Evaluation of NEW LARGE ENERGY LOADS July 28, 2014 Andy Wendell

Current Situation Significant increase in requests for energy loads. Requests ranging between 1 and 10 MegaWatts. 30+ independent inquiries for new large load. (5) active applicants Anticipating 5 to 7MW to come on-line in 2014 Characteristics: Expansion capability is valued. Service locations are county wide (non-specific) Targeting available leased space Load type is “flat” 24/7 2

Mitigation Engineering fees adjusted to reflect true costs Implementation of large load application process Adjustments to application Utilization of new service deposit language Results: Reduction in “tire kickers” Improved responsiveness to applicants Improved engineering and system planning 3

Potential Mid-Term Impacts Electrical system capacity Physical infrastructure Reliability & redundancy Revenues Idle services 4

5 Revenue Impact Retail versus Wholesale Annual average Distribution system growth is approximately 2 to 3 MW

Planned Mitigation Track and monitor new applications Rate committee actions – Calibrate Schedule 4 (contract) – Consider aggregation language – Evaluation of system impact charges – Study revenue requirements Engineering – Evaluation of “net-zero” impact – Evaluate impacts to long range planning model 6

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