ULAND mere Dear Friend, We have heard from several of our landowners that they recently received an invitation to an event on July 17 at the Moose Lodge. The event is described as a presentation on wind energy featuring Terry McGovern. We wanted to let you know that this event IS NOT sponsored by Apex. On the contrary, this event is being organized by opponents of wind energy, with the goal of turning community members against the Upland Prairie Wind project. With permit hearings in Clay and Dickinson Counties approaching, the opponents of our project are becoming more desperate to find ways to pressure county of?cials to block our progress. This meeting is another attempt to create unfounded fear of wind energy in the community, and we expect Mr. McGovern will present much of the same misinformation we have heard before. We wish to discourage you from attending this event, as we expect that it could become unpleasant for those who are supportive of Upland Prairie Wind. However, we did want to share some information about the event?s featured speaker in case you receive questions about him from others in the community. Terry McGovern is in no way a wind energy expert, though he certainly holds a personal anti- wind agenda. An associate professor at Clarke University, Mr. McGovern does not have a nor any academic or professional background in energy, wildlife biology, economics, or health. His expertise and education appear to be focused on human resources and workplace management. Though he does teach in a business school, he does not demonstrate an accurate understanding of the current tax credits available to wind energy projects, nor does he show an understanding of how the business of wind energy works. He has been known to malign wind energy facilities with overblown claims about everything from wildlife impacts to economics. in fact, he is an ardent anti-wind activist who leads a group called Iowa Wind Action that works to block wind farms throughout the state. We look forward to continuing to provide accurate information about wind energy, tax incentives, wildlife, and our work to anyone who is interested in learning more. In the meantime, we are including below some additional information about the federal production tax credit that exists for wind energy, in case you have questions about this incentive. If you hear anything from your friends or neighbors that concerns you, we request that you contact us for more information so that you may make an informed decision about what you are hearing. Thank you for your support, and we look forward to being in touch soon. Sincerely, Holly McCoy-Nelson Upland Prairie, LLC ci'o Apex Clean Energy, Inc. 306 N. Main St Everly, IA 51338 712.318.1693 apexcieanenergy.com What is the federal production tax credit? The federal production tax credit (PTC) is a tax credit that can be claimed by renewable energy projects for every kilowatt hour (kWh) of energy they produce in only their first 10 years of operation. The credit functions much like the more familiar mortgage tax credit claimed by so many of us. Just as the mortgage credit is based on the actual mortgage interest paid, the PTC is based on the actual energy produced. It is not a cash grant, and it cannot be used for the construction or development of wind projects, because it is only available after the wind farm is operating. The FTC was signed into law in 1992 by President George H.W. Bush. Because the credit reduces the claimant's tax burden by 2.3 cents per of energy produced, that energy can be sold at a cheaper rate. In many cases, this helps electricity consumers save money. In this way, the tax credit can help reduce consumers? electric bills. in December 2015, Congress overwhelmingly approved legislation that extends the PTC for five years, with a gradual phase-out of the bene?t over that time. The PTC has played a major role in encouraging innovation in the wind turbine industry, causing wind?s cost to fall 66% over the past six years. This multi-year predictability moving forward will provide increased certainty and help ensure that this trend continues. In addition, the number of jobs the industry has created continues to grow. it is estimated that by 2020 the wind industry could employ over 200,000 people in America. Do other energy sources use tax subsidies? All domestic energy sources have historically been subsidized, partly to help encourage the production of energy domestically. Fossil fuels in their starbup period got ?ve times more in government incentives than renewable energy has, and nuclear got 10 times as much. Since 1950, 70% of all energy subsidies have gone to fossil fuels. As recently as 2002?2007, they got nearly ?ve times as much in tax incentives as renewables. As described in a 2011 report by DBL Investors, in in?ation-adjusted dollars. oil and gas subsidies averaged $1.8 billion over the first 15 years of subsidy life, while renewables averaged less than $0.4 billion. The incentives given to the fossil fuel industry have helped oil and gas companies buitd their businesses and their industry in the United States. Helping energy industries get a good foothold in this country can take a while, but the payback makes the investment worth it. As we continue to develop more sources of domesticaliy produced electricity, wind energy is an - - keeping our air and water clean. can: - lowa Wind Energy Fact Sheet Iowa is a wind energy leader 0 Iowa is a national leader in wind energy, producing the highest percentage of electricity by wind of any state over 36%.1 lowa was the first state to generate more than 30 percent of electricity from wind. Iowa?s total wind capacity by the end of 2016 was 6,917 MW. This ranks second nationally in installed capacity.2 0 Wind projects under development will bring lowa to over 9,000 MW and surpass 40% of generation from wind. In 2016, MidAmerican Energy received approval for its 2,000 MW Wind XI project, the largest single wind project in the U5. Alliant Energy received approval for a 500 MW wind project and also finalized a power purchase agreement (PPA) for 200 MW of wind. Additional wind projects are moving fonivard as well, such as the Saratoga wind farm in Howard County that will seli to Madison Gas Electric.3 4? New windprojeets are slated-tapeproposediateein 201-1.- Alliant Energy is exploring-a 400-MW wind project and MidAmerican Energy is exploring a 1,200 MW wind project. If approved and built, these projects will push Iowa past the 10,000 MW milestone by approximately 2020. Wind energy is good for lowa's economy and job market - The wind industry employs between 8,000 and 9,000 lowans, including manufacturing, operations and maintenance, design and engineering professionals (direct and indirect a lowa leads the Midwest in the number employed in the wind industry.5 0 There are 11 wind energy manufacturers6 in Iowa and 75 lowa companies in the wind industry supply chain.7 0 Wind energy accounts for at least $13.5 billion in capital investment in Iowa.8 0 Wind turbines generate $20 million to $25 million annually in lease payments to landowners in lowa. 9 These landowners are in rural Iowa and throughout much of the state. This amount is expected to grow significantly in coming years: MidAmerican?s Wind XI project alone is anticipated to add $18 million in annual land lease payments. - Iowa is the #2 state for land lease payments to landowners for wind turbines.10 0 Google and Facebook are among the companies that have identified the availability of low-cost lowa wind energy as one of the reasons to locate new facilities in lowa.? - Wind provides significant property tax revenue to local governments. MidAmerican's Wind Xl project is estimated to generate $12.5 million annuain in local property tax revenue and $500 miilion overthe life - Three examples of annual county tax revenue from wind: Buena Vista received $1.2 million, Pottawattamie received $2 million, and Carroll received $1.4 million.13 This supported schools, roads and bridges, and health services. Wind energy is affordable energy 0 Wind energy in lowa grew from about 800 MW in 2005 to over 6,900 MW today.14 Iowa's electric rates have remained below the national average during this time.15 0 New wind energy in lowa is a low cost option and less expensive than new coal, natural gas, or nuclear.16 Iowa Env1r0nmental Counc? Updated June 2017 a Building more wind energy in Iowa will create substantial savings for Iowa customers in future years: Adding another 10,000 MW of wind energy to bring Iowa to 20,000 MW of wind would save Iowa consumers $12.6 billion over 25 yea rs with average annual savings of over $500 million. Average households would save $3,200 on electric bills during this time while average industrial customers would save $825,000.17 Other Midwest state electricity rates are higher than Iowa?s. For example, lowa's electricity rates are 30 percent lower that Wisconsin?s electricity rates. Wisconsin gets only two percent of its energy from wind (com pa red to over 36 percent for Iowa).18 Wind energy is reliable and stable - Effectively integrating renewable energy while maintaining grid reliability is already being achieved. 0 Many studies ?show that renewables can be integrated at high levels without significant issue" including the Renewable Energy Futures Study, the Western Wind and Solar Integration Study, the Wind Vision Study (all NREL) and the PJM Renewable Integration Study 0 The nation?s major grid operators have found that wind and solar energy need very little backup power. 2? MISO, the grid operator for the middle part of the country, needs almost no additional fast-acting power reserves to back up its 10,000-pius MW of wind power on the system.21 Potential for more wind growth I Iowa has enormous potential to add more wind generation, with studies showing a lower end of 307,000 MW of wind and higher end of 570,000 MW (depending on factors such as turbine size, spacing, and locations).22 - The majority of Iowa's 99 counties still have little or no wind development. - iowa?s wind employment is projected to grow to over 17,000 jobs by 2020 (11,500 direct and indirect, 6,000 induced), among the highest ofany U.S. state}?3 1 AWEA, U.S. number one in the world in wind energy production (Feb. 29, 2016), available at AWEA, 0.5. Wind industry Faurth Quarter 2016 Market Report, (Jan. 26, 2017), available at 3 Madison Gas 81 Electric, AWEA, lowa Wind Energy (accessed June 2017) available at 5 E-2, Clean Energy Trust, BW Research, Clean Jobs Midwest: iowa (2016) at 5 AWEA, iowa Wind Energy. 7 ELPC, lowa Wind Power& Solar Energy Supply Chain Businesses (2015). ?9 115. fill-"no? industry ?3 noun! Market Renoi??ear Ending 203 (2016). 5? AWEA, lowa Wind Energy. 1? Radio Iowa, town near the tap in lease payment dollars for wind turbines (March 2016}. 11 ?2 MidAmerican Energy, Request for Approval of Ratemaking Principles, Iowa Utilities Board Docket No. (filed April 14, 2016). ?3 Data from ?scal year 2015-2016, compiled by the Iowa Environmental Council. ?4 AWEA, lowa Wind Energy. 15 Data available from the U.S. Energy Information Administration. 15 See Lazard?s Levelized Cost of Energy v. 10.0 (December 2016) available at ?7 A Renewable America and AWEA, The Consumer Benefits of Wind Energy in town {2016). 1? John Imes, Wisconsin Must Do its Part to Reduce Emissions, Wa usau Daily Herald (March 2015). 19 AWEA SEIA, A Handbook for States: incorporating Renewable Energy into State Compliance Plans Jfor Clean Power Plan, Version 1.0, February 2015, at 98. Available at: 2? NRDC, Transforming the Power Grid with Clean Energy. 21 NRDC, Transforming the Power Grid with Clean Energy, citing Nivad Navid, MISO, Reserve Requirement identi?cation with the Presence of Variable Generation, presentation to the Utility Variable Generation Integration Groap (2012), at 13 Studies by DOE and NREL including 20% by 2030 Wind (2008); Wind Vision (2015); and Renewable Energy Futures (2012). 23 Navigant Consulting, Economic Development impacts of Wind Projects (2017) at 2% Ermronmental Updated June 2017 ll; Count.