red barn wind financialsummary

RED BARN WIND PROJECT19997 Y City Rd, Gentry, AR 72734

FINA

NCIA

L PR

OPOS

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CONTENTSPROPOSAL FOR FINANCE

APPENDIX A: PROJECT SUMMARYAPPENDIX B: PROJECT ASSUMPTIONS

APPENDIX C: MAPSRED BARN WIND PRO FORMA

CHARTS

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.

9/2009 10/2009 11/2009 12/2009 1/2010 2/2010 3/2010 4/2010

WINDS OF CHANGE LEASEHOLDING LLC has leased 560 acres of land in North West Arkansas for the purpose of devel-opening a 20 MW wind farm using (8) 2.5MW Nordex N90 wind turbines. Winds of Change Leaseholding, LLC is developing the site for an Operations Partner to purchase and operate the wind farm in accordance with a contract agreement.

The BUSINESS CONCEPT is to develop wind energy where it is most abundant in Arkansas in partnership with the local community. The smaller size of this project allows us to reduce many costs while producing results that make large wind farms profitable. With the landowners and community having ownership, the social acceptance and regulation is well received.

The LEASED LAND has 9 signatories representing 560 acres of land. The land is in rural Benton County, Arkansas (refer to Appendix C) between Decatur and Gentry, AR. The Wildlife Wilderness Drive Thru Safari is to the West and Highway 59 is to the East. The land leased is in a rectangular shape giving way for an East/West row of wind turbines. The current land use is for pasture land to graze livestock and raise chickens. The sites adjacent to the wind turbine sites have been leased in most, but not all instances to further involve the community.

The WIND DATA was gathered from 8 different sites and averaged. Refer to Appendix C for Map Images.

The WIND ENERGY LEASE is a 25 year agreement which automatically renews for a subsequent 20 year period. The lease signed by landowners of the Red Barn Wind Project is similar to a model wind lease in New York. Some of our modifications include expirations on the lease applicable to meet landowner’s needs which included several milestones, of which most are completed. The final milestone is the Commencement Date, which must occur beofre April 2013.

The final commencement date is determined as the official start of the Operations Phase of the project. When construction begins all landowners recieve $75 per acre.

The Annual Lease Payments are equal to $50/acre + $2,500 per Turbine + $1 per MWh (estimated between $8,000 and $8,500) produced by turbine on property. This payment is distributed to those within a designated radius from the wind turbine.

123

45

1 7.66 17.1584SITE

WINDSPEED

M/SAVG. MPH

@ 100M

2 7.5 16.83 7.6 17.0244 7.65 17.1365 7.6 17.0246 7.6 17.0247 7.47 16.73288 7.62 17.0688AVG. 7.63625 17.1052

PRO

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Project Name Red Barn WindProject Size (MW) 20Turbine Model Nordex N90 2.5MWNet Capacity Factor (Years 1-20) 34%Total kWh Produced (Years 1-20) 1,188,325,502 PPA $0.0540C-BED PPA (NPV) $0.0000Green Tag Rate $0.0000

Total Installed Cost $38,720,000

Local Investor Contribution $182,000 Local Investor IRR 45%Local Investor Return (NPV) $501,133

Equity Investor Contribution $26,000,000 Equity Investor IRR 19%Equity Investor Return (NPV) $6,604,547

O & M Rate (% of revenues) 9.3%Capital Cost per kW $1,936

IRR (Years 1-20) 22%Net Present Value (Years 1-20) $13,538,953

Project Summary

2105 1st Ave S, Minneapolis, MN 55404Toll Free: 1-800-946-3640 Phone: 612-870-3461 Fax: 612-813-5612

[email protected] www.windustry.org1

The DEVELOPMENT as of July 2010 has accomplished many of its primary beginning goals and many processes will be ongoing. The long-term leases on proposed facility land were signed in February 2009. Notice of funding was recieved September 2009 for a grant of $41,000 to be received after 75% of project funding is secured. One year wind measurement on site started August 2009. Transmission study started May 2010, (60days)(30days)(30 days). Preliminary construction cost estimates May 2010.

STATEMENT of ASSETS & LIABILITIES :Assets560 Acres LeasedPublic SupportTriton SODAR Wind Data (August 2009 - Current)Triton SODAR Deposit - $5,832Transmission Study Deposit - $5,000 - $20,000 (estimated cost of feasibility study)USDA REAP Grant - $40,000 (25% of project costs)Securities Offering Exemption from Registration

LiabilitesOutstanding Legal Fees - $3,000

Winds of Change Leaseholding, LLC is a MANAGER MANAGED Limied Liability Company divided into three classes: Landowner, Investor, and Management. Long term decisions are discussed with all members and each class appoints one member to be a representative of that class to vote for their class regarding long term decisions.

The daily operations and decisions are the responsibility of the Manager, Mr. Nathan Wilson. A graduate of the University of Central Arkansas with a Bachelor’s of Business Marketing and a Master’s of Business Administration; Mr. Wilson began networking with wind professionals at the American Wind Energy Association (AWEA) conference in 2007 and is now an Advocate Member.

Nathan continued with Wind Site Assessment Training in St. Paul, Minnesota with a noted wind professional, Mick Sagrillo. Having performed site assessments in other regions of America, Mr. Wilson assessed in 2007 that the now named Red Barn Wind Project site could produce wind energy for a large scale development.

Management compensation has been set at $1000/month through the development phase to cover the expense of an office and living costs.

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8

7

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Project Summary



TOTAL DEVELOPMENT COSTS 9

10

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Project Summary



WIND STUDYTRANSMISSION STUDYENVIRONMENTAL STUDY PRE CONSTRUCTIONLEGAL EXPENSESACCOUNTING EXPENSESOVERHEAD EXPENSES

$70,000$45,000$30,000

$6,000$14,000

$1,000$17,000

$182,000 TOTAL

STATEMENT OF FINANCIAL NEEDS: An additional $34,000 of funds needed to recieve the USDA REAP Grant award of $41,000. With this additional $75,000 we will be able to fully develop the project by completing the wind study, two more transmission studies, environmental studies, legal expenses, accounting, and overhead.

AP

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IX

A

PROJECT SUMMARYProject Name Red Barn WindProject Size (MW) 20Turbine Model Nordex N90 2.5MWNet Capacity Factor (Years 1-20) 34%Total kWh Produced (Years 1-20) 1,188,325,502 PPA $0.0540C-BED PPA (NPV) $0.0000Green Tag Rate $0.0000






Project Summary









Project Summary


[email protected] www.windustry.org

OWNE

RSHIP

99%

1%

operationownershipapproximately

10yrs

.95% Development, LLC(Landowners and Developernon revenue recieving).05% Development Investors

operations, LLC

PR

E-F

LIP

PO

ST-

FLIP

development, LLC

5% Development Investors5% Operations Investors

communityownership

90%

10%

APPE

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B

PROJECT ASSUMPTIONSProject Name Red Barn WindProject Size (MW) 20Turbine Model Nordex N90 2.5MWNet Capacity Factor (Years 1-20) 34%Total kWh Produced (Years 1-20) 1,188,325,502 PPA $0.0540C-BED PPA (NPV) $0.0000Green Tag Rate $0.0000






Project Summary



LegendGreen cells indicate information and are updated automatically based on user input into yellow cells.Input information about the project into yellow cells.Gray cells are not used.

Annual Year YearProject Generation Escalation Start End NotesProject Name Red Barn WindProject Owner Winds of ChangeTurbine Model Nordex N90 2.5MWNumber of Turbines 8Turbine Size (MW) 2.5Project Size (kW) 20000Net Capacity Factor 37%Annual Hours 8,760Availability 98% -1% 5 25

Project Cost NotesTotal Cost 38,720,000$

Annual Year YearRevenue Escalation Start End NotesPower Purchase Agreement Rate ($/kWh) 0.054$ 2.3% 1 20Green Tag Revenues ($/kWh) -$ 0.0% 1 5

Year YearEquity & Flip Structure Start End NotesFlip Year 10Flip Buy-Out Payment/Fee $0 10 10Local Owner Percentage Pre-Flip 1% 1 10Local Owner Percentage Post-Flip 5% 11 20Equity Owner Percentage Pre-Flip 99% 1 10Equity Owner Percentage Post-Flip 5% 11 20Other Public or State Provided Funding -$ USDA Grant 200,000$ Local Owner Contribution 182,000$ Equity Investor Contribution 26,000,000$ Total Debt 12,338,000$

Year YearProject Debt Start End NotesTotal Debt 12,338,000$ Debt Term in Years 1Interest Rate 7%Annual Debt Payment 13,201,660$ 0 0

Local Owner Financing NotesLocal Owner Equity 182,000$ Local Owner Discount Rate 10%Local Owner Tax Rate 35%Is the Local Owner also the Land Owner? no 1 20Is the Local Owner also the Project Manager? no 1 20

Equity Investor Financing NotesEquity Investor Equity 26,000,000$ Equity Investor Discount Rate 10%

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Annual Year YearIncentives Escalation Start End NotesFederal Production Tax Credit ($/kWh) 0.0210$ 2% 0 0Percent of the PTC project can utilize 0.00%Other Production Tax Credit ($/kWh) -$ 2% 1 20Other Tax Credit (Installment Payments) -$ 0% 1 1Are Installment Payments Taxable Income? noOther Tax Credit (Lump Sum) 11,616,000$ 0% 1 1Is the Lump Sum Taxable Income? noProduction Incentive Payment ($/kWh) -$ 1% 1 10

Annual Year YearExpenses Escalation Start End NotesOperations & Maintenance 320,000$ 1.5% 1 20Operations & Maintenance Contingency Fund 25,000$ 2.0% 1 20Project Management Fee 75,000$ 2.0% 1 20Insurance 104,000$ 2.0% 1 20Property Tax 15,000$ -1.0% 1 20Lease Payments to Landowners 88,112$ 0.0% 1 20Admin/Financial/Legal Management 5,000$ 2.0% 1 20Production Tax Expense ($/kWh) 0.0012$ 2.0% 1 20Warranty Expense 20,000$ 2.0% 1 5Decomm. Fund Pre-Warranty Expiration -$ 2.0% 1 5Decomm. Fund Post-Warranty Expiration 150,000$ 2.0% 10 20Other Expense 1.0% 11 20

Depreciation NotesWhat kind of Depreciation can the project utilize? MACRS

Cost ToolProject Cost per kW 1,945$ Project Power, kW 20000Total Cost 38,900,000$

-OR-Break-out Cost Tool Feasibility Study / Wind Resource Assessment -$ Project Design & Development -$ Turbine & Tower -$ Interconnection -$ Commissioning -$ Installation/Construction -$ Other -$ TOTAL -$

C-BED ToolDiscount Rate for NPV Calculations 8%Front Loaded Rate ($/kWh) -$ Rear Unloaded Rate ($/kWh) -$ Annual Escalation 0%Fixed Price Equivalent ($/kWh) -$ NPV Rate of Energy ($/kWh) -$

C-BED power purchase rates are structured so that the rate for energy sold by the project in the first ten years of production is higher than in the last ten years. The determination of the levelized cost of the energy sold is based on the purchasing utility's discount rate for normal business operations. For more information about C-BED contracts and agreements visit this website: http://www.windustry.org/community/cbed.htm

Notes

This is a tool to help the user determine the total installed cost of the project. Once the installed cost is determined the user should manually enter the results from cell J40 or J50 into cell C20.

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APPE

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Project Summary



MAPS

Proposal for Financeof

Red Barn Wind Project Development19997 Y City Rd, Gentry, AR 72734

5. Wind Map Data

Above is a AWS Truewind 100 Meter wind map and property map overlay of the project with the entire image being above 7 m/s average wind speed and the darker areas being above 7.5 m/s with a weibull of 2.26. The resolution is 200 meter. The wind map does not take into effect localized wind effects other than elevation and vegetation.

Wind Speed M/S

avg mph @ 100M

Site 1 7.66 17.1584Site 2 7.5 16.8Site 3 7.6 17.024Site 4 7.65 17.136Site 5 7.6 17.024Site 6 7.6 17.024Site 7 7.47 16.7328Site 8 7.62 17.0688Average 7.63625 17.1052

Above is a AWS Truewind 100 Meter wind map and property map overlay of the project with the entire image above 7 m/s avg wind speed. The darker areas Above 7.5 m/s with a weibull of 2.26. The resolution is 200 meters. The wind map does not take into effect localized wind effects other than elevations and vegetation.

Map w/ Sodar Placement

PROF

ORMA

Red Barn Wind Pro FormaYear 0 1 2 3 4 5 6 7 8 9 10

CAPITAL EXPENDITURESEquity Investment (Project Cost Less Debt & Grants) (26,182,000)

REVENUESkWh/yr 63,527,520 63,527,520 63,527,520 63,527,520 62,892,245 62,263,322 61,640,689 61,024,282 60,414,039 59,809,899PPA Rate ($/kWh) 0.054 0.055 0.056 0.058 0.059 0.060 0.062 0.063 0.065 0.066C-BED Rate ($/kWh) 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000Electricity Sales Revenue per PPA 3,430,486 3,507,672 3,586,595 3,667,293 3,712,309 3,757,878 3,804,006 3,850,700 3,897,967 3,945,815Electricity Sales Revenue per C-BED 0 0 0 0 0 0 0 0 0 0Green Tag Rate ($/kWh) 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000Green Tag Sales Revenue 0 0 0 0 0 0 0 0 0 0Other Tax Credit (Installment Payments) 0 0 0 0 0 0 0 0 0 0Other Tax Credit (Lump Sum) 0 0 0 0 0 0 0 0 0 0Production Incentive Payments 0 0 0 0 0 0 0 0 0 0

Total Annual Revenues 3,430,486 3,507,672 3,586,595 3,667,293 3,712,309 3,757,878 3,804,006 3,850,700 3,897,967 3,945,815

EXPENSESOperations & Maintenance 320,000 324,800 329,672 334,617 339,636 344,731 349,902 355,150 360,478 365,885Operations & Maintenance Contingency Fund 25,000 25,500 26,010 26,530 27,061 27,602 28,154 28,717 29,291 29,877Project Management Fee 75,000 76,500 78,030 79,591 81,182 82,806 84,462 86,151 87,874 89,632Insurance 104,000 106,080 108,202 110,366 112,573 114,824 117,121 119,463 121,853 124,290Property Tax 14,850 14,702 14,554 14,409 14,265 14,122 13,981 13,841 13,703 13,566Leaseholder Payments 88,112 88,112 88,112 88,112 88,112 88,112 88,112 88,112 88,112 88,112Admin/Financial/Legal Management 5,000 5,100 5,202 5,306 5,412 5,520 5,631 5,743 5,858 5,975Production Tax Expense 76,233 77,758 79,313 80,899 81,692 82,492 83,301 84,117 84,942 85,774Warranty Expense 20,000 20,400 20,808 21,224 21,649 0 0 0 0 0Decomm. Fund Pre-Warranty Expiration 0 0 0 0 0 0 0 0 0 0Decomm. Fund Post-Warranty Expiration 0 0 0 0 0 0 0 0 0 179,264Other Expense 0 0 0 0 0 0 0 0 0 0

Total Annual Operating Expenses 728,195 738,951 749,903 761,054 771,582 760,210 770,664 781,296 792,111 982,375

EBITDA & Taxable IncomeEBITDA 2,702,291 2,768,721 2,836,692 2,906,239 2,940,727 2,997,667 3,033,342 3,069,404 3,105,856 2,963,440Depreciation 7,704,000 12,326,400 7,395,840 4,437,504 4,437,504 2,218,752 0 0 0 0Debt Interest Payment 0 0 0 0 0 0 0 0 0 0

Total Annual Expenses 8,432,195 13,065,351 8,145,743 5,198,558 5,209,086 2,978,962 770,664 781,296 792,111 982,375

Taxable Income (26,182,000) (5,001,709) (9,557,679) (4,559,148) (1,531,265) (1,496,777) 778,915 3,033,342 3,069,404 3,105,856 2,963,440

TAXESLocal Owner Income Tax Benefit/(Liability) 17,506 33,452 15,957 5,359 5,239 (2,726) (10,617) (10,743) (10,870) (10,372)Equity Investor Income Tax Benefit (Liability) 1,733,092 3,311,736 1,579,745 530,583 518,633 (269,894) (1,051,053) (1,063,548) (1,076,179) (1,026,832)Federal PTC Value 0 0 0 0 0 0 0 0 0 0Other PTC Value 0 0 0 0 0 0 0 0 0 0Other Tax Credit (Installment Payments) 0 0 0 0 0 0 0 0 0 0Other Tax Credit (Lump Sum) 11,616,000 0 0 0 0 0 0 0 0 0

Total Tax Benefit/(Liability) 13,366,598 3,345,188 1,595,702 535,943 523,872 (272,620) (1,061,670) (1,074,291) (1,087,050) (1,037,204)

AFTER-TAX CASH FLOWSAdd Back Depreciation 7,704,000 12,326,400 7,395,840 4,437,504 4,437,504 2,218,752 0 0 0 0Less Debt Principal Payment 0 0 0 0 0 0 0 0 0 0

Net After-Tax Project Cash Flow (26,182,000) 16,068,889 6,113,909 4,432,394 3,442,182 3,464,599 2,725,047 1,971,672 1,995,112 2,018,807 1,926,236

Local Owner Return (182,000) 160,689 61,139 44,324 34,422 34,646 27,250 19,717 19,951 20,188 19,262Equity Investor Return (26,000,000) 15,908,200 6,052,769 4,388,070 3,407,760 3,429,953 2,697,796 1,951,956 1,975,161 1,998,619 1,906,974

PROJECT RESULTSO & M Rate (% of revenues) 9.3%Capital Cost per kWh $1,936IRR (Years 1-20) 22%Net Present Value (Years 1-20) $13,538,953LOCAL OWNER RESULTSRunning IRR -12% 17% 29% 35% 38% 40% 40% 41% 41% 42%Overall IRR 45%NPV $501,133EQUITY INVESTOR RESULTSRequired Rate of Return 15%Running IRR -39% -12% 1% 8% 13% 15% 17% 18% 19% 19%Overall IRR 19%NPV $6,604,547DEBT COVERAGEDebt Service Coverage Ratio 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

OTHER DETAILSRunning Total of Decommissioning Fund 0 0 0 0 0 0 0 0 0 179,264Running Total of O&M Contingency Fund 25,000 50,500 76,510 103,040 130,101 157,703 185,857 214,574 243,866 273,743









Project Summary



Red Barn Wind Pro FormaYear

CAPITAL EXPENDITURESEquity Investment (Project Cost Less Debt & Grants)

REVENUESkWh/yr PPA Rate ($/kWh)C-BED Rate ($/kWh)Electricity Sales Revenue per PPAElectricity Sales Revenue per C-BEDGreen Tag Rate ($/kWh)Green Tag Sales RevenueOther Tax Credit (Installment Payments)Other Tax Credit (Lump Sum)Production Incentive Payments

Total Annual Revenues

EXPENSESOperations & MaintenanceOperations & Maintenance Contingency FundProject Management FeeInsuranceProperty TaxLeaseholder PaymentsAdmin/Financial/Legal ManagementProduction Tax ExpenseWarranty ExpenseDecomm. Fund Pre-Warranty ExpirationDecomm. Fund Post-Warranty ExpirationOther Expense

Total Annual Operating Expenses

EBITDA & Taxable IncomeEBITDADepreciationDebt Interest Payment

Total Annual Expenses

Taxable Income

TAXESLocal Owner Income Tax Benefit/(Liability)Equity Investor Income Tax Benefit (Liability)Federal PTC Value Other PTC ValueOther Tax Credit (Installment Payments)Other Tax Credit (Lump Sum)

Total Tax Benefit/(Liability)

AFTER-TAX CASH FLOWSAdd Back DepreciationLess Debt Principal Payment

Net After-Tax Project Cash Flow

Local Owner ReturnEquity Investor Return

PROJECT RESULTSO & M Rate (% of revenues)Capital Cost per kWhIRR (Years 1-20)Net Present Value (Years 1-20)LOCAL OWNER RESULTSRunning IRROverall IRRNPV EQUITY INVESTOR RESULTSRequired Rate of ReturnRunning IRROverall IRR NPV DEBT COVERAGEDebt Service Coverage Ratio

OTHER DETAILSRunning Total of Decommissioning FundRunning Total of O&M Contingency Fund

11 12 13 14 15 16 17 18 19 20

59,211,800 58,619,682 58,033,485 57,453,150 56,878,619 56,309,833 55,746,734 55,189,267 54,637,374 54,091,0010.067 0.069 0.071 0.072 0.074 0.075 0.077 0.079 0.081 0.0820.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

3,994,250 4,043,279 4,092,910 4,143,151 4,194,008 4,245,489 4,297,603 4,350,356 4,403,756 4,457,8120 0 0 0 0 0 0 0 0 0

0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.0000 0 0 0 0 0 0 0 0 00 0 0 0 0 0 0 0 0 00 0 0 0 0 0 0 0 0 00 0 0 0 0 0 0 0 0 0

3,994,250 4,043,279 4,092,910 4,143,151 4,194,008 4,245,489 4,297,603 4,350,356 4,403,756 4,457,812

371,373 376,944 382,598 388,337 394,162 400,074 406,075 412,167 418,349 424,62430,475 31,084 31,706 32,340 32,987 33,647 34,320 35,006 35,706 36,42091,425 93,253 95,118 97,020 98,961 100,940 102,959 105,018 107,118 109,261

126,775 129,311 131,897 134,535 137,226 139,970 142,770 145,625 148,538 151,50813,430 13,296 13,163 13,031 12,901 12,772 12,644 12,518 12,393 12,26988,112 88,112 88,112 88,112 88,112 88,112 88,112 88,112 88,112 88,1126,095 6,217 6,341 6,468 6,597 6,729 6,864 7,001 7,141 7,28486,615 87,463 88,321 89,186 90,060 90,943 91,834 92,734 93,643 94,560

0 0 0 0 0 0 0 0 0 00 0 0 0 0 0 0 0 0 0

182,849 186,506 190,236 194,041 197,922 201,880 205,918 210,036 214,237 218,5220 0 0 0 0 0 0 0 0 0

997,149 1,012,186 1,027,492 1,043,071 1,058,928 1,075,068 1,091,496 1,108,217 1,125,237 1,142,561

2,997,101 3,031,093 3,065,418 3,100,080 3,135,080 3,170,422 3,206,107 3,242,139 3,278,520 3,315,2520 0 0 0 0 0 0 0 0 00 0 0 0 0 0 0 0 0 0

997,149 1,012,186 1,027,492 1,043,071 1,058,928 1,075,068 1,091,496 1,108,217 1,125,237 1,142,561

2,997,101 3,031,093 3,065,418 3,100,080 3,135,080 3,170,422 3,206,107 3,242,139 3,278,520 3,315,252

(52,449) (53,044) (53,645) (54,251) (54,864) (55,482) (56,107) (56,737) (57,374) (58,017)(52,449) (53,044) (53,645) (54,251) (54,864) (55,482) (56,107) (56,737) (57,374) (58,017)

0 0 0 0 0 0 0 0 0 00 0 0 0 0 0 0 0 0 00 0 0 0 0 0 0 0 0 00 0 0 0 0 0 0 0 0 0

(104,899) (106,088) (107,290) (108,503) (109,728) (110,965) (112,214) (113,475) (114,748) (116,034)

0 0 0 0 0 0 0 0 0 00 0 0 0 0 0 0 0 0 0

2,892,202 2,925,004 2,958,129 2,991,577 3,025,352 3,059,457 3,093,893 3,128,664 3,163,771 3,199,218

144,610 146,250 147,906 149,579 151,268 152,973 154,695 156,433 158,189 159,961144,610 146,250 147,906 149,579 151,268 152,973 154,695 156,433 158,189 159,961

43% 44% 44% 44% 45% 45% 45% 45% 45% 45%

19% 19% 19% 19% 19% 19% 19% 19% 19% 19%

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

362,113 548,619 738,855 932,896 1,130,818 1,332,699 1,538,616 1,748,653 1,962,890 2,181,411304,218 335,302 367,008 399,348 432,335 465,982 500,302 535,308 571,014 607,434



PROF

ORMA







Project Summary



CHAR

TS







Project Summary





Returns to Investors

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

18,000,000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Year

Ret

urn

($)

Local Owner Return Equity Investor Return




0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

18,000,000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Year

Cas

h Fl

ow ($

)

Electricity Sales Revenue(Including Green Tags)

Annual Revenues

Annual kWh Generation

Returns to Investor


reve

nue

($ in

mill

ions

)

retu

rns

($ in

mill

ions

)ca

sh fl

ow ($

in m

illio

ns)

reve

nue

($ in

mill

ions

)kW

h/ye

ar (i

n m

illio

ns)



Annual kWh Generation

0

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

70,000,000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Year

kWh/

year



Electricity Sales Revenue (Including Green Tags)

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

4,500,000

5,000,000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Year

Sal

es R

even

ue ($

)

Green Tag SalesRevenue

Electricity SalesRevenue per C-BED

Electricity SalesRevenue per PPA



Electricity Sales Revenue (Including Green Tags)

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

4,500,000

5,000,000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Year

Sal

es R

even

ue ($

)

Green Tag SalesRevenue

Electricity SalesRevenue per C-BED

Electricity SalesRevenue per PPA



Annual Revenues

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

4,500,000

5,000,000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Year

Rev

enue

($)

Production IncentivePayments

Other Tax Credit (LumpSum)

Other Tax Credit (InstallmentPayments)

Green Tag Sales Revenue

Electricity Sales Revenue perC-BED

Electricity Sales Revenue perPPA



Annual Revenues

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

4,500,000

5,000,000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Year

Rev

enue

($)

Production IncentivePayments

Other Tax Credit (LumpSum)

Other Tax Credit (InstallmentPayments)

Green Tag Sales Revenue

Electricity Sales Revenue perC-BED

Electricity Sales Revenue perPPA

54.5

43.5

32.5

21.5

1.5

0

1816141210

86420

1816141210

86420

54.5

43.5

32.5

21.5

1.5

0

70

60

50

40

30

20

10

0

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20Year

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20Year

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20Year

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20Year

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20Year



Annual Expenses

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Year

Expe

nse

($)

Depreciation

Less Debt PrincipalPaymentDebt Interest Payment

Other Expense

Decomm. Fund Post-Warranty ExpirationDecomm. Fund Pre-Warranty ExpirationProduction Tax Expense

Admin/Financial/LegalManagementLeaseholder Payments

Property Tax

Insurance

Project Management Fee

Operations & Maintenance



Annual Expenses

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Year

Expe

nse

($)

Depreciation

Less Debt PrincipalPaymentDebt Interest Payment

Other Expense

Decomm. Fund Post-Warranty ExpirationDecomm. Fund Pre-Warranty ExpirationProduction Tax Expense

Admin/Financial/LegalManagementLeaseholder Payments

Property Tax

Insurance

Project Management Fee

Operations & Maintenance

CHAR

TS







Project Summary



tax

($ in

mill

ions

)

expe

nses

($ in

mill

ions

)

14

12

10

8

6

4

2

0



Running Internal Rate of Return

-50%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Year

IRR

(%)

Local Owner Equity Investor




-50%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Year

IRR

(%

)

Local Owner Equity Investor

Calculations Appendix Page 7 of 19

Depreciation - Modified Accelerated Cost Recovery SystemNet Book Value 38,520,000

Mid-Point of Year 1 2 3 4 5 6Beginning Value 38,520,000 30,816,000 18,489,600 11,093,760 6,656,256 2,218,752

MACRS Schedule 20.00% 32.00% 19.20% 11.52% 11.52% 5.76%Depreciation 7,704,000 12,326,400 7,395,840 4,437,504 4,437,504 2,218,752Ending Value 30,816,000 18,489,600 11,093,760 6,656,256 2,218,752 0

Total Depreciation 38,520,000

Depreciation - Straight LineNet Book Value 38,520,000

Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20Beginning Value 38,520,000 36,594,000 34,668,000 32,742,000 30,816,000 28,890,000 26,964,000 25,038,000 23,112,000 21,186,000 19,260,000 17,334,000 15,408,000 13,482,000 11,556,000 9,630,000 7,704,000 5,778,000 3,852,000 1,926,000

Annual Depreciation 1,926,000 1,926,000 1,926,000 1,926,000 1,926,000 1,926,000 1,926,000 1,926,000 1,926,000 1,926,000 1,926,000 1,926,000 1,926,000 1,926,000 1,926,000 1,926,000 1,926,000 1,926,000 1,926,000 1,926,000Ending Value 36,594,000 34,668,000 32,742,000 30,816,000 28,890,000 26,964,000 25,038,000 23,112,000 21,186,000 19,260,000 17,334,000 15,408,000 13,482,000 11,556,000 9,630,000 7,704,000 5,778,000 3,852,000 1,926,000 0

PTC Double DippingYear 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

$/kWh Defined by IRS 0.021 0.021 0.022 0.022 0.023 0.023 0.024 0.024 0.025 0.025 0 0 0 0 0 0 0 0 0 0Total Potential PTC FALSE FALSE FALSE FALSE FALSE FALSE FALSE FALSE FALSE FALSE 0 0 0 0 0 0 0 0 0 0

Amount Able to be Utilized by Project 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0Total Government Incentives 11,816,000 11,816,000 11,816,000 11,816,000 11,816,000 11,816,000 11,816,000 11,816,000 11,816,000 11,816,000 11,816,000 11,816,000 11,816,000 11,816,000 11,816,000 11,816,000 11,816,000 11,816,000 11,816,000 11,816,000

Total Available PTC 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0PTC Utilized by Project 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Debt Service ScheduleYear 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Beginning Balance 12,338,000 12,338,000 12,338,000 12,338,000 12,338,000 12,338,000 12,338,000 12,338,000 12,338,000 12,338,000 12,338,000 12,338,000 12,338,000 12,338,000 12,338,000 12,338,000 12,338,000 12,338,000 12,338,000 12,338,000Interest Payment 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Principal Payment 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0Ending Balance 12,338,000 12,338,000 12,338,000 12,338,000 12,338,000 12,338,000 12,338,000 12,338,000 12,338,000 12,338,000 12,338,000 12,338,000 12,338,000 12,338,000 12,338,000 12,338,000 12,338,000 12,338,000 12,338,000 12,338,000



Calculations Appendix Page 7 of 19

Depreciation - Modified Accelerated Cost Recovery SystemNet Book Value 38,520,000

Mid-Point of Year 1 2 3 4 5 6Beginning Value 38,520,000 30,816,000 18,489,600 11,093,760 6,656,256 2,218,752

MACRS Schedule 20.00% 32.00% 19.20% 11.52% 11.52% 5.76%Depreciation 7,704,000 12,326,400 7,395,840 4,437,504 4,437,504 2,218,752Ending Value 30,816,000 18,489,600 11,093,760 6,656,256 2,218,752 0

Total Depreciation 38,520,000

Depreciation - Straight LineNet Book Value 38,520,000

Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20Beginning Value 38,520,000 36,594,000 34,668,000 32,742,000 30,816,000 28,890,000 26,964,000 25,038,000 23,112,000 21,186,000 19,260,000 17,334,000 15,408,000 13,482,000 11,556,000 9,630,000 7,704,000 5,778,000 3,852,000 1,926,000

Annual Depreciation 1,926,000 1,926,000 1,926,000 1,926,000 1,926,000 1,926,000 1,926,000 1,926,000 1,926,000 1,926,000 1,926,000 1,926,000 1,926,000 1,926,000 1,926,000 1,926,000 1,926,000 1,926,000 1,926,000 1,926,000Ending Value 36,594,000 34,668,000 32,742,000 30,816,000 28,890,000 26,964,000 25,038,000 23,112,000 21,186,000 19,260,000 17,334,000 15,408,000 13,482,000 11,556,000 9,630,000 7,704,000 5,778,000 3,852,000 1,926,000 0

PTC Double DippingYear 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

$/kWh Defined by IRS 0.021 0.021 0.022 0.022 0.023 0.023 0.024 0.024 0.025 0.025 0 0 0 0 0 0 0 0 0 0Total Potential PTC FALSE FALSE FALSE FALSE FALSE FALSE FALSE FALSE FALSE FALSE 0 0 0 0 0 0 0 0 0 0

Amount Able to be Utilized by Project 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0Total Government Incentives 11,816,000 11,816,000 11,816,000 11,816,000 11,816,000 11,816,000 11,816,000 11,816,000 11,816,000 11,816,000 11,816,000 11,816,000 11,816,000 11,816,000 11,816,000 11,816,000 11,816,000 11,816,000 11,816,000 11,816,000

Total Available PTC 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0PTC Utilized by Project 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Debt Service ScheduleYear 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Beginning Balance 12,338,000 12,338,000 12,338,000 12,338,000 12,338,000 12,338,000 12,338,000 12,338,000 12,338,000 12,338,000 12,338,000 12,338,000 12,338,000 12,338,000 12,338,000 12,338,000 12,338,000 12,338,000 12,338,000 12,338,000Interest Payment 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Principal Payment 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0Ending Balance 12,338,000 12,338,000 12,338,000 12,338,000 12,338,000 12,338,000 12,338,000 12,338,000 12,338,000 12,338,000 12,338,000 12,338,000 12,338,000 12,338,000 12,338,000 12,338,000 12,338,000 12,338,000 12,338,000 12,338,000



CHAR

TS







Project Summary




IRR

(%)

50%40%30%20%10%

0%-10%-20%-30%-40%-50%

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20Year

red barn wind financialsummary

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