1. National Rural Electric Cooperative Association (NRECA) Electric Cooperatives Over 900 co-ops 42 million in 47 states 75 percent of land area 83 percent of counties fully or partially served 42 percent of nations distribution lines 7 customers/line mile 50% Suburban and 25% micro urban Largest aggregation of coal power plants

2. G&T Cooperative Service Area - 2006 Associated Basin San Miguel Southern Montana

3. G&T Cooperatives The Largest Domestic Coal Based System

4. 27 Co-op Coal Projects MW On-line (1; 200 MW) Under Construction (6; 830 MW) Planned (15; 5,879 MW) Exploratory (5; 2,450 MW) KEPCO Iatan E TX Plum Point Project Status (# plants; MW) New Capacity of 9,360 MW over 10 years Year Expected On-Line

5. Co-op Principal Mission Keeping electricity reliable and the rates affordable

6. Co-op Business Realities Innovationa result of unique circumstances Small utilities with limited staffs Sparse service territories Not for profit Consumer-owned & consumer-governed Overwhelmingly residential and farms Profound impact of 1978 Federal Fuel Use Act Household incomes below national average Federally set construction standards, technical specifications, augmented by industry best practices

7. NRECA Cooperative Research Network (CRN) Demonstration Projects Goal of NRECA CRN reliable electric service at an affordable cost

8. Co-ops and Smart Grid Investment Grants More than 50 Electric Cooperatives and Public Power Districts in 16 States Awarded Over $215M AR, AZ, FL, GA, KS, KY, MS, NE, NH, OR, PA, SD,TX, VA, VT,WY

9. CRN-Coordinated NRECA/DOE Smart Grid Demonstration Grant 22 co-ops in 10 states$68M project Selected by DOE for $34M grant Install and study range of technologies Project team includes: –SAIC, Cigital –Power Systems Engineering, ICF –Pacific Northwest National Laboratory –EPRI and Industry

11. NRECA Energy Storage Demo Project Why the choice of the Premium Power Corporation Zinc Bromide Battery? Lifetime of more than 10,000 cycles of deep charge and discharge Lowest cost battery of all the advanced options based on CRN due diligence report Potentially very low environmental impacts PPC ZnBr is UL, FCC, and NFPA certified PPC has recently completed the production of its first TransFlow 2050-5 (500 kW, 2.8 MWh, 5.6 hours) PPC has production capacity to meet the needs of the participating co-ops in this proposal. The PPC ZnBr batteries are made in the U.S. PPC is well capitalized. PPC ZnBr has the potential for fast frequency regulation and nearly unlimited cycle life.

12. ZnBr Battery Attributes Premium Power Corporation & ZBB AttributeRating 1.Capital costExcellent - $250/kW-hr 3. Round trip efficiencyFair–70% to 75% 4. Lifetime in Cycle LifeExcellent (>>10,000 cycles) 5. MaintenanceGood-pumps Has an on-line monitoring system 6. Minimal EH&S issuesExcellent 2. Volumetric Energy Density (Wh/l) Excellent (250 to 350) 7. Energy density (Wh/kg) Fair (75 to 85) 8. RiskGood TF-2050 is being built and shipped

13. Premium Power Corporation TransFlow 2050-7 Zinc Bromide battery on a trailer 500 kW, 7.4 hours and 3.8 MW-Hr & $1.055 million

14. NRECA Energy Storage Demo Project Planned Installation Sequence First-Kotzebue Electric Association, Alaska 0.5 MW / 7.4 hours/3.7 MWh to time shift wind and provide frequency regulation Second-Kauai Island Utility Cooperative, Kauai PMRF, 1.0 MW /7.4 hours/7.4 MWh to time shift solar, provide frequency regulation, and for backup power to PMRF during islanding Possibly-Seminole Electric Cooperative, Inc., Florida1.0 MW / 5.6 hours/5.6 MWh to time shift solar.

15. Biomass Co-Firing with Coal Technical and Economic aspects of Biomass Cofiring and Supply with an Assessment of All G&T fossil plants

16. Identification with Alliance with INL the Utilization of CO2 from Fossil by Conversion to Syngas, Liquid Fuels, and/or Chemical with High Temperature Co-Electrolysis High Temperature Co- Electrolysis (HTCE) Generates Green H2, O2, CO –Efficient Operations @ Temperatures > 600 °C –Power to Operate from Nuclear/Renewable Energy Sources HTCE Minimizes Carbon Emissions: –Manages carbon emissions through conversion to liquid fuels –Starting point for commercial synthetic chemical products Operation: HT Steam & CO2 Recycled CO2 from combustion process O2 produced at Electrode 1 (with use for IGCC or OxyCombustion) H2 & CO (Syngas) produced at Electrode 2 for conversion to liquid fuel and/or chemicals

17. Completed Short-Term Solutions to Transmission Congestion Priority of Fixing Transmission Congestion: Implement transmission optimization software in operational planning Examine and implement dynamic rating of lines Improve EMS (or install EMS if not in place) Install Advanced Conductors and upgrade transformers Install distributed dynamic flow control devices Install FACTS devices

18. Impact Comparison of OH vs UG Lines Visibility Environmental –Wetlands, water, threatened and endangered species habitat, cultural resources Land use –Agriculture, airports, roads EMF

19. Economic Analysis of Overhead and Underground Transmission Lines Using the Tangible and Intangible Cost Components Used to support decisions to build overhead (OH) transmission lines versus underground (UG) transmissions lines Detailed manual of design, construction, and operation of OH versus UG lines Spreadsheet with detailed economic evaluation of overhead and underground transmission lines including tangible and intangible cost components

20. CRN Project to Evaluate Real Time Reliability (Optimization) Software with HOST EKPC After Optimization Before Optimization Improves reliability and increases available transfer capacity (by 2 X or 3 X) by applying a minimum number of mitigation measures based on a user- defined priority schedule which may include: MW Dispatch MVAr Dispatch Capacitor and Reactor Switching Transformer Tap Change Line Switching (In and Out) Optimal Capacitor, Reactor, or FACTS Placement and size Phase Shifter settings Load Curtailment Defined Operating Procedures Switching Not Affected Lines

21. Using Optimization Software with 3D GUI to Increase the Size of the Operating Region in an Operating Environment at EKPC results prior to using Optimization results after using Optimizationn (ATC increased from 1400 MW to 3400 MW)

22. CRN Project to Evaluate Voltage Stabilizing Technologies at Tri-State and Basin Electric Provided Evaluation of Existing Options for Voltage mitigation and Stabilization (Capacitors, SVCs, FACTs devices) Provide Evaluation of Future Options for Voltage Stabilization (SuperVAR, CNT, TACC, etc.) Used Ultra Fast Transmission System Optimization Software To Determine the Optimum Option for Voltage Stabilization for long distance transport of power to TriState G&T FACTS device (AEP UPFC) SuperVAR-High Temperature Super Conducting Synchronous Condenser

23. Completing and Commercializing Smart Wires Power Flow Control Device Defer building of new lines Massive redundancy Zero footprint solution Mass produced modules Easy and rapid installation Control power flow along contract path Maintenance with existing workforce Reduced time to deploy and overall cost Zenergy Power is Commercializing a Smart Wire Distributed Series Reactor (DSR) licensed by GATECH NEETRAC to be clamped onto a transmission line to accomplish:

25. Renewable and Distributed Energy (RDE) Research focus area launched in 2009 CRN has strong history in fuel cells, microturbines, wind power, etc

26. Renewable Power Technology Guide One-stop resource for utility-focused information Important questions to ask Cost-benefit calculator

27. Renewable Energy and DG (REDG) Renewable Energy Assessment Guide

28. Distributed Generation Resource Guide Guide to DG technologies Policy issues, interconnection, technical standards

29. Biopower Toolkit: Analyze Economics Calculate feasibility of biopower projects Fact sheets Project proposal guide

30. RDE Animal Waste to Power (estimate of power potential and impact)

31. Plug-In Hybrid Vehicles Converting four co- op owned hybrids and test as co-op fleet vehicles in OR, GA, MO and ND Collaboration through CEATI with Manitoba Hydro