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Re: exisnet post# 12781

Wednesday, 02/13/2013 11:34:21 PM

Wednesday, February 13, 2013 11:34:21 PM

Post# of 36237
I received a clarification from the company regarding your "Power companies sell by MW, not by kwh over year time, do the math" comment. Feel free to email the company if you have any further questions about this who can also confirm the following statements are true. I hope this helps.

As we move towards the PPA it is important to note that this is not true. Our 37.5 MW plant needs to generate electricity which is measured in kWh. We cannot sell 37.5 MW if we do not generate electricity. There are times when MW are used as part of the overall formula to calculate the price, but that varies greatly and in the end our PPA, like all other PPAs in Costa Rica, will have a $/kWh price.

Let me explain. At times power companies have formulas that use MW as a component to calculate the $/kWh. We do not get into that detail as it really does not matter to investors or shareholders as much as the final $/kWh.

If the comment above is true, we never have to turn the blades as the plant whether operational or not will be 37.5 MW. Furthermore, the wind resource matters. A 2.5 MW machine may not generate as much in Site A, as Site B, the output matters and our plant like any energy generation plant produces kWhs or Gwhs not MWs.

If we have $0.10/ kWh, then our reported generation means something tangible to the shareholders. We have not finalized the price as that is part of the ongoing negotiations, but the price will be quoted as such once we finalize.

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