About Green Mountain

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+

CCA’s “Universal” Features

. 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

Differences Between the States

. 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

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

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

CCA is the path forward.

For More Information:

Shawn Marshall, Director [email protected] www.LEANenergyus.org (415) 888-8007 (o) (415) 786-9118 (m)

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

• 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 

Buying Power BEFORE AFTER

Operations Process Overview

1) Community requests initial 5) Opt out list mailing list returned to 9) Sends from ComED community customer list 2) Scrubs list 6) Community back to for addresses sends opt out Supplier. outside list to ComEd community Community Supplier Community ComEd Community Supplier 7) Final Scrub. 10) Enrolls 3) Mail opt out Provides accounts material Account # list 11) Welcome (Information 8) Returns list letter packet letter, opt-out to Community 12) Provides postcard, ongoing service FAQ’s, Term & and support conditions) 4) 2-3 week opt out period

There's energy in everything we do!

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.

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

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DOUG SEMMES DIRECTOR, RETAIL RESIDENTIAL SALES - EAST WHO IS GREEN MOUNTAIN ENERGY?

• Nation’s longest-serving renewable energy retailer

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

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

2 CUSTOMER IMPACT

• Since we were founded, our customers have helped prevent as

much CO2 pollution as:

planting 2.9 million 17.6 million 3.6 million cars households trees, or off the road for 1 year, or turning off their lights for 1 year

• Green Mountain customers have also helped develop 85 new wind and solar facilities across the nation

3 TRANSPARENT PRODUCTS AND OPERATIONS

• 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

4 INNOVATIONS AND INSPIRATIONS

• 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

5 GREEN MOUNTAIN ENERGY SUN CLUB® • 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

6 CONTACT

Doug Semmes [email protected] 212-710-2656