MSU Issues & Opportunities Supply Management Demand Management Integrated Approach to Energy Planning Integrated Energy Planning Moving Forward Kathy Lindahl, MSU | Nick Travis and Rob McKenna, Energy Strategies, LLC

pptPlex Section Divider MSU Issues & Opportunities The slides after this divider will be grouped into a section and given the label you type above. Feel free to move this slide to any position in the deck.

MSU Issues Powerplant capacity issue CCX – CO2 emission constraints – Nationally – something will happen Technologies – What do we buy next – Is it ripe enough Growth - Continue to add 1MM GSF per decade – 2MM in most recent decade Deferred maintenance Driving for flexibility How to integrate the ability to make good financial decision while managing other complexities.

2023 “Tipping Point”

pptPlex Section Divider Integrated Approach to Energy Planning The slides after this divider will be grouped into a section and given the label you type above. Feel free to move this slide to any position in the deck.

Bend the Line toward Environmental Stewardship "Dr. King once said that the arc of the moral universe is long but it bends towards justice. It bends towards justice, but here is the thing: it does not bend on its own. It bends because each of us in our own ways put our hand on that arc and we bend it in the direction of justice....“ Senator Barack Obama

Regulatory & Policy Support Market Monitoring & Intelligence Dynamic Baseline & Performance Measurement Development & Implementation Investment Analysis Contract Negotiations Funding Operation Procurement Regulatory Intervention Rate Design Supplemental External Subject Matter Expertise (e.g. technical, legal) Internal Subject Matter Expertise Internal Leadership Strategic Planning Integrated Strategic Resource Planning Examples: Energy/Utility Master Plans Climate Action Plans Integrated Strategic Resource Planning Examples: Energy/Utility Master Plans Climate Action Plans Integrated Decision Support Framework Economic, Financial and Decision Analysis

Define Decision Metrics Analyze Historical Data Define Starting “Test Year” Definition & ScopeMeasure Performance MSU General Analytical Direction Add Givens Create Baseline Reference Case Add, Renovate & Demolish Impact Demand Vary Utility Plant Operations Impact Supply Invest in Energy Conserva- tion Modify Behavior, Space Use & Building Standards Apply Alternative Utility Plant Technology Vary External Planning Environment Feedback & Adjustment Vary Procure-me nt Practices

You Can’t Manage What You Don’t Measure

pptPlex Section Divider Demand Management The slides after this divider will be grouped into a section and given the label you type above. Feel free to move this slide to any position in the deck.

pptPlex Section Divider Supply Management The slides after this divider will be grouped into a section and given the label you type above. Feel free to move this slide to any position in the deck.

Illustration Expand Grid Purchases Option

Dashboard – Expand Grid Purchases

An Elemental Understanding of Value Drivers per MWh Expand Grid Purchases Operational Excellence Energy Intensity Environmental Stewardship GHG Intensity

What if: Vary Grid Purchases So Peak is Set by Non-Discretionary Steam Demands

What if: Purchase Blocks of Grid Power to Spread Fixed Capacity Charges over More MWh

What if: Purchase Green Power to Avoid Grid GHG Emissions Without Green PowerWith 100% Green Power

pptPlex Section Divider Integrated Energy Planning Moving Forward The slides after this divider will be grouped into a section and given the label you type above. Feel free to move this slide to any position in the deck.

Vision of Integrated Planning Tools in the Future