1. WEBINAR FOR BUSINESSES | 1 Introduction and Update for Prospective Business Customers Wednesday, November 4, 2015 11:00 am - noon

2. WEBINAR FOR BUSINESSES | 2 Webinar Objectives Provide an update on the Silicon Valley Community Choice Energy Partnership, current development efforts and next steps Offer a primer on Community Choice Energy, and what it means for commercial energy customers Engage prospective business customers and key commercial stakeholders

3. WEBINAR FOR BUSINESSES | 3 Community Choice Energy - Context IOU Investor-Owned Utility (e.g. PG&E) CCE Community Choice Energy (e.g. Marin Clean Energy) Muni Municipally-Owned Utility (e.g. CPAU/Palo Alto)

4. WEBINAR FOR BUSINESSES | 4 Business Customers and Impact 64%

5. WEBINAR FOR BUSINESSES | 5 Speaker Introductions Shawn Marshall, LEAN U.S. Founder and Executive Director Local Energy Aggregation Network, U.S. Don Bray, Joint Venture Silicon Valley Executive Director, Energy Initiatives Melody Tovar, City of Sunnyvale Regulatory Programs Division Manager, City of Sunnyvale SVCCEP Project Team Lead

6. WEBINAR FOR BUSINESSES | 6 Today’s Agenda 11:00amIntroduction and OverviewDon Bray, Joint Venture Silicon Valley 11:05Introduction to the Silicon Valley Community Choice Energy Partnership Melody Tovar City of Sunnyvale Regulatory Programs Division Manager 11:15Primer: Community Choice Energy Regulatory history How does CCE work? Where has this been done, and with what results? How is energy procured and priced? What are the costs and savings? opportunities? risks? Shawn Marshall LEAN Energy U.S. Executive Director 11:40Summary of Questions Frequently Asked by Commercial Energy Customers Don Bray 11:45Moderated Audience Q&AShawn Marshall, Melody Tovar, Don Bray 11:55Next Steps and Key ResourcesMelody Tovar, Don Bray

7. WEBINAR FOR BUSINESSES | 7 What is Community Choice Energy?

8. WEBINAR FOR BUSINESSES | 8 What is Motivating CCE? Communities adopting Climate Action Plans for Greenhouse Gas Reduction Transportation and Electricity Consumption are largest community contributors of GHG Transforming Electricity Sourcing is essential to reaching goals

9. WEBINAR FOR BUSINESSES | 9 Major companies in the area have similar motivations: 1) 2) 4) 5) 12) 18) 23) 2015 National Top 100 Intel Microsoft Apple Google Cisco Equinix Lockheed 100% of Energy from Renewables

10. WEBINAR FOR BUSINESSES | 10 Introducing SVCCEP - Silicon Valley Community Choice Energy Partnership Mayor Jim Griffith Mayor Rod Sinks Supervisor Joe Simitian Mayor John McAlister Sponsoring Agencies...

11. WEBINAR FOR BUSINESSES | 11 SVCCEP Priority Goals Offer renewable energy supply options that exceed the renewable content offered by IOU. Reduce GHG emissions to support local climate action goals. Provide competitive, potentially lower, electricity rates for all customers. Facilitate the use of clean technology, local clean power, and other energy innovations. Create and maintain a local public agency that is well managed and financially sustainable.

12. WEBINAR FOR BUSINESSES | 12 Interest has Grown 68% 32% Electricity Usage by Community 4 Million MWh Total

13. WEBINAR FOR BUSINESSES | 13 SVCCEP Milestones and Timeline We are Here Phase 1Phase 2Phase 3 I NITIAL S TUDY T ECHNICAL F EASIBILITY CCE P ROGRAM D EVELOPMENT CCE L AUNCH  ID potential agency partners  ID opportunities, costs, and risks  Investigate other CCEs  Inform community and gather feedback  Framework for next steps  ID partners & funding  Technical Study: load and rate analysis, economics, supply options, environmental outcomes  Community outreach & input  JPA Formation  Expand Outreach  Energy Svcs Pricing and Procurement  Enabling Ordinance  Implementation Plan to CPUC  Agmt with PG&E  Bridge financing to revenue  Staffing and Org setup  Energy and other Service Contracts  Customer notifications and service  Conservation & Renewables programming Fall 2015 Technical Study Completed Winter 2015 Communities Decide  JPA Spring 2016 Implementation Plan to CPUC Winter 2017 Program Launch! Summer 2016 Ramp-up Operations and Communications

14. WEBINAR FOR BUSINESSES | 14 Today’s Agenda 11:00amIntroduction and OverviewDon Bray, Joint Venture Silicon Valley 11:05Introduction to the Silicon Valley Community Choice Energy Partnership Melody Tovar City of Sunnyvale Regulatory Programs Division Manager 11:15Primer: Community Choice Energy Regulatory history How does CCE work? Where has this been done, and with what results? How is energy procured and priced? What are the costs and savings? opportunities? risks? Shawn Marshall LEAN Energy U.S. Executive Director 11:40Summary of Questions Frequently Asked by Commercial Energy Customers Don Bray 11:45Moderated Audience Q&AShawn Marshall, Melody Tovar, Don Bray 11:55Next Steps and Key ResourcesMelody Tovar, Don Bray

15. WEBINAR FOR BUSINESSES | 15 Authorized by CA Assembly Bill 117 in 2002 CCEs in 7 States California Illinois Massachusetts New Jersey Ohio Rhode Island New York Under Consideration: Utah, Delaware, Minnesota Community Choice Energy in the U.S.

16. WEBINAR FOR BUSINESSES | 16 History in California Authorized by AB 117 (Migden, 2001) Expanded by SB 790 (Leno, 2011)  Also required CPUC to open Rulemaking to adopt a Code of Conduct, associated rules, and enforcement procedures, to govern the conduct of an electrical corporation relative to the CCAs  D. 12-12-036 Community Choice operating in:  Marin County and neighboring jurisdictions  Sonoma County  City of Lancaster Now under study in numerous additional jurisdictions

17. WEBINAR FOR BUSINESSES | 17 Expansion in CA

18. WEBINAR FOR BUSINESSES | 18 State Law Elements of CCA Service Local governments participate by passing an ordinance and joining a Joint Powers Agency (JPA) Utility (PG&E) continues to provide consolidated billing, customer service, power line and grid maintenance CCA becomes default electric provider; Customers receive minimum 4 opt-out notices over 120 days, can return to PG&E service at any time. New CCA agencies register with CPUC, submit Implementation Plan Service Agreement with PG&E codifies CCA/utility operating relationship

19. WEBINAR FOR BUSINESSES | 19 How is a CCE operated and governed? Proposed as a Joint Powers Agency of multiple municipal members Key Functions of the JPA: o Power procurement/development o Rate design and setting o Legal/regulatory compliance o Ancillary energy programs o Customer engagement JPA Agreement specifies terms of municipal membership Governance proposed as one elected representative from each member city/county, plus alternate The Board meets monthly in a public setting. The Board sets JPA direction, approves procurement strategy and power contracts, sets rates and provides organizational oversight Specifically qualified staff run daily operations

20. WEBINAR FOR BUSINESSES | 20 How is CCE visible to customers? SCP Generation Charge

21. WEBINAR FOR BUSINESSES | 21 What offerings are available to CCE customers? Launch YearPower Supply Options 2010“Light Green” - 50% Renewable “Dark Green” - 100% Renewable “Sol Shares” - 100% Local Solar 2014 “Clean Start” - 36% Renewable “Evergreen” - 100% Renewable 2015 “Clear Choice” - 35% Renewable “Smart Choice” - 100% Renewable

22. WEBINAR FOR BUSINESSES | 22 Customer offerings are sourced to meet specific goals. 8 24 21 20 44 Electric Power Generation Mix* PG&E – Sonoma Clean Power Comparison *The generation data represents 2014 and is provided in the “Annual Report to the California Energy Commission: Power Source Disclosure Program,” excluding voluntary unbundled renewable energy credits. PG&E data is subject to an independent audit and verification that will not be completed until October 1, 2015. The figures above may not sum up to100 percent due to rounding.

23. WEBINAR FOR BUSINESSES | 23 Goals include reducing carbon emissions from electricity generation. Pounds per Megawatt-Hour 2013 PG&E / 2014 SCP Data 427

24. WEBINAR FOR BUSINESSES | 24 Generation Rate PG&E MCE Light Green MCE Deep Green E-1 (residential) $0.097$0.082$0.092 A-1 (small commercial) $0.102$0.082$0.092 E-19S (large industrial) $0.099$0.081$0.091 AG-1A (agricultural) $0.103$0.093$0.103 PG&E SCP Clean Start SCP Evergreen E-1 (residential) $0.097$0.071$0.106 A-1 (small commercial) $0.102$0.076$0.111 E-19S (large industrial) $0.099 $0.077$0.112 AG-1A (agricultural) $0.103$0.081$0.116 CCE Generation Rate Comparison (Per Kwh; As of May 2015)

25. WEBINAR FOR BUSINESSES | 25 Anticipated Rate Savings in the Near Term Illustrative Rate Comparison Sonoma Clean Power 2015 Commercial Com-1/A-1, 1500 kWh

26. WEBINAR FOR BUSINESSES | 26 Anticipated Rate Savings in the Near Term Illustrative Rate Comparison Sonoma Clean Power 2015 Commercial A-10, E-19 Examples

27. WEBINAR FOR BUSINESSES | 27 CCE Investment in Local Energy Development – Innovation and Opportunity Solar on a Brownfield Floatovoltaics Energy EfficiencyBattery Storage

28. WEBINAR FOR BUSINESSES | 28 The timing for CCE formation is good. Market Conditions/Utility Rate Trends Wholesale power and natural gas prices are at historic lows. Utilities are fully resourced through 2020 and thus excess power is available. Affordable financing available due to low interest rates.

29. WEBINAR FOR BUSINESSES | 29 CCE programs are demonstrating sound fiscal performance. Marin Clean Energy (MCE) and Sonoma Clean Power (SCP) Provide greener energy at competitive rates Provide enhanced energy programs Are fiscally sound MCE (Draft FY15-16)SCP (Draft FY15-16) Total Revenue$146M$165M Expenses$141M$149M Cost of Energy$129M$130M Cost of Administration4%3.5% Net Increase in Reserves$4.5M$16.9M v

30. WEBINAR FOR BUSINESSES | 30 Risks exist but can be mitigated. Risks related to CCE Financial risk Competitive and pricing risk /opt-out rates Market exposure Regulatory risk Political risk Assessment Report analyzes these risks and outlines potential risk-mitigation measures Effect on Business Probability of Event

31. WEBINAR FOR BUSINESSES | 31 Summary – Business Value Proposition CCE adds additional choices and opportunity for C&I customers CCEs established today should be able to compete on costs for the foreseeable future CCEs provide cost-effective renewable energy and reduction of Scope 2 GHG emissions CCE revenue can fund local private/public partnership activity, e.g. Feed-In Tariffs, PEV Infrastructure, Demand Response, Energy Conservation, Storage Great opportunity for local pilots and innovation

32. WEBINAR FOR BUSINESSES | 32 Today’s Agenda 11:00amIntroduction and OverviewDon Bray, Joint Venture Silicon Valley 11:05Introduction to the Silicon Valley Community Choice Energy Partnership Melody Tovar City of Sunnyvale Regulatory Programs Division Manager 11:15Primer: Community Choice Energy Regulatory history How does CCE work? Where has this been done, and with what results? How is energy procured and priced? What are the costs and savings? opportunities? risks? Shawn Marshall LEAN Energy U.S. - Local Energy Aggregation Network Executive Director 11:40Summary of Questions Frequently Asked by Commercial Energy Customers Don Bray 11:45Moderated Audience Q&AShawn Marshall, Melody Tovar, Don Bray 11:55Next Steps and Key ResourcesMelody Tovar, Don Bray

33. WEBINAR FOR BUSINESSES | 33 Some Business FAQs What energy options are available to commercial customers? Would service reliability be affected? How are Direct Access customers affected? What do commercial rate schedules look like? What elements of the utility bill are affected? Not affected?  Demand Charges?  Fees?  NEM? How are rates set? When? What steps are required to become a customer of the CCE entity?

34. WEBINAR FOR BUSINESSES | 34 Today’s Agenda 11:00amIntroduction and OverviewDon Bray, Joint Venture Silicon Valley 11:05Introduction to the Silicon Valley Community Choice Energy Partnership Melody Tovar City of Sunnyvale Regulatory Programs Division Manager 11:15Primer: Community Choice Energy Regulatory history How does CCE work? Where has this been done, and with what results? How is energy procured and priced? What are the costs and savings? opportunities? risks? Shawn Marshall LEAN Energy U.S. - Local Energy Aggregation Network Executive Director 11:40Summary of Questions Frequently Asked by Commercial Energy Customers Don Bray 11:45Moderated Audience Q&AShawn Marshall, Melody Tovar, Don Bray 11:55Next Steps and Key ResourcesMelody Tovar, Don Bray

35. WEBINAR FOR BUSINESSES | 35 Next Steps Technical Study & Program Development Stakeholder Engagement Agency Agreement & Preparation

36. WEBINAR FOR BUSINESSES | 36 Technical Study Scenarios 1.Match PG&E GHG-free content and start at 35% Renewable Portfolio Content 2.Exceed PG&E content, starting at 50% RP escalating to 75% by 2030, and ensure that GHG remains 20% below PG&E 3.Maximize GHG-free and RP content, while achieving rate parity with PG&E  Include 100% RP voluntary program in all scenarios  Utilize Product Content Category 1, 2 split of 75%/25% in all scenarios

37. WEBINAR FOR BUSINESSES | 37 Decision Making 12 partners Council/Board action -Adopt CCE Ordinance -Resolution to join JPA; approve final agreement -Approve cost-sharing contribution Target – action by March 31, 2016 -Council preparatory info by December 9, 2015 -First JPA meeting in April 2016 MT to simplify for Business Audience - good to communicate that board and council votes are happening and approx when, but addl details not salient to biz crowd

38. WEBINAR FOR BUSINESSES | 38 Community Engagement Community Meetings – 12 minimum Targeted Stakeholder Forum  November 17 th in Sunnyvale Business Engagement  Website – e-mail updates, comments  Business Forum Meeting – December  Business Groups, Chambers Grows in next phase Customer Noticing 60 days before service

39. WEBINAR FOR BUSINESSES | 39 www.SVCleanEnergy.org

40. WEBINAR FOR BUSINESSES | 40 Thank you.