Offshore Wind Development Bluewater Wind LLC Peter Mandelstam, Founder and President

1. Offshore Wind DevelopmentBluewater Wind LLCPeter Mandelstam, Founder and President Michigan Wind Energy Conference 2009 Detroit Cobo Hall

3. Category Company Wind turbine Vestas EPC Contractor Fluor Owner�s Engineer Ramboll Permitting Tetra Tech Offshore Electrical Engineering SEAS Interconnection/Onshore Electrical Engineering Energy Initiatives Group Electrical Equipment Supply and Installation ABB Wind Resource Assessment AWS Truewind Wind Resource Assessment Garrad Hassan Wind Resource Assessment EMD Marine Field Studies Aqua Survey Marine Field Studies Ocean Surveys Federal Regulatory Affairs Hill & Kehne Insurance Marsh The Bluewater Wind Team One or more members have participated in the development of 23 of the world�s 30 offshore wind parks

4. Bluewater Wind:Five Pillars of a Wind Project Wind Resource Site Control / Access Permits Interconnection to Grid Buyer of Energy

5. Avg. winds stronger than 18 mph Constructible water depths No significant water use conflicts Environmentally compatible areas Accessible transmission & ports Large available project area footprint

6. Outlook for US offshore projects is very good Most projects have are progressing and are awaiting maturity of the regulatory rules and the availability of wind turbine partners willing to manufacture offshore machines for the US market. Outlook for US offshore projects is very good Most projects have are progressing and are awaiting maturity of the regulatory rules and the availability of wind turbine partners willing to manufacture offshore machines for the US market.

7. Important Drivers for Offshore Wind Policy - RGGI: 10 participating states, successful auctions - Increasing number of states with RPS requirements - Potential national RPS in 2009 - Increasing costs of carbon-based technologies Offshore Resources - Stronger, more consistent winds near load centers - Decreased access to high wind land-based sites - Fewer wildlife barriers far offshore (avian and bat) Market Signals - Rising fossil fuel prices - Climate change considerations; emissions reduction requirements - Economies of scale

8. Bluewater�s project portfolio includes the following RPS states: Delaware: 20% by 2019 New Jersey: 22.5% by 2021 New York: 25% by 2013 Rhode Island: 16% by 2020

9. Supply Aligned With Demand 28% of coastal states use 78% of the electricity in the U.S.

10. The Future of Fossil Fuels? National stimulus legislation supports renewable energy development Volatility of fossil fuel prices = risk and unpredictability Emerging issue of national energy security: lessen imports by supporting domestic energy sources Global warming on political agenda Coal plants already being reconsidered/avoided

11. Delaware Project

12. Delaware � The RFP In 2006, Delmarva Power & Light customers saw an average rate increase of 59%. May 1, 2006 - Delaware Legislature enacted House Bill 6 - encouraged new generation sources that provide stable energy prices - offer long term power purchase agreements (PPA) November 1, 2006 � Delmarva issues approved RFP for new generation under long-term contracts. Entire RFP process available at http://depsc.delaware.gov/irp.shtml

13. Delaware � The Proposal On December 22, 2006, Bluewater submitted bids for offshore wind parks. Each is a 600 MW facility located approx 12 to 17 nm off the coast of Delaware. Bluewater was competing against a natural gas combined cycle plant and a coal-fired integrated gasification combined cycle facility. The three proposals are available online: http://depsc.delaware.gov/electric/irp/rfp_c.shtml

14. Delaware � The Selection May 8, 2007 � PSC voted unanimously to order Delmarva to negotiate with Bluewater for an offshore wind contract. The two losing bidders, the coal plant and the NG plant, were voted to compete against each other to act as Bluewater's backup facility.

15. Power Purchase Agreement (PPA) with Delmarva Power & Light

16. Term Sheet with Delaware Municipal Electric Corporation Supply of energy, capacity, and RECs to nine municipally-owned electric distribution utilities 20 year agreement Valued at $200 - $300 million over life of contract

17. Positive Economic Impact Coming to Delaware $1.6 Billion investment (450 MW park) $200+ million direct economic impact for Delaware State-wide economic development: Delaware as offshore staging hub Brings up to 500 construction and up to 80-100 O&M jobs to Delaware Brings large contracts to Delaware ports Construction Operations and Maintenance Wind technician training at DelTech Delaware union jobs New businesses locate in places where electricity is affordable and stable-priced Increased tourism by 2.5% (University of Delaware)

18. Supporters of the Bluewater Delaware Wind Park

19. Public Support for BluewaterPolitical Cartoons

20. Next Steps

21. Example Offshore Wind Park Layout

22. Met Tower Installation Met Tower Designs

23. Permitting Studies Avian studies Marine biological studies (mammals, finfish, turtles, shellfish) Benthic and fisheries habitat assessment Water quality studies Cultural surveys Navigation and FAA studies Wetlands and other terrestrial systems

25. Sub-sea Electrical Cable InstallationCable-laying Vessel at Work

27. Turbine InstallationAssembling a Tower and Lifting a Bunny Ear

28. Lessons From Delaware Success Engage the public early and often: Identify all stakeholders Educate, educate, educate Honest and transparent communication Visualizations play a critical role in acceptance

29. Thank You