Energy Challenges

  Adding new renewable energy sources such as wind and

solar, while balancing and maintaining the broader
electric energy grid’s reliability
  Need for electric distribution and transmission capacity to
enable new renewable energy supply
  Maintaining competitive pricing to conventional fuel
sources such as coal
  Meet Renewable Portfolio Standards (RPS) and federal
emissions requirements

2
 Altresco Experience

  Altresco Integrated is an experienced energy

development management team capable of solving
complicated problems of balancing and maintaining
reliability of renewable power plants
  Altresco works with private investors and regional power
companies to expand renewable energy supply and
improve network capacity
  Altresco designs, develops and implements cost
competitive renewable energy power plants
  Altresco helps states meet RPS goals while reducing
carbon emissions
3
 Altresco Management
  Bill Williams – energy industry veteran with experience designing, building and
running co-generation facilities and large scale power plants with a specialty in
implementing complex multi-source power generation facilities.
  R. Sam Shepard Jr. – over 30 year experience with electric utilities across all sectors
of the business including generation, transmission, distribution and retail.
  Alissa Oppenheimer – energy professional with extensive background in resource
planning, economic analysis and modeling. Resource planning includes long range
capacity planning of both conventional resources - - coal, gas, nuclear -- and
renewable resources- - wind, biomass, hydro, solar.
  Peter Gregory - a technically savvy business leader with a strong track record of
performance and data management systems implementation for the electric energy
industry. He has direct experience at all levels of electric energy operations and leads
substation automation projects.
  Todd Mitchell – a CPA with extensive experience advising senior executives in areas
of accounting , business opportunity, strategic planning and investment performance
tracking.
  David Strickler – a portfolio manager with experience creating, managing and
monitoring profitable energy investments.

4
 Altresco Management
  Scott Baker – has over 20 years of Program Management and Systems Integration
experience in the international telecommunications and computer industries. His
expertise covers corporate IT development and operation, Program Management,
Systems Analysis, Budget and Financial Management and Business Process
Optimization.
  Thomas A. Sladek, PhD – a chemical, metallurgical, and petroleum refining engineer
with more than 40 years of experience in energy R&D, economic analysis, feasibility
studies, environmental studies, permitting, and financing. He is experienced in
unconventional fuels (municipal and ago wastes, tires, oil shale, oil sands, coal
conversion, biomass) and in novel energy technology (wind, solar thermal, pyrolysis,
cogeneration, waste-to-energy, gas-to-liquids).
  FRED BUCKMAN JR.– is active in several aspects of the energy business
with Pacific West Energy LLC where he is responsible for the development efforts of
an integrated renewable energy company.
  Victor Tkachenko - a senior financial and business executive with over 35 years of
experience, specializes in energy related project finance, venture development and
technology commercialization. He has worked in senior capacities for the Bank of
Nova Scotia, Credit Lyonnais, Canadian Imperial Bank of Commerce and West LB.

5
The Unpredictability of Wind

6
 Impacts of wind power on reliability
and load management

Obligation Load Coal Generation

Actual Interchange NERC ACE
Wind Generation
7
 The Answer to the Challenge

  Altresco Integrated answers these challenges with

the Integrated Gas, Wind and Solar (IGWS™)
solution.
  This solution allows us to provide base-load
reliability while incorporating five times the amount
of wind energy that is conventionally available.
  We can provide this solution at a lower cost than
standard wind or solar projects due to lower overall
average capacity cost of the IGWS solution.

8
 Economics: IGWS vs. SCPC
Capital
 Annual

Size
 Cost
($/ Capital
Cost
 Payment
 Capacity
 MWH
 Fixed
O&M
 Fixed
O&M
 Var
O&M
 Var
O&M

(MW)
 kW)
 ($Millions)
 ($Million)
 Factor
 Generated
 ($/kWyr)
 ($Million)
 ($/MWh)
 ($Million)

Gas

 Combined
Cycle
 396
 1100
 $436

 $55.46
 0.75
 2,592,960
 $13.00
 $5.15
 $4.25
 $11.02

Gas

 Recip
Engines
 200
 1100
 $220

 $28.01
 0.15
 262,800
 $13.00
 $2.60
 $4.25
 $1.12

Wind
 Wind
Farm
 600
 1365
 $819

 $104.27
 0.30
 1,576,800
 $15.00
 $9.00
 $0.50
 $0.79

Solar
 Solar
Thermal
 10
 6000
 $60

 $6.11
 0.40
 35,040
 $0.00
 $0.20
 $0.01

TOTAL
 IGWS
 1206
 $1,535

 $193.85
 4,467,600
 $16.75
 $12.93

Percent
Renewable
 36%


Coal
 SCPC
 600
 3500
 $2,100

 $267.36
 0.85
 4,467,600
 $30.00
 $18.00
 $4.00
 $17.87


CO2
Emissions

Heat
Rate
HHV
 Fuel
Cost
($/ Fuel
Cost
 Rate
(lb/ CO2
Emissions
 CO2
Cost
 Total
Cost
 Cost
($/
(Btu/kWh)
 MMBtu)
 ($Million)
 MMBtu)
 (tons/yr)
 ($Million)
 ($Million)
 MWh)

6500
 5.00
 $84.27
 117
 





985,973

 $0.00
 $155.90
 $60.12

9000
 5.00
 $11.83
 117
 





138,364

 $0.00
 $43.55
 $165.72

0
 0.00
 $0.00
 0
 















‐



 $0.00
 $114.06
 $72.34

0
 0.00
 $0.00
 0
 















‐



 $0.00
 $6.12
 $174.60

$96.10
 $0.00
 $319.63
 $71.54


$9,200.00
 $2.00
 $82.20
 $212.00
 $4,356,804
 $0.00
 $385.44
 $86.27


9
 Economics (continued)

Altresco Integrated’s IGWSTM power plant is more cost

effective to build than coal fired power plants

10
 Sensitivity Analysis

Green – IGWS Cheaper

Red – Coal Cheaper

Altresco Integrated’s IGWSTM power plant is more cost

efficient than conventional coal fired power plants at most
plausible natural gas price scenarios
11
 Mitigation of Commodity Risk

  Altresco Integrated IGWS™ project investors are not

exposed to commodity risk as power contracts are
anticipated to be negotiated at a “spark spread,” which
allows commodity price cost for natural gas to be passed
through to utility customers.
  Long term power purchase agreements with major utilities
are expected to provide long-term revenue stability to
Altresco Integrated projects.
  Unleveraged ROIs of 12% or better are expected for AI
IGWS™ projects over a typical project life of 20 to 25
years providing non-cyclical long-term stable cash returns.

12
 Capacity Planning

  Altresco Integrated’s IGWSTM power facilities can be sized

to meet rural or regional demand.
  IGWS™ projects are scalable from 50MW to multiple
Gigawatt scale based on optimized combinations of
resources, load and infrastructure.
  The high dispatch and load factor aspects of the Altresco
Integrated IGWS™ solution is precisely what is needed to
support the cost effective construction of new transmission
capacity

13
 Broad System benefits

  Altresco Integrated IGWS™ projects are based on

collocation of key elements rather than purely where the
best wind is.
  An IGWS™ facility must be proximate to significant
natural gas availability but can draw on wind from
several nearby wind footprints.
  It will also have the ability to provide ancillary services to
both the wind resources directly integrated as well as
other wind generation on the related transmission
infrastructure.

14
 Energy Storage

  A very significant component of energy efficient

operations is energy storage capacity.
  Energy storage can successfully address the problem
of erratic generation of wind and solar power.
  CAES or compressed air energy storage is one type of
storage technology that has been proven for over 15
years, however the geology to make it possible is
rare.
  CAES energy storage can efficiently be added in many
states such as Michigan, New Mexico and Texas.
15
A basic CAES Configuation

16
 Compressed Air Energy
Storage (CAES)
  The CAES process uses “off peak” low cost electrical
energy to compress air that can be used with gas
turbines to generate electricity at half the fuel cost of a
conventional gas turbine.
  There is a subterranean salt bed in eastern New Mexico
area that can be used to create high quality storage
caverns of specific size and depth to make this one of
the most promising locations in the US.
  Altresco has the team capability and the grid
management expertise to optimize the value of this
storage.

17
 We Can Move Quickly
•  The Altresco Integrated (AI) team is ready to go.
•  AI has already identified a number of sites ideally
suited for the IGWS solution in New Mexico.
•  These sites could generate Giga Watts of power.
•  Ideally suited is to say that these sites are:
o  Easy to permit
o  Have robust gas supplies
o  Easily Accessed Gas Infrastructure
o  Geographically sited for first class wind and or solar plants
o  Altresco Integrated has completed interconnect reviews
and resource assessments, performing preliminary
engineering and confirming power plant viability.
18
 Custom Energy Solutions
•  The Altresco Integrated (AI) team is skilled in
designing custom energy solutions.
•  Altresco Integrated helps states achieve Renewable
Portfolio Standards (RPS) fast and cost effectively.
•  We help significantly reduce carbon emissions.
•  We are capable of fixing “stuck” wind farm
development that does not have effective
transmission or storage capacity.
•  We are capable of enhancing electric energy grid
reliability by adding new renewable energy supply
with sophisticated power generation monitoring,
switching and load balancing as needed in rural or
metropolitan regions.
19
 Questions?

Questions?

20
 Who We Are

The Altresco Core Team

WILLIAM R WILLIAMS
−  Mr. Williams has over 16 years of energy industry level experience and is well known in the
industry as a avid proponent of the development of integrated, non-depleting and clean energy
solutions. He has successfully led the conceptualization, development, financing, construction
and creation of large scale independent power projects. Before creating Altresco Integrated
LLC., he was responsible for delivering the $200M Wilbur Deloss Williams cogeneration facility
at GE Pittsfield. This design of this project achieved new levels of environmental cleanliness as
well as plant efficiencies. He also set new standards in both environmental and operational
efficiencies with the world class operating teams which he built for this project.
−  Mr. Williams also played the key role in building a development team that developed the $860M
460 MW Quezon Coal Generating facility on Luzon Island in the Philippines. This project was
the first privately owned power project ever developed in a developing nation without sovereign
guarantees from the government.
−  The creation of Altresco Integrated LLC is the result of 10 years of research which Mr. Williams
has prepared to create a sustainable energy industry in North America. With the technologies,
innovation and commitment to serve all stakeholders, AIE Inc, will realize the goal of
developing energy systems that lead to energy independence without loss of reliability or high
electricity prices.

21
 Who We Are

The Altresco Core Team

R. SAM SHEPARD JR.,
−  Mr. Shepard has over 30 years experience in the electric utility and IPP business in the US and
internationally. His experience includes technical, financial, managerial and executive
experience in broad areas of the business including system and strategic planning,
operations, development, engineering, construction, procurement, project and corporate
finance, and mergers and acquisitions.
−  He also has experience in all sectors of the business including generation, transmission,
distribution and retail. He has substantial experience in starting new business initiatives and
restructuring underperforming businesses.
−  He has personal experience in numerous countries/provinces/states with privatization,
deregulation and unbundling of electric systems including Argentina, Australia, Chile,
Colombia, India, Spain, United Kingdom, Alberta, Illinois, Iowa, Ohio, Texas, Virginia, and
New York.
−  Masters of Business Administration at the University of Alabama-Birmingham, specializing in
management and a Bachelor of Science Electrical Engineering, Mississippi State University,
specializing in Power Systems.

22
 Who We Are

The Altresco Core Team

ALISSA OPPENHEIMER
−  Ms. Oppenheimer has 15 plus years of experience in the energy industry. She has practical
and extensive knowledge of transmission, pipeline and distribution issues, from a technical,
economic, policy and environmental requirements perspective. Alissa spent six years working
at the Gas Research Institute in Chicago, IL as a Technology Manger and Account Executive.
In that role she managed multimillion dollar public/private research, development and
commercialization projects related to the use of natural gas in existing and emerging end-use
technologies.
−  Ms. Oppenheimer spent eight years doing resource planning, economic analysis and modeling
for Xcel Energy, a major investor owned utility. She worked on both the electric and gas sides
Xcel’s business. Resource planning included long range capacity planning of both
conventional resources - - coal, gas, nuclear -- and renewable resources- - wind, biomass,
hydro, solar - - for inclusion in the Xcel Energy portfolio. In addition, Ms. Oppenheimer has
worked as a consultant on various energy related projects including analysis and scenario
modeling of emissions credit programs both market and government based.

23
 Who We Are

The Altresco Core Team

TODD R. MITCHELL, CPA
−  Mr. Mitchell’s primary emphasis is advising CEOs in areas of business opportunity, including
strategic planning facilitation and business advisory services, including debt restructuring,
financial operation turnarounds and improvement, financial forecasting, mergers and
acquisitions (focusing on analysis of transaction projected results, transaction structuring,
negotiation assistance, and business plan refinement), and transaction valuations. In addition,
he is guides professional firms through the implementation of women’s initiatives.
−  Mr. Mitchell was Elliott Davis’ Managing Shareholder from 2003 to 2008. During that time, he
directed the acquisition of four CPA firms in the Southeast as the firm grew from net revenues
of $23 million to $44 million and became a recognized workplace of choice. Todd has been a
shareholder in the firm’s Strategic Advisory Services Group since 1994. He joined Elliott Davis
as director of this group in 1992.
−  He was with Shenkin Kurtz Baker & Company, P.C., Englewood, Colorado from 1985 to 1992
where he was the Director of the Financial Consulting Group and a member of the company’s
Board of Directors. It was during this period that he was involved with guiding the entity
structuring, financial modeling, financing structuring and negotiations, and strategic alternatives
analysis for three Altresco co-generation power plant development project

24
 Who We Are

The Altresco Core Team

DAVID A STRICKLER,
−  Mr. Strickler has experience managing numerous investment transactions with oversight of a
broad portfolio of energy and operating companies.
−  Mr. Strickler also has experience managing diverse real estate assets and is skilled in
negotiating leases, which are critical to oil & gas exploration as well as wind and solar energy
development.
−  His experienced includes managing private equity investment portfolios and venture capital
technology investments with an emphasis on energy technology such as advanced
exploration techniques, efficient alternative energy power generation, water purification and
energy storage technology.
−  Mr. Strickler has experience with strategic market analysis, commodity price analysis, mergers
and acquisitions and business investment structuring.
−  He has a Masters in Business Administration as well as a Bachelor of Science in Electrical
Engineering.

25
 Who We Are
The Altresco Core Team
SCOTT BAKER
Mr. Baker has over 20 years of Program Management and Systems Integration experience in the
international telecommunications and computer industries. His expertise covers corporate IT
development and operation, Program Management, Systems Analysis, Budget and Financial
Management and Business Process Optimization. As a Program Manager he has delivered multi
-million dollar programs to integrate and upgrade customer facing telecommunications systems. Mr.
Baker has worked with AT&T, T-Mobile and Rogers Communications to take programs from
conception, through analysis, budgeting and design to delivery and operations. He is experienced
in incorporating enterprise knowledge management, corporate workflow management and business
process management to increase the efficiencies and effectiveness of his international program
staff.

Thomas A. Sladek, PhD

Mr. Sladek is a chemical, metallurgical, and petroleum refining engineer with more than 40 years of
experience in energy R&D, economic analysis, feasibility studies, environmental studies, permitting,
and financing. He is experienced in unconventional fuels (municipal and ago wastes, tires, oil shale,
oil sands, coal conversion, biomass) and in novel energy technology (wind, solar thermal, pyrolysis,
cogeneration, waste-to-energy, gas-to-liquids). He has had key roles in development projects in the
USA, India, Philippines, Morocco, Ghana, Jordan, Belize, Peru, Brazil, Bolivia, and Australia. He
was an early (1976) proponent of renewable energy and bio-fuels in Colorado. He is committed to
the efficient, economical advancement of clean, domestic energy.
26
 Who We Are
The Altresco Core Team
FRED BUCKMAN JR.
Mr. Buckman is active in several aspects of the energy business with Pacific West
Energy LLC where he is responsible for the development efforts of an integrated renewable
energy company. He is building a bio-refinery producing ethanol and electricity at a sugar
plantation on the island of Kauai, Hawaii. He is currently involved in negotiation of a purchased
power agreement with a local utility, financial modeling of the integrated energy plantation,
scoping out current and new technologies for the conversion of biomass into usable energy
forms, and management of external vendor interfaces for all electric generation equipment.
Victor Tkachenko,
Victor began his career at Union Carbide Corporation in R&D followed by project management
and production. Since that time he has acted as a senior financial and business executive with
over 35 years of experience, specializes in energy related project finance, venture development
and technology commercialization. He has worked in senior capacities for the Bank of Nova
Scotia, Credit Lyonnais, Canadian Imperial Bank of Commerce and West LB. Victor’s energy
finance and advisory expertise includes all segments of the power and energy sectors. Victor
also works internationally with private equity groups, venture capital, distressed debt funds and
project financing sources. He has a working knowledge of commercial and financing strategies
and structures that are Shariah-compliant. Victor holds a B.Eng.(Chem), and an MBA with a
concentration in Finance and Accounting, all from McGill University.

27