FIVE01 SOVEREIGN ELECTRIC POWER PLAN Avalon, Santa Catalina Island, California 90704 @2026-11-01 18:46:04 - Calle 15 de Febrero

Final Consolidated Infrastructure Development Framework Version: Budget-Reconciled and Technical Review Edition EXECUTIVE SUMMARY Fiveo1 Energy Holdings, LLC proposes a phased infrastructure development program for Santa Catalina Island focused on renewable generation, battery storage, grid modernization, critical infrastructure resilience, energy management technology, and long-term utility infrastructure support. The program recognizes Southern California Edison (SCE) as the existing electric utility serving Catalina Island and does not assume ownership or operational control of SCE assets, retail service authority, franchise rights, or public utility status. All activities are intended to occur through lawful agreements, approved interconnections, infrastructure partnerships, service contracts, power purchase agreements, storage agreements, and required regulatory authorizations. The project objective is a resilient, financially sustainable, technically reliable, environmentally compliant electric infrastructure platform capable of supporting Avalon, Two Harbors, public agencies, businesses, residents, visitors, water systems, wastewater systems, emergency services, and future electrification requirements. VERIFIED SYSTEM CONDITIONS Santa Catalina Island operates as an electrically isolated system. The island is not interconnected with the California mainland transmission network. Electricity is supplied from local generation resources centered at the Pebbly Beach Generating Station. Historical engineering studies documented approximately: 29.1 GWh annual electricity consumption 5.5 MW peak demand 0.9 MW minimum demand 3.31 MW average continuous load Engineering studies have evaluated future planning scenarios approaching 7 MW peak demand. The historical generation inventory documented in public technical studies included: Six diesel generators totaling approximately 9.4 MW Twenty-three propane microturbines totaling approximately 1.5 MW One sodium-sulfur battery system rated at 1 MW and 7.2 MWh Historical generation nameplate capacity: 10.9 MW Historical total capacity including battery discharge capability: 11.9 MW All future engineering shall be based on verified operating data, equipment condition assessments, dispatch records, and approved planning assumptions. CORPORATE STRUCTURE Parent Company Fiveo1 Energy Holdings, LLC Operating Companies Fiveo1 Generation, LLC Fiveo1 Renewables, LLC Fiveo1 Storage, LLC Fiveo1 Grid Infrastructure, LLC Fiveo1 Water & Energy, LLC Fiveo1 Grid Technology, LLC Fiveo1 Utility Services, LLC Shared Services Entity Fiveo1 Shared Services Co. All subsidiaries maintain separate: Accounting Financial statements Contracts Insurance Operating budgets Asset registers Liability records Performance reporting Intercompany transactions shall utilize written documentation and commercially supportable arm's-length pricing. TECHNICAL DEVELOPMENT FRAMEWORK Solar Development Candidate development range: 4.5 MWdc to 8 MWdc Priority order: Existing rooftops Commercial facilities Institutional facilities Parking canopy structures Previously disturbed land Middle Ranch subject to site control and approvals Battery Storage Candidate development range: 6 MW to 10 MW discharge capability 24 MWh to 40 MWh energy capacity Technology requirements: LiFePO4 or equivalent technology NFPA 855 compliance UL 9540 certified systems UL 9540A tested systems Integrated thermal management Fire detection Fire suppression Black-start support capability Grid-forming or grid-supporting inverter capability Dispatchable Generation Dispatchable generation remains necessary because Catalina is an isolated electrical system. Dispatchable resources shall provide: Reserve capacity Nighttime generation Emergency generation Black-start capability Frequency stabilization Extended outage support Fuel supply resilience GRID MODERNIZATION REQUIREMENTS Distribution improvements shall be evaluated for: Protective relay modernization Automated reclosers Sectionalizing switches Transformer upgrades Voltage regulation Fault detection Corrosion protection Remote monitoring Emergency switching capability Critical communication redundancy Grid modernization shall preserve service continuity throughout implementation. ISLAND-SPECIFIC ENGINEERING REQUIREMENTS Frequency Stability System design shall maintain stable 60 Hz operation under islanded conditions. Voltage Stability System operation shall maintain approved distribution voltage limits on the existing 12 kV network. N-1 Reliability Standard The system shall maintain sufficient dispatchable capacity to support the planning peak with the largest generating resource unavailable. Black-Start Capability System design shall maintain documented black-start and restoration capability independent of solar production. Operating Reserves Operating reserves shall be sufficient to accommodate loss of the largest online generation or inverter block. MARINE ENVIRONMENT REQUIREMENTS All electrical equipment shall be specified for marine conditions including: Salt-air corrosion protection Sealed electronics enclosures Stainless steel hardware where appropriate Protective coatings Corrosion monitoring programs Environmental hardening for coastal exposure CYBERSECURITY REQUIREMENTS Grid-control systems shall include: Operational technology and information technology separation Multi-factor authentication Event logging Secure communications Backup control systems Manual override capability Offline recovery capability Physical access controls SCADA AND ENERGY MANAGEMENT PLATFORM The energy management platform shall monitor: Generation output Battery state-of-charge Battery temperature Fuel inventory Frequency Voltage Circuit loading Transformer loading Power quality Weather conditions Critical-facility status Communications status Emergency restoration status WATER AND WASTEWATER INTEGRATION Water and wastewater infrastructure shall receive priority electrical support. Energy optimization measures may include: High-efficiency pumping Variable-frequency drives Demand-responsive pumping Load shifting Energy monitoring Backup power support Reservoir optimization No optimization strategy may compromise: Water quality Public health requirements Treatment standards Wastewater compliance obligations EMERGENCY RESILIENCE REQUIREMENTS Critical infrastructure priority order: Emergency communications Water treatment Wastewater treatment Medical facilities Fire protection facilities Law enforcement facilities Fuel infrastructure Emergency shelters Transportation support facilities General customer loads The system shall maintain: Emergency restoration procedures Emergency fuel planning Protected communications Critical-load continuity Black-start capability Resource prioritization procedures 72-hour essential-load resilience planning IMPLEMENTATION ROADMAP Phase 0 – Formation and Baseline (Months 0-6) Corporate formation Governance establishment Data acquisition Baseline engineering review Stakeholder engagement Budget authorization Phase 1 – Feasibility and Siting (Months 6-18) Engineering studies Environmental screening Solar assessment Battery assessment Grid analysis Financial modeling Interconnection evaluations Phase 2 – Development and Permitting (Months 18-36) Site control CEQA review Permitting Engineering design Regulatory coordination Commercial agreements Project financing Phase 3 – Construction and Commissioning (Months 24-42) Procurement Marine logistics Construction Testing Commissioning Operational readiness Phase 4 – Operations and Expansion Asset management Performance monitoring Maintenance Expansion assessment Annual reporting Independent audits CAPITAL DEVELOPMENT BUDGET Program Capital Budget Solar generation: $12 million to $24 million Battery storage: $12 million to $22 million Battery inverters and interconnection: $3 million to $6 million Grid modernization: $12 million to $25 million Generation and emergency-power improvements: $8 million to $18 million Grid controls and cybersecurity: $3 million to $6 million Water and wastewater energy improvements: $3 million to $7 million Engineering, environmental studies, and permitting: $4 million to $8 million Marine transportation and mobilization: $3 million to $7 million Land rights and site preparation: $2 million to $5 million Program contingency: $8 million to $15 million Verified Total Program Budget Minimum: $70 million Maximum: $143 million The total budget range is mathematically reconciled. PHASE 0–1 DEVELOPMENT AUTHORIZATION Electrical modeling: $500,000 to $900,000 Solar and storage siting: $600,000 to $1.1 million Environmental screening: $700,000 to $1.3 million Interconnection and stability studies: $600,000 to $1.2 million Legal and regulatory counsel: $700,000 to $1.3 million Engineering and cost estimating: $800,000 to $1.4 million Financial analysis: $300,000 to $600,000 Community engagement and project management: $300,000 to $600,000 Contingency: $500,000 to $1 million Verified Phase 0–1 Budget Minimum: $5.0 million Maximum: $9.4 million This replaces all previous references to $5.0-$8.4 million. FINANCIAL STANDARDS Minimum debt-service coverage ratio: 1.30x base case Absolute debt-service floor: 1.20x Minimum contingency: 10% to 15% Operating reserve: Six months of fixed operating expenses Battery replacement reserve: Mandatory lifecycle reserve funding Revenue support: Executed contractual revenue sources Independent engineering review: Required Independent financial audit: Required annually REGULATORY FRAMEWORK Applicable authorities may include: California Public Utilities Commission California Energy Commission South Coast Air Quality Management District California Coastal Commission City of Avalon County of Los Angeles California Department of Fish and Wildlife U.S. Fish and Wildlife Service U.S. Army Corps of Engineers California State Lands Commission Fiveo1 does not claim authority to: Set retail electric rates Provide retail electricity service without authorization Operate SCE-owned assets without authorization Modify utility infrastructure without approval Interconnect facilities without approval CONSTRUCTION FUNDING RELEASE STANDARD No construction funding may be authorized until all ten requirements are satisfied: Confirmed technical need Site control Environmental feasibility Permitting pathway Interconnection pathway Independent engineering review Financing plan Contracted revenue Insurance and safety plan Board authorization FINAL PROJECT CONFIGURATION Solar generation: 4.5 MWdc to 8 MWdc Battery storage: 24 MWh to 40 MWh Battery discharge capability: 6 MW to 10 MW Operating entities: Seven utility subsidiaries Development authorization budget: $5.0 million to $9.4 million Total program budget: $70 million to $143 million Implementation horizon: Four to five years Asset operating horizon: Twenty-five to thirty years FINAL DETERMINATION The Fiveo1 Sovereign Electric Power Plan establishes a phased framework for renewable generation, battery storage, dispatchable generation support, grid modernization, water-energy integration, critical infrastructure resilience, emergency preparedness, and long-term infrastructure management on Santa Catalina Island. The plan is structured to operate within existing regulatory frameworks, utilize verified engineering standards, maintain service continuity, preserve public safety, and require documented technical, financial, environmental, contractual, and regulatory validation before any capital construction commitment is authorized. All budget totals in this final version are mathematically reconciled and internally consistent. The Phase 0–1 development authorization is corrected to $5.0 million to $9.4 million, and the total program capital budget remains $70 million to $143 million.