Pasadena Water Power First Solar Inc Kingbird Solar

Pasadena Water & Power First Solar, Inc. Kingbird Solar Project Power Purchase Agreement City Council – Agenda Item 13 September 9, 2013

Project & Contract Overview Pasadena Water & Power • 20 MW (AC) single-axis tracking solar PV • To be located on 324 acres in Rosamond, CA > Site includes Kingbird B (another 20 MW project – output purchased by SCPPA) • Guaranteed commercial operation by January 2016 (Fiscal Year 2016) • Add approx. 5. 5% RPS • • PWP to pay for all energy “as available” • > ~60, 000 MWh/year (1 st year) > Expected output degradation ~0. 5% per year • • 2 Price = $68. 50/MWh through term of contract Includes Resource Adequacy capacity Option to Purchase 20 year term with option to extend by 5 years

Project Benefits Pasadena Water & Power • RPS Category 1 resource relatively close to Pasadena • Feasible to operate and maintain if purchased 3

Project Benefits Pasadena Water & Power • Portfolio Fit > Project size is a good match for PWP requirements § 20 MW x 33% Capacity Factor > PV production is variable, but generally aligns well with PWP demand 4

Project Benefits Pasadena Water & Power • Viability > Several initial milestones already achieved § Site control, interconnection studies, CEC pre-certification, CEQA; > Experienced project developer (First Solar, Inc. ) with several utility scale projects already operating/under construction > Solar PV is a proven technology 5

Project Benefits Pasadena Water & Power • Value > Renewable energy, environmental attributes and system resource adequacy. > Facility purchase option at the 10 th, 14 th, or 18 th contract year, or in the event of a default under the power purchase agreement. > Price is competitive with other offers for similar renewable products. 6

Risks Pasadena Water & Power • Some risks Include: > Project development/construction failure or delay > Counterparty credit/default > Resource underperformance > Comparative price risk § Future or alternative resources may have lower prices • Contractual provisions attempt to mitigate many risks, e. g. : • Although there is risk that future resources may have lower prices, this contract is also a hedge against future price increases and volatility > Performance security > Liquidated damages > Guaranteed energy production 7

Price Comparison Pasadena Water & Power Renewable Energy Contracts Price Comparison Resource Name/Type Contract Execution Contract Energy Price 1 by Calendar Year ($/MWh) 2014 2015 2016 2017 2020 2025 Proposed Kingbird Solar 2013 - - $68. 50 Silverado Solar (+ $5. 10/MWh for RA, if available) 2012 - $77. 34* $78. 50* $79. 68* $83. 32* $89. 76* WM Biomethane 2011 $94. 92 - Sequent Biomethane 2011 $94. 92 - EDF Biomethane 2011 $98. 00 - Milford Wind 2009 $70. 94 $72. 19 $73. 45 $74. 74 $78. 73 $85. 86 Ormat Geothermal Phase 2 2008 $82. 01 $83. 24 $84. 49 $85. 76 $89. 67 $96. 60 Chiquita Canyon LFG 2006 $65. 25 Ormat Geothermal Phase 1 2005 $64. 77 $65. 74 $66. 73 $67. 73 $70. 83 $76. 30 Iberdrola Renewables 2003 $53. 50 - $43. 99* $46, . 19* $48. 50* $50. 92* $58. 95* $75. 23* 2013 Market Forecast (Brown Power) [1] Contract prices exclude costs of transmission, losses, and integration fees [price with * does not include RA capacity; all others do] 8

Renewable Portfolio Pasadena Water & Power Current Renewable Energy Portfolio Summary (GWh) Calendar Year 2015 2016 2020 2025 Azusa Hydro 5 5 5 Iberdrola High Winds 14 14 14 Minnesota Methane LFG 42 Ormat Geothermal 16 16 Milford Wind Phase 1 11 11 Chiquita Canyon LFG 37 37 EDF Biomethane 13 13 14 - Sequent Biomethane 29 30 38 - Waste Management Biomethane 41 41 41 - 32 32 - 60 58 57 301 266 158 1168 1196 25. 8% 22. 2% Silverado Solar Proposed Kingbird Solar Total Renewable Supply 240 Retail Sales 1161 %Renewable 21. 3% [1] 42 A gigawatt-hour (“GWh”) is equal o 1, 000 megawatt-hours (“MWh”) 9 5 - - - 13. 2%

Impact for a Typical Customer Using 500 KWh/Month Pasadena Water & Power CURRENT FUTURE (without Kingbird) (2016 onward with Kingbird)* TOTAL $87. 20 TOTAL $87. 72 Note: Current total bill includes all existing renewable contracts 10 *Assumes other charges in the electric bill remain the same as current bill

Fiscal Impact - Cumulative Pasadena Water & Power Before Kingbird: • Cumulative net impact of all existing renewable contracts in the energy portfolio: After Kingbird: • Cumulative net impact of all renewable contracts in the energy portfolio: > Approximately $8. 5 million per year > Approximately 0. 73 cents per k. Wh starting in January 2016 > Approximately $7. 3 million per year > Approximately 0. 62 cents per k. Wh Cumulative net impact will increase by approximately: • $1. 2 million per year • 0. 11 cents per k. Wh • $0. 52/month for a 500 k. Wh average customer 11

Thank You ~ Questions? Pasadena Water & Power Back Up Slides 12

Appendix – RPS Portfolio After Kingbird Pasadena Water & Power 13

Selection Process Pasadena Water & Power • Project was offered July 24, 2013 into, and selected as part of, the open SCPPA Request for Proposal process. • Determined by PWP to be one of the “best fit/least cost” resources from among almost 300 offers. • Also determined to be exempt from Pasadena’s competitive bidding rules as a contract for professional or unique services, and as a contract potentially relating to the acquisition of real property (includes a purchase option). 14

First Solar Experience Pasadena Water & Power SOME COMPLETED FIRST SOLAR FACILITIES Project Location Project Size in MW (AC) Power Purchase Agreement (PPA) Third Party Owner/ Purchaser Blythe, CA 21 SCE NRG Energy, Inc Copper Mountain 1 Boulder City, NV 58 PG&E Sempra USG&P Cimarron Colfax County, NM 21 Tri-State Southern Company & Turner Renewable Energy Silver State North Primm, NV 50 NV Energy Enbridge, Inc Roadrunner Santa Teresa, NM 20 El Paso Electric NRG Energy Sarnia, Ontario, Canada 80 Ontario Power Authority Enbridge 15

First Solar Experience (cont. ) Pasadena Water & Power SOME FIRST SOLAR FACILITIES UNDER CONSTRUCTION Project Location Project Size in MW (AC) Power Purchase Agreement (PPA) Third Party Owner/ Purchaser Expected Substantial Completion Topaz San Luis Obispo, CA 550 PG&E Mid. American 2014/2015 Desert Sunlight Desert Center, CA 550 PG&E/SCE Agua Caliente Yuma County, AZ 290 PG&E Next. Era/GE/ Sumitomo NRG/ Mid. American 2014/2015 2014 AV Solar Ranch One Los Angeles County, CA 230 PG&E Exelon 2013 Imperial Energy Center South Imperial County, CA 130 SDG&E Tenaska 2013 Copper Mountain 2 Boulder City, NV 58 PG&E Sempra USG&P 2015[2] PNM 2 Walpole Belmont Amherstburg 1 DEWA NM Ontario, Canada UAE 22 20 20 10 13 UOG OPA OPA DEWA PNM GE/Alterra DEWA 2013 2013 Campo Verde Imperial County, CA 139 SDG&E N/A 2013 Macho Springs Maryland Solar Lost Hills Deming, NM Maryland Kern County, CA San Bernadino County, CA 50 20 32 El Paso Electric FE Solutions PG&E N/A N/A 2014 2013 2015/2016 300 SCE N/A 2016 Stateline Silver State South Clark County, NV 250 SCE N/A 2016 AGL[6] Australia 159 AGL N/A 2015 Cuyama San Joaquin Valley, CA 40 PG&E N/A 2015/2016 16