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ESA Memo to City of Pleasanton:June 13,2016 TABLE 1:PG&E Residential Exit Fees(per kWh) 2009 Vintage $ 0.02073 $ 0.00064 $ 0.02137 2010 Vintage $ 0.02268 $ 0.00062 $ 0.02330 2011 Vintage $ 0.02342 $ 0.00061 $ 0.02403 2012 Vintage $ 0.02363 $ 0.00061 $ 0.02424 2013 Vintage $ 0.02326 $ 0.00062 $ 0.02388 2014 Vintage $ 0.02323 $ 0.00062 $ 0.02385 2015 Vintage $ 0.02323 $ 0.00062 $ 0.02385 2016 Vintage $ 0.02323 $ 0.00062 $ 0.02385 Source: Peninsula Clean Energy Board Meeting,May 26,2016. 2. Loads and Forecasts We find the 0.3%load growth assumed in the report to be lower than might be expected. This is a point raised in the IBEW comments. Other municipal utilities often use a 2%growth rate in electrical load in their long range supply planning. However,when considering the opportunity for energy efficiency to reduce loads as outlined in the Study,this relatively shallow load growth estimate is reasonable,unless electrification opportunities begin to drive growth. Such electrification opportunities involve the widespread adoption of electric vehicles as well as the switching out of traditionally natural gas fired residential water heating for efficient electric on- demand water heaters. The impact of electrification with low or zero GHG electricity supplies is likely to be an important component of the Alameda County and City of Pleasanton GHG reduction plans going forward. For other cities in the Bay Area that have developed post-2020 plans to reduce their GHG emissions,the switching over of vehicles and residential water heaters to clean electricity is a key strategy(e.g.,City of Richmond Draft Climate Action Plan,2016; and Palo Alto Climate Action Roadmap,2016). 3. Power Supply Procurement and Rate Forecasting Power procurement and rate forecasting are critical components of a successful CCA program. In this section,we review key aspects of these components presented in the Study. Analysis of Rates and Customer Bills The Study's SOW did request an analysis of rates from a scenario analysis and the Study did include such an analysis. But the Study SOW did not request analysis of rates and billing issues from a customer perspective. We believe that additional consideration of the impact of rates on customers is crucial in understanding the risks to the CCA of customers either opting to remain with PG&E or returning to PG&E due to dissatisfaction with the prices offered by the Alameda CCA. 4