1. SMUD Sustainable Energy Supply Progress in Carbon Reduction POU 101: CMUA Briefing of Legislative Staff February 26 th, 2015 Obadiah Bartholomy Powering forward. Together.

2. SMUD Overview Publicly owned utility formed in 1946 Governed by independent locally elected governing Board of 7 members Serves electricity to 1.3 million people in Sacramento region 2,100 Employees Peak Demand of 3,300 MW Annual Sales ~11,000,000 MWh 2

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5. 33% RPS in 2020 IRP Time HorizonIRP Time Horizon 5

6. Energy Efficiency Investments Board target of 1.5% per year of retail sales Spend up to 1% of revenue per year on programs and efforts that may not yet be cost-effective, in support of Board goal Increasingly shifting approach toward Integrated Demand Side Management –Coupling EE with DR, PV, EV 6

7. Investments in the Community AB 32 Cap and Trade Investments –Partnering with community organizations and customers to deliver new approaches for low income energy efficiency, EV charging, innovative biomass digestion and gasification, etc. Convening regional agency planning staff to coordinate carbon reduction activities Supporting SB 375, PACE, CEQA, and prop- 39 initiatives around carbon reductions 7

8. Potential Key Investments for Future for SMUD Iowa Hill Pumped Storage –400 MW Pumped Storage Reciprocating Engines for Fast Ramping –Potentially 150 – 200 MW depending on need Other Energy Storage –Compressed Air Energy Storage –Molten Salt Storage (Solar Thermal) –Distributed battery storage –Dispatchable Customer Loads (EV’s) Solar PV Deployment –700 MW economic potential for rooftops in Sacramento in next 20 years Expanded Energy Efficiency and DR programs –Target of 275 MW DR by 2021 –Currently evaluating Governor’s aggressive EE targets vs. policy constrained program influence 8

9. Key Challenges Optimizing investments across carbon reducing activities to minimize cost, maintain reliability Getting appropriate credit or incentive for role in decarbonizing other sectors Integrating increasing amounts of intermittent renewables –Substantial technological and market uncertainty hampering investment decisions 9

10. 10 Thank You! Obadiah Bartholomy Obadiah.Bartholomy@smud.org