1. Phase 3 Solar Feasibility Study Findings and Recommendations
Dan Howell September 14, 2017

2. Anticipated Annual Production (kwh) Purchased Electricity (kwh)
Background
STRATEGIC PLAN
“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”
Generation
Projects Installed
MW’s Installed
Anticipated Annual Production (kwh)
Purchased Electricity (kwh)
Phase 1 Solar 1
0.5
1.3 million -
Phase 2 Solar 5
10.7 million
Fuel Cell 2
1.5
11 million (*at 85% Rated Output)
Total 8 7
23 million
100 million

3. Phase 3 Solar Feasibility Overview
TerraVerde Renewable Partners
Competitive selection via RFQ No. 2835
Board Approved Contract – August 17, 2016
Scope:
NEM 2.0 opportunities
RES–BCT evaluation
Battery Storage alternative
Economic analysis
Develop findings and recommendations

4. Industry Changes NEM 1.0 vs. NEM 2.0 Changing Load Profile
Removes Size Restrictions
Reduced $ Credit – No Credit for Non-bypassable Charges
Changing Load Profile

5. Industry Changes - Continued
Peak Period Tariffs
Current: 12 Noon – 6:00pm
Proposed: 4:00pm-9:00pm
Result
Reduced Value of Solar Generation
Grandfathering
CPUC Approved 10 Years for Existing Installations
Does not Apply to New “RES-BCT” Projects
Includes Additional Solar for Expansion of Existing Systems and is Applicable from the Initial Date of PTO

6. NEM 2.0 Project Opportunities
Expand Existing RWRF Solar Installations – 8.8 MW’s
Large Electrical Loads – Direct Load Serving
Available Acreage
Cash Purchase – Estimated Cost/Savings
MVRWRF
PVRWRF
SCRWRF
SJRWRF
Total
Estimated Capital Cost
$7,317,680
$11,098,960
$5,548,290
$4,480,500
$28.4 million
25 Years Net Savings
$3,440,911
$3,259,571
$3,379,142
$2,633,819
$12.7 million
Payback
19 Years
20 Years
17 Years
18 Years -

7. NEM 2.0 Project Opportunities - Continued
Cash Purchase – Estimated Cost/Savings
MVRWRF
PVRWRF
SCRWRF
SJRWRF
Total
Estimated Capital Cost
$7,317,680
$11,098,960
$5,548,290
$4,480,500
$28.4 million
25 Years Net Savings
$3,440,911
$3,259,571
$3,379,142
$2,633,819
$12.7 million
Payback
19 Years
20 Years
17 Years
18 Years -
Power Purchase Agreement $.0725/kwh
MVRWRF
PVRWRF
SCRWRF
SJRWRF
Total
25-Year Net Savings
$4,567,390
$4,791,319
$4,336,172
$3,437,059
$17.1 million
Positive Cash Flow
8 Years
10 Years
6 Years -

8. NEM 2.0 Project Opportunities - Continued
Cash Purchases vs. PPA
Why is a PPA more Favorable?
CSI Incentive Program Eliminated
30% Investor Tax Credit to Financiers
Economies of Solar Manufacturers and Providers also Providing PPA Contracts
District Costs for Site Preparation and Development can be Included

9. RES-BCT Project Opportunity
Large Number of Benefitting Accounts
2 Potential Host Locations
Well 84/North Trumble Road
SJVRWRF North (Recommended)
5 MW Installation
PPA Only
RES-BCT PPA Estimate - $.0725/kwh
SJVRWRF North
25-Year Net Savings
$8,061,595
Positive Cash Flow
16 Years

10. Battery Storage Opportunities
Rapidly Developing Technology
Benefits Accounts with Peak Time-of-Use Load Profiles
Analyzed Over 200 Accounts
7 Potential Locations – Shared Savings Agreement Model
Battery Storage Project Opportunities – Shared Savings Example
45/55 to 60/40 Share
4 Non-Solar Locations
3 Existing Solar Locations
Total
10-Year Net Savings
$708,918
$595,119
$1.3 million
* Recommend Pursuing Separately as this Market Evolves

11. Summary of Project Opportunities
Estimated PPA at $.07251/kwh
MVRWRF
PVRWRF
SCRWRF
SJVRWRF
SJVRWRF (North)
Totals
25-Year Net Savings
$4,567,390
4,791,319
4,336,172
3,437,059
8,061,595
25,193,535
Positive Cash Flow
8 Years
10 Years
6 Years
16 Years -
Site Preparation Costs
$1,718,030
$3,210,560
$835,890
$662,743
$1,694,640
$8,121,863
System Size
2.23 MW
3.16 MW
1.87 MW
1.5 MW
5.52 MW
14.3 MW
Tariff
NEM 2.0
RES-BCT

12. Next Steps Test the Market via RFP Process Confirm/Validate Economics
Approve and Authorize TerraVerde Contract - $169,211
Advance SCE Interconnect Application - $14,000
Concurrent Engineering Services Required
Confirm/Validate Economics
Evaluate Financing Strategies
Establish Baseline Pricing
Adjust Project Scope (as needed)
Present Findings and Recommendations to the Board

13. Conclusion – Estimated Project Schedule

14. Recommendations Approve and authorize the following:
Execution by the General Manager, or his designee, of the District’s standard form of contract with TerraVerde Renewable Partners for development of a Request for Proposals (RFP) advancing Phase 3 solar photovoltaic opportunities, in the amount of $169,211;
Administrative award and execution by the General Manager, or his designee, of the District’s standard form of necessary contracts and agreements for developing Phase 3 solar photovoltaic opportunities RFP; and
Appropriation in the amount of $220,000 to fund project costs including TerraVerde Renewable Partners contract, Southern California Edison utility interconnection application fees, and District labor costs.

15. Contact Information
Dan Howell
Sr. Director of Administration
(951) Ext. 6246