SMUD Integrated Resource Planning Greg Brownell Manager Resource

SMUD: Integrated Resource Planning Greg Brownell Manager Resource Planning April 18, 2016 Powering forward. Together.

Fifth Largest California Utility; 3300 MW Peak, 11, 000 GWh Sales Publicly-Owned; Governed By Seven Member Elected Board Adopted Goals 33% Renewables By 2020 15% Efficiency Savings 90% Reduction In GHG Emissions By 2050

Some Key Policy Drivers Storage: Scaling & becoming cost-effective due to cost declines, policy, solar + storage DR: Aggregation increasing economic viability, opening new markets, emerging direct residential ISO access EV: State will reduce CO 2 emissions in transport market, IOUs rolling out 1000 s of charging stations SB 350: must double in CA by 2030, real-time M&V to drive creative financing SMUD Strategic Directives (SDs): Competitive Rates (SD 2), Access to Credit Markets (SD 3), Reliability (SD 4), Environmental Leadership (SD 7), Resource Planning (SD 9), Public Power Business Model (SD 11), Enterprise Risk Management (SD 17), Emerging Technologies (SD 18) 5

SMUD’s Planning Processes Customer DER Resources • Optimizing shared value of customer resources (locational, operational characteristics) • Getting rates, incentives to provide right investment and operational signals T&D and Supply Planning Grid Assets • Defer unnecessary grid investments with DER’s • Grid and equipment upgrades that are designed for a DER future • T&D Planning • Supply Planning Grid Operations • Visibility and Control of DER’s through integrated platforms • Grid automation and optimization

Co. Su Line Being Studied Benefits • Increased Access to Pacific Northwest Clean Power • Direct COTP Interconnection • Supports GHG Reduction from SMUD Thermal Generators • Preserves Reliability at high load Levels • Increases import limits Page 6

Behind The Meter PV (GWH)

SMUD’s Resource Mix : 2015 8

SMUD’s Expected Resource Mix : 2020 9

16, 000 4, 000 14, 000 3, 500 12, 000 3, 000 10, 000 2, 500 8, 000 2, 000 6, 000 1, 500 4, 000 1, 000 2, 000 500 0 0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Bio Generation Geothermal Utility Solar and Wind Large & Small Hydro DER & Energy Efficiency Unidentified Renewable Thermal Unmanaged Load SD 9 Carbon Footprint Carbon Emissions (1000 Metric Tons) GWh SMUD's Expected Long-term Resource Mix and Carbon Footprint (2015 -2030)