SFPUC Power Business Plan POWER ENTERPRISE BUSINESS PLAN 2016

Business Model Hetchy Supplies 380 MW The Hetchy system is expensive to maintain at full capacity. It is aging; has limited operating flexibility due to prioritizing water customer needs above power needs; demands funding from Power 165 MW that increases costs above alternatives; and results in a poorly Power’s share of Mountain Tunnel costs makes Moccasin supplies uncompetitive with renewable and non-renewable alternatives. Holm Powerhouse diversified supply portfolio (see Fig. 5). Supply Cost Comparisons by Powerhouse 116 MW Oakdale/ Turlock Newark r we Po 100 MW Moccasin Powerhouse Kirkwood Powerhouse $140 Moccasin + Grid $124 $120 Power Power’s Customers Lines 3, 4 er Pow PG&E Distribution Grid CAISO Transmission Grid Warnerville Standford/ Modesto Customers 150 MW r we Po 6 5, es Lin ,8 s7 $100 $80 Utility-Scale Solar Utility-Scale Wind $56 $55 $60 $40 Market Purchase $40 e Lin Figure 4

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