Alternate Energy Holdings, Inc. (AEHI.PK)

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December 3, 2010 Issue

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With Nuclear Becoming The Baseload Source Of Choice By The Utilities, Alternate Energy Holdings, Inc. Is In The Right Place At The Right Time Building A Nuclear Power Plant In Idaho To Supply Power To The Western United States Where There Are New Sources Coming Online

Company Profile:

Alternate Energy Holdings, Inc. (AEHI) is a unique corporation founded by former senior executives in the utility and finance industries specifically to address the mounting ‘energy crisis’ affecting the US economy and standard of living today. A key objective for AEHI is decreasing US dependence on foreign sources of power, which are progressively proving less reliable and more political in their influence. Another goal is to reduce energy costs to consumers by supplying low cost electricity; provide technology to construct buildings and homes without energy bills; improve grid reliability with large base load plants; and create much-needed jobs.

AEHI’s primary initiative is construction of a proposed nuclear power plant in Payette County, Idaho. AEHI will be at the forefront of this opportunity as the first publicly traded independent nuclear generating company in the U.S. and will easily outperform large nuclear and fossil type utilities with their inherent bureaucracy.

AEHI additionally seeks small green energy companies for acquisition and the creation of new ones. By providing superior management and networking skills to expand their markets, AEHI assists acquisitions with growth and development. The company will continue to look for opportunities for expansion through the purchase of additional sources of eco-efficient power. Through the ownership of existing power generation sources, AEHI will assist in expediting the regulatory approval for its construction of new energy sources, including joint ventures to produce reactors and nuclear components as well as other energy sources.

Don Gillispie, President, CEO and Chairman of Alternate Energy Holdings, Inc.
Mr. Gillispie has over 45 years experience in construction, operations and maintenance of nuclear power plants. He is widely considered one of the more experienced senior executives still working full time to help the United States reemerge as the world’s leader in nuclear power.

Gillispie received his undergraduate degree in electrical engineering at Clemson University, where he graduated cum laude. He later completed the senior executive program at the MIT Sloan School of business.

His real interest in nuclear power began in the military. He completed the Navy Nuclear Power School, became a nuclear operator, and served aboard the SSBN, Francis Scott Key.

Since that time, Gillispie has served in a number of positions in the nuclear industry. He worked on the startup of Beaver Valley Unit 1 in Shippingport, Pennsylvania. He worked on the construction and startup of Duke Energy’s first three nuclear units at Oconee Nuclear Station in South Carolina. While working for Tennessee Valley Authority, Gillispie was involved in the construction, startup and operations of three nuclear facilities. And while working with the Institute of Nuclear Power Operations he was a manager of engineering and director of restart respectfully for the turnaround of the Rancho Seco and Pilgrim nuclear power plants.

Gillispie helped found a cornerstone program for the Institute of Nuclear Power Operations (INPO), which is the safety watchdog to all U.S. nuclear utilities. He also helped startup the Nuclear Management Corporation (NMC), a nuclear operating company in Wisconsin, which operated up to eight nuclear power plants with 5,000 employees. Incidentally, NMC was awarded best in class by in 2001. And as owner of Grace Glens, a private nuclear-technical management consulting company, Gillispie consulted with some of the largest nuclear utilities in the United States, advising senior executives on commercial nuclear power operations.

As part of a three-man executive team, Gillispie assisted in overseeing the 2007 reopening of Browns Ferry Nuclear Plant unit three in Alabama before moving to Idaho to be near AEHI's first nuclear project. Its reopening was attended by President George W. Bush.

Clean Energy

Alternate Energy Holdings, Inc.
911 West Winding Creek Drive, Suite 150
Eagle, ID 83616
Phone: 208-939-9311


Interview conducted by: Bud Wayne, Editorial Executive,, Published – December 3, 2010

Mr. Gillispie, would you give us a little history of Alternate Energy Holdings and tell us your vision?
Mr. Gillispie: I had retired as an energy executive a number of years ago and I had worked mostly in the nuclear energy area. I was a little frustrated that the country had not relaunched nuclear power plants in the United States. I went to a conference that I use to go to when I worked more actively; it was a CEO conference for the nuclear utilities CEOs and it is held annually in Atlanta, Georgia. In late 2004, I attended that and I saw some old friends, which was part of the reason that I went, but I wanted to ask a silly question of these CEOs and Chief Nuclear Officers. I wanted to know when we were going to build a new nuclear plant, because we hadn’t built one since before Three Mile Island. I felt that we should be back doing it again because it was a good technology, it would help with global warming, it was low cost energy and it was reliable. Well the consistent answer among the utilities, which tend to be somewhat conservative in their thinking, is that thy though that it is a good idea, but they didn’t want to be first. They wanted someone else to take the flack.

Then after the first of the year in 2005, I started thinking, why couldn’t I form a company and see if I can’t help get the nuclear renaissance started. So I got hold of some like minded colleagues, the past head of the Nuclear Regulatory Commission, past CEOs and presidents of utilities and institutions in the nuclear industry. The agreed with me and said that they would join with me and do this. So we formed a company that was private in 2005, but we realized that it was difficult to raise much money as a private company. So we took it public as a reverse merger in September 2006 and started on our march. Initially, we were interested in buying some existing power plants, so we would already have some generating revenue and build a new unit on that site. However, at that time utilities weren’t selling nuclear power plants, so we couldn’t get anyone to sell us one. So we just announced that we wanted to find a new site, a green field site as we call it, for our nuclear power plant. We thought the west would be a good area because of 104 nuclear power plants in the United States; there are only 5 in the west. The other 99 are in the east and there is a big power challenge out here as we have seen in California in 1999 and 2000.

We announced that we wanted to look for a western site and we were contacted by a group of farmers in Idaho who were trying to form an electricity co-op to get cheaper energy. They are called ‘high lift’ farmers; high lift means that they have to pump the water from the river up much higher to a plateau to where they can to irrigate. Everything here is somewhat arid and without irrigation nothing grows, because there is not enough rainfall. We told them that this wouldn’t be over night, and they said that they understood that it might take ten years, but it is clean energy and if they couldn’t benefit from it, maybe their kids would. So we went out and looked at the property and what we initially saw really wasn’t suitable, but then we found another piece not to far away that was. And that was when we started our treck to get it approved. We looked at several sites that year and selected the best one. We are in a county called Payette County, sort of northwest of Boise, Idaho, which is the capital. Next week we are starting the last phase of hearings and we have already gone through the first phase. We hope that within two or three months we will have the final and last approval from the country and from the state of Idaho, to proceed and build this plant.

CEOCFO: So this will be your first plant.
Mr. Gillispie: Yes, this will be our first plant. Not the first one of my career, but the first one for Alternate Energy Holdings. This would be two units in this part of Idaho, with the idea of selling some power locally into the state, although Idaho is not a large state, with only 1.5 million people. So the rest would be exported into states such as California, Oregon, and Nevada. It is a merchant plant and so our prices are not regulated like most nuclear power plants, which are run by utilities, so our return on profits is not limited by the capital investment. We are very excited about that and we figure that in the next quarter of next year we will be into the Federal regulatory process, which is the final phase where we get the operating construction license, which takes about three years. So we are pretty excited as this thing gets close to launching.

CEOCFO: Have you been spending the time building the relationships power companies necessary to make money on this plant?
Mr. Gillispie: First you have to spend the political capital because you have to get the leaders of the state to be behind it. You work with the US congressmen, senators, state legislators, the governor’s office, and the Department of Commerce. You get all of these top level guys in support, then you move into the counties and get local approval in the county that seems the best suited for the plant. It is a long process, but it will be the first green field site since 1977, so it is kind of a big deal in that regard. It will be the first new site since then, if we are successful, and we fully well expect that we will be. With regard to the utilities, we have talked with more than one utility. I can’t mention their names, but at least one of them orally, was interested in buying up to 90% of this project. It was a large utility that saw the benefit and saw that they could use the power. We had another large utility that was also interested in a pretty good stake in it. So we know that we have plenty of people that want in on this, because there is really no new sources in the western United States coming online to compete with the costs. Solar and wind, when you take out the subsidies, these are 20 percent efficient power sources, so they are not really attractive to the grid utilities. They put them on because the states require them, but they want baseload and something the keeps the grid up. So there are no more hydros (dams) being built and coal is not very popular as people have actually shut some down to get rid of the emissions. Therefore, nuclear is really the growing baseload source choice. A recent pole among public utilities and public service commissioners nationwide indicated that their choice for a new power source two to one was nuclear and gas being next. It is wanted by the public utilities commissions, it is wanted by the public utilities who understand the reliability and low cost and we are the only guys in town doing it. We know that the demand is very high; we just have to get to the finish line and recognize the benefits.

CEOCFO: Can you walk us through what it take to get a plant nuclear plant built, going after the suppliers, getting it constructed and overcoming the fears of the community about having a nuclear plant in their back yard?
Mr. Gillispie: The community fears we have overcome. We have about an 80 to 90 percent approval rating in the area that we are building it. A local business paper did a pole and also found numbers close to that. They have had experience with INL (Idaho National Laboratory) in the eastern part of the state, so they have 50 years or more experience with nuclear power, at least with small reactors. Therefore, it is not foreign to them here, but they have never had a commercial reactor, so from the standpoint of local approval, we are probably in as good a shape as you can imagine. We have selected a site that is kind of out of sight, out of mind, so it is away from the NIMBYs (not in my back yard). People who are going to be close to it are going to be opposed to it. However, we don’t really have much of that issue at all. With regard to the suppliers, the fuel manufactures are the ones who solicit the uranium and we just buy from the fuel manufacturer and there are about ten fuel manufacturers around the world, so fuel supply is really not an issue. We are looking at a pressurized water reactor that is based on US technology; there are three that we are looking at and these are all Westinghouse regional designs that were exported to other parts of the world. They have been involved in those parts of the world over the last thirty years and that would be marked back to the United States, because the US no longer sells a reactor. Even the Westinghouse reactor, which was originally made in the US, now has its reactors made in Japan. We will actually be doing what we call a Westinghouse evolved reactor in this country, so it has a good heritage, it is good, safe and reliable and right not we are negotiating on the cost, which is a big issue. If you are a merchant plant you have got to get a good deal. Right now, we are just bouncing several against each other, trying to get the best deal that we can. However, we are very comfortable that we have the suppliers available and we have the contractors available to build these plants. The part that people are most interested in is if we can finance this thing. And the answer to that is yes. We have the first phase financing to get it up through the NRC (Nuclear Regulatory Commission) approval already and now we are looking at the larger financing for construction. There is a lot of money available that is being held out of the investment areas, because people really don’t know were to put their money. There is literally billions and trillions of dollars available to be invested, but a lot of it is in Asia, and they understand the technology. We have been approached by several people who can lend us money, but we have not tried to sign them up, because we want to get through the local approval and get into the NRC process before we negotiate a large loan. So that is not really a worry of mine; it is just a matter of making your financial case and this plant will be extremely profitable. Between our calculations, the price we want to get it at, and we believe that we can, we are looking at $3 to $4 billion a year in profits per site. So we are pretty comfortable and feel that we are attractive to the people who want to lend money as well as large investors.

CEOCFO: So the plan is that you would have to raise capital for each site?
Mr. Gillispie: That is correct and these are kind of stand alone projects that we set up as corporations underneath the holding company, Alternate Energy Holdings, Inc. (OTCQB:AEHI).

CEOCFO: What is the time table?
Mr. Gillispie: We expect 1st Quarter approval from the state of Idaho, then we will start to collect environmental data for our NRC application, which we will file near the end of 2011 after collecting that data. Then we will wait for the NRC, which is a three to three and a half year process right now. If you call and ask them they well say 44 months, which is their stock answer. However, these plants have been approved in this country before, so we don’t see it taking that long and the site that we selected we don’t have any issues related to geography. When you select a site, usually you have something that is not quite what you want it to be, and you have to someway address that, but this site really has no weaknesses, so we think that its approval will go pretty quickly. Therefore, we expect to start construction in the late 2014 timeframe and then bring it online in 2018.

CEOCFO: Would you tell us about your subsidiaries and other projects that seem to be more near term revenue generators?
Mr. Gillispie: We have one called Green World Water™, which is a joint venture with us and China National Nuclear Corporation, where they make reactors and desalinization units combined for us. We are the first ones to offer that commercially and we are trying to sell these to developing countries. Essentially, people don’t realize that nuclear plants can make electricity and water simultaneously, which unlike conventional desalinization that can only make one or the other, by your choice because it is a large thermal heat source. We have already contacted about thirty countries that are interested in these units. We are heading to Africa to speak with the head of one of those African nations. So we are excited about selling a commercial desalinization unit that has never been sold in the world. They have been made, but never marketed. So we think that is going to be a good business for us and create our first profits probably sometime next year. Then we have Energy Neutral™, where we are selling our first house and we are building five more. In these homes, we take renewables, primarily solar, but also wind and geothermal if appropriate and put them on homes and buildings and essentially eliminates their energy bill. You stay connected to the grid, but the home will be energy neutral and doesn’t take power from the grid. So it is pretty much self sustaining. We built one in March and we have operated it pretty much with everything turned on for the last four or five months just to demonstrate that it is indeed energy neutral. And now we have contracted the seller. Therefore, we should have some revenue in December. We have two people that we are going to sell franchises to; one in Texas and one in Arizona. So we are going to start marketing franchises. In fact, we will probably market two here before the end of the year that we have some interest in. So the idea to grow this business is to market the franchises and get volume by supplying the equipment to the franchisees. That is a demand side business in electricity that keeps the demand down and uses renewables in a more responsible way that makes more sense.

CEOCFO: How did you come about your subsidiaries; was it through your own development, partnerships or acquisitions?
Mr. Gillispie: Energy Neutral we created ourselves. I got some builders, we worked together and designed the concept and built the first home. So it is pretty much grass roots. The commercial nuclear desalinization business was my idea, but I needed to find a supplier, someone who could build and combine these two proven technologies together; nuclear energy and desalinization. However, no one had ever done that commercially before, so I started talking to some reactor builders to see if there was some interest and the most interest created was by the Chinese. They are using Westinghouse technology that was evolved in the United States, but sold to China. So we are using proven technology that we are familiar with as a reactor source and desalinization has been around for fifty years or more; it is not a new technology. We essentially created the idea and talked somebody into making it for us, but we are primarily marketing it.

CEOCFO: In closing, would you address potential investors and tell us why they should consider Alternate Energy Holdings?
Mr. Gillispie: The company has no debt, we have enough cash to operate several years, and we have an equity line now to finance the first phase of our US nuclear power plant here in Idaho. In addition, we have revenue streams just getting ready to start with Energy Neutral and we will also have revenue streams, probably in the middle of next year from the Green World Water commercial desalinization/reactor sales. Therefore, we are soon to make money. Green World Water here in the US will be very profitable. One of the things that I tell people is that you want to think about profitability; if I build six units in Idaho and are able to build them at the cost that I think I can and sell at current market prices on the west coast, then I can rival Exxon Mobil in profitability. When I say that, I am not exaggerating and that is the kind of money that these things can make. So if investors get in at the current stock price, which is about 60 cents and they are comfortable waiting awhile, the returns could be pretty phenomenal.


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The company has no debt, we have enough cash to operate several years, and we have an equity line now to finance the first phase of our US nuclear power plant here in Idaho. In addition, we have revenue streams just getting ready to start with Energy Neutral and we will also have revenue streams, probably in the middle of next year from the Green World Water commercial desalinization/reactor sales. Therefore, we are soon to make money. Green World Water here in the US will be very profitable. One of the things that I tell people is that you want to think about profitability; if I build six units in Idaho and are able to build them at the cost that I think I can and sell at current market prices on the west coast, then I can rival Exxon Mobil in profitability. When I say that, I am not exaggerating and that is the kind of money that these things can make. So if investors get in at the current stock price, which is about 60 cents and they are comfortable waiting awhile, the returns could be pretty phenomenal. - Donald L. Gillispie does not purchase or make
recommendation on stocks based on the interviews published.