A Focus on the Southeast: Solar Power Programs Utility Perspectives World Energy Engineering Congress (WEEC)

Nelson Hawk Chairman EnerVision, Inc. November 1, 2012

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Overview Management, engineering and technical consulting firm Since 1998, an independent employee-owned company Primarily serving electric utilities in more than 30 states Primary Services Alternative Energy Technical Advisor Renewable Energy (RE) Energy Efficiency (EE) Demand Side Management (DSM) Demand Response (DR) Power Supply T & D Technology Services Compliance Services Wholesale & Retail Rates Management Consulting Services
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Who is EnerVision?

Todays Agenda
1. Current Renewable Energy Drivers

2. Georgia Utility Efforts

3. TVA Utility Initiatives

4. Florida Utility Activities

5. Key Utility Issues

1. Current Renewable Energy Drivers

Electric Utility Basic Mission:

Provide safe, reliable, affordable electric services to meet customers needs and community requirements

1. Current Renewable Energy Drivers

Rising Energy Prices/Future Construction Costs Environmental Drivers Energy Security/Independence Technology Advancements Government Emphasis Commercial Customers / Community Focus Economic Development

1. Current Renewable Energy Drivers

Government Emphasis

Federal/state tax incentives Renewable production tax credit (PTC) status Feed-in tariff options Government programs/plans Clean Energy Standard 80% by 2035 Larger R&D funding State energy strategies Government facility programs/mandates Renewable Portfolio Standards (RPS) Property Assessed Clean Energy (PACE)
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1. Current Renewable Energy Drivers

Government Emphasis

1. Current Renewable Energy Drivers Government Emphasis

1. Current Renewable Energy Drivers

Commercial Customer/Community Focus

Major green business initiatives Wal-Mart Kohls Home Depot Google Lowes General Electric Johnson & Johnson Others

Cities/communities adopting climate change initiatives Coordinated university/college networks

1. Current Renewable Energy Drivers

Economic Development Governments focusing on creation/ addition of alternative energy jobs Consideration of carbon reduction strategies with industry recruitment More environmental considerations Focus on clean/green businesses
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2. Georgia Utility Efforts

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2. Overall Georgia State Efforts

Current Alternative Energy Strategies

Implement State Energy Strategy (SES) 2007 results Focus on energy efficiency (EE) Focus on biomass/biofuels Governor initiates Conserve Georgia 2008 State government emphasis economic development Expand renewable energy efforts voluntarily Focus on EE, DSM, DR, and RE No RPS
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2. Georgia Utility Co-op Efforts

Green Power EMC Update (Green-e accredited) Since 2001 Operating renewable resources almost 30 MWs Roberts Road Landfill 1 MW Taylor County Landfill 4 MWs Tallassee Shoals LIHI Hydro 2.3 MWs Rabun Gap Wood Waste 16 MWs First Century Solar 115 kW Taylor County Landfill Expansion 3 MWs Wolf Creek Landfill 3 MWs Second First Century Solar Project 150 kW Other initiatives Sun Power for Schools 33 Solar Projects in operation Wind Power for Schools 2 Wind Projects - in operation
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2. Georgia Utility - Georgia Power Company (GPC)

Efforts
Current Solar Initiatives:

Green Energy Program- Since 2003 Current Solar Resources

Solar Power (SP) Tariff / Green RFP 5.4 MWs Qualifying Facilities (QFs) Avoided Costs 6.2 MWs Large Scaled Solar (LSS) 49.9 MWs

Total Procured / Under Development

61.5 MWs

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2. Georgia - Utility Georgia Power Company (GPC)

Efforts

Georgia Power Advanced Solar Initiative (GPASI)

Filed 9/26/2012 with GPSC Overall 70 MWs Solar For 3 Years (210 MWs Total) Part 1: Utility Scale Projects (1 20 MWs)
60 MWs Per year: 180 MWs Total RFP Process To Be Used Independent Monitoring 20 Year PPAs Approximately: 12 cents per kWh On-Line: 2015-2017

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2. Georgia Utility - Georgia Power Company (GPC)

Efforts

GPASI- Continued Part 2: Small Scale Projects (Less Than 1 MWs)

10 MWs Per Year: 30 MWs Total: 2012-2015 20 Year PPAs Approximately 12 Cents Per kWh

A. B.

Small- Scale (Less Than 100 kW)

2.5 MWs per year: 7.5 MWs Total

7.5 MWs Per Year: 22.5 MWs Total

Medium Scale (100 kW to 1 MW)

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Georgia Utility Other Solar Projects

Georgia Solar Utility (GaSU)

Filed 9/20/2012 with GPSC Overall- Seeking Approval For Wholesale / Retail Solar Power Utility Company
Total Potential: 2,000 MWs- Large Solar Projects Initial Project: 80 MWs Solar Project in Putnam County Provided High-Level Financial/Business Model Scenarios

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2. Georgia Solar State Efforts

Recent Solar/Wind State Incentives

2011 Georgia Clean Energy Tax Incentive Law (Senate Bill 346 passed)

Effective July 1, 2011 Total Tax Incentive Cap: $5 Million Annually

Tax Incentive Sunset: December 31, 2014

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2. Georgia Solar State Efforts

Recent Solar/Wind State Incentives

2011 Georgia Clean Energy Tax Incentive Law (Senate Bill 346 passed)
Clean Energy Technology Solar Energy Equipment for Domestic Water Heating Solar Energy Equipment for Solar Electric (PV), Other Solar Thermal Electric Applications or Active Space Heating Wind Residential Property Credit Limit (max. 35% of cost) $2,500 per Dwelling Unit Commercial Property Credit Limit (max. 35% of cost) $100,000 per Installation

$10,500 per Installation

$500,000 per Installation

$10,500 per Installation

$500,000 per Installation

Administered by GEFA, Georgia Department of Revenue and Georgia Forestry Commission

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Senate Bill- SB 401- Introduced/Did Not Pass

Would Allow Third-Party Power Purchase Agreements (PPAs) Assigned to Senate Natural Resources and Environmental Committee

2. Georgia Solar State Efforts 2012 Georgia Solar Legislative Activities

House Bill- HB 520 Introduced/Did Not Pass

Would Modify Provision of Existing 2001 Cogeneration and Distributed Generation Act Would Change Utility Cap from 0.2% to 2.5% of Utilitys Prior Years Peak Demand In Committee Reviews

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3. TVA Utility Initiatives

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3. TVA Utility Initiatives

New Integrated Strategic Resource Plan 2011

Internal Clean Energy Goal 50% by 2020 (includes hydro, nuclear, renewables, and energy efficiency) Nuclear emphasis Watts Bar and Bellefonte units Retiring older coal units Own/operate generation resources within + or 5% of peak load Renewable energy wind / solar expansion Expanding energy efficiency / DSM focus 6,000 MWs by 2020 Electric vehicle testing ground

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3. TVA Utility Initiatives

Current Alternative Energy Strategies

Major commitment reduce system peak demand 1400 MWs by 2012 - $1 billion five-year budget Focus on energy efficiency (EE), demand side management (DSM), and demand response (DR) New wholesale / retail pricing strategies underway Exploring DR technology options smart grid Develop, implement and measure effective programs

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3. TVA Utility Initiatives

Current Alternative Energy Strategies

Continue large scale renewable energy (RE) efforts
Evaluating / implementing potential 1300 MWs of wind / solar / biomass resources

Improve customer renewable programs

Green Power Switch Program Generation Partners/ Green Power Providers Program- Less Than 50 kW Solar Solutions Initiative- 50 kW to 1 MW Renewable Standard Offer Program- Up To 20 MWs

No RPS desired by TVA

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3. TVA Utility Initiatives

Summary of New New Green Power Providers Program

Maximum Project Size- Now 50 kW Eligible Resources- Solar, Wind, Biomass and Hydro Initial $1,000 Incentive Paid Contract Terms- Moved from 10 to 20 Years For First 10 Years, Retail Rate Plus Premium

Old Generation Partners Program Status

722 Projects Existing with 33 MWs in Operation 472 Projects Approved with Potential 78 MWs of Generation

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4. Florida Utility Activities

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4. Florida Utility Activities

Florida Overall Strategy Nuclear initiatives FPL / Progress Energy Strong natural gas fleet of units Revised / expanded DSM goals / programs New stronger solar emphasis water heating and PV installations

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4. Florida Utility Activities

Current Alternative Energy Strategies HB 7135 passed/signed June 2008

Authorized FPL to build 110 MWs of utility solar projects
Martin Solar Energy Center 2010 CSP 75 MWs Desoto Solar Energy Center 2009 PV 25 MWs Space Coast Solar Energy Center 2010 PV 10 MWs

FPSC approves new interconnection/net metering standards for IOUs 2008 Focus on EE, DSM, DR and RE Overall goal attempt to impact climate change results

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4. Florida Utility Activities

New Energy Efficiency Goals 2009 (FEECA)

No specific technology identified Utilities, IOU, Co-ops all > 2,000 GWh sales 2010-2019 FPSC Reduction Goals Overall 1,937 MW winter peak demand 3,024 MW summer peak demand 7,842 GWh annual sales

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4. Florida Utility Activities

New Energy Efficiency Goals 2009 (FEECA) (Contd) Affects TECO / Gulf Power / FPL / PEF / FPU / JEA / OUC All but FPL / PEF now implementing new EE/DSM programs FPL example October 2012 $9 million of Solar rebates subscribed within hours of of announcement

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4. Florida Utility Activities

Interconnection Standards

Solar, landfill gas, wind, biomass, hydro, geothermal, cogen, hydrogen, anaerobic digestion, small hydro, ocean / tidal / wave IOUs only

2 MW capacity limit (3 tiers: 10kW, 100kW, 2MW)

Co-ops and munis must file report with PSC

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4. Florida Utility Activities

Solar, landfill gas, wind, biomass, hydro, geothermal, cogen, hydrogen, anaerobic digestion, small hydro, ocean/tidal/wave All utilities (including coops) 2 MW capacity limit Net excess generation carried forward for up to 12 months. After 12 months, any remaining paid at avoided cost. RECs owned by customer

Net Metering

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4. Florida Utility Activities

Gainesville Regional Utilities (GRU) Feed-in Tariff (FIT) GRU wants more solar diversity 32/kWh for 20 years customer solar PV 4 MW/year cap Grid connected requirement Now installed more than 5MWs 3 year waiting list backlog Less than $1/month average customer impact

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5. Key Utility Issues

Electric Utility Basic Mission: Provide safe, reliable, affordable electric services to meet customers needs and community requirements

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5. Key Utility Issues

Utility level renewable resources co-ops / munis G&T / power supply providers options Own and operate Power purchase options Other joint projects, etc. Local co-op utility efforts Implement renewable resources locally Perform demonstrations Support members

Note: Co-ops / munis do not qualify for most tax incentives.

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5. Key Utility Issues

Member / Customer Level Options Utility Programs Own / install / maintain Rebates / incentives Approved contractors Testing services

Demonstrations
Others

M&V

Key Customer Criteria Pricing / incentives Convenience Comparison to other options

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5. Key Utility Issues Government Policies

How does your state / local community address renewable resources? Mandates Probable / potential mandates Voluntary options Little or no interest Potential Promotional Alternatives Tax credits / incentives RPS / Feed-In Tariffs (FIT) / Others Net metering Interconnection standards / practices Property Assessed Clean Energy (PACE) Third-party PPAs
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5. Key Utility Issues

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Costs

5. Key Utility Issues Solar Industry

Technology / markets driving lower prices Subsidies / incentives Potential cut backs

Technology Improvements Business Models Changing / Applications Expanding

Utility programs Non-utility activities

Utility Operations

Grid Connections / Smart Grid Intermittency solar / wind

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