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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) }

SLIDE 1

David G. Loomis, Ph. D. President, Strategic Economic Research, LLC

PLEASANT RIDGE EXHIBIT 118

SLIDE 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

SLIDE 3

} Quantify the economic impacts of the

Pleasant Ridge project

} Highlight the school district tax benefits

SLIDE 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

SLIDE 5

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

SLIDE 6

1. On-site Labor

and Professional Services

2. Equipment

Production and Supply Chain

3. Induced Economic Activity

(household purchases due to injection of income)

SLIDE 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.

SLIDE 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 ¡ ¡ ¡ ¡

SLIDE 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 ¡ ¡ ¡ ¡

SLIDE 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 ¡ ¡ ¡ ¡

SLIDE 11

Epilogue

Assumptions

Illinois’ financial crisis will continue

State income tax will be reduced
GSA entitlement will continue in proration
Transportation reimbursement will continue

in proration

EAV will increase by 2.2% annually

Plaintiffs will prevail in pension suits

Compromise: Legislature & schools will

share liability

Health care costs will rise

Premiums will increase significantly
Less-accommodating plans will follow

Enrollment trends will continue

Enrollment change will be flat
Low income, at-risk, special needs

populations will increase

District will have to adapt staff to at- risk & special needs growth & complexity

Technology, an integral part of teaching & learning, will lose its efficacy before (likely long before) it can be replaced Recommendations

Approach CBA negotiations with eye on diminishing revenues, pension cost shift, and health care changes

Continue to use CSFT (Livingston sales tax) resources strategically

Life-safety
Security/telecommunications
Technology infrastructure, permanent

installments

Pay-as-you-go OBM

Suspend major purchases otherwise, or

Consider entering further lease agreements

for technology, bus equipment

Reduce staff where possible

Increase regular class sizes to state

averages

Adopt attendance centers to maximize

efficiency in staffing, facilities

Eliminate all <1.5 mile bus pick-ups

Consider conventional revenue increase

Working cash bonds ($4.33 Million w/3-year

retirement @ $.75)

Permanent rate increase in education and

transportation

Encourage alternatives to property taxation

SLIDE 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.

SLIDE 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.

SLIDE 14

Ye Year ¡ Taxable V Taxable Valu alue e

f
f Win

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

$489,407 ¡ ¡

SLIDE 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

David G. Loomis, Ph. D. President, Strategic Economic Research, LLC

PLEASANT RIDGE EXHIBIT 118

} 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

} Quantify the economic impacts of the

Pleasant Ridge project

} Highlight the school district tax benefits

} Jobs and Economic Development Impacts

(JEDI) model

Laboratory

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

and Professional Services

Production and Supply Chain

(household purchases due to injection of income)

} 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.

Epilogue

} 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.

} 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.

} Pleasant Ridge Wind Energy Project will

support:

construction

during the life of the project

construction

the life of the project

Prairie Central School District

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