1. Lori Singleton Manager, Sustainability Initiatives and Technologies September 15, 2010 SRP’s Sustainability Initiatives and Programs

2. 209/15/2010L.A. Singleton Who is SRP?  Established in 1903  105 year steward of the environment  Largest water supplier to Valley  Third largest public power utility in the Nation  935,000 electric customers

3. 309/15/2010L.A. Singleton  Established by SRP Board  2001 – Allocated $29 million; 4 year renewable program  2004 – Established sustainable portfolio (includes: renewables and energy efficiency measures) with target of 2% of retail sales by 2010  2006 – Adopted new target of 15% of retail sales by 2025 Sustainable Portfolio Overview

4. 409/15/2010L.A. Singleton Sustainable Portfolio Mix Fiscal Year 2010 Total 7.4% of Retail Sales All numbers listed are approximate and have not been finalized

5. 509/15/2010L.A. Singleton Solar Hydrogeneration Landfill Gas Wind Geothermal Renewable Energy Resources Low Impact Hydro

6. EarthWise™ Customer Solar Incentive Programs

7. 709/15/2010L.A. Singleton Solar Electric Application Submittals

8. 809/15/2010L.A. Singleton Solar Electric Installations

9. 909/15/2010L.A. Singleton Solar Program Expenditures

10. 1009/15/2010L.A. Singleton Average Cost for Residential Solar Electric Systems

11. 1109/15/2010L.A. Singleton Residential Solar Incentives  Solar electric – $2.15 per watt, 5 kW or less – Interconnection required – Incentive provided to customer in exchange for green tags / credits – 1,835 systems installed – 678 systems pending – 13.4 MW installed and pending  Solar water heating – $0.50 per kWh energy savings rating – 2,746 systems installed – 479 systems pending

12. 1209/15/2010L.A. Singleton Typical Residential Cost SizeTypical Cost AZ Tax Credit Federal Tax Credit SRP Solar Incentive Net Cost 5 kW$35,000$1,000$7,275$10,750$15,975 Solar Electric System RatingTypical Cost AZ Tax Credit Federal Tax Credit SRP Solar Incentive Net Cost 2,600 kWh$5,000$1,000$1,110$1,300$1,590 Solar Water Heating System * Arizona State Tax Credit: 25%, $1,000 cap * Federal Tax Credit: 30%, no cap for solar electric, $2,000 cap for solar water heating

13. 1309/15/2010L.A. Singleton Commercial Solar Energy Program  Incentives paid to customers based on actual energy generation ($ / kWh) versus one-time payment  Solar electric – $2.00 per watt up-front incentive up to 30 kW – $0.147 per kWh for 20 years up to 300 kW – 97 systems installed / 64 systems pending – 13.2 MW installed and pending  Solar water heating – $0.50 per kWh up-front incentive up to $100,000 – $0.08 per kWh incentive for 20 years over $100,000 – 21 systems installed / 33 systems pending  Solar pool heating – $0.25 per kWh up-front incentive up to $100,000 – 19 systems installed / 7 systems pending

14. 1409/15/2010L.A. Singleton Typical Commercial Cost * Charts do not include further savings through accelerated depreciation Small Solar Electric System (One Time Incentive) SizeTypical Cost AZ Tax Credit Federal Tax Credit SRP Solar Incentive Net CostSavings 30 kW$195,000$19,500$58,500$60,000$57,000$3,840 Large Solar Electric System (Performance Based Incentive) Size Typical Cost AZ Tax Credit Federal Tax Credit Net Cost SRP Annual Incentive Annual Savings 100 kW$650,000$25,000$195,000$430,000$23,520$12,800

15. 1509/15/2010L.A. Singleton Typical Commercial Cost * Charts do not include further savings through accelerated depreciation Small Water Heating System (One Time Incentive) SizeTypical CostAZ Tax Credit Federal Tax Credit SRP Solar Incentive Net CostSavings 81,000 kWh per year $90,000$40,500$9,000$27,000$13,500$3,539 Large Water Heating System (Performance Based Incentive) SizeTypical Cost AZ Tax Credit Federal Tax Credit SRP Solar Incentive Net CostSavings 1,100,000 kWh per year $1,500,000$25,000$450,000$1,025,000$87,610$48,054

16. 1609/15/2010L.A. Singleton Small Commercial Customer Systems Optima – 8 kW system Body Sculpting Center – 29 kW system Integrity Building Corp. – 19 kW system CDC Pools – 9.2 kW system

17. 1709/15/2010L.A. SingletonGatorade  Located on Gatorade / PepsiCo Distribution Center in Tolleson  Solar electric on distribution center: − 500 kW system contains 2,448 solar panels. Spans 68,000 sq ft − Estimated CO 2 reductions of approximately 400 metric tons per year  Solar water heating for manufacturing: − Uses sun's light to heat water used in manufacturing process for Gatorade products − 110 kW TH system contains 84 solar panels. Spans 9,600 sq ft

18. Other Solar Initiatives

19. 1909/15/2010L.A. Singleton Community Solar  20MW facility to be built in 2011 (Iberdrola)  Energy sold to customers  18 MW for school districts − $0.09 per kWh − Allocated among interested schools  2 MW for Residential customers − 1 – 5 kW size options − Price to be determined

20. 2009/15/2010L.A. Singleton  EarthWise Energy™ allows customers to fund solar energy projects in the community − $3 per month − 4,978 residential customers − 81 business customers  New projects: – Liberty Wildlife – Sunshine Acres Children’s Home EarthWise™ Energy Desert Botanical Gardens The Phoenix Zoo Nina Mason Pulliam Rio Salado Audubon Education Center

21. 2109/15/2010L.A. Singleton Solar for Schools  Grant program to complete installation and ten year maintenance of solar PV systems on Valley schools  Educational materials and educator training related to solar energy  Allows students to monitor energy output and use data for “real-world” math learning and application  12 schools in Phoenix Metro and 2 schools in Northern Arizona have been awarded 10 kW systems  Projects to be completed by the end of 2010

22. 2209/15/2010L.A. Singleton Tessera Solar / Stirling Energy Systems  Tessera Solar, Independent Global Power Producer, exclusively responsible for the worldwide deployment of the SunCatcher™ Solar Dish  Stirling Energy Systems, Scottsdale-based company, formed in 1996, manufacturer of SunCatcher™ Solar Dish Maricopa Solar Plant

23. 2309/15/2010L.A. Singleton Tessera Solar / Stirling Energy Systems  1.5 MW Plant (Maricopa Solar) consists of 60 SunCatcher™ Solar Dishes − 38 ft tall, 40 ft wide, 25 kW, 40 mirrors − Dish concentrator tracks, collects and focuses the sun’s rays to produce heat − Stirling Engine converts thermal energy to electricity Maricopa Solar Plant

24. 2409/15/2010L.A. Singleton  Dedication and ribbon cutting ceremony on January 22, 2010  Project provides hands-on access to performance of the technology, grid integration  Local company, economic development, green jobs  Low water use (fraction of acre ft / year)  Project helps establish Arizona as a solar energy leader Maricopa Solar Plant Maricopa Solar Plant Ribbon Cutting & Dedication

25. 2509/15/2010L.A. Singleton  Partner with DMB on 40 − 50 acre solar technology demonstration park − DMB would own site − Solar companies would lease location − SRP would purchase energy and RECs  Targeting 3 − 4 projects, 1 MW each  Select new solar technologies past R&D stage, but not yet demonstrated at MW scale in US  Discussions with numerous solar companies DMB Solar Demonstration Park