Windshare Windshare 20072007

AGMAGM

Welcome MembersWelcome Members

Windshare 2007 AGM

Welcome & IntroductionsWelcome & Introductions

Special Video Introduction

2006 Windshare Board

Paula BoutisJohn BinnsRike Burkhardt Evan FerrariJennifer JefferyBirthe JorgensenRose Kudlac

Treasurer - David Robertson

Windshare 2007 AGM

WelcomeWelcome

Special Video Introduction

Windshare 2007 AGM

Agenda Agenda (motion to approve agenda)(motion to approve agenda)

1. WELCOME & Introductions2. AGENDA REVIEW3. APPROVAL OF MINUTES 2006 AGM4. RECOGNITION of Board & Staff: 5. BOARD ELECTIONS:6. COFFEE BREAK 7. WINDSHARE BOARD REPORT 8. TREASURER'S REPORT: 9. ELECTION RESULTS: 10.Llakewind11.ADJOURNMENT12.ANNOUNCEMENTS

Windshare 2007 AGM

APPROVAL OF MINUTES 2006 AGM

Paula BoutisPaula Boutis

Windshare 2007 AGM

RECOGNITION of Board & Staff

Birthe JorgensenRebecca Black Jennifer GaudetteSimon Gill

Windshare 2007 AGM

BOARD ELECTIONS

Seven Member BoardThree year termsOpen to members and members in waitingOne vacancy to fill tonightNominations from the floor?

Windshare 2007 AGM

BOARD ELECTIONS

Each Candidate will have 2 minutes

Windshare 2007 AGM

BOARD ELECTIONS

-Election ballots to be submitted into Ballot Boxes-Ballots will be counted over Coffee Break

Windshare 2007 AGM

WINDSHARE BOARD REPORT

WINDSHARE BOARD REPORT – A year in Review:

a) Year Overview b) Administration c) Communications d) Technical and Production e) Financial Report

Windshare 2007 AGM

WINDSHARE BOARD REPORT Overview of 2007Overview of 2007 -Social (political) impact on public policy and -Social (political) impact on public policy and

awareness, community powerawareness, community power -Environmental CO2 emission reduction-Environmental CO2 emission reduction -Financial – close but not there yet>Successful at -Financial – close but not there yet>Successful at

making policy and political changemaking policy and political change New Investments – trials and tribulationsNew Investments – trials and tribulations

Lakewind Constraint Area

Windshare 2007 AGM

Proposed Business Partnership Proposed Business Partnership StructureStructure

Lakewind Power Co-op(Joint Venture)

Lakewind Bervie Project

WindShare I & II(New Share Capital Co-op)

Countryside Energy Co-op

(Share Capital Co-op)

THESIToronto Hydro Energy Services

Ex Place Turbine(Joint Venture)

EF

Special General Meeting June 2006

Special General Meeting June 2006

Windshare 2007 AGM

WINDSHARE BOARD REPORT Lakewind UpdateLakewind Update

Ed Hale

Windshare 2007 AGM

Windshare Windshare 20072007

AGMAGM

Coffee BreakCoffee Break

Windshare 2007 AGM

WINDSHARE BOARD REPORT AdministrationAdministration

Until Fall 2006, WindShare was largely volunteer operated Until Fall 2006, WindShare was largely volunteer operated and managed with some part-time membership support and managed with some part-time membership support from Kit Chapmanfrom Kit Chapman

After membership approved Lakewind Project in June After membership approved Lakewind Project in June 2006, we had access to three new staff members2006, we had access to three new staff members

With the uncertainty of Lakewind, we are back to relying With the uncertainty of Lakewind, we are back to relying on volunteers and Board Members for WindShare on volunteers and Board Members for WindShare administrationadministration

Examining possibility of hiring new part-time administrative Examining possibility of hiring new part-time administrative staff memberstaff member

Jennifer Jeffery

Windshare 2007 AGM

Administrative CommitteesAdministrative Committees

Joint Venture (WindShare & Toronto Hydro)Joint Venture (WindShare & Toronto Hydro) Rose Kudlac, John Binns, Evan Ferrari

Technical Committee Technical Committee Rose Kudlac & John Binns

Finance Committee Finance Committee (David Robertson, looking for new treasurer)

Communications Committee Communications Committee Jennifer Jeffery

Admin Admin Riki Burkhardt

Jennifer Jeffery

Windshare 2007 AGM

WINDSHARE BOARD REPORT Communications Communications

Member newsletters distributed in May, Member newsletters distributed in May, August, and DecemberAugust, and December

Lakewind Information Session held in June Lakewind Information Session held in June with background package sent out in advancewith background package sent out in advance

Letter campaign to Premier and Minister of Letter campaign to Premier and Minister of Energy (re: transmission constraints) in Energy (re: transmission constraints) in NovemberNovember

Jennifer Jeffery

Windshare 2007 AGM

www.WindShare.cawww.WindShare.ca

Jennifer Jeffery

Windshare 2007 AGM

2007-2008 Communication 2007-2008 Communication PlanPlan Current staffing limitationsCurrent staffing limitations

Updates on Lakewind Project as applicableUpdates on Lakewind Project as applicable

Quarterly newslettersQuarterly newsletters

Production and financial data available Production and financial data available quarterly on Members section of websitequarterly on Members section of website

Regular website updates as applicableRegular website updates as applicable

Jennifer Jeffery

Windshare 2007 AGM

WINDSHARE BOARD REPORT Technical and ProductionTechnical and Production Production Primary technical incidents Ongoing issues Moving Ahead

Rose Kudlac

Windshare 2007 AGM

701,963

866,003946,342 962,316

347,477

0

200,000

400,000

600,000

800,000

1,000,000

2003 2004 2005 2006 2007

Windshare Production by Fiscal Year

kwh

Sep-March

Windshare 2007 AGM

Sep-March

Production by Fiscal MonthWindshare Turbine

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

Oct Nov Dec J an Feb Mar Apr May J un J ul Aug Sep

month

2003

2004

2005

2006

2007

Windshare 2007 AGM

WINDSHARE BOARD REPORT WINDSHARE BOARD REPORT Technical and ProductionTechnical and Production

Rose Kudlac

- 4 months only

2006 Fiscal WindShare Production vs High Low

-

50,000

100,000

150,000

200,000

Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep

High Low 2006 Average

Windshare 2007 AGM

2006 & 2007 Fiscal Windshare Production vs High Low

0

50,000

100,000

150,000

200,000

Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep

High Low 2006 Average 2007

Windshare 2007 AGM

WINDSHARE BOARD REPORT Technical and ProductionTechnical and Production Technical Issues Line reactor problem in September (xx days

downtime) Diagnose problem Quote for repair vs. replacement Decide to purchase from Bettink in the Netherlands –

shipment took a week We decided to install in a separate cabinet to prevent

problem in future, lower cost to do it immediately.

Rose Kudlac

Windshare 2007 AGM

WINDSHARE BOARD REPORT Technical and ProductionTechnical and Production Intermittent problems since summer

blade pitch motor controller Jetway communication alarms Blade pitch motor batteries and chargers (in winter) Converter alarms

Challenges responding Remote access – difficulty in dealing with shoebox Going on site complexity – even Johan Top said “I don’t know what

to do next”

Rose Kudlac

Windshare 2007 AGM

WINDSHARE BOARD REPORT Technical and ProductionTechnical and Production Leading to requesting technician from Bettink –

Johan Top on site from Feb 6-12, 2007 Close to 100% availability since his visit 2 days training of McDowell staff, WindShare and

THESI Up to date parts inventory, including testing of

spare parts

Rose Kudlac

Windshare 2007 AGM

WINDSHARE BOARD REPORT Technical and ProductionTechnical and Production Achieved:

emergency response procedures, lockout safety procedures, inventory process IT consultant capable of handling shoebox! remote access: Using VNC to access the turbine through modem

since Dec. 06 Ongoing issues

rust, sagging cables, replacing shoebox with more ‘modern’ machine

Rose Kudlac

Windshare 2007 AGM

WINDSHARE BOARD REPORT Technical and ProductionTechnical and Production Ahead internet connection –

opportunity for volunteers to get involved in monitoring one person is engaged in data analysis

good shape re inventory and spare parts Improved admin – e.g. purchase orders planning for spring maintenance operation is excellent

Rose Kudlac

Windshare 2007 AGM

WINDSHARE BOARD REPORT Treasurers ReportTreasurers Report

Dave Robertson

Windshare 2007 AGM

Treasurer’s ReportTreasurer’s Report

Audited Financial StatementsAudited Financial Statements Balance Sheet Operations statement

Income TaxIncome Tax FY 2007 ForecastFY 2007 Forecast

Windshare 2007 AGM

Treasurer’s ReportTreasurer’s Report

Auditors:Auditors: Cowperthwaite Mehta Chartered Accountants Phil Cowperthwaite is present tonight to address

any questions

Windshare 2007 AGM

Treasurer’s ReportTreasurer’s Report

Fiscal Year – Oct 1, 2005 to Sept 30, 2006Fiscal Year – Oct 1, 2005 to Sept 30, 2006 High operating costs to recover from downtime High operating costs direct result of no warranty Low overhead expenses Negative operating income Large account due from Thesi – rebilled

maintenance costs Refunds to shareholders for shares not replaced Significant reduction in cash Cash shortage funded by EC loans

Windshare 2007 AGM

Balance SheetBalance SheetAssets (page 1)Assets (page 1)

Current AssetsCurrent Assets 20062006 20052005

CashCash $169,788$169,788 $233,311$233,311

Accounts ReceivableAccounts Receivable $67,210$67,210 30,23030,230

Inventory –partsInventory –parts $10,027$10,027 10,02710,027

Prepaid expensesPrepaid expenses $16,706$16,706 16,54516,545

TOTALTOTAL $263,731$263,731 $290,113$290,113

Windshare 2007 AGM

Balance SheetBalance SheetLiabilities/Equity (page 1)Liabilities/Equity (page 1)Current LiabilitiesCurrent Liabilities 20062006 20052005Accounts Payable & Accrued LiabilitiesAccounts Payable & Accrued Liabilities $36,657$36,657 $37,635$37,635

Current Portion DebtCurrent Portion Debt $150,000$150,000 $150,000$150,000

Deferred RevenueDeferred Revenue $75,000$75,000 $75,000$75,000

TOTAL CURRENT LIABILITIESTOTAL CURRENT LIABILITIES $261,657$261,657 $262,635$262,635

PHASE II FUNDS IN ESCROWPHASE II FUNDS IN ESCROW $288,202$288,202 $289,132$289,132

Member EquityMember EquityMembers’ Equity Share CapitalMembers’ Equity Share Capital $786,923$786,923 $800,428$800,428

Accumulated DeficitAccumulated Deficit ($108,721)($108,721) ($64,104)($64,104)

TOTAL MEMBER EQUITY TOTAL MEMBER EQUITY $678,202$678,202 $736,324$736,324

TOTALSTOTALS $1,228,061$1,228,061 $1,288,091$1,288,091

Windshare 2007 AGM

Debt FinancingDebt Financing

Environment CanadaEnvironment Canada Loans Loans $150,000 loan 0% interest Continuing to attempt to negotiate timing of

repayment or reuse of funds in next project

Windshare 2007 AGM

Members’ Equity and Funds in Members’ Equity and Funds in EscrowEscrow(page 1)(page 1)

Members’ EquityMembers’ Equity 20062006 20052005

Preference SharesPreference Shares $786,500$786,500 800,000800,000

Membership SharesMembership Shares 423423 428428

Funds in EscrowFunds in Escrow 20062006 20052005

Preference SharesPreference Shares 288,202288,202 289,000289,000

Membership SharesMembership Shares ?????? 132132

Windshare 2007 AGM

Balance SheetBalance SheetLiquidity (page 1)Liquidity (page 1)

Current AssetsCurrent Assets 20062006 20052005CashCash $169,788$169,788 $233,311$233,311Accounts ReceivableAccounts Receivable $67,210$67,210 $30,230$30,230Inventory of Wind Turbine Inventory of Wind Turbine Service PartsService Parts

$10,027$10,027 $10,027$10,027

Prepaid Expenses & Rent Prepaid Expenses & Rent DepositDeposit

$16,706$16,706 $16,545$16,545

TotalTotal $263,731$263,731 $290,113$290,113

Windshare 2007 AGM

Balance SheetBalance SheetLiquidity (page 1)Liquidity (page 1)

Current LiabilitiesCurrent Liabilities 20062006 20052005Accounts Payable & Accounts Payable & Accrued LiabilitiesAccrued Liabilities

$36,657$36,657 $37,6356$37,6356

Current Portion DebtCurrent Portion Debt $150,000$150,000 $150,000$150,000Deferred RevenueDeferred Revenue $75,000$75,000 $75,000$75,000

TotalTotal $261,657$261,657 $262,635$262,635

Positive working capital $2,074 (2005, $27,478). Working capital decreased by operating loss and

large AR from Thesi.

Windshare 2007 AGM

Statement of OperationsStatement of Operations

Total energy delivered to the grid by Sept. 30, 2006 Total energy delivered to the grid by Sept. 30, 2006 was 946,342 KWH (2004; 866,003 kWh) (50% was 946,342 KWH (2004; 866,003 kWh) (50% WindShare’s)WindShare’s)

IssuesIssues Downtime reduced revenue High operating expenses

No warranty Local electrical contractor Brought in Bettink from Europe Regular maintenance Management on site no longer volunteer

Windshare 2007 AGM

Statement of Operations Statement of Operations Revenues (page 2)Revenues (page 2)

RevenueRevenue 20062006 20052005Power Sales & Power Sales & Management FeesManagement Fees

$46,621$46,621 $47,104$47,104

Turbine Management FeesTurbine Management Fees $0$0 $8,000$8,000

Windpower Production Windpower Production Incentive ($0.12/kWh)Incentive ($0.12/kWh)

$5,759$5,759 $5,678$5,678

Interest & Exchange gainInterest & Exchange gain $8,242$8,242 $4,769$4,769

TotalTotal $60,622$60,622 $65,551$65,551

Windshare 2007 AGM

Statement of Operations (page Statement of Operations (page 2)2)

ExpensesExpenses 20062006 20052005Turbine O&MTurbine O&M $24,472$24,472 $9,902$9,902

Management FeesManagement Fees 00 8,0008,000

InsuranceInsurance 9,8839,883 11,26511,265

Land LeaseLand Lease 1,0001,000 1,0001,000

Realty taxesRealty taxes 5,7985,798 00

Professional FeesProfessional Fees 17,05717,057 17,94917,949

Wind Turbine Management FeesWind Turbine Management Fees 00 5,0005,000

Office SuppliesOffice Supplies 5,1255,125 1,3141,314

Interest & Bank ChargesInterest & Bank Charges 424424 193193

OtherOther 200200 1,02531,0253

TotalTotal $63,959$63,959 $55,648$55,648

Windshare 2007 AGM

Statement of Operations Statement of Operations Operating Income & Net Loss Operating Income & Net Loss (page 2)(page 2)Operating Income & Net LossOperating Income & Net Loss 20062006 20052005

RevenuesRevenues $60,622$60,622 $65,551$65,551

ExpensesExpenses $63,959$63,959 55,64855,648

(Loss) Income from Operations(Loss) Income from Operations $(3,337)$(3,337) $9,903$9,903

AmortizationAmortization $41,280$41,280 $41,280$41,280

Net Income (Loss)Net Income (Loss) $(44,617)$(44,617) $(31,377)$(31,377)

Dividend paidDividend paid 00 (32,000)(32,000)

Deficit, openDeficit, open (64,104)(64,104) (727)(727)

Deficit, closeDeficit, close $(108,721)$(108,721) $(64,104)$(64,104)

Windshare 2007 AGM

Statement of Operations Statement of Operations Statement of Cash FlowsStatement of Cash Flows

Sources/Uses of CashSources/Uses of Cash SourcesSources

Preference and Membership shares

UsesUses Refunds to members Refunds to members in waiting Operating loss

Windshare 2007 AGM

Income TaxIncome Tax

No Federal or Provincial payments expected No Federal or Provincial payments expected in the short termin the short term

Capital cost allowance (CCA) rate 30% high Capital cost allowance (CCA) rate 30% high in early yearsin early years

Use only enough CCA to cover incomeUse only enough CCA to cover income Non-capital losses can be carried forward Non-capital losses can be carried forward

and applied to future taxable incomeand applied to future taxable income Both CCA and prior losses deductible Both CCA and prior losses deductible

against future Lakewind income after against future Lakewind income after amalgamationamalgamation

Windshare 2007 AGM

2007 Forecast2007 Forecast

2007 budget uses most conservative estimate of 2007 budget uses most conservative estimate of old PPA rate continuing month to month with old PPA rate continuing month to month with THESI.THESI.

Use conservative estimate for operating costsUse conservative estimate for operating costs

Operating costs include provision for introduction Operating costs include provision for introduction of maintenance contractof maintenance contract

Only revenue & expenses for one turbine in budgetOnly revenue & expenses for one turbine in budget

Windshare 2007 AGM

2007 Forecast2007 Forecast

2007 budget shows operating surplus but net loss 2007 budget shows operating surplus but net loss after amortization. after amortization.

Continues to be not sustainable in the long term. Continues to be not sustainable in the long term. Risk of more downtime and related repair costs Risk of more downtime and related repair costs remains high with no warranty.remains high with no warranty.

Not enough economies of scaleNot enough economies of scale

No more dividends until sustainable operationNo more dividends until sustainable operation

Windshare 2007 AGM

Acceptance of AuditedAcceptance of AuditedFinancial StatementsFinancial Statements

Motion:Motion: To accept the Audited Statements for TREC To accept the Audited Statements for TREC

WindShare Co-operative (No 1) Incorporated WindShare Co-operative (No 1) Incorporated for Fiscal Year ended September 30, 2006for Fiscal Year ended September 30, 2006

Windshare 2007 AGM

Appointment of AuditorsAppointment of Auditors

Board of Directors recommendation…Board of Directors recommendation…Motion:Motion: That Cowperthwaite Mehta Chartered That Cowperthwaite Mehta Chartered

Accountants be re-appointed auditors for Accountants be re-appointed auditors for TREC WindShare Co-operative (No 1) TREC WindShare Co-operative (No 1) Incorporated for Fiscal Year 2007Incorporated for Fiscal Year 2007

Windshare 2007 AGM

WINDSHARE BOARD REPORT Standard Offer ContractsStandard Offer ContractsYour 2007 Board:1 – Rike Burqhardt

2 – Paula Boutis

3 – John Binns

4 – Jennifer Jeffery

5 – Rose Kudlac

6 – Evan Ferrari

Treasurer – Dave Robertson

Windshare 2007 AGM

AgendaAgenda

10. QUESTIONS & ANSWERS 9:25-9:35

11.ADJOURNMENT 9:35

12.ANNOUNCEMENTS 9:35