WindShare I Investment ProposalWindShare I Investment Proposal
Presentation to WindShare I Members
General Meeting, June 7th, 2006
IntroductionIntroduction
• Background
• Decision: explore investment opportunities
• Proposal: Lakewind-Bervie Project
EF
BackgroundBackground
WindShare I(Share Capital Co-op)
Ex Place Turbine
(Joint Venture)
THESIToronto Hydro Energy Services
Current Structure
EF
BackgroundBackground
• WindShare I AGM - February 2006 Reviewed several
new lakeshore turbine investment scenarios
EF
BackgroundBackground
• Constricting factors: Poor pricing Lack of PPA (power
purchase agreement) Height restrictions -
preventing use of more efficient turbines
EF
BackgroundBackground
• SOC (Standard Offer Contract)
Developments <10 Meg (ExPlace 650kw)
Expected price: 11c/kWh 20 year contract Indexed to inflation
March 2006
EF
BackgroundBackground
• Impact of SOCs: Improves economics of
ExPlace turbine Can’t overcome height
restrictions - preventing use of more efficient turbines
EF
BackgroundBackground
• AGM Conclusion:
we must look elsewhere for our next investment
EF
Lakewind OverviewLakewind Overview
• WindShare II created by TREC to develop Lakewind
• Joint venture with local cooperative: Countryside Energy Coop (Milverton)
EH
Lakewind–Bervie ProjectLakewind–Bervie Project
• Community wind power project east
of Bervie, near Kincardine
• 900 acres
• Existing wind study
• Adjacent interconnect
EH
Lakewind-Bervie: Progress ReportLakewind-Bervie: Progress Report
• Lease Agreement signed
• Wind Data
• Interconnection Update
• Environmental Assessment & Bird StudyEH
Lakewind-Bervie: Business Case
Lakewind-Bervie: Business Case
• 11 cents/kWh
+ strong wind regime
= healthy economic revenue (20 years)
• Projected Internal Rate of Return: > 7%
EH
Offering Statement Offering Statement
• Capital target: $20 million
• Risks
• Schedules
EH
Current Business Partnership Structures
Current Business Partnership Structures
WindShare I(Share Capital Co-op)
Ex Place Turbine
(Joint Venture)
THESIToronto Hydro Energy Services
Lakewind Power Co-operative(Joint Venture)
Lakewind Bervie Project
WindShare II(Share Capital Co-op)
Countryside Energy Co-op
(Share Capital Co-op)
EF
Proposal to WindShare I MembersProposal to WindShare I Members
• Merger between WindShare I and WindShare II
• Create one WindShare share capital cooperative
EF
Proposed Business Partnership Structure
Proposed Business Partnership Structure
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
Benefits of MergerBenefits of Merger
• Social WindShare I: reputation &
experience CEC: Local partner & rural
perspective
• Environmental
• Economic Economies of scale Standard Offer Contract
EF
Scenario ComparisonScenario Comparison
Capital StructureEquity Investment $’s (WindShare)
Net Present Value $’s
Projected Internal Rate of Return
Ex Place 50% (status quo)
800,000 (-504,000) (-3.14%)
Ex Place 50%
+ additional T.O. turbine
1,553,741 (-457,000) +3.16%
Ex Place 50%
+ Lakewind-Bervie 50%
5,800,000 11,600 +7.03%
DR
Implications for WindShare IImplications for WindShare I
• Business entities, contract & conditions
• “Pioneer” membership designation
• Investors-in-waiting: Transfer funds held in escrow (with approval)
• Preference shares: transfer at ‘threshold’ point
Other Board Member???
Lakewind Proposed TimelineLakewind Proposed Timeline
• Summer 06: WindShare and CEC offering agreements to FSCO
• Fall 06: FSCO approval; Bervie EA completed; membership campaign launch
• Spring 07: turbines ordered
• Spring 08: turbine installation
Other Board Member???
View from the BoardView from the Board
• Motion Review
• Q&A
• Membership Motion
• Vote
EF