1. COLIN W. JACK, PE CHIEF OPERATING OFFICER Dixie Power & City of St. George SunSmart Project

2. Dixie Power  Headquartered in Beryl Jct. & St. George, Utah  18,000 members in Southern UT & Northern AZ  114MW peak in summer, 420GWh/year  All-requirements member of Deseret Power 2

3. Colin W Jack, PE 3 50 countries

4. St. George, Utah  Southwestern Utah  Elevation: 2500 ft.  Sunshine 310 days / year  Average annual temperature: 61  F  Average high in July: 102  F; average low in January: 25  F 4

5. Customers Demand Solar Option  2006 Dixie Power received on average a request per day regarding solar power options  2006 Dixie Power adopted a net metering tariff to accommodate requests for solar installations  2007 Dixie Power & St George City brain storm the idea of a large scale solar facility that could be sold to customers in lieu of individual roof top units  2008 Dixie Power & St George City build SunSmart facility

6.  SunSmart can grow up to 15 acres, which would accommodate 2,000 kilowatts (“kW”) of solar panels.  Single axis tracking adjusted 4 times/year.  Residents can purchase shares in 0.5 or 1.0 kW increments; 1.0 kW of panels produces about 150 kilowatt-hours (“kWh”) per month.  (Typical residence uses 1,500 kWh per month.)  Central facility avoids maintenance hassles, community restrictions, and installation issues SunSmart characteristics 6

7.  $1,000,000 direct materials & labor for 100kW  State Legislature extends 20% tax rebates to SunSmart  St. George City applied for Federal Stimulus  Purchased additional 150kW of solar panels  Total Cost Phase 1 + Phase 2 =  $1,320,000 ÷ 250kW = $5,280/kW  Dixie & St. George set subscription rate at $5,000/kW SunSmart – development 7

8. Major promotion  Hired high power (high $) PR firm to promote  Multimedia blitz: TV, radio, internet, newspapers  Governor of Utah inaugurated & cut ribbon 8

9. Subscription rates  Of potential 45,000 customers:  25 customers purchased 26.5kW in first year (2008)  1 additional customer purchased 1kW in 2010 9

10. SunSmart costs – total 48% Subsidized* 10 *Costs don’t include: 15 acres land A&G Overheads Tax free purchases

11. SunSmart costs to consumer $ 4,000 net cost or $26.40/month* 150kWh/kW/mo avg. output = 18¢ / kWh Cost / kWh for Dixie customer 5.35¢ / kWh 329% premium for solar *Terms: 5% for 20 year panel lifetime 11

12. Maintenance Issues:  Monthly cleaning – or loss of production  Wind – unexpected north wind  Manufacturer’s defects – replaced all original panels under warranty 12

14. SunSmart relative production 14

15.  Power supplied limited to availability of sunlight Solar limitations Probable cloud blockages 15

16. Solar’s contributions to peak load Solar output falls off daily just as load in St. George peaks. 16

17. Summary  Power delivery to system does not match peak demand  Even with generous subsidies, solar power expensive  Solar power producing 20% equivalent hours  Low subscription rate for SunSmart  Visit: www.sgsunsmart.com or www.dixiepower.comwww.sgsunsmart.comwww.dixiepower.com 17

18. SOLAR ENERGY – THE RENEWABLE OPTION COLINJ@DIXIEPOWER.COM Dixie Power - City of St. George SunSmart Project