Installing Generation - Behind the Meter Chris Rogers Sega, Inc. November 6, KMEA Annual Conference

What is “Behind the Meter” Generation? “Commonly used to refer to the flow of electricity before it hits the meter on the transmission system wires” - SPP IM Dictionary and Quick Reference Guide, 2011 NOT “Photovoltaic (PV) industry term “Behind The Meter” (BTM): A renewable energy generating facility that produces power intended for on-site use in a home, office building, or other commercial facility where the solar PV system is literally “Behind The Meter”, on the owner’s property, not on the side of the electric grid/utility. Similar concept applied to municipals KMEA Annual Conference

What is “Behind the Meter” Generation for Municipalities? Small Generation - Typically < 10 MW up to 25 MW Connected to City’s Internal System < 100 kV - Sub-Transmission Generation for Local Consumption - Not for Sale to Third Parties 2014 KMEA Annual Conference

Why Install BTM Generation? - Continued Change PPA Expiration or Unit Retirements Transmission Congestion / Curtailment Obsolescence - Economic, Environmental, or Regulatory Risk Management - Diversity of Sources and Fuels Flexibility - Response to Balance System and Loads Load Growth 2014 KMEA Annual Conference

Benefits of Behind the Meter Generation OWNERSHIP - Local Control - Self Sufficiency Avoid Transmission Congestion / Curtailment Local System Reliability Peak Shaving / Reduction Standby / Emergency Response Dispatchable vs. Interruptible Enhance Market Participation 2014 KMEA Annual Conference

Risks of Behind The Meter Generation Costs - Capital Intensive Projects Responsibility - Cost and Schedule Resources - Labor Complexity - Coordination Fuel Availability / Management Electric Interconnection Permitting Issues Stakeholder issues 2014 KMEA Annual Conference

Dispatchable Options for BTM Generation Gas Turbine Generators ◦Simple Cycle ◦Combined Heat and Power (CHP) ◦Combined Cycle Reciprocating Engine Generator Sets 2014 KMEA Annual Conference

Dispatch Options for BTM Generation 2014 KMEA Annual Conference GeneratorFuel Net Output (MW) Heat Rate (HHV, Net) Overnight EPC Cost ($ Millions) Overnight EPC Cost/kW Solar Mars 100 Natural Gas10.611,820$16.1$1,522 Dual Fuel10.611,820$17.6$1,661 Siemens SGT-400 Natural Gas13.510,900$17.3$1,284 Dual Fuel13.510,700$18.1$1,338 Solar Titan 130 Natural Gas1411,020$18.0$1,283 Dual Fuel1411,020$20.0$1,425 General Electric LM 2000 Natural Gas16.411,070$22.8$1,388 Dual Fuel16.411,070$23.2$1,417 General Electric LM 2500 PJ Natural Gas21.610,640$28.0$1,297 Dual Fuel21.610,640$29.1$1,346 Siemens SGT-600 Natural Gas22.811,070$25.5$1,117 Dual Fuel22.811,300$27.2$1,192 Wartsila 20V34SGNatural Gas18.48,300$23.1$1,256 Wartsila 20V34DFDual Fuel18.48,370$23.8$1,296

Dispatchable Options for BTM Generation 2014 KMEA Annual Conference Characteristics of Natural Gas-Fueled Generation Options DescriptionReciprocating EnginesCombustion Turbines OEM CaterpillarWartsilaGESiemensSolar Model G20CM3420V34SGLM2500LM200SGT-600SGT-400Titan 130Mars 100 Rating MW (1) Heat Rate BTU/kWh (2) 8,0008,15011,05011,30011,45010,90011,30011,900 0 to 100% LoadMinutes Maintenance BasisHours Starts (1) Site rating conditions: 59 0F ambient dry bulb temperature, 60% relative humidity, and 900' AMSL elevation. (2) Net heat rate on HHV basis at 100% load for site rating conditions.

Dispatchable Options for BTM Generation 2014 KMEA Annual Conference

Dispatchable Options for BTM Generation Compare BTM Options to Conventional Generation Sources 2014 KMEA Annual Conference

Renewable Options for BTM Generation Solar Photovoltaic (PV) Solar Projects Wind Generators Energy Storage - Batteries, CAES 2014 KMEA Annual Conference

Solar PV for BTM Generation Utility Scale <5 MW to 20 MW NREL 2014 Projected Capital Costs - $2/W DC 5 MW Municipal Solar Garden - $10,000,000 15% Capacity Factor 20% Capacity Factor Solar PV Parity (Subsidized) in 10 States 2014 KMEA Annual Conference

Wind Generation - Not Typically BTM Current Regional PPA Proposal Ranges ◦$20/MWh to $30/MWh ◦40% to 50% Capacity Factors ◦50 MW - “Utility Scale” ◦Developer Keeps RTC ◦Purchaser Takes Delivery Risk 2014 KMEA Annual Conference

Renewable Options for BTM Generation Compare Conventional and Renewable Options 2014 KMEA Annual Conference

Renewable Options for BTM Generation Regional PV Projects 2014 KMEA Annual Conference LocationMWIn ServiceOwner Missouri Butler3April 2014Developer City Utilities of Springfield4.95August 2014Developer O'Fallon5.7November 2014Ameren Independence≤ 5Late 2015Developer Nixa> 5Late 2015Developer

Sample PV Projects 3 MW - Butler, MO 5 MW - Springfield, MO 2014 KMEA Annual Conference

Sample PV Projects: 3 MW Butler, MO 2014 KMEA Annual Conference

Favorite Kansas Behind The Meter Project Garden City, KS - Jameson Energy Project 2014 KMEA Annual Conference

Garden City, KS - Jameson Energy Center 2014 KMEA Annual Conference

Garden City, KS - Jameson Energy Center 2014 KMEA Annual Conference

Garden City, KS - Jameson Energy Center 2014 KMEA Annual Conference

Garden City, KS - Jameson Energy Center 2014 KMEA Annual Conference

Key Issues for Successful BTM Generation Projects Planning Siting Financing Schedule Electric Interconnection Contracting Methodology Contingency Owner’s Participation O & M Plans 2014 KMEA Annual Conference

"Tragic Prelude" ( ) by John Steuart Curry ( ) 2014 KMEA Annual Conference Kansas: Optimism to Change for the Future