“Other” Cost Estimates Stan Hadley SSC Meeting December 3, 2012

Other Cost Categories Costs not reported in MAPS Annual costs, values are for 2030 only Energy Efficiency Demand Response Variable Resource Integration Thermal Contingency Factors Fixed O&M Capital Costs, Overnight costs through 2030 All costs in 2010 $

Phase 2 Part 5 Final Draft Page 41

Energy Efficiency Supply curves based on McKinsey and Ga Tech studies Scenario 3 (Future 1 or BAU in Phase 1) includes existing EE policies 2030 cost $0.8 to $2.1 billion Future 2 in Phase 1 includes BAU EE plus CO2 cost Assume demand reduction from demand substitution by using EE 2030 cost $5.7 to $17.2 billion CO2-alone cost = $4.9 to $15.1 billion Scenario 1 (Future 8) has incremental EE policies Reduce demand growth rate by an additional 1%/year 2030 cost $11.3 to $26.6 billion, includes CO2 Scenario 1 non-CO2 EE cost = $6.4 to $11.5 billion

Energy Efficiency Supply Curves

Demand Response: Cost versus Price Phase 1:FERC-developed National Assessment of Demand Response (NADR) model for total Price in model used $750/MWh Cost using early estimate of equipment Phase 2: Updated assumptions Create tiered price curve for models Expand and update equipment costs

Demand Response Price Curve 6-Block Supply Curve and Model Curve with Allocated Non-Pricing DR in 2030

Communications Network Deployment Management DR Cost Estimates Estimated Cost-per-Meter of Various AMI System Component ($) Scenario Meters IT Systems Communications Network Deployment Management Annualized AMI O&M High 243 65 66 81 23 Medium 190 27 43 63 7 Low 129 11 28 4 2030 Costs include ongoing O&M S1 = $604 million S2, S3 = $323 million 2030 AMI capital equipment cost S1 = $148 million S2, S3 = $87 million

Variable Energy Resource Integration Estimated Cost for 2030 Estimated Wind Integration Costs (2010$) Low Range (-50%) Medium High Range (+75%) $1.95/MWh $3.91/MWh $6.83/MWh Assumptions EWITS Scenario 4 served as starting point - $5.13/MWh (2009$) Gas price adjustment to capture the difference of EWITS and EIPC natural gas forecasts Scenario TWh Low Medium High S1 733 $1.4 B $2.9 B $5.0 B S2 568 $1.3 B $2.5 B $4.4 B S3 223 $0.5 B $1.0 B $1.8 B

Thermal Contingency Reserves $2/MWh * (Coal + Nuclear + Combined Cycle) Estimated Contingency Cost in 2030 (Billions 2010$) S1 S2 S3 1,881 TWh 2,494 TWh 3,107 TWh $3.8 $5.0 $6.2 Assumptions A 2003 study, Allocating Costs of Ancillary Services: Contingency Reserves and Regulation, suggests that costs of contingency reserves to accommodate the loss of the largest unit increases the operating costs and recommends a method that allocates based on its size and forced outages to incentivize generators to maintain their units.

Fixed O&M Costs Not calculated in GE MAPS Take from relevant NEEM case Value is for the EI in 2030 Scenario NEEM Case O&M in 2030 S1 F8S7 $34.7 Billion S2 F6S10 $52.1 Billion S3 F1S17 $48.1 Billion

Estimated Nuclear Uprate Costs Future Uprated Capacity Costs (Billions 2010$) All three Scenarios 1,538 MW $4.9 Assumptions $2,600/kW Costs occur before 2030

Estimated Distributed Generation Costs 2x Distributed Generation in BAU Assumed all behind-the-meter PV Assumed weighted average of the 2-5 kW and 5-10 kW, $8,045/kW (2010$) The estimated capital cost of the renewable distributed generation added during 2015-2030 is $83.4B.