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Indianapolis Power & Light Co. (IPL) purchases renewable energy through its Rate Renewable Energy Production (REP). The [http://www.iplpower.com/uploadedFiles/iplpowercom/Business/Programs_and_... REP rate], commonly called a "feed-in tariff," is a payment for the production and renewable energy attributes associated with that production from renewable energy facilities. Renewable energy facilities eligible for IPL's Rate REP include solar, wind, and biomass located in IPL's territory. Biomass facilities include those that use crops grown specifically for energy production, organic waste biomass such as agricultural crops, wastes, wood and wood waste, animal waste, and aquatic plants.

In March 2012, the criteria for qualified projects was modified and approved by the Indiana Utility Regulatory Commission (“IURC”) which also authorized a reverse auction to be conducted in 2012 for up to 30% of the energy available under Rate REP. The total amount that IPL is authorized to purchase is 153,000 MWh per year. Facilities that take the Rate REP cannot net meter. Rate REP is a pilot rate under which no new contracts will be negotiated after March 30, 2013 unless IPL requests and the IURC approves an extension.

The deadline for applications for interconnection at the Level 3 classification (projects larger than 750 KVA, click [http://www.iplpower.com/content.aspx?id=313 here] for more information) for more information) for renewable energy projects that intend to utilize compensation under Rate REP (Renewable Energy Production) must be submitted by August 24, 2012. Smaller Level 2 projects must apply for interconnection no later than October 1, 2012. Rate REP, by its terms, will expire on March 30, 2013. The time required to process the facilities study, negotiate an interconnection and power purchase agreement and obtain necessary IURC approvals precludes an application after August 24, 2012 from being processed prior to the expiration date of Rate REP.