market analysis: a comparison ofseem and the rto markets

Summer 2021

Market Analysis: A Comparison of SEEM and the RTO MarketsAcross Various Metrics

2

Disclaimers

Data and analyses contained in this presentation are accurate as of the year noted for the particular metric. The analyses were conducted in good faith and were based upon assumptions believed to be reasonable as of the date of this presentation.

The Southeastern Energy Exchange Market (SEEM) has yet to be approved by FERC and expected member participation is neither confirmed nor definite. All references to the SEEM are therefore in anticipation of FERC approval of the proposed SEEM and all analysis of "SEEM" was inclusive of expected members as of June 2021.

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Customer Satisfaction

How does the proposed SEEM compare to RTO markets across four metrics?

Market Analysis Overview

• J.D. Power 2020 Electric Utility Residential Satisfaction Study

• J.D. Power 2020 Electric Utility Business Satisfaction Study

Reliability Generation Mix Price

• J.D. Power 2020 Electric Utility Residential Satisfaction Study

• J.D. Power 2020 Electric Utility Business Satisfaction Study

• 2019 Energy Information Agency (EIA)

• Forms 860 and 923

• 2019 EIA data

• Residential, Industrial & Commercial

• Form 861

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The proposed SEEM Region...

Serves its customers by appropriately balancing customer satisfaction, reliability, price, and clean energy.

Is on pace with or outperforming the RTO markets across most metrics.

Will continue to increase clean energy generation while still providing world-class customer service and affordable and reliable power—all without an RTO.

Key Takeaway: RTOs Are Not Necessary to Deliver Clean, Affordable and Reliable Energy in the Proposed SEEM Region

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Customer Satisfaction

Compared to the RTO markets, in 2020 the average Customer Satisfaction score of utilities in the proposed SEEM region rankedfirst in the business segment and second in the residential segment, based on the J.D. Power 2020 Electric Utility Residential Satisfaction StudySM and the J.D. Power 2020 Electric Utility Business Satisfaction StudySM

Reliability Compared to the RTO markets, in 2020 the average Power Quality and Reliability satisfaction score of utilities in the proposed SEEM region rankedsecond in both the residential and business segments, based on the J.D. Power 2020 Electric Utility Residential Satisfaction StudySM and the J.D. Power 2020 Electric Utility Business Satisfaction StudySM

Key Takeaways: Summary of the Four Metrics

© 2021 J.D. Power. All Rights Reserved. Charts, graphs, data and insights extracted from this publication must be accompanied by a statement identifying J.D. Power as the publisher and the J.D. Power 2020 Electric Utility Residential Satisfaction StudySM and J.D. Power 2020 Electric Utility Business Satisfaction StudySM as the source. No media, advertising, or other promotional use can be made of the information in this publication or J.D. Power study results without the express prior written consent of J.D. Power.

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PriceIn 2019, the proposed SEEM region had prices that were competitive across all customer classes with the lowest priced RTO regions, and below the U.S. average prices and RTO average.

Generation Mix

Key Takeaways: Summary of the Four Metrics

In 2019, the share of clean energy generation in the proposed SEEM region was nearly the same as the share of clean energy generation across the combined RTO markets, according to EIA data.

In 2019, the share of coal generation in the proposed SEEM region was nearly the same as the share of coal generation across the combined RTO markets, according to EIA data.

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Customer Satisfaction &Power Quality and Reliability Satisfaction Analysis

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J.D. Power Factors: Summary of Customer Satisfaction Index and Power Quality and Reliability

A measure of critical components driving overall customer satisfaction among electric utility customers, which allows companies to identify and prioritize improvements and benchmark their performance among other large and midsize electric utilities throughout the United States.

Customer Satisfaction Index

A measure of providing quality electric power (in terms of spikes, drops, or surges), supplying electricity during extreme temperatures, avoiding brief and lengthy outages and, when an outage occurs, promptly restoring power all while keeping customers informed about the outage.

Power Quality & Reliability

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2020 Customer Satisfaction Index –Utilities in RTOs and SEEM

781 772 753 749 745 741 738 723 695650

700

750

800

850

ERCOT SEEM MISO PJM** CombinedRTO Markets

SouthwestPower Pool

California ISO NY ISO+ NE ISO

Residential

805 803 794 792 789 787 776 749 748

650

700

750

800

850

SEEM SouthwestPower Pool

ERCOT MISO PJM** CombinedRTO Markets

NY ISO+ California ISO NE ISO

Business

**Data for Dominion Energy is reported at the parent level, and because the majority of companies are outside of the proposed SEEM region, the utility average is included in the PJM average.+National Grid is included in the NY ISO averageSimple average used to calculate each RTO average


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2020 Power Quality and Reliability –Utilities in RTOs and SEEM

805 800 787 783 781 780 765 756 738700

750

800

850

900

ERCOT SEEM MISO PJM** SouthwestPower Pool

CombinedRTO Markets

California ISO NY ISO+ NE ISO

Residential

826 825 819 816 812 810 797 781 762700

750

800

850

900

SouthwestPower Pool

SEEM MISO PJM** CombinedRTO Markets

ERCOT NY ISO+ NE ISO California ISO

Business

**Data for Dominion Energy is reported at the parent level, and because the majority of companies are outside of the proposed SEEM region, the utility average is included in the PJM average.+National Grid is included in the NY ISO averageSimple average used to calculate each RTO average


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Generation Mix Analysis

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2019 Generation Mix: RTOs and SEEM

24.2%

36.2%

1.0%

21.6%

17.0%

All RTOs

Coal Gas Oil/Misc Nuclear Renewables/Other

25.0%

37.9%0.4%

30.3%

6.4%

SEEM


39% Nuclear & Renewables/

Other

Source: EIA Forms 860, 923

37% Nuclear & Renewables/

Other

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2019 Generation Mix by Region

Percent Nuclear & Renewables/Other

CAL ISO NY ISO NE ISO PJM SPP SEEM ERCOT MISO0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%61% 60% 45% 40% 39% 37% 32% 29%

Perc

ent C

ontr

ibut

ion

to T

otal

Gen

erat

ion


Source: EIA Forms 860, 923

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Price Analysis

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2019 Average Retail Prices

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2019 Average Residential Prices

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2019 Average Commercial Prices

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2019 Average Industrial Prices

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Appendix

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Data Source Descriptions

• Customer Satisfaction and Reliability– All utilities that participate in J.D. Power in the relevant market (J.D. Power participation thresholds

require 100,000 residential customers and 40,000 business customers)– Using last full year of data (2020)

• Price– All retail electricity sales to ultimate customers– SEEM: all companies that have announced interest in potentially participating in SEEM– 2019 data (complete 2020 EIA data will not be available until Q4 2021)– The data produced herein uses EIA data for each of the individual utilities within the SEEM footprint

using EIA data. In the Answer filed on March 30, 2021 in Docket No. ER21-1111, the members of SEEM provided data that corresponded to the state level data set presented by one of the interveners.

• Generation Mix– All generating units in the respective RTO market as flagged by EIA– SEEM: all units tied to potential SEEM participants' balancing authorities, according to EIA– 2019 data (complete 2020 EIA data will not be available until Q4 2021)

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Expected SEEM Members Included in Analyses

Associated Electric Cooperative, Dalton Utilities, Dominion Energy South Carolina, Duke Energy Carolinas, Duke Energy Progress, Georgia System Operations Corporation, Georgia Transmission Corporation, LG&E and KU Energy, MEAG Power, NCEMC, NCMPA1, Oglethorpe Power Corp., PowerSouth, Santee Cooper, Southern Company and TVA

market analysis: a comparison ofseem and the rto markets

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