Business Method Patent Awarded for Guaranteed Windpower

ARMONK, N.Y., Jan. 20, 2011 /PRNewswire/ -- On December 14, 2010, the US Patent and Trademark Office granted a patent for "Risk shifting method for investments in wind power generation." The trade name for the system is Guaranteed Windpower. According to David Freund, the inventor of the system and President of Jupiter Renewables, "This system has the flexibility to decrease the energy rate for most wind farm financings. This innovation is the result of persistence and focus on the goal of lowering the cost of renewable energy." The system is most effective when used with Public Power companies like Austin Energy, CPS, LCRA and other municipal utilities. It can reduce the wholesale cost to below the levelized cost of coal and natural gas produced electricity. This turbo charged financing can reduce rates by up to 25% as compared to a conventional financing.

This is directly applicable to Austin. Mayor Lee Leffingwell recently said, "We have three goals" — meeting the 35 percent renewables target, doing so by 2020, and doing so affordably." Guaranteed Windpower increases the probability that the Mayor and Austin Energy can do all three.

In November, Austin Energy released its Affordability Benchmarking Study. This study compares renewable energy prices in different cities. It does not compare renewable energy prices to traditional power. In order to meet the aggressive goal, Austin Energy needs to add an additional 765 megawatts of wind according to the most recent Resource Generation Plan. One of the ways that Austin can reach this goal, while maintaining affordability, is by using the Guaranteed Windpower system. Austin is the right municipality to inaugurate this trailblazing program. It follows in the spirit of Austin Energy's earlier groundbreaking work in renewables.

Guaranteed Windpower combines the best of Public Power (tax exempt debt in the form of a prepayment) with the best of the private sector (access to federal tax benefits). Guaranteed Windpower turbo charges these strengths by adding guarantees for the project's risks.

The system allows everyone to get exactly what they want:

• Decreases the cost of wind energy
• Austin Energy has the option to be the long term owner
• City of Austin's credit is protected because the bonds are not their obligation during the guaranteed period
• Tax investors have a high investment grade floor return
• Developers earn healthy fees

Contact: David Freund, 914-582-9551

SOURCE Jupiter Renewables