Criterion Project Questions & Answers

Is there enough wind in the Allegheny Heights/Backbone Mountain area to make Criterion a viable project?

Yes. Clipper has conducted a wind resource assessment at this site and examined wind data from surrounding locations. The project site is an exceptional combination of wind resources, transmission access and compatibility with existing uses with a relatively minor environmental impact. We are confident that this site is an economically viable location for a windpower facility.

How much power will the Criterion Project generate?

When complete, the Criterion Project will be the largest wind energy facility in the eastern United States, generating up to 101 megawatts of power or enough energy to serve 35,000 households in the Mid-Atlantic region annually.

Is the Criterion Project required to comply with any environmental regulations?

Yes. We have contacted all responsible government agencies to ensure compliance with federal, state and local regulations. On December 6, 2002, eight state agency heads (including Department of the Environment Secretary Richard Pecora, Department of Natural Resources Secretary J. Charles Fox and Department of Agriculture Secretary Hagner R. Mister) signed a letter to the Maryland Public Service Commission formally endorsing the project.

Did Clipper perform an environmental assessment for the Criterion Project?

Yes. Clipper has performed an environmental assessment of this project that indicates a very small impact on the environment. The assessment was conducted by an independent consultant and filed with the Maryland Public Service Commission as required by law.

What are the projected economic benefits to Garrett County during construction of the Criterion Project?

• It will be one of the largest projects ever constructed in Garrett County.
• It will create local jobs - 175 construction jobs and 6-8 permanent operation jobs.
• It will generate an estimated $3.75 million in construction phase work and purchases for local companies.

What are the expected economic benefits to Garrett County during operation of the Criterion Project?

• It will be one of the largest property tax payers in Garrett County.
• It will be built on land owned primarily by local residents - neighbors who are already contributing members of this the community.
• It will generate an estimated $4,900 per year in income tax revenue from personal income taxes and at least $500,000 per year in personal property tax revenue.

What are the projected economic benefits to the State of Maryland of the Criterion Project?

• Construction of the project would generate $243,000 in state income tax revenue, $55,000 from sales tax from construction purchases, and $47,000 in sales tax on expenditures by workers.
• Operation of the project would generate $9,000 annually in state income tax revenue, $2,400 in sales tax on expenditures by workers and $9,000 in corporate income tax revenue.
• In addition, the presence of this project in Maryland creates an opportunity for the dollars that Maryland consumers spend on green power to flow to a renewable energy source that is within their state. The presence of Maryland wind facilities therefore helps to capture value that would not otherwise be available to support jobs and generate tax revenues in the state.

How close will the Criterion Project be to homes and other buildings?

No temporary residence will be located within 500 feet of any wind turbine and no permanent residence will be located within two turbine tower heights (a total of approximately 525 feet) of any wind turbine.

Will there be adverse impacts from noise related to the Criterion Project?

What is the expected visual impact of the Criterion Project?

During construction of each tower, cranes will be visible. During operation the wind turbines will be significant in the landscape within one half mile of the project, less visible from one-half mile to six miles, and blend into the landscape after that. Much of the project will be intermittently shielded by terrain and vegetation, reducing visibility from many highways and local roads.

How will the Criterion Project affect recreational activities in the vicinity of the site?

During the relatively short (eight month) construction period, there will be some disruption of recreational activities such as hunting in the immediate project area. The project will have no impact on recreational activities at Deep Creek Lake and the Potomac State Forest due to their distance from the project site.

If you receive necessary approvals, when do you plan to complete the Criterion Project?

Our projected operational start date is Dec. 15, 2003, prior to the expiration of the federal wind energy Production Tax Credit.

What happens to the turbines and related equipment at the Criterion site at the end of the project’s useful life? Do you have a decommissioning plan for the facility?

Clipper's professional staff is very experienced in managing all aspects of wind facility development, operation and shutdown. The facility is scheduled to be operational for approximately 20 to 30 years depending on prevailing power prices, equipment life expectancy and contract terms. At the end of the period of operation, Clipper will decommission the facilities unless Clipper and the landowner agree to operate the project beyond this period and all appropriate approvals can be obtained. Clipper is required as a condition of its license to operate to put in place a bond or similar mechanism that will provide for removal costs in the event we are financially unable to perform the removal.

How many wind energy projects does Clipper currently operate?

Clipper's development team has developed hundreds of megawatts of wind projects under the auspices of Zond Systems, Inc., which is now owned by General Electric (although there is no ownership connection between Clipper Windpower and GE). Clipper's CEO, James Dehlsen, is one of the pioneers of the wind industry and is one of the best known and most respected entrepreneurs in our business. If approved, the Criterion Project would be one of three projects that we expect to build in 2003, including one in Iowa and one in Texas. Clipper was founded in 2000. Clipper currently has over 3000 MW of projects in various stages of development throughout the U.S.

What happens if you do not get the Criterion Project built by the end of 2003?

The project would not be economically viable without the federal Production Tax Credit, which is due to expire at the end of 2003. If we could not make that deadline, then the project would be halted and could be terminated. Without this project, local landowners will find other economic uses of the land, most of which would involve significant environmental degradation. Two of the properties under lease are active farms that are marginally profitable. Wind represents the best economic use they have of the land that allows them to continue farming on all but the small portion of the land taken up by the wind turbines (1-2% for the turbine footprints themselves).