SOLAR*CONNECT COMMUNITY SM David Donovan, General Manager, Customer and Community Service March 1, 2016

2 BACKGROUND 2 Goal Create an optional solar program in Wisconsin that meets the needs of customers and communities and minimizes impacts on non- participants Guiding Principles Offer our customers and communities more services and options that they want and value Become more engaged with our customers, communities and policymakers Comply with statutes and regulatory requirements Leverage experience from other Xcel Energy companies

3 WHERE WE ENDED UP 3 Community solar pilot program Total program capped at 3 MW Offered through several regional sites 1 MW per site and per distribution feeder Up front customer subscription payments Bill credits for 25 years Solar procured by PPA through RFP Revenue neutral for the Company Only program participants pay for cost of Solar*Connect Community

4 4 SOLAR*CONNECT COMMUNITY Easy. Quick, simple one-time enrollment Customers claim RECs which are then retired on behalf of the customer Flexible. Up to 100% of average annual use Minimum: 200 watts Maximum: 400 kilowatts Local. Solar from locally-sourced arrays

5 5 HOW DOES IT WORK? 1.Choose amount of solar subscription 2.Purchase subscription with a one-time enrollment cost 3.Solar bill credit appears monthly for next 25 years

6 6 PRICING Subscription Price $1780 per kW $ 356 per 200 Watts (minimum size) Deposit $200 per kW (DC) Solar Credits (2016) Residential, Farm, Small Comm. Rate $0.074/kWh Demand Rate $0.069/kWh

7 SOLAR CREDIT 7

8 8 EXAMPLE Subscription Size15 kW Cost$26,700 Deposit($3,000) Balance$23,700 Solar Production – 15 kW (est.)19,275 kWh* Solar Credit – Year 1 (est.)$1,331* Payback (est.)17-21 years* * Using these estimates subscribers can anticipate net solar credits in excess of subscription costs over the life of the contract. Town Hall – Demand Rate

9 SOLAR GARDEN SITES 9 Eau Claire County La Crosse County

10 TIMELINE May 27, 2015 Written approval received July 1 – August 28, 2015 RFP for up to 3 MW of solar September 2015 – February 2016 PPA Negotiations, Marketing Prep Late February 2016 Subscription pricing available Customer signup begins February-April 2016 Early Subscription Drive Town Halls – “Solar Power Hours” Late 2016 Solar arrays operational

11 63% Carbon-Free by 2030 Fuel Diversity to Manage Risk CLEANER ENERGY FUTURE

12 RESOURCES