Holy Cross Energy Del Worley October 22, 2010

Holy Cross is an electric distribution cooperative that serve 55,000 meters Most of our consumers are located in the Roaring Fork and Eagle valleys of West Central Colorado Customers include Vail, Beaver Creek, Aspen, Snowmass and Sunlight ski resorts As a cooperative, Holy Cross’s consumers are also our owners

Customer surveys: May 2003, May 2007 & November 2009 Find out about customer priorities: Concerned about the environment Support renewable generation Support conservation & efficiency Willing to pay more to meet these objectives % more approx. 60% favor paying more % more approx. 80% favor paying 2% or more

Western Area Power Administration 3% Ownership share in Comanche 3 supercritical coal fired plant in Pueblo, CO 33% Most efficient coal plant in Colorado Small renewables on our system (solar and hydro) <1% Public Service Company of Colorado provides the rest of our power supply

Late 1990’s. – LivingWise program (5 th grade classroom education) – Green pricing program (wind and small hydro) – Allowed net metering – Free Audits 2004 – Voluntary goal of 20% renewable by 2015 (prior to amendment 37) – Began the WE CARE program (With Efficiency, Conservation And Renewable Energy) Renewable energy rebates Solar thermal rebates (2008) Energy efficiency/conservation grants (up to $10,000) Appliance rebates and refrigerator disposal Continued free residential audits and began limited scope commercial audits Education and public outreach Support for local environmental organizations

WE CARE program Funded through a 2% surcharge on annual operating revenue Last survey - 2/3 of consumer base supported this surcharge Any unspent funds are carried forward for future use in the program Added 260 net metered systems, mostly solar (total 1,355 kW) Purchase agreements with 3 hydro-electric systems (160 kW) Rebates on over 3,800 appliances and energy saving devices Approximately 2,100 audits Total incentives paid to HCE consumers – Over $3.1 million (L-T-D) LivingWise – 750 kits distributed to 5 th graders (2009 – 2010 school year)

Energy Efficiency potential study (Nextant) Employee transportation incentives Provide buses Carpool incentives Walking and biking incentives Use of efficient transformers and distribution voltage(line loss reduction) Building retrofits (heating and lighting) New buildings constructed with efficiency considerations

Renewables. 40 kW hydro system - partnership with Town of Basalt Clean Energy Collective (one MW and expandable) – Allows Holy Cross consumers to own a share of a community solar farm – Holy Cross purchases the output through a monetary bill credit – 80 kW completed with another 900 kW planned – Studying the value provided by distributed solar and hydro generation in partnership with San Luis Valley, Fort Collins/Platte River and the GEO – Working with Public Service Company of Colorado to add additional renewables through our power supply contract – Review renewable opportunities from cold calls

Holy Cross is currently developing a five year renewable energy & energy efficiency plan – Renewable energy – achieving 20% by MW renewable energy RFP Issued in August Due at the end of January, 2011 (interest appears good) One MW solar RFP Currently evaluating responses and developing short list (response was good)

Developing an energy efficiency plan Created Energy Efficiency task force to create a plan Issued RFP to have a consultant develop a five year energy efficiency plan Reviewing alternative pricing structures Investigating smart grid technology