Marc Montalvo, Daymark Energy Advisors President and Principal Consultant, was a featured speaker at the PJM Symposium "Grid 20/20: Focus on Public Policy Goals and Market Efficiency" on August 18, 2016. Find the full set of his slides from the event here, or view the event recording at http://www.pjm.com/committees-and-groups/stakeholder-meetings/symposiums-forums/grid-2020-public-policy-goals-mkt-efficiency.aspx

1. PJM Grid 20/20
MARC D. MONTALVO, PRESIDENT
AUGUST 18, 2016
Public Policy and Wholesale Energy Markets

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 Daymark Energy Advisors provides integrated
planning, strategy, and decision analysis to
the North American electric and natural gas
industries.
 We are proud to have served regulators,
utilities, developers, suppliers, and consumers
across the U.S. and Canada for 36 years.
About Daymark Energy Advisors

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 Many competing objectives
‐ Ensuring reliability
‐ Reducing Greenhouse Gas emissions
‐ Supporting renewable technologies
‐ Containing costs
‐ Preserving economic competitiveness and jobs
What is the Problem?

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Changing Fuel Price Economics
Source: EnerDynamics

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Low but Volatile Natural Gas Prices
Natural Gas Futures (as of 8/12/16)
0.000
1.000
2.000
3.000
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5.000
6.000
Sep-16
Nov-16
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Nov-21
Henry Hub TCO pool TETCO M3
Source: SNL

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State RPS Status
DE Yes
IL Yes
MD Yes
MI Yes
NJ Yes
NC Yes
OH Yes
PA Yes
DC Yes
VA Voluntary
IN Voluntary
KY No
TN No
WV Repealed
As of December 31, 2015
PJM Region
Source: RTO Insider
Source: SNL Financial

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New England Region
Source: ISO-NE presentation: Can Wholesale Markets Satisfy Public Goals?

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New England Region
Source: 2010 and 2015 data from ISO-NE; 2030 Daymark Energy Advisors’ estimates
0%
10%
20%
30%
40%
50%
60%
Nuclear Oil Coal Natural Gas Hydro and other
Renewables
Pumped storage
Percent of Total Electric Energy Production by Fuel Type
2000 2015 2030

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NYISO Region
 Clean Energy Standard
 Reform Energy Vision (REV)
 Distribution vs
Transmission Challenges
 Rate Design/Market Design
Source: Power Trends 2015 - NYISO

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NYISO Region
The NY Clean Energy Standard mandates 50% Renewables by 2030
Wind Generation in New York: Installed Capacity - 2003-2015
Source: Power Trends 2015 - NYISO

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 RPS Goal = 50% by 2030
 CAISO developed a Flexible Ramping Product
 Energy Balancing Market
 Targeted Capacity Contracting
CAISO Region
Source: CAISO – Energy and Aggregated DER Forum

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SPP Region
 TX, NM, MO have RPS
 Coal plant viability impacts reliability
Source: Clean Power Plan’s Reliability Impact conducted by SPP
Source: SNL Financial

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 Extreme Case of Duck Curve
 Who pays for reliability?
 Hawaii’s Gov. David Ige signed
into law a 100% renewable
energy mandate by 2045
Fully Rate Regulated Regions are Impacted
 Hawaii system peak 1,500 MW
 Solar almost 35% of peak load
 KAUI is an extreme case with
high PV penetration
Source: Hawaii Electric Companies
Source: Clean Technica

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Thank you
Let’s continue the conversation
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