of resource studies Operations – does the operator have sufficient competencies and incentives

12. Investment Considerations
Project Risks Site – necessary long-term property rights acquired Scheduling of intermittent resources – imbalance penalties Interconnection / curtailment Environmental issues Management – sufficient skills / experience

13. Investment Options
Investment Options Direct investment in partnership or LLC Through a targeted fund - Tax Credit / Tax Benefits Fund - Private Equity or Hedge Fund

14. Aequitas Contact Information
Robert Jesenik –
Tom Sidley –
David Shutte –
Charles Mautz –