In 2009, we expect renewable energy to account for approximately eight percent of NHEC's energy purchases in the form of either RECs produced by resources we are purchasing energy from, or RECs from facilities beyond those we purchase energy from, or, if we cannot obtain sufficient RECs, in the form Alternative Compliance Payments.

It should be noted that an additional five percent of NHEC's power supply is generated by the Waste Management landfill gas-to-electric plant in Rochester, NH. Though electricity produced with landfill methane qualifies as renewable energy, NHEC cannot claim this electricity as a renewable resource towards our RPS obligations because our contract for that electricity goes back to 1999, before Renewable Energy Credits were envisioned, so did not include rights to receive the RECs it produces today.

When exploring the purchase of renewable energy, the Co-op Board and staff have a resource procurement approach aimed at managing risk and cost volatility through diversity, flexibility, and optionality. NHEC manages risk through:

• Balancing firm bilateral contract v. NEPOOL spot market purchases
• Staggering contract term lengths
• Using multiple suppliers
• Weighing generation ownership v. purchased power contracts

NHEC continues to entertain all options and sources that may provide renewable energy to its members while striving to keep costs to a minimum.