Co-ops & Municipalities: Models for Success in the Midwest

Nick Hylla, Midwest Renewable Energy Association

Nathan Franklin, DairylandCooperative Electric

Pamala M. Sullivan, American Municipal Power, Inc.

Andy Olsen, Environmental Law & Policy Center

Neil Placer, Placer Consulting Services LLC

Protecting the Midwest’s Environment and Natural Heritage

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Andy Olsen

Solar Power PV Conference & Expo

Chicago, IL

November 10, 2016

Protecting the Midwest’s Environment and Natural Heritage

ELPC’s Farm Energy Program

Protecting the Midwest’s Environment and Natural Heritage

Co-op Solar Leadership

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Illinois Indiana Iowa Michigan MinnesotaWisconsin

Midwest Co-op Solar Commitments(MW)

Protecting the Midwest’s Environment and Natural Heritage

Protecting the Midwest’s Environment and Natural Heritage

Solar Farm Land Stewardship

• What happens to this soil now?

• What will this soil be like when the solar farm is gone?

• How does water behave?

Protecting the Midwest’s Environment and Natural Heritage

Solar Land Stewardship

• Solar can increase eco-system services

• Include low-mow pollinator gardens

• Build soils

• Reduce stormwater runoff

• Increase diversity

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Protecting the Midwest’s Environment and Natural Heritage

Land Stewardship Helps Permitting

• Land care builds community support

• Land care is water care

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Protecting the Midwest’s Environment and Natural Heritage

On-Bill Financing

• On-Bill Financing delivers cash-flow

– Recover improvement costs on utility bill

– Must realize cash flow

• Tariff-based model removes barriers

– Helps more members

– Avoids consumer lending role

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Neil Placer

Solar Power PV Conference & Expo – Chicago

November 10, 2016

STRATEGY | DIRECTION | RESEARCH | ANALYSIS

Company Overview

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Front-end strategy development to assist

clients in shaping a proactive energy future

Bridge gaps and develop mutually

beneficial business partnerships between

electric utilities, corporations, governments,

and distributed energy resource (DER)

solutions providers

PCS

Create. Shape. Deliver.

STRATEGY | DIRECTION | RESEARCH | ANALYSIS

Finding Solar Energy’s ”Sweet Spot”

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STRATEGY | DIRECTION | RESEARCH | ANALYSIS

The Attractiveness of Solar PV

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STRATEGY | DIRECTION | RESEARCH | ANALYSIS

DER Pathway

“Stepping Stones” Approach

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DER Focus Areas How savvy is the utility?

How proactive is the utility?

Technology

Utilization

Financial Prudence

Customer Service

AMP Solar Initiatives

Coops & Municipals Models for Success

in the Midwest

Solar Power Conference

November 10, 2016

Pamala Sullivan, Executive VP Power

Supply & Generation

About AMP

• Provides wholesale power supply and services to

municipal electric utilities

• Owned and governed by its 135 members in nine

contiguous states

• Board of Trustees consists of 21 AMP members

• Headquartered in Columbus, Ohio

• Approximately 180 full-time positions at

headquarters and generating facilities

About AMP

• 2015 System Peak: 3,387 MW

• 2015 Energy Sales: 16.5 million MWh

• 2015 Power Sales Revenue: $1.1 billion

• Total Assets of more than: $5.6 billion

About AMP

• Projects-based organization

– Strategic generation asset development

– Members subscribe to projects of their choice

– All projects overseen by Participants Committee

• Financial strength

– Since 2000, all AMP construction project financing and

entity ratings have been in the “A” category

– $750 million line of credit to provide underlying support

• Operates in both PJM and MISO markets

• Equity Partner of The Energy Authority (TEA)

Prairie State Coal17%

Member Coal7%

Wind & Solar3%

Hydro (Including NYPA)16%

Fremont Combined Cycle

16%

Landfill2%

Purchased Power39%

Note:

- Member coal Includes Paducah and Princeton’s Prairie State through KMPA- Wind & Solar Includes Member Owned Solar

- Hydro Includes Member Owned Hydro

2007 2017

Landfill1% Wind & Solar

<1%

Purchased Power75%

Member Coal 17%

Hydro (including NYPA), 7%

AMPMember Energy Resource Mix (2007 – 2017)

Note:

- Member coal includes Paducah and Princeton’s Prairie State energy purchased

through KMPA

- Wind & Solar includes member contracted solar

- Hydro includes member owned hydro

- 2017 resource mix includes 60 MW of new solar 26

Solar Development

• Napoleon Solar Project (Phase I)– 3.5 MW ac in Napoleon, Ohio

– AMP developed/constructed

– COD august 2012

– Take or Pay contract with 3 Member Participants

– Financed on AMP line of credit

• AMP Solar Phase II– Multiple sites behind the Municipal Utility meter

– Initial plan was to utilize traditional tax-exempt financing

– Began exploring alternative financing structures with TEA that would include the benefits of ITC

– Opted to enter into a Joint Development Agreement and PPA with NextEra for the development of up-to 80 MW of solar

– NextEra will build, own and operate all solar sites

– AMP will purchase 100% of the output from the solar generation

– Take and Pay contracts with Member Participants

Current Status

• Executed agreements with NextEra on 4 sites– Includes largest solar

facility in Ohio – Bowling Green (20 MW)

• Performing due diligence on remaining sites for projected commercial operation in 2017

• Members still subscribing to Project