PSE Wind Energy Opportunities Whatcom County Climate Impact

PSE Wind Energy Opportunities Whatcom County – Climate Impact Advisory Committee Ryan Sherlock July 11, 2019

About Puget Sound Energy History: Oldest Utility in the state of Washington (135 years) Headquarters: Bellevue, WA Employees: 2, 700 Customers: Approximately 1. 1 million electric and 790, 000 natural gas Service Area: 6, 000 square miles, primarily in Puget Sound region of Western Washington Service Area Population: Approximately 4 million Counties: 10 counties served

About Me Ryan Sherlock Senior Energy Resource Planning & Acquisition Analyst Strategic Initiatives Puget Sound Energy

To meet our customers’ electricity demand PSE owns and operates 5, 100 MW of generating capacity in Washington state and Montana By Capacity (MW) PSE Wind 15% PSE Coal 13% Mid-C 14% PSE Combined C 25% PSE Hydro 5% Other Long-Term Contracts 15% PSE Simple Cycle 12%

PSE is the third-largest owner/operator of wind generation in the U. S. PSE Owned Hopkins Ridge 157 MW Lower Snake Ridge 343 MW Power Purchase Agreement (PPA) for Output Klondike III (Avangrid Renewables) 223. 6 MW (50 MW PPA) Wild Horse 273 MW

PSE’s three wind plants provide clean energy for our customers as well as Renewable Energy Credits (RECs) • Carbon free Plant • Three PSE owned projects • Generate RECs to meet Renewable Portfolio Standard • 773 MW, enough to power nearly 200, 000 homes Capacity Owner Location (MW) Avg $/MWh Hopkins Ridge PSE Columbia County 157 $16 Lower Snake River PSE Garfield County 343 $18 Wild Horse PSE Kittitas County 273 $17 Various 56 $68 Small Wind Purchased Power Notes 1. Only a portion of capacity contributes to winter peak 2. Average $/MWh includes fuel and operating costs PSE Wind 15% Mid-C 14% PSE Coal 13% PSE Combined Cycle 25% PSE Hydro 5% Other Long-Term Contracts 15%

PSE’s newest wind addition is the Skookumchuck Wind Farm, which will serve Green Direct Customers Skookumchuck Wind PPA Partner Location Nameplate Capacity Planned Operation Date Lewis & Thurston Counties, WA 136. 8 MW Q 4, 2019 - Q 1, 2020 Term 20 years Net Capacity Factor (NCF)* 31. 32% Guaranteed Annual Output* 43 a. MW Annual Energy* Skookumchuck RES Group 375, 346 MWh

Customer-facing renewable energy programs Retail Renewable Energy Customer Generation Washington RCW 19. 29 A – Voluntary Option to Purchase Qualified Alternative Energy Resources • • GREEN POWER SOLAR CHOICE NET METERING SCH 135, 136 SCH 135 SCH 150 PNW REC purchases 44, 000 customers 450, 000 MWh/Year Residential, commercial, municipal BULK REC PURCHASES • Solar RECs WA and ID • Launched 2017 • 2, 100 customers/5, 000 MWh/Year • Residential and small comm. GREEN DIRECT SCH 139 • • Up to 100 k. W Full retail compensation 6, 000 customers/50 MW Residential, commercial, municipal, community solar SMALL POWER PRODUCERS SCH 91, 152 • • Excess PSE wind RECs Boeing is sole customer Ends in 2018 Large business • Long-term partnership with PSE for dedicated energy resources • Limited to 75 a. MW • Large commercial, municipal • 100 k. W – 5 MW • 15 year pricing based on avoided cost • Small developers 2018 + Activity • Increase customer participation, including reaching Green Direct cap