Evaluation and Application of Additional Plans in IRPs

Anna MunieIRP Modeling & Analytics Team

Consumers Energy

Agenda • Company Background

• Consumers Energy Integrated Resource Plan- 2018• Formal Settlement- 2019

• Transition from Strategist to Aurora

• IRP Modeling- Optimal/Suboptimal Plans in Strategist

• IRP Modeling- Additional Plans Option in Aurora

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• Michigan’s 2nd largest electric and gas utility

• Provides electric service to 1.8 million customers

• Annual peak demand of approximately 8,000 MW

• Annual sales of approximately 36,000 GWh

• Owns, operates and purchases power as part of a balanced portfolio

Consumers Energy

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• First Michigan utility to file under new IRP requirements

• Analyzed a total of 224sensitivities under 3 different “worlds”

• Proposed Course of Action included:• 5 GW of new solar capacity by

2030

• Early retirement of coal units

• Expansions in demand side management programs and energy storage

2018 Integrated Resource

Plan

IRP Settlement- June 2019

• Settlement Agreement

approved June 9th, 2019

• 22 Intervening Parties

• Proposed Course of Action (PCA) approved as

proposed• 84 requirements identified per

Settlement Agreement for 2021 IRP

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This Photo by Unknown Author is licensed under CC BY

OPTIMAL RESOURCE PLAN

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CE Modeling- Strategist to AURORA

AURORA

Evaluation and Application Factors- SubOptimals

1) Net Present Value

• Small $$ difference, large

resource difference

2) Types of Resources

Selected

• Company programs

• Stakeholder input

3) Timing of Resource Builds

• When, and how big?

4) Resource/Portfolio Risk

• Diversity of portfolio

• Clean Energy Plan

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Strategist Optimal & Sub-Optimal Plans 8

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AURORA Additional Plans

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AURORA Additional Plans

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AURORA Additional Plans

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AURORA ADVANTAGES: Additional Plans

- Partial build options

- Improved modeling logic for

DSM and batteries

- Ease of evaluating optimized

plans across all sensitivities

Evaluation and Application Factors- Additional Plans

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Resource Plan

Company Plans

Additional Plans

Optimal Plans

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Questions?