RiversidePublicUtilities.com Arts & Innovation RiversidePublicUtilities.com Overview of RPU 2014 Power Supply Integrated Resource Plan RPU Power Resources Division April 18, 2016 CEC IRP Workshop (Docket #16-OIR-01) Summary overview of the 2014 RPU Power Supply IRP

RiversidePublicUtilities.com RPU’s most recent IRP was produced in It is a comprehensive IRP that was designed to meet the following five objectives: 1. Provide an overview (background material) of our – 20-year forward energy & peak demand forecasts – Current generation and transmission resources – Existing electric system 2. Review & assess critical legislative/regulatory mandates & CAISO stakeholder initiatives – CEC, CARB, EPA, SCAQMD (RPS, GHG, EE and Air Quality) – Various CAISO initiatives (FRAC/MOO, EIM, ISO/CPUC JRF, FERC Order 764, etc.) 3. Summarize and assess effectiveness of our current EE/DSM programs 4. Quantify and discuss intermediate-term (5-year forward) power resource forecasts – Projected capacity and RA needs – Renewable energy and RPS mandates – GHG goals and mandates – Cash-flow risk metrics (hedging assessment) – Power resource budget forecasts 2

RiversidePublicUtilities.com 2014 IRP objectives: continued 5. Examine and analyze long-term (20-year forward) issues & decisions, and quantify preliminary, load-normalized Cost-of-Service (COS LN ) impacts for various future scenarios – Projected load growth impacts (including EE impacts on load growth) – Critical intermediate- and long-term budgetary issues – Market price shock impacts (sensitivity analyses) – Uncertain IPP coal contract termination date: timing impacts – Potential IPP coal replacement options (both natural gas and renewable options) – Impacts for changes in RPS mandates (including 40% and 50% 2030 mandates) – Trends in (and impacts from) increasing customer solar PV installations – Preliminary assessment of key future market paradigms; such as Energy Storage, new DSM options, Electric Vehicles, etc. 3

RiversidePublicUtilities.com IRP Process: Background Information 4 Process / ActivityTime Period IRP Pre-planning activities w/internal & external stakeholdersAug-Sept 2013 Initial IRP studies / simulations & drafting of initial documentOct-2013 to May 2014 External review of initial draft IRP (outside independent consultant)Jun-Jul 2014 Revised IRP studies / additional analysesAug-Oct 2014 Document revisions, additions & updatesSep-Dec 2014 Presentation to Public Utilities BoardFeb 2015 Public 60 day review processMar-Apr 2015 Official adoption of 2014 IRP (Public Utilities Board)June 4, 2015 Official adoption of 2014 IRP (City Council)July 28, 2015

RiversidePublicUtilities.com IRP: Document Overview & Organization 14 Chapters, 6 Appendices, ~ 300 pages All analyses were produced internally (Power Resources Division - Planning & Analytics Unit). All written material produced internally, except for Appendix A (PCM software documentation) IRP Document is publically available on the RPU Website. Document Organization: – ES & Ch.14 present high-level & detailed summaries, respectively – Background material: Ch.2 (Load Forecasting), Ch.3 (Portfolio Resources), Ch.4 (RPU Distribution System), Appendix A (Ascend Software) – Legislative & Regulatory Issues: Ch.5 – EE/DSM Programs: Ch.6 – Market Outlook: Ch.7 – 5-Year forward Forecasts: Ch.8 – 20-Year forward Forecasts: Ch.9 & Ch.10 – IPP Replacement Options: Ch.11 – Higher RPS Mandates: Ch.12 – New Paradigms: Ch.13 (Energy storage, new DSM/DR programs, Customer DG-PV, and Vehicle Electrification) – Additional Technical Details: Appendices B - F 5

RiversidePublicUtilities.com RPU IRP Guiding Principles (for selecting new Generation Assets, Contracts, or Demand Side resources) Will the new generation asset, contract, or demand side resource – Help RPU ensure wholesale and/or retail price stability? – Maintain or improve technology diversification within our portfolio of resources? – Support/improve our local or system reliability needs? – Meet our cost effectiveness criteria? – Properly align with RPU’s daily and/or seasonal load serving needs? – Reduce our Carbon footprint and/or increase our renewable energy supply? – Support our commitment to environmental stewardship? 6

RiversidePublicUtilities.com RPU Progress (towards California RPS, EE, and GHG climate targets) 7 RPU has significantly increased the percentage of renewable energy assets in our resource portfolio. Over the last four years, RPU has signed Power Purchase Agreements (PPAs) for 7 new or existing renewable energy projects – projects that will deliver over 500,000 MWh annually of new renewable into our portfolio by – Projected RPS levels: 2016 [29.8%] 2018 [34.9%] 2020 [41.8%] RPU successfully met the kWh savings goal of 1% of retail sales in FY 14/15 as adopted by our Board of Public Utilities. During FY 14/15, RPU assisted its customers in saving a total of over 20,000 MWh of electricity. RPU continuously strives to reduce our carbon footprint and is actively planning for a future resource portfolio that is coal free. Our audited 2014 CO2 emissions were 865,369 tons, over 200,000 tons below our 2014 CARB allocation of 1,068,000 tons of emission credits.

RiversidePublicUtilities.com SB-350 IRP Requirements analyzed and/or addressed in RPU’s 2014 IRP SB 350 IRP RequirementRPU’s 2014 IRP Section(s) GHG Reduction1.2 / / % RPS3.4 / 8.2 / 9.2 / 10.3 / / 12 Reasonable Rates1.2 Bill Impacts1.2 / 8.5 / 8.6 / 10.6 System and Local Reliability8.1 / / 9.1 Transmission and Distribution Systems3.2 / 3.3 / 4 / 5.2 Distribution Systems & DSM13.3 Local Air Pollutants & GHG8.7 Energy Efficiency5.1.6 / 6 / 13.3 Energy Storage5.1.5 / 13.2 Transportation Electrification13.5 Diversified Resource Procurement3.1 / 3.4 / 8.3 / 9.2 / 10 / 11 / 12 / 13 Resource Adequacy8.1 / 9.1 Response to Commissioner Scott Request: RPU has not yet determined exactly how we will incorporate transportation electrification into our 2018 IRP. (Note: it definitely will be addressed.) Our 2014 IRP discusses this topic in section 13.5, primarily from a future planning perspective for potential impacts. As of Feb 2016, the RPU service area only has ~ 450 BEV & PHEV (Source: CVRP Rebate statistics).

RiversidePublicUtilities.com Summary & Q/A RPU staff already create a comprehensive IRP document that addresses (nearly) all SB-350 requirements, including all critical CA energy and environment policies. CEC guidelines should be flexible. For example, allow a POU to submit a brief “SB-350 Index report” that directs CEC staff to the specific IRP sections that already address each requirement. CEC should recognize that many mid-size POUs do not produce new or “updated” IRPs every year. Example: RPU is on a 4-year cycle; next IRP will be issued in (Many other CEC filings can be used to track progress, such as our RPS compliance reports, SB 1037 report, SB1 Solar report, IEPR-S2 filing, IEPR Form 4 report, etc.) 9