In-conduit Hydropower: Public Sector meets Private Inventions 08/25/10 In-conduit Hydropower: Public Sector meets Private Inventions Matt Swindle, CEO, NLine Energy for Three Valleys Municipal Water District Urban Water Institute Palm Springs, CA

Agenda About TVMWD Existing Hydropower Unit and Operations Opportunity for New Hydropower Development TVMWD Partnership with NLine Energy About NLine Energy

About TVMWD Wholesale, municipal water agency formed in 1950 located in Claremont, CA serving 13 retail water agencies with a population of 525,000 Supplement and enhance local water supplies ~70,000 AF/Year Surface water treatment plant – 25 mgd capacity (~20,000 AF/year) Hydroelectric Facilities - 4,000,000 kWh/year

Miramar Hydro Station

Miramar Hydro Station Commissioned in 1987 535 kW hydro station under Qualifying Facilities (QF) agreement with SCE Power offsets onsite electrical use Flow provided by the MWD Rialto Feeder – variable pressure & flow Operates mainly in winter (min. pressure = 60 psi)

Opportunity for New Hydro Development Hydraulic grade changes in MWD feeder over time Significant bypass flows during “prime” summer months ($value of energy: summer vs. winter) Decreased power generated at Miramar hydro due to lower operating pressures in MWD feeder Loss of revenue when large hydro unable to operate Problem statement – “Is it technically and financially feasible for TVMWD to capture bypass flows with new hydro unit(s)?”

Miramar: Pressure & Flow Analysis(2007) 08/25/10 Miramar: Pressure & Flow Analysis(2007) Flow (cfs) Pressure (psi) 0 5 10 15 20 25 30 35 40 45 0 20 40 60 80 100 120 Pmin = 60 psi 10 cfs 28 cfs Existing Hydro Operation 7

TVMWD Partnership with NLine Energy ACWA’s Small Hydro Approved Preferred Provider Provided no-cost preliminary Feasibility Assessment (Jun. – Oct. 2011) Tasked to perform more detailed analysis (Oct. 2011) Two (2) pump-turbine units rated at combined 292-kW Capture bypass flows Offset new groundwater well pumping costs

Timeline Board approved Development Services Agreement (DSA) with NLine using CA Code 4217 - June 2012 Design complete – June 2013 SCE interconnection approved – October 2013 FERC conduit exemption issued – November 2013 SCE SGIP grant reservation – December 2013 Construction contract issued – December 2013

Project Attributes Sized to meet current and future flows and pressures Serves on-site load requirements through self-generation Annual Generation ~ 580,000 kWh, Cost Estimate ~ $1.45M, Annual Revenue ~ $110k, Payback period ~15 yrs ~$100k required SCE interconnection upgrades Opportunity to secure outside funding - Self-Generation Incentive Program (SGIP) grant ($125,000) Commissioning planned for July 2014

NLine Energy: Overview Small-hydro singular focus 08/25/10 Small-hydro singular focus In-conduit (pipelines) Conduit (canals) Retrofit / Rehabilitate existing hydro Small pumped hydro storage California-based business Association of California Water Agencies (ACWA) Approved Preferred Small Hydro Provider 25 MW development pipeline

Questions?