1. High Level Post Processing Cost Estimates MWG SSC Meeting September 26, 2011

2. Post Processing Cost Estimates Futures 4 and 8 increased EE/DR/DG Future 7 Nuclear Uprate Costs F2B, F3B, F5B, F5S7, F6B, and F6S5 integration costs Variable Energy Resource (VER) beyond 25% penetration Thermal integration costs (Contingency Reserves) 2

3. Energy Efficiency Demand Reduction 3

4. Energy Efficiency Supply Curves 4

5. Estimated Cost of Energy Efficiency 5

6. Energy Efficiency Estimated Costs (Billions 2010$) 6 Future LowMediumHigh All Futures Except Futures 4 and 8$5.4$9.5$13.6 Future 4 Sensitivities 0-2$43.4$84.6$125.9 Future 4 Sensitivity 3 1%/year Greater Efficiency $170.2$229.9$289.7 Fu tu re 8 Sensitivity 1 Combined National Policies 75% Overload Charge $29.9$42.5$59.1

7. Demand Response Estimated Cost (Billions 2010$) FutureLowMediumHigh All Futures Except Futures 4 and 8$0.5$0.8$1.2 Future 4 Sensitivities 0-2 and Future 8$1.6$4.7$7.8 Future 4 Sensitivity 3 1%/year Greater Energy Efficiency and DR $2.0$6.0$9.9 Assumptions Costs per customer ($/customer) from recent studies divided by potential peak load reduction per customer (MW/customer) to calculate $/MW Used $/MW for incremental peak load reductions per year in respective future 7

8. Futures 4 and 8 Estimated Distributed Generation Costs 2x Distributed Generation in BAU Assumed all behind-the-meter PV Assumed weighted average of the 2-5 kW and 5- 10 kW, $8,045/kW (2010$) The estimated cost of the renewable distributed generation during 2015-2030 is $98B. 8

9. Estimated Nuclear Uprate Costs FutureUprated CapacityCosts (Billions 2010$) All Futures except Future 71,538 MW$4.9 Future 7 Nuclear Resurgence 8,687 MW$32.3 9 Assumptions $2,600/kW All other assumptions the same as new nuclear

10. Variable Energy Resource Estimated Cost above 25% Penetration Limit Assumptions EWITS Scenario 4 served as starting point - $5.13/MWh (2009$) Gas price adjustment to capture the difference of EWITS and EIPC natural gas forecasts Estimated Wind Integration Costs (2010$) Low Range (-50%)MediumHigh Range (+75%) $1.96/MWh$3.93/MWh$6.87/MWh 10

11. Variable Energy Resource Estimated Integration Costs (Billions 2010$) FutureLowMediumHigh F1S3 Business As Usual Revised EPA Regulations $5.9$11.9$20.8 F2S11 Federal Carbon Policy National Implementation Harden transfer limit with 75% of Average Shadow Price $13.2$26.4$46.3 F8S1 Combined National Policies 75% Overload Charge $11.5$23.1$40.4 11

12. Contingency Reserves $2/MWh * (% coal, nuke, & CC study case/% coal, nuke, & CC BAU) Assumptions A 2003 study, Allocating Costs of Ancillary Services: Contingency Reserves and Regulation, suggests that costs of contingency reserves to accommodate the loss of the largest unit increases the operating costs and recommends a method that allocates based on its size and forced outages to incentivize generators to maintain their units. During Phase II the Planning Authorities should add new transmission and generation units consistent with traditional planning methods that expand the system in a manner with lowest costs. This often results in adding new transmission and generation in such a manner that the largest single contingency remains unchanged, and therefore would avoid any incremental costs. 12 Estimated Contingency Reserves (Billions 2010$) F1S3F2S11F8S1 $65.4$51.1$50.2