1. First Solar, Inc. Kingbird Solar Project Power Purchase Agreement
City Council – Agenda Item 13
September 9, 2013

2. Project & Contract Overview
20 MW (AC) single-axis tracking solar PV
To be located on 324 acres in Rosamond, CA
Site includes Kingbird B (another 20 MW project – output purchased by SCPPA)
Guaranteed commercial operation by January 2016 (Fiscal Year 2016)
Add approx. 5.5% RPS
PWP to pay for all energy “as available”
~60,000 MWh/year (1st year)
Expected output degradation ~0.5% per year
Price = $68.50/MWh through term of contract
Includes Resource Adequacy capacity
Option to Purchase
20 year term with option to extend by 5 years

3. Project Benefits RPS Category 1 resource relatively close to Pasadena
Feasible to operate and maintain if purchased

4. Project Benefits Portfolio Fit
Project size is a good match for PWP requirements
20 MW x 33% Capacity Factor
PV production is variable, but generally aligns well with PWP demand

5. Project Benefits Viability Several initial milestones already achieved
Site control, interconnection studies, CEC pre-certification, CEQA;
Experienced project developer (First Solar, Inc.) with several utility scale projects already operating/under construction
Solar PV is a proven technology

6. Project Benefits Value
Renewable energy, environmental attributes and system resource adequacy.
Facility purchase option at the 10th, 14th, or 18th contract year, or in the event of a default under the power purchase agreement.
Price is competitive with other offers for similar renewable products.

7. Risks Some risks Include:
Project development/construction failure or delay
Counterparty credit/default
Resource underperformance
Comparative price risk
Future or alternative resources may have lower prices
Contractual provisions attempt to mitigate many risks, e.g.:
Performance security
Liquidated damages
Guaranteed energy production
Although there is risk that future resources may have lower prices, this contract is also a hedge against future price increases and volatility

8. Price Comparison Renewable Energy Contracts Price Comparison
Resource Name/Type
Contract Execution
Contract Energy Price1 by Calendar Year ($/MWh)
2014
2015
2016
2017
2020
2025
Proposed Kingbird Solar
2013 -
$68.50
Silverado Solar
(+ $5.10/MWh for RA, if available)
2012
$77.34*
$78.50*
$79.68*
$83.32*
$89.76*
WM Biomethane
2011
$94.92
Sequent Biomethane
EDF Biomethane
$98.00
Milford Wind
2009
$70.94
$72.19
$73.45
$74.74
$78.73
$85.86
Ormat Geothermal Phase 2
2008
$82.01
$83.24
$84.49
$85.76
$89.67
$96.60
Chiquita Canyon LFG
2006
$65.25
Ormat Geothermal Phase 1
2005
$64.77
$65.74
$66.73
$67.73
$70.83
$76.30
Iberdrola Renewables
2003
$53.50
2013 Market Forecast (Brown Power)
$43.99*
$46,.19*
$48.50*
$50.92*
$58.95*
$75.23*
[1] Contract prices exclude costs of transmission, losses, and integration fees [price with * does not include RA capacity; all others do]

9. Renewable Portfolio Current Renewable Energy Portfolio Summary (GWh)
Calendar Year
2015
2016
2020
2025
Azusa Hydro 5
Iberdrola High Winds 14 -
Minnesota Methane LFG 42
Ormat Geothermal 16
Milford Wind Phase 1 11
Chiquita Canyon LFG 37
EDF Biomethane 13
Sequent Biomethane 29 30 38
Waste Management
Biomethane 41
Silverado Solar 32
Proposed Kingbird Solar 60 58 57
Total Renewable Supply
240
301
266
158
Retail Sales
1161
1168
1196
%Renewable
21.3%
25.8%
22.2%
13.2%
[1] A gigawatt-hour (“GWh”) is equal o 1,000 megawatt-hours (“MWh”)

10. Impact for a Typical Customer Using 500 KWh/Month
CURRENT
(without Kingbird)
FUTURE (2016 onward with Kingbird)*
Total $87.20
Total $87.72
Note: Current total bill includes all existing renewable contracts
*Assumes other charges in the electric bill remain the same as current bill

11. Fiscal Impact - Cumulative
Before Kingbird:
After Kingbird:
Cumulative net impact of all existing renewable contracts in the energy portfolio:
Approximately $7.3 million per year
Approximately 0.62 cents per kWh
Cumulative net impact of all renewable contracts in the energy portfolio:
Approximately $8.5 million per year
Approximately 0.73 cents per kWh starting in January 2016
Cumulative net impact will increase by approximately:
$1.2 million per year
0.11 cents per kWh
$0.52/month for a 500 kWh average customer

12. Thank You ~ Questions?
Back Up Slides

13. Appendix – RPS Portfolio After Kingbird

14. Selection Process
Project was offered July 24, 2013 into, and selected as part of, the open SCPPA Request for Proposal process.
Determined by PWP to be one of the “best fit/least cost” resources from among almost 300 offers.
Also determined to be exempt from Pasadena’s competitive bidding rules as a contract for professional or unique services, and as a contract potentially relating to the acquisition of real property (includes a purchase option).

15. First Solar Experience
SOME COMPLETED FIRST SOLAR FACILITIES
Project
Location
Project Size
in MW (AC)
Power Purchase Agreement (PPA)
Third Party Owner/ Purchaser
Blythe
Blythe, CA 21
SCE
NRG Energy, Inc
Copper Mountain 1
Boulder City, NV 58
PG&E
Sempra USG&P
Cimarron
Colfax County, NM
Tri-State
Southern Company & Turner Renewable Energy
Silver State North
Primm, NV 50
NV Energy
Enbridge, Inc
Roadrunner Santa Teresa
Santa Teresa, NM 20
El Paso Electric
NRG Energy
Sarnia
Sarnia, Ontario, Canada 80
Ontario Power Authority
Enbridge

16. First Solar Experience (cont.)
SOME FIRST SOLAR FACILITIES UNDER CONSTRUCTION
Project
Location
Project Size
in MW (AC)
Power Purchase Agreement (PPA)
Third Party Owner/ Purchaser
Expected Substantial Completion
Topaz
San Luis Obispo, CA
550
PG&E
MidAmerican
2014/2015
Desert Sunlight
Desert Center, CA
PG&E/SCE
NextEra/GE/ Sumitomo
Agua Caliente
Yuma County, AZ
290
NRG/ MidAmerican
2014
AV Solar Ranch One
Los Angeles County, CA
230
Exelon
2013
Imperial Energy Center South
Imperial County, CA
130
SDG&E
Tenaska
Copper Mountain 2
Boulder City, NV 58
Sempra USG&P
2015[2]
PNM2 NM 22
UOG
PNM
Walpole
Ontario, Canada 20
OPA
GE/Alterra
Belmont
Amherstburg 1 10
DEWA
UAE 13
Campo Verde
139
N/A
Macho Springs
Deming, NM 50
El Paso Electric
Maryland Solar
Maryland
FE Solutions
Lost Hills
Kern County, CA 32
2015/2016
Stateline
San Bernadino County, CA
300
SCE
2016
Silver State South
Clark County, NV
250
AGL[6]
Australia
159
AGL
2015
Cuyama
San Joaquin Valley, CA 40