KMG Power Company At KMG Power, we perform distributed load sharing for daytime peak usage by deploying geo-spatially diverse photovoltaic solar power arrays in dense metropolitan areas. Presented by: Jay Stewart At KMG Power, we perform distributed load sharing for daytime peak usage by deploying geo-spatially diverse photovoltaic solar power arrays in dense metropolitan areas. April 27th, 2009

ACC RES Mandates 15% RE by 2025! At least 30% of the 15% must come from distributed resources (A.A.C. R-14-2-1801) Executive Order 2006-13; Greenhouse emission reduction to yr. 2000 levels by 2020 What does this mean for Arizona?: 1915 GWhr RE Power / 3000 new jobs 11.7 Million Metric Tons of C O 2 Reductions

At least 30% of the 15% must come from distributed resources (A.A.C. R-14-2-1801)

Executive Order 2006-13; Greenhouse emission reduction to yr. 2000 levels by 2020

What does this mean for Arizona?:

1915 GWhr RE Power / 3000 new jobs

11.7 Million Metric Tons of C O 2 Reductions

Distributed Renewable Energy PV mini/micro-grids (solar parks) located adjacent power substations Solar tracking / Smart metering Use of public/commercial/private land BLM Right of Way Sitting Sites Commercial rooftops Provide supplemental firm peak daytime power reduces long-haul transmission line losses Storage sites for peak-shaving Vanadium Fuel Cell H 2 Storage / Fuel Cell

PV mini/micro-grids (solar parks) located adjacent power substations

Solar tracking / Smart metering

Use of public/commercial/private land

BLM Right of Way Sitting Sites

Commercial rooftops

Provide supplemental firm peak daytime power

reduces long-haul transmission line losses

Storage sites for peak-shaving

Vanadium Fuel Cell

H 2 Storage / Fuel Cell

AZ Power Market and Customers No added infrastructure costs for utility companies KMG owns facilities/land Resale of REC's Regulatory and Environmental policies driving RE growth and incentives RE Market Incentive: $1.4 Billion ~$153 Million over next 5 years KMG Power exponential RE growth to 6% of market by 2025 ~$90 million TR / %40 ROI 35+ years of residual return Utility Rates: 0.07 cents kWhr @ over 4 billion kWhr's produced

No added infrastructure costs for utility companies

KMG owns facilities/land

Resale of REC's

Regulatory and Environmental policies driving RE growth and incentives

RE Market Incentive: $1.4 Billion

~$153 Million over next 5 years

KMG Power exponential RE growth to 6% of market by 2025

~$90 million TR / %40 ROI

35+ years of residual return

Utility Rates: 0.07 cents kWhr @ over 4 billion kWhr's produced

Operations/Alliances/Management Leveraging well established energy companies, KMG will deliver a superior RE solution for Arizona consumers daytime needs... - Arizona Corporate Commission - Arizona Department of Commerce - Department of Energy

Leveraging well established energy companies, KMG will deliver a superior RE solution for Arizona consumers daytime needs...

Fiscal Strategy Initial investment amount: ~$46 Mil. Net income(s): 5 year: ~$19 Mil. 10 Year: ~$45 Mil. 15 Year: ~$82 Mil.

Initial investment amount: ~$46 Mil.

Net income(s):

5 year: ~$19 Mil.

10 Year: ~$45 Mil.

15 Year: ~$82 Mil.

Summary ACC RES Mandates 15% RE by 2025 leading to a RE market size of over $1.4 billion AT KMG Power Co., we hedge against the competition by leveraging well established engineering, construction, and suppliers to integrate the next generation of distributed power production. Questions?

ACC RES Mandates 15% RE by 2025 leading to a RE market size of over $1.4 billion

AT KMG Power Co., we hedge against the competition by leveraging well established engineering, construction, and suppliers to integrate the next generation of distributed power production.

Questions?