Charles County Supply Development · 10/22/2019 · • Brown power via the Brown PPA (grey) will be sold to Charles County during off-peak hours, the balance of the 24-hour day

Charles County Government – Energy Supply Program1

CHARLES COUNTY GOVERNMENTENERGY SUPPLY PROGRAM

October 22, 2019


TABLE OF CONTENTS

THE MAN I. THE JOINT VENTURE

II. THE SOLAR POWER PURCHASE PROGRAM

III. THE SOLAR POWER PROJECTS

IV. THE PROPOSED ENERGY PURCHASE PROGRAM

V. NEXT STEPS


THE JOINT VENTURE


THE JOINT VENTUREENERGY VENTURES IPP, LLC

INDEPENDENT POWER PRODUCER

• Formation: August 2014 (Delaware)

• Core Competency: Renewable energy power generation facility acquisition, development, ownership and management

• Market Area: United States

• Target Customers: Federal, state and local government agencies, commercial, industrial and institutional entities, and utility companies

• Gov’t Certifications: Federal: SDB, VOSB, SDVOSBState & Local: DBE, MBE

• Gov’t Contracts: U.S. Army ID/IQ MATOC (Solar)

• Pipeline: 5 Projects / 100 MW[dc]

• Employees: 1 – 10


THE JOINT VENTUREX-ELIO ENERGY USA, INC.

• X-Elio is a leading vertically-integratedcompany with a long-standing trackrecord in development, construction,operations and management of solarPV assets

• It was founded in 2005, and hasrapidly grown into a globally-recognized player in the Solar PVspace, having developed, built andgrid-connected more than 1.1 GW

• The Company relies on a team of 200highly skilled professionals. Withpresence in 14 countries, X-ELIO hasoffices in Spain, Italy, South Africa,Japan, USA, Mexico, Chile and Australia

• The Company’s shareholders areBrookfield Renewable Partners L.P.(50%) and KKR & Co. Inc. (50%)


THE SOLAR POWER PURCHASE PROGRAM


THE SOLAR POWER PURCHASE PROGRAMPROGRAM GOALS

• Priority I: Financial Considerations

o Reduce County energy expense

o Reduce volatility and increase predictability ofCounty energy expense

• Priority II: Environmental Responsibility

o Increase use of green energy

o Reduce carbon footprint

o Sensitive use of County natural resources

• Priority III: Socio-Economic Development

o Minority Business Enterprise participation

o Small Local Business Enterprise participation


THE SOLAR POWER PURCHASE PROGRAMPROGRAM INCENTIVES

• Energy Consumption

o Purchase commitment of 100% of project(s)output up to maximum County demand

• Real Estate

o 44 County-owned potential development sitesoffered for lease

o Below-market site lease payment rate

o Expedited planning & zoning approval

• Tax Authority

o Payment-in-lieu of taxes agreement (PILOT)


THE SOLAR POWER PROJECTS


THE SOLAR POWER PROJECTSPISGAH LANDFILL

• Location: 6645 Masons Springs RoadLa Plata, MD 20646

• Site Size: 101 acres

• Vegetation Cover: Grassland over a capped solid-waste landfill

• Site Owner: Charles County Government

• System Type: PV Solar, ground-mounted

• Capacity: 29.5 MW(dc) / 22.5 MW(ac)

• Peak Output: 20.18 MW

• Annual Production: 39,851 MWh


DAVIS ROAD

• Location: 2500 Davis Road, Waldorf, MD 20603

• Site Size: 96 acres

• Vegetation Cover: Shrubland






THE SOLAR POWER PROJECTS


Chares

t

TOTAL

• Location: La Plata, White Plains & Waldorf

• Aggregate Size: 301 acres






THE SOLAR POWER PROJECTSDEVELOPMENT/OPERATIONS APPROACH

• Financial Considerations

o Minimize cost & risk of development to the County

o Minimize cost & risk of operations to the County

o Potential revenue sharing with the County

• Environmental Considerations

o Minimize negative impact to the environment

o Maximize positive impact to the environment

• Socio-Economic Development Considerations

o Maximize use of MBEs

o Maximize use of SLBEs


THE PROPOSED ENERGY PURCHASE PROGRAM


THE PROPOSED ENERGY PROGRAMOVERVIEW OF ELECTRICITY MARKET

Power Market Wholesale Retail

Generation Transmission Distribution

FERC & PJM

Supplier (LSE)(1) SMECO

Maryland

(1) LSE: Load servicing entity, e.g. EnVen/X-Elio


JV DevCo JV RESCo

Pisgah Landfill(Project

Company)

Davis Road(Project

Company)

OwnershipSolar PPA

Solar PPA

Charles County Govt

PJM Wholesale(Merchant)

Other Structured Supply

Delivered Fuel Mix via Retail Electricity Supply Agreement

THE PROPOSED ENERGY PROGRAMPROCUREMENT STRUCTURE

Brown PPAs

Charles County PS

Other Entities


• Volume based on annual load data provided by the County• Shape based on historic profile from SMECO with estimated profile tranches• Peak Load Demand: 9.932 to 11.257 MW• Annual Consumption: 43,079 MWh

0

1

2

3

4

5

6

7

8

9

10

1/1/2011 2/1/2011 3/1/2011 4/1/2011 5/1/2011 6/1/2011 7/1/2011 8/1/2011 9/1/2011 10/1/2011 11/1/2011 12/1/2011

MW

Estimated Hourly Demand Profile

THE PROPOSED ENERGY PROGRAMCOUNTY DEMAND PROFILE


• Brown power (grey) is sold to Charles County during the 24-hour day• No Solar power is sold by SMECO to Charles County Government

$0

$10

$20

$30

$40

$50

$60

0

1

2

3

4

5

6

7

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

$/M

Wh

MW

Hour Ending

Daily Average Demand/Production - Average June Day

Average Load Hourly LMP

THE PROPOSED ENERGY PROGRAMCOUNTY FUEL MIX PROFILE (CURRENT)


• Solar power via the Solar PPA (yellow) will be sold to Charles County during the day to meet its demand during production hours

• Brown power via the Brown PPA (grey) will be sold to Charles County during off-peak hours, the balance of the 24-hour day

• Excess Solar Power via the Solar PPA (green w/diagonal lines) will be sold to other entities (e.g. Charles County PS) during production hours

THE PROPOSED ENERGY PROGRAMFUEL MIX PROFILE

$0

$10

$20

$30

$40

$50

$60

-

5

10

15

20

25

30

35

40

45

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

$/M

Wh

MW

Hour Ending

Daily Average Demand/Production - Average June Day

PV Production Grid Producion Excess Solar Average Load Hourly LMP


THE PROPOSED ENERGY PROGRAMBENEFITS TO THE COUNTY

N0. ITEM COUNTY GOAL

1. Reduction in annual energy expense

2. Reduction of volatility and increase in predictability of annual energy expense

3. Monetization of unused or undervalued County real estate

4. Potential for revenue sharing from sale of excess solar power

5. Increased use of green energy

6. Reduction in carbon footprint

7. Sensitive use of County natural resources

8. Potential for participation by County-based MBEs

9. Potential for participation by County-based SLBEs


NEXT STEPS


NEXT STEPSSCHEDULE OF MILESTONES

EVENT AGENCY PROJECTDAVIS PISGAH

1. Notice of Intent to Award Charles Co. Jan 2017 Jan 20172. Ground Lease Execution Charles Co. Sep 2018 Sep 20183. Power Purchase Agreement Approval (Initial) Charles Co. Nov 2018 Nov 20184. Interconnection Application Submission PJM Mar 2019 Mar 20195. Interconnection Feasibility Study Begins PJM Oct 2019 Oct 20196. Transaction Progress Report to County Commission Charles Co. Oct 2019 Oct 20197. Interconnection Feasibility Results Published PJM Jan 2020 Jan 20208. Special Exception Application Submission Charles Co. Feb 2020 Mar 20209. CPCN Request Submission Maryland PSC Mar 2020 Apr 202010. Special Exception Application Approval Charles Co. Jul 2020 Aug 202011. Site Development Plan Submission Charles Co. Aug 2020 Sep 202012. Site Development Plan Approval Charles Co. Apr 2021 May 202113. Interconnection Application Approval PJM/SMECO Apr 2021 May 202114. CPCN Request Approval Maryland PSC Apr 2021 May 202115. Construction Start EnVen/X-Elio Jun 2021 Jul 202116. Construction Completion EnVen/X-Elio Jan 2022 Feb 202217. COD EnVen/X-Elio Feb 2022 Mar 2022


NEXT STEPSCRITICAL ISSUES

• Transaction Documentation

o Ground Lease Amendments

o Power Purchase Agreement Re-Structuring Amendments

o PILOT Agreements


END

Documents

Charles County Supply Development · 10/22/2019 · • Brown power via the Brown PPA (grey) will be sold to Charles County during off-peak hours, the balance of the 24-hour day