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

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BackgroundBackground

WindShare I(Share Capital Co-op)

Ex Place Turbine

(Joint Venture)

THESIToronto Hydro Energy Services

Current Structure

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BackgroundBackground

• WindShare I AGM - February 2006 Reviewed several

new lakeshore turbine investment scenarios

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BackgroundBackground

• Constricting factors: Poor pricing Lack of PPA (power

purchase agreement) Height restrictions -

preventing use of more efficient turbines

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BackgroundBackground

• SOC (Standard Offer Contract)

Developments <10 Meg (ExPlace 650kw)

Expected price: 11c/kWh 20 year contract Indexed to inflation

March 2006

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BackgroundBackground

• Impact of SOCs: Improves economics of

ExPlace turbine Can’t overcome height

restrictions - preventing use of more efficient turbines

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BackgroundBackground

• AGM Conclusion:

we must look elsewhere for our next investment

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Lakewind OverviewLakewind Overview

• WindShare II created by TREC to develop Lakewind

• Joint venture with local cooperative: Countryside Energy Coop (Milverton)

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Lakewind–Bervie ProjectLakewind–Bervie Project

• Community wind power project east

of Bervie, near Kincardine

• 900 acres

• Existing wind study

• Adjacent interconnect

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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%

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Offering Statement Offering Statement

• Capital target: $20 million

• Risks

• Schedules

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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)

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Proposal to WindShare I MembersProposal to WindShare I Members

• Merger between WindShare I and WindShare II

• Create one WindShare share capital cooperative

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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)

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Benefits of MergerBenefits of Merger

• Social WindShare I: reputation &

experience CEC: Local partner & rural

perspective

• Environmental

• Economic Economies of scale Standard Offer Contract

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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%

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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

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