ESMEC-ET Electric Supply Portfolio Report March 9, 2017

Portfolio Performance Snapshot Overview: FY 2016 electric supply cost of $10.7 million/157,529 MWhs for approximately 840 accounts located behind Delmarva Power for 28 separate local government legal entities. Peak load capacity of 34.1 MW as of June 1, 2016 (ESMEC-ET members actively manage peak capacity). Several members participate in demand response to manage energy costs. FY 2017 YTD (Thru February): Unit cost at $60.18 MWh which is $10.28 MWh and 14.6% below budget respectively. FY 2017 forecast lowered from $63.00 MWh to $60.50 MWh. FY 2018 forecast previously lowered from $69.00 MWh to $65.00 MWh. Billing Rate/Working Capital Balance (WCB): Billing rate changed effective with the January 2017 billing month from $.0753/kWh to $.069/kWh. The February 2017 end of month excess WCB is $506,213, a decrease of $1,011,620 from the previously reported December 2016 average excess working capital balance (WCB) of $1,517,833. The decrease arose from slower than expected member supply invoice payments during January and February and a final settlement adjustment under the WGLES contract that expired in September 2016. EnerNOC projects the excess WCB to be in the target range of $1.5 million by June 30, 2017 with the supply invoice payment catch up. Other Noteworthy: Two blocks purchased on Feb 23, 2017 at record low prices. No additional block purchases scheduled for remainder of calendar year 2017. MD Renewable Portfolio Standard (RPS) final costs for calendar year 2016 (refer to slide 28). WGL Energy Services will begin monthly RPS purchases for calendar year 2017 compliance starting March 2017.

I. Supply Portfolio Results

II. Portfolio Hedge Strategy Review

III. Portfolio Billing Rates

Appendix