1. Customer Dedicated Solar

2. Texas Community Solar
Community Solar is designed to provide access to solar energy for all customers, and to allow greater participation in renewable energy than what is provided by EPE system resources
Private solar is not an option for about 75% of residential customers
Renters and Homeowners with inadequate roof space (size, orientation, shading, etc.)
Due to financial limitations
Local solar PV projects are developed to supply the program, providing visibility and awareness

3. Program Basics Basics:
Target Residential and Small Commercial/local government)
Limit capacity to larger customers (1 MW)
Voluntary program
Portable within EPE service territory by jurisdiction
Key Program Considerations:
Easy to understand / easy to bill
Meet customer desires for options
Long-term contract options

4. Subscription Model
Customers select PV capacity blocks (1 kW minimum, 0.5 kW increments), limited by their energy requirements in peak solar months
Customer pays for solar capacity at a tariffed rate (e.g., $20 per kW monthly)
Price is based on the full cost of solar generation facility or facilities
Customer receives a generation credit for kWh produced by their capacity subscription (based on actual output of facility)
Credit reflects average EPE production cost (w/fuel)

5. Program Elements Contract length
Year-to-year contracting, customer cancel on annual anniversary
Multi-year contracts available with upfront payment at discounted rate*
Provisions for early cancellation of long-term
Contract Portability
Transferable between accounts in service territory, not assignable
Visibility in community (onsite education center, online tracking of system output, etc.)

6. Key Points
Community Solar customers continue to pay all grid related charges (T&D)
Community Solar subscribed energy acts as a long term hedge against fuel cost and other system production costs
Solar energy capacity costs may decline over time if additional facilities are constructed at lower cost, but will not increase
The generation credit will change over time with system capacity additions (set in rate cases) or due to fuel costs

7. Holloman AFB - Background
EPE and Holloman AFB engaged in discussions regarding an existing 10-year power contract approved by the PRC under EPE’s load retention rider
Holloman AFB elected to submit a sole source contract with EPE for a solar generation facility
EPE requested and received authorization for a CCN for a 5-MW solar facility that EPE would own and operate on Holloman AFB property

8. Holloman AFB - Contract
A retail sales agreement between EPE and Holloman AFB provides that Holloman’s retail load will be provided through –
An existing WAPA allocation
Purchase of the entire output of the Holloman solar facility
Retail service by EPE under the applicable tariff
Output of Holloman solar facility is priced at full cost of the facility, including financing costs
Holloman AFB receives a demand-based credit for allocated production costs