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    FORUMS

    REPORT

    NEW ENGLAND TABLELANDS

    COMMUNITY WIND FARM STUDY

    MAY 2011

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    FORUMS REPORT

    TABLEOF CONTENTS

    Armidale Community Forum....................... ................. .................. .................. ................. .................. ................. ......... .... 5Benefits................................. ................... .................. .................. ................... .................. ................... .................. ................... .................. ............ ...... ..... ... 5

    Challenges & Risks......................... .................. ................... .................. ................... .................. .................. ................... .................. ................. ...... ..... . 7

    Key Principles.................. ................... .................. ................... .................. ................... .................. .................. ................... .................. ............... ...... .... 10

    Next Steps........................ .................. ................... .................. ................... .................. ................... .................. .................. ................... ................ ..... ..... 11

    Uralla Community Forum........................ ................. .................. ................. .................. ................. .................. ....... ...... .... 13Benefits................................. ................... .................. .................. ................... .................. ................... .................. ................... .................. .................. ...... 13

    Challenges & Risks......................... .................. ................... .................. ................... .................. .................. ................... .................. ............ ..... ...... ... 14

    Key Principles.................. ................... .................. ................... .................. ................... .................. .................. ................... .................. ............... ...... .... 15

    Priority Next Steps......................... .................. ................... .................. ................... .................. .................. ................... .................. ................... ......... 16

    Kyabra Landholder Forum....................... ................. .................. ................. .................. ................. .................. ........ ..... .. 18Benefits................................. ................... .................. .................. ................... .................. ................... .................. ................... .................. .................. ...... 18

    Challenges & Risks......................... .................. ................... .................. ................... .................. .................. ................... .................. ............ ..... ...... ... 18Key Principles.................. ................... .................. ................... .................. ................... .................. .................. ................... .................. ............... ...... .... 19

    Priority Next Steps......................... .................. ................... .................. ................... .................. .................. ................... .................. ................... ......... 19

    Walcha Community Forum......................... ................. .................. ................. .................. ................. ................. ..... ...... . 21Benefits................................. ................... .................. .................. ................... .................. ................... .................. ................... .................. .................. ...... 21

    Challenges & Risks......................... .................. ................... .................. ................... .................. .................. ................... .................. ............ ..... ...... ... 21

    Key Principles.................. ................... .................. ................... .................. ................... .................. .................. ................... .................. ............... ...... .... 22

    Priority Next Steps......................... .................. ................... .................. ................... .................. .................. ................... .................. ................... ......... 22

    Investor Forum....................... .................. ................. .................. ................. .................. ................. .................. ............... ...... ... 24Benefits................................. ................... .................. .................. ................... .................. ................... .................. ................... .................. .................. ...... 24

    Challenges & Risks......................... .................. ................... .................. ................... .................. .................. ................... .................. ............ ..... ...... ... 25

    Key Principles.................. ................... .................. ................... .................. ................... .................. .................. ................... .................. ............... ...... .... 26Priority Next Steps......................... .................. ................... .................. ................... .................. .................. ................... .................. ................... ......... 27

    Glen Innes Community Forum....................... ................. .................. ................. .................. ................. .................. ....... 28Benefits................................. ................... .................. .................. ................... .................. ................... .................. ................... .................. .................. ...... 28

    Challenges & Risks......................... .................. ................... .................. ................... .................. .................. ................... .................. ............ ..... ...... ... 29

    Key Principles.................. ................... .................. ................... .................. ................... .................. .................. ................... .................. ............... ...... .... 30

    Priority Next Steps......................... .................. ................... .................. ................... .................. .................. ................... .................. ................... ......... 30

    Other Comments (Anonymous)................. ................... .................. ................... .................. .................. ................... .................. ................... .... 31

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    FORUMS REPORT

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    GOVERNANCE MODEL OPTIONS ANALYSIS

    ARMIDALE COMMUNITY FORUM

    BENEFITS

    Empowerment, Local autonomy, independence:

    Possibility of greater responsibility for demand reduction/management

    Empowerment

    Encourage further action

    Energy independence

    Involvement encourages interest, disperses knowledge and a feeling of

    were doing something about a need that is essential that we meet. Setting up distribution network so shareholders and community can buy

    electricity directly rather than selling to a third party.

    Community develops understanding of

    Electricity system

    Real costs/impacts/benefits

    How to do big business initiatives as a community and ideas for doing

    better in future

    Community controls policy

    Owners are us! So more accessible Empowerment

    High visibility: proving that people can make the changes they want to see

    themselves, rather than relying on the government

    Community building & linkage

    Give a strong sense of community to our region

    Community and individual awareness

    Secure future supply

    Future proof against global interests

    Profits returned to community

    Control over energy production

    Locally owned (not multinational & for export)

    Locally produced energy directly benefitting community

    Ownership and responsibility for sustainable future response to clean

    energy production and reduce our waste.

    Transparency

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    Financial/Economic Benefits:

    Employment

    Revenues are kept within

    Employment local jobs

    Potential for revenue to be returned to the community

    Whole new industry for region

    Jobs

    Tourism

    Economic - return on investment

    A welcome source of income for farmers (rental of land for turbines)

    Clean Energy ~ Not polluting, not coal:

    Positive & clean

    Clean energy

    Clean

    Decreased need for coal (stop a few mines happening?)

    Contribution to clean energy

    Reduce possibility of further environmental degradation such as coal seam

    drilling

    Educational Benefits:

    Community education/learning

    spin-off experience from other projects

    Opportunity to document process and establish a model that can be sold

    on to others (i.e. use it for capital gain both financially and socially)

    Education

    Setting example

    Community education

    Visual Benefits

    Fits the landscape

    Identity to community & aesthetic appeal

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    GOVERNANCE MODEL OPTIONS ANALYSIS

    Technical Benefits

    Localised power for total energy independence ultimately using biogas,

    co-generation wind mix. Result: no expensive cable connections to the

    biggest power user, the grid. Local energy with minimal power lines minimises the line losses of about

    50% of coal-fired generation

    Miscellaneous Issues:

    Medaway Industrial Park Uralla has grid connections already established

    Link it with solar and Uralla becomes energy independent

    Recycling hydro dam generation as proposed by Zinhi Buzo for the Styx

    River would provide base load

    CHALLENGES& RISKS

    Siting & Environmental Challenges:

    Finding suitable site

    Environmental challenge

    Placement disputes, long term

    What is proposed method for identifying potential sites for turbines, andwhat incentives are there for landholders - equity, site rental?

    Being muscled out of the most suitable sites by the big corporations

    Where to put it

    Complaints about land vandalism caused by wind farms

    Location is paramount: not too close to residents, 35db at base of turbine is

    not where most noise is problematic.

    Away from wildlife corridors

    Public opposition/compensation will be a challenge re: noise, site, impact

    on quality of life for some Potential adverse impact on biodiversity (esp. birds) and scenic impact

    (huge size)

    Resources required to construct (how big a hole in the ground to mine the

    metal?)

    Noise infrasound & natural habitat destruction

    Environmental impacts: flora and fauna, threatened species and

    ecological communities

    Specifically habitat removal, collision mortalities (birds and bats)

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    Its about appropriate siting

    Impacts of intense storm events

    Key principle: Priority given to sensitive turbine locations

    dealing with myths e.g. noise effects on health Idea: Look into crown land close to town e.g. town reserves lookouts etc.

    Funding Challenges:

    Keeping the fundraising impetus long enough to achieve the goal

    Raising the capital how many people contributing how much?

    Cost

    Getting investors

    Raising enough money

    Competition from large investors

    Funding

    Raising funds to purchase land

    Getting the right price for sale for investors to invest

    Raising the money,

    Tax implications of being an energy producer

    Cost

    Governance/Organisational Structure Challenges:

    Financial responsibility

    Ownership structure

    Governance issues

    Developing an equitable investment model and company structure

    Corporate governance

    Lack of expertise (initially)

    Management maintenance

    Community division e.g about a particular site/location has to be dealt

    with and survived by people managing the windfarm organisation, not justby the authority determining whether to approve it

    To work out organisational structure

    Lack of expertise

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    GOVERNANCE MODEL OPTIONS ANALYSIS

    Red Tape & Government Regulation Challenges:

    Changes in government policy in regard to cost of carbon

    Government red tape

    Local government development guidelines will they be accommodating? Government input into carbon pricing

    Getting governments to commit

    Technical Challenges:

    Technical challenges

    Grid connection power wasted when grid goes down (same as solar),

    need power companies on board

    Other Challenges:

    Division of communities

    Takeover by state for later privatisation for profit or loss-offsetting, once

    proven successful

    Permission from Transgrid and local power companies

    Time

    Need to have education from people who have lived near windfarms

    they can and do cause major impact on many peoples quality of life

    (through infra sound etc)

    20 year lifespan oil needed to replace them?

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    KEYPRINCIPLES

    Community consultation to develop blueprint

    Preferential local use/consumption/self sufficiency

    Local decision making

    Role of community organisations

    Mutual structure/cooperative: one person, one vote

    Management of influence Energy justice

    Local jobs

    Viable business model

    Security of advance deposits

    Source of funds/who can invest?

    Maximum investment?

    Tax exempt

    Trading ability

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    GOVERNANCE MODEL OPTIONS ANALYSIS

    Part of an overall energy plan

    Possible staged development

    Transparency/accountability

    Viability all fronts Triple bottom line

    NEXTSTEPS

    Options paper for comment & critique

    Legal governance framework

    Investment model

    Inform public education campaign Locations/sites based on research

    Formal approaches to Councils get some champions

    Experienced others to talk to community.

    Get Tony Windsor and Richard Torbay involved

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    GOVERNANCE MODEL OPTIONS ANALYSIS

    URALLA COMMUNITY FORUM

    BENEFITS

    Empowerment. Local autonomy, Independence:

    Move towards self-sufficiency

    Innovation generally

    Starting early just after the first community wind farm in Australia is nearly

    established.

    Local power production

    Local control of energy production

    Community satisfaction from ownership/involvement Community power and leadership

    Independence from broader, non-sustainable political decision makers

    Opportunity for the community to have a direct financial input into

    environmentally beneficial community based programs

    Community input into siting/location of turbines

    Financial & Economic:

    Security of affordable supply

    Hopefully cheaper, sustainable power

    Clean Energy, not polluting, not coal:

    Clean energy

    Brilliant renewable energy all for it

    Anything that helps the environment is good

    Lessen reliance on fossil fuel in our community

    Reduction of coal-fired power stations

    Reduction of greenhouse gases

    Obvious benefits to environment

    Covering your own footprint

    Visual Benefits

    They look great

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    Miscellaneous Issues:

    How long is it before the embodied cost of setting up wind farm is

    recouped?

    Locating 6 turbines, easier than 100s Opportunity for best practice looking at the whole sustainability picture

    CHALLENGES& RISKS

    Siting & Environmental Challenges:

    Dangers to birds high lagoons, migrating birds

    Infra sound

    Potential negative impact on fauna species & vegetation clearing, road

    construction, power lines (?underground) to turbines.

    Clearing trees

    Noise complaints

    Ugly to look at

    High voltage power lines

    Site security (staking claim)

    Find a good site Land owners acceptance

    Wind fluctuates

    Funding Challenges:

    Ability to compete with commercial companies - $10 25billion

    investments

    Getting the $$$

    Governance/Organisational Structure Challenges: Rules of investment in co-ops

    Red Tape/Government Regulation Challenges:

    Government policy shifts

    Technical Challenges:

    Direct supply of electricity to members

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    GOVERNANCE MODEL OPTIONS ANALYSIS

    Other Challenges:

    Too small to make a difference?

    Community anxiety (personal and property damage)

    Create division in the community Comparing wind with alternative energy sources for: cost, embedded

    energy, other challenges and risks

    From Suggestion Box:

    Lets look at setting up a monitoring study to investigate before & after (if

    any!) impacts on fauna. Opportunity for our UNE partner. Could feed into

    body of science and perhaps alleviate concerns in other communities.

    Some thought given to establishing an independent local distribution grid

    maybe using some % of the community return of investment.

    KEYPRINCIPLES

    Accessing information from Hepburn and others

    Membership structure is clear and doesnt change

    Triple Quadruple bottom line: economic, social, environmental, governance

    Getting the right site:

    Close to grid Good wind

    Already cleared

    Away from houses

    Not in bird path

    Community support

    Access (all weather)

    Ethical

    Environmental

    Local ownership proportion to be set Financing

    Returns to investors plus returns to the is return comparable?

    Two thirds investors, one third borrowing

    Local investors (individuals) treated same as other investors

    Pay for self and renewal

    Sourcing of materials/practical

    Certainty of wind for investors

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    PRIORITYNEXTSTEPS

    Timeline and projections (to include sell/share knowledge)

    Costings for different sizes Clarifying

    Staging of investments

    Consider piggybacking on a commercial wind farm

    Accessing seed funding (use for further investigation)

    Identify people with money

    Measuring wind

    Identify & investigate sites

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    FORUMS REPORT

    KYABRA LANDHOLDER FORUM

    BENEFITS

    Clean power, local power

    Benefits cleaner air

    Money focussed back into our own community, rather than going out in

    many directions, in super funds

    Local (independent) energy generation

    People coming together with a common cause, bringing back community

    social benefits Community taking responsibility for their energy needs in a sustainable way

    CHALLENGES& RISKS

    Getting agreement as to type of ownership

    Get lost in a forest of turbines

    Farmers would want assurity that the site is accessible to the right people.

    Needs to be mindful of the farmers point of view erosion if road for

    instance

    Community perceptions re: amenity/noise issues

    Challenges to get enough money to invest

    New super fund?

    Able to pull out

    Electricity prices, how secure long-term financial return

    $$

    Government policy especially renewables

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    GOVERNANCE MODEL OPTIONS ANALYSIS

    KEYPRINCIPLES

    Transparency

    Keep it Simple!

    Good board and management

    Spread benefits and risks widely

    Local investors only e.g. Community Mutual - local $, stay local

    Set a percentage for local funding

    Return of 10% to 12% (cf. stock market 6% to 12%)

    Set a percentage of profit for community purposes

    Voting control

    Keep governance local Learn from local government investments (Fanny May etc)

    Low minimum investment per person, say $500.

    Insure risks (e.g damage to sites for roads etc)

    Bring community together

    PRIORITYNEXTSTEPS

    Clear business model, including turbines financial return

    A documentary to promote and educate include interviews with peoplefrom Hepburn

    Consult on possibilities of a new super fund getting pro-bono advice from

    e.g. Price Waterhouse, KPMG, Ernst & Young etc.

    Measure the wind

    Positive promotion, particularly directed to ordinary people, especially

    urban.

    What about Bendemeer? We are on the border of any Government project

    or such. Why not hold a forum in Bendemeer?

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    GOVERNANCE MODEL OPTIONS ANALYSIS

    WALCHA COMMUNITY FORUM

    BENEFITS

    Community ownership

    A cooperative scheme would mean the community/investors would feel

    they had a degree of control over their investment (as opposed to, say, a

    government owned scheme or large commercial operator.

    Community ownership

    Shifting the energy debate from government to taking the lead from the

    people people power. Direct sale/use of electricity (e.g. Council, hospital)

    Support and cooperation from local Council

    Jobs for local residents

    Potential to partner with UNE for research projects extend business

    Keep profits local diversify income, ownership

    Wind is free, clean and never-ending

    Carbon trading benefits

    CHALLENGES& RISKS

    Complaints from nearby residents who are not benefitting financially

    A small community may divide fairly strongly for and against wind farms

    Visual and other effects on rural landscape

    Community acceptance of wind energy

    Pressure to succeed is higher i.e. other commercially-owned companies

    may be able to spread cost of low wind times over numerous regions

    Getting the message out competing with commercials Responsibility maintenance

    Liability

    Working out the details

    Technical challenges greater for community than commercial

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    FORUMS REPORT

    KEYPRINCIPLES

    To benefit all community, the benefits need to go back via Councils or

    other broader, rather than just the shareholders

    Legally incorporated in unlisted public company

    Direct benefits in ? lower electricity costs

    Research and learn from other projects (e.g. Hepburn)

    Council involvement (they have prior history of energy supply)

    Locate close to grid & not near homes

    Open processes

    Structure: public company, transparent

    Take advantage of e.g. carbon trading A way to sell/interest people in project

    Work out key objectives e.g. carbon/sustainability/local enterprise

    Majority control to be local, set a %

    Genuinely hearing and responding to peoples concerns

    Building knowledge in the community, starting small.

    PRIORITYNEXTSTEPS

    Wheres the wind? Business plan

    Establish financial returns for landholders and investors

    Reach as many people as possible more publicity, including benefits and

    risks an open process

    Consider smaller project, to start

    Get direct experience either locally or a study trip

    Build relationships/negotiate with (?competitors) Essential Energy/Country

    Energy/the Grid

    Need plan for post-feasibility study who will follow up, what next Investigate partnership with commercial developer

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    INVESTOR FORUM

    BENEFITS

    Miniturisation

    Get plans and build turbines here

    18% + ethical

    UNE land for siting

    Ring Main Supply

    Preferred Place; EVO Cities; reputation of the region; reputation; lifestyle

    Provide a focus for community energy efficiency an other small scalecogeneration projects synergy and partnerships

    Sustainable energy resource; Clean energy; Clean power generation

    Localised electricity production; smaller loss in grid; reduced energy losses

    Employment opportunities; Local employment; creation of jobs

    Research opportunities; development of alternative technology

    Future benefits for the environment are enormous

    Community involvement

    Localised investment; ongoing investments; clean ethical investment;

    incentive for investing Community-run, self-sustaining electricity; renewable energy source not

    reliant on others outside community;

    Government seed project

    Increased population (?)

    Reduction in GHG emissions; reduction of carbon footprint

    Support and access to expertise not necessarily available to individuals.

    Carbon credit generation; carbon credits?;

    Sustainability

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    GOVERNANCE MODEL OPTIONS ANALYSIS

    CHALLENGES& RISKS

    Decrease in purchase/ wholesale price because of increased grid costs

    The grid

    Storage/ waste electricity

    1 person 1 vote: prone to capture/ stacking/ carpet bagging; eg. CMG

    2% of people attend and vote = a silent majority.

    How much experience around the world in life of equipment?

    Miniturisation may not be so important in the New England

    How to keep it local if we get outside funds

    Monopoly if not owned by community control

    Hail damage? Unemployment

    Technology redundant in a short time loss of funds

    Financial support; raising the finance

    Confidence

    Attracting technical skills

    Training

    Debate/ politics

    Job loss (referring to a perception that Renewable energy generation will

    take less jobs than coal generation) financial effect of. Opportunity cost

    Big business snapping up the best sites before community support is

    established

    Securing suitable sites in acceptable areas for adjoining land owners

    Viability of the grid itself

    Carbon tax?

    Degrading of infrastructure (from memory this was about NEW needing to

    think about the possibility of contributing to grid upgrade and

    maintenance, as well as the 20-30 yr lifespan of turbines before needingrefurbishment)

    Alienation of sectors of the community

    Marketing and management of adverse comments and negativeness

    Suitable legal structures

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    KEYPRINCIPLES

    More people to benefit from NEW then less negative resistance

    Risk spread around and therefore increase chance of getting off the

    ground; risk spread.

    Transparency

    KISS information

    Board: business, merit and skills based, technical, corp law, acct (?)

    Governance role for LGA

    ROI and Feel Good; 10% plus return

    Reflect community values

    Balance financial aspects with community values Offset rising electricity prices; lock in a price for electricity for a given time

    How do we own it? Rates adjustment?

    Ability to sell shares; liquidity and depth in share market

    Carbon franking credit

    Prevent foreign investors from buying it out

    Have clear, set mission, purpose, vision, strategy to then drive a marketing

    plan

    Dominant local community ownership

    Needs a very strong financial underpinning: profit = return Idea of having a local price discount and a export price premium (ie. Pay

    less for local electricity and more for electricity that has had to travel a

    long way)

    Classes of shares

    Local with voting and governance rights

    Structure: separate business from operational arm; authorisation/ investment

    arm; business/community arm.

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    GOVERNANCE MODEL OPTIONS ANALYSIS

    PRIORITYNEXTSTEPS

    Governance Structure foster community control, stop it from going

    offshore, limit institutional investor bought voting control

    Communicating what real, valid concerns and whats not substantiated

    (noise, birds, look)

    Strong educational base

    Concise, organised, packaged

    Price it

    Prospectus

    Seed funding

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    FORUMS REPORT

    GLEN INNES COMMUNITY FORUM

    BENEFITS

    A better future money for community.

    People controlling local power

    Clean power

    If it works, community pride, sense of achievement

    Towers allow land usage as usual

    Long term investment 20 years +

    Clean energy Joint venture: public listed company allows shares to be traded

    If the community wind towers could be off the private companies

    Line of sight consultation a must do

    Are state land reserves etc available rather than private land

    Local/regional ownership

    Cooperative, not a profit-oriented structure/framework

    Local employment, IF Govt supports training of locals

    Reduction of greenhouse gases (far more effective than taxing the current

    systems to discourage use) Potential to continue using the land as before

    Flow-on financial benefits to the community.

    Environmental benefits less effects into the future than coal

    Financial benefits cheaper energy source

    Employment benefits

    Great source of renewable energy to be used in conjunction with solar

    units

    Clean wind always available

    Community ownership

    More affordable electricity

    Symbol of what community stands for

    Community based much more preferable

    Eliminates the developer

    $44M 7PA to latch on to other existing development

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    GOVERNANCE MODEL OPTIONS ANALYSIS

    CHALLENGES& RISKS

    Can divide the community.

    Visually ugly

    Wind and solar only produce for 4 6 hours per day

    500m safe zone has been suggested = 1km

    Noise from towers travels on the wind, not fall below

    Financial: $2-3 million 30% top production

    Challenges:

    Raising capital required

    Get agreement on location, height of towers etc

    Investment potential: what guarantees are there for shareholders? Lifespans, quality, maintenance

    Existing negative community perceptions

    Risks

    Fire

    Flying debris

    Ice

    Health insurance

    Bird kills

    Air spraying and towers Risks

    Health

    Valuation on land

    Impact on peoples livesthe ones that dont want a wind tower

    Lightning

    Impact on wild life

    Noise: at base noise would be minimal because its going over you.

    Lifespan of towers and turbines

    Maintenance costs Responsibility

    Challenges

    Community opinion

    Training program and jobs

    Management of project

    Risks

    Noise, visual impact, devaluation of land

    Small player in a big grid

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    Entry and tenure in a the state/national grid system

    KEYPRINCIPLES

    Do it ourselves. Eliminate the developers

    Benefit both sides: community and developers

    Include community right from the beginning

    Line of site communication

    NSW govt training to create local employment

    Get good people for management/board

    Structure: prevent negative influence of a few ?re voting influence.

    Inclusive/ right to a voice Return on investment

    Return a profit to the communityenhance community spirit

    Investigate size/capacity of turbines and maintenance requirements

    Avoid environmentally sensitive areas

    Consider attachment to a commercial wind farm

    Educate the community

    Members

    ?only from New England.

    ? only individuals ? Councils

    Councils on side

    Transparency, good & bad

    Independent legal advice

    PRIORITYNEXTSTEPS

    Feasibility study expertise

    Formal approaches to existing projects for expertise & ownership

    Public education campaign full disclosure

    Web site with full information totally open

    Research financial/technical

    Study visit to existing wind farm

    Who is Starfish Enterprises?

    Generate a lot more interest

    Existing info on community co-ops

    COMMUNITY WIND FARM STUDY Page 30 of 31

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    GOVERNANCE MODEL OPTIONS ANALYSIS

    OTHERCOMMENTS(ANONYMOUS)

    Some matters not dealt with: property devalued if you want to sell when

    property surrounded by wind farms. Thanks you for allowing us to vent. You listened to all our views. It was a

    change to what we have in the past.

    To certainly pursue the community wind farm for interested persons not

    tainted with the negative effects from the commercial farm to be

    established in our area and to ensure all interested community members

    gain complete satisfaction with the communication process involved.

    Any steering/exploratory committee to be identifiably New England

    people.

    I dont think it will be good to add any more towers than what is alreadyforced upon the community. Piggy backing would be the only way.