1. Estes Park Fort Collins Longmont Loveland Renewable Energy Generation – A Local Perspective – National League of Cities – EENR Committee September 5, 2014

2. The Energy We Live By™ 2

3. Local/Regional Governance Estes ParkFort CollinsLongmontLoveland Mayor Bill Pinkham Mr. Reuben Bergsten Mayor Karen Weitkunat Mr. Gerry Horak Mayor Dennis Coombs Mr. Tom Roiniotis Mayor Cecil Gutierrez Mr. Steve Adams Platte River Board of Directors 3

4. Residential Small Business Large Business Distribution TransmissionGeneration Customers Estes Park Fort Collins Longmont Loveland Platte River Power Authority Not for profit Joint Ownership Wholesale Market Participant Local Electric System Partnership Changing Boundaries 4

5. Price Growth Technology Evolution 5 NREL

6. Existing Wholesale Generation Resources Existing Wholesale Generation Resources 5 Craig CoalRawhide Coal Rawhide Gas Turbines (simple cycle) Hydropower (multiple sites) Wind (multiple sites) 6 6

7. Demand Side Management Resources Energy Savings (MWh) Investment (millions) http://efficiencyworks.CO 7 About 5% system energy savings to date (all measured programs) Low cost vs. generation About 5% system energy savings to date (all measured programs) Low cost vs. generation

8. Availability Comparison 8 Integration needed to maintain reliability Existing technology (short term) New technology (long term) Integration needed to maintain reliability Existing technology (short term) New technology (long term)

9. Renewable Energy Source Trends Close to 30% renewables (average water) Close to 30% renewables (average water) 60 MW wind & 30 MW solar planned (2014/2015) 60 MW wind & 30 MW solar planned (2014/2015) 9 First Utility Scale Wind in Region First Utility Scale Wind in Region No Federal RES (yet) State standards influence planning CO – most hydro “not renewable” No Federal RES (yet) State standards influence planning CO – most hydro “not renewable” Platte River System

10. Regional Wind Resources Medicine Bow Medicine Bow Spring Canyon Spring Canyon Silver Sage Silver Sage 10 Additional purchases from KS and OK Additional purchases from KS and OK Lessons: Economy of scale (significant) Geographic diversity (limited for these sites) Incentives favor taxable entities Operation & maintenance cost escalation Maintenance provider quality (outsource?) Transmission constraints Market timing – monitor trends Lessons: Economy of scale (significant) Geographic diversity (limited for these sites) Incentives favor taxable entities Operation & maintenance cost escalation Maintenance provider quality (outsource?) Transmission constraints Market timing – monitor trends

11. Spring Canyon Site (New 60 MW in 2014) 11

12. Wind Operations Considerations Low availability during peak periods Lower production in summer season than winter (summer peaking system) Average generation rate of ~ 35% (capacity factor) Newer generation ~ 40% + Intermittent supply Forecasting challenges Requires balancing and regulation Need new integration resource(s): – Regional purchase (balancing authority) – Local system utility scale (wholesale) – Local distributed scale (retail) 12 Wind output at system peak hour

13. 2014 Solar RFP Many years of study/estimates Seeking firm price bids 30 MW maximum size (Phase I) Pricing for range of sizes (5–30 MW) Photovoltaic technology Fixed and tracking mountings Degradation/output warranties Lots of other details Sale to all Municipalities RFP released in late September 13

14. Siting Considerations Large area needed (5 to 10 acres per MW) Land use/permitting requirements Transmission cost can be avoided Local interconnection limits Large area needed (5 to 10 acres per MW) Land use/permitting requirements Transmission cost can be avoided Local interconnection limits 14

15. Municipal Solar Programs: Focused on photovoltaic (PV) Feed-in tariff design ~ 5 MW Other programs ~ 3 MW Office Complex System: Still running after 27 years Supported CSU students and research projects over time Charged fleet electric vehicles 15 Distributed Solar 15

16. Solar Hot Water 16 “THERMAL” SOLAR SYSTEMS Still an option! Many local dealers Tax credits available (thru 2016) Homes & businesses Support many of the same goals as electric systems Some Municipalities provide natural gas service Part of overall energy system RBI Solar

17. Distributed Renewable Energy Existing – all four communities ~ 420 systems (electric) Total of about 3 MW (3,000 kW) Largest = 180 kW Smallest = 0.7 kW Six small wind turbines/rest are PV solar New programs adding more systems Significantly higher cost than large scale Can provide other “local” value Existing – all four communities ~ 420 systems (electric) Total of about 3 MW (3,000 kW) Largest = 180 kW Smallest = 0.7 kW Six small wind turbines/rest are PV solar New programs adding more systems Significantly higher cost than large scale Can provide other “local” value 17

18. Solar Generation at Time of Peak Solar Peak (noon) Hours in a day System Peak (typically 4-6 pm) Average July Day Output Intermittent supply Higher in summer ~ 18% capacity factor Fast drop off Need new integration resource 18

19. Solar “Duck Curve” SMUD (California) 19

20. Renewable Resource Integration Option Natural Gas – Combined Cycle Renewable Resource Integration Option Natural Gas – Combined Cycle Considerations Improved efficiency Lower emissions Flexible modes – simple cycle or combined cycle Optional configurations Variable operation to integrate intermittent renewable sources Added costs Example – General Electric 34 20 Other Options: Distributed generation (firm) Storage technology? Demand response? Other Options: Distributed generation (firm) Storage technology? Demand response?

21. ReBus Micro and Macro Integration Down to the Home (Micro Grids) Up to the Western Grid (Energy Imbalance Markets) PacifiCorp Renewables integration at every level Complex system planning Coordination/collaboration needed Stakeholder communications critical Renewables integration at every level Complex system planning Coordination/collaboration needed Stakeholder communications critical 21

22. Costs for New Resource Options U.S. average – Energy Information Administration 2013 http://www.eia.gov/forecasts/aeo/er/pdf/electricity_generation.pdf 22

23. Local Cost Comparisons 23 Key Points: Does not include CO 2 charges/other external costs Federal incentives ~ 30-40% of renewable cost (included) Size has significant impact on cost Transmission and integration costs ~ 30% for wind Costs are very site specific Renewable costs dropping (solar more so than wind) Costs of other resources increasing (capital, fuel + O&M) Renewable value increasing Net metering – cost recovery considerations Key Points: Does not include CO 2 charges/other external costs Federal incentives ~ 30-40% of renewable cost (included) Size has significant impact on cost Transmission and integration costs ~ 30% for wind Costs are very site specific Renewable costs dropping (solar more so than wind) Costs of other resources increasing (capital, fuel + O&M) Renewable value increasing Net metering – cost recovery considerations

24. 2014 Strategic Plan 2012 Integrated Resource Plan 2009 Climate Action Plan (Click on “Plans” tab) Planning for the Future http://www.prpa.org/ 24 Key Initiatives: Collaboration & Communication Resource Portfolio Diversification Technological Innovation Safety Exceptional Customer Service Operational Excellence Compliance Assurance Financial Stability Employee Engagement Key Initiatives: Collaboration & Communication Resource Portfolio Diversification Technological Innovation Safety Exceptional Customer Service Operational Excellence Compliance Assurance Financial Stability Employee Engagement

25. Estes Park Fort Collins Longmont Loveland Questions/Discussion? 25