Interconnection Process (Afternoon Detailed Session) 4/20/2017 1:35 PM Interconnection Process (Afternoon Detailed Session) Attorney/Client Privilege DRAFT

Topics to Cover Interconnection Process Overview Application Timing and Completeness Technical Scoping Meeting Study Process Interconnection Agreement Project Implementation Deliverability References

Overview of Wholesale Generation Interconnection Process 4/20/2017 1:35 PM Overview of Wholesale Generation Interconnection Process Application Processing Technical Scoping Meeting Technical Studies Interconnection Agreement Project Implementation Transmission Interconnections Governed by California Independent System Operator Corporation (CAISO) Tariff PG&E’s transmission interconnections are for 60 kV and higher All applications must be submitted to the CAISO These slides are per CAISO Tariff which is subject to the CAISO Distribution Interconnections Governed by PG&E’s Wholesale Distribution Tariff (WDT) PG&E’s distribution voltage level is defined as facilities operating below 60 kV All applications must be submitted to PG&E These slides assume FERC approval of the proposed WDT to be filed in February 2011 Attorney/Client Privilege DRAFT

Application Processing Timeline 4/20/2017 1:35 PM Application Processing Timeline Application Processing Technical Scoping Meeting Technical Studies Interconnection Agreement Project Implementation Application Process Milestone Duration Responsible Party Application Submission Clock Start Customer Application Deemed Complete or Notice of Outstanding Items 10 Business Days (BD) PG&E or CAISO* Customer to provide outstanding items or request extension 10 BD Customer to provide outstanding items if extension requested 20 BD** Application Deemed Complete * Subject to CAISO ** PG&E Extension Business Rule Attorney/Client Privilege DRAFT

What is in a complete application? 4/20/2017 1:35 PM What is in a complete application? Application Processing Technical Scoping Meeting Technical Studies Interconnection Agreement Project Implementation Transmission Interconnections Completed Application Site Plan Diagram Single Line Diagram Application Fee Site Control or In-Lieu Financial Security Distribution Interconnections Completed Application Site Plan Diagram Single Line Diagram Application Fee Site Control Attorney/Client Privilege DRAFT

PG&E Application Note this application is a DRAFT form

PG&E Application Note this application is a DRAFT form The Application must be completed in its entirety Point of Interconnection must be identified Commercial Operation Date must be identified

PG&E Application Site Control Requirements must be met Note this application is a DRAFT form Site Control Requirements must be met

Attachment A Generating Facility Data Section Content Applies to 1 General Directions All 2 Generating Facility Information 3 Synchronous Generator – General Information Synchronous 4 Excitation System Information Non-Inverter 5 Power System Stabilizer Information Synchronous >30MVA 6 Turbine-Governor Information Turbine 7 Induction Generator Data Induction 8 Generator Short Circuit Data 9 Step-Up Transformer Data 10 Interconnection Facilities Line Data 11 Wind Generators Wind 12 Load Flow and Dynamic Models All* * Typically applies to Transmission

Scoping Meeting Purpose 4/20/2017 1:35 PM Scoping Meeting Purpose Application Processing Technical Scoping Meeting Technical Studies Interconnection Agreement Project Implementation Scoping Meeting is designed to provide the Interconnection Customer: Ensure common understanding of Interconnection Customer’s project Ensure understanding of Generator Interconnection Procedure Come to agreement on Point of Interconnection and generator size PG&E will provide technical system details, limitations, and queued ahead projects PG&E will advise regarding which process Interconnection Customer qualifies for and study to be conducted Next Steps 5 Business Days after Scoping Meeting, the Developer must: Provide confirmation on the Point of Interconnection Provide confirmation on Generator Size Attorney/Client Privilege DRAFT

Scope of Studies Technical Studies Technical Application Scoping 4/20/2017 1:35 PM Scope of Studies Application Processing Technical Scoping Meeting Technical Studies Interconnection Agreement Project Implementation Technical Studies are intended to provide: Impact of generation on PG&E’s electric system Scope of Capital Improvements to PG&E’s electric system to ensure the safety, reliability, and integrity of the grid: -Interconnection Facilities Generator Specific facilities required for interconnection -Distribution Upgrades Upgrades to the Distribution System triggered by Generator or Cluster -Network Upgrades Upgrades to the Network (CAISO Controlled Grid) triggered by Generator or Cluster Cost Estimate for Scope of Capital Improvements Required and Schedule Attorney/Client Privilege DRAFT

Project Implementation Study Results + Technical Studies Contract Project Implementation Cost Estimate Accuracy Supplemental Review System Impact Study Phase 1 Study Facilities Study Phase 2 Study Initial Review Project In-Service Construction Designs the job and estimates the job with a +/- 10% Accuracy Provides a detailed Scope of Work. Provides the Customer +/- 25% Accuracy Provides a Scope of Work. Provides the Customer +/- 50% Accuracy Provides a Rough Scope of Work Determines acceptance of Fast Track Process -

Interconnection Study Processes 4/20/2017 1:35 PM Interconnection Study Processes Fast Track Initial and Supplemental Review 2 MW on 12kV and 3 MW on 21 kV and 5 MW on higher voltages Fast Track Screens Electrical Independence Screens Commercial Operation Date Screen (CAISO) No MW limit Financial security requirements Independent Study Process System Impact and Facilities Study Cluster Study Default process, no MW limit One annual study Financial security requirements Phase I and II Studies All processes may apply for full capacity. Deliverability assessment will be conducted by CAISO in CAISO’s cluster process. PG&E plans on filing a reformed Wholesale Distribution Tariff at the end of Feb seeking approval for a March 1 effective date. These slides assume acceptance by FERC. Attorney/Client Privilege DRAFT

Fast Track Distribution Transmission Tariff Section 2 Section 5 4/20/2017 1:35 PM Fast Track Distribution Transmission Tariff Section 2 Section 5 Applicability Must Pass Screens MW Limit 5MW, Rule of Thumb - 3MW on 21kV 2MW on 12kV 5MW Application Fee $1000 (includes Initial Review) $500 Study Distribution Timing Distribution Fee Transmission Timing Transmission Fee Initial Review 10 BD Included 15 BD $1000 Supplemental Review 20 BD Estimated Fee BD – Business Day Attorney/Client Privilege DRAFT

Independent Study Process 4/20/2017 1:35 PM Independent Study Process Distribution Transmission Tariff Section 3 Section 4 Applicability Electrical Independence Test Electrical Independence Test & Commercial Operation Date Test MW Limit No Limit (corrected from Conference handouts) Application Fee $2000 $50k plus $1k/MW (max $250k) Study Distribution Timing Distribution Fee Transmission Timing Transmission Fee System Impact Study 60 BD Estimated Fee 90 BD Included Facilities Study Facilities Study begins when Initial Posting is made BD – Business Day, CD – Calendar Day Attorney/Client Privilege DRAFT

Cluster Study Process Distribution Transmission Tariff Section 4 4/20/2017 1:35 PM Cluster Study Process Distribution Transmission Tariff Section 4 Section 6 & 7 Applicability Default Cluster Window March 1-31 Application Fee $50k plus $1k/MW (max $250k) Study Distribution Timing Distribution Fee Transmission Timing Transmission Fee Study Start Phase I 134 CD Included Jun 1 Phase II 196 CD Jan 1 BD – Business Day, CD – Calendar Day Attorney/Client Privilege DRAFT

Financial Security Postings 4/20/2017 1:35 PM Financial Security Postings Posting Number Posting Type Posting Amount Timing Phase Initial Interconnection Facilities and Distribution Upgrades 20% 30 CD WDT 60 CD CAISO 90 CD After System Impact Study (SIS) After Phase I Network Upgrades 15% or $20k/MW or $7.5M (>20MW) Second 30% 120 CD 180 CD After Facilities Study After Phase II 30% or $1M (<20MW) or $15M (>20MW) Third 100% On or before the start of construction After IA (acquisition of permits) BD – Business Day, CD – Calendar Day Attorney/Client Privilege DRAFT

Interconnection Agreement (IA) 4/20/2017 1:35 PM Interconnection Agreement (IA) Application Processing Technical Scoping Meeting Technical Studies Interconnection Agreement Project Implementation Small Generator Interconnection Agreement (SGIA) – 20MW or less Large Generator Interconnection Agreement (LGIA) – greater than 20 MW CAISO GIA is a three-party Agreement between CAISO, PG&E, and Interconnection Customer IA Process Milestone Duration Responsible Party Tender IA after Phase II or Facilities Study* 30 CD PG&E or CAISO** Tender IA after Initial or Supplemental Review (Fast Track) 15 BD Respond to Draft All parties PG&E or CAISO to issue executable IA IA execution * Tariff timing regarding tendering an Interconnection Agreement post Facilities Study not identified ** Subject to CAISO BD – Business Day, CD – Calendar Day Attorney/Client Privilege DRAFT 17

Project Implementation 4/20/2017 1:35 PM Project Implementation Application Processing Technical Scoping Meeting Technical Studies Interconnection Agreement Project Implementation Post Interconnection Agreement, PG&E and Interconnection Customer should be engineering and designing, procuring, and constructing the electrical interconnection PG&E will be engineering the Capital Improvements as agreed upon in the Interconnection Agreement Interconnection Customer will be engineering the electrical system on the Interconnection Customer’s side of the meter and any upgrades that will be applicant built and deeded Post EPC, PG&E, CAISO (if applicable), Interconnection Customer will coordinate a pre-parallel inspection and commissioning to achieve Commercial Operation. Attorney/Client Privilege DRAFT 18

PG&E will provide guidance prior to the upcoming Cluster. Deliverability RA deliverability? What is it? How do you get it? Timing? Participants are required to apply for CAISO deliverability studies to qualify for providing Resource Adequacy PG&E and Socal Edison and CAISO are currently developing the process to allow WDT projects to obtain Resource Adequacy. PG&E will provide guidance prior to the upcoming Cluster.

Interconnection Resources PG&E Wholesale Generator Interconnections Website: http://www.pge.com/mybusiness/customerservice/nonpgeutility/generateownpower/wholesalegeneratorinterconnection/#thesmallgeneratorinterconnectionproceduresfortransmissionsysteminterconnectionstransmissionsgip Email for Interconnection Website: gen@pge.com Please check PG&E’s Wholesale Generator Interconnection Website March 1 for new application forms and filed tariff. CAISO: http://www.caiso.com/docs/2002/06/11/2002061110300427214.html Or via www.pge.com/rfo, select “Solar PV PPA Program RFO”.

Appendix: Distribution Schedule Summary 4/20/2017 1:35 PM Appendix: Distribution Schedule Summary These diagrams are for estimating purposes. It assumes immediate response from Customer. Fast Track Process Independent Study Process Cluster Process Attorney/Client Privilege DRAFT 21

Appendix: Transmission Schedule Summary 4/20/2017 1:35 PM Appendix: Transmission Schedule Summary These diagrams are for estimating purposes. It assumes immediate response from Customer. Fast Track Process Independent Study Process Cluster Process Attorney/Client Privilege DRAFT 22