1 WMECo Solar Program Utility Ownership: One Part of a Portfolio of Options January 19, 2010

For Discussion Purposes Only 2 Potential, Reality and Intentionality…. Germany: ~1,000 MW in 2006 United States: ~100 MW in 2006

For Discussion Purposes Only 3 ….but let’s not lose sight of practicality….

For Discussion Purposes Only 4 Engaging the Opportunity  Goals, enabling policies and incentive mechanisms are in-place  The technologies and industry resources are readily available  The Commonwealth has an abundance of development potential  Our collective success requires a portfolio of solutions and ownership models  Utility Ownership is one of the many ownership models available to you  Selecting the model that best suits your needs is a first and essential step.

For Discussion Purposes Only 5 Renewable Portfolio Standards: Setting the Stage

For Discussion Purposes Only 6 The US had 560 MW’s of grid-connected Photovoltaics at year-end ,100 PV Systems in Massachusetts contributed approximately 10 MW to this to amount The Commonwealth has a goal is to install 250 MW of Solar by 2017 Massachusetts Energy Policy: A Key Enabler of Progress

For Discussion Purposes Only 7 Accomplishments, Progress & the Path Forward

For Discussion Purposes Only 8 Utility Ownership: WMECo’s Solar Program 6 MW of utility-owned solar energy facilities. Utility owned, operated & financed DPU Regulates costs & cost allocation Customers receive all energy, capacity & REC values Focusing on utility-scale systems 1 MW or greater; direct connection to EPS Landfill, Brownfield & Utility Properties. Competitively-bid turnkey systems Creating a pathway for further progress Opening new market segments Lowering origination & development costs Leveraging Solar Industry expertise & resources Minimizing participation & ownership risk

For Discussion Purposes Only 9 Selecting an Ownership Model Development, Financing, Contracting Installation, Operation, Maintenance Energy Output, System Performance Direct Ownership Hybrid Ownership Utility Ownership 3 rd party development / financing Turnkey Installation; system lease Energy purchase and/or services contract No development or financing No installation, operation, or maintenance No system performance responsibilities Capital requirements Competencies (incremental & lifecycle) Value (savings, revenues, risk, etc) Balancing risk, benefit & certainty Likely to be scalable or customizable Contract administration Defined value (space utilization, taxes) A basic transaction structure Lowest risk & engagement profile Site Owner Responsibilities Key Considerations

For Discussion Purposes Only 10 Conclusion Landfills are an abundant and proven source of development potential Many of the key enablers to tap this potential are in-place Utility ownership is one of the many ownership models available to you Selecting an ownership model is one of your first and most important decisions Contacting WMECo Carl J. Frattini- Director of Business Development