PSE Wind Energy Opportunities Whatcom County – Climate Impact Advisory Committee Ryan Sherlock July 11, 2019

About Puget Sound Energy History: Oldest Utility in the state of Washington (135 years) Headquarters: Bellevue, WA Employees: 2,700 Customers: Approximately 1.1 million electric and 790,000 natural gas Service Area: 6,000 square miles, primarily in Puget Sound region of Western Washington Service Area Population: Approximately 4 million Counties: 10 counties served

About Me Ryan Sherlock Senior Energy Resource Planning & Acquisition Analyst Strategic Initiatives Puget Sound Energy

To meet our customers’ electricity demand PSE owns and operates 5,100MW of generating capacity in Washington state and Montana Map from Irena’s 2/10/16 “Energy Operations Deep Dive” presentation Capacities from 2017 IRP

PSE is the third-largest owner/operator of wind generation in the U.S. Hopkins Ridge 157 MW Lower Snake Ridge 343 MW Wild Horse 273 MW PSE Owned Power Purchase Agreement (PPA) for Output Klondike III (Avangrid Renewables) 223.6 MW (50 MW PPA)

PSE’s three wind plants provide clean energy for our customers as well as Renewable Energy Credits (RECs) Carbon free Three PSE owned projects Generate RECs to meet Renewable Portfolio Standard 773 MW, enough to power nearly 200,000 homes Plant Owner Location Capacity (MW) Avg $/MWh Hopkins Ridge PSE Columbia County 157 $16 Lower Snake River Garfield County 343 $18 Wild Horse Kittitas County 273 $17 Small Wind Purchased Power Various 56 $68 Notes Only a portion of capacity contributes to winter peak Average $/MWh includes fuel and operating costs Wild Horse 9,000 Acres Hopkins Ridge 11,000 Acres

Lewis & Thurston Counties, WA PSE’s newest wind addition is the Skookumchuck Wind Farm, which will serve Green Direct Customers Skookumchuck Wind Skookumchuck PPA Partner RES Group Location Lewis & Thurston Counties, WA Nameplate Capacity 136.8 MW Planned Operation Date Q4, 2019 - Q1, 2020 Term 20 years Net Capacity Factor (NCF)* 31.32% Guaranteed Annual Output* 43 aMW Annual Energy* 375,346 MWh

Customer-facing renewable energy programs Retail Renewable Energy Washington RCW 19.29A – Voluntary Option to Purchase Qualified Alternative Energy Resources Customer Generation Green Power Sch 135, 136 PNW REC purchases 44,000 customers 450,000 MWh/Year Residential, commercial, municipal SOLAR CHOICE SCH 135 Solar RECs WA and ID Launched 2017 2,100 customers/5,000 MWh/Year Residential and small comm. Net Metering Sch 150 Up to 100 kW Full retail compensation 6,000 customers/50 MW Residential, commercial, municipal, community solar BULK REC PURCHASES Excess PSE wind RECs Boeing is sole customer Ends in 2018 Large business Green DIRECT SCH 139 Long-term partnership with PSE for dedicated energy resources Limited to 75 aMW Large commercial, municipal Small Power Producers Sch 91, 152 100 kW – 5 MW 15 year pricing based on avoided cost Small developers 2018 + Activity Increase customer participation, including reaching Green Direct cap