1 Distributive Generation Wind Landfill Solar Fuel CellMicro-Turbine

2 CPS Energy Generation

3 Texas has net metering law in place since 1986 for renewables only. On Feb , the Public Utility Commission of Texas adopted interconnection guidelines for distributed generation and requested that staff continue its investigation of distributed resources The costs of interconnection with CPS Energy can get expensive. System upgrades are borne by the Customer, such as service line and/or meter facilities, conductor, communications, SCADA equipment, etc. required for the interconnection. High Voltage readings at interconnection point Micro turbine and Fuel Cell projects have shown to be too expensive to maintain Solar – estimated payback is 20yrs Trends Landfills receive over 5,100 Tons of garbage daily, with decomposition in about 5-6 yrs. Covel location expected to double its generating capacity. Wind continues to be a dominant source of renewable DG, with another 130 MW coming on-line. Major Issues and Trends

4 Requests have been minimal –3 Landfill Projects Tessman Garden (4.8MW) Covel Garden (9.6MW) Nelson Garden (3.0MW) –1 Fuel Cell –1 Micro turbine (80kW) –4 Solar (private customer, Institute of Texan Culture & CPS Energy – 40kW) –Wind (260MW) Volume of Requests

5 The electrical generation equipment must be powered by renewable energy sources: –The sun (directly or indirectly) –Wind –Geothermal sources –Biomass and/or biomass-based waste products (including landfill gas) Customers interested in DG must fill out an application. CPS Energy issues a study fee to applicant CPS Energy determines if circuit upgrades are needed (if so, upgrade costs are added to Agreement) Application is approved and agreement is submitted to Applicant After Agreement is signed by applicant, upgrades to distribution circuit are performed, including communications, SCADA, protective relaying, & metering Once Commissioning Tests are conducted, DG is approved for operation CPS Energy will ensure that the required DG safety devices are operating properly. These devices provide safety to our personnel who are performing maintenance on distribution facilities. All customer equipment -- up to the service point -- will be inspected by the City of San Antonio to ensure compliance with City of San Antonio codes. Overall Process

6 San Antonio Water Systems (SAWS) proposing a DG project at a sewer treatment plant. Fuel source – Methane Gas Fuel Refinery – proposing a 10MW DG project. Fuel source - a product of hydrogen that would be combined with LP gas Engine Testing Laboratory – various size engines (lawnmower to diesel trucks) that when attached to a generator, the load generated by the engine is dumped onto the distribution grid Unusual Installations

7 Landfill Gas Projects Covel Garden Landfill 6 – 1.3 MW Units 9.6 MW Total Nelson Garden Landfill 2 – 1.5 MW Units 3.0 MW Total

8 What’s Next? Wind Landfill Solar Fuel CellMicro-Turbine