Clean Line Energy National Association of State Utility

Clean Line Energy National Association of State Utility Consumer Advocates Charleston SC Annual Meeting June 2012 1

Clean Line’s projects connect the best wind resources to load centers Clean Line projects Rock Island Grain Belt Express Centennial West Plains & Eastern Clean Line’s projects connect the regions where wind power is most abundant; existing extrahigh voltage transmission lines do not Existing High Voltage Transmission Lines (500– 999 k. V AC and HVDC) 2

Clean Line Energy Partners Entrepreneurial team, focus, and capital to connect renewable energy with demand • Clean Line Energy focuses on building transmission lines to connect renewable resources to load centers • Clean Line seeks to develop, own and operate long haul, high voltage direct current (HVDC) transmission lines across the United States, helping solve one of the most vexing challenges to a cleaner energy future • Clean Line’s principals, partners and investors bring unique perspective, experience and focus to transmission development along with a track record of success in energy project development Strong wind resources Large demand centers Integrating large clean energy sources with demand centers 3

HVDC is the most efficient method to transmit large amounts of electricity over long distances • More efficient — Lower line losses • Lower cost — Requires less infrastructure, results in lower costs and lower prices for delivered renewable energy • Improved reliability — Control of power flow enhances system stability and lowers cost of integrating wind • Smaller footprint — Use narrower right-of-way than equivalent Alternating Current (AC) AC Footprint DC Footprint 4

Transmission critical link and smallest part of the rate dollar Source: www. nerc. com 60 ¢ 7¢ 28 ¢ 5¢ 5

Many transmission projects driven by large differences in regional costs of renewables and state policy goals Renewable generation costs, by region Source: IHS (en. Xco Renewables Directions Conference, March 28, 2012) 6

Wind energy is cost competitive with gas-fired plants and can help economically meet renewables demand Levelized Cost of Energy $ / MWh Transmission Generation Note: Mid-point of Lazard’s LCOE estimates, except for lower-end for coal (no carbon capture). Wind includes lower-end LCOE estimate (for best quality wind) + $25/MWh transmission cost. Long-term natural gas price of $5. 5/MMBTU Source: Lazard 7

Connecting high capacity factor wind provides important results for utilities and consumers • Price certainty • • Risk mitigation • • • Public acceptance • • Access low cost wind resource that is most competitive with conventional energy sources Lock in attractive long-term purchases with fixed pricing Diversify generation mix to reduce exposure to volatile commodity prices and policy uncertainty Extend power sources geographically Direct delivery to region reduces transmission risk, locational marginal pricing impact and cost of congestion Cleaner energy consistently ranked by customers as preferred power supply Sustainability is a key corporate metric Support domestic infrastructure investment, jobs, and manufacturing supply chain 8

What’s working in favor of independent transmission PUBLIC ACCEPTANCE AT THE LOCAL LEVEL 9

What’s challenging for independent transmission 10

Clean Line Energy www. cleanlineenergy. com