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Project Update

December 23, 2019

As the year draws to a close, we reflect on all that we have been able to accomplish in not just 2019 but since we began construction in July 2017. We reached many milestones and achieved great accomplishments. Most importantly, we achieved over 1.8 million job hours worked without a Lost Time Injury. At peak construction, we employed over 500 employees. We installed over 4,500 piles and 22,000 cubic yards of concrete for the plant foundations. Over 1 million linear feet of cable was installed and 3 generators, weighing over 500,000 pounds and 2 combustion turbines weighing over 440,000 pounds were successfully delivered to site without incident. This was a significant task and accomplishment as these are critical components of the Alamitos Energy Center Combined Cycle Gas Turbine (CCGT) and make the heart of the plant. Our greatest accomplishment, for both the community and our company, is that we have been able to safely complete construction 4 months ahead of schedule.

Please continue to read for an update on the progress and future activity at the AEC.

CCGT Construction and Commissioning
The construction and commissioning phases are now complete. We have begun the performance testing phase which will take 2 to 3 weeks to complete. Minor construction work and fine tuning will take us into 2020 and we expect completion of the CCGT project and commercial operation of the new generators in early 2020.

Timeline

Battery Energy Storage Project
The Battery Energy Storage Project (BESS) broke ground in June of this year and is currently under construction. The 400 MWh BESS project will provide grid flexibility and reliability while enabling ever increasing amounts of intermittent renewable energy generating sources to be accessed. Construction of the BESS project will be complete in early 2021.

Unit Retirement
The Alamitos Generating Station has 6 steam generating units currently in operation that were built in the 1950s and 1960s. Units 1 and 2, (closest units to Studebaker Road) and unit 6 will be permanently retired from service on December 31, 2019. Units 3, 4, and 5 have a retirement date of December 31, 2020. However, we are awaiting to learn if units 3, 4, and 5 will receive a short-term, permitted extension to operate past 2020 to ensure grid reliability for the southern California region. In November 2019, the California Public Utilities Commission (CPUC) recommended the extension of service of several natural gas-powered power plants which were scheduled to retire, including the Alamitos Generating Station. In early 2020, the State Water Resources Control Board will review the CPUC recommendation and decide to allow or deny the extension of life of AES Alamitos units 3, 4, and 5 for a period of 1 to 3 years.

Demolition
The demolition of the old units at AES Alamitos has been temporarily placed on hold while we wait to learn if there will be a short-term extension for units 3, 4, and 5. Please note, this schedule may change due to unforeseen circumstances. This is a very exciting time as we come closer to providing you with sustainable, reliable and more efficient energy to power your everyday lives. On behalf of everyone at AES, we extend our appreciation for your patience through the past couple of years of construction and the commissioning phase. We wish you all the joys of the season and happiness throughout the coming year. Please feel free to contact our project hotline at (888) 363-2226 or email talk@renewaesalamitos.com with any questions.