NOW UNDER CONSTRUCTION COD- September 2016

PIO PICO DEVELOPMENT The Pio Pico Energy Center (PPEC) is a 300 MW simple-cycle electrical generating facility that is contracted under a 25-year power purchase agreement (PPA) with San Diego Gas & Electric (SDG&E). Pio Pico is located on a ten-acre site in Otay Mesa, an unincorporated area of San Diego County, California, approximately 15 miles southeast of downtown San Diego.

PPEC is designed to directly satisfy current and long-term San Diego area peaking and load-shaping generation requirements. Key among these requirements is supporting wind and solar generation, whose overall output naturally varies. As wind, hydro, solar, and other renewable resource output drops, PPEC will be dispatched from ‘cold iron’ to 300 megawatts (MW) in fewer than 10 minutes to make up the lost grid capacity. Thus, PPEC will support existing and future heightened penetration of renewable energy into SDG&E’s service territory.

Pio Pico utilizes three GE LMS100 combustion turbines - the first intercooled gas turbine system developed especially for the power generation industry. It uses heavy-duty, aero-derivative gas turbine technology. The LMS100 produces approximately 100MW at an efficiency rate that is approximately 10 percent higher than that of other commercial simple-cycle gas turbines. Using heavy-duty, aero-derivative gas turbine technology, the LMS100 is specifically designed for flexible, cyclic applications and 10-minute starts.

Pio Pico began construction in March 2015 and will become operational by September 2016.

Apex Power Group prepared and submitted a proposal in August 2009 in response to SDG&E’s all source Request For Offers. The RFO was a broad solicitation for power generation that included peaking facilities, like PPEC, as well as demand-side management and generation from renewable energy resources. Pio Pico was shortlisted by SDG&E in November 2009 and signed a Power Purchase and Tolling Agreement in February 2011.

Key Dates Date Event/Milestone

2009-July ApexsubmitsbidtoSDG&E.

2009-November PioPicoshortlistedbySDG&E.

2011-February PioPicoexecutesPPAwithPG&E.

2011-February ApexFilesAFCwiththeCEC.

2011-April AFCdeemedadequatebyCEC.

2012-February CAISOreleasesfinalPhaseIIIresults

2012-May TheCECstafffileditsFinalStaffAssessment(“FSA”).

2012-August CECissuesPresidingMember’sProposedDecision.

2012-September Executefixedprice,turn-keyEPCContractwithKiewitandissueLimitedNoticetoProceed(“LNTP”).

2012-September LargeGeneratorInterconnectionAgreement(“LGIA”)withtheCaliforniaISO.

2012-September CaliforniaEnergyCommissionapprovesPioPico.

2014-February Pio Pico received final approval from the CPUC for thePPTAwithSanDiegoGas&Electric.

2015-February FinancialClose.