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 \cT, R P0 ,?A'cl"T Services . 11Pr*Vitt *9 Inc. SOLAR DIVERSIFIED. � \

Presentation Agenda • Who we are • Roof-top Solar at Venture 13 • Power purchase agreement • Next Steps Lakefront solera \ Utility VERIDIAN Services CORPORATION Inc. 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 soler4v41 Utility VERIDIAN Services COLIVANY Inc. CORPORATION SOLAR DIVERSIFIED. � \

Lakefront Utility Services (LUSI) Town of Cobourg Township of Cramahe Town of Cobourg Holdings Inc. Lakefront Utilities Lakefront Utility Inc. Services Inc. (Non-Regulated) (Electric Regulated Lakefront so i era , Utility Services VERIDIAN SUSVAINAII, trIE ■ IGIC, COMPANT Inc. SOLAR CORPORATION 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 VERIDIAN Services SOleraVIA SUSTA1NAOLE ENENGILS COMPANY LMAITE0 Inc. CORPORATION SOLAR DIVERSIFIED. � \

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 solera Utility Services VERIDIAN tryLlIGIL, COMPANY llIAITLC, Inc. SOLAR CORPORATION 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 VE R_I DIAN Services Inc. 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 operation / 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 solera Utility VERIDIAN Services SUSTAINAOLE ENEY141ES COMP., Inc. CORPORATION SOLAR DIVERSIFIED.

� � Project Examples " Ah MI 1 111177 - 77 � s- . " , '1.14;zrzrzzaratavrimri • T._. • - • � =II.V.Valrei:Warv.MgE ==SSSMAT:=SIM*S:=4:74.3 kgr' 141100011111 11110gS . ■ 77 1 4 " Vatil l eg it4 F Claremont Community Centre / Fire Hall —City of Pickering 100 kW Veridian Carport — Ajax 10kW Veridian Head Office —Ajax 140 kW GO Station — Ajax 300 kW Anguilla West Indies, Electric Utility 1400 Kw Airport Carport — Kingston Jamaica 100kW Lakefront solera'N44 Utility VERIDIAN Services 1 LI/A1ICU � Inc. • CORPORATION SOLAR DIVERSIFIED. � X

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 VE RIDIAN Services SUSTAIN/4M, ENENCIIES COMPANY LIMIT. CORPORATION Inc. SOLAR DIVERSIFIED.

Projected Site Consumption and Solar Generation 4, 4,1 � .„ 4.4 fed ZAW ' q 4 air ' aa ' c r"' � • • 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 L Month Jan Feb Mar Apr May Jun July Aug Sep Oct Nov Dec Total I Offset Monthly Site Consumption With Tenant 1 (kWh) 53,000 32,000 35,000 , 32,000 31,000 61,000 37,000 40,000 53,000 25,000 35,000 42,000 47_6,000 1 I 16 , Monthly Solar Production (kWh per PvSyst) 4,750 7,140 11,260 1 14,440 17,600 18,330 19,080 p 12,950 9,370 4,920 3,410 140,140[ Post-solar Monthly Site Consumption (kWh) 48,250 24,860 23,740 17,560 13,400 42,670 17,920 23,110 40,050 15,630 , 30,080 38,590 335,860 29.4% # of days in month 31 28 31 30 1 � 31 30 31 31 30 31 30 31 � _ 365 Pre-Solar Daily Consumption (kWh) 1,710 1,143 1,129 � 1,067 1,000 � 2,033 1,194 1,290 1,767 806 , 1,167 1,355 Pre-Solar Assumed Peak Demand (kW) 71 48 47 � 44 42 � 1 � 85 54 � 74 34 , � 49 56 50 --- - Post-Solar Daily Consumption (kWh) 1,556 888 766 585 432 1,422 578 � 745 1,335 504 1,003 1,245 f --- -16Kw Post-Solar Assumed Peak Demand (kW) 65 37 32 24 18 59 24 31 56 21 42 52 average Lakefront solera'Ywi Utility Services VERIDIAN St.10.114MILL Et:k ■ iCilES COMPANY L1/.117tO Inc. CORPORATION SOLAR DIVERSIFIED.

Power Purchase Agreement (PPA) ,± • Solar generating system will provide power for consumption within the building, directly offsetting 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 PPA # 1 PPA#2 PPA#3 Points Fixed Rate Escalation Grid price start & escalation Project capital cost $ 251,000 $ 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 Lakefront solera \/ 1 Utility Services VERIDIAN SOLAR Inc. DIVERSIFIED. � \ CORPORATION

Total Payment Comparison Total Payment Comparison $400,000 $350,000 $300,000 _ $250,000 4 4 E $200,000 0 5150,000 $100,000 $50,000 1 i I 1 ' $0 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 � P PAtt 1 - Total � PPAtt2 - Total � PPA#3 - Total � , ====Electricity Charges ■ GI ) Lakefront Utility Services VERIDIAN SUSTAINAULG LNLi10.5 COMPANY umirtu Inc. SOLAR CORPORATION DIVERSIRED.

Price of PPA Price of PPA (cents per kWh) 70.0 60.0 50.0 cri 40.0 a) a- 30.0 cL 0 a.. 20.0 10.0 — 0.0 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 PPA#3 � P PA#1 PPA42 � solera , MI Lakefront Utility Services SUSTAIUMILL LNLNOIE, COMPANY LIMiTEL ■ VERIDIAN Inc. SOLAR DIVERSIFIED. CORPORATION