Renewable Energy Production Tax Credits and Rural Communities

PTC = Jobs John CohenVice President, Government Affairs April 20, 2011

Alstom: Three Areas of Innovation Leading global provider of equipment & services for… Power Generation Rail Transportation Power TransmissionAlstom in the U.S. - P 2 | © Alstom 2011© ALSTOM 2011. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is completeor correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change withoutnotice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Strong & Sustained Sales, Worldwide Key Facts & Figures: Thermal Power Grid 92,700 employees in 100 $12.9 bn $4.8 bn countries 6% increase in sales from 2009/10 to 2010/11 Steady increase in R&D investment to more than $1 bn USD in 2010//11 Transport Leading provider of innovative clean technology 7.5 €bn solutions Renewable Power $2.6 bn Total sales 2010/11: $27.8 billionAlstom in the U.S. - P 3 | © Alstom 2011© ALSTOM 2011. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is completeor correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change withoutnotice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Alstom Innovation, Coast-to-Coast 6,000+ permanent employees in 45 states and the District of Columbia 10,000+ employees including contract workers 100+ years of U.S. market expertise in: Power Generation Rail Transportation Energy Transmission • Multimillion dollar investments in Chattanooga, Tennessee and Amarillo, Texas will create up to 600 green jobs for U.S. workers.Alstom in the U.S. - P 4 | © Alstom 2011© ALSTOM 2011. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is completeor correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change withoutnotice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Alstom Wind - North America Amarillo Nacelle Assembly Facility O p e r a t i o n a l Q 1 2 0 12 C o m m o n G lo b a l P r o c e s sr illo , T X - c e n t r a lly lo c a t e d - r a il a n d t r u c k s h ip p in g 115 , 0 0 0 f t 2 o n 2 0 a c r e s 2 7 0 U n it s ( 3 M W ) a n n u a lly 2 0 0 F u ll-t im e jo b s a t f u ll c a p a c it y L E E D C e r t if ie d S u s t a in a b le S it e Focused Facility for ECO 100 Platform to support US, Canada and Mexico © ALSTOM 2011. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is complete or correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change without notice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Alstom’s Wind business References in US - NAM Adams & Danielson wind farms Minnesota Adams & Danielson • 44 MW - 24 x ECO 86 wind farms NREL • Operational since March 2011 ECO 100 NIRE • Exceeding annual production estimates ECO 86 by 10% • Customer: Alstom’s first US wind farms in commercial operation are exceeding production estimates© ALSTOM 2011. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is completeor correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change withoutnotice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

#1 Message Policy Certainty Investment =Presentation title - 01/01/2007 - P 7© ALSTOM 2011. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is completeor correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change withoutnotice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

PTC: Boom and Bust© ALSTOM 2011. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is completeor correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change withoutnotice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Value of Policy Certainty – By the numbers • F OUR Y E A R S of consistent wind tax policy delivered: − 3 5 % annual growth − 4 0 0 manufacturing facilities in 4 3 states − 6 0 % of wind turbine’s value produced in U.S. (up 3 5 % since 2005) − $ 6 0 b il l io n of investment since 2005. − 6 ,8 1 6 megawatts (MW) installed in 2011 • Up 3 1 % since 2010, • 4 6 ,9 1 6 MW installed in the U.S. to date. − 8 ,3 0 0 MW under construction in 2012© ALSTOM 2011. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is completeor correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change withoutnotice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

PTC Expiration: Consequences • If PTC expires in 2013: − A n n u a l I n s t a l l a t i o n s : Drop to 2 GW in 2013, from >8 GW in 2012 − T o t a l j o b s : Drop almost 5 0 % • 7 8 ,0 0 0 in 2012 • 4 1 ,0 0 0 in 2013 − T o t a l I n v e s t m e n t : Drop by nearly t wo t h ir d s • $ 1 5 .6 b il l io n in 2012 • $ 5 .5 b il l io n in 2013© ALSTOM 2011. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is completeor correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change withoutnotice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

PTC Extension: Benefits • If PTC extended for 4-years: − A n n u a l I n s t a l l a t i o n s : 8 - 1 0 GW through 2016 − T o t a l j o b s : Grow to nearly 1 0 0 ,0 0 0 by 2016 − T o t a l w i n d i n v e s t m e n t : Grow to $ 1 6 .3 b il l o n in 2016© ALSTOM 2011. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is completeor correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change withoutnotice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

PTC Extension: Jobs© ALSTOM 2011. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is completeor correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change withoutnotice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

PTC: Taxpayer ROI • Four year PTC extension: 8 7 % r e t u r n o n in v e s t me n t for U.S. taxpayers − T a x p a y e r I n v e s t m e n t : ~$ 1 3 .6 b il l io n − T a x p a y e r B e n e f i t : ~$ 2 5 .6 b il l io n − Navigant inputs: • Investment − tax credits for wind plants installed from 2013 to 2016 • Returns: − manufacturing investment − expenditures during construction − land lease payments over the life of the plants out to 2021 − operating expenditures and federal − state taxes on income from power sales© ALSTOM 2011. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is completeor correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change withoutnotice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

The Challenge • Congress needs to A C T t h is y e a r − H.R. 3307, American Renewable Energy Production Tax Credit Extension Act of 2011, • 91 co-sponsors − S. 2201, American Energy and Job Promotion Act, • 7 co-sponsors© ALSTOM 2011. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is completeor correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change withoutnotice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

Conclusion PTC =© ALSTOM 2011. All rights reserved. Information contained in this document is indicative only. No representation or warranty is given or should be relied on that it is completeor correct or will apply to any particular project. This will depend on the technical and commercial circumstances. It is provided without liability and is subject to change withoutnotice. Reproduction, use or disclosure to third parties, without express written authority, is strictly prohibited.

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Renewable Energy Production Tax Credits and Rural Communities

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Renewable Energy Production Tax Credits and Rural Communities Presentation Transcript