Solar Photovoltaic Renewable Energy Initiative – Phase II Joe Mouawad, P.E. Senior Director of Engineering Greg Kowalski, P.E. Senior Civil Engineer March 16,

Background 2 Solar Photovoltaic renewable energy generating facilities at existing load serving facilities o Regional Water Reclamation Facilities o Desalination Facilities 1 Megawatt per site, 5 sites Offset energy usage, average 30% reduction Design/Build Delivery Construction o Cost - $14.6M  Stronghold Engineering  SolarCity Corporation o Change Orders - $ 22k net o Substantially complete CSI Reservation – May 2016 o Total Incentives - $6M Regional Water Reclamation Facility Location Map Moreno Valley RWRF San Jacinto Valley RWRF Temecula Valley RWRF Sun City RWRF and Desalter Perris Valley RWRF

CSI reserved at Step 9 of 10 Steps (all facilities) o Step 9 – 11.4 cents per kWh All steps currently exhausted Estimated Incentives o Approximately $1.2 M per year o Total all sites  $6 Million 3 California Solar Initiative (CSI) California Leads the Nation - 479,507 solar projects - 3,790 megawatts installed - $5.32 avg cost/watt <10kW - $4.29 avg cost/watt >10kW data sources: sources

Cost/Benefit Analysis 4 Year kWhAverage UtilityEstimatedOperationCSI Incentives ProductionRates w/4%Net Step 9Annual SavingsCumulative Degradation RateAnnualCost Savingsandper kWh producedO&M Costs IncludedSavings Set at.5% AnnuallyEscalation Repair Costsfor 5 years 1 10,971,607 $ $ 1,169,480 $ - $ 1,238,694 $ 2,408, ,916,749 $ $ 1,210,178 $ 152,829 $ 1,232,501 $ 2,289,850 $ 4,698, ,862,165 $ $ 1,252,292 $ 153,672 $ 1,226,338 $ 2,324,959 $ 7,022, ,807,855 $ $ 1,295,872 $ 154,539 $ 1,220,207 $ 2,361,540 $ 9,384, ,753,815 $ $ 1,340,969 $ 155,433 $ 1,214,106 $ 2,399,642 $ 11,784, ,700,046 $ $ 1,387,634 $ 156,353 $ - $ 1,231,281 $ 13,015, ,646,546 $ $ 1,435,924 $ 157,301 $ - $ 1,278,623 $ 14,294, ,593,313 $ $ 1,485,894 $ 158,277 $ - $ 1,327,617 $ 15,621, ,540,347 $ $ 1,537,603 $ 159,283 $ - $ 1,378,320 $ 17,000, ,487,645 $ $ 1,591,112 $ 160,319 $ - $ 1,430,793 $ 18,430, ,435,207 $ $ 1,646,483 $ - $ 1,646,483 $ 20,077, ,383,031 $ $ 1,703,780 $ - $ 1,703,780 $ 21,781, ,331,116 $ $ 1,763,072 $ - $ 1,763,072 $ 23,544, ,279,460 $ $ 1,824,427 $ - $ 1,824,427 $ 25,368, ,228,063 $ $ 1,887,917 $ - $ 1,887,917 $ 27,256, ,176,922 $ $ 1,953,616 $ - $ 1,953,616 $ 29,210, ,126,038 $ $ 2,021,602 $ - $ 2,021,602 $ 31,231, ,075,408 $ $ 2,091,954 $ - $ 2,091,954 $ 33,323, ,025,031 $ $ 2,164,754 $ - $ 2,164,754 $ 35,488, ,974,905 $ $ 2,240,087 $ - $ 2,240,087 $ 37,728,490 TOTALS 209,315,270 $ 33,004,650 $ 1,408,007 $ 6,131,846 $ 37,728,490 Summary Initial EPC Cost (Phase 2) $ 14,603,357 Program Capital Costs $ 21,845,813 CSI Incentives $ 6,131,846 Net Metering Savings $ 33,004,650 Simple Payback 12 Estimated Average Annual Costs Savings = $1.7 M Estimated 20-yr Cumulative Savings = $ 37.7M Estimated Payback at 4% SCE Rate Escalation = 12 yrs

Best Value Selection 5 Contractor prequalification process o Sunpower, Solar City, Chevron Energy, Borrego Solar, Stronghold/Sun Edison, Synergy Electric/Marathon Electric Design/Build Delivery Design/Build Proposals Evaluation Criteria for Best Value Selection Simultaneous Negotiations for all sites o SolarCity and Stronghold Engineering Technical Design and Construction Expertise Design-Build Cost Proposal and O&M Service Life Cycle Cost, System Performance, and Guarantee Safety Record SCE Expertise and Coordination Construction Schedule Performance Guarantee Terms Design-Build Team Personnel & Organization Proposed Work Plan and Schedule

Design-Build Contracts 6

Implementation Process 7

Design-Build Process and Partners 8 RFP Construction Grade Pads Design-Build Solar Systems D-B Contracts Design-Bid Grade Pads Design-Bid Grade Pads Commissioning Design Construction Green Tag Power Systems Services

Inspection and Sign-offs 9 Applications o NEM/Rule 21 Agreements o Generating Facility Interconnection Agreement (GFIA) o Interconnection Facility Financial Ownership Agreement (IFFOA) “Green Tag” (3 rd party independent inspection) SCE Inspection SCE Permit to Operate (PTO) TVRWRF – Testing of Breakers

SCE Coordination 10 Developed Partnership o Weekly coordination o Account Representative Interface Challenges with SCE o Multiple Departments o No concurrent work allowed  Activities finish to start o Extended review and approval periods SCE and EMWD Partnership

Project Status 11

Improvements Required - All Sites 12 Electrical o Underground Electrical Ductbank and Manholes o Switchgear, Transformers and Switchboards o Existing Switchgear Modifications o Cable and Cable Tray o Inverters o Concrete Equipment Pads o Weather Station o Control Scheme Programming Solar Array and System o Structural Driven Pier Foundation o Structural Single Axis Tracker System o Module Installation o Communication and Control Integration o Preliminary Functional Operation Start- up, Testing and Pre-commissioning PVRWRF – String Inverter

Perris Valley RWRF 13 Status o Green Tag: February 29, 2016 o Conditional PTO: March 1, 2016 o System energized o Remaining work  Install Net Generation Output Meter at Fuel Cells  Final SCE Permit to Operate  Punch list Items  As-built Drawings  CSI Incentive Claim PVRWRF – Equipment Pad

San Jacinto Valley RWRF 14 Status o Green Tag: January 22, 2016 o PTO: February 11, 2016 o System energized o Remaining work  Punch list Items  As-built Drawings  CSI Incentive Claim SJVRWRF – Solar Array

SJVRWRF – Solar Array Looking South 15 Single Axis Tracking System Size – 1 MW 3,680 – 315W SolarWorld Panels 31 String Inverters 8.3 Acres SJVRWRF – Solar Array

Moreno Valley RWRF 16 Status o Green Tag: March 3, 2016 o Conditional PTO: March 11, 2016 o System energized o Remaining work  Install Net Generation Output Meter at Fuel Cells  Final SCE Permit to Operate  Punch list Items  As-built Drawings  CSI Incentive Claim MVRWRF – Solar Array Distribution Panel

Sun City RWRF 17 Status o Arrays complete o Ductbanks complete o Remaining work  Install Electrical equipment »Switchgear, bud duct and switchboard  Install 12kV Cable  Modify existing 12kV Switchgear and Breakers  Control Programming/System Integration  Functional Operational Startup and Testing  Pre-commissioning  Green Tag  SCE Inspection  Install Net Generation Output Meters  SCE Permit to Operate  Punch list Items  As-built Drawings  CSI Incentive Claim SCRWRF Pier Installation

Status o NETA Testing ongoing o Remaining Items  Control Programming/System Integration  Functional Operational Startup, and Testing  Pre-commissioning  Green Tag  SCE Inspection  Install Net Generation Output Meters  SCE Permit to Operate  Punch list Items  As-built Drawings  CSI Incentive Claim Temecula Valley RWRF 18 TVRWRF Chord and Bracket Installation

TVRWRF Solar Array Lot A 19 Fixed Array System Size – 1 MW 3,576 – 310W Trina Solar Panels 29 String Inverters 25-degree tilt (fixed) 4 Acres

TVRWRF Solar Array Lot E 20

Stronghold Engineering o Original Contract Amount$ 11,857,741 o Change Orders – to date(NET)$ 76,467 o Total Contract Amount – to date$11,934,208 SolarCity o Original Contract Amount$2,745,616 o Change Orders – to date (NET)$ (54,255) o Total Contract Amount – to date$2,691,361 Combined Total o Total Original Contract Amounts$14,603,357 o Net Change Orders $ 22,212 (0.2%) o Total Contract Amounts$14,625,569 Design-Build Contract Summary 21

Completion Schedule 22 FacilityGreen TagSCE Permit to Operate -San JacintoJanuary 22, 2016February 11, Perris Valley February 29, 2016 March 11, Moreno Valley >Main Facility March 3, 2016 March 11, Temecula Valley March 25, 2016 April 8, Sun City/DesalterApril 1, 2016April 15, CSI DeadlineMay 25, Final Contract Completion May-16 Staff incorporated lessons learned from the Administrative Facility Solar Project and since has completed five concurrent sites with added complexity, twice the size, and under two headings Facility Online – Feb. 11, 2016 Facility Online – Mar. 1, Conditional PTO Facility Online – Mar. 11, Conditional PTO

Summary and Conclusions 23 Design/Build is an effective delivery method for this type of program. Five concurrent construction sites delivered on schedule within the CSI timeline. Greater latitude provided to design/build firms which allowed for innovation and efficiency. Construction change order rate extremely low at 0.2% or original contract amount. Collaboration with all stakeholders was effective and resulted in excellent budget and schedule performance.

24 Contact Information EASTERN MUNICIPAL WATER DISTRICT Joe Mouawad, P.E. Senior Director of Engineering (951) Ext Greg Kowalski, P.E. Senior Civil Engineer (951) Ext