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Integrated Resource Plan (“IRP”)

Integrated Resource Plan (“IRP”). SCDHEC Gene G. Soult April 7, 2014. www.regulatorystaff.sc.gov. SCE&G’s IRP Part of SCE&G’s 2014 IRP was used to illustrate the IRP process. SCE&G’s IRP can be obtained by contacting the South Carolina Energy Office www.energy.sc.gov

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Integrated Resource Plan (“IRP”)

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  1. Integrated Resource Plan (“IRP”) SCDHEC Gene G. Soult April 7, 2014 www.regulatorystaff.sc.gov

  2. SCE&G’s IRP Part of SCE&G’s 2014 IRP was used to illustrate the IRP process. SCE&G’s IRP can be obtained by contacting the South Carolina Energy Office www.energy.sc.gov • www.energy.sc.gov • www.energy.sc.gov 2 www.regulatorystaff.sc.gov

  3. Introduction- Demand and Energy Forecast 15-year period, 2014 through 2028 • Territorial Summer/Winter Peak with average growth rate per year respectively, over the forecast horizon. • Gross MW-hour Energy Sales by Year • Energy Efficiency and Demand-Side Management Impacts to Gross Baseline Sales • Compute Firm Peak Demand 3 www.regulatorystaff.sc.gov

  4. Demand Side Management • System Peak Demand- Summer vs. Winter (normally summer peaking in South Carolina) • Demand-Side Impact on Forecast • Energy Efficiency (“EE”) results in lower peak estimates in GWH for retail and commercial sales • Load Impact of EE and Demand Response programs represent over all MWs reduction on system 4 www.regulatorystaff.sc.gov

  5. Integrated Resource Plan (“IRP”) DSM Programs • Customer Information • Web-Based Information and Services • Energy Conservation • Demand Side Management • Load Management Programs 5 www.regulatorystaff.sc.gov

  6. SCE&G’s Existing Energy Resources • Fossil • Hydro • Nuclear • Solar • Biomass • Renewables • (“PaCE”) 6 www.regulatorystaff.sc.gov

  7. Future Energy Sources • New Renewable Projects • Off-Shore Wind • Co-firing with Biomass • Smart Grid Activities • Distribution Automation - Supervisory Control and Data Acquisition (“SCADA”) • Environmental Mitigation Activities - Nox SO2 Mercury, Air Toxics • Nuclear Power in the future - Small and Modular Reactors (“SMR”) 7 www.regulatorystaff.sc.gov

  8. Supply Side Management • Impacts of Environmental Regulation- Nox SOx,Hg, CO2 • Existing Supply Resources Planning Reserve Margin and Operating Reserves • Reserve Capacity Range- 14-20% of firm Peak Demand • Allow for managing daily risk issues • Supply Risk-Loss of Generation resources (LOLP) 1/10yr • Demand Risk- unexpected increases on customer load • SERC Reserves- Provided through area agreement • Plant Retirements • New Generation 8 www.regulatorystaff.sc.gov

  9. Transmission System Assessment • Ten Year Schedule of Future Additions & Modifications • Customer Growth - Residential, Commercial, Industrial, and Wholesale • Emergency Assistance • Economic Opportunities for Customers • Meet Transmission Performance Standards 9 www.regulatorystaff.sc.gov

  10. Modeling • Short Range - 2 year forecasts for electric customers - average and total usage: • Historical and forecasted data • Weather sensitive average models HDD 60oF, 75oF CDD • Utilize Autoregressive integrated moving average approach (“ARIMA”) • Electric Sales Assumptions-30 forecasting groups • Long Range Sales Forecasts: • Classes of service cover 93% of total sales • Disaggregated into types of dwellings • Uses regression analysis fit methodology 10 www.regulatorystaff.sc.gov

  11. Questions/Comments 12 www.regulatorystaff.sc.gov

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