SPP Wind Integration

Holly Starling

Project Manager

July 3, 2008

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• FPL Energy

• Gray County Wind Energy Center

• Definitions

• Wind Integration Keys

• Current SPP Market

• SPP Market Recommendations

Agenda

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• Leading clean energy provider in 25 states– More than 90% of energy

portfolio from clean fuels

• Nation's leader in wind energy generation– Over 6,000MW of installed

wind energy capacity by year end 2008

– 56 operating wind facilities in 16 states

• World’s No. 1 producer of solar energy

FPL Energy is the nation’s No. 1 producer of wind power

FPL Energy

FPL Energy has a record of clean energy leadership

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FPL Energy’s US leading wind power portfolio includes 56 wind facilities in operation in 16 states

FPL Energy’s Wind Portfolio

StatelineStateline

VansycleVansycle

Diablo Wind Diablo Wind WPP90WPP90 WPP91WPP91 WPP91-92WPP91-92 WPP92WPP92 Green RidgeGreen Ridge Mojave 3 & 5 Mojave 3 & 5

Mojave 16/17/18Mojave 16/17/18 Sky RiverSky River TPCTPC Victory GardenVictory Garden

Gray CountyGray County

Southwest Mesa Southwest Mesa Woodward Mt.Woodward Mt.Indian MesaIndian MesaKing Mt.King Mt.

Lake Benton IILake Benton II

SomersetSomerset

OperatingOperating

Under construction Under construction

(as of 4/30/08)(as of 4/30/08)

MontfortMontfort

MountaineerMountaineer

North Dakota North Dakota

South DakotaSouth Dakota

CerroCerroGordoGordo

HancockHancock

New MexicoNew Mexico

High WindsHigh Winds

Delaware Mt. Delaware Mt.

Mill RunMill Run

Green MountainGreen Mountain

WaymartWaymart

OklahomaOklahoma

Wyoming Wyoming

MeyersdaleMeyersdale

Cabazon Cabazon Green PowerGreen Power

WPP93WPP93

WPP93 WPP93

WPP94 WPP94

WeatherfordWeatherford

Horse Hollow I, II & IIIHorse Hollow I, II & III

WiltonWilton

Red CanyonRed Canyon

MowerMower

Peetz Table Peetz Table

Endeavor Endeavor

Capricorn Capricorn Ridge and Ridge and Expansion Expansion

Callahan DivideCallahan Divide

Oliver I & IIOliver I & II

LangdonLangdon

Logan Logan

Wolf RidgeWolf Ridge

Story Story CountyCounty

Crystal Lake Crystal Lake

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• 112.2MW nameplate capacity

• 170 turbines, 660 kW per unit

• Operating since November 2001

FPL Energy’s Gray County Wind Energy Center wasthe 1st utility-scale wind facility in Kansas

Gray County Wind Energy Center

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• Leverage corporate-wide knowledge base– Efficiencies

– Cost reduction

• Monitor critical parameters in real-time

• Uses advanced technology to detect and prevent failure

• Interface with system operators

FPL Energy uses a state-of-the-art central monitoring center to ensure reliable wind facility operations

Operational Excellence

Fleet Performance Diagnostics Center

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• Nameplate capacity (MW): full power output

• Net capacity factor (NCF): ratio of electric energy generated in a given period to the maximum possible– Wind resource is the key component

– Kansas has excellent wind resource

– Current turbine technology produces 35-45% NCF in Kansas

Net capacity factor is an indicator of wind resource

Kansas has excellent wind resource

Definitions

*Source: http://www.awea.org

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• Market structure

• Transmission system capability

• Ancillary services and cost allocation

• Wind forecasting

System balancing authorities are able to integrate wind, accommodate its variable nature and reduce costs

Average wind integration costs are below $10/MWh

Wind Integration Key Components

*Source:DOE Annual Report on U.S. Wind Power Installation, Cost, and Performance Trends: 2007

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Current SPP Market

SPP expects to transition to a nodal market by 2012

To grow wind investment in Kansas, SPP market rule reform is needed

*Source: SPP Strategic Plan; Oct 24, 2006

• Bilateral

• SPP ancillary service market needs reform to be wind-friendly

• Transmission infrastructure necessary

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• Implement nodal market structure

• Ensure wind facilities can interconnect to system

• Provide transmission capability to transfer wind power from best wind resource areas to load

• Enable wind power grid integration through ancillary service reform

• Encourage SPP best practices wind forecasting capability

Substational new wind development in SPP requires market changes

New wind development is heavily dependent on the evolution of the SPP market and transmission system expansion

Market Recommendations

*Source: SPP State of the Market Report, Apr 24, 2008

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Holly Starling

FPL Energy

Questions?