1/13/2019 3:27 AM Renewable Outlook A Buyer’s Perspective Restructuring Roundtable September 17, 2010 Ellen K Angley Vice President, Energy Supply & Supply Chain Management

1/13/2019 3:27 AM NSTAR is focused on developing cost-effective energy solutions for our customers

1/13/2019 3:27 AM The sheer volume of renewable public policy initiatives bodes well for the market Federal Federal Energy Regulatory Commission Transmission Notice of Proposed Rulemaking Investment/Production Tax Credits DOE funded Eastern Interconnection Planning Collaborative Regional New England Governors’ Renewable Energy Blueprint New England States Committee on Electricity Coordinated Procurement Initiatives Regional Greenhouse Gas Initiative Massachusetts Green Communities Act Increased Renewable Portfolio Standards Electric Distribution Company Long term contracting Greenhouse Gas Initiative Ocean Sanctuaries Act

Both short & long term challenges exist for renewable development 1/13/2019 3:27 AM Both short & long term challenges exist for renewable development RPS Solar carve out market has a complex market design Class II REC market has not emerged No bidders in APS solicitations Biomass eligibility Long Term Contracting 52 bids/35 projects/500 MW (conforming) Fraught with legal challenges Economics Low gas & electric prices create significant economic challenges Transmission policy needs to evolve to encourage the best renewable siting

1/13/2019 3:27 AM Renewable potential to the north requires a more robust transmission infrastructure

1/13/2019 3:27 AM Restructured markets require solutions beyond long term contracts with EDCs

Policy solutions that will enable the long term success of renewables 1/13/2019 3:27 AM Policy solutions that will enable the long term success of renewables Transmission policies should reflect the need for a different model for renewables Focus on developing the most cost effective resources Broad recognition of market restructuring