Community Choice Aggregation A Local Energy Model to Green the Grid, Boost Local Economies

and Offer Consumers a Choice

Renewable Energy Markets Conference December 3, 2014

How Does CCA Work?

CCA leverages the market power of group purchasing and local control. It allows communities to pool their electricity demand in order to purchase and develop power on behalf of local residents, businesses, and municipal facilities. CCA has the proven ability to lower electricity rates and rapidly green the grid.

Why Are Local Govts Interested?

• Responsive to environmental and economic goals • Consumer choice and consumer protection • Revenue supported, not taxpayer subsidized • Stable, often cheaper, electricity rates • Allows for rapid switch to cleaner power supply and

significant GHG reductions • Leverages additional funding sources and energy-related

investments

CCA Across the Country

CCA By the Numbers: Illinois – 726/608 Massachusetts – 39 (+35 in pipeline) (as of 10/2014) Ohio – 300+ California – 3 Rhode Island – 42 New Jersey – 36+

Enabled by State legislation

Operate as opt-out programs; opt-in optional

Local govts. as decision-makers/contracting agents

Utilities as energy delivery and consolidated billing partners

Certain State regulations and environmental mandates apply (e.g. RPS, RA)

Not taxpayer funded or subsidized

CCA’s “Universal” Features

Local public referendum vs. vote of elected County

Board or City Council

Municipality as contracting agent vs. JPA agency formation

Statutory requirements and implementing regulations vary

Program operations, procurement approach, contract(s) length varies

Utility relationships and service agreements vary

Differences Between the States

CCA as a Clean Energy Integrator

• Power Purchase Agreements (PPAs) w/ resource requirements • Renewable Energy Credits • CCA-sponsored power projects • Local Feed-in-Tariff, Net Energy Metering • Community Solar • EV charging stations and battery storage • Energy Efficiency programs(utility and state funding) • PACE and on-bill repayment options • Green Business Programs • Organizational partnerships/local job training

Successes & Challenges

Successes: Increased clean power production and GHG reductions New clean power development and investment Significant rate savings in certain markets Consumer awareness and choice

Challenges: Regulatory/legislative environments; changing rules Length of supply contracts -- can be limiting Frequent switching (in midwest/east) Market standards/QC

For More Information:

Shawn Marshall, Director shawnmarshall@LEANenergyus.org

www.LEANenergyus.org (415) 888-8007 (o) (415) 786-9118 (m)

Now is the time to take control of your local energy future.

CCA is the path forward.

2014 Renewable Energy Markets Conference Competition and Transformation in the Electric Utility Sector Doug Semmes – Green Mountain Energy Frank Orcel – Constellation Shawn Marshall – LEAN Energy

Quick Review of the Basics

1 © 2012. Constellation Energy Resources, LLC. All rights reserved. Errors and omissions excepted. Proprietary and Confidential.

• The Municipality has established an aggregation program pursuant to and in compliance with an ordinance and statute

• Supplier is certified by local regulatory body and has experience enrolling and serving aggregation programs in your market and utility

• The Municipality fully understands the product and services that the RFP is seeking

• The Municipality fully understands the timeline outlined in the RFP and the associated commitment it will take to meet those key milestones

• YOU ARE NOW IN THE ENERGY BUSINESS

BEFORE AFTER Buying Power

How it all Works

2 © 2012. Constellation Energy Resources, LLC. All rights reserved. Errors and omissions excepted. Proprietary and Confidential.

There's energy in everything we do!

3) Mail opt out material(Information letter, opt-out postcard, FAQ’s, Term & conditions)4) 2-3 week opt out period

10) Enrolls accounts11) Welcome letter packet12) Provides ongoing service and support

5) Opt out list returned to community6) Community sends opt out list to ComEd

1) Community requests initial mailing list from ComED2) Scrubs list for addresses outside community

Operations Process Overview

Community Supplier Community Supplier7) Final Scrub. Provides Account # list8) Returns list to Community

ComEd

9) Sends customer list back to Supplier.

Community

Constellation + Integrys – Aggregation Portfolio

3 © 2012. Constellation Energy Resources, LLC. All rights reserved. Errors and omissions excepted. Proprietary and Confidential.

Constellation + Integrys – Aggregation Portfolio

4 © 2012. Constellation Energy Resources, LLC. All rights reserved. Errors and omissions excepted. Proprietary and Confidential.

Disclaimer

The information contained in this document has been obtained from sources which Constellation NewEnergy, Inc. (“CNE”) believes to be reliable. CNE does not represent or warrant as to its accuracy or completeness. All representations and estimates included in this presentation constitute CNE's judgment as of the date of the presentation and may be subject to change without notice. This presentation has been prepared solely for informational purposes. CNE does not provide, and is not providing, advice regarding the value or advisability of trading in “commodity interests” as defined in the Commodity Exchange Act, 7 U.S.C. §§ 1-25, et seq., as amended (the “CEA”), including futures contracts, swaps or any other activity which would cause CNE or any of its affiliates to be considered a commodity trading advisor under the CEA. CNE shall not be responsible for any reliance upon any information, opinions, or statements contained herein or for any omission or error of fact. This document shall not be reproduced (in whole or in part) to any other person without the prior written approval of CNE.

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GREEN MOUNTAIN ENERGY COMPANY REM: COMPETITION AND TRANSFORMATION IN THE ELECTRIC UTILITY SECTOR

DOUG SEMMES

DIRECTOR, RETAIL RESIDENTIAL SALES - EAST

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• Nation’s longest-serving renewable energy retailer

• Our Mission: Use the power of consumer choice to change the way power is made

WHO IS GREEN MOUNTAIN ENERGY?

Cleaner Energy Products (Illinois, Maryland, New Jersey, New York, Oregon, Pennsylvania, Texas)

RECs, Carbon Offsets, and Sustainable Solutions for commercial customers in all 50 states

greenmountainenergy.com

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• Since we were founded, our customers have helped prevent as much CO2 pollution as:

• Green Mountain customers have also helped develop 85 new

wind and solar facilities across the nation

CUSTOMER IMPACT

planting

3.6 million trees, or

2.9 million cars

off the road for 1 year, or

17.6 million households

turning off their lights for 1 year

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• Sustainability Reports – track every year of our operations, available online, one of the only retailers to do so

• Voluntary Product Portfolio Audit – 3rd party verifies the quality and integrity of all our products each year

• Renewably powered and Carbon Neutral – our business operates with a zero carbon footprint; HQ is LEED Platinum

TRANSPARENT PRODUCTS AND OPERATIONS

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• Fully dedicated to cleaner energy – First in Texas (2002) and NYC (2009)

• First 100% solar electricity plan – SolarSPARC™ in Texas (2013) and NY, PA (2014)

• Proud PGE Partner – Most renewable power customers + sold more renewable energy in 2012 than any other utility in the United States

• Famous Customers – Empire State Building signed at a time when it was NYC’s largest commercial purchaser of 100% renewable energy

INNOVATIONS AND INSPIRATIONS

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• Donating $3M in solar to non-profits since 2002

• Unique program funded by Green Mountain, our customers and employees

• More than 70 solar installations, including:

Houston Zoo

Habitat for Humanity

Lincoln Center

GREEN MOUNTAIN ENERGY SUN CLUB®

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Doug Semmes

Doug.Semmes@greenmountain.com

212-710-2656

CONTACT