Public Power’s Role in the Clean Energy Future Presentation of Sue Kelly President and CEO American Public Power Association Consumer Federation of America May 12, 2017

American Public Power Association The American Public Power Association is the national service organization representing the U.S.’s approximately 2,000 electric utilities that are owned by units of state and local government. Collectively, they serve over 49 million people.

Public Power Leading the Way-I Over 100 distribution level utility solar installations, coming in different shapes and sizes Community solar projects in cities like Moorhead, MN, Central City, NE, Orlando, FL, Seattle, WA and many others Deployment of solar systems within the community by joint action agencies in Indiana, Delaware, South Dakota, Ohio, and others

Community Solar Brings solar to customers who otherwise lack access to rooftop solar or prefer to “leave the driving” to others Benefits of larger scale installations – lower installation and per kW hr costs; easier for utility to manage as operational matter (we control it) Public power projects developed in at least 16 states, with more being planned Progress captured in CFA paper prepared by Steve Brobeck

Public Power Leading the Way-II Leaders in solar/battery storage watts per customer according to Smart Electric Power Alliance Deploying new technologies: LED Streetlighting: Bryan, OH, Lansing, MI Water heater programs: Fort Collins, CO, Rockwood, TN, Crawfordsville, IN Public Power supported by our own R&D program – Demonstration of Energy & Efficiency Developments (DEED)

Renewables Deployment Public Power Utilities generally secure renewable generation through purchased power agreements (PPAs) to get some benefit from tax incentives Utilities such as LADWP, Austin, and CPS Energy (San Antonio) have hundreds of MWs wind/solar PPAs Direct ownership of wind capacity in Nebraska, other states

Storage and Electric Vehicles Utility-scale storage systems in Sterling, Mass, Minster, Ohio, and Georgetown, Texas Electric Vehicle Rates available from many California utilities, as well as charging stations Market growth in EV deployment – a great opportunity for the industry Public power working with Electrify America on possible grants

Variety of Rate Structures Sacramento Municipal Utility District (SMUD): TOU rates in 2019 - manage peak demand Austin Energy: Value of Solar rate – pay excess rooftop solar generation value to grid Buy-all, sell-all rates: Different rates for customer purchases from utility/sales to grid Bottom line: no one “correct” rate; local circumstances, customer preferences, community values all factors in setting rates Distribution grid is a “commons”-- its costs must be recovered equitably to ensure reliable service to all

Adapting to Changing Industry Industry-wide deployment of renewables over past 3-5 years has been and will remain consistent: about half (or more) of all new utility-scale generation is wind and solar Continuing to see advances in customer-side technologies to increase efficiency, reduce demands (especially at peak) Public power (and co-op) electric utilities are owned by their customers and are not-for-profit; we are well positioned to partner with retail customers to implement new technologies