1. 2014 Energy & Sustainability Conference Commonwealth of Virginia Solar Energy Goals For State Facilities Ken Jurman Department of Mines, Minerals and Energy

2. 2014 Virginia Energy Plan Accelerate the Development of Renewable Energy Sources in the Commonwealth to Ensure a Diverse Fuel Mix and Promote Long-Term Economic Health Public Facilities 15 05 Private Facilities Facilitate partnerships between Virginia’s electric utilities, government and private generation developers to install: 15MW of solar energy generation at state and local government facilities by June 30, 2017. 15MW of solar energy generation at commercial, industrial, and residential facilities by the same target date of June 30, 2017.

3. Current State–Owned Solar Installations LocationKilowatts DGS Virginia Distribution Center225 DGS 14th St. Parking Deck181 Tidewater Community College35 DGIF Fish Hatcheries32 UVA Facilities Management Bldg.15 Old Dominion University125 Va. Tech Perry St. Parking Deck102 VCU W. Broad Parking Deck155 VCU N-Deck parking garage140 James Madison University15 TOTAL: 1025

4. 2014 Virginia Energy Plan Accelerate the Development of Renewable Energy Sources in the Commonwealth to Ensure a Diverse Fuel Mix and Promote Long-Term Economic Health Public Facilities 15 05 Private Facilities Facilitate partnerships between Virginia’s electric utilities, government and private generation developers to install: 15MW of solar energy generation at state and local government facilities by June 30, 2017. 15MW of solar energy generation at commercial, industrial, and residential facilities by the same target date of June 30, 2017.

5. 2014 Energy & Sustainability Conference Solar Procurement Target Derive 8% of the Commonwealth’s electricity usage from solar energy within the next three years. 27,000 homes 211,992 MWh Annually 110 Megawatts Total Dominion Virginia Power Services Territory only

6. Solar Procurement Target 110MW 82.5MW 27.5MW 75% Utility-Scale 2 Megawatts and up Developed/owned by Dominion On state property or off DMME will work with Dominion to identify suitable sites 25% Distributed Generation Less than 2 Megawatts Behind-the-meter Developer/owned by 3 rd party non-utility developer DMME will work with 3 rd party developers to identify suitable Commonwealth-owned sites

7. Solar Procurement Through 3 rd Party PPAs 110MW 27.5MW Agency will enter into a contract with the 3 rd party private developer 3 rd party installs, owns and maintains system for duration of the PPA System must be: Installed on or adjacent to load Connected behind the meter Cannot exceed minimum load

8. Solar Procurement Through 3 rd Party PPAs 110MW 27.5MW DMME partnering with Office of P3 and JMU to identify initial 5-6 sites for June RFP Identify and Classify: Open land for ground mount systems - $ Large rooftops < 5 years old - $$ Parking lots for shade structures -$$$

9. Solar Procurement Through 3 rd Party PPAs 110MW 27.5MW Incentives to ensure cost parity with current contract electricity rate Annual escalator < 10 year historical average Energy savings over long term

10. 2014 Energy & Sustainability Conference Solar Public Private Partnership

11. 2014 Energy & Sustainability Conference Solar Public Private Partnership BENEFITS

12. Solar Public Private Partnership Energy Management Structure DMME manages the COVA energy contract with Dominion DMME can assign costs and credits to particular accounts 82.5 MW Dominion-Owned Solar 20 MW from the Remington Project DMME and Dominion signed addendum to contract 82.5 MW Dominion-Owned Solar 27.5 MW 3 rd -Party PPAs 20 MW from the Remington Project

13. What about Agencies NOT in Dominion Territory? Next phase of the Commonwealth Solar Initiative Opportunities for similar contract arrangement with Appalachian Power Explore opportunities in electric cooperative service areas

14. Questions?