BIOMASS POWER PLANT

Jo-Carroll Energy, Inc. (NFP)

MISSION STATEMENT

“JO-CARROLL ENERGY EXISTS TO ENHANCE THE QUALITY OF LIFE

FOR OUR MEMBERS”

JO-CARROLL ENERGY, INC. (NFP)

• Electric, natural gas and broadband distribution cooperative

• Prides itself on maintaining a strong, strategic connection to the future

• Insure intimate relationship with its members• Willing to study any and all opportunities that

might reasonably enhance the quality of life of its members

JO-CARROLL ENERGY, INC. (NFP)

• Founded in 1939 with 60 members• 26,000 electric and natural gas accounts• 72 employees—100 megawatt electric load• Has installed communications backbone to

support SCADA (Supervisory Control and Data Acquisition System) and AMI initiatives

• Organized Sand Prairie Wireless utilizing communications backbone to bring internet access to all within service territory as well as others—all members of the cooperative

JO-CARROLL ENERGY, INC. (NFP)

• Employs an exceptionally well-educated and appropriately experienced staff

• Requires forward-looking and somewhat adventurous attitude

• Very inclined to accepting and managing risk• Board of Directors that maintains a long term

perspective in oversight and direction of the company

BIOMASS POWER PLANT

• 80 MEGAWATT plant• Evolved from the need for cost effective

power for members for years to come• Huge undertaking for a small cooperative• Project has progressed as planned and is on

time per original projections• Not without continued risk

BIOMASS POWER PLANT

• Still awaiting Illinois EPA Air Permit• Still in search of financing partner• Huge undertaking for a small cooperative• Project has progressed as planned and is on

time per original projections• Not without continued risk• Will assist in keeping costs of power down

BIOMASS POWER PLANT

• Studies showed that the best way to mitigate potential long term rate volatility was to construct a biomass generation facility

• Also considering an optional natural gas peaking unit of up to 22 megawatts for possible blackstart and peaking needs

• Support of staff and Board of Directors for project led to hiring of consultants, etc.

KEY REASONS FOR PLANT

• Cost effective* coal fired generation is near impossible* lower capital cost than other options

• Environmentally significant and friendly* Clean wood is carbon neutral fuel* Additional emissions are minimal* Strong local support for biomass generation

KEY REASONS FOR PLANT

• Economic Development* 250-300 construction jobs created over three

year period* 36 permanent workers* managed timber, switch grass, corn stover harvests

creates multiple jobs

• Regulatory requirements* State and federal requirements for renewable energy

generation* Greenhouse gas standards require diversity

Construction and Operations

• 60 acre construction site• 2 miles north of Thomson on Highway 84• Additional option for 100 acres adjoining• Adjoins Danisco plant which will purchase

steam from the facility• Upgrade of access road to 80,000 pound road

as well as turn lanes on Highway 84 will lead to initial construction jobs

Construction and Operations

• Permits, etc. required and completed:

* Threatened and Endangered Species Survey* Wetland Delineation* Archeological Study* Hydrology Study* Local Wood Study

Construction and Operations

• Still need to be done:* Midwest Independent Transmission

Operator (MISO) Project documentation* National Pollution Discharge Elimination

System (NPDES) study

• Completing work on infrastructure plan and deliverability issues

FINANCIAL ISSUES

• Current project construction cost-- $290,150,000• Construction to begin in 2011• Startup target for late 2013 or early 2014• Tax credits/grants are available to partner as

Jo-Carroll Energy is a not-for-profit, tax exempt corporation

REMAINING CRITICAL RISKS

• Air Permit approval is by no means assured• Jo-Carroll Energy cannot finance project alone• Ongoing confusion with federal and state

regulatory agencies• Serious harm done by recent USEPA “tailoring

rule” publication• Lack of finality of energy policy, “cap and

trade” legislation

ADDITIONAL OPTIONS

• Construct 40 Megawatt plant instead• Proceed with natural gas peaker generation

unit alone• Other possibilities as the governmental

agencies adjust approach or legislative proposals and ideas change

• Other economic development projects arise as we always remain flexible

•QUESTIONS?