EASTERN SHORE SOLAR December 10, 2014

Cover

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Presentation Agenda

High Level Context Project Review Focus Areas Protective Measures Summary Q&A

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ESS Project

80 MW of standard solar panels Proven technology… Like thousands of projects Clustered on 900 acres… Scale is essential to economics Competes with fossil energy… Summer peak advantage Power to Electric Grid… 20,000 homes equivalent Removal & Restoration

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Who is Community Energy

Privately held: 15 years in the renewable energy business

Over 1,000 MW of wind and solar… 300,000 homes… A veteran

235 MW of solar built/under construction in 2013 and 2014

Four projects of similar size in four states

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Organizational Chart

Community Energy Holdings, Inc.

Community Energy Renewables, LLC

Eastern Shore Solar I LLC

Eastern Shore Solar II LLC

Eastern Shore Solar III LLC

Eastern Shore Solar IV LLC

Eastern Shore Solar LLC

Parent Company

Holder of all project companies

4 individual project companies were formed to own the assets/rights of each of the 4 projects that were submitted to PJM in February 2010.

Owner of shared facilities (Connector Station)

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Why Accomack County?

Some of best sun in 13 state PJM grid

With trackers, best production for summer peak needs

Good, flat land

Can achieve necessary scale

PJM studies show very favorable interconnect at Oak Hall

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Approval Process

Accomack County • Conditional Use + Final • Small Rezoning • AG and Forestal • Tax Ordinance

VA Permit By Rule • VA Dept. of Environmental Quality • VA Dept. of Game & Inland Fisheries • VA Dept. of Conservation & Recreation • VA Dept. of Historical Resources

PJM 13 State Power Grid

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VA Permit By Rule

› Efficient Virginia permitting for Renewable Energy Projects › DEQ has authority rather than State Corporation Commission › Environmental, wildlife, habitat, cultural and historic review › Public Review and Input › Project information to be made publically available for 30 days

and a Public Meeting will be held. Likely late Jan / early Feb

“…our twin statutory goals: to promote renewable energy and to protect natural resources.”

– 9/15/10 DEQ letter announcing PBR

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PJM Electric Grid

• 13 States • 61 Million Customers • 170,000 MW • Under 1/2% Renewable

SOLAR & WIND

• 1200 Generators • Balanced Real Time • Electrons can cross long distance • Electrons typically stay close

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PJM Regulatory Studies

Very regimented… Same all forms of power

Computer model of Grid, Engineering design by PJM & Delmarva Power, according to strict rules and process

Feasibility Study / Impact Study / Facility Study (2010 through Aug 2014)

Signed Interconnect Agreement Sept 2014. $$ Security for Engineering & Construction

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PJM Questions

Price Effect? • No price increase or decrease to A&N Customers.

ESS competes with conventional power

Back-Up Power Needed? • No need for backup power. PJM is < 1/2% renewable.

2014 Study

Impact to Chesapeake Peaker Plant / Natural Gas Pipeline?

Solar Project will not harm • Analysis by Scott Gass, PowerGEM.

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Electric Grid & Nat Gas

Pool of 175,000 MW of generation

80 MW large for solar, small for Power Generation

Impact not expected on 315 MW Chesapeake Peaker Plant (Peaker / Natural Gas)

Network Studies by PJM & Delmarva Power

Concerning NG pipeline and Chesapeake 315 MW Peaker • Simulations of fall, winter, spring summer peak with and without 80 MW

of Solar

• No impact on Chesapeake or NG pipeline viability

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Project Details

George “Ed” Young, P.E. – Location & Civil Engineering

Steve Hazel – Site Overview / Electrical & Construction

Matthew Rutt, P.E. – Example Area Layout

David Krupp – Cluster Layout & Landscape Buffer

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Project Location

Onley

New Church

Metompkin

Atlantic

Belle Haven 14

Site Overview

Clusters (4 projects)

Oak Hall Substation

Transmission Lines

Cost Effective

Native Landscaping

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Electrical Overview

Solar panels like on Homes Construction Process DC to AC Inverters UG Wires to Connector Station Connector Station to Oak Hall

Substation 24/7 Monitoring Orientation for First Responders

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Panels & Racking

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Inverter Stations

DC to AC

Insider Array Area

Wires Under Ground

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Connector Station

1/3 Size of Oak Hall Substation

Landscaping

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Construction

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Example Area

Clusters Repeat

Clusters connect via under ground wires

Representative Panel Layout

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Landscaping Schematic

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Landscaping Burger Landscape Architects (Onancock)

Native Plants of Accomack and Northampton Guide Virginia Coastal Zone Management Program, Dot Field

Native Plants: Landscape Buffer

Wildlife Habitat: Grasses / Shrubs / Trees

Design Criteria • Near Field / Far Field • Residential Views • Roadside Views • Connector Station

Final Design with Final Site Plan 23

Native Plant Profile Example Native Evergreen Trees (Example Plant Profile)

Native to VA Eastern Shore

Recommendations from Native Plants of Accomack and Northampton Guide

Habitat for birds, butterflies, etc.

Local Procurement

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Landscaping

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Landscaping Native Habitat

Hawk Enjoying Landscape Habitat

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Grass Cover

Low Maintenance Drought tolerant Soil Stabilization Groundwater Infiltration Organic Contribution Noxious Weed Control

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Focus Topics

Agriculture

Natural Resources

Infrastructure

Economy

Fit to Comprehensive Plan

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Agriculture

Land: < 1% used for 30 years / Soil Enhanced Landowner: Steady Secure Income County: Enhanced Tax Base Ag Business: Context of 30% crop variability,

+/- 25% fuel cost, weather Visual: Clustered & Buffered

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Natural Resources

In depth parallel review by 4 state agencies/public hearing

No emissions & reduced water off site and to Chesapeake

Avoids wetlands, habitat and Resource Protection Area

Prime Chesapeake Waterfowl resource unaffected…WEST

Creates diverse, new habitat for ground nesting birds and butterflies

Native Trees/Shrubs/Tall-Grasses for Landscaping

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Infrastructure

No need water or sewer No schools No additional police/EMS No new roads or permanent facilities Temporary Use unlike house or retail Optimizes Existing Grid Infrastructure

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Economy

Secure annual income to Landowner/Farmer $125M capital project with local hire of labor,

restaurants, landscape, hotels, tourist, etc. 400 + Construction Jobs / ESCC Training Land assessment for taxes $2-3k to $14k Media promotes AC, tourism, education benefits

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Comprehensive Plan

New, diverse, clean business to AC Compatible with AG culture and stabilizes family

farm Protects natural resources/reduce AG runoff to

Chesapeake Provides for new solar career opportunities Stable, diverse public revenue w/o added costs

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Protective Measures

Full safety analysis by PJM and Delmarva Power

First Responder Training Avoid wetlands and habitat Soil & Erosion during construction Visual landscape buffering & setbacks Decommission: Remove / Restore

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CUP Conditions

Performance Guaranties First Responder Orientation Landscape Buffer Plan Site Operations & Maintenance with Noxious

Weed Control Removal & Restoration with Financial Security

Requirements

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Proffers (for Rezoning)

Solar Energy Array… County Ownership Public Education at project and nature walk ESCC career opportunities

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Benefits to AC

• $125m capital project, with economic multiplier • Secure income to Landowner/Farmer • Tax diversified…$100,000 annual plus rollback • Solar Project Proffer ($50,000) • Education Area • Curriculum with Community College • Major opportunity for media promotion

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Summary

Thoughtfully designed, proven technology, proven company

Fit to Comprehensive Plan Solid income to Landowners and AC and does no

harm… VA Permit By Rule assurance Clean solar energy addresses VA Energy Plan and

utility needs… PJM assurance AC can be proud of this project

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Thank You

EASTERN SHORE SOLAR December 10, 2014

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