Transcript www.duke-energy.com

Gail Windpower
Project
Manistee and Benzie Counties, Michigan
Growing A Sustainable Community with Renewable Energy
Agenda
 About Duke Energy
 The Case for Wind Energy in Michigan
 Project Overview
 Landowner Benefits
 Community Benefits
 Respect for the Environment
 Safety
 Development and Construction Process
 Next Steps
www.duke-energy.com/gailwind
Duke Energy…
 Is one of the largest electric power
companies in the U.S.
 Is headquartered in Charlotte, North
Carolina
 Has more than 18,000 employees
 Is a Fortune 500 company traded on
the NYSE under the symbol DUK
 Supplies and delivers electricity to
approximately 11 million people in
the U.S.
www.duke-energy.com/gailwind
Duke Energy…
 Outperformed peer utilities during the recession and is
known for its consistently strong financial performance
 Was recognized again in 2010 as one of only 100
corporations to make the Ethisphere Institute’s list of the
“World’s Most Ethical Companies”
“The award is another reminder that ‘how’ we do
business is as important as ‘what’ we achieve.”
Jeff Browning
Vice President-Audit Services
Chief Ethics and Compliance Officer
www.duke-energy.com/gailwind
The Way We Do Business
At Duke Energy, we’re
committed to sustainability –
doing business in a way
that’s good for people, the
planet and profits.
www.duke-energy.com/gailwind
Duke Energy’s Commitment to Renewable Power
 Duke Energy has nine wind power
projects totaling 986 megawatts
(MW) already in operation
• The 99-MW Campbell Hill wind
farm near Casper, Wyo.
 Duke Energy has 5,500 MW of
potential wind power projects under
development in 15 states
www.duke-energy.com/gailwind
Duke Energy’s Commitment to Renewable Power
 Duke Energy is also growing its solar power
business
• $50 million program to install rooftop
solar panels on select customers’
properties in N.C.
• Owns/operates the largest solar
photovoltaic project in Texas, and
several smaller solar farms
 Duke Energy has operated hydroelectric
generation stations since 1904
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The Case for Wind Energy in Michigan
 Michigan is almost totally dependent on imported fuels
 70 cents of every dollar spent on energy goes over state
lines
• 100% of the coal and uranium we use
• 97% of petroleum products
• 80% of the natural gas
Source: http://www.dleg.state.mi.us/mpsc/reports/energy/energyoverview/
www.duke-energy.com/gailwind
The Case for Wind Energy in Michigan
 Michigan ranks 14th in
nation for wind
 Including off-shore wind
moves Michigan to #3
rank in the nation
 One of only four states
rated with sufficient
industrial capacity to
manufacture, innovate,
and deploy wind
technology.
www.duke-energy.com/gailwind
Project Overview
 Duke Energy will own and operate the Gail Windpower
Project
• Duke Energy owns DEGS Wind I, LLC, which will
develop, construct and operate the wind farm
 The full 200 MW project would consist of just over 100 wind
turbines
 The final turbine has not yet been selected but is
anticipated to produce between 1.8 and 2.3 MW
 Duke Energy will commit to build the project once a longterm power purchase agreement (PPA) is in place
www.duke-energy.com/gailwind
Landowner Benefits
 Participating landowners will enter into a contract with Duke
Energy Generation Services (DEGS), a subsidiary of Duke
Energy Corp.
 Contract length: 25 years
 DEGS pays Annual Fees to all landowners holding signed
leases (the lessors)
 DEGS pays Wind Turbine Fees to landowners with turbines
installed on property
www.duke-energy.com/gailwind
Landowner Benefits
 What makes wind energy unique: leased land may be used
for other purposes, including agriculture, recreation, etc.
 Landowner income generated from wind energy:
• Does not require an up front expenditure of capital
• Is not susceptible to drought, flooding, etc.
www.duke-energy.com/gailwind
Community Benefits
 Approximately 150 construction jobs will be created plus several
long-term positions
 Indirect economic benefits to hotels, gas stations, local
suppliers and hardware companies, etc (anticipated $10 million
in spending during construction and millions of dollars annually)
 Tax revenues for Manistee and Benzie counties and
participating townships is estimated at $68 million over the life
of the project
 Help control future millage increases
 A single 1 MW turbine displaces 1,800 tons of carbon dioxide
each year (equivalent to 360,000 tons via Gail Windpower)
www.duke-energy.com/gailwind
Community Benefits
• Payments to Landowners
• $1 Million per year
• County and Township
Property Tax Revenues
• Over $1 Million/year
• Jobs
• Construction (150+ jobs)
• Operations (4-5 fulltime)
Direct Impacts
Indirect and
Induced Impacts
• Construction Phase (local
suppliers, hotels, gas stations,
etc.)
• 20-30 additional positions
• Over $10 million in spending
• Operational Phase (housing,
local suppliers, local schools)
• Estimated 15-20 new jobs
• Estimated $5 million/year
• Total Economic Benefit =
• Over $200 million
• Total Employment
• Over 150 jobs during
construction
• Estimated 20-25 long term
local jobs
Totals
(Construction and
Operations)
www.duke-energy.com/gailwind
Respect for the Environment
 Duke Energy is working with all appropriate state, county and
local agencies to consider potential impacts of construction and
wind power operations including:
• An evaluation of federal and state species
and habitats
• A review for compliance with local
ordinances and zoning
• Siting evaluation to limit impact to viewshed
 This information helps us develop impact avoidance and
mitigation plans
www.duke-energy.com/gailwind
Respect for the Environment
Watching out for wildlife
 Wind farms are generally considered to have minimal
impact on birds and other forms of wildlife
 The average wind turbine kills 1-2 birds per year –
dramatically less than many other manmade structures
such as buildings, bridges, billboards, cars, trains and
planes*
 Of every 10,000 bird fatalities, only one is caused by a
wind turbine*
* Source: American Wind Energy Association
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Safety
Wind is one of the safest ways to produce electricity
today
• Multiple safeguards for lightning, fire, and mechanical
malfunctions are an integral part of design
• Automatically shut off in excessive wind conditions
• Zero greenhouse gas and other emissions
• No hazardous wastes
 Operations at Duke’s wind farms are monitored 24
hours a day, 7 days a week
www.duke-energy.com/gailwind
Development and Construction Process
First phase: project development
• Landowner discussions and leases
• Evaluation of wind data
Second phase: permitting process, siting studies, power
purchase agreements (PPAs) with utility companies
www.duke-energy.com/gailwind
Development and Construction Process
Third phase: construction
• Access roads and buildings
• Turbine foundations
• Tower erection
 Fourth phase: project
commissioning
www.duke-energy.com/gailwind
Development and Construction Process
 Fifth phase: commercial
operation
• Clean energy production
• Sale of power to energy
companies
• Revenue payments to
landowners
www.duke-energy.com/gailwind
Next Steps
Schedule an appointment with Lindi Milner, Leasing Agent to
review/sign the lease agreement
• Lindi Milner, Leasing Agent
• Gail Windpower Project Development Group
• [email protected]
• Office: (231) 882-9626
• Cell: (231) 499-4342
Visit www.duke-energy.com/gailwind for more information
www.duke-energy.com/gailwind