Although the majority of wind development has been financed through bank loans and preexisting balance sheet capital from utilities, George K. Baum & Company is confident that the bond capital markets can be used to finance wind projects more economically with more attractive terms. Because [well founded] wind projects have high initial capital expenses and generate stable revenue over long periods of time, we see a project revenue-based bond financing as a viable and effective method of finance. The benefits, including those listed below, give more flexibility to help clients get projects financed and built.

Tax-exempt, lowest cost - Depending on the type of project and the tax status of the developer, either taxable or tax-exempt debt could be issued to pay for a wind farm. Current government legislation does not allow private developers to issue tax-exempt bonds, thereby requiring them to issue taxable debt. However, municipalities as well as 501(c)(3) nonprofit organizations may be able to issue tax-exempt bonds for renewable projects and take advantage of among the lowest cost of capital.

Repayment term - Among the most beneficial aspects of bond financing is the ability to custom tailor the length of repayment. Typical bank loans for wind energy projects have a term of 10 years which does not correspond well to the 20-year duration of a most power purchase agreements. With bond financing, issuers can amortize over 15 to 20 years to match the project life. Generally, projects must be at least five megawatts in size for bond financing to be viable, although several smaller projects can be pooled together to form one single project financing.

What we do - George K. Baum & Company takes responsibility for all aspects of the financing plan through underwriting and closing the bond issue. Our professionals provide the following financing products and can assist in determining the best overall transaction structure (including determining the best ownership vehicle and financial products) to meet your individual needs.

Financing for Developers and For-Profit Entities or "Private Use" Projects (those ineligible for tax-exempt bond financing)

• Taxable Fixed Rate Bond Financing (lowest risk, higher cost)
• Taxable Variable Rate Bond Financing (Better credit worthiness required, potentially lowest cost, higher risk

• Tax-Exempt Bond Financing (variable and fixed rate options)
• Clean Renewable Energy Bonds (Zero-Interest financing for Governmental Entities and Coops)