SAN MATEO COUNTY CCA TECHNICAL STUDY: OVERVIEW Community Choice Energy Advisory Committee June 25 th,2015

Key Elements of the Technical Study Load Analysis Rate Analysis Pro Forma Analysis Supply Portfolio Analysis Economic Impact Analysis Technical Study Report analytics start with load data and customer composition scenarios addressing renewable and carbon free content as well as other program assumptions (i.e., energy efficiency,) revenue generated through projected energy sales (at PG&E rates) and discounted CCA rates (assumes that PG&E rate structure is maintained, including identical rate schedules for CCA customers) program financial results are projected with an emphasis on cash flows, revenues, power costs, net surplus, and debt structure impacts on indirect and direct job creation (i.e., local renewable energy projects) are estimated 2

CCA Supply Scenarios Option 1: Baseline, minimum 35% renewable energy content (exceeds 33% legal minimum) Option 2: Minimum 50% renewable energy content Option 3: High scenario of 100% renewable energy content with emphasis on use of local/regional generating resources PEA will consider variations in how renewable and non-renewable energy can be obtained as well as related impacts to projected CCA operations: Location: in-state, in-county, out-of-state Fuel Source/Generating Technology: natural gas, hydro-electric, solar, wind, geothermal, system purchases Portfolio Content Category/Bucket: bundled (Bucket 1), firmed and shaped (Bucket 2), unbundled renewable energy certificates (Bucket 3) Power purchase agreement vs. direct investment 3

CCA Risk Assessment PEA will complete a full risk assessment for San Mateo County’s CCA Quantitative risk assessment: evaluated by modeling the financial impacts associated with changes to key assumptions (e.g., power prices, utility rates, etc.) Qualitative risk assessment: evaluated by determining potential risks and mitigation strategies associated with the following areas: o Implications related to CCA disbandment/failure o Over- and under-procurement as well as scheduling o Regulatory/legislative risks (i.e., evolving RPS requirements, GHG reporting, capacity rules and costs; bonding requirements) o Availability of desired supply and related market risks o Communications/marketing and prospective political risks 4

Essential Program Decisions Retail product offerings (i.e., 50% and 100% renewable products) o Renewable energy content target o Composition of renewable energy portfolio (different categories and technologies) Targeted GHG-free emissions content Use of new vs. existing generating sources Local renewable project development Use of unspecified sources for conventional power supply Complementary programs (feed-in-tariff, net energy metering, demand reduction programs, energy efficiency, etc.) Financial targets (reserves, rate stabilization fund, debt service, etc.) Phasing of customer enrollments Credit structure (i.e., lockbox, credit facility, County funding, etc.) 5

Technical Study Timeline Currently compiling modeling assumptions Study to be completed within 60-days customer data receipt (CCA INFO tariff, item #16 – this data will provide monthly, customer- specific data for all prospective CCA customers) Draft “Fully Outsourced Business Model” assessment has been completed (and will be included within the Technical Study Report) Assessment focused on recently promoted CCA business model, which outsources all substantive responsibilities typically undertaken by California’s operating CCAs, including resource planning and procurement, compliance reporting, ratesetting, etc. Related documents, including proposed services agreement, feasibility report and other items, were reviewed as part of this assessment Draft assessment was circulated for “internal” review Comments were provided and incorporated in final draft document 6