IDAHO FOREST GROUP ELECTRIC GENERATION PROJECT

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IDAHO FOREST GROUP ELECTRIC GENERATION PROJECT
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ABOUT IDAHO FOREST GROUP

• Largest independent forest products group based
  in Idaho
• Owns and operates four lumber manufacturing
  facilities located at Chilco, Grangeville,
  Laclede and Moyie Springs, Idaho
• Combined annual production of 900 million board
  feet
• IFG was formed by merger of Riley Creek Lumber
  Company and Bennett Forest Industries which was
  completed in October, 2008.

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DESCRIPTION OF POTENTIAL GENERATION FACILITIES

• GRANGEVILLE
• CHILCO
• LACLEDE
• All proposed biomass generating projects are
  located in close proximity to existing high
  voltage transmission facilities and regional
  transmission network.

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GRANGEVILLE
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GRANGEVILLE

• Located adjacent to town of Grangeville, Idaho
• Sawmill, boiler and kilns built new in 2005
• Potential name plate capacity 20 - 25 mW
• Electric Service provided by Avista under rate
  schedule 25
• Connected to Avista Wickes 110 kV substation
  located adjacent to mill property.

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CHILCO
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CHILCO

• Located 8 miles north of Coeur dAlene
• Purchased mill in 2003 from Louisiana Pacific
  complete up grade to state of the art
• Potential name plate capacity 30 - 35 mW
• Electric Service provided by Kootenai Electric
  Cooperative
• Service provided by a loop 24.9 kV primary
  distribution system with lines originating from
  BPAs Scarcello and Athol substations each
  located within three miles of the mill.

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LACLEDE
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LACLEDE

• Located 15 miles from Sandpoint
• Capacity of 240,000 MBF annually
• Potential name place capacity 20 - 25 mW
• Electric Service provided by Northern Lights,
  Incorporated, a rural electric cooperative
• Service provided by dedicated 13.2 kV primary
  distribution line which originates from NLIs 69
  kV Laclede substation located 3,000 feet from
  mill property.

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Biomass resource in north Idaho
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Biomass generation potential and benefits

• Stable, non-variable generation, can be
  scheduled
• 98 scheduling ability 50 weeks per year. Down 2
  weeks for scheduled maintenance
• In depth Resource Study in connection with Riley
  Creek/Bennett Merger
• Economic contribution from the generation of
  power adds to the economic stability of the
  Mills
• Carbon neutral

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OPPORTUNITIES FOR PUBLIC PRIVATE COLLABORATION

• Biomass Renewable Energy Zone
• Idaho Business Energy Tax Credit (Oregon Model)
• Idaho Biomass Tax Credit (Oregon Model)
• Agreement with Agencies (Academic, State and
  Federal) on development of technology for the
  economic harvest of slash and other bio-mass
  together with a long term plan for lands to be
  treated

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The Time is Right

• Idaho has an immediate need for power
• The impact on the environment is positive. Can
  improve our D rating
• The cost of capital will never be lower
• The decline in the cost of steel, copper and
  concrete will result in lower capital costs
• New investment in Bio- Mass handling equipment
  and training of crews will also stabilize job
  market and offer year around employment

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Our Goal

• A Talent and Technology driven approach that is
  Economically Viable