Grid Modernization and Distribution System Planning – What’s Going Around the Country? February 22, 2018 Liesl Clark, President

Michigan EIBC's mission is to grow Michigan’s advanced energy economy by fostering opportunities for innovation and business growth and offering a unified voice in creating a business-friendly environment for the advanced energy industry in Michigan.

The business voice of advanced energy in Michigan. Leadership Membership Socore Turning Point Energy The business voice of advanced energy in Michigan.

Distribution System Planning Plans are useless, but planning is indispensable. Dwight D. Eisenhower The business voice of advanced energy in Michigan.

Drivers of a Changing Grid – Cost Trends Technology changes are real Adoption is real https://www.lazard.com/perspective/levelized-cost-of-energy-analysis-100 The business voice of advanced energy in Michigan.

Drivers of a Changing Grid – DERs Clean energy jobs almost grew 3x faster than the broad job market NEM solar density by county, MPSC The business voice of advanced energy in Michigan. www.5lakesenergy.com

Drivers of a Changing Grid – Customer Interest GM making massive wind purchase to power 7 facilities 9/19/2017 The business voice of advanced energy in Michigan. www.5lakesenergy.com

The business voice of advanced energy in Michigan. Drivers of a Changing Grid – Mobility Evs were a critical step to speed improvements for grid storage The 9 ZEVs states account for 28% of registrations 22% increase in the electric light duty segment from 2016-2017 2017 Forecasts for Global EV fleet ramp up. The business voice of advanced energy in Michigan.

The business voice of advanced energy in Michigan. Distribution System Planning – Michigan Generation Limited deployment at this point with high future goals The business voice of advanced energy in Michigan.

Distribution System Planning – Drivers of a Changing Grid Source: Leidos Impacts of DER, Storage, and PEV The Advanced Distribution Planning Challenge The business voice of advanced energy in Michigan.

The business voice of advanced energy in Michigan. Greater customer engagement New products and services Greater focus on value vs. cost High DER penetration Two-Way Energy Flows Digitalization of the Grid Are we planning for and investing in the distribution system that we will need in the future? Are the planning processes aligned to ensure future reliability, efficient use of resources, maximizing customer benefits  and successful implementation of public policy? What commission actions would support improved alignment of planning for and investment in the distribution system? Source: Navigant, 2015 The business voice of advanced energy in Michigan. www.5lakesenergy.com

Distribution System Planning - Other States NY, CA HI, CO, MD, TX, CT, MN, RI, OH, IL OH Power Forward IL Next Grid The business voice of advanced energy in Michigan.

Distribution System Planning – Take Aways The Future is Now - Customer-focused Integration Need to learn from stakeholders what investment is needed Locational value can be leveraged to avoid wasted development Michigan is leading, there are themes we can and should incorporate. DSP builds system that is beneficial to ratepayers, utilities, and system as a whole The business voice of advanced energy in Michigan.

The business voice of advanced energy in Michigan. Distribution System Planning – Path Forward Continued Stakeholder Engagement Integration with other planning activities - IRP Walk-Jog-Run Approach www.morethansmart.com The business voice of advanced energy in Michigan.

The business voice of advanced energy in Michigan. Don’t predict the future, enable it. Liesl Clark President liesl@mieibc.org The business voice of advanced energy in Michigan.