Communities Renewable Energy Study Salt Lake City – Summit County – Park City Analysis of impacts and benefits associated with transitioning to 100 percent renewable power Prepared by Energy Strategies, LLC Communities Renewable Energy Study

Communities Renewable Energy Study Introduction August 9, 2017 Communities Renewable Energy Study

Why a Renewable Energy Study? Commitment to community-wide sustainable energy and environmental practices All three Communities have greenhouse gas (GHG) goals Salt Lake City and Park City have adopted community-wide 100% renewable electricity goals Recent cost reductions in renewable energy technology have made RE generated electricity more affordable Risk and exposure to future electricity rate increases Economic and environmental co-benefits Communities Renewable Energy Study

Communities Renewable Energy Study Rocky Mountain Power Will Continue to be Dependent on Fossil-Based Electricity Source: PacifiCorp 2015 Integrated Resource Plan Volume 1, Figure 8.25, Page 193. Communities Renewable Energy Study

Community Renewable Energy RFP Solicitation 2016-014 issued May 2016 Interest in assessing impacts of supplying residents and businesses with 100% renewable electricity: Costs of developing new renewable energy generation Electricity rate impacts Criterial pollutants, GHG emissions, and water use Impacts on jobs, wages and economic output Identify regulatory and legislative pathways that enable Communities to acquire 100% renewable electricity 2032 - Salt Lake City, Park City and Summit County 2040 – Summit County Communities Renewable Energy Study

Communities Renewable Energy Study Project Team Energy Strategies, LLC Jeff Burks, Project lead Gary Mirich and Don Hendrickson - Modeling and Rate Analysis Hollie Hohlfelder, Daniel Ramirez, Gibson Peters – Co-benefits Allison Clements - CCA Legislative and Regulatory Analysis Steering Committee Lisa Yoder, Sustainability Program Manager for Summit County Tyler Poulson, Sustainability Program Manager for Salt Lake City Luke Cartin, Environmental Sustainability Manager for Park City Communities Renewable Energy Study

Communities Renewable Energy Study Study Approach Communities Renewable Energy Study

Base Case projections of electricity: Model was Developed to Forecast Future Electricity Customers, Demand, Rates, and Expenditures by Community Base Case projections of electricity: Customers Demand Expenditures Rates Estimated MWh and MW needed to achieve 100% renewable electricity supply Cost estimates and forecasts of renewable energy generation by resource and related costs Identify and evaluate renewable electricity procurement pathways and costs Calculate 100% RE electricity supply costs impacts on Base Case expenditures and rates Communities Renewable Energy Study

Communities Renewable Energy Study Base Case Assumptions 2015 “PacifiCorp Electric Operations” baseline data for customers by class, expenditures, and sales PacifiCorp 2015 IRP projections of Utah customer load growth by customer class Assumed 2.13% growth in revenue requirements and rates Revenue requirements between 2006 and 2015 rate cases actually increased at 6.6% annual rate PacifiCorp 2017 IRP Renewable energy cost data 2015 IRP projections of fuel mix of generation portfolio Communities Renewable Energy Study

Renewable Energy Costs PacifiCorp IRP Resource Costs Resource Study ID Resource Description State 2017 $/MWh (before Tax Credit) Tax Credit Solar 1 PV Poly-Si Fixed Tilt Utah 66.00 (4.23) Solar 2 PV Poly-Si Single Tracking 58.72 (3.76) Solar 3 OR 87.16 (4.60) Solar 4 80.35 (4.26) Wind 1 2.0 MW turbine ID 54.49 (18.37) Wind 2 2.0 MW turbine CF 62.27 Wind 3 WY 46.58 Geothermal Greenfield Binary Undefined 87.96 (16.33) Market Survey Resource Costs Solar 5 PV Solar Generic 37.84 Solar 6 42.43 Wind 4 Wind Generic 53.24 Wind 5 58.25 Communities Renewable Energy Study

Electricity Supply Scenarios Analyzed and Compared to the Base Case Rocky Mountain Power Business-As-Usual Target years 2032 and 2040 Community Renewable Energy Tariff (CRET) Approved Public Service Commission tariff Community Choice Aggregation (CCA) CCA legislation adopted in Utah Communities Renewable Energy Study

Communities Renewable Energy Study Procurement Pathways Evaluated to Achieve 100% Renewable Electricity Supply Front-End Loaded Acquire 100% or renewable electricity supply by the end of 2021, to take advantage of the Production Tax Credits Straight Line Incremental acquisitions in equal, annual amounts, 2019–2032 or 2019–2040 Hybrid 60-67% of renewable electricity supply acquired by the end of 2021; balance procured in equal annual amounts through 2032/2040 Communities Renewable Energy Study

Economic and Environmental Co-Benefits Economic Development Benefits Direct, indirect and induced jobs Salary and wages Economic output Avoided Air Emissions and the Value of Emissions Reductions CO2 emissions Criteria pollutants (Nitrogen oxides (NOX) and sulfur dioxide (SO2) Avoided fresh water consumption Communities Renewable Energy Study

Expenditure and Rate Impacts Community Renewable Energy Tariff Communities Renewable Energy Study

Expenditure and Rate Impacts: Communities Renewable Energy Study

Communities Renewable Energy Study Economic Co-Benefits Communities Renewable Energy Study

Economic Development Co-Benefits Salt Lake City 830 MW Park City 67 MW Summit County 87 MW Construction Operations Employment 13,628 1,100 1,429 Wage and Salary ($ millions) $746 $60 $78 Economic Output ($ millions) $1,770 $143 $186 During Operation 324 23 30 $19 $1.4 $1.8 $33 $2.3 $3.0 Includes Direct, Indirect, and Induced Effects. Construction Operations Jobs are defined as full-time equivalent for one year. Communities Renewable Energy Study

Environmental Co-Benefits Communities Renewable Energy Study

Co-Benefits: Summit County 2032 Low End Annual Tons Avoided in 2032 Cumulative Tons Avoided 2019 – 2032 High End CO2 Emissions 81,261 640,974 188,540 1,603,848 SO2 Emissions 43 346 106 1,029 NOX Emissions 68 544 161 1,528 High End Annual Gallons in 2032 Fresh Water use 69 million Communities Renewable Energy Study

Co-Benefits: Summit County 2040 Low End Annual Tons Avoided in 2040 Cumulative Tons Avoided 2019 – 2040 High End CO2 Emissions 75,656 928,614 168,522 2,179,545 SO2 Emissions 40 493 87 1,250 NOX Emissions 63 779 135 1,898 High End Annual Gallons in 2040 Fresh Water use 60 million Communities Renewable Energy Study

High End CO2 Emissions Reductions: Summit County 2032 Goal 2040 Goal Communities Renewable Energy Study

Communities Renewable Energy Study Conclusions Communities Renewable Energy Study

Communities Renewable Energy Study 2032 Base Case Rocky Mountain Power’s rates will increase Electricity supply portfolio will still be more than 70% fossil-fuel based RMP emissions of CO2 will decline as coal is replaced by natural gas Increased dependence on natural gas will subject customers to fuel price volatility Utility investments in energy efficiency resources and customer investments in distributed solar PV will reduce electricity loads Communities Renewable Energy Study

Renewable Energy Scenario Findings Electricity expenditures and rates will be modestly higher compared to Rocky Mountain Power Base Case Straight-Line, annual procurement of additional electricity supply is the lowest cost Front-End Loaded is the highest cost Enables communities to meet renewable electricity goals earlier Rate impacts (shocks) are more pronounced in early years, but… Avoids the most emissions of CO2 and criteria pollutants Cost differences between scenarios converge over time By 2040 rate of each scenario are virtually the same CCA is marginally more expensive than CRET Communities Renewable Energy Study

Communities Renewable Energy Study By the Numbers Salt Lake City Park City Summit County Rate Impact in 2032, % higher than Base Case per kWh (CRET) 11% to 12% 9% to 10% Rate Impact in 2032, % higher than Base Case per kWh (CCA Straight Line) 14% 11% Monthly Impact to Average Residential Bill in 2032 compared to Base Case (CRET) $7 to $8 $15 to $17 $9 to $11 Fuel-Price Risk None Avoided GHG Emissions in 2032 As high as 1.8 million tons As high as 145,000 tons As high as 189,000 tons GHG Emissions in Target Year Zero Communities Renewable Energy Study

Limitations of this Study Results are guidance as to magnitude and direction Results reflect one set of assumptions, developed with the Steering Committee Cost to acquire renewable energy (Utah Photovoltaic Solar) Rocky Mountain Power rate increases (2.13% annually) Effectiveness of new energy efficiency programs (PacifiCorp) Penetration level of new distributed generation (Navigant for PacifiCorp) Does not include the significant value of avoiding fuel-cost risk and stable energy costs Communities Renewable Energy Study