V
SEPA
GREEN
POWER
PARTNERSHIP9
Aligning Green Power Partners with New Renewable Energy Projects
Pilot Project Summary
Project Name: Chapman Ranch I, LLC
Developer Name: Apex Wind Energy Holdings, LLC
Contact: Greg Cardenas, gregffiapexwind.com
Renewable Energy Type: Wind Energy
Total Planned Megawatt Size:	Phase I: 200MW	Phase II: 100 MW
Project Location: Nueces County, Texas (Gulf Coast / South Texas)
Is the project permitted?: At this time, no discretionary permits are required. The Project has minimal
permitting requirements; only standard administrative permits and consultations are required prior to
the start of construction.
Extensive environmental studies have been performed across the Project area consistent with US Fish
and Wildlife Service (USFWS) recommendations, including six seasons of avian use surveys and a
wetlands delineation. The results of these studies indicate that wildlife and environmental concerns
within the Project area are typical for the region, and no significant impacts to federal endangered
species are expected. Apex is preparing an Avian and Bat Protection Plan (ABPP) that proposes typical
post-construction species monitoring, and we anticipate both USFWS and Texas Parks and Wildlife
Department to concur with our proposed ABPP.
Chapman Ranch is located in the vicinity of two U.S. Navy facilities (Naval Air Station Kingsville and Naval
Air Station Corpus Christi). Apex is negotiating a Memorandum of Agreement (MoA) with the US Navy
and Department of Defense that would allow Chapman Ranch to proceed while also protecting the
operational interests of both bases.
If no, what is the permit status?: N/A
What is the status of the project's site?: Chapman Ranch has obtained full site control for Phase I. The
Project will be sited on privately owned lands located outside of the Corpus Christi city limits on
unincorporated land in Nueces County (approximately 15,000 acres for Phase 1). Leases with a term of
30 years, and a 15 year renewal option, have been signed for all acreage.

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Have land leases been filed with the county?: Yes.
What is the status of interconnection, and have system impact and facility studies been completed?
(Distribution or transmission level projects are both eligible): The ERCOT Interconnection Study
(Facilities Study) has been completed and we are in process of acquiring the required Transmission
ROW. The IA is currently under negotiation and is expected to be completed by Q3/2014. The Project
will interconnect to the Nelson Sharpe 345KV substation which will be built and owned by AEP Texas.
Does the transmission owner (TO) or independent system operator (ISO) have a process to study the
project's impact on the local or regional grid and the subsequent cost to interconnect?; Yes, the
project's impact on the grid and cost of interconnection were analyzed as part of the ERCOT
Interconnection Study.
Environmental Impact Statement status: There is no federal nexus that would trigger the need for an
Environmental Impact Statement under the National Environmental Policy Act. Apex has coordinated
with Texas Parks and Wildlife and U.S. Fish and Wildlife Service on baseline studies and incorporated
agency recommendations in siting of project features to avoid or minimize impacts to sensitive
environmental resources. The environmental studies completed to date suggest that impacts to
sensitive environmental resources are not expected during construction or operations of the project.
Is any element of the project - technology or other - experimental or pilot-phase?: No. Chapman
Ranch will utilize only commercially proven technology.
What is the long- and short-term operations program of the project? Does the renewable energy
technology manufacturer have a technical support team locally available?: Apex currently anticipates
using a manufacturer that has supplied turbines to eight major projects, with several hundred turbines
currently in operation in Texas. The expected supplier maintains a large local presence and will be able
to provide reliable and prompt service when and as required, including maintenance of an adequate
spare parts inventory.
For wind projects, has a meteorological tower been installed, and when was the tower installed/how
much data has been collected?: The Project Site contains five (5) Met towers. Two Met towers have
been installed since May 2009, and two additional Met towers were installed in September and
Novemeber, 2010. A fifth Met tower was installed in April 2013. A cumulative 152 months of
meteorological data has been recorded.
Who has analyzed the data and what is that person's experience with respect to projects that have
actually been financed?: The Project retained GL-Garrad Hassan (GLGH) to review the Met data..
Further, the Apex development team has been developing wind projects in the Gulf Coast region for 12
years, including the Gulf Coast Wind Project in Kenedy County.
Can the turbine manufacturer be financed through "traditional" tax equity and debt in the U.S.?:

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Yes. The selected turbine manufacturer will be one of the leading suppliers to the US wind energy
industry and will be able to satisfy the requirements of both debt and equity investors, including tax
equity.
Provide a short summary of how the project views project finance and structure/ownership: Apex
Wind Energy's financing plan for the Chapman Ranch Project will be similar to our recent financing of
the 300MW Canadian Hills Project which we completed in December, 2012. Construction financing, in
the amount of roughly 55% of Project Cost is expected to be provided by a group of commercial banks
on a limited-recourse basis (first priority security interest in all Project assets). The balance of funds
necessary to complete construction of the Project will be provided by the equity investors in Chapman
Ranch I, LLC. Currently Apex owns 100% of the Project equity; however, our standard business practice
is to sell substantially all of our ownership interest to a long term investor (Sponsor Equity) at the start
of construction with a full transfer of our ownership interests as of the Commercial Operation Date.
The Chapman Ranch Project has a unique, and particularly attractive, generation profile as it generates
peak production during the afternoon hours. Due to this unique profile, and its high capacity factor, we
believe the Chapman Ranch Project represents an attractive generation source for utility and/or
corporate off-take customers who are seeking to access renewable energy at fixed (or fixed with stated
escalation) rates over the long term. The strength of the off-take contract will ultimately determine the
terms of the financing; however we believe Chapman Ranch will be one of the most competitive sources
of wind energy in the ERCOT market.
What are your ideal types of prospective institutions/partners?: The Apex management team has
closed over $10 billion in financing for wind projects completed in the US and is well regarded by debt
and equity investors (including tax equity) that are active in the market today. The Apex development
portfolio consists of 5,700MW of projects throughout the US. Accordingly, we maintain a constant
dialogue with debt and equity investors across the spectrum to ensure that we understand the current
market conditions and appetite for projects of the type that we plan to bring to market. Since Chapman
Ranch will benefit from the US Federal Production Tax Credit, Apex will utilize tax equity under a
standard tax-equity flip structure that will fund as of the Commercial Operation Date - with such
proceeds being used to repay construction debt financing provided by commercial banks. The balance of
funds will be provided by "Sponsor Equity" to be selected by Apex. Sponsor Equity may represent
strategic investors (independent power producers), institutional investors (insurance companies,
pension funds), or private equity or other equity funds in addition to Apex's balance sheet. Typically, we
would expect to present the investment opportunity to several debt and equity sources prior to
selecting the parties that provide the most favorable terms and certainty of execution. However, all of
the investors and debt providers will be highly experienced investors with substantial current experience
in the wind industry.

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