CHEN is an emerging trade association dedicated to sustainable rural economies through community-based energy development. We are a non-profit organization governed by a nine-member board of directors.

John CovertExecutive Director

covert@WorkingLandscapes.com303-283-3524

Southern Rocky Mountain Ag ConferenceFebruary 10, 2011

• 2002 Colorado Working Landscapes (CWL) established based on work with the Colorado Cattlemen’s Association.

• 2003 Environment groups asked CWL to join their effort to adopt a renewable energy requirement because they needed rural support with the Legislature

• 2004 Colorado voters adopted the 10% Renewable Energy Standard (RES). CWL established a “local ownership” focus to promote rural economic development.

• 2007 RES applied to rural electric cooperatives (10%) and increased to 20% for investor-owned utilities (IOUs). Incentive for community-based projects also adopted. Colorado Harvesting Energy Network formed.

• 2010 RES increased to 30% for IOUs (coops remain at 10%) with a requirement for distributed generation (small projects) but with no local ownership requirement.

• 2010 Tri-State opened their planning process to the public.

Milestones

Colorado Harvesting Energy Network

Absentee vs Local Ownership

April 2008 letter to the PUC from the six landowners

Legislation (Senator Schwartz) directed the PUC to address the issue

Landowner meetings with Xcel Energy, PUC commissioners & GEO

CHEN represented the 6 landowners during the Xcel Energy 2010 Rate Case with MVC’s Wayne Caldwell serving as our expert witness.

Pioneering Effort by Six Valley Farmers

Solar development on pivot corners could generate 2,500 megawatts of capacity without adversely impacting agricultural production (enough energy to power 365,000 homes).

Project Goal

Develop a viable business model for community-based solar electric generation primarily serving pumped irrigation in the Valley. • Lower operating costs and provide a hedge against

future rate increases. • Collect electric use data for operational decision-

making and participation in future rate designs.• Create local jobs and economic development• Keeping energy dollars from leaving the Valley

Progress to Date

• Initial funding secured from the Colorado Department of Agriculture and the Energy Foundation.

• Assemble Project Technical Team: public policy, project coordinator, electrical engineer, attorney and financial advisor.

• Participate in development of HB10-1342 (Community Solar Gardens) as possible business model.

• Joint Resolution by SLVREC, CPAC, and MVC boards of directors.

• Analysis of distribution network and project siting criteria.

• Collaboration with wide range of interest groups.

Moving Forward

• Securing power from small, locally-owned projects is more expensive than relying on large projects owned by absentee corporate owners.

• The incentive for local ownership established in 2007 has not worked. We need to look for new approaches.

• Community Solar Garden legislation adopted last year is one approach to local ownership. While HB10-1342 only applies to investor-owned utilities, the two operational programs were established by rural electric cooperatives.

• The Clean Energy Collective, based in Carbondale, recently established a solar garden program in cooperation with Holy Cross Energy.

Conclusions

• The policy landscape has shifted to jobs and economic development. Governor Hickenlooper is looking for grassroots approaches to job creation.

• Valley leadership needs to ask the Hickenlooper Administration to facilitate a plan for Community-based energy development in the Valley in cooperation with Xcel Energy and Tri-State.

• Please consider signing on to the joint resolution adopted by SLVREC, CPAC and MVC. Please indicate whether you are a “supporter” or “participant” in the SLV AgEnergy Project.

As a “participant” you will:

• Serve as an advisor to the SLV AgEnergy Project

• Provide detailed information on your operation

• Install device to measure electric consumption by time-of-day

• Identify project locations and ownership structure

• Examine possible operational adjustments to reduce cost

Sign-up SheetSLV AgEnergy Project

I endorse the SLV AgEnergy Project as a ____supporter or as a ____landowner participant (choose one).

As a supporter, I wholeheartedly endorse the attached Joint Resolution and look forward to receiving periodic updates on its status.

As a landowner participant, I will:• Serve as an advisor to the SLV AgEnergy Project• Provide detailed information on my operation• Install a device to measure electric consumption by time-of-day• Identify project locations and ownership structure• Examine possible operational adjustments to reduce cost

Name: ____________________________________________________

Address: __________________________________________________

__________________________________________________________

Company/Occupation_________________________________________

Phone: ____________________________________________________

Email: _____________________________________________________

My electric service is provided by ___SLVREC, ___Xcel Energy, or___ BothI farm ___circles located in ____________County (if possible, please come by our booth and locate your operation on our map).

Please fill out and submit this form today or (by March 1, 2011) mail/fax/email to: SLV AgEnergy Project 7900 E. Union Ave., Suite 200 Denver, CO 80237FAX: 303-752-5810Email: covert@workinglandscapes.com