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The Company has been working diligently with its consultants to determine the final design for the
Arizona project. Previously the Company announced that the number and length of the wind tunnels
surrounding the base of the Tower had been reduced from 60 tunnels of 300 length down to 40 tunnels
of 150 length and that the number of turbines in each tunnel had been increased from 2 to 3. This final
tunnel/turbine design decision predicts a significant increase in annual energy output in total Megawatt
Hours available to sell.
The next design challenge was to evaluate the impact on power output if the height and/or diameter of
the Tower were decreased which would lower the overall cost of the project as well as shorten the
construction time. After running many iterations of changes in heights and diameters and comparing the
results with the financial benefits of capital costs and potential revenue models, the Company has
concluded that the best overall design is for the Tower to remain at 2250 in height with no changes in
diameter feeding 40 tunnels with three turbines in each tunnel.
The Company has begun working with its contractor/consultant to revise the construction budget and
believes that any potential cost increased from the original estimates should be offset by the cost savings
expected from reducing the overall tunnel lengths from 18,000 down to 6,000.
The Company has chosen to maintain the original size of the project and increase the energy output and
thereby, potentially increasing sales from the increased megawatt production. As a result of these
decisions, Arizona Green Power LLC has submitted an Amended Pre-Certification Application to the
California Energy Commission. The application seeks to increase the Nameplate Capacity (total
generating ability) from 1230 MW to 1750 MW. This new capacity amounts to up to a 40% increase in
output.