Central Valley

Financing

Authority

Annual Meeting (Carson Project)

Date: April 19, 2018

Time: Immediately following the SMUD Board meeting

scheduled at 9:00 a.m.

Location: SMUD Customer Service Center

6301 S Street, Sacramento, CA

Powering forward. Together. *SMUDm

Members of the public wishing to address the Commission are requested to complete a signup slip at the lobby information center. Statements shall not exceed three minutes unless the President grants special permission.

CENTRAL VALLEY FINANCING AUTHORITY (Carson Ice-Gen Project)

6301 S Street Sacramento, California 95817

916-732-7143

NOTICE OF ANNUAL MEETING AND AGENDA

TO: Commissioners Brandon D. Rose, Nancy Bui-Thompson, Genevieve Shiroma, Rob Kerth, Dave Tamayo, Bill Slaton, and Prabhakar Somavarapu

The ANNUAL MEETING of the Commissioners of the Central Valley Financing Authority (CVFA) is called to be held on Thursday, April 19, 2018, immediately following adjournment of the regular meeting of the Board of Directors of the Sacramento Municipal Utility District (SMUD) scheduled at 9:00 a.m. in the Rubicon Room of the SMUD Customer Service Center at 6301 S Street, Sacramento, California, to review, discuss and act upon, as appropriate, the following.-

Approve agenda.

2. Approve minutes of March 15, 2018, special meeting.

3. Review of activities and performance during the 2017 calendar year.

4. Review of financial performance for the year ended December 31, 2017.

5. Statements from the visitors (non-agenda items).

6. Summary of Commission Direction.

Dated- April 13, 2018

67,bl- Gregg FiNmain, President "90~ Central Valley Financing Authority

Members of the public shall have three (3) minutes to provide public comment on items on the agenda or items not on the agenda, but within the jurisdiction of CVFA. The total time allotted to any individual speaker shall not exceed nine (9) minutes.

Members of the public wishing to inspect public documents related to agenda items may call 916-732-7143 to arrange for inspection of the documents at the SMUD Customer Service Center, 6301 S Street, Sacramento, Califomia.

NOTE: Accommodations are available for the disabled public. If you need a hearing assistance device or other aid, please call 916-732-7143 in advance of this Commission meeting.

i~

DRAFT Sacramento, California

March 15, 2018

The special meetings of the Commissioners of the Central Valley

Financing Authority (CVFA), the Northern California Gas Authority Number 1 (NCGAl),

the Sacramento Cogeneration Authority (SCA), the Sacramento Municipal Utility District

Financing Authority (SFA), and the Sacramento Power Authority (SPA) were held in the

Rubicon Room of the Sacramento Municipal Utility District (SMUD) Customer Service

Center, 6301 S Street, Sacramento, California, at 7:00 p.m.

Presiding: President Fishman

Present: Commissioners Rose, Bui-Thompson, Shiroma, Tamayo, and Slaton

Absent: Commissioners Kerth and Somavarapu

Present also were Arlen Orchard, Chief Executive Officer and General

Manager; Laura Lewis, Chief Legal Officer and General Counsel; members of SMUD's

executive management; and SMUD employees and visitors.

At the request of President Fishman, Laura Lewis briefly reviewed the

purpose, organization and responsibilities of the CVFA, which currently owns and

operates the Carson Ice-Gen Project; the NCGA1, which is authorized to acquire,

construct, and operate natural gas related facilities and engage in the purchase and

sale of natural gas; SCA, which currently owns and operates the Procter & Gamble

Cogeneration Project; the SFA, which currently owns and operates the Cosumnes

Power Plant; and SPA, which currently owns and operates the cogeneration plant at the

Capital Commerce facility in Sacramento.

As required by state law, the Chief Legal Officer and General Counsel

notified the public that the Commissioners of CVFA, NCGA1, SCA, SFA and SPA were

not receiving additional compensation as a result of the Commission meetings.

President Fishman called for approval of the agendas of all five agencies.

Commissioner Slaton moved for approval of the agendas, Commissioner Tamayo

seconded, and the JPA agendas were approved by a vote of 6-0, with Commissioner

Kerth absent.

President Fishman then called for approval of the minutes of the

December 21, 2017, special meeting for the following agencies- CVFA, NCGA1, SCA,

SFA, and SPA. Commissioner Rose moved for approval of the minutes, Commissioner

Slaton seconded, and the minutes were approved by a vote of 6-0, with Commissioner

Kerth absent.

President Fishman called for statements from visitors for items on the

agenda, but none were forthcoming for any of the agencies.

President Fishman turned to the Consent Calendars of CVFA, NCGA1,

SCA, SFA and SPA. Commissioner Shiroma moved for approval of the consent

calendars, Commissioner Tamayo seconded, and the following Resolution was

approved by a vote of 6-0, with Commissioner Kerth absent.

RESOLUTION NO. 18-CVFA-03-01

BE IT RESOLVED BY THE COMMISIONERS OF THE CENTRAL VALLEY FINANCING AUTHORITY:

Section 1. The third Thursday of April is hereby established as the

regular annual meeting date of the Central Valley Financing Authority, said annual

meeting to be held in the Auditorium of the Sacramento Municipal Utility District's

headquarters building located at 6201 S Street, Sacramento, California, unless

otherwise designated on the notice and agenda, and immediately following adjournment

of the regular meeting of the SMUD Board of Directors scheduled to begin at 9:00 a.m.

Section 2. Resolution No. 92-CVFA-7-1 is superseded in its entirety.

Adopted: March 15, 2018

INTRODUCED BY COMMISSIONER SHIROMA

SECONDED BY COMMISSIONER TAMAYO

COMMISSIONER AYE NO ABSTAIN ABSENT

FISHMAN x

ROSE x

BUI-THOMPSON x

SHIROMA x

KERTH x

TAMAYO x

SLATON x

President Fishman called for statements from visitors for items not on the

agenda, but none were forthcoming for any of the agencies.

No further business appearing, the meetings were adjourned at 7:04 p.m.

Approved.-

President Secretary

SSS No. CVFA 18-004 Central Valley Financing Authority

BOARD AGENDA ITEM STAFFING SUMMARY SHEET

Commiftee Meeting & Date

Board Meeting Date

A ri 19, 2018

TO TO

1 - Eric Poff 6. Jennifer Davidson

2. Ross Gould 7. Frankic McDermott

3. Sandra Moonnan 8.

4. Ron Jeticich 9. Legal

5. 1

Noreen Roche-Carter 10. 1 CEO & General Manager

Consent Calendar X I

I Yes No If,,, whedule a dry run presentation. Budgeted I

X Yes No (Ifno, explain in CostIBudgeted

section.) FROM (IPR) DEPARTMENT MAIL STOP EXT.

1 4822 DATE SENT

Laurie Johnson Power Generation / Thermal Generation EA405 03/22/18 NARRATIVE:

Requested Action: Provide Annual Project Performance Report to the Board of Directors

Summary: Present summary of CVFA Cogen I operations during the 2017 calendar year.

Board Policy: SD-2 Competitive Rates, SD-4 Reliability, SD-6 Safety, SD-7 Environmental Protection. (Number & Title)

Benefits: Keeps Board Members informed regarding the ongoing results of project operations.

Cost/Budgeted: None

Alternatives: Provide Written Report

Affected Parties: Energy Supply, Accounting, Treasury, Risk Management, Legal

Coordination:

Presenter: Eric Poff, Manager, Thermal Generation Assets

Additional Links:

CVFA 2017 Annual Operating Report F4—ffiffi

ITEMS SUBMITTED AFTER DEADLINE WILL BE POSTPONED UNTIL NEXT MEETING.

SMUD-1516 1/16 Forms Management Page 0

2017 Annual Joint Powers Authority (JPA) Report

• Central Valley Financing Authority (CVFA) • Sacramento Cogeneration Authority (SCA) • Sacramento Power Authority (SPA) • SMUD Financing Authority (SFA)

JPA Commission Meetings April 19, 2018, directly following the SMUD Board Meeting f%C,6r% fn~~~

Powering forward. Together. * SMUD

2017 SMUD Load by Resource (GWh)

2017 SMUD Load 2017 GWh Thermal (Gross) 4,747 UARP 2,462 Additional Renewable 201 Contracts & Market Purchases 4,189

Total Load 11,599

1%

Thermal

21%

UARP

Additional Renewable

Contracts & Market Purchases * smu[Y

CVFA

SCA

SPA & McClellan

SFA

m

12%

2017 JPA Total Net Generation (GWh)

2017 Total Net Generation 45612 GWh

2017 MWh GWh CVFA 287,446 287 SCA 596,343 596 SPA & McClellan 535,039 535 SFA 3,193,350 3,193 Total Generation 4,612,178 4,612

6%

* smuu

CVFA Cogen I (Carson Ice Cogen)

* smuu

CVFA Cogen I (Carson Ice Cogen)

* 99.9MW Net Dependable Capacity: o 57MW Cogeneration o 42MW Simple Cycle Peaking Unit

• GE Aero Derivative Gas Turbines (LM6000) • Operated by EthosEnergy Power Plant Services • Steam Hosts:

o Sacramento Regional Wastewater Treatment Plant (SRWTP) o Installed and commissioned a new Auxiliary Boiler in 2017 to

supply SRWTP with steam when the Combined Cycle unit is dispatched offline for economics

Renewable Energy Twist: o SRWTP's Anaerobic Digesters create renewable biogas o CVFA treats it to pipeline quality o SMUD transfers the digester gas to CPP for generation * smuu

CVFA Cogen I (Carson Ice Cogen)

Operational Performance Data: 2016 2017 Equivalent Forced Outage Factor (EFOF) 0.54% 0.16%

IEEE Equivalent Availability (on line or ready to run) 94.91% 88.36%

Overall Capacity Factor (based on 99.9 MW) 43.40% 32.90%

Combined Cycle Capacity Factor (based on 57.4 MW) 61.35% 48.40%

Peaker Capacity Factor (based on 42.5 MW) 4.86% 2.67%

Generation Compared to Budget 98.90% 121.00%

Ll There were no lost time or OSHA recordable injuries at the Carson Cogeneration Project during 2017.

LJ Lower Availability due to the scheduled Steam Turbine Major Overhaul in 2017. Ll Electrification of Glacier Ice process allows more steam to be diverted to the steam turbine to

produce more MWHs.

LJ The CVFA peaker starting reliability was 100% in 2017 (53 successful starts).

LJ All other permit & regulatory requirements were satisfactorily met during 2017.

* SMUEY

EA I

VA Central Valley Financing Authority - P.Q.-Box 1,5830, -Sacramento, CA 9-5852-1830

C'Vf*A Cogeneration Project

Statements of Revenues, Expenses and Changes in Net Position

Year Ended December 31, 2017 (in millions)

Actual Budget

Operating Revenues:

Power Sales to Member $ 29.8 $ 26.0

Gas Sales to Member 1.6 1.7

Steam Sales & Other 0.6 0.6

Total 32.0 28.3

Operating Expenses:

Fuel 13.9 12.5

Operations 5.3 5.9

Maintenance 1.5 2.9

Administrative & General 1.0 1.1

Depreciation 5.5 6.0

Total 27.2 28.4

Operating Income 4.8 (0.1)

Net Interest Expense (0.9) (0.9)

Change in Net Assets before

MemberActivity (1.0)

Net Member Distributions

Change in Net Assets

$ 3.9 s (1.0)