1. Making Green Tariffs Work for Your Customers
Sterling Root
Manager, Business Development

2. Agenda 1 2 3 4 5 Introduction What are Green Tariffs
Examples of Green Tariffs 4
Advantages & Challenges 5
Q&A
EDF Renewables - Green Tariffs
May 1, 2019

3. Introduction

4. 22 18.1 TWh 741 MW under construction 15 GW 10 GW 30+ 70 yrs $79 B
EDF GROUP
70 yrs
$79 B
annual
revenue
experience
EDF RENEWABLES
$867 M 22
operating counties
18.1 TWh
green
electricity
EBITDA
EDF RENEWABLES NORTH AMERICA
Distributed Solutions
Grid-Scale Power
Asset Optimization
15 GW
developed
10 GW
O&M contract
741 MW under construction
30+
years experience
© EDF Renewables / Confidential

5. Full Suite of Offerings
© EDF Renewables / Confidential

6. What are Green Tariffs?

7. Green Tariffs put the Utility at Core of Renewables Procurement
REC Riders
Community Solar
VPPAs
On-Site DG
Retail Choice
Large Plant Ownership
Green Tariffs
One-off renewables agreements
REC Purchases
Corporate Renewables Procurement Options with Utility at the Core
Other Corporate Procurement Options
Solar Loan Programs
Green Tariffs for C&I Customers “On-bill” renewable energy (incl. RECs)
Offered to C&I customers by their local utilities
Medium to long term multi-year contracts
Intended and available for repeated use
Must be approved by state-level utility regulators
Green Power Products
EDF Renewable Energy - Green Tariffs
November 2, 2017

8. No Standard Definition, but Common Elements
Resource
Contract Type
Rate Design
Specific
Sleeved PPA Customer contracts for output of specific facility owned by utility or via PPA “passed through” by utility
Rider Adder to existing tariff, sometimes combined with some form of credit for avoided energy
Existing Tariff
Renewables Charges
Avoided energy credit
Pool
New Tariff
Energy-related portion of rate structure “swapped out” for charges specific to the renewable energy procured and approved as new standalone or companion tariff
Subscription Program
Customer buys portion of output from single or pooled resources owned by or under PPA with utility
Other Considerations:
PPA vs. Utility Ownership
Who identifies resource (customer vs. utility)
New versus existing plants
Inclusion of both options in tariff (i.e., sleeved PPA for large offtake, subscription for smaller appetite)
Greater regulatory comfort with subscription compared to sleeved PPA
Design for particular customers vs. broad appeal
Availability to new vs. existing load
One-time PUC approval vs. one-time overall approval plus PUC approval for specific arrangements under tariff
EDF Renewable Energy - Green Tariffs
November 2, 2017

9. Green Tariff Trends and Examples
EDF Renewable Energy - Green Tariffs
November 2, 2017

10. Green Tariff Programs Across the United States
TVA C&I PPAs 2018
Google: 413MW
Facebook: 377MW
Walton EMC/Facebook: 202MW
© EDF Renewables / Confidential
Notes: World Resources Institute, Map for Corporate Buyers

11. Global C&I procurement 2018: 13.8GW
U.S. EOY 2018: 8.5GW of corporate PPAs
© EDF Renewables / Confidential
Notes: BNEF Corporate PPA Report Jan 28, 2019; BRC Corporate RE Report

12. Green Tariff Examples Illustrate Diversity of Program Design
Resource
Contract Type
Rate Design
Example Customers
Pooled
Uses Westar’s available purchased wind generating capacity until fully subscribed
Subscription
Customers can sign up for wind generation service for volume determined in consultation with Westar
Tariff
Fixed rate for wind gen service replaces base retail energy charges for purchased volume
Excess purchased renewables credited at retail energy rate
Specific
One 130 MW wind facility under PPA specifically for this tariff
Subscription
Customers of min total load size enroll specific locations into program
Tariff
Companion tariff to existing rate schedules
Provides credit for system power and new charge for renewables
Pooled or Specific
For subscription customers, pool of renewable resources
For special contracts, new or existing dedicated facility owned or under PPA w/ NVE
Subscription or Sleeved PPA
“Subscription” w/ NVE for 50/100% of energy (open to all C&I customers)
“Sleeved PPA” under special contracts (open to larger customers)
Rider
For “subscription” option, rider rate is off-the-shelf (and less base electric rates) for 2 yr term
For “sleeved PPAs” – rider and term negotiated and subject to PUC approval; rider rate floor set to rate under “subscription” option
Sources: Utilities’ tariff documentation; World Resources Institute, “Emerging Green Tariffs in U.S Regulated Electricity Markets”, May 2017
EDF Renewable Energy - Green Tariffs
November 2, 2017

13. Advantages and Challenges
EDF Renewable Energy - Green Tariffs
November 2, 2017

14. Advantages and Challenges of Green Tariffs
Why the interest?
Advantages
Challenges
Corporate Purchaser
Option in regulated markets
Greater “physicality” – closer link btw consumption and source; local resources
Scalable for different offtake appetite, depending on design
Run by utility, expert in energy procurement, reliability, safety
Renewables on utility bill
Energy price hedge
Availability of shorter and flexible tenors
Not always cost neutral or most economic method
Complexity of evaluating charges and credits
Need to wait for regulatory approvals for programs
Utility
Customer satisfaction / choice
Retention of existing load and attraction of new load
Sustainability leadership
Opportunity to create customized tariffs for leading customers and/or customer classes
Addition of committed renewables into generation portfolio
Avoidance of cost sharing
Regulatory approval – long lead times and many gates
Caps in program participation and resource availability can mean “going back to the well”
EDF Renewable Energy - Green Tariffs
November 2, 2017

15. Questions?

16. connect Sterling Root Thank you. Manager, Business Development
Distributed Solutions
(240)
At EDFR, we attribute much of our success to the opportunities we encounter in the confluence of economic, environmental, and social forces.
Approaching these opportunities responsibly is the lifeblood of our corporate culture.