1. Distributed Energy Resources An LDC Perspective May 16th, 2016

2. Who is PowerStream? Leading energy company >$1.3 B in assets 365,000 customers 854 sq. km 1 million people owned by Barrie, Markham and Vaughan 2nd largest municipally owned Local Electric Distribution Company in Ontario 500 employees Innovation Award 2016

3. Changing Face of the Utility 3 PowerStream’s Strategic Vision By 2020, we will build on our core electricity distribution business to become Ontario’s premier integrated energy services provider “WHERE ENERGY IS FOUND FIRST IS IN THE MINDS OF MEN”

4. Power. House. 4

5. Behind the meter solution Solar Integration Grid Interactive Outage Management Battery EMS Residential Solar Storage 5 IESO Conservation Fund for 20 homes: $500,000 grant to support pilot for 20 targeted homes in PowerStream territory 5 KW solar array; Sunverge unit- 6.8 KW/11.4 KWH battery and EMS Aggregation of distributed assets to create a Virtual Power Plant Technology partner: Sunverge

6. Key Pilot Objectives 6 Business Model Definition – Customer vs Utility Ownership, Financing models, etc. Required Processes To Support Business Model Implementation - Internal and External Technology Evaluation – Operational flexibility, installation, O&M, etc. Customer Value – Dispatch model, bill reduction, value of resiliency Grid Value – Capital deferral, congestion management, CDM benefit, Ancillary Services 1 2 3 4 5

7. Customer Offering and Value 7 1 Customer Signup Up front payment of $3500 $20 monthly service fee 5 year term Utility owns, maintains and operates the asset 2 Install And Commissioning 3-4 day install System commissioned and dispatch model programmed Ongoing O&M performed 3 Customer Bill Reduction System will offset significant load each year New bill = 39% savings with added resiliency Customer payback in 5 years

8. Customer Acquisition Strategy 8  System benefits: customers on feeders with congestion, voltage, resiliency, issues  Energy profiling: identify load profiles that match well with system  Physical Limitations: requirements for solar, roof configuration  Customer Demographics: income, age

9. Customer Enrollment 9 7 customer events 112 registered guests 52 deal memos signed with $1000 cheques Overwhelmingly positive response to deal offering when presented in person  20 customers enrolled in 30 days

10. 10 Program Benefits: Immediate backup power in case of an outage Power your home with clean energy Reduce your electricity bill, up to $100 per month! Program Details: Upfront payment towards installation $3500 Monthly service fee $20 over 5 year contract Available to only 20 PowerStream customers Introducing POWER.HOUSE. Power your home with solar… even after the sun goes down!