WSSC Solar PV PPA Phase 2 Rob Taylor Energy Manager May18, 2016

Advantages of PPA vs. Own/Build Own/BuildPPA  No Tax Benefits  Federal/MD Tax Benefits  Longer Lead Time  Shorter Lead Time  Higher Capital Cost  Lower Capital Cost  Major Capital Required  No Up- Front Capital  SRECs sold by Owner  SRECs sold by PPA  Owner Responsible for Operation/Maint./Repairs  PPA handles all Operation/Maint./Repairs  More Risk  Less Risk

Background on Solar PV PPA-Phase 1 Completed in October MW at Seneca (21% of total kWh/yr.) 2 MW at Western Branch (12% of total kWh/yr.) 8,500 solar modules at each site; all power used internally at each plant. WGES/Standard Solar constructed both plants, operates, maintains, and repairs for up to 20 years. WSSC buys electricity at fixed cost (+ escalator). Estimated savings (over 20 years) = $3.5 million 3

Seneca WWTP - Germantown

Solar Modules at Seneca

Solar Array - Seneca WWTP (2 MW)

Western Branch WWTP – Upper Marlboro N

Solar Modules at Western Branch

Solar Array – Western Branch WWTP (2 MW) Solar Energy at Western Branch and Seneca provides 3% of WSSC’s total annual electricity consumption

Proposed Solar PV PPA-Phase 2 Contract Proposals received on 9/11/15; recommendation for award approved on 12/23/15. 2 MW at Seneca (exported- aggregate net metering) 4 MW split at two off-site locations in Prince George’s County (exported- aggregated net metering) Standard Solar will construct systems at all sites; operate, maintain, and repair for up to 20 years. WSSC will buy electricity at fixed cost (+ escalator). MBE participation: 26% Estimated savings (over 20 years): $12.1 million. 10

Aggregated Net Metering (ANEM) ANEM- the export of power generated from a renewable energy source (such as solar) located on a customer’s site and credited towards the customer’s electricity usage on another customer site in the same utility territory (i.e., BGE, Pepco, etc.). WSSC was approved to use Aggregated Net Metering by the Maryland Public Service Commission on 3/2/16. 11

SB921/HB1106: Renewable Energy Portfolio Standards (RPS) Revision The Solar Renewable Energy Credit (SREC) market has decreased from $130 to $70 in the last 3 months. The lower SREC price has raised the proposed kWh price (BAFO) submitted by Standard Solar in December The bill will increase the RPS to 25% by 2020 (up from 20%). This will boost the in-state clean energy industry, raising the current price of SRECs. Its is expected that the SREC price will rebound to the price assumed by Standard Solar in December 2015, thus allowing them to maintain their original kWh bid price (BAFO). 12

Questions? 13