k road power

K Road Power Overview | December 2011

CONFIDENTIAL AND PROPRIETARY

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1. Introduction to K Road Power

2. Development Strategy and Project Portfolio

3. Near-Term Project Pipeline

K Road Moapa

Indian Reservation Development Strategy

4. K Road Development Experience (Plant List)

Table of Contents

Introduction to K Road Power

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• Independent Power Producer (“IPP”) that develops, constructs, owns and operates utility-scale solar power facilities

Founded by William Kriegel, former Chairman and CEO of Sithe Energies Inc.

Backed by Global Fortune 500 Investor (Barclays PLC)

Team backgrounds include AES, Goldman Sachs, Sithe, Trina Solar and Tessera Solar

2,300 MW solar pipeline across the United States

• The K Road team has developed and operated over 20,000 MW of power assets

Developed over 260 MW of utility-scale solar facilities in Europe and the United States

Record of environmental excellence – Sithe Energies’ “Independence Plant” formally endorsed by Sierra Club for improving air quality

• K Road promotes sustainable, renewable energy in Indian Country :

Create economic opportunity: fair share for Indian tribes: Indian Country is 25% of Indian/BLM total land base yet less than .25% of solar projects are on reservatins

Respect for tribal sovereignty

Protect the natural environment and reduce society’s greenhouse gas emissions

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Introduction to K Road Power

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Name Title Previous Experience

William Kriegel Chairman Chief Executive Officer

Founder and CEO of Sithe Energies, Inc.

CEO of Boston Generating, LLC

CEO of Vivendi North America

Gerrit Nicholas Managing Partner Head of North American Environmental Commodities at Goldman Sachs

Head of Development and M&A for the AES Corporation in Southern Europe

Thomas Tureen Partner Counsel, Native American Rights Fund

Chairman, Tribal Assets Management

Mark Friedland Managing Director, Development

Vice President, Corporate Planning for Sithe Energies, Inc.

Associate Director, Investment Banking with SBC Warburg

Sean Gallagher Managing Director, Government Relations

Vice President, Market Strategy and Regulatory Affairs at Tessera Solar

Director of Energy Division of California Public Utilities Commission

Ralph Grutsch Managing Director, Engineering and Construction

Executive Vice President, Operations for Sithe Energies, Inc.

Co-Founder and President, Energy Factors, Inc

Andrew Klump Managing Director, Procurement and Quality Control

Managing Director, Clean Energy Associates

VP Business Development for Trina Solar Limited

Dan O’Shea Managing Director, Development and Risk Management

Senior Vice President and General Counsel, Sithe Energies, Inc.

Associate with Latham & Watkins

David Sundstrom Managing Director,

Solar Operations President and Country Manager of AES Solar Italia

Country Manager of AES Panama

• K Road Management has decades of experience developing, constructing and operating over 20,000 MW of generation

K Road Power Management Team

Development Strategy and Project Portfolio

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● K Road targets the Southwest US due to aggressive Renewable Portfolio Standards (“RPS”)

● State-imposed RPSs require utilities to procure or generate 15% to 33% of retail electricity sales from renewable resources by certain milestone years

● Utilities will be under financial penalties from Utility Commissions if RPS is not met

● Political and social motivations are driving utilities to procure from credible developers and projects with low environmental impact

● K Road has a dual development strategy

1. Greenfield Projects on Indian Reservations

2. Acquisition of strong projects already in development

RPS in the Southwest

CA:

20% by 2010

33% by 2020

NV:

25% by 2025

AZ:

15% by 2025

CO:

30% by 2020

NM:

20% by 2020

UT:

20% by 2025

Source: Derived from data in: EEI, EIA, LBNL, PUCs, State legislative tracking services, Database of State Incentives for Renewables and Efficiency, and the Union of Concerned Scientists.

K Road Target Markets

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• Large, flat tracks of land with high solar resources and close proximity to transmission infrastructure lead to strong project economics

Project Pipeline – Over 2,000 MW in Development

NV

CA

NM AZ

TX

CO

NE

KS

OK

UT

San Franciscso

Los Angeles

San Diego

Las Vegas

Salt Lake City

Colorado Springs

Albuquerque

El Paso

Tucson

Phoenix

NV

CA

NM AZ

TX

CO

NE

KS

OK

UT

5–6 DNI

6–7 DNI

7+ DNI

NV

CA

NM AZ

TX

CO

NE

KS

OK

UT

San Franciscso

Los Angeles

San Diego

Las Vegas

Salt Lake City

Colorado Springs

Albuquerque

El Paso

Tucson

Phoenix

NV

CA

NM AZ

TX

CO

NE

KS

OK

UT

5–6 DNI

6–7 DNI

7+ DNI

Coal plant

230 kV

500 kV

San Franciscso

Los Angeles

San Diego

Las Vegas

Salt Lake City

Colorado Springs

Albuquerque

El Paso

Tucson

Phoenix

5–6 DNI

6–7 DNI

7+ DNI

Coal plant

230 kV

500 kV

MW: 400 800

5–6 DNI

6–7 DNI

7+ DNI

Coal plant

230 kV

500 kV

Advanced / late stage project

Moapa

350 MW

Strategically Located Projects

California

~1,250 MW In Development

Colorado

400 MW In Development

Nevada

~350 MW In Development

Indian Country Activity

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Moapa Site Map

● Moapa is a 350 MW project located on Moapa Band of Paiutes Reservation ~30 miles northeast of Las Vegas, NV

− Land control of over 2,000 acres

● Located on a superior site with high insolation (7.0+ DNI) and direct connection into California transmission networks

● Currently shortlisted by LADWP and entered in SCAPPA RFP process

● 2011 BLM Priority Renewable Energy Project

● Environmental and lease approval process well advanced; public meetings on DEIS last week

● Strong local support for the project from stakeholders including tribe, unions and environmental groups

● No new transmission needed to deliver power to Los Angeles or Las Vegas

● Target PPA closure in 2012

Moapa Reservation

Moapa Project

Las Vegas

NV

AZ

CA

Project Location

K Road Moapa Overview

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● Indian reservation lands offer numerous development advantages for greenfield utility-scale solar projects:

− Large land base often close to transmission and load demand

− Absence of state jurisdiction allows for efficient permitting with the Bureau of Indian Affairs as lead agency

− Economic development and employment opportunity for tribes

● K Road has strong relationships with various tribes and a first mover advantage.

● Model documentation based on respect for tribal sovereignty and anticipation of tribal needs

Moapa Map Attractive Land for Solar Development

Source: Company

Reservations Inside Load Centers

Source: National Atlas.

Arizona

Indian Reservation Fort McDowell

Salt River

Gila River

Gila Bend

Scottsdale

Mesa

Tempe

Phoenix

Indian Reservation Development Strategy

K Road Development Experience

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Plant Name Type Contract (C) / Merchant (M)

Power Pool / Country / Purchaser

Fuel Type MW Gross

Conemaugh Thermal M PJM Coal 1,711

Keystone Thermal M PJM Coal 1,711 Fayette* CT C LCRA, Texas Coal 1,640

Mystic* Thermal/CC M NEPOOL Oil / Gas 1,600 Cartagena* CC C Spain / Gas de France Gas 1,200

Independence* CC C ConEd / Niagra

Mohawk Gas 1,040

Tisza II* Thermal C Hungary / MVM Gas 920

Fore River* CC M NEPOOL Oil 800 New Boston Thermal M NEPOOL Gas/Oil 718

Wyman Thermal M NEPOOL Oil 619 Gilbert CT M PJM Gas / Oil 336

Shawville Thermal M PJM Coal 608 Mystic 7 Thermal/CC M NEPOOL Oil/Gas 575

Portland Thermal/GT M PJM Coal / Gas / Oil 571

Sayreville Thermal/GT M PJM Oil / Gas 496 Merida* CC C Mexico Gas 484

AES Puerto Rico* CT C PEPCO Coal 454

San Roque* Hydro C Nat’l Power Corp

(Philippines Utility) Water 345

COCO 1&2 CC C Thai Utility Gas 310 Titus Thermal/GT M PJM Coal / Gas / Oil 281

Werner CT M PJM Oil / Gas 252 Ichon CC C Korean Utility Gas 230

AES Hawaii* CT C Hawaiian Electric Co. Coal 200 Seward Thermal M PJM Gas 198

Glen Gardner CT M PJM Gas / Oil 184 West Midway CT M NEPOOL Gas / Oil 145

Smithfield* CC C Integral Energy Gas 162 Cardinal* CC C Ontario Hydro Gas 152

Warren Thermal/GT M PJM Coal / Gas / Oil 150

Samutprakarn CC C Thai Utility Gas 126 Tapal* Reciprocating C Karachi Electric Oil 126

Esti* Hydro C Panama Utilities Water 120

Previous Development Experience

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Fuel Type MW Gross

Tangshan* Thermal C North China PG Coal 100

Massena* CC M NYPP Gas / Oil 86 Odgensburg* CC M NYPP Gas / Oil 83

Greeley* CC C PSCo of CO Gas 72 Hunterstown CT M PJM Gas / Oil 71

Wayne CT M PJM Oil 66 Houjie* Reciprocating C Dongguan PB Oil 66

Batavia* CC M NYPP Gas 58 Sterling* CC M NYPP Gas 58

Oxnard* CC C SCE Gas 48 Changzhou* CT C China Utility Oil 48

Mountain CT M PJM Oil 47 Tolna CT M PJM Oil 47

Naval Station* CC C SDG&E Gas 45 Cellino San Marco* Solar – PV C Italy Solar 43

Farmingham CT M NEPOOL Oil 30 North Island* CC C SDG&E Gas 37

SEGS III* Solar Thermal C SCE Solar/Gas 30 Piney* Hydro M PJM Water 28

Kenilworth* CC C GPU Gas 26

Il Tezro* Solar – PV C Italy Solar 24 Hamilton CT M PJM Oil 23

Orrtanna CT M PJM Oil 23 Shawnee CT M PJM Oil 23

Blossberg CT M PJM Gas 23 Naval Training Center* CC C SDG&E Gas 23

Feather River* Thermal C PG&E Biomass 20 Deep Creek* Hydro M PJM Water 18

Allegheny 9* Hydro C Western Pennsylvania

Power / NY State Electric and Gas Co.

Water 18



Water 14


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Fuel Type MW Gross

Allegheny 6 * Hydro C Western Pennsylvania


Water 9

Bypass* Hydro C Idaho Power Water 10



Water 10

Hazleton* Hydro C Idaho Power Water 9

Francavilla* Solar – PV C Italy Solar 8 Torchiarolo* Solar – PV C Italy Solar 8

Soemina* Solar – PV C Italy Solar 7 Rock Creek* Hydro C PG&E Water 4

Cocomeri* Solar – PV C Italy Solar 4 Montgomery Creek* Hydro C PG&E Water 3

Latina* Solar – PV C Italy Solar 3 Francofonte* Solar – PV C Italy Solar 3

Ugento* Solar – PV C Italy Solar 3 Elk Creek* Hydro C Idaho Power Water 2

Ivy River* Hydro C Carolina Power &

Light Water 1

*Developed by K Road team member. Other Facilities were acquired and operated by team member. The list above is not an exhaustive.


Thank You www.kroadpower.com

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