SACRAMENTO MUNICIPAL UTILITY DISTRICT
SMUD and DESRI announce 640 MWh clean energy storage project

DESRI and the Sacramento Municipal Utility District today (June 19) announced that they have executed a long-term power purchase agreement for the Dry Creek Energy Storage project. Dry Creek is a 160 megawatt/640 megawatt-hour battery energy storage system (BESS) located in Sacramento County.

"Our DESRI team is proud to bring this reliable, cost-effective clean energy storage project to the California energy system, an exciting new addition to our partnership with SMUD over many years," said DESRI Chief Development Officer Hy Martin. "This project will play a critical role in helping SMUD to maintain and enhance grid reliability, optimize performance of their renewable energy assets and contribute to their decarbonization goals."

SMUD and DESRI have worked on the project jointly over several years. Given the significant transmission infrastructure at the decommissioned Rancho Seco generating station, the BESS is optimally located to leverage the existing infrastructure and limit costly upgrades on the system. The energy storage system will be charged using renewable energy and other clean sources available on SMUD's grid, supporting the integration of sustainable power and enhancing grid reliability.

"This battery storage project represents another significant milestone in SMUD's Zero Carbon Plan as we work toward carbon-free electricity by 2030," said SMUD Chief Zero Carbon Officer Lora Anguay. "By enhancing our existing renewable infrastructure at Rancho Seco with battery technology, we're building a more flexible and reliable grid while enabling a more efficient integration of renewable energy."

About DESRI

DESRI and its affiliates develop, acquire, own, and operate long-term contracted renewable energy assets in the U.S. DESRI's portfolio of contracted, operating, and in-construction renewable energy projects currently includes 70 solar and wind projects representing more than nine gigawatts of aggregate capacity.

About SMUD

As the nation's sixth-largest, community-owned, not-for-profit electric service provider, SMUD has been providing low-cost, reliable electricity to Sacramento County for more than 75 years. SMUD is a recognized industry leader and award winner for its innovative energy efficiency programs, renewable power technologies and for its sustainable solutions for a healthier environment. In 2023, SMUD's power supply was, on average, 78 percent carbon free, and SMUD has a goal to reach zero carbon in its electricity production by 2030. SMUD's rates and customer bills are consistently among the lowest in California, and are today, on average, more than 50 percent lower than its neighboring investor-owned utility. For more information on SMUD's Zero Carbon Plan and its customer programs, visit smud.org.

This press release is provided for the reader's information only and does not constitute investment advice or convey an offer to sell, or the solicitation of an offer to buy, any securities or other financial products.

Please also note that this press release has not been updated since its dateline for any information contained in it that may have changed, including any beliefs and/or opinions. In addition, no assurances can be given that any aims, assumptions, expectations, and/or goals described in this release will be realized or that the activities or any performance described herein did or will continue at all or in the same manner as at the time of the press release.

Photo caption: Rancho Seco's energy infrastructure includes a 160-megawatt solar facility, showcasing SMUD's commitment to clean energy generation. The innovative site combines solar power with sustainable land management through sheep grazing. Photo: SMUD