1. Southern California Public Power Authority Director of Resource and Program Development Ted Beatty September 29, 2015 1

2. Utility Procurement – What’s Next? Agenda 1.What is SCPPA? 2.Resource Development 2

3. SCPPA Joint Powers Authority formed in 1980 SCPPA Serves 12 Public Utility Members 3 SCPPA Membership AnaheimAzusaBanningBurbank CerritosColtonGlendaleLos Angeles PasadenaRiversideVernonImperial Irrigation District

4. SCPPA Member Service Territories

5. Benefits of SCPPA Sharing the costs & risks – Avoid Duplication; – Share Burdens; – Share Overheads; and – Share Pooled Resources “Cafeteria-Style” - ability to ‘opt-in’

6. Member Service Territories

7. Total Capacity = 1586 MW SCPPA Renewables by Resource Type

8. Current Resource Development 2015 Renewables RFP Solar: 210 MW Geothermal: 55 MW

9. Public and Private Development SCPPA members typically have a preference for ownership Tax exempt bonds can be used to fund projects Tax benefit for renewables caused shift to PPAs – Benefits from accelerated depreciation, PTC and ITC Public Power has low cost of capital – Prepaid energy at front end of PPA offers lowest cost renewable energy for our members Future: As tax benefits phase out, economics may shift to municipal bond financing

10. Future of Coal for SCPPA Members Coal Retirements – San Juan Unit 3 488 MW Retire by December 31, 2017 – Intermountain Power Plant 1,800 MW Contract ends in 2027 May terminate in 2025 Convert to natural gas?

11. Transformation of Resource Portfolio Mix

12. Energy Storage Majority of members are monitoring Few members are implementing – Imperial Irrigation District Energy storage option embedded in PPAs

13. Development Challenges  Lack of sufficient Transmission Infrastructure  Long Lead Time for new Project Development  Project Failures  Financing

14. Fully Resourced Utilities Increasing RPS to 50% Distributed Generation Energy Storage GHG Emissions and Clean Power Plan Today’s Policy Challenges

15. Questions or Comments? tbeatty@scppa.org tbeatty@scppa.org Thank You! 15