The document discusses a strategy to monetize a property in Santa Cruz, Puerto Rico through the development of a solar photovoltaic (PV) project. It proposes marketing the property to solar developers and energy companies to leverage its value for renewable energy. The target price for the property is $40 million. Westfield Energy will act as a consultant and broker, with the goal of negotiating a sale above $40 million and earning a fee from the sale. If successful, it would help increase renewable energy production in Puerto Rico.

1. SANTA CRUZ
Monetization through Development of a Solar PV Project
February 7, 2013 Atlanta, Georgia
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2. RENEWABLE ENERGY
• Increasing oil prices have driven PREPA’s
rates to double that of the US average rate
of 11 cents per kWh
•PREPA’s current system is oil reliant
•In order to address this, PREPA has a plan
to either convert its plants to dual fuel or
to source non-oil reliant PPAs
•PREPA plans to increase its renewable
energy from 1% of its portfolio in 2012 to
16% by 2016
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3. PHOTOVOLTAIC SOLAR (PV)
• Photovoltaic (PV) systems help the
environment by producing clean,
renewable energy that replaces energy
produced by power plants that burn coal,
oil, and natural gas.
• The amount of solar energy available on
earth for PV power is 10,000 times greater
than the total world energy use
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4. SOLAR ECONOMICS
• $1.60 - $1.80/Watt Construction Costs
•$.06 - $.07/KWh Generation Cost
•$.24/KWh PREPA Retail Price
•$.13 - $.15/KWh PPA Prices
•Interconnection Costs
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5. KEY GLOBAL SOLAR DEVELOPERS
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6. HYBRID DEVELOPERS
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7. TOP GLOBAL SOLAR PROJECTS
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8. PROJECTS IN P.R.
•AES Ilumina, 24 MW Guyama
•Western Wind, 30 MW Yabucoa
•Salinas Solar (Sonnedix, Yarotek)
12 MW
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9. EXISTING POWER INFRASTRUCTURE
In 2011, 68 percent of Puerto Rico’s
electricity came from petroleum, 16 percent
from natural gas, 15 percent from coal, and
1 percent from hydroelectric power.
Puerto Rico has adopted a Renewable
Portfolio Standard requiring 20 percent of
net electricity sales to come from
renewable energy resources by 2035.
The existing power system in Puerto Rico
has an installed capacity of approximately
5,830 MWs and a peak load of about
3,350 MW.
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10. SANTA CRUZ MONETIZATION STRATEGY
•Property will be marketed to leverage its value in the renewable
energy space.
•Potential counterparties will include key global solar developers,
global energy producers, as well as PREPA and PRLA
•Approximate target price for parcel in its entirety is $40 million
•Westfield Energy will leverage relationships with the
overarching energy industry as well as with state controlled
entities
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11. SANTA CRUZ MONETIZATION STRATEGY
– CONT’D
• Westfield Energy will serve as consultant and broker to
ownership group
• Ownership group will commit to allow Westfield Energy
exclusive rights to negotiate with renewable energy
developers, global energy companies, and state
authorities on the parcel for a rolling three year time
period terminating when final negotiations have ceased
with a given counterparty
• Minimum price to be established by ownership group
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12. SANTA CRUZ MONETIZATION STRATEGY
– CONT’D
• Ownership group retains all rights to market and sell property
completely unencumbered to any other entity at any time
outside of the scope of the agreement with Westfield Energy.
• Ownership group is bound to sell the property if minimum threshold
price is negotiated by and contracted with Westfield Energy
counterparty as defined in Agreement.
• A six percent (6%) fee calculated on the purchase price will be
paid to Westfield Energy directly by the Purchasing Party.
• Ownership group will only pay a fee on the amount of the purchase
price that exceeds $40 million.
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13. SANTA CRUZ MONETIZATION STRATEGY
– CONT’D
• Ownership group to pay a 10% fee to Westfield Energy on the
amount of the purchase price that exceeds $40 million.
• Ownership group has complete access to all bids, proposals, and
counterproposals disseminated between parties.
• Ownership group to establish one primary contact for reporting
and informational purposes between Westfield Energy and
ownership group.
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14. A SUCCESSFUL PARTNERSHIP
Tom Coleman is the Principal at Westfield Energy, LLC. Mr.
Coleman has been working in the energy industry since 1990 upon
his graduation from Vanderbilt University’s Owen Graduate School
of Management. Mr. Coleman has held leadership roles at Williams
Energy, Southern Company, Bear Stearns, and JP Morgan prior to
starting Westfield Energy. His experience includes negotiating
highly structured electric tolling deals, municipally financed natural
gas and electric prepays, electric power purchase agreements, M&A
negotiations, renewable energy tax benefit transactions, land
acquisition and sale, and energy related commercial real estate
transactions. Over the course of his 20 plus years of experience he
has developed relationships with IOU counterparties, state run
power and gas authorities, LDCs, VC backed projects, and renewable
project developers.
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15. Tom Coleman
Westfield Energy(404) 277-1552
westfieldenergyatl@gmail.com
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