1. Utility Carbon Program Snapshots DAN LIEBERMAN 3Degrees Inc. San Francisco, CA May 1, 2008 Utility Energy Forum 2008

2. A Presentation by Roseville Electric and 3Degrees, © 3Degrees Group, Inc. Privileged and Confidential Presentation Overview Why offer green options to utility customers Snapshots of three utility green pricing programs

3. A Presentation by Roseville Electric and 3Degrees, © 3Degrees Group, Inc. Privileged and Confidential Globally Sourced Carbon Offsets Resale and Wholesale Sales of Verified Emission Reductions Renewable Energy Certificates Resale and Wholesale Sales of Renewable Energy Certificates Utility Green Pricing Programs Green Power Program Design and Management © 3Degrees Group, Inc. Privileged and Confidential

4. A Presentation by Roseville Electric and 3Degrees, © 3Degrees Group, Inc. Privileged and Confidential Overview of Utility Green Programs Utility offers customers a renewable energy and/or carbon offset option Typical sources include new wind, solar, and biomass Typically sourced within the customer’s grid region Usually structured as fixed quantity (i.e. 200 kWhs per month) or fixed percentage of monthly use (i.e. 50%) Typically customers pay a premium – national average is about 1.5 cents/kWh Payments go to support new renewable resources Increasingly non-residential market

5. A Presentation by Roseville Electric and 3Degrees, © 3Degrees Group, Inc. Privileged and Confidential Why Should Utilities Offer Green Products? Your customers are concerned about the environment Some of your customers want to take action A utility can be part of the problem or part of the solution Customers can take action with you or without you A green option is a good complement to other optional programs such as energy efficiency and on-site solar 5

6. A Presentation by Roseville Electric and 3Degrees, © 3Degrees Group, Inc. Privileged and Confidential But Our Utility Already Has an RPS! Customers aren’t aware of your mandates: “In Wisconsin we estimate that no more than 25% of the general population is aware of the state’s public benefits program (Focus on Energy).” Green offerings help build public awareness about renewable energy Some customers want to take action and get recognition Even customers that do not participate in green programs want their utility to offer the option Supports the development of additional renewables

7. A Presentation by Roseville Electric and 3Degrees, © 3Degrees Group, Inc. Privileged and Confidential Carbon Value of Buying Renewable Energy Each MWh of renewable energy means one less MWh of non- renewable energy Renewable energy is zero net carbon emissions Retail buyers of renewable energy can “zero out” their electricity footprint by purchasing renewable energy, so long as it meets Green-e standards (e.g. no double counting) Supporters of the use of renewables as carbon offsets for electricity include: U.S. Environmental Protection Agency U.S. Department of Energy Green-e (the leading renewable energy certification program) World Resources Institute (leading developer of greenhouse gas accounting protocols)

8. A Presentation by Roseville Electric and 3Degrees, © 3Degrees Group, Inc. Privileged and Confidential We are silent partners. We build your brand, not ours. You have approval authority over all marketing content. We use a highly customized approach developed hand in hand with utility experts. We deploy national best practices marketing tools and techniques. Messages focus on positive attributes of renewable energy and are never negative toward traditional energy. We seek to make the program low risk to you. We build your customers’ brands. We make the renewable generators visible. We work to make each program among the very best nationally. Evaluation & analysis is the bedrock of continuous improvement. All good marketing begins and ends with the customer. 3Degrees’ Guiding Principles to Utility Partnerships

9. A Presentation by Roseville Electric and 3Degrees, © 3Degrees Group, Inc. Privileged and Confidential About Santa Clara Green Power Customer rate $15.00/MWh 8.7% participation 97.5% California Wind / 2.5% Local Solar Green-e Energy Certified® 2006 “New Program of the Year” DOE Award 2007 “Green Power Program of the Year” DOE/EPA Award 2008 “EPA Green Power Community” NREL Top 10 list for Customer Participation Rate (#3) Green Power Sales as a % of Total Retail Electricity Sales (#5)

10. A Presentation by Roseville Electric and 3Degrees, © 3Degrees Group, Inc. Privileged and Confidential What Works in Santa Clara Direct Mail Key Account Representatives

11. A Presentation by Roseville Electric and 3Degrees, © 3Degrees Group, Inc. Privileged and Confidential About Green Roseville 97.5% CA wind and 2.5% CA solar 1.5 cent per kWh premium 100% of monthly use for residents Block option for non-residential customers Approximately 4% customer participation rate Green-e Energy Certified® NREL Top 10 List: Green Power Sales as a Percentage of Total Retail Electricity Sales (#10)

12. A Presentation by Roseville Electric and 3Degrees, © 3Degrees Group, Inc. Privileged and Confidential What Works in Roseville Customer Service Representatives Green Ambassadors - The program deploys a “Green Ambassadors” team of over 30 volunteers that actively promote the program in the community. Green Roseville Green Ambassadors

13. A Presentation by Roseville Electric and 3Degrees, © 3Degrees Group, Inc. Privileged and Confidential About PaloAltoGreen Customer rate $15.00/MWh Over 20% participation – highest in nation 97.5% Wind / 2.5% Solar Blend Green-e Energy Certified® 2004 Green Power Leadership Award 2004 Acterra Business Environmental Network Environmental Entrepreneurship Award 2005 APPA DEED Award in 2005 2005 J. Robert Havlick Local Government Innovation Award 2006 EPA Green Power Community NREL Top 10 list for Customer Participation Rate (#1) Green Power Sales as a % of Total Retail Electricity Sales (#3)

14. A Presentation by Roseville Electric and 3Degrees, © 3Degrees Group, Inc. Privileged and Confidential What Works in Palo Alto o Community-focused messaging o Everything!

15. A Presentation by Roseville Electric and 3Degrees, © 3Degrees Group, Inc. Privileged and Confidential Introducing… PaloAltoGreen Biogas Voluntary renewable biogas retail program Will allow their natural gas customers to reduce their greenhouse gas emissions Utility will procure non-fossil biogas converted from biological sources such as manure, landfill gas, or biomass First of its kind program

16. A Presentation by Roseville Electric and 3Degrees, © 3Degrees Group, Inc. Privileged and Confidential Contact Information Dan Lieberman 3Degrees 6 Funston Avenue San Francisco, CA 94129 tel: 415-271-8553 dlieberman@3degreesinc.com