Why Not Wind?

THE ENVIRONMENTAL BENEFITS that brought wind energy into the spotlight two decades ago are still clear. But today, new technology and more sophisticated forecasting techniques have brought wind into the forefront of energy generation as one of the least expensive forms of energy.

WIND IS A CLEAN ENERGY CHOICE, WIDELY SUPPORTED BY THE PUBLIC. Wind has no issues with airborne toxins, acid rain, global warming emissions or hazardous waste. No local water supplies are impacted. No irreplaceable resources are consumed.

WIND IS A LEAST-COST RESOURCE. With a cost-per-kilowatt roughly half that of geothermal and one-fifth that of solar, wind energy is the clear economic winner among renewables. Even when stacked side by side with traditional energy sources, wind is highly cost competitive and can be firmed and shaped to meet the needs of energy providers.

Such compelling economics and environmental support have led to a worldwide surge in wind generation. In any growth industry, there are leaders who get it right. PPM Energy is one of them. With a portfolio of more than 800 MW of wind (including three of the six largest U.S. wind farms), we are one of the leading U.S. providers of wind energy.

A Robust Marketplace

BETTER TURBINES AND ECONOMIES OF SCALE have sent the cost-permegawatt for wind plunging 90% over the last 20 years. Better forecasting capabilities, fair transmission policies and energy providers' experience in integrating wind have improved reliability and allowed for greater market access.

The marketplace has taken notice. Wind is now the fastest growing energy resource in the world.

Since 2000, wind power worldwide has doubled to more than 39,000 MW of generating capacity. U.S. wind energy growth has averaged more than 50% since 1999, with an installed capacity in excess of 6,000 MW in 2003. Development is even more rapid in Europe where the wind energy industry is more mature.

Decreasing costs, long-term fi xed prices and efforts to reduce air pollution, acid rain and greenhouse gas emissions will further drive this robust growth. Studies show that by 2010, worldwide wind power capacity is expected to soar to three times that of today -- still only 1.5% of total power generation. This underscores the tremendous potential that remains beyond 2010.

Companies such as ScottishPower plc -- one of the leading U.K. wind developers and PPM Energy's corporate parent -- are developing both on- and off-shore wind projects to meet the growing demand.

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The Business Case for Wind

Always a sound environmental choice, wind has evolved into a sound business choice as well. Wind is now a core option for any balanced energy portfolio.

WIND IS A LEAST-COST RESOURCE. Declining costs have brought wind solidly in line with other energy sources. PPM Energy has proven that wind can prevail over other energy sources in competitive bids.

WIND INTERMITTENCY CAN BE MANAGED. With improved forecasting and creative product development, wind energy can be shaped and fi rmed to meet our customers' needs. PPM has tailored its products and services to directly address energy providers' concerns related to integrating wind power into their supply portfolio.

WIND HAS LONG-TERM PRICE CERTAINTY. Though initial capital costs are high, the "fuel" used by wind plants is free throughout the project life. As a result, wind does not suffer from the fuel price fluctuations that affect thermal generation. PPM Energy offers fixed-price, longterm contracts that provide a strong hedge against fuel and electricity market price risk and volatility.

WIND OFFERS PORTFOLIO ROBUSTNESS AND DIVERSIFICATION. Wind offers a non-fossil fuel option that is available, affordable and contributes to the security of the U.S. energy supply. Wind power can also prove complementary to other types of generation such as hydro and natural gas.

WIND IS RELIABLE. Dramatic technology and design improvements allow turbines to generate electricity in all but the most extreme weather conditions. PPM Energy's advanced weather forecasting technology and innovative "day ahead" and "monthly firm" products make wind energy more predictable.

WIND CONTRIBUTES TO ECONOMIC DEVELOPMENT. Jobs created during construction and maintenance, royalties paid to land owners, and property taxes that fund local services give communities a direct stake in the success of wind generation facilities.

WIND OFFERS A REGULATORY COMPLIANCE HEDGE. As more and more governments legislate emissions controls and renewable portfolio requirements, wind is an even more valuable portfolio asset.

WIND FACILITY CONSTRUCTION TAKES MONTHS RATHER THAN YEARS. Once permitted, new or expanded wind facilities can be built out in a matter of months. An average 75 MW wind facility can come on line in fi ve months, from road construction to turbine erection.

WIND IS COMPATIBLE WITH OTHER LAND USES. Unlike traditional power plants, wind does not require large acreage to buffer facilities. Normal activities such as farming can take place right up to the base of turbines. Only 1% to 2% of the total land covered by a wind facility is impacted.

WIND DEMONSTRATES A COMMITMENT TO THE ENVIRONMENT. Wind is widely accepted as a sustainable resource that helps energy providers meet their environmental goals.

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