1. Presented By: Diana Golis Energy Innovations Summit Small Hydro: Opportunities & Challenges Holy Cross Energy October 27, 2014

2. Service Territory Distribution, Transmission, and Generation Cooperative Power Supply: Public Service Company of Colorado Comanche 3 Power Plant Western Area Power Administration Biomass Coal mine methane Commercial Solar Community Garden Solar On-system hydro generators Net metering

3. Small Hydro Small Hydroelectric units on our system: “Run of River” or Streaming 16 systems Sized from 1 kW to 115 kW

4. Agricultural Installation

5. Municipal Installation

6. Recreational Installation

7. Educational Tools

8. Residential Installation

9. Local Renewables – Advantages Power Supply Contract Members direction - surveys Renewable energy programs since 1998 Power Purchase Agreement – Town of Basalt - 2010 Hydro Generation tariff 2012 Added Solar Generation to tariff rate in 2013

10. Renewable Energy Tariffs Net Metering – Annual true up Individual Locations – 120% of annual load Solar 500 kW size limit All others 50 kW size limit Credit based on consumer’s retail rate Generation - Monthly payments Individual Locations – not limited by load size Solar 50-500 kW max Hydro 100 kW max $0.08834/kWh for 2014. Annual 2% escalation

11. Renewable Energy Incentives REQUIREMENTS Total System Limit for Net and Generation Services System must be located within Holy Cross Energy’s service territory Must submit a Generator Interconnect Application Assign Renewable Energy Credits (RECs) to Holy Cross Complete Installation and have Holy Cross inspection and approval

12. Incentives (contd.) Standard Incentives (max 25 kW): 0-6 kW = $1,250/kW 6-12 kW = $1,000/kW 12-25 kW = $ 500/kW Non-Taxable entity: 40% of installed cost to maximum of $1,500/kW up to 25 kW http://www.holycross.com/pages/renewable-energy- rebates

13. Opportunities & Challenges Opportunities Hydro power – ability to run on our peak – evenings Mountainous area Irrigation opportunities Strongly support renewable energy Challenges Resort area – NIMBY Public lands – permitting issues – USFS, BLM

14. Questions? Contact: Diana L. Golis Sr. Manager Power Supply & Contracts dgolis@holycross.com 970-947-5471