CommunityChoiceEnergyInCalifornia

May24andJune9,2016

WhatisCommunityChoiceEnergy?CCEenableslocalgovernmentstoprocureand/ordeveloppoweronbehalfoftheirpublicfacili<es,residentsandbusinesses.Ithasproventoincreaserenewableenergyandlowergreenhousegaseswhileofferingcompe<<veelectricityrates.

CCEAroundtheCountry

CCEs in 7 States •  California •  Illinois •  Massachusetts •  New Jersey •  Ohio •  Rhode Island •  New York Under Consideration: Utah, Delaware, Minnesota

AuthorizedbyCAAssemblyBill117in2002

CCEisontheRiseinCalifornia

WhyareCommuni<essoInterested?

•  CCEisresponsivetolocalenvironmentalandeconomicgoals•  Offersconsumersachoicewherenonecurrentlyexists•  Revenuesupported,nottaxpayersubsidized•  Stable,oLencheaper,electricityrates•  AllowsforrapidswitchtocleanerpowersupplyandsignificantGHG

reduc<ons;achievementoflocalClimateAc<onPlangoals•  Providesalocalfundingsourceforenergyefficiencyandother

energyprogramslikeenergystorageandelectricvehiclechargingsta<ons

ASnapshotofOpera<onalCCEs

LaunchYear/#ofCustomers

2015Avg.CustomerRateSavings

PowerOpMons(current)

2010

~175,000accts.

2-5%belowPG&E 56%Renewable

100%Renewable

100%LocalSolar

2014

~200,000accts.

6-14%belowPG&E

36%Renewable

100%Renewable

2015

~55,000accts.

3-4%belowSCE

35%Renewable

100%Renewable

BasicProgramMechanics

1. UnderStatelaw,CCEisan“optout”program;MPCPwouldbecomethedefaultelectricserviceproviderinpartnershipwithPG&E

2. U<lity(PG&E)con<nuestoprovideconsolidatedbilling,customerservice,andpowerlinemaintenance.

3. CCEelectricgenera<oncharges(includingPCIA/exitfee)appearasnewlineitemsonthecustomerbill;allotherchargesremainthesame.

4. PG&Eprogramsforlowincome/CAREcustomersremainthesame5. CPUCcer<fiesCCEPlan;overseesu<lity

serviceagreementandotherrequirements6. MostCCEsarerunthroughaJPA:Localgovernments

par<cipatebypassingaCCEordinanceandenteringintoaJPAAgreement.

SampleEnergyBill–MCE

8

CCE&LocalClimateAc<onPlansExcerptfromCityofSanMateoClimateAc5onPlan

TonsofCO2reducedthrough2020

NotethatCCEprogramsdonotimposeaddi2onalcoststopropertyowners/developers

CCEasaCleanTechInnovator

•  MCEandSCPhavecollec<velyputover300MWsofnewrenewablepoweronthegrid;ofthat,nearly100MWislocal

•  LocalFeed-in-Tariff,NetEnergyMeteringprogramsincen<vizelocalsolardevelopment

•  Public/PrivatePartnerships:Communitysolar,commercialandresiden<albajerystorage,homeareanetworks/demandreduc<on,EVchargingsta<ons

•  Energyefficiencyfundingisavailablefromu<lityandstate

•  On-billrepaymentop<onandgreenbusinessloans

•  Localjobtrainingprogramsthatfocusonunderservedpopula<ons

RisksandMi<ga<ons

RateCompeMMon/MarketFluctuaMon:Rateswillvarywithmarketcondi<ons.Powermarketexper<seandwellcraLedpowerRFPsareessen<al;Diversifiedsupplypornoliowithsomeownedassetswillmi<gatemarketriskCustomerOpt-Outs:Compe<<veratesareamust;Ar<culateaddi<onalconsumerandcommunitybenefitstoaddtothevalueproposi<onAvailabilityofcarbon-freepowersupply:AsthedemandforGHGfreepowergoesup,compe<<onforrenewablesandlargehydroresourceswillincrease;nuclearresourcesaretappedbyIOUs;nowisagood<metobeenteringthemarketRegulatory/LegislaMve:PublicU<lityCommissiondecisionsmayadverselyaffectCCE;par<cipa<oninStateregulatoryproceedingsandstatewidelegisla<veini<a<vesisessen<al

SCP:ProgramEconomicsAreStrong

•  Allstartupdebtpaidoff(~$2.5M)

•  Aheadofscheduleinbuildingreserves(goalof$50Mwithin5years)

•  $3.5millioninvestedforefficiencyprogramsfor2016-2017

•  Acrosstheboardreduc<onsincustomerelectricalrates

Asof3/31/16

BuildingLocalValueThroughLocalPartnerships

Inves2nglocallyiskeyforSonomaCleanPower

•  NetGreen–Netenergymeteringhelpscustomerskeep

theirdollarsathome

•  FlotoVoltaics–Anewapproachtowastewaterponds;

solarpartnershipwithSonomaCountyWaterAgency

•  EVtechnologyforthenextgenera<on

•  Workingwithlocalpartnerstoaddressclimatechallenges

MakingTheSwitchToRenewables

Aninvestmentinourfuture

•  ProFit–Supportslocalsmall-scalerenewablegenera<on

•  MustangProject–70MWofcleanCAsolarfor20years

•  Geysers-LocalgeothermalthatsmoothsSCP’spower

loadandsourcesthe100%Evergreenproduct

ThankYou!

ForfurtherinformaMon,pleasecontact:LEANEnergyUSwww.LEANenergyus.orgShawnMarshallShawnMarshall@leanenergyus.orgMarkLandmanMlandman@sonic.net