# Presentation: 094743

## Wyoming Wind Energy Project

**Ideas for Developing a  **
**Wind Energy Cooperative**
**Albany County Fairgrounds**
**Laramie, WY**
**March 22, 2007**
**Bill Brockhouse**

## What Is a Cooperative?

- A business
- Owned and democratically controlled by the people who use its services
- Whose benefits are distributed equitably on the basis of use

## Cooperative Principles and Practices

- User-Benefit
- User-Owner
- User-Control
- Cooperation among cooperatives
- Patronage Refunds

## User-Benefit                                                               

- Access to markets for members’ products
- Purchasing items and/or services for members
- Sharing in earnings in proportion to use

## User-Owner                                                                 

- Members own co-op
- Members capitalize co-op
- Upfront investment
- Ongoing: retained earnings and per-unit retains

## User-Control                                                                 

- One-member one-vote _ __*or*__ _  weighted voting based on use (patronage)
- Members exercise control by:
**Electing directors, usually members**
**Approving articles and bylaws**
**Voting on major changes in the business**

## Patronage Refunds                                                                 

- Percentage of net margins (or profit) returned to members at year’s end
- Based on use

## Patronage Refund ConceptExample                                                                  

**ABC Cooperative negotiated a joint lease of  $40,000, net of expenses,  for landowners with 20,000 acres of land.**
**1,000 of those acres (or 5 percent of the total) belong to Mr. Smith.**
**Mr. Smith is entitled to a patronage refund of ($40,000 x .05) = $2,000 **

## Organizational Structure of Cooperatives

- Members
- Directors, officers, board committees
- Management
- Employees

## Steps to Develop a Cooperative

- Exploratory meeting
- Potential member survey
- Feasibility study
- Business plan
- Legal documents
- Implement the business

## Development Plan

**Advisors**
**Scope of project**
**Potential members**

**Development Plan**

## Development Plan

**Survey questionnaire.**
**Survey potential members. **
**Tabulate survey results.**
**Complete survey report.**

**Development Plan**

## Development Plan

**Cooperative functions**
**Location of land **
**Amount of land owned**
**Wind resources currently identified**
**Willingness to join, finance, and use the cooperative**

**Development Plan**

## Development Plan

**Determine cooperative’s functions and costs. **
**Analyze returns for the scale of wind energy project under consideration.**
**Complete a business plan.**
**Conduct equity drive.**
**Hire manager/negotiator/attorney. **
**Incorporate the business.**
**Develop the lease agreement.**
**Negotiate with wind energy developer. **

**Development Plan**

## Factors to Examine  /1

**Energy price levels**
**Wind resource**
**Transmission access**
**Land value**
**Based on Windustry’s “Wind Energy Easements and Leases”**

**Factors to Examine  /1**

## Factors to Examine

**Turbine size**
**Public policy**
**Competition**
**Community support**
**Community and landowner knowledge base**

**Factors to Examine**

## Compensation Packages

**One-time lump sum**
**Fixed payment**
**Royalty payments**
**Combination **
**Risks and rewards**
**Option period for feasibility assessment**

**Compensation Packages**

## Examples of Landowners and/or Communities Working Together

**together**
**Solano county, CA ($9,500/turbine/year)**
**Worth county, IA ($2,400/turbine/year)**
**North central NE ($2,500/turbine/year)**
**Jackson and Martin counties, MN ($3,500/turbine/year)**
**Cherry Valley, NY**
**Lincoln County, MN**

**Examples of Landowners and/or Communities Working Together**

## Development Plan

**Pre-feasibility analysis and identification of issues/assumptions.**
**Identify potential community partners.**
**Feasibility study.**

**Development Plan**

## Feasibility Study

**Profitability of wind turbine project**
**Pricing trends for electricity**
**Technology to be employed and turbine manufacturers **
**Programs and regulations in effect in Wyoming**
**Proximity to power lines**
**Utility and transmission cooperation**
**Community involvement/support**
**Capitalization, loans, and grants**

## Development Plan

**Specify organizational and financial structure.**
**Business plan.**
**Equity drive.**
**Incorporate.**
**Build project and begin operating.**

**Development Plan**

## Community Wind Examples

_**Tangier Island, VA**_
**Chesapeake Bay, VA**
**Community-owned wind energy project**
**As of 2/27/07: feasibility study ongoing**
**Developed and owned, in full or in part, by local government or community-based business**
**Maximizes for the community the economic opportunities of wind power generation.**
**Stakeholders include VA agencies, US Fish and Wildlife Service, Nature Conservancy**

## Community Wind Examples

_**Minwind**_**, Luverne, MN (Windustry Case Study)**
**2004: Minwind Energy installed 7 new community wind energy projects.**

## Community Wind Examples

_**Minwind**_**, Luverne, MN (Windustry Case Study)**
**Objectives **
**Generate renewable energy**
**Create local employment from harnessing**
**wind**
**Maintain group ownership**
**Keep profits local**
**Use proven technology**
**Sustain stable management**
**Create long-term marketing**

## Community Wind Examples

**Minwind, Luverne, MN (Windustry Case Study)**
**Cooperation, persistence, and creative funding. **
**Shareholders - $500 for R&D   **
**Governance – each project has separate board of shareholders. **
**Local ownership: creates 2.3 times as many jobs and 3.1 times greater local economic benefits than land lease model. **

## Community Wind Examples

**Minwind, Luverne, MN (Windustry Case Study)**
**LLC **
**All shareholders must be Minnesota ****	****	****	****residents.**
**85% must be from rural communities. **
**Ownership limited to 15% per project ****	****	****	****for each investor. **
**USDA renewable energy grants**

## Next steps

**Form steering committee**
**Survey of landowners**
**Bargaining cooperative **
**Feasibility study/business plan**
**Community wind**
**Identify interested partners**
**Exploratory meetings **
**Pre-feasibility study**