Windfall from the Windfarm

Sherman County, OR

Klondike Overview

Located in Sherman County, OR 7 miles east of Wasco

24 MW capacity from 16 turbines Developed by Northwestern Wind

Power On-line December 2001

Just before expiration of Production Tax Credit

20 year Power Purchase Agreement with Bonneville Power

Purchased by PPM in January 2003

Sherman County at a Glance

‘One crop county’ Primarily dryland wheat farming Some barley, oats, cattle and wind

Currently experiencing 5th year of drought

County ranks last out of 36 in per capita income

Commercial quality wind resource

Sherman County Oregon

Population 1,754 3,559,596

Per Capita Income $17,647 $28,792

Poverty Rate 15% 12%

Unemployment 11.9% 8.2%

# of Jobs 1,225 2,108,559

Klondike Planning & Development

Brett Wilcox, President and Owner of Golden Northwest Aluminum, Inc., started Northwestern Wind Power in wake of energy crisis to diversify power for aluminum smelters

Broad Public Support Planning process designed to inform

the community and to minimize conflict

Local government supportive in planning process

Minimal environmental and aesthetic issues

Result: expedited 1 year process

Developed by Northwestern Wind Power

Development Employment

Permitting and Siting employment Environmental Assessments

PBS Environmental, Portland, OR NW Wildlife Consultants, Pendleton, OR WEST, Inc., Cheyenne, WY (field office Walla Walla, WA)

Legal work on siting Stoel Rives, Portland, OR

Design & engineering TriAxis Engineering, Corvallis, OR Tenneson Engineering, The Dalles, OR Don Keef & Associates, Redding, CA

Consulting CH2M Hill, Portland, OR

Construction LaborCOMPANY LOCATION LABOR HOURS

KC Construction Sherman County, OR 1,200

Hood River Sand & Gravel Hood River, OR 1,000

Wilson Construction Canby, OR 6,500

Christenson Electric Portland, OR 10,000

Dressel Enterprises Bakersfield, CA 4,800

General Electric Tehachepi, CA 8,400

TOTAL 31,900

Additional income accrues to suppliers: fuel, transportation, equipment rentals

Crews stayed at local trailer parks and motels, and patronized local restaurants, markets, and hardware store

* Labor hours estimated through conversations with contractors, typically combining length of service, number of employees, and hours per week

Economic Benefits

Businesses such as cafes, markets, motels & RV parks, and hardware stores, experienced increased activity during

construction and steady flow during operations

Clark Street, Wasco, OR

Lean-to Café and Goose Pit SaloonIncreased business during construction and maintenance Construction crews ate lunch at the café,

or Mike and Kathy catered on-site

Business success relies on occasional external stimulus

Revenue allowed construction of new covered front porch and benches

Considering building a motel to be ready for Klondike expansion, as well as on-site restaurant trailer

Mike Gutfleish and Kathy Neihart, Co-owners of The Lean-To Café and Goosepit

Saloon.

“I’d put a windmill on top of this building” Kathy Neihart, co-owner of The Lean-To Cafe

Operations and Maintenance

GE operates and maintains the 16 turbines

O&M expense is predominantly labor cost

3 full-time technicians 1 part-time administrator All 4 live in Sherman or

surrounding counties Result is that much of O&M

expense remains local

Considering addition of a part-time, local technician

GE Technicians, Jose Guzman, Seth Stanfield and Flemming Pedersen stand in front of the Klondike

Wind Project.

Landowners Minimal impact to wheat production: total footprint is approximately 1/2 acre per turbine Half acre would typically yield 25 bushels of wheat at $5 per bushel, totaling $125 Contracts vary, but landowner royalty payments are typically $2,000 - 4,000 per turbine each year

Lee Kaseberg and John Hilderbrand, standing in front of their wheat and wind crops

“Wind turbines bring benefits I hadn’t expected. The roads allow easier access to my fields, and the turbines make money during the winter when I can’t work my land. We want turbines on every acre.”

John Hilderbrand, landowner

Klondike Tax Revenues First Major Capital Investment in Sherman County Accounts for approximately 10% of local tax base

Sherman County Grade School & Fire

House

“Wind helped to diversify the economy. It’s another crop we can harvest, [and] it helps fill gaps in the county budget.” Mike McArthur, Sherman

County Judge

$69,833

$9,360 $8,045 $5,760

$113,198$115,009

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

GeneralFund

Schools Roads HealthDistrict

CorrectionsFireProtection

Klondike Tax RevenuesWind Turbine Contribution, 2002-2003: $321,205

Conclusions

The Klondike Wind Project has positively impacted Sherman County in terms of:

Construction and Operations Jobs Tax revenues Induced business activity Landowner revenue Impetus for future wind projects, both commercial

(Klondike Phase II) and community (China Hollow)

Thank You!Renewable Northwest Project

917 SW OakPortland, OR 97205

503.223.4544www.rnp.org