1. Vermont Public Service Board October 15, 2010 Vermont RPS Study Overview

2. Vermont’s Existing Resource Mix (2009) v Statewide energy usage= 5,860 GWh v HydroQuebec = 30% v Vermont Yankee = 38% –VY license expires 2012 v In-state hydroelectric = 11% v In-state new renewables = 2% v System mix = 18% 2

3. Vermont’s Existing RPS v 2005 - Legislature enacted Renewable Portfolio Standard –Each utility’s incremental load growth (from January 1, 2005) must be met through new renewables. –Maximum of 10% –Can meet with RECs, or energy sources that keep RECs v Becomes effective only if goals of SPEED program are not met 3

4. Vermont SPEED Program v Between January 1, 2005 and July 1, 2012 total statewide growth in electric retail sales, and at least 5% of 2005 total sales, must be met through new renewables –Cap of 10% v Creation of SPEED Facilitator v 2017 state-wide goal = 20% of load to be met through new renewables 4

5. Standard-Offer Program (Feed-in Tariff) v 2009 Legislature adopted cost-based standard offer program v Required SPEED Facilitator to offer standard contract to renewable facilities of 2.2 MW or less v 50 MW cap – Board established 12.5 MW technology subcaps v Power purchased would be shared with all Vermont utilities 5

6. RPS Study v 2010 Legislature passed Act 159, requiring PSB to develop a report on Vermont renewable policy by October 1, 2011 v Same legislation removed the 200 MW cap on eligible hydroelectricity v Requires that the PSB address at least the following issues: 6

7. Study Requirements (1) v Should VT amend or replace the 2005 RPS or should the SPEED goals/requirements be revised? v Should voluntary SPEED goals be mandatory? v The economic and environmental costs and benefits of adopting an RPS, or mandatory SPEED requirements, at 25, 50, 75, and 100 percent? v The effect of an RPS or mandatory SPEED goals on development of in-state resources if out-of-state resources with capacities in excess of 200 MW are considered renewable? 7

8. Study Requirements (2) v Analysis of RPS statutes and rules in other jurisdictions and how VT RPS or mandatory SPEED goals would integrate with these programs v Should definition of renewable resources include tiers or classes? v Consideration of 3 rd party certification that a resource is renewable v Consideration of 3 rd party certification that a renewable resource has low environmental impact 8

9. Study Requirements (3)  Whether an RPS or mandatory SPEED goals should include purchase of energy efficiency resources and appropriate means of verifying savings?  Whether the definition of resources that count towards SPEED goals should be revised with respect to the 2017 goals?  Proposals for a Vermont RPS and revised goals and requirements for the SPEED program 9