Solar Power for Water Interests

TWCA 68th Annual ConventionDallas TexasDallas, Texas

M h 9 2012March 9, 2012

Photovoltaics (PV)Photovoltaics (PV)

EPC Services Provided

• Feasibility studies• Design & Engineeringg & g g• Equipment supply• System installation• System installation • Performance testing & commissioning • Ongoing O&M

QualificationsQualifications• 12+ Years in Business• ~450 installations • ~9 MW installed capacity p y• TDLR Licensed Electrical Contractor• TBPE Registered Engineering Firm• TBPE Registered Engineering Firm• GSA/TXMAS Schedule Holder Status

Who?Who?

Ft. Sam Houston

NAVFAC

Ft. Worth ISD

TSTC Waco

TSTC Harlingen

Smithville

UT Austin Facilities Building

Hill Air Force Base

Bluff’s Landing

Shallowater ISD

UT Austin Manor Parking

UT Austin Manor Parking

UT Arlington

UT Arlington

Why?Why?

Why Clients are Choosing PVWhy Clients are Choosing PV• Leverage Federal Tax Incentives & Private Capital

– 30% Investment Tax Credit– Accelerated Depreciation (MACRS) ~25-30%

• Public Relations

• Local Utility Rebates

• Educational/Community Value

• LEED

• Relatively long term perspective on energy rates/costs

• Hedge Against Commodity Risk– 20-25 year budget Transparency

• Lower Utility Costs• Lower Utility Costs

How?How?

Procurement PathsProcurement Paths• Direct Purchase

– Up-front capital requirement– High single/low double digit return on that capital

Fi /L• Finance/Lease– Lease payment offset by utility cost savings– Asset converts to site host at lease endAsset converts to site host at lease end

• Purchase Power Agreement– 2 MW+ installed capacity – “break point” for pricing scale2 MW installed capacity break point for pricing scale– $0.10-$0.12 per kWh fixed or with 2%-3% annual escalator – 20-25 year term

O&M C d b O /O t– O&M Covered by Owner/Operator

Texas Population Growth(Historical)

Texas Population Growth(Forecasted)

Thank Yo !Thank You!