1. CCU Update integrated resource plan May 17, 2016

2. Presentation Outline Overview GPA Integrated Resource Plan
Key Assumptions
Comparative Analysis of CC Units
Rate Impact
GPA Implementation Plan
2016 Integrated Resource Plan
Procurement Strategy
Financing Options
EPA Compliance Plan

3. Overview Renewable Portfolio Standards Public Law 29-62 (2008)
5% by 2015; 10% by 2020; 15% by 2030; 25% by 2035
2008 IRP
No additional capacity requirements
US Clean Air Act & Clean Water Act (2010)
Environmental Compliance for EGU MATS and RICE MACT
316B Restricts Sea Water Cooling for New Permitted Units
FY 2013 IRP Issued
FY 2014 IRP Update
Procure 120MW (Retire Cab1&2); Option for Additional 60MW (Retire Cab3&4, if economical)
Loss of Cabras 3&4 (August 2015 Property Loss)
PUC Order – Docket 15-05

4. 2016 Integrated Resource Plan
Procure up to 180 MW combined cycle units
Obtain Engineering, Procurement and Construction Management (EPCM) contract to assist with Procurement Development & act as Owner’s Engineer
IPP Model with GPA Financing
Retire Cabras 1,2,3,&4
Convert MEC 8&9 to ULSD under IPP recapitalization model

5. Key Assumptions
Load Forecast - Recognizing the Impact from Net Metering & Demand Side Management (DSM), Base Case
Fuel Forecast – Includes ULSD and natural gas
Life Extension Capital Costs, Fuel Conversion and EGU MATS Compliance for Cabras 1&2
Fuel Conversion & Rice MACT compliance Costs for MEC 8&9 (Independently Determined by BWSC/TRC)
EGU MATS / RICE MACT and National Ambient Air Quality Standards (NAAQS) Compliance Options (required) for all Baseload units (Evaluated by TRC)
Assumptions for New & Existing Resources CIP & O&M Costs (Independently Determined by LEIDOS)
Peak Demand of 270MW by 2025
Compliance with USEPA Regulations by December 2021

6. Resources Considered
New Resources (Simple Cycle CT, Combined Cycle CT, Combined Cycle Medium Speed Diesel)
Various Sized Options of New Resources
Various Quantities of Options of New Resources
Various Types (Simple Cycle CT, Combined Cycle CT, Combined Cycle Medium Speed Diesel)
Existing Resources
Retention of Cabras 1&2 Units
Retention of MEC 8&9 Units

7. Comparative Analysis of CC Units

8. Rate Impact (High Capital Case)

9. Debt Service Coverage Ratio (High Capital Case)

10. GPA Implementation Plan
2016 Integrated Resource Plan
Procurement Strategy Financing Options EPA Compliance Plan

11. 2016 Integrated Resource Plan
Procure up to 180 MW combined cycle units dual fired for ULSD & Natural Gas
Obtain Engineering, Procurement and Construction Management (EPCM) contract to assist with Procurement Development & act as Owner’s Engineer
Independent Power Producer (IPP) Model with GPA Financing
Retire Cabras 1,2,3,&4
Convert MEC 8&9 to ULSD / Natural Gas under IPP recapitalization model

12. Procurement Strategy Contract EPCM as GPA Owner’s Engineer
Develop Procurement Documents for IPP Bid and Contract that will Optimize GPA’s total system costs
Considers the following but not limited to:
Various Capacities and Technologies
New Generation and Supporting Infrastructure Capital Costs
New Generation Variable and Fixed Operating & Maintenance Costs
Heat Rate
System Dynamic Response Capabilities
Peak Load Carrying Capacity (PLCC)
Reserve Margin

13. Procurement Strategy (continued)
Reliability / Loss of Load Expectation (LOLE)
GPA Finance and Lease Equipment to IPP
Performance Based Contract with Penalties and Bonuses
30 Year Term
Responsible for Labor, O&M, CIP, Insurance, Regulatory Compliance (Excludes Fuel Supply)
Issue New Bonds
30 Years
Take Advantage of Current Low Interest Rate
Restructure Prior Debt for Levelized Annual Debt Service
Refund Prior Bond
Minimize Rate Impact (after 2026)
Assist in IPP Bid Evaluation and Contracting
Oversee Design and Construction

14. USEPA Compliance Schedule