Reaching a Triple Bottom Line with

Sustainable Energy

John Petroff, Taylor Farms

The Problem

• UN IPCC: 2° Celsius

o 0.85° Celsius already observedo On pace for 3.7° – 4.8° by 2100

The Solution

Challenges

Big Picture• Need to change energy management

• Renewables suddenly affordable

• Risks and uncertainties for traditional energy suppliers

• Pressure from customers and consumers

Taylor Farms Solar

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 200%

20%

40%

60%

80%

100%

120%

140%

160%

180%

200%

Solar Loan vs Grid

GridSolar

Project Year

% o

f T

oday's

Ele

ctr

icit

y P

rice

Taylor Farms Wind

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 2060%

80%

100%

120%

140%

160%

180%

200%

Wind PPA vs Grid

GridWind

Project Year

% o

f T

oday's

Ele

ctr

icit

y P

rice

Energy Prices ≠ Electricity Prices

• Rates set at the PUC; cover operating costs, capital costs, and return on capitalo Opposite of highly volatile energy commodity markets

• We’re just hedging

Energy Prices ≠ Electricity Prices

Energy Prices ≠ Electricity Prices

Jan-

2004

May

-200

4

Sep-2

004

Jan-

2005

May

-200

5

Sep-2

005

Jan-

2006

May

-200

6

Sep-2

006

Jan-

2007

May

-200

7

Sep-2

007

Jan-

2008

May

-200

8

Sep-2

008

Jan-

2009

May

-200

9

Sep-2

009

Jan-

2010

May

-201

0

Sep-2

010

Jan-

2011

May

-201

1

Sep-2

011

Jan-

2012

May

-201

2

Sep-2

012

Jan-

2013

May

-201

3

Sep-2

013

Jan-

2014

May

-201

4

Sep-2

014

0

2

4

6

8

10

12

14

16

Henry Hub Natural Gas Spot Price ($/mBtu)

Conclusion• Big problem

• Big opportunities

• Win-win