1. The Impact of Marginal Cost Pricing on Electric Utility Revenues – A Quantitative Case Study By John Kelly Presented at the Rutgers University Center for Research in Regulated Industries 20 th Annual Western Conference Hyatt Regency, Monterey, California June 28, 2007

2. Credit: Richard Andrysik, Lincoln Electric System Marginal Cost Pricing Study, APPA Business & Financial Conference Portland, Oregon, September 26, 2005

11. Average Generation Costs by Season Credit: Richard Andrysik, Lincoln Electric System Marginal Cost Pricing Study, APPA Business & Financial Conference Portland, Oregon, September 26, 2005

12. Marginal Energy Costs by Season Credit: Richard Andrysik, Lincoln Electric System Marginal Cost Pricing Study, APPA Business & Financial Conference Portland, Oregon, September 26, 2005

13. Marginal Energy Costs and Average Generation Costs by Season

14. Credit: Richard Andrysik, Lincoln Electric System Marginal Cost Pricing Study, APPA Business & Financial Conference Portland, Oregon, September 26, 2005 Average Generation Costs by Month Credit: Richard Andrysik, Lincoln Electric System Marginal Cost Pricing Study, APPA Business & Financial Conference Portland, Oregon, September 26, 2005

15. Marginal Energy Costs by Month

16. Credit: Richard Andrysik, Lincoln Electric System Marginal Cost Pricing Study, APPA Business & Financial Conference Portland, Oregon, September 26, 2005 Marginal Energy Costs and Average Generation Costs by Month

17. Credit: Richard Andrysik, Lincoln Electric System Marginal Cost Pricing Study, APPA Business & Financial Conference Portland, Oregon, September 26, 2005 Revenue from Marginal Energy Costs

18. Credit: Richard Andrysik, Lincoln Electric System Marginal Cost Pricing Study, APPA Business & Financial Conference Portland, Oregon, September 26, 2005 Revenue From Marginal Energy Costs Plus Customer Charges

19. Credit: Richard Andrysik, Lincoln Electric System Marginal Cost Pricing Study, APPA Business & Financial Conference Portland, Oregon, September 26, 2005 Revenue From Marginal Energy Costs Plus Customer and Demand Charges

20. Credit: Richard Andrysik, Lincoln Electric System Marginal Cost Pricing Study, APPA Business & Financial Conference Portland, Oregon, September 26, 2005 Revenue From Marginal Energy Costs Plus Customer and Demand Charges

21. Credit: Richard Andrysik, Lincoln Electric System Marginal Cost Pricing Study, APPA Business & Financial Conference Portland, Oregon, September 26, 2005 Revenue From Marginal Energy Costs Plus Customer and Demand Charges

22. Credit: Richard Andrysik, Lincoln Electric System Marginal Cost Pricing Study, APPA Business & Financial Conference Portland, Oregon, September 26, 2005 Revenue From Marginal Energy Costs Plus Customer and Demand Charges

23. Credit: Richard Andrysik, Lincoln Electric System Marginal Cost Pricing Study, APPA Business & Financial Conference Portland, Oregon, September 26, 2005 Revenue From Marginal Energy Costs Plus Customer and Demand Charges

24. Credit: Richard Andrysik, Lincoln Electric System Marginal Cost Pricing Study, APPA Business & Financial Conference Portland, Oregon, September 26, 2005 Revenue From Marginal Energy Costs Plus Customer and Demand Charges

25. Credit: Richard Andrysik, Lincoln Electric System Marginal Cost Pricing Study, APPA Business & Financial Conference Portland, Oregon, September 26, 2005 Revenue From Marginal Energy Costs Plus Customer and Demand Charges

26. Credit: Richard Andrysik, Lincoln Electric System Marginal Cost Pricing Study, APPA Business & Financial Conference Portland, Oregon, September 26, 2005 Time-Of-Use Rate Periods Peak Period Off-Peak

27. Credit: Richard Andrysik, Lincoln Electric System Marginal Cost Pricing Study, APPA Business & Financial Conference Portland, Oregon, September 26, 2005 Revenue from Marginal Energy Costs

28. Credit: Richard Andrysik, Lincoln Electric System Marginal Cost Pricing Study, APPA Business & Financial Conference Portland, Oregon, September 26, 2005 Revenue from Marginal Energy Costs

29. Credit: Richard Andrysik, Lincoln Electric System Marginal Cost Pricing Study, APPA Business & Financial Conference Portland, Oregon, September 26, 2005 Revenue from Marginal Energy Costs

30. Credit: Richard Andrysik, Lincoln Electric System Marginal Cost Pricing Study, APPA Business & Financial Conference Portland, Oregon, September 26, 2005 Revenue from Marginal Energy Costs

31. Credit: Richard Andrysik, Lincoln Electric System Marginal Cost Pricing Study, APPA Business & Financial Conference Portland, Oregon, September 26, 2005 Revenue from Marginal Energy Costs

32. Credit: Richard Andrysik, Lincoln Electric System Marginal Cost Pricing Study, APPA Business & Financial Conference Portland, Oregon, September 26, 2005 Revenue from Marginal Energy Costs

33. Credit: Richard Andrysik, Lincoln Electric System Marginal Cost Pricing Study, APPA Business & Financial Conference Portland, Oregon, September 26, 2005 Revenue From Marginal Energy Costs Plus Customer Charges

34. Credit: Richard Andrysik, Lincoln Electric System Marginal Cost Pricing Study, APPA Business & Financial Conference Portland, Oregon, September 26, 2005 Revenue From Marginal Energy Costs Plus Customer Charges

35. Credit: Richard Andrysik, Lincoln Electric System Marginal Cost Pricing Study, APPA Business & Financial Conference Portland, Oregon, September 26, 2005 Revenue From Marginal Energy Costs Plus Customer Charges

36. Credit: Richard Andrysik, Lincoln Electric System Marginal Cost Pricing Study, APPA Business & Financial Conference Portland, Oregon, September 26, 2005 Revenue From Marginal Energy Costs Plus Customer Charges

37. Credit: Richard Andrysik, Lincoln Electric System Marginal Cost Pricing Study, APPA Business & Financial Conference Portland, Oregon, September 26, 2005 Revenue From Marginal Energy Costs Plus Customer Charges

38. Credit: Richard Andrysik, Lincoln Electric System Marginal Cost Pricing Study, APPA Business & Financial Conference Portland, Oregon, September 26, 2005 Revenue From Marginal Energy Costs Plus Customer Charges

39. Chart #