In-conduit Hydropower: Public Sector meets Private Inventions Matt Swindle, CEO, NLine Energy f or Three Valleys Mun

1. In-conduit Hydropower: Public Sector meets Private Inventions Matt Swindle, CEO, NLine Energy for Three Valleys Municipal Water District Urban Water Institute Palm Springs, CA

2. Agenda • About TVMWD • Existing Hydropower Unitand Operations • Opportunity for New Hydropower Development • TVMWD Partnership with NLine Energy • About NLine Energy

3. About TVMWD • Wholesale, municipal water agency formed in 1950 located in Claremont, CA serving 13 retail water agencies with a population of 525,000 • Supplement and enhance local water supplies ~70,000 AF/Year • Surface water treatment plant – 25 mgd capacity (~20,000 AF/year) • Hydroelectric Facilities - 4,000,000 kWh/year

4. Miramar Hydro Station

5. Miramar Hydro Station • Commissioned in 1987 • 535 kW hydro station under Qualifying Facilities (QF) agreement with SCE • Power offsets onsite electrical use • Flow provided by the MWD Rialto Feeder – variable pressure & flow • Operates mainly in winter(min. pressure = 60 psi)

6. Opportunity for New Hydro Development • Hydraulic grade changes in MWD feeder over time • Significant bypass flows during “prime” summer months ($value of energy: summer vs. winter) • Decreased power generated at Miramar hydro due to lower operating pressures in MWD feeder • Loss of revenue when large hydro unable to operate • Problem statement – “Is it technically and financially feasible for TVMWD to capture bypass flows with new hydro unit(s)?”

7. Miramar: Pressure & Flow Analysis(2007) Existing Hydro Operation Pmin = 60 psi 0 20 40 60 80 100 120 Pressure (psi) 10 cfs 28 cfs 0 5 10 15 20 25 30 35 40 45 Flow (cfs)

8. TVMWD Partnership with NLine Energy • ACWA’s Small Hydro Approved Preferred Provider • Provided no-cost preliminary Feasibility Assessment (Jun. – Oct. 2011) • Tasked to perform more detailed analysis (Oct. 2011) • Two (2) pump-turbine units rated at combined 292-kW • Capture bypass flows • Offset new groundwater well pumping costs

9. Timeline • Board approved Development Services Agreement (DSA) with NLine using CA Code 4217 - June 2012 • Design complete – June 2013 • SCE interconnection approved – October 2013 • FERC conduit exemption issued – November 2013 • SCE SGIP grant reservation – December 2013 • Construction contract issued – December 2013

10. Project Attributes • Sized to meet current and future flows and pressures • Serves on-site load requirements through self-generation • Annual Generation ~ 580,000 kWh, Cost Estimate ~ $1.45M, Annual Revenue ~ $110k, Payback period ~15 yrs • ~$100k required SCE interconnection upgrades • Opportunity to secure outside funding - Self-Generation Incentive Program (SGIP) grant ($125,000) • Commissioning planned for July 2014

12. NLine Energy: Overview • Small-hydro singular focus • In-conduit (pipelines) • Conduit (canals) • Retrofit / Rehabilitate existing hydro • Small pumped hydro storage • California-based business • Association of California Water Agencies (ACWA) Approved Preferred Small Hydro Provider • 25 MW development pipeline

13. Questions?