Peter WeigandChairman & CEO

Skipping Stone

714-965-0800

Presentation for the

California Cities Managers Association

California Laws & SCE

Changing Your Energy World

Email peterw@skipppingstone.com for a copy of these slides

Content

The Traditional Electric Grid

The Evolving Smart Grid

Major Smart Grid Impacts On Cities

Solution Options

Smart Cities – The New Buzz

Where to Turn

About Skipping Stone

2Proprietary & Confidential

The Traditional Electric Grid

Generation

Transmission

Substations

Distribution

Customers

Key Attributes:

- Fossil Fuel or Nuclear Generation

- Predictable Rate Structures

- Infrastructure Intensive

Key Problems:

- CO2 Emissions & Pollution

- Very Costly to Maintain

- Subsidized Certain Customers

- Overbuilt to Serve

- Very Expensive & Non Responsive

The Evolving Smart Grid

Your Energy World Now Looks Completely Different

Laws & Smart Grid Impacts on Cities

Renewable Portfolio Standards (CA)

Preferred Resources Generation Mandate (CA)

Time of Use Rates & Critical Peak Pricing (SCE)

EO-16 – 1.5M Zero Emission Vehicles in cities by 2025 (CA)

AB 2514 – Requires utilities to install 1,325 MW electric storage

LIHEAP – Low Income Programs (FED)

HUD reduces from $5B to $3B funding for low income bill assistance and energy

efficiency spending on insulation, efficiency, etc.

5Bottom Line: Costs are going up and its more complex than ever!

Solution Options

SB 43 – Buy your own Renewable Generation – off site

On Bill Financing

0% interest up to 10 years on EE projects and your costs for SCE incentive programs

AB 117 – Community Choice Aggregation

Take control by buying wholesale and reselling to your citizens and businesses

CEC Energy Partnership Program

Up to $20k in funding for cities to develop an energy plan

Up to $20k for schools (k-12) to develop an energy plan

SCE Incentive Programs

Numerous Energy Efficiency, Demand Response and Cities Programs

EE & ET Project Finance

Vendors finance efficiency and/or technology out of guaranteed savings 6

Smart Cities - Buzz

Certain Large Solutions Companies have created a buzz around

Smart Cities

What is a Smart City?

Fiber to everyone

100% Energy Efficient

100% Control of Energy Usage

Water, Roads, Infrastructure All Work Together

Self Generation with Renewables

Much More

How Much Does Nirvana Cost?

Not to Worry, it’s Cheap!

Solution Company Floats a Bond with the City to pay for it all

Solution Company guarantees cost of bond is paid for in energy savings

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Where to Turn

The Energy Coalition

www.energycoalition.org

Local Govt. Sustainable Energy Coalition

www.lgsec.org

Statewide Energy Efficiency Collaborative (SEEC)

www.californiaseec.org

Local Governments for Sustainability (ICLEI)

www.icleiusa.org

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Or ask an experienced energy consultant for help

All of our consultants are energyindustry veterans who now choose toconsult. Our specialty is collaboratingwith clients on ideas, strategies andtactics, and then providing the array ofservices required to turn those ideasinto successes.

Market Focus

Over 230 Clients WorldwideAtlanta Boston Houston Los Angeles

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