I. Introduction

1. My name is Seabron Adamson. I am a Senior Consultant associated with the Energy Practice of Charles River Associates (“CRA”). My business address is 200 Clarendon Street, T-32, Boston, MA 02116. __________________________________

A. Purposes of the Report

2. I have been asked by counsel for Mesa Power Group, LLC (“Mesa”) to comment on several economic and policy issues relating to a dispute between Mesa and the Government of Canada regarding competition to obtain contracts to supply wind energy (Power Purchase Agreements or “PPAs”) in the Province of Ontario.

3. During the period in question in Ontario, renewable energy PPAs were offered under a feed-in tariff mechanism. A feed-in tariff is a mechanism under which long term PPAs (typically 15-20 years) are offered to suppliers at pre-determined fixed prices. Since prices are fixed under the type of mechanism, the competition is to secure quantities of PPAs in order to make sales. In Ontario, a major constraint on securing PPAs to sell wind energy was securing transmission capacity.