First Solar, Inc. Kingbird Solar Project Power Purchase Agreement

1. First Solar, Inc.Kingbird Solar ProjectPower Purchase Agreement City Council – Agenda Item 13 September 9, 2013

2. Project & Contract Overview • 20 MW (AC) single-axis tracking solar PV • To be located on 324 acres in Rosamond, CA • Site includes Kingbird B (another 20 MW project – output purchased by SCPPA) • Guaranteed commercial operation by January 2016 (Fiscal Year 2016) • Add approx. 5.5% RPS • PWP to pay for all energy “as available” • ~60,000 MWh/year (1st year) • Expected output degradation ~0.5% per year • Price = $68.50/MWh through term of contract • Includes Resource Adequacy capacity • Option to Purchase • 20 year term with option to extend by 5 years

3. Project Benefits RPS Category 1 resource relatively close to Pasadena Feasible to operate and maintain if purchased

4. Project Benefits • Portfolio Fit • Project size is a good match for PWP requirements • 20 MW x 33% Capacity Factor • PV production is variable, but generally aligns well with PWP demand

5. Project Benefits • Viability • Several initial milestones already achieved • Site control, interconnection studies, CEC pre-certification, CEQA; • Experienced project developer (First Solar, Inc.) with several utility scale projects already operating/under construction • Solar PV is a proven technology

6. Project Benefits • Value • Renewable energy, environmental attributes and system resource adequacy. • Facility purchase option at the 10th, 14th, or 18th contract year, or in the event of a default under the power purchase agreement. • Price is competitive with other offers for similar renewable products.

7. Risks • Some risks Include: • Project development/construction failure or delay • Counterparty credit/default • Resource underperformance • Comparative price risk • Future or alternative resources may have lower prices • Contractual provisions attempt to mitigate many risks, e.g.: • Performance security • Liquidated damages • Guaranteed energy production • Although there is risk that future resources may have lower prices, this contract is also a hedge against future price increases and volatility

8. Price Comparison Renewable Energy Contracts Price Comparison [1] Contract prices exclude costs of transmission, losses, and integration fees[price with * does not include RA capacity; all others do]

9. Renewable Portfolio Current Renewable Energy Portfolio Summary (GWh) [1] A gigawatt-hour (“GWh”) is equal o 1,000 megawatt-hours (“MWh”)

10. Impact for a Typical Customer Using 500 KWh/Month CURRENT (without Kingbird) FUTURE(2016 onward with Kingbird)* Total $87.20 Total $87.72 *Assumes other charges in the electric bill remain the same as current bill Note: Current total bill includes all existing renewable contracts

11. Fiscal Impact - Cumulative Before Kingbird: After Kingbird: Cumulative net impact of all renewable contracts in the energy portfolio: Approximately $8.5 million per year Approximately 0.73 cents per kWh starting in January 2016 • Cumulative net impact of all existing renewable contracts in the energy portfolio: • Approximately $7.3 million per year • Approximately 0.62 cents per kWh • Cumulative net impact will increase by approximately: • $1.2 million per year • 0.11 cents per kWh • $0.52/month for a 500 kWh average customer

12. Thank You ~ Questions? Back Up Slides

13. Appendix – RPS Portfolio After Kingbird

14. Selection Process Project was offered July 24, 2013 into, and selected as part of, the open SCPPA Request for Proposal process. Determined by PWP to be one of the “best fit/least cost” resources from among almost 300 offers. Also determined to be exempt from Pasadena’s competitive bidding rules as a contract for professional or unique services, and as a contract potentially relating to the acquisition of real property(includes a purchase option).

15. First Solar Experience SOME COMPLETEDFIRST SOLAR FACILITIES

16. First Solar Experience (cont.) SOME FIRST SOLAR FACILITIES UNDER CONSTRUCTION