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PLEASANT RIDGE EXHIBIT 118 David G. Loomis, Ph. D. President, Strategic Economic Research, LLC } Ph.D. in Economics, Temple University, 1995 } Professor of Economics, Illinois State University, since 1996 (full professor 2010) }


  1. PLEASANT RIDGE EXHIBIT 118 David G. Loomis, Ph. D. President, Strategic Economic Research, LLC

  2. } Ph.D. in Economics, Temple University, 1995 } Professor of Economics, Illinois State University, since 1996 (full professor 2010) } Director, Center for Renewable Energy, ISU, since 2007 } Director, Illinois Wind Working Group, since 2006 } Over 25 peer-reviewed publications } Expert testimony before County Boards, Senate Committees and regulatory bodies

  3. } Quantify the economic impacts of the Pleasant Ridge project } Highlight the school district tax benefits

  4. } Jobs and Economic Development Impacts (JEDI) model ◦ Developed by the National Renewable Energy Laboratory ◦ Wind Energy Model W4.28.14 ◦ Based on the IMPLAN model

  5. Local Expenditures Initial Investment Initial CapEx + Regional + State/Regional Multiplier Ongoing Expenditures Effect Operations Expenditures Non-Region Economic 
 Expenditures “Leakage” 5

  6. 2. Equipment Production and Supply Chain 1. On-site Labor 3. Induced Economic Activity and Professional (household purchases due to Services injection of income) 6

  7. } Results are an estimate and highly dependent on the assumptions used. } Results are not a measure of project viability. } Results report gross jobs not net jobs. } Assumptions around local sourcing and procurement are fundamental in determining local economic activity. } Jobs are reported as Full-Time Equivalent (FTE) jobs. 7

  8. ¡ Livingsto ton County ty ¡ Sta tate te of Illinois ¡ Constr tructi tion ¡ ¡ ¡ Project t De Development t and Onsite te Labor Impacts ts ¡ 177 ¡ 293 ¡ Turbine and Supply Chain Impacts ts ¡ 173 ¡ 350 ¡ Induced Impacts ts ¡ 34 ¡ 151 ¡ New Local Jo Jobs during Constr tructi tion ¡ 384 ¡ 794 ¡ ¡ ¡ ¡ Operati tions ¡ ¡ ¡ Onsite te Labor Impacts ts ¡ 13 ¡ 13 ¡ Local Revenue and Supply Chain Impacts ts ¡ 56 ¡ 71 ¡ Induced Impacts ts ¡ 23 ¡ 53 ¡ New Local Long Term Jo Jobs ¡ 92 ¡ 137 ¡ ¡ ¡ ¡

  9. ¡ Livingsto ton County ty ¡ Sta tate te of Illinois ¡ Constr tructi tion ¡ ¡ ¡ Project t De Development t and Onsite te Ea Earnings Impacts ts ¡ $14,225,724 ¡ $22,587,945 ¡ Turbine and Supply Chain Impacts ts ¡ $8,621,857 ¡ $19,107,481 ¡ Induced Impacts ts ¡ $1,192,681 ¡ $8,942,938 ¡ New Local Ea Earnings during Constr tructi tion ¡ $24,040,262 ¡ $50,638,365 ¡ ¡ ¡ ¡ Operati tions ¡ ¡ ¡ Onsite te Labor Impacts ts ¡ $992,775 ¡ $992,775 ¡ Local Revenue and Supply Chain Impacts ts ¡ $2,213,887 ¡ $4,381,792 ¡ Induced Impacts ts ¡ $835,483 ¡ $3,277,260 ¡ New Local Long Term Ea Earnings ¡ $4,042,145 ¡ $8,651,827 ¡ ¡ ¡ ¡

  10. ¡ Livingsto ton County ty ¡ Sta tate te of Illinois ¡ Constr tructi tion ¡ ¡ ¡ Project t De Development t and Onsite te Jo Jobs Impacts ts on Outp tput ¡ $15,179,929 ¡ $23,122,217 ¡ Turbine and Supply Chain Impacts ts ¡ $36,192,872 ¡ $47,284,227 ¡ Induced Impacts ts ¡ $4,330,233 ¡ $24,624,855 ¡ New Local Outp tput t during Constr tructi tion ¡ $55,703,034 ¡ $95,031,298 ¡ ¡ ¡ ¡ Operati tions (Annual) ¡ ¡ ¡ Onsite te Labor Impacts ts ¡ $992,775 ¡ $992,775 ¡ Local Revenue and Supply Chain Impacts ts ¡ $16,068,530 ¡ $19,417,277 ¡ Induced Impacts ts ¡ $3,033,528 ¡ $9,024,953 ¡ New Local Long Term Outp tput ¡ $20,094,833 ¡ $29,435,006 ¡ ¡ ¡ ¡

  11. Epilogue Assumptions Recommendations Illinois’ financial crisis will continue ! Approach CBA negotiations with eye on ! • State income tax will be reduced diminishing revenues, pension cost shift, • GSA entitlement will continue in proration and health care changes • Transportation reimbursement will continue Continue to use CSFT (Livingston sales in proration ! EAV will increase by 2.2% annually tax) resources strategically ! Plaintiffs will prevail in pension suits • Life-safety ! • Security/telecommunications • Compromise: Legislature & schools will • Technology infrastructure, permanent share liability installments Health care costs will rise ! • Pay-as-you-go OBM • Premiums will increase significantly Suspend major purchases otherwise, or ! • Less-accommodating plans will follow • Consider entering further lease agreements Enrollment trends will continue ! for technology, bus equipment • Enrollment change will be flat Reduce staff where possible ! • Low income, at-risk, special needs • Increase regular class sizes to state populations will increase averages District will have to adapt staff to at- ! • Adopt attendance centers to maximize risk & special needs growth & complexity efficiency in staffing, facilities Eliminate all <1.5 mile bus pick-ups Technology, an integral part of teaching ! ! & learning, will lose its efficacy before Consider conventional revenue increase ! (likely long before) it can be replaced • Working cash bonds ($4.33 Million w/3-year retirement @ $.75) • Permanent rate increase in education and transportation Encourage alternatives to property ! taxation

  12. } Prairie Central is “Financial Review” by the Illinois State Board of Education and “monitored for potential downward trends } Annual budget deficits are projected from 2015-2019 growing to over $1.4 million in debt by 2019. } Reductions of staff; suspension of purchases and elimination of bus pickups are all recommended by the school superintendent.

  13. } Assumes that the valuation of the wind farm is the same as set forth in Public Act 095-0644. } Assumes inflation is constant at 2.2% and the depreciation is 4% until it reaches the maximum of 70%. } Assumes a constant overall tax rate of 9.3471% and a constant school district tax rate of 4.8215%. } Assumes that the wind farm is placed in service on January 1, 2016 at a fair cash value of $103,295,187 according to Public Act 095-0644. } Assumes that the wind farm is decommissioned in 20 years and pays no more taxes. } Assumes no changes in the school funding formula or the foundation level determined by the state.

  14. Taxable V Taxable Valu alue e Reducti tion in Sta tate te Net t School enue ¡ ¡ Ye Year ¡ of of Win Wind Farm d Farm ¡ Tota tal Taxes ¡ Tota tal School ¡ Aid ¡ Aid Rev Reven $1,660,133 ¡ ¡ 2016 2016 ¡ $34,431,728.97 ¡ $3,218,376 ¡ $1,660,133 ¡ 0 ¡ $595,838 ¡ ¡ 2017 2017 ¡ $33,781,658 ¡ $3,157,613 ¡ $1,628,789 ¡ $1,032,952 ¡ $581,814 ¡ ¡ 2018 2018 ¡ $33,086,319 ¡ $3,092,619 ¡ $1,595,263 ¡ $1,013,450 ¡ $566,885 ¡ ¡ 2019 2019 ¡ $32,344,034 ¡ $3,023,236 ¡ $1,559,474 ¡ $992,590 ¡ $551,017 ¡ ¡ 2020 2020 ¡ $31,553,076 ¡ $2,949,304 ¡ $1,521,338 ¡ $970,321 ¡ $534,177 ¡ ¡ 2021 2021 ¡ $30,711,660 ¡ $2,870,656 ¡ $1,480,769 ¡ $946,592 ¡ $516,329 ¡ ¡ 2022 ¡ 2022 $29,817,951 ¡ $2,787,120 ¡ $1,437,678 ¡ $921,350 ¡ $497,437 ¡ ¡ 2023 2023 ¡ $28,870,054 ¡ $2,698,519 ¡ $1,391,975 ¡ $894,539 ¡ … ¡ … ¡ … ¡ … ¡ … ¡ … ¡ $304,003 ¡ ¡ 2031 2031 ¡ $19,088,960 ¡ $1,784,268 ¡ $920,378 ¡ $616,375 ¡ $273,895 ¡ ¡ 2032 2032 ¡ $17,558,025 ¡ $1,641,170 ¡ $846,564 ¡ $572,669 ¡ $242,315 ¡ ¡ 2033 2033 ¡ $15,950,490 ¡ $1,490,912 ¡ $769,056 ¡ $526,741 ¡ $258,337 ¡ ¡ 2034 2034 ¡ $15,282,564 ¡ $1,428,480 ¡ $736,852 ¡ $478,515 ¡ $294,586 ¡ ¡ 2035 2035 ¡ $15,618,780 ¡ $1,459,906 ¡ $753,063 ¡ $458,477 ¡ $301,067 ¡ ¡ 2036 2036 ¡ $15,962,393 ¡ $1,492,024 ¡ $769,630 ¡ $468,563 ¡ $307,690 ¡ ¡ 2037 2037 ¡ $16,313,566 ¡ $1,524,849 ¡ $786,562 ¡ $478,872 ¡ -$489,407 ¡ ¡ 2038 2038 ¡ $0 ¡ $0 ¡ $0 ¡ $489,407 ¡ ¡

  15. } Pleasant Ridge Wind Energy Project will support: ◦ 384 new local jobs in Livingston County during construction ◦ 92 new local long-term jobs in Livingston County during the life of the project ◦ $55.7 million in economic output during construction ◦ $20.1 million in economic output annually during the life of the project ◦ An average annual net increase of $428,408 to Prairie Central School District

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