1. Distributed Generation at PSE Heather Mulligan, Manager Green Power Program NWEC Annual Meeting, Boise ID May 31, 2013

2. Overview PSE Headquarters - Bellevue, Washington Service Area - 6,000+ square miles in 11 Counties Electric - Customers 1.05 million Natural gas - Customers 725,000

3. 3 Local Energy Development * *  Dairy Digesters  Landfill Gas  Waste Water  Micro Hydro  Small Wind  Public & Community Solar >20 kW * Gas to Pipeline

4. 4 Green Power Program Connecting Farmers to 35,000 Customers Farm Power – Rexville, WA Qualco Energy – Monroe, WA Tails-A-Wagging – Bellingham, WA AlpineX – Olympia, WA

5. Local Resources  PSE & Customers- supporting local Dairies  VanderHaak Dairy – Lynden  Werkhoven Farm – Monroe  Beaver Marsh Farms – Skagit  Harmony Dairy - Skagit  MJD Farms – Lynden  Ritter Dairy - Enumclaw  Edaleen Dairy – Whatcom  Van Dyk S. Holsteins - Lynden

6. 6 6 Net Metering Growth

7. Looking Forward 7 New Green Electricity Product Fixed 15-year price subscription for electricity component Partial hedge Connection to specific local resource such as landfill project or anaerobic composter