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

Agenda

• About TVMWD • Existing Hydropower Unit and Operations • Opportunity for New Hydropower Development • TVMWD Partnership with NLine Energy • About NLine Energy 2

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 3

Miramar Hydro Station

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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) 5

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)?” 6

Miramar: Pressure & Flow Analysis(2007)

P min psi = 60 Existing Hydro Operation 0 5 10 15 20 25 30 35 40 45 Flow (cfs)

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 8

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 9

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 10

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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 Copyright © NLine Energy, Inc. 2013

Questions?

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