| 1 I NTRO TO R ENEWABLE E NERGY P ROCUREMENT Boston Green Ribbon Commission Clean Power Working Group

| 2 CORPORATE SUSTAINABILITY & STRATEGY SERVICES Overview 1.Opportunities & challenges 2.Why renewables make sense in MA? 3.Procurement Pathways 4.Limitations in MA 5.Next steps? Conclusions?

| 3 CORPORATE SUSTAINABILITY & STRATEGY SERVICES Why Renewables Make Sense in MA: Falling Costs of Solar -66% SINCE % SINCE 2009 FALLING PRICES… …RAPID GROWTH 350% GROWTH IN 3 YEARS Source: GTM, DOE, REN21

| 4 CORPORATE SUSTAINABILITY & STRATEGY SERVICES Why Renewables Make Sense in MA: Falling Costs of Wind Source: U.S. Dept. of Energy

| 5 CORPORATE SUSTAINABILITY & STRATEGY SERVICES Solar PV installed on 90% of U.S. facilities; 165MW wind farm in Texas in late Agreed to buy more than 150 MW of wind and solar power, and to install 70 MW of solar arrays at CA facilities Amazon announced it will invest in a 150 MW wind farm to power its data centers in Indiana. GM plans to build a 34 MW wind farm to power manufacturing facilities in Mexico. Apple is investing $848 million in First Solar’s California Flats solar PV project. Google signed long-term contracts for 43 MW of wind energy to help power its CA headquarters. The Opportunity As a result, leading companies are making major investments in wind and solar power

| 6 CORPORATE SUSTAINABILITY & STRATEGY SERVICES The Challenge Complexity can prevent institutions from realizing the benefits of renewable energy

| 7 CORPORATE SUSTAINABILITY & STRATEGY SERVICES Inertia Status Quo Lack of expertise Complexity Lack of transparency Lack of standardization Legal and Accounting 50 State policies Value Proposition ROI LCOE Not always cheaper The Challenge New territory

| 8 CORPORATE SUSTAINABILITY & STRATEGY SERVICES Why Do Renewables Make Sense in MA? 1.High Energy Prices 2.Volatile Energy Prices 3.Falling Costs of Technology 4.Favorable Regulations 5.Aggressive Incentives Lawmaker investigating massive utility rate hikes My Fox Boston-Mar 27, 2015 Before the winter season, the state's largest electric companies, National Grid and Eversource, increased their rates 37- and 29- percent. Electric Customers Call For Action, Outraged Over Rate Hikes abc40-Feb 23, 2015 Customers were told they'd see a 29 percent increase in their bill this... any noticeable changes,” said Rhiannon D'Angelo fromEversource

| 9 CORPORATE SUSTAINABILITY & STRATEGY SERVICES Why Renewables Make Sense in MA: High Energy Prices Source: EIA

| 10 CORPORATE SUSTAINABILITY & STRATEGY SERVICES Why Renewables Make Sense in MA: Price Volatility Source: ISO-NE

| 11 CORPORATE SUSTAINABILITY & STRATEGY SERVICES Why Renewables Make Sense in MA: Market Growth Source: Mass. DOER

| 12 CORPORATE SUSTAINABILITY & STRATEGY SERVICES Why Renewables Make Sense in MA: LCOE Source: EIA Data

| 13 CORPORATE SUSTAINABILITY & STRATEGY SERVICES Why Renewables Make Sense in MA: Favorable Regulations Net Metering can allow generation to be credited at the full retail rate. Virtual net metering can allow this credit to be applied even to an off- site electric bill.

| 14 CORPORATE SUSTAINABILITY & STRATEGY SERVICES Why Renewables Make Sense in MA: Performance Incentives ~3x Value

| 15 CORPORATE SUSTAINABILITY & STRATEGY SERVICES Net Metering Limitations in Massachusetts Massachusetts Net Metering Class Distinctions Class NumberSize of Facility Class I Net Metering Facility Less than 60 kW Class II Net Metering Facility 60 kW to 1 MW Class III Net Metering Facility 1 MW to 2 MW

| 16 CORPORATE SUSTAINABILITY & STRATEGY SERVICES Net Metering Limitations in Massachusetts If ≤ 1 MW Then = Retail Value

| 17 CORPORATE SUSTAINABILITY & STRATEGY SERVICES Net Metering Limitations in Massachusetts Otherwise Wholesale Value

| 18 CORPORATE SUSTAINABILITY & STRATEGY SERVICES Net Metering Limitations in Massachusetts: SREC Factors = 90% = 100% = 70% & waitlist = 80%

| 19 CORPORATE SUSTAINABILITY & STRATEGY SERVICES What is a Renewable Energy Purchase? » What is the institution looking to claim? › Buying “green” power? › Supporting/enabling the development of renewable energy? » RECs only? › Yes if claiming environmental benefits. › Voluntary vs. compliance markets » Power supply contract? » Hedge contract? » Onsite but with REC sale? » GHG emissions?

| 20 CORPORATE SUSTAINABILITY & STRATEGY SERVICES The Options There are four main procurement pathways available for institutions in Massachusetts Implementation Support, Monitoring & Evaluation Opportunity Assessment & Site Selection Renewable Energy Strategy Development Procurement Design & Process Management REC Purchase Direct Investment (PPA or on-site) Competitive Supply Synthetic PPA

| 21 CORPORATE SUSTAINABILITY & STRATEGY SERVICES REC SREC e-e- $ Procurement Pathway 1: REC or SREC Purchase

| 22 CORPORATE SUSTAINABILITY & STRATEGY SERVICES e-e- $ e-e- PPA $ Procurement Pathway 2a: Direct Investment (Off-site)

| 23 CORPORATE SUSTAINABILITY & STRATEGY SERVICES e-e- $ e-e- e-e- Procurement Pathway 2b: Direct Investment (On-site)

| 24 CORPORATE SUSTAINABILITY & STRATEGY SERVICES e-e- $ e-e- Procurement Pathway 3: Competitive Supply Contract

| 25 CORPORATE SUSTAINABILITY & STRATEGY SERVICES e-e- $ e-e- $ $ Procurement Pathway 4: Synthetic PPA $

| 26 CORPORATE SUSTAINABILITY & STRATEGY SERVICES Policy Improvements? » Net metering carve-out for non- profits? » Increase net metering caps? » Increase virtual/aggregate net metering options? » Make it easier for competitive suppliers to provide renewable hedge? » Templates, guidelines?

| 27 CORPORATE SUSTAINABILITY & STRATEGY SERVICES » Determine the goal of the procurement. » Determine what staff resources and external expertise is needed to manage the project. » Determine the volume of kWhs to be purchased. » Identify appropriate stakeholders to involve, including in-house or external legal and accounting team. » Choose a procurement pathway. Conclusions? Next Steps?

| 28 CORPORATE SUSTAINABILITY & STRATEGY SERVICES Chad Laurent | General Counsel Office: Mobile: Contact Meister Consultants Group, Inc. 745 Atlantic Ave., 3rd Floor Boston, MA USA