OUCOUC’’s Green Initiativess Green InitiativesGREENOVATIONS at the Orlando Science CenterGREENOVATIONS at the Orlando Science Center

October 16, 2010October 16, 2010

About OUCAbout OUC

• Began serving utility customers in 1923– Currently serving over 230,000 customers throughout Orange and

Osceola Counties

• Provides both water and electricity• Governed by a 5-member board that includes City of

Orlando Mayor• Gross capacity of 1523 Megawatts• 2nd largest municipal utility in Florida

OUCOUC’’s Key Green Initiativess Key Green Initiatives

1. Corporate Sustainability2. Renewable Energy

Demonstration Projects3. Customer Solar

Programs4. Electric Vehicle Projects

and Partnerships

OUC Corporate Sustainability PlanOUC Corporate Sustainability Plan• Goals

– Operational Savings– Improved employee recruitment and retention– Reduced regulatory risk– New business opportunities– Opportunity to lead by example– Reduced waste and emissions from our facilities

and operations– Healthier working environment– Happier customers

• Current Programs– Conducted GHG Inventory– Recruited internal sustainability team– Paper Retriever fundraising program– Single stream recycling at all facilities– Teleconferencing options– Biodiesel and electric vehicles for fleet

OUCOUC’’s New Administration Buildings New Administration Building

• Opened October 2008• LEED Gold Certification• Key Features

– Low-E Windows– Under Floor Air Plenum– Cistern– Use of recycled materials– Preferred efficient vehicle

parking– Solar-powered EV charging

stations– Solar hot water– 32 KW PV System– Window film

OUCOUC’’s Renewable Energy Business s Renewable Energy Business ObjectivesObjectives

• Balance sustainability with affordability and reliability

• Provide a hedging strategy against potential regulatory requirements through the acquisition of renewable energy credits (RECs) and Carbon Offsets

• Leverage state and federal incentives offered to encourage the development of customer-sited assets

• Offer an option to customer requests for environmentally-friendly energy investments

• Pursue least-cost planning for future energy investments

Key Renewable Energy Key Renewable Energy Integration ChallengesIntegration Challenges• High Utility Reserve Margin

– OUC currently maintains 130% required energy capacity– No need for power until 2020 due to slower growth rates and

customer conservation– Heavy base load generation (coal)– Low avoided energy rates (fuel only)

• Lack of Government Regulation– No state or federal RPS– No carbon legislation

• Higher Cost of Renewable Generation– Renewables currently cost more than primary generation sources

making it more challenging to integrate without regulation

OUCOUC’’s Biomass Energy Projectss Biomass Energy Projects

• Orange County Landfill Methane Recovery Project

– Currently displaces 3% of fuel required for either of Stanton’s coal units ~

– Expanding to 22 MW

• Harmony Hybrid Solar/Biomass Power Plant

– 5 MW Plant will be located in Harmony’s Florida Sustainable Energy Research Park

– Uses biomass gasifiers and concentrating solar to generate electricity

– Includes educational partnership with FSU

OUCOUC’’s Existing Solar Projectss Existing Solar Projects

• Solar Electric Vehicle Charging Station at OUC– 2.8 KW– Provides 80% solar fraction for

charging• Solar on Utility Poles

– Partnership with Petra Solar– Uses micro-inverters– 10 systems installed

• Stanton Solar Farm– 5.91 MW DC (600 homes)– 22% Capacity Factor– Currently in permitting

OUCOUC’’s Customer Solar Programss Customer Solar Programs

• Solar Production Incentive– Provides incentives for

producing energy from solar hot water and PV

– Over 300 customer participants

• Solar Billed Solution– Provides no/low interest

loans through the Orlando Federal Credit Union (OFCU)

OUC Customer Solar Production IncentivesOUC Customer Solar Production Incentives

• $.03/KWH for all energy produced from solar thermal systems

• $.05/KWH for all energy produced from solar PV systems

• Requires customer contract• OUC now offers a $250

credit to customers to compensate for the cost of the BTU meter installation.

• Currently re-evaluating incentive levels

OUC/OFCU Solar Loan ProgramOUC/OFCU Solar Loan ProgramSolar Thermal

Systems(Up to $7,500)

Term Rate

36 Months 0.00%

60 Months 2.75%

84 Months 4.00%

Solar PV Systems(Up to $20,000)

Term Rate

36 Months 2.00%

60 Months 4.00%

84 Months 4.75%

120 Months 5.50%

Proposed Community Solar Proposed Community Solar ProgramProgram

Benefits of Community SolarBenefits of Community Solar

• Reduces cost of solar through economies of scale• Provides rate stability over the life of the project• Provides an opportunity for customer education• Requires no upfront customer investment• Eliminates site-related barriers to participation

– Multi-family residences– Renters– Shaded sites– Concerns about roof-penetrations or aesthetics

Community Solar Program DetailsCommunity Solar Program Details• Solar array size of 500 KW (based on usable

square footage)• Installed on a publicly visible, easily accessible

site• Target fixed rate to customer of $0.13 to $0.15 per

KWH – $.02 premium over current average residential rate

• Customers that use less electricity than their share of the system produces receive a credit on their bill at the retail rate

Commercial Solar Aggregation Commercial Solar Aggregation ProgramProgram• OUC works with one vendor to install solar on multiple commercial buildings• OUC buys down the solar rate• No upfront cost to participate• Fixed monthly rate for 20+ years• Commercial customer retains energy and demand savings• Price reductions from project aggregation• OUC owns environmental attributes

OrlandoOrlando’’s Green Future Alliances Green Future Alliance• Received USDOE Solar Cities

Grant to promote solar• Established an integrated

energy alliance with the City of Orlando and Orange County Government to promote green market transformation in Central Florida

• Conducting a series of energy training courses and stakeholder workshops to determine best practices and needs of our community

OUCOUC’’s Electric Vehicle Readiness s Electric Vehicle Readiness PlanPlan

• Develop a flexible framework and visionary roadmap for successfully integrating electric vehicles into OUC’s business environment

• Determine best practices for promoting efficient charging management policies and procedures

• Develop a robust information management procedure for obtaining, analyzing and sharing quantitative and qualitative data from charging stations, host sites and vehicle owners

• Collect high quality market intelligence to anticipate key influencing factors for future planning

Charge Point America PartnershipCharge Point America Partnership• Provides EV charging stations for

public, commercial locations to encourage consumers to purchase Electric Vehicles

• Partnering with Project Get Ready Partners to deploy 300+ charging stations in Central Florida

• Utilized competitive site selection process for commercial locations

• Grant pays for equipment OUC owns charging equipment and takes easement for charging station OR provides customer with an installation rebate of up to $1,300

• 18 month deployment program ending 10/31/2011

OUC Fleet InvestmentsOUC Fleet Investments

• One Toyota Prius Plug-In Conversion

• 10 Nissan Leafs (on order)• Four hybrid bucket trucks

on order• One hydraulic hybrid

battery pack unit• Installing charging stations

at all main OUC facilities to grow our fleet

Customer EV Engagement StrategiesCustomer EV Engagement Strategies• Seamless Customer Experience

– Get Ready Central Florida– FAQs– Vendor Network– Permitting and Installation

Guidelines

• Considering Options for Incentives– Up-front rebates– Monthly demand response related

payments– Price Signals (TOU Rate)

CONTACT INFORMATION

Jennifer Szaro

jszaro@ouc.com

reliablygreen@ouc.com

(407) 423 – 9100 Ext. 2086