THE WORLD ENERGY CHALLENGE

isA GREAT OPPORTUNITY FOR

KANSAS

Almost All U.S. Ethanol Plants Are Located in the U.S. Midwest

Argonne National Laboratory: Energy Systems Division Seminar. August 2005.

U.S. Ethanol Plants and Capacities by State

IA (28) 1,796 MGYMN (16) 677 MGYNE (15) 781 MGYSD (14) 627 MGYKS (10) 360 MGYIL (7) 679 MGYWI (6) 280 MGYIN (5) 312 MGYND (4) 263 MGYMI (4) 212 MGYMO (4) 155 MGY

CA (4) 69 MGYCO (3) 85 MGYKY (2) 35 MGYTN (1) 67 MGYAZ (1) 55 MGYOR (1) 35 MGYNM (1) 30 MGYWY (1) 11 MGYOH (1) 4 MGYVA (1) unknown

Total U.S. Capacity = 6.4 BGYAdditional Capacity Under Construction = 6.0 BGY

Source: American Coalition for Ethanol; Renewable Fuels Association – July 2007

Biofuels Overview

5 Ethanol Plants arePermit Pending518 MGY

4 Ethanol Plants ArePermitted308 MGY

6 Ethanol Plants Under Construction

427 MGY

10 Ethanol Plants Existing

360 MGY

ETHANOLIn Kansas

*MGY: Million gallons per year

U.S. Ethanol Plants and Capacities by State

IA (28) 1,796 MGYMN (16) 677 MGYNE (15) 781 MGYSD (14) 627 MGYKS (10) 360 MGYIL (7) 679 MGYWI (6) 280 MGYIN (5) 312 MGYND (4) 263 MGYMI (4) 212 MGYMO (4) 155 MGY

CA (4) 69 MGYCO (3) 85 MGYKY (2) 35 MGYTN (1) 67 MGYAZ (1) 55 MGYOR (1) 35 MGYNM (1) 30 MGYWY (1) 11 MGYOH (1) 4 MGYVA (1) unknown

KS Today 787KS Tomorrow 1613

Total U.S. Capacity = 6.4 BGYAdditional Capacity Under Construction = 6.0 BGYSource: American Coalition for Ethanol; Renewable Fuels Association – July 2007

Energy Issues were prominently featured in State of the State Address by Governor Sebelius…

“Our goal is to produce 10 percent of our state’s electricity from wind power by 2010, and 20 percent by 2020. ”

….State of the State Address, Jan. 10, 2007

                                                                                                            

http://rredc.nrel.gov

Certainty Rating of the Wind Resource Estimates for Areas with Class 3 or Higher Wind

Power in the Contiguous United States

Wind Energy Projects

As of Dec 31, 2006

WIND PROJECT (County) DEVELOPER UTILITY SIZE YEAR_______

Jeffery Energy Center (Pottawatomie Co.) Westar Westar 1.5 MW 1999

Gray County Wind Farm (Gray Co.) FPL Energy Aqula 112.2 MW 2001

Elk River Wind Facility (Butler Co.) PPM Energy Empire 150 MW 2005

Spearville Wind Energy Facility (Ford Co.) enXco KCP&L 100.4 MW 2006

Smoky Hills Wind Farm (Ellsworth/Lincoln Cos) Tradewind Sunflower 50.4 MW 2007 (4th Qtr)

KC BPU 25 MW 2007 (4th Qtr)

Midwest 25.2 MW 2007 (4th Qtr)

Westar Announcement (2/26/07) RFP Due 4/2/07 Westar 500 MW 250 MW by 2008

250 MW by 2010

KCP&L Announcement (3/20/07) RFP Due 6/15/07 KCP&L 400 MW 100 MW by 2008

300 MW by 2012

Meridian Way Wind Farm Horizon Wind Energy, LLC Empire 201MW 2007

Kansas Wind Projects – In operation and announced

Compiled by Kansas Energy Office (April 2007)

0

200

400

600

800

1000

1200

1400

1600

1800

Existing Existing and UnderConstruction

Existing, UnderConstruction and

Announced by 2010

Existing, UnderConstruction, Announcedby 2010 and Announced

by 2012

MW

364.1

665.7

1265.7

1565.7

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

50000

55000

60000

65000

70000

75000

80000

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

Ca

pa

cit

y (

MW

)

United States Europe Rest of World

1. Germany: 20952 MW2. Spain: 12500 MW3. United States: 12376 MW 4. India: 7093 MW5. Denmark: 3136 MW

Source: WindPower Monthly

World total July 2007: 78728 MW

Total Installed Wind CapacityTotal Installed Wind Capacity

People Want Renewable Energy!People Want Renewable Energy!

KANSAS AS A WIND EXPORTER

FOR IT TO HAPPEN

• New wind becomes cheaper than new coal• Congress passes a National RPS• Congress passes a Carbon Tax

2

4

6

8

10

12

1990

CO

E (

¢/kW

h [c

onst

ant

2000

$])

Low wind speed sites

1995 2000 2005 2010 2015 2020

High windspeed sites

New Bulk Power Competitive Price Band

2007: New Wind

Depreciated CoalDepreciated Wind

Natural Gas (fuel only)

Wind Cost of EnergyWind Cost of Energy

In 2006, Wind Projects Built Since 1997 Were In 2006, Wind Projects Built Since 1997 Were Competitive with Wholesale Power Prices in Most RegionsCompetitive with Wholesale Power Prices in Most Regions

Case Study: Texas Case Study: Texas

Utilities and wind companies invested $1B in 2001 to build 912 MW of new wind power, resulting in:

• 2,500 quality jobs with a payroll of $75M

• $13.3M in tax revenues for schools and counties

• $2.5M in 2002 royalty income to landowners

• Another 2,900 indirect jobs as a result of the multiplier effect

• $4.6M increase in Pecos County property tax revenue in 2002

Case Study: MinnesotaCase Study: Minnesota

107-MW Minnesota wind project

• $500,000/yr in lease payments to farmers

• $611,000 in property taxes in 2000 = 13% of total county taxes

• 31 long-term local jobs and $909,000 in income from O&M (includes multiplier effect)

Case Study: IowaCase Study: Iowa

240-MW Iowa wind project

• $640,000/yr in lease payments to farmers ($2,000/turbine/yr)

• $2M/yr in property taxes• $5.5M/yr in O&M income• 40 long-term O&M jobs• 200 short-term

construction jobs• Doesn’t include multiplier

effect

Economic Impacts to Kansasfrom 7158 MW of new wind development by 2030

Direct Impacts

Payments to Landowners: • $20.8 million/year Local Property Tax Revenue:• $19 million/yearConstruction Phase:• 11,133 new construction jobs• $1.35B to local economiesOperational Phase:• 1805 new long-term jobs• $152M/yr to local economies

Indirect Impacts

Construction Phase:• 5,000 new jobs• $424M to local economiesOperational Phase:• 438 local jobs• $43 M/yr to local economies

Induced Impacts

Construction Phase:• 6,223 new jobs• $559 M to local economiesOperational Phase:• 850 local jobs• $76 M/yr to local economies

Wind energy’s economic “ripple effect”

Construction Phase = 1-2 yearsOperational Phase = 20+ years

Totals (construction + 20 yrs)Total economic benefit to Kansas = $7.8 billionNew local jobs during construction = over 23,000New long-term jobs for Kansans = over 3,000

HOW WE CAN MAKE THIS HAPPEN?HOW WE CAN MAKE THIS HAPPEN?

WE BRING EVERYONE WE BRING EVERYONE TOGETHER…TOGETHER…

ENVIRONMENTALISTS, UTILITIES, AND ENVIRONMENTALISTS, UTILITIES, AND CONSUMER ADVOCATES MUST COME CONSUMER ADVOCATES MUST COME

TOGETHER IN AN UNPRECEDENTED WAYTOGETHER IN AN UNPRECEDENTED WAY