1. “Other” Cost Estimates
Stan Hadley
SSC Meeting
December 3, 2012

2. Other Cost Categories Costs not reported in MAPS
Annual costs, values are for 2030 only
Energy Efficiency
Demand Response
Variable Resource Integration
Thermal Contingency Factors
Fixed O&M
Capital Costs, Overnight costs through 2030
All costs in 2010 $

3. Phase 2 Part 5 Final Draft Page 41

4. Energy Efficiency Supply curves based on McKinsey and Ga Tech studies
Scenario 3 (Future 1 or BAU in Phase 1)
includes existing EE policies
2030 cost $0.8 to $2.1 billion
Future 2 in Phase 1 includes BAU EE plus CO2 cost
Assume demand reduction from demand substitution by using EE
2030 cost $5.7 to $17.2 billion
CO2-alone cost = $4.9 to $15.1 billion
Scenario 1 (Future 8) has incremental EE policies
Reduce demand growth rate by an additional 1%/year
2030 cost $11.3 to $26.6 billion, includes CO2
Scenario 1 non-CO2 EE cost = $6.4 to $11.5 billion

5. Energy Efficiency Supply Curves

6. Demand Response: Cost versus Price
Phase 1:FERC-developed National Assessment of Demand Response (NADR) model for total
Price in model used $750/MWh
Cost using early estimate of equipment
Phase 2: Updated assumptions
Create tiered price curve for models
Expand and update equipment costs

7. Demand Response Price Curve
6-Block Supply Curve and Model Curve with Allocated Non-Pricing DR in 2030

8. Communications Network Deployment Management
DR Cost Estimates
Estimated Cost-per-Meter of Various AMI System Component ($)
Scenario
Meters
IT Systems
Communications Network
Deployment Management
Annualized AMI O&M
High
243 65 66 81 23
Medium
190 27 43 63 7
Low
129 11 28 4
2030 Costs include ongoing O&M
S1 = $604 million
S2, S3 = $323 million
2030 AMI capital equipment cost
S1 = $148 million
S2, S3 = $87 million

9. Variable Energy Resource Integration Estimated Cost for 2030
Estimated Wind Integration Costs (2010$)
Low Range (-50%)
Medium
High Range (+75%)
$1.95/MWh
$3.91/MWh
$6.83/MWh
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
Scenario
TWh
Low
Medium
High S1
733
$1.4 B
$2.9 B
$5.0 B S2
568
$1.3 B
$2.5 B
$4.4 B S3
223
$0.5 B
$1.0 B
$1.8 B

10. Thermal Contingency Reserves
$2/MWh * (Coal + Nuclear + Combined Cycle)
Estimated Contingency Cost in 2030 (Billions 2010$) S1 S2 S3
1,881 TWh
2,494 TWh
3,107 TWh
$3.8
$5.0
$6.2
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.

11. Fixed O&M Costs Not calculated in GE MAPS Take from relevant NEEM case
Value is for the EI in 2030
Scenario
NEEM Case
O&M in 2030 S1
F8S7
$34.7 Billion S2
F6S10
$52.1 Billion S3
F1S17
$48.1 Billion

12. Estimated Nuclear Uprate Costs
Future
Uprated Capacity
Costs (Billions 2010$)
All three Scenarios
1,538 MW
$4.9
Assumptions
$2,600/kW
Costs occur before 2030

13. 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 capital cost of the renewable distributed generation added during is $83.4B.