DIVERSIFIED. \ Presentation Agenda Who we are Roof-top Solar at - - PowerPoint PPT Presentation

Cobourg Innovation Centre

"Venture 13"

Solar Presentation

May 22, 2018

Lakefront Utility

Services

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Presentation Agenda

• Who we are
• Roof-top Solar at Venture 13
• Power purchase agreement
• Next Steps

Lakefront Utility

Services

Inc.

VERIDIAN

CORPORATION

solera\

SOLAR DIVERSIFIED.

Lakefront Utility Services Inc. (LUSI)

Lakefront Utility Services Inc. (LUSI)

• LUSI is a subsidiary of the Town of Cobourg Holdings Inc. (Holdco) and a

sister company of the electricity distributor (Lakefront Utilities Inc.)

• LUSI is the non-regulated services company which includes 3 divisions —

Water, Fibre Optic and Generation Services.

• LUSI manages the water systems for 4 municipalities: Town of Cobourg,

Township of Cramahe, Haldimand Township and a portion of Hamilton Township.

• Owns and operates a fiber optic broadband network in Cobourg.
• Strategic mandate to expand non-regulated, but core, business in

generation, community power and broadband.

Lakefront Utility Services Inc.

VERIDIAN

CORPORATION

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SOLAR DIVERSIFIED.

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Lakefront Utility Services (LUSI)

Town of Cobourg

Township of Cramahe

Town of Cobourg Holdings Inc.

Lakefront Utilities Inc. Lakefront Utility

Services Inc.

(Electric Regulated (Non-Regulated)

Lakefront Utility Services Inc.

VERIDIAN

CORPORATION

soi

era,

SOLAR DIVERSIFIED.

Veridian Corporation

Veridian Corporation

• Electric utility for 9 municipalities; Pickering to Belleville to

Gravenhurst

• Shareholders are Pickering, Ajax, Clarington and Belleville
• Port Hope is a Veridian service territory
• Strategic mandate to build non-regulated business in generation,

district energy and broadband

• Own and operate roof-top solar installations under FIT
• Several CHP and district energy opportunities
• Major investment in broadband contemplated

Lakefront Utility Services Inc.

VERIDIAN

CORPORATION

SOleraVIA

SOLAR DIVERSIFIED.

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Solera Sustainable Energies Company Ltd.

Solera Sustainable Energies

• Ontario-based Solar PV energy systems specialist since 1991
• Pioneered Canadian implementation of grid-tied solar PV
• Award-winning MUSH sector solar projects
• Selected by the Ontario Power Authority to sit on their micro-generation

committee (during RESOP / FIT development)

• Design, development, operational management of PV generation projects
• Key clients include:

Veridian

Town of Aurora Toronto Hydro GO Metrolinx York Region Town of Ajax Underwriters Laboratories City of London

Lakefront Utility Services Inc.

VERIDIAN

CORPORATION

solera

SOLAR DIVERSIFIED.

Lakefront / Veridian / Solera

Partnership Description

A MEMORANDUM OF UNDERSTANDING ("MOU") was signed in October 2016 between Lakefront Utility Services Inc. ("LUST"), VERIDIAN ("Veridian") and SOL

KRA ("Solera") to form a Joint

Venture for the purposes of Generation opportunities. Each "Party" joint venture Capital and OM&A interests are as follows: Lakefront Utility Services Inc. - 42.5% Veridian - 42.5%

Solera-

15.0%

Lakefront Utility Services Inc.

VE R_I DIAN

CORPORATION

SOLAR DIVERSIFIED.

Roof-top Solar

• Solar PV (photovoltaic) produces electricity directly from sunlight
• No moving parts, no noise, negligible maintenance requirements
• Design and layout of system ensures no impediments to building
• peration / access to rooftop mechanical units
• No penetrations in roof
• Generation is maximum in the summer months correlating well with

times of maximum building load

• Solar on rooftop leverages otherwise unused space

Lakefront Utility Services Inc.

VERIDIAN

CORPORATION

solera

SUSTAINAOLE ENEY141ES COMP.,

SOLAR DIVERSIFIED.

GO Station — Ajax 300 kW Anguilla West Indies, Electric Utility 1400 Kw Airport Carport — Kingston Jamaica 100kW Claremont Community Centre / Fire Hall —City of Pickering 100 kW

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Veridian Head Office —Ajax 140 kW Veridian Carport — Ajax 10kW

Project Examples

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Innovation Centre Rooftop

Roof-top Solar Proposed Layout

• Quantity of 380 solar panels
• Low profile mounting virtually invisible from the ground
• Zero roof penetrations
• 123 kW generation capacity
• 147,000 kWh annual generation projection (year 1)

Lakefront Utility

Services

Inc.

VE RIDIAN

CORPORATION

SUSTAIN/4M, ENENCIIES COMPANY LIMIT.

SOLAR DIVERSIFIED.

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Projected Site Consumption and Solar Generation

• Based on historical data supplied by the Town, the building consumed annual average electricity of

476,000 kWh

• Rooftop solar will provide about 30% of that annual requirement
• The site is a class B customer and will realize Global Adjustment savings on a per kWh basis
• Demand charges will not be reduced as the site load is expected to remain in excess of 50kW

Month

Jan

Feb Mar 35,000 Apr , 32,000 I 1 14,440 17,560 30 May 31,000 Jun 61,000 July 37,000 Aug 40,000

Sep

53,000

L

Oct 25,000 Nov 35,000 4,920 Dec 42,000

1

3,410 38,590 31 1,355 Total

47_6,000

1

29.4%

Monthly Site Consumption With Tenant (kWh) 53,000 32,000 Monthly Solar Production (kWh per PvSyst) 4,750 48,250 31 7,140 24,860 28 11,260 23,740 31 17,600 13,400

1

31 18,330 42,670 30 19,080 16, p 12,950 9,370 140,140[ 335,860

_ 365

Post-solar Monthly Site Consumption (kWh) 17,920 31 23,110 40,050 15,630 , 30,080 # of days in month 31 30 31 30 Pre-Solar Daily Consumption (kWh) 1,710 1,143 1,129 1,067 1,000 2,033 42

1

85 1,194

50 ---

578 24 1,290 54

• 745

31 1,767 806

, 1,167

Pre-Solar Assumed Peak Demand (kW) 71 48 47 44

• 74

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,

49 1,003 42 56 Post-Solar Daily Consumption (kWh) 1,556 888 766 585 432 1,422 59

• 1,335

56 504 21 1,245

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• 16Kw

average Post-Solar Assumed Peak Demand (kW) 65 37 32 24 18 52

Lakefront Utility Services Inc.

VERIDIAN

CORPORATION

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PPA # 1

PPA#2

Escalation

$ 251,000 PPA#3

Points

Project capital cost

Fixed Rate Grid price start & escalation

$ 251,000 $ 251,000 Term of contract 25 years 25 years 25 years System size 124 kWp 124 kWp 124 kWp

Price of PPA (cents per kWhr)

24.5 cents 19.1 cents yr. 1 18.1 cents yr. 1 Escalation first term none 4% escalation Yrs. 2-25 5% escalation Yrs. 2-25 Escalation second term none none none Escalation of PPA cost during the contract

No Yes Yes

Capital contribution by Site Owner required

No No No

Global adjustment benefits/ savings

Yes Yes Yes

Green energy production on site

Yes Yes Yes

Total $ Savings versus estimated Grid Price 25 years $ 485,151 $ 228,783 $ 132,895 Total $ Savings averaged per year $ 19,406 $ 9,151 $ 5,316 Main feature Pure fixed price Starts at Grid price + 1 cent Starts at Grid price Savings Start Veal*

8

9

10 Based on present hydro rate of $0.181/ kWh escalating at 7% per annum

Power Purchase Agreement (PPA)

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• Solar generating system will provide power for consumption within the building, directly
• ffsetting power purchases from the utility
• The Town of Cobourg would purchase the solar generated electricity from the JV under a

prescribed rate structure for the 25 year term of the PPA

• The Town can opt for a 15% stake in the projects and realize a return on equity

Lakefront Utility

Services

Inc.

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VERIDIAN

CORPORATION

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SOLAR DIVERSIFIED.

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$400,000 $350,000 $300,000

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$250,000

E $200,000

5150,000

2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

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$100,000 $50,000

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Total Payment Comparison

Total Payment Comparison

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Lakefront Utility Services Inc.

Year

• P PAtt 1
• Total

PPAtt2 - Total PPA#3 - Total

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====Electricity Charges

VERIDIAN

CORPORATION

SOLAR DIVERSIRED.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

Year

PPA42

PPA#3 P PA#1 70.0 60.0 50.0

cri 40.0

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a- 30.0

a.. 20.0

10.0 —

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Price of PPA

Price of PPA (cents per kWh)

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Lakefront Utility Services Inc.

VERIDIAN

CORPORATION

solera,

SOLAR DIVERSIFIED.

Other Intrinsic Values

• No capital cost to the Town of Cobourg, with all ongoing operating costs (maintenance,

repairs, insurance, monitoring) being the responsibility of the joint venture;

• Solar is environmentally friendly in a culture of conservation and green energy (clean,

renewable energy source);

• Provides an image of leadership;
• Municipality can claim approximately 35% of the power used in the building is "green"

power;

• Municipality can claim CO2 reduction credits;
• Solar creates energy independence for 35% of the building, provides an opportunity to add

energy storage and create a micro-grid in the future;

• Existing building footprint is used instead of additional land space;
• Energy production is highest during peak energy (demand) time, reducing the Global

Adjustment charge that would typically be paid for peak grid demand and reduces stress on the electrical grid;

• Solar generation has no moving parts and is reliable and easy to maintain;

Lakefront Utility

Services

Inc.

solera

• SOLAR

DIVERSIFIED.

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VER1DIA

CORPORATION

SOLAR DIVERSIFIED.

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Lakefront

Utility

Services

Inc.

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VERIDIAN

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Technology Integration

• Web-based monitoring system can be customized to exhibit innovative

features of the project

• Roof-top solar operates in parallel with electricity grid and displaces

grid electricity

• Grid continues to supply electricity if technology doesn't operate
• Opportunity for unique application of technologies with option for

electricity storage leading to a true "microgrid"

• Opportunity for integration of electric vehicle charging (truly green

vehicles being charged from solar power)

• Existing building electrical infrastructure suitable for interconnection —

no capital upgrades required

Next Steps

• Structural / mechanical engineering review for roof structure strength
• Execute Energy Services Agreement
• Discuss / consider innovative technology options (micro-grid, other)

MI

Lakefront Utility Services Inc.

VE

RI DIAN

CORPORATION

solerà

SUSTAINAEI, ES COMPANY LIMITED

SOLAR DIVERSIFIED.

Contact

Lakefront Utility Services Inc. Dereck Paul President & CEO 905-372-2193 Ext. 5226 dpaul@lusi.on.ca

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Lakefront Utility

Services

Inc.

VERIDIAN

CORPORATION

solera

SOLAR DIVERSIFIED.

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