30% of all new power generating capacity added in the United States in 2007.

According to the Global Wind Energy Council’s Global Wind 2007 Report, Wind Power would offer a large carbon reduction “wedge” by contributing a 35% relative share from among the various renewable energy contributors, and can constitute about 20% of the U.S. electricity supply by 2030.

Growth in Demand for Wind Power and Our Position

Demand for wind power in the United States is growing rapidly. Our strategy to meet this demand is to take on new developments located in the Midwestern United States, where proper conditions exist for successful developments: acceptable wind resources, suitable transmission access and an appropriate regulatory framework providing acceptable power purchase agreements and long-term utility agreements.

In July 2008, the U.S. Department of Energy issued a report entitled 20% Wind Energy by 2030, discussing the viability of the potential for wind energy in the United States to grow to approximately 305 gigawatts from 2007’s level of approximately 11 gigawatts. This projected level of growth is estimated to cost billions of dollars per year for the next 22 years of growth. Large scale wind farms have to make up a segment of this growth.

Growth in wind power is being driven by several environmental, socio-economic and energy policy factors that include:

• Ongoing increases in electricity demand due to population growth and growth in energy consuming devices such as computers, televisions and air conditioning systems.
  
  
• The increasing cost of the predominant fuels required to drive the existing fleet of conventional electric generation such as coal, natural gas, nuclear and oil.
  
  
• The increasing cost and difficulty faced in the construction of conventional electric generation plants.
  
  
• Existing and growing legislative and regulatory mandates for “cleaner” forms of electric generation, including state renewable portfolio standards and the U.S. federal tax incentives for wind and solar generation.
  
  
• Ongoing improvements to wind power systems making them more cost effective and improving availability to meet demand, and Worldwide concern over greenhouse gas emissions and calls to reduce global warming due to the carbon dioxide produced by conventional electric generation.

In light of these factors and the resulting increase in demand for wind power, we believe that we are uniquely positioned to meet this growth and development of specific wind farms with our existing wind site locations for which we have completed the following:

• Initial feasibility studies and project design,
  
  
• We are under formation of required land right’s agreements to accommodate turbine placement on each project’s specific farm land
  
  
• We are performing transmission interconnection studies, design and agreements with independent system operators (ISOs) and utilities

Government Regulation

The U.S. power industry is currently in transition as it moves toward a more competitive environment in wholesale and retail markets. The commercial viability of wind power will increasingly depend upon pricing as the trend toward deregulation continues.

Our management anticipates that additional favorable government legislation will have a positive impact on our business.

Various state and federal governments have placed restrictions on fossil fuel emissions and it is anticipated that additional requirements for limitation of such emissions will continue.
Environmental legislation and regulations provide additional incentives for the development of wind energy by increasing the marginal cost of energy generated through fossil fuel technologies. For example, regulations such as the Clean Air Interstate Rule and the Regional Haze Rule have been designed to reduce ozone concentrations, particulate emissions and haze and other requirements to control mercury emissions can require conventional energy generators to make significant expenditures, implement pollution control measures or purchase emissions credits to meet compliance requirements.

We believe there is significant support in the U.S. to enact legislation that will attempt to reduce the amount of carbon dioxide produced by electrical generators. Although the ultimate form of legislation is still being debated, the two most likely alternatives are

• a direct emissions tax or
  
  
• a cap-and-trade regime.

We believe either of these alternatives would likely result in higher overall power prices, as the marginal cost of electricity in the U.S. is generally set by carbon intensive generation assets which burn fossil fuels such as oil, natural gas and coal. As a non-carbon emitter and a market price taker, we are positioned to benefit from these higher power prices.