1. Solar Initiative – Next Phase Opportunity
Dan Howell, C.P.M.
Senior Director of Administrative Services
April 7, 2016
Joe Mouawad, P.E.
Senior Director of Engineering

2. Renewable Project Portfolio Overview of RES–BCT Pro-Forma Example
Agenda
Renewable Project Portfolio
Overview of RES–BCT
Pro-Forma Example
Potential Siting Locations
Next Steps
STRATEGIC PLAN 2016 – 2018
Energy Independence: Plan and cost-effectively implement local renewable energy projects with sufficient generation to meet the District’s entire net energy demands while minimizing the District’s carbon footprint.

3. Renewable Generation Portfolio
Projects Installed
MW’s Installed
Anticipated Annual Production (kwh)
Purchased Electricity (kwh)
% Generated
Solar 6
5.5
12 million
Fuel Cell 2
1.5
11 million (*at 85% Rated Output)
Total 8 7
23 million
100 million
*23%
* RWRF renewable energy projects average an approximate 30% reduction in purchased energy

4. RES–BCT Overview
“Renewable Energy Self-Generation Bill Credit Transfer”
Generate Energy at One Site and Transfer $ to Another
Limited to Local Government
125 MW Cap Within SCE
95 MW’s Currently Available
Maximum Size = 5 MW’s Per Site
Up to 50 “Benefitting” Accounts

5. RES–BCT Overview (cont.)
Goal is to Maximize $ Credit By:
Identifying a High $ Host Account/Project Location
Generation $’s are Transferred Based on the Rate of the Host Account
Selecting Benefitting Accounts with Sufficient Time-of-Use Costs
Only Applicable to the Generation Component of a Bill
Other costs, such as T & D still apply
Accounts Can Be Adjusted Once Per Year

6. Contracting Alternatives
Power Purchase Agreement (PPA)
Direct Install
Little to No Capital Cost
Very High Capital Cost
Reduces Risk
Owner Assumes Risk
Reduced Construction Oversight
Construction Responsibility
Lower Net $ Benefit
Higher Net $ Benefit

7. Power Purchase Agreement
Pro-Forma Example
Power Purchase Agreement
Technical Assumptions
Total Net Benefit (25 years)
Total Project Size (MW, DC)
5.60 MW
Gross Project Benefit
$38,580,566
Yield (kWh/kW/yr)
2,180
Operating Expenses
($4,163,123)
Year‐1 Solar Production (kWh)
12,210,155
Power Purchase Agreement (PPA) Payments
($23,009,746)
System Cost ($/Wp)
n/a
Total Net Benefit
$11,407,697
Annual Degradation Factor
0.50%
Number of SCE Accounts 23
Net Operations Benefit Summary
Net Benefit
Year 1
$185,525
Avoided Cost & Revenue Sources
Years 1‐5
$1,141,444
Avoided Cost of Current Electricity ($/kWh)
$0.1052
Years 1‐25
Estimated Utility Cost Escalator (%)
2.00%
Environmental Benefits (per year)
PPA Assumptions
Sulfur Dioxide
SO2
77 lbs
PPA Rate
$0.0800
Oxides of Nitrogen
NOX
14,616 lbs
PPA Annual Escalator (%)
0.00%
Particulate Matter
PM10
513 lbs
Carbon Dioxide
CO2
16,410,449 lbs
Asset Management Services Assumptions
Volatile Compounds
VOCs
1,282 lbs
Asset Management Services ($/kWh) PPA
$0.0100
Water
H20
9,615,497 gallons
Asset Management Services Escalator (%)
3.00%

8. Pro-Forma Example (cont.)
Direct Install
Technical Assumptions
Total Net Benefit (25 years)
Total Project Size (MW, DC)
5.60 MW
Gross Project Benefit
$39,116,124
Yield (kWh/kW/yr)
2,180
Total Initial Project Cost
($12,766,320)
Year‐1 Solar Production (kWh)
12,210,155
Operating Expenses
($13,407,783)
System Cost ($/Wp)
$2.28
Total Net Operations Benefit
$25,708,341
Annual Degradation Factor
0.50%
Number of SCE Accounts 23
Cumulative Cash Position
Net Benefit
Years 1‐25
$12,942,021
Avoided Cost & Revenue Sources
Avoided Cost of Current Electricity ($/kWh)
$0.1052
Environmental Benefits (per year)
Estimated Utility Cost Escalator (%)
2.00%
Sulfur Dioxide
SO2
77 lbs
Average 25‐year REC Price ($/kWh)
$0.0021
Oxides of Nitrogen
NOX
14,616 lbs
Particulate Matter
PM10
513 lbs
Asset Management Services Assumptions
Carbon Dioxide
CO2
16,410,449 lbs
Asset Management Services ($/kWh)
$0.0220
Volatile Compounds
VOCs
1,282 lbs
Asset Management Services Escalator (%)
3.00%
Water
H20
9,615,497 gallons
Sources of Project Capital (Year‐1)
Primary Financing: NONE 0% $0
Client Contribution: Cash
100%
$12,766,320
Special Financing: NONE
Total Sources of Capital

9. Potential Siting Locations
Approximately 33 Acres Required for 5 MW’s of Solar
North Trumble Road Triangle Property – High Potential!
65 Available Acres Following Pond Construction
Existing Well with SCE Meter

10. Potential Siting Locations (cont.)
Perris Valley RWRF
Leased 45 Acres

11. Potential Siting Locations (con’t)
San Jacinto RWRF
Leased 190 Acres

12. Next Steps Perform Detailed Feasibility Study
TerraVerde Renewable Partners
ACWA Preferred Provider
Present Findings & Recommendations
Develop Project Solicitation Package
Leverage Experience Gained with Prior Solar Projects
Prequalify Solar Providers
Solicit Proposals and Negotiate Contracts
Award Contracts

13. Contact Information
Dan Howell, C.P.M.
Sr. Director of Administrative Services
Ext. 6246
Joe Mouawad, P.E.
Sr. Director of Engineering
Ext. 4463