Making Green Tariffs Work for Your Customers Sterling Root Manager, Business Development sterling.root@edf-re.com

Agenda 1 2 3 4 5 Introduction What are Green Tariffs Examples of Green Tariffs 4 Advantages & Challenges 5 Q&A EDF Renewables - Green Tariffs May 1, 2019

Introduction

22 18.1 TWh 741 MW under construction 15 GW 10 GW 30+ 70 yrs $79 B EDF GROUP 70 yrs $79 B annual revenue experience EDF RENEWABLES $867 M 22 operating counties 18.1 TWh green electricity EBITDA EDF RENEWABLES NORTH AMERICA Distributed Solutions Grid-Scale Power Asset Optimization 15 GW developed 10 GW O&M contract 741 MW under construction 30+ years experience © EDF Renewables / Confidential

Full Suite of Offerings © EDF Renewables / Confidential

What are Green Tariffs?

Green Tariffs put the Utility at Core of Renewables Procurement REC Riders Community Solar VPPAs On-Site DG Retail Choice Large Plant Ownership Green Tariffs One-off renewables agreements REC Purchases Corporate Renewables Procurement Options with Utility at the Core Other Corporate Procurement Options Solar Loan Programs Green Tariffs for C&I Customers “On-bill” renewable energy (incl. RECs) Offered to C&I customers by their local utilities Medium to long term multi-year contracts Intended and available for repeated use Must be approved by state-level utility regulators Green Power Products EDF Renewable Energy - Green Tariffs November 2, 2017

No Standard Definition, but Common Elements Resource Contract Type Rate Design Specific Sleeved PPA Customer contracts for output of specific facility owned by utility or via PPA “passed through” by utility Rider Adder to existing tariff, sometimes combined with some form of credit for avoided energy Existing Tariff Renewables Charges Avoided energy credit Pool New Tariff Energy-related portion of rate structure “swapped out” for charges specific to the renewable energy procured and approved as new standalone or companion tariff Subscription Program Customer buys portion of output from single or pooled resources owned by or under PPA with utility Other Considerations: PPA vs. Utility Ownership Who identifies resource (customer vs. utility) New versus existing plants Inclusion of both options in tariff (i.e., sleeved PPA for large offtake, subscription for smaller appetite) Greater regulatory comfort with subscription compared to sleeved PPA Design for particular customers vs. broad appeal Availability to new vs. existing load One-time PUC approval vs. one-time overall approval plus PUC approval for specific arrangements under tariff EDF Renewable Energy - Green Tariffs November 2, 2017

Green Tariff Trends and Examples EDF Renewable Energy - Green Tariffs November 2, 2017

Green Tariff Programs Across the United States TVA C&I PPAs 2018 Google: 413MW Facebook: 377MW Walton EMC/Facebook: 202MW © EDF Renewables / Confidential Notes: World Resources Institute, Map for Corporate Buyers

Global C&I procurement 2018: 13.8GW U.S. EOY 2018: 8.5GW of corporate PPAs © EDF Renewables / Confidential Notes: BNEF Corporate PPA Report Jan 28, 2019; BRC Corporate RE Report

Green Tariff Examples Illustrate Diversity of Program Design Resource Contract Type Rate Design Example Customers Pooled Uses Westar’s available purchased wind generating capacity until fully subscribed Subscription Customers can sign up for wind generation service for volume determined in consultation with Westar Tariff Fixed rate for wind gen service replaces base retail energy charges for purchased volume Excess purchased renewables credited at retail energy rate Specific One 130 MW wind facility under PPA specifically for this tariff Subscription Customers of min total load size enroll specific locations into program Tariff Companion tariff to existing rate schedules Provides credit for system power and new charge for renewables Pooled or Specific For subscription customers, pool of renewable resources For special contracts, new or existing dedicated facility owned or under PPA w/ NVE Subscription or Sleeved PPA “Subscription” w/ NVE for 50/100% of energy (open to all C&I customers) “Sleeved PPA” under special contracts (open to larger customers) Rider For “subscription” option, rider rate is off-the-shelf (and less base electric rates) for 2 yr term For “sleeved PPAs” – rider and term negotiated and subject to PUC approval; rider rate floor set to rate under “subscription” option Sources: Utilities’ tariff documentation; World Resources Institute, “Emerging Green Tariffs in U.S Regulated Electricity Markets”, May 2017 EDF Renewable Energy - Green Tariffs November 2, 2017

Advantages and Challenges EDF Renewable Energy - Green Tariffs November 2, 2017

Advantages and Challenges of Green Tariffs Why the interest? Advantages Challenges Corporate Purchaser Option in regulated markets Greater “physicality” – closer link btw consumption and source; local resources Scalable for different offtake appetite, depending on design Run by utility, expert in energy procurement, reliability, safety Renewables on utility bill Energy price hedge Availability of shorter and flexible tenors Not always cost neutral or most economic method Complexity of evaluating charges and credits Need to wait for regulatory approvals for programs Utility Customer satisfaction / choice Retention of existing load and attraction of new load Sustainability leadership Opportunity to create customized tariffs for leading customers and/or customer classes Addition of committed renewables into generation portfolio Avoidance of cost sharing Regulatory approval – long lead times and many gates Caps in program participation and resource availability can mean “going back to the well” EDF Renewable Energy - Green Tariffs November 2, 2017

Questions?

connect Sterling Root Thank you. Manager, Business Development Distributed Solutions (240) 620-1132 Sterling.root@edf-re.com At EDFR, we attribute much of our success to the opportunities we encounter in the confluence of economic, environmental, and social forces. Approaching these opportunities responsibly is the lifeblood of our corporate culture.