CIPCOCentral Iowa

Power Cooperative

Iowa Industrial Energy GroupApril 9, 2013

CIPCO At A Glance

Founded: 1946

Locations: Cedar Rapids, Creston, Des Moines, Montpelier and Wilton

Employees: 129

Members: 13 rural electric cooperatives and associations

Territory: Stretches 300 miles diagonally across Iowa serving 58 of Iowa's 99 counties

CIPCO At A Glance

Energy Sales: 2.8 million MWh

Operating Revenue: $187 million

Net Margin: $23.9 million

Total Assets: $659 million

Peak Demand: 610 MW (2012)

Transmission Lines: 1,869 miles

How Iowa Utilities DifferInvestor-Owned

Utility (IOU)Electric Cooperative

(REC)Municipal Utility

(Muni)Number of Electric Utilities in Iowa 2 45 136

Ownership Public Corporation Membership Local Government

Tax Status For-profit Not-for-profit Not-for-profit

Governed By Board of Directors Local Board of Directors City Council or Board

Percent of Customers Served in Iowa 72% 14% 14%

Average Number of Customers per Mile of Line 27 3 55

Percent of Residential Customers 85% 88% 83%

Percent of Commercial & Industrial Customers 15% 12% 17%

IUB Regulatory Authority Rates, Service Service, Rates (optional) Service

CIPCO Member Systems• Member-owned, not-for-profit governed by board of directors

• 13 rural electric cooperatives and associations

• Serve 320,000 residents and 12,000 commercial/industrial accounts

• Service territory adjoins 12 of Iowa’s 17 largest cities

• 449 distribution employees

• Smallest member = 2,832 consumers – Largest member = 25,606

• Density: 2.3 members per mile line – 11.7 members per mile line

CIPCO Member Systems Service Areas

Wholesale Power Supply(2013 Annual Estimate)

Owned & Co-owned Power PlantsDAEC NuclearWalter Scott #3 CoalWalter Scott #4 CoalLouisa CoalFair Station CoalSummit Lake/Peaking Gas/Diesel

Contract PurchasesWAPA Hydroelectric (13 MW)Hancock County Wind Farm (2 MW)Story County Wind Farm (42 MW)Elk Wind Farm (41 MW)Hawkeye Wind Farm (36 MW)Rippey Wind Farm (50 MW)Pioneer Grove Wind Farm (6 MW)

DAEC30%

Walter Scott #3

19%Walter Scott

#4 17%

Louisa7%

Fair Station4%

Wind/Hydro 23%

8

Transmission SystemMiles of Transmission Line = 1,869

Transmission Substations = 29

Transmission Technology

Balanced & Diverse Portfolio

• More than 95% generated in Iowa• Over 50% carbon-free and emissions-free• Limited market exposure with over 95% from

owned units and long-term contracts• Growth in energy efficiency and renewable

resources

Ownership and resource diversity lead to price stability

Power Supply Fuel Mix

Wind, Etc.

Hydro

Nuclear

N-GasCoal

1%

48%

26%4%

70%

CIPCOCommitments

7-State Region

51%

Emissions- & Carbon-Free

2013 2010Years

Business Partnerships

CIPCO Subsidiaries:

• Iowa Area Development Group

• Capital Management Associates (CMA)

• CMA Ventures

• Myriad Developers

Business Partnerships

CIPCO Business Partners

• Electric utility industry

• Iowa Association of Business & Industry

• Coalition of Comm. Bankers & Comm. Colleges

• Active in communities we serve

Major Industry Challenges

Aging Infrastructure:

• Generation assets

• Transmission grid

• Workforce challenges– Shortage– Skills gap

Major Industry Challenges

Changing regulatory climate:

• Short-term cycles vs. long-term business model

• Planning vs. reacting

• Regulatory progression– Environmental– Financial– Health care

Major Industry Challenges

Evolving energy markets:

• Transition to market models vs. monopoly

• FERC, MISO, NERC oversight

• Absence of national energy policy

CIPCO’s Strategic Goals

• Asset ownership• Diversity of generation resources• Stewardship of our system• Financial strength and flexibility• Facilitate a platform of growth• Leverage with our business partners

Thank you!