Text

Integrated Resource Plan
	ML21105A859
Person / Time
Site:	Surry, North Anna
Issue date:	05/01/2020
From:	Link V; McGuireWoods, LLP, Virginia Electric & Power Co (VEPCO)
To:	Peck J; Office of Nuclear Material Safety and Safeguards, State of VA, State Corporation Commission
References
	18651, PUR-2020-00035
	Download: ML21105A859 (302)
	v • d • e

Virginia State Corporation Commission eFiling CASE Document Cover Sheet Case Number (if already assigned) PUR-2020-00035 Case Name (if known) Commonwealth of Virginia, ex rel. State Corporation Commission, In re: Virginia Electric and Power Companys Integrated Resource Plan filing pursuant to Va. Code §56-597 et seq.

Document Type OTHR Document Description Summary the 2020 Integrated Resource Plan of Virginia Electric and Power Company - part 1 of 4 Total Number of Pages 70 Submission ID 18651 eFiling Date Stamp 5/1/2020 2:08:39PM

McCuircWoods LLP

<! © "S $ (! K Gateway Plaza 800 East Canal Street Richmond, VA 23219-3916 Phone: 804.775.1000 Fax: 804.775.1061 www.mcguirewoods.coni Vishwa H. Link Direct: 804.775.4330 McGUIREWOODS vlinkfflnicguirewoads.coni

Richmond, VA 23219 Commonwealth of Virginia, ex rel. State Corporation Commission, In re: Virginia Electric and Power Company's Integrated Resource Plan filing pursuant to Va. Code §56-597 el seq.

Case No. PUR-2020-00035

Dear Mr. Peck:

Please find enclosed for electronic filing in the above-captioned proceeding the 2020 Integrated Resource Plan of Virginia Electric and Power Company (the 2020 Plan) filed pursuant to §56-597 et seq. of the Code of Virginia (Va. Code), the December 23, 2008 Order Establishing Guidelines for Developing Integrated Resource Plans issued by the State Corporation Commission of Virginia (Commission) in Case No. PUE-2008-00099 (Order Establishing Guidelines), and the Integrated Resource Planning Guidelines (Guidelines). As required by the Commission, a reference index is enclosed that identifies the sections of the 2020 Plan that comply with the Va. Code, the Guidelines, and the requirements of relevant prior Commission orders. Also enclosed is a copy of the Companys proposed notice in this proceeding pursuant to Section E of the Guidelines.

Along with the 2020 Plan, the Company is filing two addenda under separate cover.

Virginia Addendum 1 contains a Virginia residential bill analysis, and is being filed in public and extraordinarily sensitive versions. Virginia Addendum 2 contains the Grid Transformation Plan Document, and is being filed in public version only.

In addition to the addenda, the Company is contemporaneously filing its Motion for Entry of a Protective Order and Additional Protective Treatment for Extraordinarily Sensitive Information under separate cover.

Separate from these filings with the Commission, the Company is providing Commission Staff with the Guidelines schedules associated with the 2020 Plan in electronic format pursuant to Section E of the Guidelines, and is providing a copy of the 2020 Plan to members of the General Assembly pursuant to Va. Code §56-599.

Allanta l Austin l Baltimore l Brussels l Charlotte l Charlottesville l Chicago l Dallas l Houston l Jacksonville l London l Los Angeles - Century City Los Angeles - Downtown l New York l Norfolk l Pittsburgh l Raleigh l Richmond l San Francisco l Tysons l Washington, D.C. l Wilmington

May 1,2020 y Mr. Joel H. Peck © Page 2 Please do not hesitate to contact me if you have any questions in regard to this filing.

fei Very truly yours,

/s/ Vishwa B. Link Vishwa B. Link Enclosure cc: Honorable D. Mathias Roussy, Hearing Examiner Paul E. Pfeffer, Esq.

Audrey T. Bauhan, Esq.

Jennifer D. Valaika, Esq.

Sarah R. Bennett, Esq.

Service List

2020 Integrated Resource Plan Reference Index Case No. PUR-2020-00035 M

Order/Guideline 2020 Plan Section Requirement ssaiaj a,Sij Va. Code §56-598 (1) Section 2.2 An IRP should:

Alternative Plans 1. Integrate, over the planning period, the electric utilitys forecast of demand for electric generation supply with recommended plans to meet that forecasted demand and assure adequate and sufficient reliability of service, Including, but not limited to: a. Generating electricity from generation facilities that It currently operates or Intends to construct or purchase: b. Purchasing electricity from affiliates and third parties; and c. Reducing load growth and peak demand growth through cost-effective demand reduction programs;__________________ _____

Va. Code §56-598 (2) 2020 Plan Identify a portfolio of electric generation supply resources. Including purchased and self-generated electric power, that: a. Consistent with §56-585.1, is most likely to provide the electric generation supply needed to meet the forecasted demand, net of any reductions from demand side programs, so that the utility will continue to provide reliable service at reasonable prices over the long term; and b.

Will consider low cost energy/capaclty available from short-term or spot market transactions, consistent with a reasonable assessment of risk with respect to both price and generation supply availability over the term of the plan; Va. Code §56-598 (3) Section 2.2 Reflect a diversity of electric generation supply and cost-effective demand reduction contracts and Alternative Plans services so as to reduce the risks associated with an over-reliance on any particular fuel or type of generation demand and supply resources and be consistent with the Commonwealth's energy policies as set forth in §67-102; and_________________________

Va. Code §56-598 (4) 2020 Plan Include such additional information as the Commission requests pertaining to how the electric utility Reference Index Intends to meets Its obligation to provide electric generation service for use by Its retail customers over the planning period.

Va. Code §56-599 (A) 2020 Plan Each electric utility shall file an updated integrated resource plan by July 1, 2015. Thereafter, each electric utility shall file an updated Integrated resource plan by May 1, In each year Immediately preceding the year the utility Is subject to a triennial review filing. A copy of each Integrated resource plan shall be provided to the Chairmen of the House and Senate Committees on Commerce and Labor and to the Chairman of the Commission on Electric Utility Regulation.

Va. Code §56-599 (A) 2020 Plan All updated integrated resource plans shall comply with the provisions of any relevant order of the Reference Index Commission establishing guidelines for the format and contents of updated and revised integrated resource plans. Each Integrated resource plan shall consider options for maintaining and enhancing rate stability, energy Independence, economic development Including retention and expansion of energy-intensive industries, and service reliability.

Va. Code §56-599 (B) Chapters In preparing an Integrated resource plan, each electric utility shall systematically evaluate, and may Generation - Supply-Side Resources propose:

1. Entering Into short-term and long-term electric power purchase contracts; Va. Code §56-599 (B) Chapter 5 In preparing an Integrated resource plan, each electric utility shall systematically evaluate, and may Generation - Supply-Side Resources propose:

2. Owning and operating electric power generation facilities; Va. Code §56-599 (B) Chapters In preparing an integrated resource plan, each electric utility shall systematically evaluate, and may Generation - Supply-Side Resources propose:

3. Building new generation facilities;_______________________________________________________

Va. Code §56-599 (B) Section 4.2 In preparing an Integrated resource plan, each electric utility shall systematically evaluate, and may Capacity Market Assumptions propose:

4. Relying on purchases from the short term or spot markets; Va. Code §56-599 (B) Chapter 6 In preparing an Integrated resource plan, each electric utility shall systematically evaluate, and may Generation - Demand-Side Management propose:

5. Making Investments In demand-side resources, Including energy efficiency and demand-side management services;_______________________________________________

Va. Code §56-599 (B) Section 2.2 In preparing an integrated resource plan, each electric utility shall systematically evaluate, and may Alternative Plans propose:

6. Taking such other actions, as the Commission may approve, to diversify its generation supply portfolio and ensure that the electric utility Is able to Implement an approved plan;__________

Va. Code §56-599 (B) Section 2.2 In preparing an integrated resource plan, each electric utility shall systematically evaluate, and may Alternative Plans propose:

7. The methods by which the electric utility proposes to acquire the supply and demand resources Identified in its proposed integrated resource plan; Va. Code §56-599 (B) Section 1.2 In preparing an integrated resource plan, each electric utility shall systematically evaluate, and may Virginia Clean Economy Act propose:

Section 1.3 8. The effect of current and pending state and federal environmental regulations upon the continued Regional Greenhouse Gas Initiative operation of existing electric generation facilities or options for construction of new electric Section 1.11 generation facilities; Other Environmental Regulation Section 5.2.3 Environmental Regulations________

Va. Code §56-599 (B) Section 2.3 In preparing an integrated resource plan, each electric utility shall systematically evaluate, and may NPV Results propose:

9. The most cost effective means of complying with current and pending state and federal environmental regulations, Including compliance options to minimize effects on customer rates of such regulations;________________________________________________________________________

Page 1 of 9

2020 Integrated Resource Plan Reference Index Case No. PUR-2020-00035 Order / Guideline ____________2020 Plan Section Requirement ej 0 U Va. Code §56-599 (B) Chapter 8 In preparing an Integrated resource plan, each electric utility shall systematically evaluate, and may 5 Distribution propose: &

10. Long-term electric distribution grid planning and proposed electric distribution grid transformation Va. Code §56-599 (B) Chapters projects; and_________________ _________________ ___ _ ________________

In preparing an integrated resource plan, each electric utility shall systematically evaluate, and may ii! Kg Generation - Demand-Side Management propose: £

11. Developing a long-term plan for energy efficiency measures to accomplish policy goals of hs reduction In customer bills, particularly for low-income, elderly, and disabled customers; reduction In emissions; and reduction In carbon Intensity,__________________________________________________

Chapter 296 Section 5.5.1 That any Phase II Utility, as that term Is defined In subdivision A1 of 5 56-585.1 of the Code of Virginia, Enactment Clause 12 Supply-Side Resource Options shall consider In Its Integrated resource plan next filed after July 1, 2018, either as a demand-side Section 9.3.1 energy efficiency measure or a supply-side generation alternative, whether the construction or Plan-Related Mandates purchase of one or more generation facilities with at least one megawatt of generating capacity, having a measurable aggregate rated capacity of 200 megawatts by 2024, that use combined heat and power or waste heat to power and are located In the Commonwealth, are In the customer interest.

For purposes of this analysis, the total efficiency, including the use of thermal energy, for eligible combined heat and power facilities must meet or exceed 65 percent (Lower Heating Value). The assumed efficiency of waste heat to power systems that do not burn any supplemental fuel and use only waste heat as a fuel source is 100 percent. As used In this enactment, "waste heat to power" means a system that generates electricity through the recovery of a qualified waste heat resource and "qualified waste heat resource" means (I) exhaust heat or flared gas from an Industrial process that does not have, as Its primary purpose, the production of electricity and (II) a pressure drop In any gas for an industrial or commercial process.

Chapter 296 Section 6.6 That as part of Its Integrated resource plans filed between 2019 and 2028, any Phase II Utility, as that Enactment Clause 18 GTSA Energy Efficiency Analysis term Is defined in subdivision A 1 of §56-585.1 of the Code of Virginia, shall incorporate Into Its long Section 9.3.1 term plan for energy efficiency measures policy goals of reduction In customer bills, particularly for Plan-Related Mandates low-income, elderly, veterans, and disabled customers; reduction In emissions; and reduction In the utility's carbon Intensity. Considerations shall include analysis of the following: energy efficiency programs for low-income customers In alignment with billing and credit practices; energy efficiency programs that reflect policies and regulations related to customers with serious medical conditions; programs specifically focused on low-income customers, occupants of multlfamlly housing, veterans, elderly, and disabled customers; options for combining distributed generation, energy storage, and energy efficiency for residential and small business customers; the extent that electricity rates account for the amount of customer electricity bills In the Commonwealth and how such extent In the Commonwealth compares with such extent In other states. Including a comparison of the average retail electricity price per kWh by rate class among all 50 states and an analysis of each state's primary fuel sources for electricity generation, accounting for energy efficiency, heating source, cooling load, housing size, and other relevant factors; and other issues as may seem appropriate.

Guideline (A) Chapter 4 In order to understand the basis for the utility's plan, the IRP filing shall Include a narrative summary Generation - Planning Assumptions detailing the underlying assumptions reflected In its forecast as further described In the guidelines. To Chapters better follow the utility's planning process, the narrative shall include a description of the utility's Generation - Supply-Side Resources rationale for the selection of any particular generation addition or demand-side management program to fulfill Its forecasted need. Such description should Include the utility's evaluation of Its purchase options and cost/benefit analyses for each resource option to confirm and justify each resource option it has chosen. Such narrative shall also describe the planning process including timelines and appropriate reviews and/or approvals of the utility's plan. For members of PJM Interconnection, LLC

("PJM"), the narrative should describe how the IRP incorporates the PJM planning and implementation processes and how it will satisfy PJM load obligations.

Guideline (A) See References for Guideline (F)(7) and These guidelines also include sample schedules to supplement this narrative discussion and assist the Schedules utilities In developing a tabulation of the utility's forecast for at least a 15-year period and Identify the projected supply-side or demand-side resource additions and solutions to adequately and reliably meet the electricity needs of the Commonwealth. This tabulation shall also Indicate the projected effects of demand response and energy efficiency programs and activities on forecasted annual energy and peak loads for the same period. These guidelines also direct that all IRP filings Include Information to comparably evaluate various supply-side technologies and demand-side programs and technologies on an equivalent basis as more fully described below In Section F(7).

Guideline (C)(1) Section 2.2 1. Forecast A three-year historical record and a 15-year forecast of the utility's native load Alternative Plans requirements, the utilitys PJM load obligations if appropriate, and other system capacity or firm Appendix 2A energy obligations for each peak season along with the supply-side (Including owned/leased Plans A-D - Capacity & Energy generation capacity and firm purchased power arrangements) and demand-side resources expected Section 4.1 to satisfy those loads, and the reserve margin thus produced.

Load Forecast Appendix 4H Projected Summer & Winter Peak Load 8i Energy Forecast for Plan B Appendix 41 Required Reserve Margin for Plan B Page 2 of 9

2020 Integrated Resource Plan Reference Index Case No. PUR-2020-00035 Order / Guideline Guideline (C)(2)

____________2020 Plan Section________

Chapters

______________________________________ Requirement____________________________________

2. Option analyses. A comprehensive analysis of all existing and new resource options (supply- and 3 -si cS £ Generation - Supply-Side Resources demand-side), Including costs, benefits, risks, uncertainties, reliability, and customer acceptance tir Chapter 6 where appropriate, considered and chosen by the utility for satisfaction of native load requirements Generation - Demand-Side Management and other system obligations necessary to provide reliable electric utility service, at the lowest Si reasonable cost, over the planning period._______ _______

Guideline (C)(2)(a)' Section 4.2 a. Purchased Power - assess the potential costs and benefits of purchasing power from wholesale E£ Capacity Market Assumptions power suppliers and power marketers to supply it with needed capacity and describe In detail any decision to purchase electricity from the wholesale power market._____________________________

Guideline (C)(2)(b) Section 5.5 b. Supply-side Energy Resources - assess the potential costs and benefits of reasonably available Future Supply-Side Generation Resources traditional and alternative supply-side energy resource options, including, but not limited to technologies such as, nuclear, pulverized coal, clean coal, circulating fluidized bed, wood, combined cycle, integrated gasification combined cycle, and combustion turbine, as well as renewable energy resources such as those derived from sunlight, wind, falling water, sustainable biomass, energy from waste, municipal solid waste, wave motion, tides, and geothermal power.

Guideline (C)(2)(c) Chapter 6 c. Demand-side Options - assess the potential costs and benefits of programs that promote demand-Generation - Demand-Side Management side management. For purposes of these guidelines, peak reduction and demand response programs Appendix 41 and energy efficiency and conservation programs will collectively be referred to as demand-side Load Duration Curves options.

Guideline (C)(2)(d) Chapter 4 d. Evaluation of Resource Options - analyze potential resource options and combinations of resource Generation - Planning Assumptions options to serve system needs, taking Into account the sensitivity of Its analysis to variations In future estimates of peak load, energy requirements, and other significant assumptions, including, but not limited to, the risks associated with wholesale markets, fuel costs, construction or Implementation costs, transmission and distribution costs, environmental impacts and compliance costs.

Guideline (C)(3) As Applicable 3. Data availability. To the extent the Information requested is not currently available or Is not applicable, the utility will clearly note and explain this In the appropriate location In the plan, narrative, or schedule.______________________________________________________________________________

Guideline (D) Chapter 1 Each utility shall provide a narrative summary detailing the major trends, events, and/or conditions Significant Development and Context for reflected In the forecasted data submitted in response to these guidelines.

Integrated Planning Process___________

Guideline (D)(1) Section 4.1 1. Discussion regarding the forecasted peak load obligation and energy requirements. PJM members Load Forecast should also discuss the relationship of the utility's expected non-coincident peak and its expected PJM Section 4.2 related load obligations.

Capacity Market Assumptions Guideline (D)(2) Section 2.2 2. Discussion regarding company goals and plans in response to directives of Chapters 23 and 24 of Alternative Plans Title 56 of the Code of Virginia, including compliance with energy efficiency, energy conservation, Chapter 3 demand-side and response programs, and the provision of electricity from renewable energy Short-Term Action Plan resources.

Guideline (D)(3) Chapter 4 3. Discussion regarding the complete planning process, including timelines, assumptions, reviews, Generation - Planning Assumptions approvals, etc., of the company's plans. For PJM members, the discussion should also describe how the IRP Integrates into the complete planning process of PJM.

Guideline (D)(4) Section 4.1 4. Discussion of the critical input assumptions to determine the load forecast and expected changes In Load Forecast load growth including factors such as energy conservation, efficiency, load management, demand response, variations in customer class sizes, expected levels of economic activity, variations In fuel prices and appliance inventories, etc.

Guideline (D)(5) Chapter 4 5. Discussion regarding cost/benefit analyses and the results of such factors on this plan, Including the Generation - Planning Assumptions methodology used to consider equal or comparable treatment afforded both the demand-side options Chapter 5 and.supply-side resources.

Generation - Supply-Side Resources Chapters Generation - Demand-Side Management Guideline (D)(6) Section 5.2 6. Planned changes In operating characteristics such as unit retirements, unit uprates or derates, Evaluation of Existing Generation changes In unit availabilities, changes In capacity resource mix, changes In fuel supplies or transport, Appendix 5J emissions compliance, unit performance, etc.

Potential Unit Retirements Appendix 5K Planned Changes to Existing Generation Units Appendix 5L Environmental Regulations Page 3 of 9

2020 Integrated Resource Plan Reference Index Case No. PUR-2020-00035 Order / Guideline 2020 Plan Section Requirement Guideline (D)(7) Section 2.2 7. Discussion regarding the effectiveness of the utilitys IRP to meet Its load obligations with supply- a Alternative Plans side and demand-side resources to enable the utility to provide reliable service at reasonable prices over the long term. i*

3 Guideline (E) 2020 Plan By September 1, 2009, and every two years thereafter, each utility shall file with the Commission Its \

then current integrated resource plan, which shall Include all Information required by these guidelines.

for the ensuing 15-year planning period along with the prior three-year historical period. The process and analyses shall be described In a narrative discussion and the results presented In tabular format 3 using an EXCEL spreadsheet format, similar to the attached sample schedules, and be provided In both printed and electronic media. For those utilities that operate as part of a multi-state integrated power system, the schedules should be submitted for both the Individual company and the generation planning pool of which the utility is a member. The top line stating the company name should Indicate that the data reflects the individual utility company or the total system. For partial ownership of any facility, please provide the percent ownership and footnote accordingly Guideline (E) Chapters Each filing shall include a five-year action plan that discusses those specific actions currently being Short-Term Action Plan taken by the utility to implement the options or activities chosen as appropriate per the IRP.

Guideline (E) 2020 Plan if a utility considers certain information in its IRP to be proprietary or confidential, the utility may so Motion for Protective Order designate, file separately and request such treatment in accordance with the Commission's Rules of Practice and Procedures.

Guideline (E) 2020 Plan As §56-599 E requires the giving of notice and an opportunity to bo heard, each utility shall also Proposed Notice Include a copy of its proposed notice to be used to afford such an opportunity.

Guideline (F)(1) Section 4.1 1. Forecast of Load. The forecast shall include descriptions of the methods, models, and assumptions Load Forecast used by the utility to prepare Its forecasts of Its loads, requirements associated with the utility's PJM load obligation (MW) If appropriate, the utility's peak load (MW) and energy sales (MWh) and the variables used In the models Guideline (F)(1)(a) Appendix 4A a. The most recent three-year history and 15-year forecast of energy sales (kWh) by each customer Total Sales by Customer Class (DOM LSE) class (GWh)

Appendix 4B Virgilnia Sales by Customer Class (DOM LSE)

(GWh)

Appendix 4C North Carolina Sales by Customer Class (DOM LSE) (GWh)

Guideline (F)(1)(b) Appendix 4H b. The most recent three-year history and 15-year forecast of the utility's peak load and the expected Projected Summer & Winter Peak Load & load obligation to satisfy PJM's coincident peak forecast if appropriate, and the utility's coincident Energy Forecast for Plan B peak load and associated noncoincident peak load for summer and winter seasons of each year (prior Appendix 41 to any DSM), annual energy forecasts, and resultant reserve margins. During the forecast period, the Required Reserve Margin for Plan B tabulation shall also indicate the projected effects of Incremental demand-side options on the forecasted annual energy and peak loads Guideline (F)(1)(c) Section 5.5 c. Where future resources are required, a description and associated characteristics of the option that Future Supply-Side Generation the utility proposes to use to address the forecasted need Guideline (F)(2) Chapter 1 2. Supply-side Resources. The forecast shall provide data for Its existing and planned electric Significant Developments and Context for generating facilities (Including planned additions and retirements and rating changes, as well as firm Integrated Planning Process purchase contracts, including cogeneration and small power production) and a narrative description of Chapter 5 the drlver(s) underlying such anticipated changes such as expected environmental compliance, carbon Generation - Supply-Side Resources restrictions, technology enhancements, etc.

Page 4 of 9

2020 Integrated Resource Plan Reference Index Case No. PUR-2020-00035 Order / Guideline 2020 Plan Section ______________________________________ Requirement______________________________________ tii Guideline (F)(2)(a) Section 5.2 a. Existing Generation. For existing units In service:

Evaluation of Existing Generation I. Type of fuel(s) used lii iin it Appendix 5A II. Type of unit (e.g., base, intermediate, or peaking)

Existing Generation Units In Service ill. Location of each existing unit Appendix 5J Iv. Commercial Operation Date Potential Unit Retirements v. Site (nameplate, dependable operating capacity, and expected capacity value to meet load Appendix SK obligation (MW)) !B Planned Changes to Existing Generation Units vl. Units to be placed in reserve shutdown or retired from service with expected date of shutdown or retirement and an economic analysis supporting the planned retirement or shutdown dates vii. Units with specific plans for life extension, refurbishment, fuel conversion, modification or upgrading. The reporting utility shall also provide the expected (or actual) date removed from service, expected return to service date, capacity rating upon return to service, a general description of work to be performed as well as an economic analysis supporting such plans for existing units viil. Major capital improvements such as the addition of scrubbers, shall be evaluated through the IRP analysis to assess whether such improvements are cost justified when compared to other alternatives, including retirement and replacement of such resources lx. Other changes to existing generating units that are expected to Increase or decrease generation capability of such units.

Guideline (F)(2)(b) Section 5.5 b. Assessment of Supply-side Resources. Include the current overall assessment of existing and Future Supply-Side Generation potential traditional and alternative supply-side energy resources, Including a descriptive summary of each analysis performed or used by the utility in the assessment. The utility shall also provide general Information on any changes to the methods and assumptions used In the assessment since Its most recent IRP or annual report._________________________________ ________

Guideline (F)(2)(b)(l) Appendix 3C I. For the currently operational or potential future supply-side energy resources Included, provide Comparison of Short-Term Action Plans Information on the capacity and energy available or projected to be available from the resource and Appendix SO associated costs. The utility shall also provide this information for any actual or potential supply-side Renewable Resources for Plan B energy resources that have been discontinued from Its plan since Its last biennial report and the Appendix 5P reasons for that discontinuance.

Potential Supply-Side Resources for Plan B Appendix 5Q Summer Capacity Position for Plan B Appendix SR Capacity Position for Plan B Appendix 5S Construction Forecast for Plan B Guideline (F)(2)(b)(ii) Section S.5.1 il. For supply-side energy resources evaluated but rejected, a description of the resource; the potential Supply-Side Resource Options capacity and energy associated with the resource; estimated costs and the reasons for the rejection of the resource.

Guideline (F)(2)(c) Section 5.3 c. Planned Generation Additions. A list of planned generation additions, the rationale as to why each Generation Under Construction listed generation addition was selected, and a 15-year projection of the following for each listed Appendix 3A addition:

Generation Under Construction I. Type of conventional or alternative facility and fuel(s) used Appendix 3B ii. Type of unit (e .g. baseload, Intermediate, peaking)

Planned Generation under Development III. Location of each planned unit, including description of locational benefits Identified by PJM and/or the utility Iv. Expected Commercial Operation Date

v. Size (nameplate, dependable operating capacity, and expected capacity value to meet load obligation (MW))

vi. Summaries of the analyses supporting such new generation additions, Including Its type of fuel and designation as base, intermediate, or peaking capacity vil. Estimated cost of planned unit additions to compare with demand-side options_________________

Guideline (F)(2)(d) Section 5.1.3 d. Non-Utlllty Generation. A separate list of all non-utility electric generating facilities Included In the Non-Utlllty Generation IRP, including customer-owned and stand-by generating facilities. This list shall Include the facility Appendix SB name, location, primary fuel type, and contractual capacity (including any contract dispatch conditions Other Generation Units or limitations), and the contractual start and expiration dates. The utility shall also Indicate which facilities are Included in their total supply of resources Guideline (F)(3) Section 2.1 3. Capacity Position. Provide a narrative discussion and tabulation reflecting the capacity position of Capacity and Energy Position the utility in relation to satisfying PJM's load obligation, similar to Schedule 16 of the attached Appendix 2A schedules.

Plans A-D - Capacity & Energy Appendix 5Q Summer Capacity Position for Plan B Page 5 of 9

2020 Integrated Resource Plan Reference Index Case No. PUR-2020-00035 Order/Guideline 2020 Plan Section Requirement Guideline (F)(4) Appendix 4K 4. Wholesale Contracts for the Purchase and Sale of Power. A list of firm wholesale purchased power Wholesale Power Sales Contracts and sales contracts reflected in the plan, Including the primary fuel type, designation as base, intermediate, or peaking capacity, contract capacity, location, commencement and expiration dates, and volume.

Guideline (F)(5) Chapter 6 5. Demand-side Options. Provide the results of Its overall assessment of existing and potential Generation - Demand-Side Management demand-side option programs, Including a descriptive summary of each analysis performed or used by Appendices 6A to 6N the utility In its assessment and any changes to the methods and assumptions employed since its last IRP. Such descriptive summary, and corresponding schedules, shall clearly identify the total Impact of each DSM program._______________________________________________________________________

Guideline (F)(6) Chapter S 6. Evaluation of Resource Options. Provide a description and a summary of the results of the utilitys Generation - Supply-Side Resources analyses of potential resource options and combinations of resource options performed by It pursuant Section 4.6.3 to these guidelines to determine its integrated resource plan. IRP filings should Identify and Include Solar Interconnection and Integration Costs forecasted transmission interconnection and enhancement costs associated with specific resources evaluated In conjunction with the analysis of resource options.

Guideline (F)(7) Section 5.5.2 7. Comparative Costs of Options. Provide detailed Information on levellzed busbar costs, annual levellzed Busbar Costs revenue requirements or equivalent methodology for various supply-side options and demand-side Appendix 5M options to permit comparison of such resources on equitable footing. Such data should be tabulated Tabular Results of Busbar and at a minimum, reflect the resource's heat rate, variable and fixed operating maintenance costs, Appendix SN expected service life, overnight construction costs, fixed charged rate, and the basis of escalation for Busbar Assumptions_____ each component._______________________________________________________________________

Schedule 1 Appendix 4H Peak load and energy forecast Projected Summer & Winter Peak Load &

Energy Forecast for Plan 8 Schedule 2 Appendix 5G Generation output Energy Generation by Type for Plan B (G Wh)

Schedule 3 Appendix SH System output mix Energy Generation by Type for Plan B (%)

Schedule 4 Appendix SR Seasonal capability Capacity Position for Plan B Schedules Appendix 4J Seasonal load Summer and Winter Peak for Plan B Schedule 6 Appendix 41 Reserve margin Required Reserve Margin for Plan B Schedule 7 Appendix 5F Installed capacity Existing Capacity for Plan B Schedules Appendix SC Equivalent availability factor Equivalent Availability Factor for Plan B Schedule 9 Appendix 5D Net capactiy factor Net Capacity Factor Schedule 10 Appendix 5E Average heat rate Heat Rates for Plan B Schedule 11 Appendix SO Renewable resources Renewable Resources for Plan B Schedule 12 Appendix 6D DSM programs Approved Programs Energy Savings for Plan B (MWh) (System Level)

Appendix 61 Proposed Programs Energy Savings for Plan B (MWh) (System Level)

Appendix 6L Future Undesignated EE Energy Savings for Plan B (MWh) (System Level)______________

Schedule 13 Appendix 5K Unit size uprate and derate Planned Changes to Existing Generation Units Schedule 14 Appendix 5A Existing unit performance data Existing Generation Units In Service Appendix SB Other Generation Units Page 6 of 9

2020 Integrated Resource Plan Reference Index Case No. PUR-2020-00035 Order/Guideline ____________ 2020 Plan Section_________ Requirement Schedule 15 Appendix 3A Planned unit performance data Generation under Construction Appendix 3B Planned Generation under Development Appendix 5P Potential Supply-Side Resources for Plan B Schedule 16 Appendix SQ Utility capacity position Summer Capacity Position for Plan B Schedule 17 Appendix 5S Construction forecast Construction Forecast for Plan B Schedule 18 Appendix 4R Fuel data Delivered Fuel Data Case No. PUR-2020-00035 Section 2.2 Dominion should model the costs and reliability Impacts of the VCEA and other relevant legislation In Order at 1-2 Alternative Plans its 2020IRP.

Section 4.10 In addition to existing requirements, Including the requirement to model a "least cost plan,"

VCEA-Related Assumptions Dominion's 2020 IRP shall:

1. Model the mandates and requirements of the VCEA and other relevant legislation based on the best available Information, using reasonable and appropriately documented assumptions if necessary; Case No. PUR-2020-00035 Section 2.4 Dominion's 2020 IRP shall:

Order at 2 NPV Results 2. Calculate separately the net present value costs to customers of the least cost plan, the VCEA, and other relvant legislation Including not only generation costs but also transmission and distribution costs;__________________________________________________________________________________

Case No. PUR-2020-00035 Section 2.6 Dominion's 2020 IRP shall:

Order at 2 Virginia Residential Bill Analysis 3. Calculate separately the annual bill impacts of the least cost plan, the VCEA, and additional Va. Plan Addendum 1 legislation over each of the next ten years as compared to the bill of a residential customer using Virginia Residential Bill Analysis 1,000 kilowatt-hours per month as of May 1, 2020, Including not only generation costs but also transmission and distribution costs;_________________________________________________________

Case No. PUR-2020-00035 Section 4.1.3 Dominion's 2020 IRP shall:

Order at 3 Energy Efficiency Adjustment 4. For purposes of the modeling directed herein, other than the least cost plan, the Company shall model the impact of applicable energy efficiency requirements on the load forecast, separately as (a) an impact on the PJM peak load and energy sales forecast, and (b) a supply-side resource; Case No. PUR-2020-00035 Section 2.5 Dominion's 2020 IRP shall:

Order at 3 Transmission System Reliability Analysis 5. Include an engineering analysis of the effects of the mandates and requirements of the VCEA and Section 7.5 other relevant legislation on reliability of service to customers and Identify any Company concerns Transmission System Reliability Analysis regarding the impact of the mandates and requirements of the VCEA and other relevant legislation on the .reliability of the Company's service; and__________________________________________________

Case No. PUR-2020-00035 Section 9.2 Dominion's 2020 IRP shall:

Order at 3 Effect of Infrastructure Programs on Overall 6. Include an analysis of how the Infrastructure deployment and costs associated with the Company's Resource Plan electric distribution and transmission system programs, such as its Grid Transformation Plan, Underground Transmission Line Pilot, Battery Storage Pilot and Strategic Undergrounding Program, impact the Company's overall resource plan. Identify whether these distribution and transmission improvements enable broader deployments of distributed energy resources such as residential rooftop solar and whether such broader deployment displaces the need for traditional generation resources In the proposed build plans, Include any reduction In costs associated with changes In the proposed build plans that would otherwise be required by the IRP.

Case No. PUR-2018-00065 Section 2.2 In future IRPs, the Company shall:

Final Order at 11 Alternative Plans 1. Model a true least-cost plan, as defined In the December 2018 Order.

Section 4.9 Case No. PUR-2018-00065 Least-Cost Plan Assumptions In the Order on Reconsideration, the Commission confirmed that this directive encompasses the Order on Reconsideration at 3 concept that Commission-approved generation resources will not be required to be "modeled" for Inclusion at all, but will appear as existing or under construction depending upon their development status._________________________________________________________________________________

Case No. PUR-2018-00065 Section 4.1 In future IRPs, the Company shall:

Final Order at 11 Load Forecast 2. Continue to use the PJM load forecast, reduced by the energy efficiency spending requirement of Senate Bill 966 (Enactment Clause 15), both as an energy reduction and a supply resource, and separately identify the load associated with data centers._____________________________________

Case No. PUR-2018-00065 Section 4.7 In future IRPs, the Company shall:

Final Order at 11 Storage-Related Assumptions 3. Model battery storage using the most updated cost estimates available.______________________

Case No. PUR-2018-00065 Section 4.4 In future IRPs, the Company shall:

Final Order at 11 Commodity Price Assumptions 4. Model compliance with the Regional Greenhouse Gas Initiative.

Case No. PU R-2018-00065 Section 4.8 In future IRPs, the Company shall:

Final Order at 11 Gas Transportation Cost Assumptions 5. Model gas transportation costs, including a reasonable estimate of fuel transportation costs (firm and Interruptible transportation, If applicable) associated with all natural gas generation facilities as Case No. PUR-2018-00065 well as fuel commodity costs, consistent with the December 2018 Order Dec, 2018 Order at 5, n. 14 Page 7 of 9

2020 Integrated Resource Plan Reference Index Case No. PUR-2020-00035 M

Order/Guideline 2020 Plan Section Requirement Case No. PUR-2018-00065 Section 4.6.1 In future IRPs, the Company shall:

Final Order at 11-12 Solar Capacity Factor 7. Model future solar PV tracking resources using two alternative capacity factor values: >>S1 (a) the actual capacity performance of Dominion's Company-owned solar tracking fleet In Virginia p Cose No. PUR-2018-00065 using an average of the most recent three-year period; and (The Commission additionally noted that Order on Reconsideration at 5 for the 2020IRP, the Company should use the three-year average of calendar years 2017-2019. For those solar tracking facilities that have not been in service for three years, the Company should use the historic data that is available.)

Id (b) 25%.

In the Order on Reconsideration, the Commission approved the Compay's request to run one of the capacity factors contained In Directive #7 as a sensitivity; however, If the Company chooses to do so, It shall model the actual capacity performance of Dominion's Company-owned solar tracking fleet as the baseline assumption and use 25% as the sensitivity.

Case No. PUR-2018-00065 Chapters In future IRPs, the Company shall:

Final Order at 12 Distribution 8. Systematically evaluate long-term electric distribution grid planning and proposed electric Va. Plan Addendum 2 distribution grid transformation projects (Code §56-599 B 10). For Identified grid transformation GTPIan Document projects, the Company shall Include:

(a) A detailed description of the existing distribution system and the identified need for each proposed grid transformation project; (b) Detailed cost estimates of each proposed Investment; (c) The benedlts associated with each proposed Investment; and (d) Alternatives considered for each proposed Investment.__________________________________

Case No. PUR-2018-00065 Appendix 51 In future IRPs, the Company shall:

Final Order at 12, n. 49 Solar and Wind Generating Facilities Since 9. Provide a schedule Identifying the Company's contribution towards meeting the 5,000 MW target July 1,2018 Identified In Code §56-585.1:4, Including (a) a list of each project In service or under construction; (b) the nameplate capacity of each project; (c) the actual or projected in-service date; (d) whether the project is Company-build or a third-party PPA; and (e) the cost recovery mechanism (e.g., fuel, base rates, RAC, ring-fence arrangement, etc.)

The Company shall also maintain this Information on an on-going basis and provide It to Staff upon request.________________________________________________________________________________

Case No. PUR-2018-00065 Appendix 3D In future IRPs, the Company shall:

Final Order at 12 List of Planned Transmission Projects During 10. Provide, in addition to a list of planned transmission projects, the projected cost per transmission the Planning Period project and indicate whether or not each project Is subject to PJM's Regional Transmission Expansion Planning process._________________________________________________________________________

Case No. PUR-2018-00065 Section 4.4.6 The Commission previously found the Company's REC price forecast methodology to be unreasonable Final Order at 12, n. 47 REC Price Forecasting Methodology (Dec. 2018 Order at 9-10). The Company proposes to work In consultation with the Staff to develop Appendix 4Q an appropriate REC price methodology, Including appropriate risk scenarios, for upcoming IRP filings Case No. PUR-2018-00065 Overview of PJM REC Price Forecasting (Thomas Rebuttal at 7). We agree and so direct.

Thomas 2nd Rebuttal at 7 Case No. PUE-2016-00049 2020 Plan Dominion shall continue to comply with all requirements directed In prior IRP orders, Including the Final Order at 3 Reference Index requirement to Include an Index that Identifies the specific locatlon(s) within the IRP that complies Case No. PUE-2015-00035 with each such requirement.

Final Order at 18 Case No. PUE-2015-00035 Section 5.4.4 The Commission directs the Company to: continue to Investigate the feasibility and cost of extending Final Order at 10 Extension of Nuclear Licensing the operating licenses for Surry Unit 1, Surry Unit 2, North Anna Unit 1, and North Anna Unit 2 Case No. PUE-2015-00035 Section 5.5.3 In future IRP filings, Dominion shall: include a more detailed analysis of market alternatives, especially Final Order at 16 Third-Party Market Alternatives third-party purchases that may provide long-term price stability, and Includes, but Is not limited to, Case No. PUE-2013-00088 wind and solar resources Final Order at 7 Case No. PUE-2015-00035 Section 4.6.2 In future IRP filings, Dominion shall: examine wind and solar purchases at prices (Including prices Final Order at 16 Solar Company-Build vs. PPAs available through long-term purchase power agreements) and In quantities that are being seen In the Case No. PUE-2013-00088 Section 5.5.3 market at the time the Company prepares Its IRP filings Final Order at 7 Third-Party Market Alternatives Case No. PUE-2015-00035 Section 4.6.2 In future IRP filings, Dominion shall: provide a comparison of the cost of purchasing power from wind Final Order at 16 Solar Company-Build vs. PPAs and solar resources from third-party vendors versus self-build options, Including off-shore and on Case No. PUE-2013-00088 Section 5.5.3 shore wind, with this comparison including Information from a variety of third-party vendors Final Order at 7 Third-Party Market Alternatives Case No. PUE-2015-00035 Section 4.63 In future IRPs, Dominion shall: develop a plan for Identifying, quantifying, and mitigating cost and Final Order at 17 Solar Interconnection and Integration Costs integration Issues associated with greater reliance on solar photovoltaic generation Case No. PUE-2013-00088 Section 5.4 Next, we find that in future IRP filings, the Company shall provide further analysis related to the Final Order at 4 Generation Under Development construction of North Anna 3 and the future of Surry Unit 1, Surry Unit 2, North Anna Unit 1, and Section 5.4.4 North Anna Unit 2, all of which have licenses that are scheduled to expire within the next thirty years.

Extension of Nuclear Licensing Page 8 of 9

2020 Integrated Resource Plan Reference Index Case No. PUR-2020-000S5 Order/Guideline 2020 Plan Section Requirement Case No. PUE-2013-00088 Section 5.4.4 The Company shall also provide status updates on any discussions it engages in with the United States^

Final Order at 5-6 Extension of Nuclear Licensing Nuclear Regulatory Commission on a possible extension for the operating licenses for Surry Unit 1, Surry Unit 2, North Anna Unit 1, and North Anna Unit 2, In Its future IRP and IRP update filings.

Case No. PUE-2013-00088 Section 6.7 Next, the Commission finds that in future IRP filings, Dominion Virginia Power should compare the Final Order at 8 Overall DSM Assessment cost of its demand-side management proposals to the cost of new generating resource alternatives.

Specifically, Staff has suggested that It would be informative to compare the Companys expected demand-side management costs per megawatt hour saved to its expected supply side costs per megawatt hour. We agree and direct the Company to evaluate demand-side management alternatives using this methodology.

Case No. PUE-2013-00088 Section 4.4 Further, we direct Dominion Virginia Power to include a broad band of prices used In future Final Order at 8 Commodity Price Assumptions forecasting assumptions, such as forecasting assumptions related to fuel prices, effluent prices, Appendix 40 market prices and renewable energy credit costs, In order to continue to set reasonable boundaries ICF Commodity Price Forecasts around the modeling assumptions, and to continue to refine the specific assumptions and sensitivity Appendix 4P adjustments of its modeling data in future IRP filings.

ICF Price Forecasts

NOTICE TO THE PUBLIC OF A FILING BY VIRGINIA ELECTRIC AND POWER COMPANY OF ITS INTEGRATED RESOURCE PLAN CASE NO. PUR-2Q2Q-0Q035 On May 1,2020, Virginia Electric and Power Company (the Company),

submitted to the State Corporation Commission (Commission) its Integrated Resource Plan (the Plan) pursuant to §56-597 etseg. of the Code of Virginia (Va. Code). An integrated resource plan, as defined by Va. Code §56-597, is a document developed by an electric utility that provides a forecast of its load obligations and a plan to meet those obligations by supply side and demand side resources over the ensuing 15 years to promote reasonable prices, reliable service, energy independence, and environmental responsibility. Pursuant to Va. Code §56-599 C, the Commission will analyze the Companys Plan and make a determination as to whether the Plan is reasonable and in the public interest.

The Commission entered an Order Establishing Schedule for Proceedings (Procedural Order) that, among other things, scheduled a public hearing at 9:30 a.m. on October 27, 2020, in the Commissions second floor courtroom located in the Tyler Building, 1300 East Main Street, Richmond, Virginia 23219, to receive opening statements, testimony, and evidence offered by the Company, respondents, and the Staff on the Companys Plan.

On [date], the Commission entered an Order for Notice and Comment (Notice Order) that directed the Company to provide notice to the public and offered interested persons an opportunity to comment on the Companys Plan.

An electronic copy of the public version of the Companys Plan may be obtained, at no charge, by requesting it in writing from Jennifer D. Valaika, Esquire, McGuire Woods LLP, Gateway Plaza, 800 East Canal Street, Richmond, Virginia 23219, orjvalaika@mcguirewoods.com If acceptable to the requesting party, the Company may provide the documents by electronic means. Interested persons may also download unofficial copies of the public version of the Plan and other documents from the Commissions website: http:/Avww.scc.virginia.gov/case.

On or before October 20, 2020, interested persons may file written comments concerning the issues in this case by following the instructions found on the Commissions website: http://www.scc.virginia.gov/case. All comments shall refer to Case No. PUR-2020-00035. In light of the ongoing public health emergency related to the spread of COVID-19, the Commission will subsequently schedule, if practicable, oral public comment in this matter; if scheduled, such will be noticed via Commission order and accompanying news release.

Any interested person may participate as a respondent in this proceeding by filing a notice of participation on or before August 4, 2020. Such notice of participation shall include the email addresses of such parties or their counsel. The respondent 1

m a

wi simultaneously shall serve a copy of the notice of participation on counsel to the ^

Company. Pursuant to 5 VAC 5-20-80, Participation as a respondent, of the Commissions Rules of Practice and Procedure (Rules of Practice), any notice of participation shall set forth: (i) a precise statement of the interest of the respondent; (ii) a ^

statement of the specific action sought to the extent known; and (iii) the factual and legal basis for the action. Any organization, corporation, or government body participating as a respondent must be represented by counsel as required by Rule 5 VAC 5-20-30, Counsel, of the Rules of Practice. All filings shall refer to Case No. PUR-2020-00035.

For additional information about participation as a respondent, any person or entity should obtain a copy of the Commissions Procedural Order.

The Commissions Rules of Practice may be viewed at http://www.virginia.gov/case. A printed copy of the Commissions Rules of Practice and an official copy of the Commissions Procedural Order in this proceeding may be obtained from the Clerk of the Commission at the address set forth above.

VIRGINIA ELECTRIC AND POWER COMPANY 2

Dominion Energy Virginia Electric and Power Companys Report of Its Integrated Resource Plan Before the Virginia State Corporation Commission and North Carolina Utilities Commission Case No. PUR-2020-00035 Docket No. E-100, Sub 165 Filed: May 1, 2020

Tabic of Contents Introduction......................................................................................................................................1 <g Executive Summary........................................................................................................................ 2 Chapter 1: Significant Developments and Context for Integrated Planning Process.................... 9 1.1 Dominion Energy Net Zero Target................................................................................. 9 1.2 Virginia Clean Economy Act.......................................................................................... 9 1.3 Regional Greenhouse Gas Initiative................................................................................11.

1.4 North Carolina Clean Energy Plan................................................................................. 13 1.5 Need for a Modern Distribution Grid............................................................................ 13 1.6 Forward Capacity Markets........................................................................................... 14 1.6.1 Minimum Offer Price Rule.......................................................................................14 1.6.2 Fixed Resource Requirement Alternative............................................................... 15 1.7 Environmental Justice....................................................................................................17 1.8 New and Developing Technologies............................................................................... 17 1.9 COVID-19...................................................................................................................... 19 1.10 Other Legislative Developments.................................................................................... 20 1.11 Other Environmental Regulations.................................................................................. 20 1.11.1 Affordable Clean Energy Rule................................................................................ 20 1.11.2 New Source Performance Standards for Greenhouse Gas Emissions from Electric Generating Units................................................................................................................... 21 1.11.3 Ozone National Ambient Air Quality Standards.....................................................21 1.11.4 Cross-State Air Pollution Rule................................................................................ 21 1.11.6 Mercury & Air Toxics Standards............................................................................ 22 1.11.7 Coal Combustion Residuals....................................................................................23 1.11.8 Clean Water Act...................................................................................................... 23 Chapter 2: Results of Integrated Planning Process...................................................................... 25 2.1 Capacity and Energy Positions....................................................................................... 25 2.2 Alternative Plans............................................................................................................ 26 2.3 Transmission System Reliability Analysis..................................................................... 31 2.4 NPV Results................................................................................................................... 31 2.5 Virginia Residential Bill Analysis.................................................................................. 32 Chapter 3: Short-Term Action Plan.............. 34 3.1 Generation...................................................................................................................... 34 3.2 Demand-Side Management............................................................................................ 35 i

W a

VI 3.3 Transmission 35 3.4 Distribution... 36 <0 0

Chapter 4: Generation - Planning Assumptions......................................................................... 37 0

4.1 Load Forecast................................................................................................................. 37 4.1.1 PJM Load Forecast................................................................................................. 39 4.1.2 Company Load Forecast..........................................................................................41 4.1.3 Energy Efficiency Adjustment..................................................................................50 4.1.4 Retail Choice Adjustment........................................................................................ 53 4.1.5 Voltage Optimization Adjustment............................................................................ 55 4.2 Capacity Market Assumptions....................................................................................... 57 4.3 Capacity Value Assumptions.......................... 59 4.4 Commodity Price Assumptions........................................ 60 4.4.1 Mid-Case Federal CO2 with Virginia in RGG1 Commodity Forecast.....................61 4.4.2 No CO2 Tax Commodity Forecast...........................................................................63 4.4.3 Virginia in RGG1 Commodity Forecast.................................................................. 63 4.4.4 High-Case Federal CO2 Commodity Forecast........................................................64 4.4.5 Capacity Price Forecasting Methodology............................................................... 64 4.4.6 REC Price Forecasting Methodology.......................................................................65 4.5 Virginia Renewable Portfolio Standard Assumptions................................................... 66 4.6 Solar-Related Assumptions............................................................................................ 67 4.6.1 Solar Capacity Factor...............................................................................................67 4.6.2 Solar Company-Build vs. PPA.................................................................................67 4.6.3 Solar Interconnection and Integration Costs...........................................................67 4.7 Storage-Related Assumptions........................................................................................ 74 4.8 Gas Transportation Cost Assumptions........................................................................... 75 4.9 Least-Cost Plan Assumptions......................................................................................... 75 4.10 VCEA-Related Assumptions.......................................................................................... 76 Chapter 5: Generation - Supply-Side Resources......................................................................... 77 5.1 Existing Supply-Side Generation................................................................................... 77 5.1.1 System Fleet............................................................................................................ 77 5.1.2 Company-Owned System Generation..................................................................... 79 5.1.3 Non-Utility Generation............................................................................................ 82 5.2 Evaluation of Exi sting Generation.................................................................................. 82 5.2.1 Retirements.............................................................................................................. 83 11

5.2.2 Uprates and Derates.................. 84 5.2.3 Environmental Regulations...................................................................................... 84 5.3 Generation Under Construction..................................................................................... 84 5.4 Generation Under Development..................................................................................... 84 5.4.1 Solar........................................................................................................................ 84 5.4.2 Offshore Wind......................................................................................................... 85 5.4.3 Pumped Storage....................................................................................................... 85 5.4.4 Extension ofNuclear Licensing.................................................. 85 5.4.5 Combustion Turbines............................................................................................... 87 5.5 Future Supply-Side Generation Resources.................................................................... 87 5.5.1 Supply-Side Resource Options................... 88 5.5.2 Levelized Busbar Costs / Levelized Cost ofEnergy................................................ 92 5.5.3 Third-Parly Market Alternatives.............................................................................. 95 5.6 Challenges Related to Significant Volumes of Solar- Generation.................... 96 5.6.1 Challenges Related to Capacity......................... 96 5.6.2 Challenges Related to Energy.............................................................................. 97 5.6.3 Challenges Related to the Solar Production Profile................................................ 99 5.6.4 Challenges Related to Black Start and System Restoration....................................101 5.6.5 Challenges Related to Constructability..................................................................101 Chapter 6: Generation - Demand-Side Management...............................................................103 6.1 DSM Planning Process................................................................................................. 104 6.2 Approved DSM Programs............................................................................................ 106 6.3 Proposed DSM Programs............................................................................................. 106 6.4 Future DSM Initiatives................................................................................................. 107 6.5 Rej ected D SM P rograms................................................................................................108 6.6 GTSA Energy Efficiency Analysis............ 108 6.6.1 Considerations for Certain Customers Groups and Options for Combining Distributed Generation, Energy Storage, and Energy Efficiency......................... ............ 109 6.6.2 Electricity Rate and Consumption Comparison....................................................110 6.6.3 National Comparison ofPrimary Fuel Sources for Generation........................... 112 6.6.4 Other Relevant Issues for Energy Efficiency Analysis............................................112 6.7 Overall DSM Assessment.............................................................................................113 Chapter 7: Transmission.............................................................................................................116 7.1 Transmission Planning.................... 116 7.2 Existing Transmission Facilities...................................................................................117 hi

7.3 Transmission Facilities Under Construction................................................................ 117 7.4 Future Transmission Projects....................................................................................... 117 7.5 Transmission System Reliability Analysis..................................................................117 7.5.1 Inertia and Frequency Control...............................................................................121 7.5.2 Short-circuit System Strength............................................................................... 121 7.5.3 Power Quality............................................................ 122 7.5.4 Reactive Resources and Voltage Control............................................................. 122 7.5.5 System Restoration and Black Start Capabilities...................................................123 7.5.6 Grid Monitoring and Control Capabilities.................................. 123 7.5.7 Energy Storage Requirements................................................................ 124 7.5.8 High-voltage Direct Current........................... ..124 7.5.9 Summary ofPreliminary Results................................................ 124 ChapterS: Distribution.............................................................................................................. 126 8.1 Distribution Planning................................................................................................... 126 8.2 Existing Distribution Facilities..... ....................................... 128 8.3 Grid Transformation Plan............................................................................................. 128 8.4 Strategic Undergrounding Program......................... 129 8.5 Battery Storage Pilot Program...................................................................................... 129 8.6 Electric School Bus Program....................................................................................... 130 8.7 Rural Broadband Pilot Program....................................................................................130 Chapter 9: Other Information..................................................................................................... 132 9.1 Customer Educati on............................................................. 132 9.2 Effect of Infrastructure Programson Overall Resource Plan...................... ................. 134 9.2.1 Grid Transformation Plan......................... 134 9.2.2 Battery Storage Pilot Program............................................................................. 135 9.2.3 Underground Line Programs........................................................... 136 9.3 GTSA Mandates..... ......................................................................................................136 9.3.1 Plan-Related Mandates...........................................................................................137 9.3.2 Rate-Related Mandates......................................................................................... 137 9.3.3 Mandated Reports............................................................................. 137 9.3.4 Pilot Program Mandates........................................................................................ 137 9.3.5 Mandate Related to Electric Distribution Grid Transformation Projects............ 138 9.3.6 Mandate Related to Energy Conservation Measures.............................................138 9.4 Economic Development Rates............................................................... 138 iv

List of Acronyms Acronym Meaning 2018 Plan 2018 Integrated Resource Plan 2019 Update 2019 Update to the 2018 Plan 2020 Plan 2020 Integrated Resource Plan AC Alternating Current ACE Rule Affordable Clean Energy Rule AMI Advanced Metering Infrastructure BDM Bass Diffusion Model BESS Battery Energy Storage System BSER Best System of Emissions Reduction CAA Clean Air Act CAGR Compound Annual Growth Rate CC Combined-Cycle CCR Coal Combustion Residual CCS Carbon Capture and Sequestration CFR Code of Federal Regulations Cf-LP Combined Heat and Power C02 Carbon Dioxide CChe Carbon Dioxide Equivalents COD Commercial Operation Date COL Combined Operating License Company Virginia Electric and Power Company CPCN Certificate of Public Convenience and Necessity CPP Clean Power Plan CSAPR Cross-State Air Pollution Rule CT Combustion Turbine CVOW Coastal Virginia Offshore Wind CWA Clean Water Act DAC Direct Air Capture DC Direct Current DER Distributed Energy Resource(s)

DOM LSE Dominion Energy Load Serving Entity DOM Zone Dominion Energy Zone DSM Demand-Side Management DynADOR Dynamic Assessment and Determination of Operating Reserves EC Enactment Clause ECR Emission Containment Reserve EE Energy Efficiency ECU Electric Generating Unit(s)

ELCC Effective Load Carrying Capability ELG Effluent Limitations Guidelines v

Acronym Meaning E043 Virginia Executive Order 43 EO80 North Carolina Executive Order 80 EPA U.S. Environmental Protection Agency EPRI Electric Power Research Institute EV Electric Vehicle FACTS Flexible Alternative Current Transmission System FERC Federal Energy Regulatory Commission FERC MOPR Order June 29, 2018 FERC Order on MOPR FRR Fixed Resource Requirement FSEIS Final Supplemental Environmental Impact Statement GHG Greenhouse Gas GTSA Grid Transformation and Security Act of 2018 GW Gigawatts GWh Gigawatt Hours HVDC High-voltage Direct Current ICF ICF Resources, LLC IDP Integrated Distribution Planning IEEE Institute of Electrical and Electronics Engineers IFIS IHS Markit IPP Independent Power Producer(s) kV Kilovolts kW Kilowatts kWh Kilowatt Flours LCOE Levelized Cost of Energy LSE Load Serving Entity MATS Mercury and Air Toxics Standards MGD Million Gallons per Day MMBtu Million British Thermal Unit(s)

Moody's Moody's Analytics MOPR Minimum Offer Price Rule MW Megawatts MWh Megawatt Hours NAAQS National Ambient Air Quality Standards NCDEQ North Carolina Department of Environmental Quality NCOS North Carolina General Statute NCUC North Carolina Utilities Commission NERC North American Electric Reliability Corporation Net CONE Net Cost of New Entry NOx Nitrogen Oxide NPV Net Present Value NRC Nuclear- Regulatory Commission NREL The National Renewable Energy Laboratory vi

in Acronym Meaning NSRDB National Solar Radiation Database NUG Non-Utility Generation or Non-Utility Generator O&M Operations and Maintenance ODBC Old Dominion Electric Cooperative PJM PJM Interconnection, L.L.C.

Plan Integrated Resource Plan PLEXOS PLEXOS Model PPA Power Purchase Agreement PPb Parts Per Billion PTC Production Tax Credit RACT Reasonable Available Control Technology RAIs Requests for Additional Information REC Renewable Energy Certificate(s)

REPS N.C. Renewable Energy and Energy Efficiency Portfolio Standard REP Request for Proposal RGGI Regional Greenhouse Gas Initiative RNG Renewable Natural Gas RPM Reliability Pricing Model RPS Renewable Portfolio Standard RTEP Regional Transmission Expansion Plan RTO Regional Transmission Organization SCC Virginia State Corporation Commission SCPC Supercritical Pulverized Coal SER Safety Evaluation Report SG Standby Generation SMR Small Modular Reactor S02 Sulfur Dioxide STATCOM Static Synchronous Compensators Study Period 25-year Period of 2021 to 2045 SUP Strategic Underground Program TRC Total Resource Cost V2G Vehicle-to-grid Va. Code Code of Virginia VCEA Virginia Clean Economy Act VCPIEC Virginia City Hybrid Energy Center VDEQ Virginia Department of Environmental Quality WHP Waste Heat to Power vu

M

Headquartered in Richmond, Virginia, Virginia Electric and Power Company (the Company) '£§ currently serves approximately 2.6 million electric customers located in approximately 30,000 square miles of Virginia and North Carolina. The Company is a subsidiary of Dominion Energy, Inc. (Dominion Energy)one of the nations largest producers and transporters of energy, energizing the homes and businesses of more than seven million customers in 20 states with electricity or natural gas.

The Companys supply-side portfolio consists of 20,063 megawatts (MW) of generation capacity, including approximately 812 MW of non-utihty generation (NUG) resources. The Companys demand-side management (DSM) portfolio consists of energy efficiency and demand response programs in Virginia and North Carolina. The Company owns approximately 6,800 miles of transmission lines at voltages ranging from 69 kilovolts (kV) to 500 kV in Virginia, North Carolina, and West Virginia; and approximately 58,000 miles of distribution lines at voltages ranging from 4 kV to 46 kV in Virginia and North Carolina. The Company is a member of PJM Interconnection, LLC (PJM) Regional Transmission Organization (RTO),

the operator of the wholesale electric grid in the Mid-Atlantic region of the Uni ted States. The 2020 Integrated Resource Plan (the 2020 Plan or the Plan) was prepared for the Dominion Energy Load Serving Entity (DOM LSE) within PJM.

The Company fdes this 2020 Plan with the Virginia State Corporation Commission (SCC) in accordance with §56-597 et seq. of the Code of Virginia (or Va. Code) and the SCCs guidelines issued on December 23, 2008. The Company also files this 2020 Plan with the North Carolina Utilities Commission (NCUC) in accordance with § 62-2 of the North Carolina General Statutes (NCGS) and Rule R8-60 of NCUCs Rules and Regulations. The 2020 Plan also addresses requirements identified by the SCC and the NCUC in prior relevant orders, as well as current and pending provisions of state and federal law.

This 2020 Plan covers the 15-year period beginning in 2021 and continuing through 2035 (the Planning Period), using 2020 as the base year. In certain instances, the Company evaluates the longer 25-year period of 2021 to 2045 (the Study Period). Overall, the 2020 Plan is a long term planning document based on a snapshot i n time of current technologies, market information, and projections, and should be viewed in that context.

1

Executive Summary Throughout its history, the Company has been dedicated to the delivery of safe, reliable, and m w

affordable energy to its customers. This dedication has included a strong movement towards a clean environment. For example, over the last two decades, by changing its generation mix and employing best practices, the Companys power generation fleet has reduced certain air emissions, including nitrogen oxide, sulfur dioxide, and mercury, by as much as 99%. The Company has also reduced its greenhouse gas emissions, lowering its carbon intensity by approximately 47% since 2000. Further, by adopting the latest technology and applying creative design, the Company is using Jess water in its operations through the use of air-cooled condensers.

The Company has now entered a new phase in its overall efforts to preserve the environment.

On February 11, 2020, the Companys parent companyDominion Energyannounced a significant expansion of its greenhouse gas emissions reduction goals, establishing a new company-wide commitment to achieve net zero carbon dioxide (CO2) and methane emissions by 2050. Net zero does not mean eliminating all emissions, but instead means that any remaining emissions are balanced by removing an equivalent amount from the atmosphere. For example, this can occur through carbon capture, reforestation, or negative-emissions technologies such as renewable natural gas. This strengthened commitment to net zero CO2 and methane emissions builds on Dominion Energys strong history of environmental stewardship, while acknowledging the need to further reduce emissions consistent witii the findings of the United Nations Intergovernmental Panel on Climate Change. The commitment is also a recognition of the increased expectations and interest among customers, policy makers, and employees in building a clean energy future.

This net zero CO2 and methane emissions commitment from Dominion Energy parallels the commitments made to clean energy in both Virginia and North Carolina. In Virginia, the Virginia Clean Economy Act (the VCEA) will become law effective July 1, 2020. The VCEA establishes a mandatory renewable portfolio standard (RPS) aimed at 100% clean energy from the Companys generation fleet by 2045. In furtherance of this mandatory EPS, the VCEA requires the development of significant energy efficiency, solar, wind, and energy storage resources; it also mandates the retirement of all generation units that emit CO2 as a byproduct of combustion by 2045, unless the retirement of a particular unit would threaten grid reliability and security. Based on other new legislation, the Company expects that Virginia will soon become a full participant in the Regional Greenhouse Gas Initiative (RGGI)a regional effort to cap and reduce CO2 emissions from the power sector. In North Carolina, the Clean Energy Plan, a compi lation of policy and action recommendations developed through a public stakeholder process, sets a statewide carbon neutrality goal by 2050.

This 2020 Plan focuses on presenting alternative plans that set the Company on a trajectory to achieve these clean energy targets. Indeed, the Company has already begun to transition its generation fleet, as well as its transmission and distribution systems, to achieve a cleaner future.

Examples of this ongoing fransition include:

2

The retirement of over 2,200 MW of coal-fired and inflexible, higher cost oil- and natural gas-fired generation over the past ten years;

The construction of approximately 198 MW of solar generation over the past ten years, with an additional 198 MW of solar generation currently under construction;

The procurement of approximately 874 MW of solar NUGs over the past ten years;

The continued work to extend the licenses of the Companys nuclear units at Surry and North Anna;

The construction of the Coastal Virginia Offshore Wind (CVOW) demonstration project, along with the development of a larger build-out of offshore wind generation off the coast of Virginia;

The continued transformation of the Companys distribution grid to provide an enhanced platform for distributed energy resources (DERs) and targeted DSM programs; more secure and reliable service, leading to the increased availability of DERs; and more ways for customers to save energy and money through DSM programs and other rate offerings; and

The continued work associated with energy storage technology, including the development of a new pumped storage hydroelectric facility in Virginia and the deployment of three battery energy storage system (BESS) pilot projects.

Over the long term, however, achieving the clean energy goals of Virginia, North Carolina, and the Company will require supportive legislative and regulatory policies, technological advancements, grid modernization, and broader investments across the economy. This includes support for the testing and deployment of technologies such as large-scale energy storage, hydrogen, advanced nuclear, and carbon capture and sequestration, all of which have the potential to significantly reduce greenhouse gas emissions.

In this 2020 Plan, the Company presents four alternative plans (the Alternative Plans). Except for Alternative Plan A, all Alternative Plans assume that Virginia is a full RGGI participant.

Plan A - This Alternative Plan presents a least-cost plan that estimates future generation expansion where there are no new constraints, including no new regulations or restrictions on CO2 emissions. Plan A is presented for cost comparison purposes only in compliance with SCC orders. Given the legislation that will take effect in Virginia on July 1, 2020, this Alternative Plan does not represent a realistic state of relevant law and regulation.

Plan B - This Alternative Plan sets the Company on a trajectory toward dramatically reducing greenhouse gas emissions, taking into consideration future challenges and uncertainties. Plan B includes the significant development of solar, wind, and energy storage resources envisioned by the VCEA. Plan B preserves approximately 9,700 MW of natural gas-fired generation to address future system reliability, stability, and energy independence issues. While Plan Band indeed all Alternative Plansincorporate only known, proven technologies, the Company fully expects that new technologies could take the place of todays technologies over the Study Period. Overall, Plan B is the lowest cost of Alternative Plans B, C, and D, decreases the reliance on outside markets to meet customer demand and produces similar regional CO2 emissions as Plans C and D. Over 3

the Study Period (i.e., 2021 to 2045), this Alternative Plan includes the development of approximately 31 gigawatts (GW) of solar capacity, approximately 5 GW of offshore wind capacity, and approximately 5 GW of new energy storage.

Plan C - This Alternative Plan uses similar assumptions as Plan B, but retires all Company-owned carbon-emitting generation in 2045, resulting in close to zero CO2 emissions from the Companys fleet in 2045. To reach zero CO2 emissions from the Companys fleet in 2045, Plan C significantly increases the amount of energy storage resources and the level of imported power. Specifically, in the last ten years of the Study Period, Plan C requires the addition of approximately 1 GW of incremental solar capaci ty and approximately 4.8 GW of incremental energy storage as compared to Plan B. In addition, beginning in Year 16 of Plan C, the Companys transmission import capacity would need to double to approximately 10.4 GW total in order to support the Companys winter import needs, as well as spring and fall export needs. This imported power from PJM would come in part from C02-emitting generation, meaning that while CO2 emissions from the Companys fleet would be near zero, regional CO2 emissions would remain at similar- levels as Plan B.

Plan D - This Alternative Plan uses similar assumptions as Plan C but changes the capacity factor assumption for future solar resources from 25% to 19%. As a result, Plan D significantly increases the amount of solar resources needed to reach zero CO2 emissions in 2045. Specifically, over the Study Period, this Plan includes approximately 9.2 GW of incremental solar capacity and approximately 4.8 GW of incremental energy storage as compared to Plan B, which is approximately 8.1 GW more solar capacity than Plan C. Like Plan C, beginning in Year 16 of Plan D, the Companys transmission import capacity would need to be doubled to approximately 10.4 GW total in order to support the Companys winter import needs, as well as spring and fall export needs.

Accordingly, also like Plan C, regional CO2 emissions would remain at similar levels as Plan B based on the increased dependence on imported power. Notably, the lower 19%

capacity^ factor is based on the historical performance of the Companys solar generation resources as required by an SCC order; in the Companys view, this 19% capacity factor does not represent a reasonable estimate of solar generations expected potential.

4

M The following table presents a high-level summary of the Alternative Plans: H*

Executive Summary Table: 2020 Plan Results Plan A Plan B PlanC Plan D NPV Total (SB) $44.3 $66.2 $78.6 $80.8 Approximate CO2 Emissions 24 M 10 M from Company in 2045 (Tons)

Approximate CO2 Emissions 34 M 4M 4M 5M Regionally in 2045 (Tons) 6,720 15-year 15,920 15-year 15,920 15-year 18,800 15-year Solar (MW) 11,520 25-year 31,400 25-year 32,480 25-year 40,640 25-ycar 15-year 5,112 15-year 5,1 12 15-year 5,112 15-year Offshore Wind (MW) 25-year 5,112 25-year 5,112 25-year 5,1 12 25-year 15-year 2,714 15-year 2,714 15-ycar 2,714 15-ycar Storage (MW) 25-year 5,114 25-year 9,914 25-year 9,914 25-year 1,940 IS-year 970 15-year 970 15-ycar 970 15-year Natural Gas-Fired (MW) 3,53 1 25-year 970 25-year 970 25-year 970 25-year Import / Export 5,200 15-year 5,200 15-year 5,200 15-ycar 5,200 15-year Capability (MW) 5,200 25-year 5,200 25-year 10,400 25-year 10,400 25-year 3,030 15-year 3,183 15-year 3,183 15-year 3,183 15-year Retirements (MW) 4,651 25-year 5,414 25-year 13,978 25-year 13,978 25-year As can be seen in the table above. Alternative Plans B through D are very similar over the first 15 years. This general alignment over the Planning Period sets a common pathway for the Company to pursue now while allowing new technologies to mature. All Alternative Plans include 970 MW of natural gas-fired combustion turbines (CTs) as a placeholder to address probable system reliability issues resulting from the addition of significant renewable energy resources and the retirement of coal-fired facilities. While all Alternative Plans in this 2020 Plan incorporate only known, proven technologies, the Company fully expects that new technologies could take the place of todays technologies over the Study Period. The Company intends to explore all new and promising technologies that support a cleaner future and that will enable the Company to achieve its environmental goals, as well as the goals of Virginia and North Carol ina.

The Company will provide information on these developments in future Plans and update filings.

Based on the current state of technology and the need for technological advances to truly achieve a cleaner future, Alternative Plans B through D as presented in this 2020 Plan all pose challenges over the long term.

Alternative Plans B through D factor in the implementation of energy efficiency programs and measures to achieve both 5% total annual energy savings by 2025, as targeted by the VCEA, and

$870 million in proposed spending by 2028, as required by the Grid Transformation and Security Act of 2018 (the GTSA). The Company has modeled these objectives by supplementing the Companys approved and pending DSM programs with a generic level of energy efficiency at a fixed price. This approach is a theoretical assumption used for planning purposes only. In reality, the level of energy efficiency savings included in this 2020 Plan may not materialize in 5

u

<0 the same manner as modeled due to many outside factors. These factors include the ability of {=a future vendors to deliver program savings at the assumed fixed price, the desire of customers to @

participate in the program at that price, and the effectiveness of the program to be administered ^

at that price. The modeled costs and level of savings attributable to generic energy efficiency are ^

thus placeholders as future phases of actual energy efficiency programs are developed and implemented.

From a permittmg perspective, all Alternative Plans include large quantities of solar capacity located in Virginia. In fact, to meet customers demand, Alternative Plans B through D require between 31,400 MW and 40,640 MW of new solar capacity by 2045. Given current technology, 31,400 MW of solar generating capacity in the Commonwealth would require the land use of 490 square miles. This land mass is nearly 25% larger than Fairfax County, Virginia, or the equivalent of nearly 237,000 football fields. Utilization of such a large land mass area for energy generation will likely encounter local and environmental permi tting issues.

The large quantities of solar capacity in Alternative Plans B through D also pose challenges from a technical perspective. A key component included in the traditional design of the North American electric power grid is the inertia from many existing traditional turbines to create a reservoir of kinetic energy. This kinetic energy automatically provides grid support by balancing the myriad of instantaneous discrepancies between generation and load at any moment in time.

Inverter-based generation such as intermittent solar and wind resources do not provide such a reservoir of kinetic energy. Therefore, the retirement of traditional generation units coupled with the addition of lai-ge quantities of intermittent renewable generation will adversely affect both electric system reliability and the Companys ability to restore the system in the event of a large-scale blackout. Transmission planning work has begun, but more planning analysis is necessary to model the grid under different conditions to assure system reliability, stability, and security with the retirement of traditional generation. Although Plans B through D show significantly reduced carbon emissions by 2045 associated with these projected retirements, additional transmission and distribution projects potentially needed to address system reliability and security have not been fully assessed and evaluated in this 2020 Plan. The Company will provide the results of these additional analyses in future Plans and update filings.

In the long term, based on current technology, other challenges will arise from the significant development of intermittent solar resources in all Alternative Plans. For example, based on the nature of solar resources, the Company will have excess capacity in the summer, but not enough capacity in the winter. Based on current technology, the Company would need to meet this winter deficit by either building additional energy storage resources or by buying capacity from the market. In addition, the Company would likely need to import a significant amount of energy during the winter, but would need to export or store significant amounts of energy during the spring and fall.

In Alternative Plan B, the Company preserved approximately 9,700 MW of efficient natural gas-fired generation units to address these future system reliability, stability, and energy independence issues. In future Plans, these units could be replaced by new types of generation such as small modular reactors. These units could also be transformed into low-carbon or carbon-free generation by installing new technologies such as carbon capture sequestration or 6

M Wi refueling these units with hydrogen or renewable natural gas. For example, the Company could use excess energy from renewable facilities during periods of lower demand (i.e., spring and fall) to create and store hydrogen fuel that could subsequently be used in these gas-fired generators.

When hydrogen fuel is used in gas-fired generators, the byproduct is water rather than CO2. The a Company will continue to study these types of innovative alternatives and will, when and if feasible, reflect those alternatives in future Plans.

Unlike Alternative Plan B, Alternative Plans C and D model the retirement of all Company-owned carbon-emitting generation by 2045. If the Company retires all carbon-emitting generation units by 2045 as modeled in Alternative Plans C and D, given current energy storage and solar technologyand even with approximately 10,000 MW of new incremental storage customers winter peak load demand could not be met unless grid transmission import capacity is approximately doubled. Doubling transmission import capacity is a significant task that requires additional study, and would require significant capital expenditures and permitting challenges.

Even if this import capacity could be doubled from a technical perspective, Virginia would become dependent on other jurisdictions to meet its winter peak needs, which, in the Companys view, presents an unacceptable risk. This risk increases as neighboring states elect to pursue the development of significant solar resources similar to Virginia and face similar challenges meeting winter peak load demand. Doubling transmission import capacity as modeled in Plans C and D would also result in similar regional CO2 emissions as Alternative Plan B because the imported power from PJM would come in part from CCh-emitting generation.

Separate from the proposed build plans and related system upgrades, Alternative Plans B through D include foundational investments to transform the Companys elective distribution grid to facilitate the integration of DERs, to enhance reliability and security, and to improve the customer experience (the Grid Transformation Plan). The Grid Transformation Plan will prepare the Companys distribution grid to support the cleaner future envisioned by Virginia, North Carolina, and the Company. For example, with advanced metering infrastructure (AMI) and a new customer information platform, the Company can offer advanced rate options to all customers across its system targeted at energy efficiency and demand reduction. A transformed grid will also support electric vehicle (EV) adoption while minimizing the effect of EV charging on the distribution grid, thus maximizing the benefits of electrification. Foundational components of the Grid Transformation Plan, such as AMI, deployment of intelligent grid devices, advanced control systems, and a robust and secure telecommunications network, are necessary to integrated distribution planning that can produce inputs into future Plans.

The Company fully supports the transition towards clean energy without compromising reliability, and stands ready to meet the challenges discussed with continued study, technological advancement, and innovation. Importantly, as noted above, the first 15 years of Alternative Plans B through D present very similar paths forward; the dramatic differences between the Alternative Plans occur during the last ten years of the 25-year Study Period. This alignment between Alternative Plans B through D over the 15-year Planning Period creates a common pathway for the Company to pursue now while allowing new technologies to emerge and mature, and allowing analysis and study to continue. Accordingly, for this 2020 Plan, the Company recommends a path forward that substantially aligns with the first 15 years of Alternative Plans 7

<9 B through D. Over the longer-term, however, based on current technology and this snapshot in Wi time, the Company recommends Alternative Plan B.

Going forward, long-term integrated resource plans will evolve and will continue to support the cleaner future envisioned by public policy, by lawmakers, and by the Company. As noted, this future, while achievable, will require supportive legislative and regulatory policies, technological advancements, and broader investments across the economy. It will also require further study and analyses of necessary investments in the transmission and distribution systems to ensure the reliable electric service that customers expect and deserve. Overall, the Companys deliberate transitional approach to a cleaner future has, and will continue, to provide customers a path to clean energy that meets public policy objectives while maintaining the standard of reliability necessary to power Virginias and North Carolinas modern economies.

8

Chapter 1: Significant Developments and Context for Integrated Planning Process The Companys comprehensive planning process considers significant emerging policy, market, regulatory, and technical developments that could affect its operations and, in turn, its customers.

1.1. Dominion Energy Net Zero Target In February 2020, Dominion Energy announced its commitment to net zero CCh and methane emissions across its nationwide electric generation and natural gas infrastructure operations by 2050. The goal covers CO2 and methane emissions, the dominant greenhouse gases (GHGs),

from electricity generation and gas infrastructure operations. The strengthened commitment builds on Dominion Energys strong history of environmental stewardship, while acknowledging the need to further reduce emissions.

Net zero is a framework under which companies effectively achieve zero emissions through a combination of actions to reduce emissions at their own facilities and through initiatives such as reforestation and various other verifiable measures that reduce emissions. By 2050, Dominion Energy is committed to ach ieve net zero CO2 and methane emissions across al l of its electric and natural gas operations in all 20 states where it does business, which is the timeframe referenced in climate work published by the United Nations Intergovernmental Panel on Climate Change.

Dommion Energy has been actively lowering its CO2 and methane emissions by employing existing technology and resources, such as extending the licenses of its zero-carbon nuclear fleet; rapidly expanding wind and solar resources; continuing to rely on low-carbon natural gas; promoting the use of electric vehicles and energy efficiency; and investing in renewable natural gas. Dominion Energy continuously monitors internal operations and external factors (e.g.,

technology, public policy, stakeholder feedback) to assess for appropriateness in all of its sustainability commitments, including its climate goals.

Achieving net zero CO2 and methane emissions will require technological advancements in the utility sector and broader investments in technology across the entire economy in the long term.

In the near term, Dominion Energy will continue to explore new technologies to accelerate future progress. This includes an industry-leading methane emissions reduction program that is one of the most aggressive and sweeping in the nation. Dominion Energy has reduced methane emissions from its gas infrastmeture by approximately 25% since 2010 and has committed to achieving a 65% reduction by 2030 and an 80% reduction by 2040. In addition. Dominion Energy has partnered with the nations largest hog and dairy producers to turn farm waste into clean renewable natural gas. By 2029, these projects will reduce methane emissions from the nations farms by the same amount as taking 650,000 cars off the road or planting 50 million new trees each year-. Overall, Dominion Energy is committed to pursuing all reasonable paths to assure its goal of net zero CO2 and methane emissions is achieved while maintaining the reliability that customers demand.

1.2 Virginia Clean Economy Act The VCEASenate Bill No. 851 and House Bill No. 1526 from the 2020 Regular Session of the Virginia General Assemblywas signed into law on April 11, 2020, and becomes effective July

M

© 1, 2020. The VCEA includes provisions that institute a mandatory renewable portfolio standard, enhance renewable generation and energy storage development, require the retirement of certain generation units, establish energy efficiency targets, and expand net metering.

The VCEA establishes a mandatory RPS that:

o Includes RPS annual requirements based on a percentage of non-nuclear electric energy sold by the Company, reaching 100% by 2045; o Sets standards for meeting the RPS requirements, including 1% from distributed generation and 75% from resources located in the Commonwealth; o Requires the development of renewable generation and energy storage resources, as discussed further below; o Requires the retirement of generation units that emit CO2 as a byproduct of combustion, as discussed fiuther below; o Recognizes the benefits and necessity of nuclear license extensions; and o Establishes penalties if the Company does not meet the RPS requirements in any compliance year.

The VCEA requires the Company to petition the SCC for approval to construct or purchase up to 5,200 MW of offshore wind generation and declares such offshore wind generation to be in the public interest if those facilities achieve commercial operation by 2034.

o The costs associated with between 2,500 MW and 3,000 MW of utility-owned offshore wind are presumed to be reasonably and prudently incurred if the facilities achieve commercial operation by 2028, the Company complies with mandated competitive procurement requirements, and the levelized cost of energy (LCOE) does not exceed 1.4 times the LCOE of a CT as estimated by the U.S.

Energy Information Administration in 2019.

The VCEA requires the Company to petition the SCC for approval to construct or purchase 16,100 MW of solar or onshore wind generation located in the Commonwealth.

o The Company must petition for approval to construct or purchase the 16,100 MW of solar or onshore wind generation on the following schedule:

3,000 MW by 2024; 6,000 MW by 2027;

- 10,000 MW by 2030; and

- 16,100 MW by 2035.

o Thirty-five percent of the solar and onshore wind generating capacity must be procured from third-party-owned facilities through power purchase agreements (PPAs).

o The 16,100 MW development must include 1,100 MW of small-scale solar (i.e.,

projects less than 3 MW), and 200 MW of solar placed on previously developed project sites.

The VCEA requires the Company to petition the SCC for approval to construct or purchase 2,700 MW of energy storage resources located in the Commonwealth and 10

declares such resources to be in the public interest provided those facilities achieve commercial operation by 2035.

o At least 35% of such energy storage capacity must be procured from third-party-owned resources through PPAs.

o Ideally, at least 10% of energy storage resources should be located behind the meter.

o The Company may procure a single energy storage project up to 800 MW, allowing for construction of a pumped hydroelectric storage facility.

The VCEA mandates the retirement of generation units that emi t CO2 as a byproduct of combustion on the following schedule, unless the Company petitions and the SCC finds that a given retirement would threaten the reliability and security of electric service:

o Chesterfield Units 5 and 6 (coal) and Yorktown Unit 3 (heavy oil) by 2024; o Altavista, Hopewell, and Southampton (biomass) by 2028; and o All remaining generation units that emit CO2 as a byproduct of combustion by 2045.

The VCEA encourages energy efficiency programs and measures that target a 5%

reduction in energy sales (as measured against 2019 jurisdictional electricity sales) by 2025.

o The SCC would evaluate the programs in 2025 and establish the going-forward savings targets in three year increments, o If targets are not achieved, costs of energy efficiency programs would be recovered without a margin, and the SCC may not certificate new generation units that emit CO2 as a byproduct of combustion unless a threat to system reliability or security exists.

The VCEA expands the net metering cap from 1 % to 6% of the previous years adjusted pealc load forecast, with 1% reserved for low-income customers.

o At the earlier of 2025 or after 3% of the previous years peak demand is reached, the SCC will initiate a proceeding to determine a new net metering rate.

The VCEA formalizes the administrative policy goals set by Virginia Governor Northam in September 2019 through Executive Order 43: Expanding Access to Clean Energy and Growing the Clean Energy Jobs of the Future (E043). E043 established statewide goals and targets for reducing carbon emissions. Specifically, E043 included a goal that by 2030, 30% of the Commonwealths electric system would be powered by renewable energy sources. By 2050, the goal was for 100% of Virginias electricity to be produced from carbon-free sources such as wind, solar, and nuclear. In establishing a mandatory RPS, the VCEA sets forth a framework to meet the goals of E043.

1.3 Regional Greenhouse Gas Initiative RGGI is a collaborative effort to cap and reduce CO2 emissions from the power sectors of participating states, which currently include Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Rhode Island, and Vermont.

m Vi The concept of Virginia joining RGGI is not new. Starting with former Governor McAuliffes <

Executive Directive 11, Virginia began a process that has thoroughly investigated RGGI and the © effect of Virginias participation. On May 27, 2019, the Virginia Department of Environmental Quality (VDEQ) published a final rule that established a state cap-and-trade program for electric generation units (EGUs) in Virginia (the VDEQ Carbon Rule). The VDEQ Carbon Rule became effective on June 26, 2019.

In 2019, the state budget bill (signed by Virginia Governor Northam) prohibited VDEQ from continued work on the VDEQ Carbon Rule. The VDEQ Carbon Rule thus included a section that allowed for delayed implementation. Specifically, implementation of most elements of the program, including requirements for holding and surrendering CO2 allowances, was delayed until further authorization for appropriating funding to implement the program. Nevertheless, the VDEQ Carbon Rule included specific near-term requirements for affected entities, including:

A requirement to submit to the VDEQ by August 25, 2019, the annual net electric output in megawatt-hours (MWh) for calendar years 2016, 2017, and 2018 for each EGU subject to the rule, which the VDEQ would use to determine the CO2 allowance allocations for the initial control period; and

A requirement to submit to the VDEQ by January 1, 2020, a complete CO2 budget permit application for affected sources with an applicable EGU subject to the program.

The Company complied with these requirements by the required deadlines. While the final VDEQ Carbon Rule removed specific references to RGGI, the rule remained structured in a way that would allow for the Virginia program to link with a regional program such as RGGI.

Other key elements of the VDEQ Carbon Rule as finalized are:

A starting (baseline) statewide CO2 emissions cap of 28 million tons in 2020, reduced by about 3% per year through 2030, resulting in a 2030 cap of 19.6 million tons (however, the rule allowed for adjustment of the starting cap for delayed implementation);

No references to continued cap reductions after 2030 that the VDEQ had included in prior versions of the rule;

Reinstated language to clarify that affected units under the rule would only have to hold allowances for emissions associated with fossil fuel combustion, assuring that the Companys Virginia City Hybrid Energy Center (VCHEC) would not have to hold allowances for emissions related to biomass co-firing; and

No opportunity to generate offsets from projects in Virginia, though the rule includes a provision that would recognize eligible emissions offsets from other participating states in a regional trading program. The VDEQ has indicated it may re-evaluate offset provisions during the next program review.

12

y m

yi In 2020, legislation passed the Virginia General Assembly related to RGGI. In addition to the legislative provisions of the VCEA discussed in Section 1.2, the VCEA also directs Virginias participation in a carbon trading program through 2050. Separate legislation provides for &

Virginias participation in RGGI. Specifically, the Clean Energy and Community Flood Preparedness ActSenate Bill No. 1027 and House Bill No. 981 from the 2020 Regular Session of the Virginia General Assemblywill become law effective July 1, 2020. This Act authorizes Virginia to join RGGI directly and authorizes tire VDEQ to implement the VDEQ Carbon Rule.

Given the passage of this Act combined with Virginias previous efforts associated with RGGI participation, the Company believes it is highly probable that Virginia will become a full RGGI participant.

1.4 North Carolina Clean Energy Plan In October 2018, North Carolina Governor Cooper issued Executive Order 80: North Carolinas Commitment to Address Climate Change and Transition to a Clean Energy Economy (EO80).

Among other goals, EO80 set a statewide GHG reduction goal of 40% by 2025 (using a 2005 baseline), an electric power sector goal of 70% GHG reduction by 2030 (using a 2005 baseline),

and a carbon neutrality goal by 2050. EO80 also required the North Carolina Department of Environmental Quality (CCNCDEQ) to develop a North Carolina Clean Energy Plan to establish pathways for achieving the EO80 goals. After the public comment period, NCDEQ issued the final North Carolina Clean Energy Plan in October 2019. NCDEQ has also established stakeholder groups to establish recommendations for policy designs to align with EO80 goals.

1.5 Need for a Modern Distribution Grid Electricity has become a basic need, vital to the economy, to public safety, and to customers way of life. Critical services and infrastructure increasingly rely on electricity, including homeland security, large medical facilities, public safety agencies, state and local governments, telecommunications, transportation, and water treatment and pumping facilities. As society has grown more dependent on electricity, customers expect both highly reliable service and easy access to their energy usage information so that they can make informed decisions about their consumption. Another fundamental change in the energy industry is the emerging shift within the transportation industry as it continues toward electrification of personal vehicles, fleets, and mass transit. Another vital resource powered by electricity is the internet, which drives commerce and everyday life. Even a brief interruption or power quality anomaly at, for example, a data center can be catastrophic for both the data center itself and the businesses that rely on that data center. While service interruptions have always been an inconvenience in modern society, the safe, reliable, and consistent delivery of power has never been more important than it is today.

In addition to the increasing importance of reliable electric service, the rise of DERs requires a fundamental change to the electric grid. With DERs, electricity is now flowing onto the distribution system from multiple points. The distribution system that was designed for the one way flow of electricity must now accommodate the two-way flow of electricity. In addi tion, the intermittent nature of some of these DERs resulting from weather variability creates power fluctuations not typical of traditional generation resources. Propagated in an arbitrary manner, 13

DERs are independent nodes that can disrupt traditional grid power quality and reliability. But when paired with investments to increase visibility on and control of the distribution system, DERs can transform into a system resource that can be equitably managed to maximize the value of other available resources, and potentially offset the need for future traditional generating assets or grid upgrades, all while maintaining reliable service to customers.

Because DERs rely on the distribution system to deliver the electricity they produce, a resilient distribution system is vital to maximizing the value of DERs. Day to day outages, as well as major weather events, not only cause prolonged outages for customers, but also prevent DERs from delivering electricity. The distribution system must be reliable and resilient so that it can operate for DERs like the transmission system operates for large, centralized generators.

Foundational investments to transform the distribution grid will allow the Company to use the distribution system differently than it does today, all for the benefit of customers.

Transformational investments in infrastructure resilience, AMI, a customer information platform, intelligent grid devices, automated control systems, and advanced analytics will enable the Company to improve operations (e.g., more efficient restoration, reducing truck rolls, more predictive and efficient maintenance, and increased visibility), better forecast load shape, and better predict future behaviors (e.g., identifying and fixing grid problems before an outage occurs), resulting in a better, more informed customer experience that meets customers changings needs and expectations.

.1.6 Forward Capacity Markets The Company is closely following the developments in the PJM forward capacity market, including the Federal Energy Regulatory Commission (FERC) Minimum Offer Price Rule (MOPR) proceedings, and is considering its options, including election of the fixed resource requirement (F.RR) alternative. As discussed further in Section 4.2, however, the modeling for this 2020 Plan is indifferent to whether the Company participates in the PJM forward capacity market or elects the FRR alternative.

1.6.1 Minimum Offer Price Rule PJM has had the MOPR concept in place since the late 2000s. MOPR is designed to prevent price suppressive behavior of resources that participate in PJMs Reliability Pricing Model (RPM) capacity market. This rule requires new resources to bid into the capacity market at or above the resource types net cost of new entry (Net CONE). CONE reflects a resources capital investments and fixed operations and maintenance (O&M) expenses. Net CONE refers to CONE value net of the expected energy and ancillary market revenues. Net CONE, therefore, reflects the capacity revenue the resource would need to remain profitable.

Some generation entities filed a complaint at FERC in 2017 arguing the lack of effectiveness of capacity markets in PJM due to state subsidies. Specifically, the generation entities argued that state subsidies could have the effect of lowering capacity market clearing prices because the units receiving subsidies were receiving additional revenue that lowered their need from the market.

On June 29, 2018, FERC issued an order finding that PJMs Open Access Transmission Tariff was unjust and unreasonable because the MOPR failfed] to address the price-distorting impact of resources receiving out-of-market support (the FERC MOPR Order). On December 19, 2019, FERC directed PJM to expand MOPR to address state-subsidized resources, with very limited exemptions. Although one of the exemptions included existing self-supply resources, the FERC MOPR Order would subject new resources from self-supply entities (such as the Company) to the expanded MOPR. Because there is no guarantee that the capacity market would clear above a resources Net CONE value (which it never has), tire capacity market revenues for most new resources, including those from self-supply entities, would be uncertain.

On March 19, 2020, PJM submitted its compliance filing on the FERC MOPR Order.

Specifically, PJMs compliance filing sets the Net CONE and net avoidable cost rate values for necessary resource classes; offers flexibility for unit-specific offer reviews; addresses circumstances where resources elect the competitive exemption and receive a subsidy later; and establishes auction timing for the 2022/2023 delivery year and beyond.

1.6.2 Fixed Resource Requirement Alternative The Company joined PJM in 2005. In 2007, in order to assure reliability, PJM instituted the RPM, which created a forward generation capacity market that placed a value on reliability.

PJMs existing rules allow vertically-integrated utilities to opt out of the capacity market by electing the FRR alternative. American Electric Power Company, the parent of Appalachian Power Company, has been the only significant utility in PJM to use this option since 2007.

The Company has participated in the RPM forward capacity market since 2007. One advantage of the RPM forward capacity market is that it draws upon resources from across PJM to ensure that sufficient supply- and demand-side resources are secured three years before they may be called upon to serve customer load. The market will pay those resources for their availability when the future delivery year arrives. This forward market provides a financial incentive and a degree of certainty designed to incentivize investment in new and existing resources beyond what is available through PJMs energy and ancillary services markets. The three-year forward auctions in the RPM have resulted in auction clearing reserve margins in the approximately 19%

to 24% rangein excess of PJMs installed reserve marginwhich means that the DOM LSE must purchase about 20% more unforced capacity than its forward load forecast. RPM participation considers a variable resource requirement defined by a demand curve in relation to supply offers; where supply offers cross the demand curve creates the capacity clearing price and the reserve margin for load. Based on the recent FERC MOPR Order, virtually all new generation resources will need to offer at Net CONE or an otherwise calculated market seller offer capwhich could be above the RPM market clearing price^resulting in $0 revenue for these un-cleared resources.

As an alternative to the RPM forward capacity market, PJM permits the FRR construct. The Company is eligible to elect the FRR alternative because it is an investor-owned utility. One of the key requirements for FRR is to demonstrate that sufficient generation resources are available to meet the reliability requirement for the FRR service area. The reliability requirement for the FRR service area is the forward load forecast plus the target reserve margin. This is one of the 15

£i)(iT £ 2(i)d!)2 primary differences between RPM and FRR, as the PJM coincident peak target reserve margin for FRR is forecasted to be approximately 15%over 5% less than where the RPM market has been clearing recently. From a long-term planning perspective, this reserve margin requirement di fference could be significant. If the Companys forecasted load was 20,000 MW, for each percent difference between cleared reserve margin and target reserve margin, electing FRR would result in about a 200 MW reduction in purchase requirement. That said, considering the FERC MOPR Order and related filings, both the clearing price and the clearing reserve margin of the upcoming RPM forward capacity market remain highly uncertain.

An FRR election is for a minimum of five consecutive delivery years. A load serving enti ty (LSE) must demonstrate its ability to meet the reserve requirement on an annual basis by committing sufficient resources to meet the reliabi lity requirement as part its FRR plan. If an FRR plans capacity commitment is insufficient for a delivery year, the LSE would be assessed an FRJR commitment insufficiency charge for the shortage. This penalty is two times Net CONE times the MW deficiency. Capacity resources committed to an FRR plan continue to be subject to the same capacity performance requirements that apply to resources committed through the RPM forward capacity market if they are called upon in an emergency. To the extent an LSE has capaci ty in excess of its load requiremen t, those excess capacity resources may not generate the same revenue as if offered into the RPM market. The first 450 MW of excess capacity is held in reserve until the third incremental auction, with the next additional block of excess capacity up to 1,300 MW being able to offer into the RPM market auctions.

Because of its five-year minimum commitment requirement, risks to FRR election should be carefully weighed against the benefits. Risks include future environmental changes, regulatory changes, zonal constraints, and capacity and energy market changes. The potential benefits of FRR election include lower required reserve margin and the absence of MOPR risk to new generation used to meet the load obligation. All new generation would be able to be counted against the load obligation with the FRR alternative, whereas with RPM there is the likelihood that new generation would receive no capacity revenue to offset the load cost. If the Company opts out of the RPM forward capacity market through the election of the FRR alternative, it would continue to participate in PJMs energy and ancillary services markets in the same manner it does today.

The Company is continuing to evaluate the FERC MOPR Order and the FRR alternative; it has made no decision at this time. If the Company were to elect FRR, it would have to do so in advance of the next RPM base auction. Typically, this election would need to happen about six months prior to that auction; however due to the pending MOPR-related filings with FERC, the schedules may be compressed. The schedule depends on if, and when, FERC accepts PJMs recent compliance filing. PJM currently estimates the next RPM auction to occur in late 2020 or early 2021, depending on FERCs response to the PJM compliance filing.

16

1.7 Environmental Justice

© Environmental justice is defined as the fair treatment and meaningful involvement of every personregardless of race, color, national origin, income, faith, or disabilityregarding the development, implementation, or enforcement of any environmental law, regulation, or policy.

The Company is dedicated to meeting environmental justice expectations of fair treatment and meaningful involvement by being inclusive, understanding, and dedicated to finding solutions, and by effectively communicating with its customers and neighbors. The Company adopted an environmental justice policy in 2018 through which it committed to hearing, fully considering, and responding to the concerns of all stakeholders. This commitment includes ensuring that a voice in decisions about siting and operating energy infrastructure is given to all people and communities. Communities should have ready access to accurate information and a meaningful voice in the project development process. The Company has pledged to be a positive catalyst in i ts communities.

Environmental justice is also a priority for Virginia and North Carolina. In its 2020 Regular Session, the Virginia General Assembly passed multiple bills aimed at promoting environmental justice. This legislation, among other things, establishes the Virginia Council on Environmental Justice to advise the Governor on the advancement of environmental justice, and adds as a purpose of the VDEQ to further environmental justice. In addition, the Virginia Environmental Justice ActSenate Bill No. 406 and House Bill No. 704 from the 2020 Regular Session of the Virginia General Assemblyestablishes the policy of the Commonwealth to promote environmental justice and ensure that it is carried out throughout the Commonwealth.

Similarly, in North Carolina tire Secretary of NCDEQ established an Environmental Justice and Equity Advisory Board to assist NCDEQ in achieving fair and equal treatment of all communities across the state. The Company is dedicated to meeting these environmental justice expectations.

1.8 New and Developing Technologies Dominion Energy has assembled a new organization dedicated to pursuing innovative and sustainable technologies that will help guide the Company toward the clean future envisioned by Virginia and North Carolina. Some of the more promising new technologies being investigated are as follows:

Natural Gas Combined-Cycle Technology with Carbon Capture and Sequestration.

Natural gas combined-cycle plants fitted with carbon capture and sequestration (CCS) are being consistently modeled as a necessary component of a low-carbon electric generation portfolio. Models of low-carbon scenarios by the Intergovernmental Panel on Climate Change, the International Energy Agency, Bloomberg New Energy Finance, and others all show significant contributions from CCS in the electric generation sector.

Hydrogen. Hydrogen is both a fuel and a carrier that can be used to store and transport energy. Opportunities exist in the production, transportation, and usage of hydrogen to support a clean energy future when produced from low- or no-carbon sources. One example is the use of hydrogen to co-fire natural gas generation. Production and 17

storage of hydrogen fuel can be one solution to the excess renewable energy that may result as increasing amounts of renewable generation resources are added to the grid.

Electric Vehicles as a Resource. Electric vehicles are becoming more prolific in most forms of transportation. With EVs, new technologies and software are being developed to maximize the benefits of electrification, such as load shifting and other applications that complement renewable generation. For example, vehicle-to-grid (V2G) technologies are being developed through which electricity stored in EVs batteries can be fed back onto the grid to lower peak demand or to provide grid support. See Section 8.6 for a discussion of the Companys Electric School Bus Program through which it seeks to explore V2G technology. A precursor to take advantage of this resource is a modernized grid that has full situational awareness.

Renewable Natural Gas. Renewable natural gas (RNG) is derived from biomethane or other renewable resources and is pipeline-quality gas that is fully interchangeable with conventional natural gas. RNG can thus be safely employed in any end use typically fueled by natural gas, including electricity production, heating and cooling, industrial applications, and transportation. Adding RNG as a source of natural gas generation reduces overall emissions. These sources may be expanded based on new technologies to capture RNG from untapped sources and in remote areas.

Continuous Improvement in Solar Output. Solar technology improvements such as advanced trackers, bifacial modules, and other technologies continue to improve capacity, output, intermittency profiles, and operational efficiency of solar generation.

As these technologies mature, these improvementsespecially higher capacity factor improvementscould provide more carbon-free generation with potentially less land use.

Medium and Long-Term Energy Storage. The need for energy storage will grow with the proliferation of intermittent generation. Storage technologies that are on the horizon include new and improved batteries, hydrogen, thermal storage, and mechanical storage.

See Section 5.5.1 for additional discussion of energy storage technologies.

Carbon Offsets. There is a substantial and growing market in carbon offsets in the United States. Carbon offsets can be generated by any activity that compensates for the emission of CO2 or other GHGs (measured in carbon dioxide equivalents (CChe)) by providing for an emission reduction elsewhere. Because greenhouse gases are widespread in Earths atmosphere, there is a climate benefit from emission reductions regardless of where the reductions occur. If carbon reductions are equivalent to the total carbon footprint of an activity, then the activity is said to be carbon neutral. Carbon offsets can be bought, sold, or traded as part of a carbon market. Carbon o ffsets, veri fied by third parties, are used in voluntary and compliance markets across the country.

Direct Air Capture Technology. This aspirational technology is an industrial process for large-scale capture of atmospheric CO2. Direct air capture (DAC) technology pulls in atmospheric air then, through a series of chemical reactions, extracts the CO2 from it while returning the rest of the air to the environment. This is what plants and trees do 18

every day as they photosynthesize, except DAC technology does it much faster, with a smaller land footprint, and delivers the CO2 in a pure, compressed form that can then be stored underground or reused. The potential of the DAC technology is tied to systems where excess or curtailed renewable energy is available at a very low cost to power the industrial process that removes CO2 from the air. Utilizing the captured CO2 to develop other products provides additional support to this process. Captured CO2 can be produced in a solid form for safe storage creating a negative emissions industrial scale process, or can be paired with end-use applications such as oil field CO2 recovery or development of synthetic fuels to provide carbon neutral transportation fuels.

The HAZER Process. The HAZER Process converts natural gas into hydrogen and high quality graphite using iron ore as a process catalyst. The aim of the HAZER Process is to achieve savings for the hydrogen producer, as well as providing clean hydrogen with significantly lower CO2 emissions. This clean hydrogen can then be used in a range of developing clean energy applications, including power generation.

The graphite can be used in the production of lithium ion batteries.

Advanced Analytics. The economy is experiencing both a rapid increase in computing power and an explosive growth in data. Both trends will allow energy companies to manage the electric grid and aggregate resources in ways that they have not been able to do in the past, providing additional opportunities to reduce CO2 emissions. A precursor to tire use of this data is a modernized grid that gathers data through AMI and intelligent grid devices, and incorporates a sophisticated distributed energy resource management system.

1.9 COVID-19 At the time of filing this 2020 Plan, the world continues to confront the ongoing publ ic health emergency related to the spread of coronavirus, also known as COVID-19. The Companys first priority is the health, safety, and well-being of its employees and communities. For its employees, the Company implemented early directives limiting travel, instituting worlc-from-home protocols, and expanding health and paid-time-off benefits. For its customers, the Company has suspended service disconnections for all customers, waived late payment fees for all customers, and worked to reconnect certain residential customers.

Because of the preparation schedule associated with this 2020 Plan, the Plan does not reflect any potential effects related to the COVID-19 public health emergency. PJM has published initial reports of lower demand for electricity. The Company believes it is too early to predict the long term effects of the COVID-19 public health emergency, including the effect on customer load.

The Company will continue to monitor the effects of this ongoing public health emergency and will incorporate any long-term effects as needed in future Plans and update filings.

<3 1.10 Other Legislative Developments

© In addition to the VCEA and the legislation enabling Virginia to join RGGI discussed in Sections © 1.2 and 1.3, respectively, legislation was signed into law on April 11, 2020, that incorporated the ^

relevant policy objectives into die Virginia Energy PlanSenate Bill No. 94 and House Bill No.

714 from the 2020 Regular Session of the Virginia General Assembly. Also relevant to this 2020 Plan, House Bill 889 established a pilot program for up to 200 MW of non-residential customers load to aggregate and purchase electricity from third-party suppliers. The Company has incorporated the effects of House Bill 889 into its load forecast, as discussed in Section 4.1.4.

I. 11 Other Environmental Regulations The following section outlines changes to various environmental regulations since the Company filed its 2018 Plan. The 2018 Plan contains a historical perspective on some of the environmental regulations discussed. For a comprehensive list of relevant environmental regulations, see Section 5.2.3.

J. JJJ Affordable Clean Energy Rule The Environmental Protection Agency (EPA) released the final version of the Affordable Clean Energy Rule (ACE Rule) on June 19, 2019, which replaced and repealed the Clean Power Plan. The ACE Rule was published on July 8, 2019, and applies to existing coal-fired power plants greater than or equal to 25 MW.

Under the ACE Rule, the EPA has set the best system of emissions reduction (BSER) for existing coal-fired steam EGUs as heat rate efficiency improvements based on a range of candidate technologies and improved O&M practices that can be applied at the unit level.

States are directed to determine which of the candidate technologies apply to each covered EGU and establish standards of performance (expressed as an emissions rate in CO2 pounds per M Wh) based on the degree of emission reduction achievable with the application of BSER. The EPA required that each state determine which of the candidate technologies apply to each coal-fired unit based on consideration of remaining useful plant life and other factors such as reasonable cost of the candidate technologies. The ACE Rule requires compliance at the unit level; it does not allow averaging across units at the same facility or between facilities as a compliance option.

In addition, it does not allow states to use alternative carbon mitigation programs, such as a cap-and-trade program, to demonstrate compliance as part of their state plans. A steam generati ng unit that is subject to a federally-enforceable permit that limits annual net-electric sales to one-third or less of its potential electric output, or 219,000 MWh or less, can be excluded from the ACE Rule.

The ACE Rule requires states to develop plans by July 2022. The EPA must approve these state plans by January 2024. If states do not submit a plan or if their submitted plan is not acceptable, the EPA will have two years to develop a federal plan.

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d E f if tT S O f iZ 1.JJ.2 New Source Performance Standards for Greenhouse Gas Emissions from Electric Generating Units The EPA issued final Standards of Performance for Greenhouse Gas Emissions From New, Modified, and Reconstructed Stationary Sources: Electric Utility Generating Units in October 20,15. In December 2018, the EPA proposed revisions to these standards that have not yet been finalized. If finalized, these standards would apply to any newly constructed or reconstructed steam generating units or stationary CTs that (i) have a base load rating over 250 million British thermal unit (MMBtu) per hour of heat input of fossil fuel and (ii) serve a generator capable of selling greater than 25 MW of electricity to a utility power distribution system. In the proposed revisions, the EPA did not revise the performance standard for newly constructed or reconstructed natural gas combined-cycle units, which remains at the 1,000 pounds COa per gross MWh standard on a 12-operating month rolling average basis. Any newly constructed or reconstructed gas turbine selling greater than 25 MW of electricity to a utility power distribution system would need to comply with the CO2 emission standards and work practice standards required by this rule.

1.11.3 Ozone National Ambient Air Quality Standards The ozone National Ambient Ah- Quality Standard (NAAQS) governs nitrogen oxide (NOx) emissions. The Company has entered into a mutual shutdown agreement with VDEQ to shut down and retire Possum Point Unit 5 by June 1, 2021, because the installation and operation of selective non-catalytic reduction technology to control NOx emissions from that unit would otherwise be needed to meet reasonably available control technology (RACT) requirements under the 2008 ozone NAAQS of 75 parts per billion (ppb).

The Clean Air Act (CAA) requires the EPA to review the NAAQS every five years and revise the NAAQS if necessary. On November 22, 2019, the EPA issued a finding that seven states including Virginia failed to submit state implementation plans to satisfy the interstate report requirements of the CAA as it pertains to the 2015 eight-hour ozone NAAQS. VDEQ submitted a draft proposal to the EPA for review in early February, and is awaiting a response from the EPA prior to the VDEQ opening its draft proposal for public comment.

The EPA initiated its review of the ozone NAAQS in May 2018 and concluded in a draft policy assessment that the current NAAQS of 70 ppb is adequate. The EPA expects to final ize this policy assessment, and issue a final decision in late 2020 or early 2021.

1.11.4 Cross-State Air Pollution Rule The Cross-State Air Pollution Rule (CSAPR) aims to reduce emissions of sulfur dioxide (SO2) and NOx from power stations in the eastern half of the U.S. CSAPR requires certain states to reduce annual SO2 emissions and annual ozone season NOx emissions to assist in attaining the ozone and fine particle NAAQS. The rule establishes an emissions cap for SO2 and NOx and limits the trading for emission allowances by separating affected states into two groups with no trading allowed between the groups.

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m m

Wliile CSAPR was originally intended to help downwind states attain the 1997 ozone NAAQS, [ji the EPA revised the emission caps downward as an update to the CSAPR in 2016 in order to aid © states in meeting the 2008 ozone NAAQS (the CSAPR Update Rule). As a companion to the @

CSAPR Update Rule, the EPA issued a rule in 2018 that found that states in the program need ^

take no additional steps to meet the 2008 ozone NAAQS beyond compliance with the existing trading programs mandates (the CSAPR Close-Out Rule).

On September 13, 2019, the D.C. Circuit partially remanded the CSAPR Update Rule to the EPA without vacating it. The court found that the rule was inconsistent with the CAA because it did not set a deadline by which upwind states must eliminate their significant contribution to downwind states nonattainment of the 2008 ozone NAAQS to comply with the good neighbor provision of the CAA. On October 1, 2019, the D.C. Circuit granted consolidated petitions for review of the CSAPR Close-Out Rule, thereby vacating and remanding the rule back to the EPA.

1.J J.5 New Yorks Clean Air Act Section 126(b) Petition In March 2018, the State of New York filed a petition with the EPA under Section 126 of the CAA alleging that certain stationary sources of NO* emissions in nine statesincluding several EGUs in Virginia that are owned and operated by the Companycontribute to nonattainment in New York and are interfering with maintenance of the 2008 or 2015 ozone NAAQS in New York. The petition requested the EPA to impose strict NOx limits equivalent to PACT requirements that New York has imposed on its facilities. On October 18, 2019, the EPA finalized its decision to deny the petition on the basis that New York had not demonstrated (i) that any areas in New York except for one would exceed either the 2008 or 2015 ozone NAAQS by 2023, or (ii) that the identified sources contributed to any such exceedance. On October 29, 2019, New York, New Jersey, and New York City jointly filed a petition for review in the D.C. Circuit, challenging the EPAs denial of this petition. The Company is participati ng as an intervenor in the litigation in support of the EPA.

On February 19, 2020, the States of New Jersey, Connecticut, Delaware, New York, and Massachusetts, along with the City of New York filed a lawsuit against the EPA in the U.S.

Distinct Court for the Southern District of New York seeking to compel the EPA to promulgate federal implementation plans for the 2008 NAAQS for ozone that fully address the requirements of the good neighbor provision of the CAA for seven upwind states, including Virginia.

1.11.6 Mercury & Air Toxics Standards In February 2019, the EPA published a proposed rule to reverse its previous finding that it is appropriate and necessary to regulate toxic emissions from power plants. However, the emissions standards and other requirements of the Mercury & Air Toxics Standards (MATS) rule would remain in place, as the EPA is not proposing to remove coal- and oil-fired power plants from die list of sources that are regulated under MATS. AH of the Companys applicable units are complying with the applicable requirements of the MATS rule.

On April 16, 2020, the EPA finahzed its reconsideration of its MATS supplemental cost finding and its proposed residual risk and technology review for MATS. The action was consistent with

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appropriate and necessary for the EPA to regulate mercury and hazardous air pollutant emissions © from power plants. The EPA concluded that it was not appropriate and necessary to regulate hazardous air pollutant emissions from power plants under the MATS rule because the costs ^

outweigh the benefits of emissions reductions. The EPA is also finalizing its determination that it will not be changing emissions standards for affected coal- and oil-based electric generating units. The effective date of the action will be 60 days after publication in the Federal Register.

The Company expects that this action will result in litigation.

1.11.7 Coal Combustion Residuals The Company currently operates inactive ash ponds, existing ash ponds, and coal combustion residual (CCR) landfills at eight different facilities. In April 2015, the EPA enacted a final rule regulating (i) CCR landfills; (ii) existing ash ponds that still receive and manage CCRs; and (iii) inactive ash ponds that do not receive, but still store, CCRs. This rule created a legal obligation for the Company to retrofit or close all inactive and existing ash ponds over a certain period of time, and to perform required monitoring, corrective action, and post-closure care activities as necessary. Since the rule was enacted, the EPA has reconsidered portions of the rule in response to litigation and petitions for reconsideration. In July 2018, the EPA promulgated the first phase of changes to the CCR rule and continues to issue changes to the CCR rule. In August 2018, the D.C. Circuit issued a decision in the pending challenges of the CCR rule, vacating and remanding to the EPA three provisions of the CCR rule. The Company does not expect the scope of the D.C. Circuits decision to affect its closure plans.

At the state level, in April 2018, Virginia Governor Northam signed legislation that required the Company to solicit and compile information from third parties on the suitability, cost, and market demand for beneficiation (z'.e., treatment of raw materials to improve chemical or physical properties) or recycling of coal ash from units at Bremo, Chesapeake, Chesterfield, and Possum Point. The coal ash recycling business plan was submitted to the Virginia General Assembly in November 2018. In March 2019, Governor Northam then signed legislation that required any CCR unit located at the Companys Bremo, Chesapeake, Chesterfield, or Possum Point power stations that stopped accepting CCR prior to July 2019 be closed by removing the CCR to an approved landfill or through recycling for beneficial reuse. The legislation further required that at least 6.8 million cubic yards of CCR be beneficially reused.

1.11.8 Clean Water Act The Clean Water Act (CWA) is a comprehensive program that uses a broad range of regulatory tools to protect the waters of the United States, including a permit program to authorize and regulate discharges to surface waters with strong enforcement mechanisms.

Section 316(b)

In October 2014, the final regulations under Section 316(b) of the CWA became effective; these regulations govern existing facilities and new units at existing facilities that employ a cooling water intake structure and that have flow levels exceeding a minimum threshold. The rule 23

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the creation of a single technology standard for entrainment. Instead, the EPA has delegated <© entrainment technology decisions to state regulators. State regulators are to make case-by-case entrainment technology determinations after an examination of five mandatory facility-specific ^

factors including a social cost-benefit test, and six optional facility-specific factors. The rule governs all electric generating stations with water withdrawals above two million gallons per day (MGD), with a heightened entrainment analysis for those facilities over 125 MOD.

The Company currently has seven facilities that are subject to the final Section 316(b) regulations. Additionally, the Company may have one hydroelectric power facility subject to the final regulations. The Company anticipates that it may have to install impingement control technologies at certain of these stations that have once-through cooling systems. The Company is currently evaluating the need or potential for entrainment controls under the final rule; decisions will be made on a case-by-case basis after a thorough review of detailed biological, technology, cost, and benefit studies.

Effluent Limitation Guidelines In September 2015, the EPA revised its effluent limitations guidelines (ELG) for the steam electric power generating category. The final rule established updated standards for wastewater discharges that apply primarily at coal and oil steam generating stations. Affected facilities are required (i) to convert from wet to dry or closed cycle coal ash management, (ii) to improve existing wastewater treatment systems, and/or (iii) to install new wastewater treatment technologies in order to meet the new discharge limits. In April 2017, the EPA granted two separate petitions for reconsideration of the ELG rule and stayed future compliance dates in the rule. In September 2017, the EPA signed a rule to postpone the earliest compliance dates for certain waste streams regulations in the ELG rule from November 2018 to November 2020; however, the latest date for compliance for these regulations remains December 2023.

In November 2019, the EPA released proposed revisions to the ELG rule that, if adopted, could extend the deadlines for compliance with certain standards at several facilities. The effects of this revised rule are still being evaluated and studies are currently underway to determine the best path for compliance.

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<S Chapter 2: Results of Integrated Planning Process yrj This chapter presents the results of the integrated planning process, including the Companys © current capacity and energy positions, the Alternative Plans presented to meet the future capacity 6*3 and energy needs of the Companys customers, and the net present value (NPV) of each 3 Alternative Plan. This section also includes the results of the initial transmission system reliability analysis related to the retirement of all Company-owned carbon-emitting generation in 2045, and the results of a Virginia residential bill analysis.

2.1 Capacity and Energy Positions Figures 2.1.1 and 2.1.2 illustrate the Companys current capacity and energy positions using unit retirement assumptions for Alternative Plan B. After adjusting for energy efficiency, voltage optimization, and retail choice as discussed in Sections 4.1.3, 4.1.4, and 4.1.5, respectively, DOM LSE is expected to experience a compound annual growth rate (CAGR) of 1.0% in future summer peak demand and 1.3% in energy requirements over the Planning Period.

Figure 2.1.1 - Current Company Capacity Position ('2021 to 20351 24,000 i 23,000 -

5 S

u

3. 18.000 A

<3

§ 17.000 \

iz 16.000 \

15.000 J 14.000 -l Notes: Existing Generators + NUGS also include generation under construction; DR = demand response; EE = energy efficiency; PP5 = Possum Point Unit 5 (oil); CH5&6 = Chesterfield Units 5 & 6 (coal); YT3 = Yorktown Unit 3 (oil);

CLI&2 = Clover Units l & 2 (coal); Rose = Rosemary (oil); AV = Altavista (biomass); HW = Hopewell (biomass);

SM = Southampton (biomass).

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u Figure 2.1.2 - Current Company Energy Position ('2021 to 2035") (=>>

110,000 (J3 100,000 90,000 o

80,000 c

70,000 60,000 50,000

^ rffi <$ f^y iN <$>

<& c& rCP c&

V Notes: Bxisting Generators + NUGS include generation under constraction; EE = energy efficiency; PP5 = Possum Point Unit 5 (oil); CH5&6 = Chesterfield Units 5 & 6 (coal); YT3 = Yorktown Unit 3 (oil); CL1&2 = Clover Units I & 2 (coal);

Rose = Rosemary (oil); AV = Altavista (biomass); MW = Hopewell (biomass); SI l = Southampton (biomass).

2.2 Alternative Plans The 2020 Plan presents a range of alternatives representing paths forward for the Company to meet the future capacity and energy needs of its customers. Notably, however, the build plans shown in Alternative Plans B through D do not fully account for possible system reliability and security issues. More planning work is necessary to test the grid under different conditions to ensure system reliability and security in the long term.

The Companys options for meeting customers future capacity and energy needs are: (i) supply-side resources, (ii) demand-side resources, and (iii) market purchases. A balanced approach^

which includes the consideration of options for maintaining and enhancing rate stability, increasing energy independence, promoting economic development, incorporating input from stakeholders, and minimizing adverse environmental impactwill help the Company meet growing demand and achieve its clean energy goals while protecting customers from a variety of potential challenges.

Specifically, the Company presents four different Alternative Plans designed to meet customers needs in the future under different scenarios, which were designed using constraint-based least-cost planning techniques:

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Plan A - This Alternative Plan presents a least-cost plan that estimates future generation © expansion where there are no new constraints, including no new regulations or @

restrictions on CO2 emissions. Plan A is presented for cost comparison purposes only in ^

compliance with SCC orders. Given the legislation that will take effect in Virginia on July 1, 2020, this Alternative Plan does not represent a realistic state of relevant law and regulation.

Plan B - This Alternative Plan sets the Company on a trajectory toward dramatically reducing greenhouse gas emissions, taking into consideration future challenges and uncertainties. Plan B includes the significant development of solar, wind, and energy storage resources envisioned by the VCEA. Plan B preserves approximately 9,700 MW of natural gas-fired generation to address future system reliability, stability, and energy independence issues.

Plan C - This Alternative Plan uses similar assumptions as Plan B, but retires all Company-owned carbon-emitting generation in 2045, resulting in close to zero CO2 emissions from the Companys fleet in 2045. To reach zero CO2 emissions in 2045, Plan C significantly increases the amount of energy storage resources and the level of imported power.

Plan D - This Alternative Plan uses similar assumptions as Plan C, but changes the capacity factor assumption for future solar resources from 25% to 19%. As a result. Plan D significantly increases the amount of solar resources needed to reach zero CO2 emissions in 2045.

Figures 2.2.1 through 2.2.4 show the build plans for each Alternative Plan. See Appendix 2A for the capacity and energy associated with all Alternative Plans.

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<6 Figure 2.2.1 - Alternative Plan A (nameplate M W)

COS = cost of service; PPA = power purchase agreement; Solar DER = solar distributed energy resources (less than 3 MW), whether Company-owned or PPA; OSW = offshore wind; PP5 = Possum Point Unit 5 (oil);

CH5&6 = Chesterfield Units 5 & 6 (coal); YT3 = Yorktown Unit 3 (oil); CLI&2 = Clover Units I & 2 (coal).

Figure 2.2.2 - Alternative Plan B (nameplate MW)

Notes: (1) Natural-gas fired facilities are placeholders to address probable system reliability issues resulting from the addition of significant renewable energy resources and the retirement of coal-fired facilities.

COS = cost of service; PPA = power purchase agreement; Solar DER = solar distributed energy resources (less than 3 MW), whether Company-owned or PPA; OSW = offshore wind; PP5 = Possum Point Unit 5 (oil);

CI-I5&6 = Chesterfield Units 5 & 6 (coal); YT3 = Yorktown Unit 3 (oil); CU&2 = Clover Units I & 2 (coal);

AV = Altavista (biomass); HW = Hopewell (biomass); SH = Southampton (biomass).

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Figure 2.2.3 - Alternative Plan C fnameplate MW)

Notes: (I) Natural-gas fired facilities are placeholders to address probable system reliability issues resulting from the addition of significant renewable energy resources and the retirement of coal-fired facilities.

COS = cost of service; PPA = power purchase agreement; Solar DER = solar distributed energy resources (less than 3 MW), whether Company-owned or PPA; OSW = offshore wind; PP5 = Possum Point Unit 5 (oil);

CH5&6 = Chesterfield Units 5 & 6 (coal); YT3 = Yorktown Unit 3 (oil); CLI&2 = Clover Units 1 & 2 (coal);

AV = Altavista (biomass); HW = Hopewell (biomass); SH = Southampton (biomass).

Figure 2.2.4 - Alternative Plan D (nameplate MW)

Notes: (I) Natural-gas fired facilities are placeholders to address probable system reliability issues resulting from the addition of significant renewable energy resources and the retirement of coal-fired facilities.

COS = cost of service; PPA = power purchase agreement; Solar DER = solar distributed energy resources (less than 3 MW), whether Company-owned or PPA; OSW = offshore wind; PP5 = Possum Point Unit 5 (oil);

CH5&6 = Chesterfield Units 5 & 6 (coal); YT3" = Yorktown Unit 3 (oil); CLI&2 = Clover Units I & 2 (coal);

AV = Altavista (biomass); HW = Hopewell (biomass); SH = Southampton (biomass).

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address probable system reliability issues resulting from the addition of significant renewable <gj energy resources and the retirement of coal-fired facilities. <§§ US Figure 2.2.5 shows the CO2 emissions from the Companys fleet for each Alternative Plan, while Figure 2.2.6 shows the regional CO2 emissions for each Alternative Plan. Because the regional CO2 emissions capture the effects of both energy imports and exports required to meet customer needs, the regional emissions are a better indicator of customers impact on the environment.

Figure 2.2.5 - Virginia CO2 Output from Company Fleet for Alternative Plans 40 35 30

<<9 As seen in Figures 2.2.2 through 2.2.4, Plans B through D are all very similar over the first 15 years of each Alternative Plan. This alignment between Alternative Plans B through D over the 15-year Planning Period creates a common pathway for the Company to pursue now while allowing new technologies to emerge and mature, and allowing analysis and study to continue.

Accordingly, for this 2020 Plan, the Company recommends a path forward that substantially aligns with the first 15 years of Alternative Plans B through D. Over the longer-term, however, based on current technology and this snapshot in time, the Company recommends Alternative Plan B.

2.3 Transmission System Reliability Analysis hi order to understand the possible transmission system reliability implications of retiring all Company-owned carbon-emitting generation in 2045, as contemplated by Alternative Plans C and D, the Company performed a transmission system power flow analysis by developing a base power flow case and three different scenarios, and utilizing simplifying assumptions. The initial results of this analysis identified North America Electric Reliability Corporation (NERC) reliability deficiencies on twenty-six 115 kV lines, thirty-two 230 kV lines, six 500 kV lines, and eleven transmission transformers that would need to be resolved to avoid NERC violations. In addition, the results indicated that Alternative Plans C and D would require construction of four interstate transmission lines at an estimated cost of $8.4 billion. A discussion of this analysis and the full results are provided in Section 7.5.

2.4 NPV Results The Company evaluated the Alternative Plans to compare and contrast the NPV utility costs for each build plan over the Study Period. Figure 2.4.1 presents these NPV results on the Total 31

System Costs line, as well as the estimated NPV of proposed investments in the Companys y=i transmission and distribution systems, broken down by specific line item.

Figure 2.4.1 - NPV Results (A) 2020 $B Plan A : Plan B Plan C i Plan D Total System Costs1 $ 34.7 $ 56.8 $ 60.7 $ 63.0 GT Plan $ 0.2 $ 3.2 $ 3.2 $ 3.2 SUP $ 2.2 $ 2.2 $ 2.2 $ 2.2 Broadband $ 0.2 $ 0.2 $ 0.2 Transmission Underground Pilot $ 0.2 $ 0.2 $ 0.2 Transmission $ 5.1 $ 5.1 $ 5.1 $ 5.1 Transmission Level Import Increase $ $ $ 8.4 $ 8.4 Customer Growth $ 2.0 $ 2.0 $ 2.0 $ 2.0 Subtotal Plan NPV2 $ 44.3 $ 69.7 $ 82.1 $ 84.3 Less Benefits of GT Plan $ $ (3.5) $ (3.5) $ (3.5)

Total Plan NPV $ 44.3 $ 66.2 $ 78.6 $ 80.8 Plan Delta vs. Plan A $ $ 21.9 $ 34.3 $ 36.6 Notes: (I) Total system costs include the results from Figures 2.2.1 through 2.2.4 plus approved, proposed, and generic DSM; solar interconnection costs; and solar integration costs. (2) Numbers may not add due to rounding.

2.5 Virginia Residential Bill Analysis The bill of a typical residential customer in Virginia using 1,000 kWh per month as of December 31, 2019, was $122.66. As of May 1, 2020, this typical bill is $116.18, largely attributable to a significant decrease in the fuel factor. The Company calculated the projected residential bill for Alternative Plans A and B over each of the next ten years. Figure 2.5.1 presents the summary results of these projections in 2030, as well as the CAGR. Importantly, these bill projections are not finalall Company rates are subject to regulatory approval. Additionally, the bill projection associated with Alternative Plan A is presented for comparison purposes only in compliance with SCC orders. Given the legislation that will take effect in Virginia on July 1,2020, Plan A does not represent a realistic state of relevant law and regulation.

As can be seen in Figure 2.5.1, about 40% of the projected bill increase from 2020 to 2030 is associated with investments incentivized or mandated by the VCEA and other legislation from the 2020 Regular Session of the Virginia General Assembly. Roughly one-third is attributable to compliance with directives that pre-date 2020, including the GTSA. Overall, the projected bill increase is approximately 2.9% on a compound annual basis using year-end 2019 customer bill as a baseline. The Company used year-end 2019 for this calculation to compare full-year data points. For comparison, in 2008, the year following passage of the Virginia Electric Utili ty Regulation Act, die bill of a typical residential customer in Virginia using 1,000 kWh per month was $107.20. Using 2008 as a baseline, the projected compound annual growth rate in the typical residential customer bill through 2030 is approximately 2.1%.

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<§£l Figure 2.5.1 - Residential Bill Projection Cl,000 kWh per Month')

Plan A1 $11.70 0.8%

Pre-2020 Legislation2 $15.28 1 .0 %

2020 Legislation3 $18.94 1.1%

Total 2030 Year End $168.58 2.9%

Total Bill Increase $45.92 Notes: (I) Represents bill projections associated with future generation in Alternative Plan A; approved and proposed investments in DSM; approved investments in the Grid Transfonnation Plan (i.e. Phase IA and IB);

investments in the Strategic Underground Program; and compliance with environmental laws and regulations, including CCR investments. (2) Represents bill projections associated with future generation in Alternative Plan B and other investments incentivized or mandated by legislation prior to 2020, including legislation related to pumped storage (2017), the GTS A (2018), and rural broadband (2019). (3) Represents bill projections associated with future generation in Alternative Plan B and other investments incentivized or mandated by the VCEA and other 2020 legislation.

For perspective, the average residential rate for RGGI states normalized for 1,000 kWh monthly usageapproximately $184.45is approximately 50% higher than the Companys typical residential bill as of year-end 2019 (Le., $122.66). See Figure 2.5.2.

Figure 2.5.2 - Residential Bill Comparison for RGGI States' S230.50 S2-°0

$226.40 S1S4.45 (RGGI avg)

S157.30 Company DE MD ME NY VT NH RI NLA. CT Note: (1) Based on residential rate data for RGGI states from U.S. Energy Infonnation Administration as of February 2020, normalized for 1,000 kilowatt-hour monthly usage. Typical 1,000 kilowatt-hour residential bill for Company as of year-end 2019.

33

Chapter 3: Short-Term Action Plan The short-term action plan provides the Companys strategic plan for the next five years (2020 to 2025). Generally, the Company plans to proactively position itself in the short-term to meet its commitment to clean energy for the benefit of all stakeholders over the long term. The Company also plans to continue its analyses on how to meet both its clean energy goals and the requirements of the VCEA while continuing to provide safe and reliable service to its customers.

As shown in Figures 2.2.2 through 2.2.4, Alternative Plans B through D present the same path forward in the next five years, and substantially similar paths over the next 15 years.

3.1 Generation Over the next five years, the Company expects to take the following actions related to existing and proposed generation resources:

File annual plans for the development of solar, onshore wind, and energy storage resources consistent with the RPS requirements established by the VCEA, including related requests for approval of certificates of public convenience and necessi ty and for prudence determinations related to PPAs;

Continue the construction of the CVOW demonstration project;

Continue development and begin construction of a larger build-out of offshore wind off the coast of Virginia;

Meet its targets under the Virginia RPS at a reasonable cost and in a prudent manner by:

(i) applying renewable energy from existing generating facilities, including NUGs; (ii) constructing and operating new renewable energy facilities and energy storage facihties; (iii) purchasing cost-effective RECs, including optimizing RECs produced by Company-owned generation (z'.e., when higher priced RECs are sold into the market and less expensive RECs are purchased and applied to the Companys RPS requirements);

Meet its target under North Carolina Renewable Energy Portfolio Standard at a reasonable cost and in a prudent manner, and submit its annual compliance report and compliance plan;

Support ongoing Nuclear Regulatory Commission (NRC) review of the subsequent license renewal application submitted for Surry Units 1 and 2 in October 2018;

Submit an application to the NRC for the subsequent license renewal for North Anna Units 1 and 2 by the end of 2020;

Continue developmental work for 300 MW of new pumped hydroelectric storage in southwestern Virginia;

Achieve a minimum of 10% electricity production at VCFfEC through the use of renewable waste wood by the end of 2021;

Continue to make investments at existing generation units needed to comply with environmental regulations;

In order to preserve the option to address probable system reliability issues resulting from the addition of significant renewable energy resources and the retirement of coal-fired facilities in the near term, evaluate sites and equipment for the construction of gas-fired CT units; 34

Continue to evaluate potential unit retirements in light of changing market conditions and regulatory requirements; and

Enhance access to natural gas supplies, including shale gas supplies from multiple supply basins.

Appendices 3A and 3B provide further details on each generation project under construction and under development, respectively. Appendix 3C provides a compar ison of the short-term action plan for generation resources in this 2020 Plan compared to the 2018 Plan.

3.2 Demand-Side Management Over the next five year's, the Company will continue to identify and propose new or revised DSM programs that meet the existing requirements of the GTSA and the new requirements and targets in the VCEA in conjunction with the DSM stakeholder process. The Company also expects to complete a new market potential study in late 2020, and will work with stakeholders through the existing stakeholder processes towards development of a long-term strategy to achieve legislative requirements in both the GTSA and VCEA as they relate to energy efficiency.

In Virginia, the Company filed its Phase VIII DSM application in December 2019 seeking approval of 11 DSM programs and an extension of one existing program. The SCC must issue its final order on this application by August 2020.

In North Carolina, the Company will continue its analysis of future programs and will file for approval in North Carolina for those programs that have been approved in Virginia that continue to meet Company requirements for new DSM resources. For programs that are not approved by the SCC, the Company will evaluate the programs on a North Carolina-only basis.

3.3 Transmission Over the next five years, the Company will continue to assess its transmission system and to construct facilities required to meet the needs of its customers. Generally, the Company anticipates transmission projects that are needed to rebuild aging infrastructure and to interconnect data center customers. The Company also intends to pursue an additional underground transmission line project under the pilot program established by the GTSA as modified by House Bill No. 576 from the 2020 Regular Session of the Virginia General Assembly, which was signed into law on March 4, 2020. Appendix 3D provides a list of planned transmission projects during the Planning Period, including projected cost per project as submitted to PJM.

The Company will also explore options to address probable system reliability issues resulting from the addition of significant renewable energy resources and the retirement of coal-fired facilities. Finally, the Company will continue its long-term analysis of the actions and costs associated with the retirement of dispatchable carbon-emitting generating units and the integration of large volumes of intermittent renewable generation on the transmission system.

3.4 Distribution Over the next five years, the Company will continue to assess its distribution system, adapt the distribution grid to meet the needs of a modernized system, and implement solutions and programs to meet the needs of its customers both today and in the future. Specifically, the Company expects to take the following actions related to its distribution system:

Implement the Grid Transformation Plan, including initiatives to facilitate the integration of DERs, enhance grid reliability and security, and improve the customer experience;

Publish hosting capacity maps for both utility scale and net metering DERs;

Continue to develop integrated distribution planning capabilities, including a standardized screening process to consider non-wires alternatives for distribution grid support;

Continue its Strategic Undergrounding Program (SUP);

Pilot V2G technology through the Electric School Bus Program;

Pilot BESS as grid support resources; and

Participate in the rural broadband pilot program.

Chapter 4: Generation - Planning Assumptions The generation planning process begins with the development of a long-term annual peak and energy requirements forecast. Next, existing and approved supply- and demand-side resources are compared with expected load and reserve requirements. This comparison yields the Companys expected future capacity and energy needs to maintain reliable service for its customers over the Study Period. The Company also completes a retirement analysis on certain existing supply-side resources to determine the economic feasibility of those resources. Next, a feasibility screening, followed by a busbar screening curve analysis, is conducted to identify a set of future supply-side resources potentially available to the Company, along with their individual characteristics, using input assumptions such as load, fuel prices, emissions costs, maintenance costs, and resource costs. Additionally, the Company incorporates the cost-benefit screening used to determine demand-side resources that could potentially fit into the Companys resource mix. These potential resources and their associated economics are next incorporated into the PLEXOS modela utility modeling and resource optimization toolalong with any regulatory requirements (e.g., the requirements in the VCEA). The Company then develops a set of alternative plans using PLEXOS that represent future paths forward considering the major drivers of future uncertainty. The Company develops these alternative plans in order to test different resource strategies against scenarios that may occur given future market and regulatory uncertainty. The NPV utility costs from PLEXOS include the variable costs of all resources (including emissions and fuel), the cost of market purchases, and the fixed costs of future resources.

The Company currently models its system in PLEXOS based on hourly data. This 2020 Plan does not incorporate sub-hourly analysis because the Company is still developing the inputs required for such an analysis. Sub-hourly analysis will require sub-hourly inputs based on historical performance for all resource type that could represent the operating characteristics of those resource for future projections. In addition, the Company must use internal information to establish the adjusted reserve margin and coincidence factor, because PJM does not provide this level of detail. Nevertheless, the Company intends to incorporate sub-hourly analysis in future Plans and update filings once the required inputs and processes are developed and validated.

This sub-hourly analysis would capture the potential benefits from ancillary service markets. For example, sub-hourly analysis would be able to capture the benefits that battery energy storage systems could offer to the regulating services.

In this 2020 Plan, the Company relies on several assumptions for its integrated resource planning process. This chapter discusses these assumptions related to load forecast, capacity needs, capacity value, commodity prices, RPS, solar, storage, gas transportation, the least-cost plan, and the VCEA. The Company updates its assumptions annually to maintain a current view of relevant markets, the economy, and regulatory drivers.

4.1 Load Forecast The 2020 Plan presents two load forecasts: (i) the 2020 PJM Load Forecast and (ii) the 2020 Company Load Forecast. The 2020 PJM Load Forecast was used in the development of all Alternative Plans. Because of the limited nature of the information provided by PJM, however, 37

the Company presents and discusses the 2020 Company Load Forecast as well, and presents a sensitivity using the Company Load Forecast. Figures 4.1.1 and 4.1.2 compare these two load forecasts, and provide historical peak load and energy. To provide an apples-to-apples comparison of peak load, the Company added back behind-the-meter generation resou rces to the PJM Load Forecast.

Overall, the PJM Load Forecast anticipates summer peak demand and energy CAGR for the Dominion Energy Zone (DOM Zone) of approximately 1.0% and 1.3%, respectively, over the Planning Period. The Companys Load Forecast anticipates DOM Zone summer peak demand and energy forecast CAGR of 1.2% and 1.4%, respectively.

Figure 4.1.1 - DOM Zone Peak Load Comparison Figure 4.1.2 - DOM Zone Annual Energy Comparison 38

A 10-year history and 15-year forecast of sales and customer count at the system level, as well as a breakdown at Virginia and North Carolina levels, are provided in Appendices 4A through 4F.

Appendix 4G provides a summary of the summer and winter peaks used in the Company Load Forecast. The 3-year actual and 15-year forecast of summer and winter peak, annual energy, DSM peak and energy, and system capacity are shown in Appendix 4H. Appendix 41 provides the reserve margins for a 3-year actual and 15-year forecast, and Appendix 4J provides the 3-year actual and 15-year forecast summer and winter peaks to show seasonal load. Finally, the 3-year historical load and 15-year projected load for wholesale customers are provided in Appendix 4K. See Appendix 4L for load duration curves for the years 2020, 2025, and 2035 with and without DSM. The information provided in Appendices 4A through 4F and 4K use the Company Load Forecast because PJM does not provide this level of detail .

Notably, neither the 2020 PJM Load Forecast nor the Company Load Forecast incorporates any effects on load of the ongoing public health emergency related to the spread of COVTD-19.

4.1.1 PJM Load Forecast The Company utilized the DOM Zone load forecast as published by PJM in its 2020 PJM Load Forecast Report dated January 2020 in the development of Alternative Plans A through D included in this 2020 Plan. The PJM website (www.PJM.com) contains information on the methods used by PJM in developing this forecast.

To properly use the PJM Load Forecast in the development of this 2020 Plan, the Company needed to adjust that forecast for modeling purposes. Because the PJM Load Forecast only provides a 15-year forecast, PJMs 15-year CAGR of 1.0% and 1.3% was used to extend the summer peak demand and energy forecasts, respectively, for years 2035 through 2045. Since PJM does not provide a DOM LSE forecast, the Company then scaled down the PJM DOM Zone coincident peak load forecast and energy forecast. This required the Company to adjust PJMs DOM Zone forecasts by a percentage factor calculated using a regression technique that utilized historical peak and energy data over the preceding 10-year period. Figure 4.1.1.1 presents the forecast extension and the DOM Zone adjustment.

39

Figure 4.1.1.1 -PJM Load Forecast Adjusted to LSE Requirements DOM Zone DOM LSE DOM Zone DOM LSE Year Coincident Peak Equivalent Energy Equivalent (MW) (MW) (GWh) (GWh) 2021 19,486 16,802 104,845 90,435 2022 19,837 17,105 107,471 92,700 2023 20,178 17,339 110,012 94,893 2024 20,462 17,644 112,951 97,428 2025 20,651 17,807 114,053 98,378 2026 20,880 18,004 115,176 99,347 2027 21,072 18,170 116,343 100,353 2028 21,250 18,323 117,880 101,679 2029 21,404 18,456 118,745 102,426 2030 21,572 18,601 119,722 103,269 2031 21,756 18,759 120,756 104,160 2032 22,008 18,977 122,161 105,372 2033 22,176 19,121 ' 122,831 105,950 2034 22,326 19,251 123,897 106,870 2035 22,249 19,357 125,114 107,920 2036 22,686 19,561 126,752 109,333 2037 22,926 19,768 128,412 110,765 2038 23,168 19,977 130,093 112,215 2039 23,413 20,188 131,797 113,685 2040 23,661 20,402 133,522 115,174 2041 23,911 20,617 135,270 116,682 2042 24,163 20,835 137,042 118,210 2043 24,419 21,055 138,836 119,758 2044 24,677 21,278 140,654 121,326 2045 24,938 21,503 142,495 122,915 Next, the Company needed to adjust the PJM Load Forecast to properly incorporate it into PLEXOS. Planning models, including PLEXOS, require 8,760-hour (/.<?., the total hours in a year) load shapes (8,760 load shapes) as a necessary input. PJM does not provide forecasted 8,760 load shapes. Instead of attempting to generate 8,760 load shapes for PJM, the Company adjusted a historical DOM LSE summer peak 8,760 load shape to meet the annual coincident peak demand and energy derived from the 2020 PJM DOM Zone Load Forecast.

PJMs practice is to adjust their load forecasts downward for current and forecasted DERs, which includes a forecast for net metering customers. Given this practice, all PLEXOS modeling that utilized the PJM Load Forecast in this 2020 Plan excluded DERs (including net metering customers) from the supply options.

One final note regarding the 2020 PJM Load Forecast is that PJM developed several revisions to its load forecasting process in 2019. Because of those changes, PJM now considers the DOM Zone to be a winter peaking zone. In other words, the winter peak demand forecast for the DOM Zone now exceeds the summer demand peak in all years of the forecast period according to PJM.

40

M a

Given that the PJM RTO is still a summer peaking entity, however, PJM will still procure ^

capacity for the DOM Zone at levels commensurate with the DOM Zone coincident summer ^

peak forecast. As such, the Company developed this 2020 Plan using a summer peak 8,760 <© shape modified to align with PJMs DOM Zone summer coincident peak demand and energy forecast.

4.J.2 Company Load Forecast This 2020 Plan also includes the Companys internally developed peak demand and energy forecast. The Company ran a sensitivity on Alternative Plan B, re-optimizing the build plan based on use of this internally developed forecast instead of the PJM Load Forecast. Figure 4.1.2.1 displays the results of this sensitivity analysis.

Figure 4,1.2.1 - Load Forecast Sensitivity Plan B Load Plan B Forecast Sensitivity Load Forecast PJM Company NPV Total $66.2 B $66.8 B Solar (MW) 15,920 15-year 15,920 15-ycar 31,400 25-year 31,400 25-year Offshore Wind (MW) 5,112 15-year 5,112 15-ycar 5,112 25-year 5,112 25-ycar Storage (MW) 2,714 15-year 2,714 15-ycar 5,114 25-year 5,114 25-year Combustion Turbine (MW 970 15-year 970 15-year 970 25-year 970 25-year PJTM Imports (MW) 5,200 15-year 5,200 15-ycar 5,200 25-year 5,200 25-year Retirements (MW 3,183 15-year 3,183 15-year 5,414 25-year 5,414 25-year As can be seen, the Company Load Forecast produces the same build plan as the PJM Load Forecast, all other Plan B assumptions being equal. The NPV is slightly higher using the Company Load Forecast because the Company would need to purchase additional energy in the later years of the Study Period. These results confirm that the two forecasts are very similar. In addition, it shows that the main driver for the units selected in the build plan for Alternative Plan B was the requirements of the VCEA, not the load forecast.

The following paragraphs describe the Companys internal load forecasting process, plus the new revisions to that process that were incorporated since the 2018 Plan was published.

41

©

The Company uses two econometric models with an end-use orientation to forecast sales, @

energy, and peak demand. The first is a customer class level sales model (Sales Model) and the second is a system level hourly load model (Peak and Energy Model). The models used to produce the Company Load Forecast have been developed, enhanced, and re-estimated annually for over 20 years. Both models were estimated over a rolling 15-year historical period as each long-term forecast is developed.

Sales Model The Sales Model incorporates separate monthly sales equations for residential, non-data center commercial, industrial, public authority, street and traffic lighting, and wholesale customer classes, as well as other LSEs in the DOM Zone (all of which are in the PJM RTO). The monthly sales equations are specified in a manner that produces estimates of heating load, cooling load, and non-weather sensitive load. In addition to developing a sales forecast, the pri mary role of the Sales Model is to provide estimates of historical and projected weather sensitive appliance stocks and non-weather sensitive base demand for use as exogenous variables in the Peak and Energy Model.

The residential sales equation also relies on an algorithm that dynamically adjusts forecasted appliance saturation and usage based on historical trends. These historical trends are determined from appliance data collected through surveys of the Companys residential customers. Figure 4.1.2.2 shows historical and forecasted saturation and usage data for residential heat pumps.

Figure 4.1.2.2- Residential Heat Pump fCoo ling') Saturation and Usage The next residential and commercial customer appliance survey and subsequent conditional demand analysis will be completed in the second half of 2020.

42

The Company has performed out-of-sample testing on its Sales Model for the residential, commercial, industrial, and public authority (government) customer classes. The results of tests are included in the Companys load forecasting model documentation.

Peak and Energy Model The Companys second model, the Peak and Energy Model, is comprised of 24 separate equations, one for each hour of the day, with adjusted DOM Zone loads as the dependent variable. Prior to estimating the Peak and Energy Model equations, historical hourly loads are adjusted by adding back historical distributed solar generation and load management reductions.

This adjustment is performed in order to ascertain the hue load rather than a load that is masked by these devices. The Companys practice is to account for distributed solar and load management programs as supply resources, not as a load modifier.

The Peak and Energy Model equations include a non-weather sensitive base demand variable, derived from the estimated aggregate non-weather sensitive base demand components from the Sales Model as well as a detailed specification of weather variables. The weather variables include interactions between both current and lagged values of temperature, humidity, wind speed, sky cover, and precipitation for five weather stations in conjunction with residential heating and cooling appliance stocks. The Peak and Energy Model also employs indicator variables to capture monthly, day of week, time of day, holiday, and other seasonal effects, as well as unusual events such as hurricanes that produce widespread outages.

The forecast of expected DOM Zone monthly and seasonal peaks and energy output is produced by simulating hourly demands from the estimated Peak and Energy Model over actual hourly weather from each of the past 15 years under projected economic conditions. The final forecasted zonal peak and energy values include subsequent adjustments for projected data centers, EVs, or other significant load additions not reflected in the hourly regression equations.

The final monthly peak and energy forecast for the DOM LSE is based on a regression of historical DOM LSE loads onto historical DOM Zone loads. The estimated coefficients are applied to the projected zonal loads resulting in a load forecast for the DOM LSE that is then adjusted for known firm contractual obligations in the forecast period.

Data Center Forecast Data center sales, energy, and peak demand are now being forecasted by the Company as a standalone category and are being applied to the Companys sales, peak, and energy forecasts as an exogenous adjustment. This action is consistent with a forecasting recommendation provided by Itron Inc. (Itron), as discussed below. Figures 4.1.2.3 and 4.1.2.4 reflect the data center peak and energy forecast, respectively.

43

Figure 4.1.2.3 - Data Center Peak Demand Forecast 00 CTi O <<H rsj CO <3- r^coo^OtHCMro^-m

<N (N CM rMCNrsifOcococoroco o

CM o o IN CM o

(N O O O O

<N O

<N O OOOOOOOOO rsjrMrjfNrNfSrMCMfN

<N rM fN fM Electric Vehicle Forecast The Company includes an adjustment to its sales, energy, and peak demand forecast to account for future incremental EV load. For this 2020 Plan, the Company has revised its EV forecasting process. Like data centers, the Company now subtracts EV sales from history and re-estimates the residential and commercial sales models. Also, like data centers, a separate EV forecast is developed and added to the appropriate residential or commercial sales forecast as a model post-44

processing adjustment. The EV forecast was developed by Navigant Consulting, Inc. ^

(ccNavigant). The Company used this same EV forecast to develop the recently-approved Smart © Charging Infrastructure Pilot Program, a component of its Grid Transformation Plan discussed © further in Section 8.3. The only modification to the Navigant forecast was that the Company ^

extended the forecast from 10 years to 25 years using the same long-term growth rates calculated from the forecast itself. Figures 4.1.2.5 and 4.1.2.6 reflect the EV peak and energy forecast, respectively.

Figure 4.1,2.5 - Electric Vehicle Peak Demand Forecast 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 45

s is i)T S © (i£ Independent Review of the Companys Load Forecasting Process In response to feedback received during the 2018 Plan proceeding, the Company engaged Itron in 2019 to (i) review its load forecasting process and methods and (ii) perform a long term (/. e.,

greater than 5 years) study of data center growth within the Companys service territory.

Overall, Itron concluded that the Companys load forecast methodology provides reasonable projections for long-term resource planning, and offered general recommendations that could improve that approach. The Company has incorporated the following load forecast recommendations into this 2020 Plan:

Itron recommended that the Company shorten the coefficient estimation period from the Companys traditional period of 30 years. Consistent with this recommendation, the 2020 Company Load Forecast utilized 15 years of history to re-estimate the model and also used 15 years of weather history in its weather normalization process.

Itron recommended that the Company isolate the data center loads from commercial sales and system hourly loads. Consistent with this recommendation, the 2020 Company Load Forecast removed the data center peak demand and energy from the commercial sector and estimated each sector (i.e., non-data center commercial and data centers) independently.

The Company will continue to review the results of the Itron study and incorporate recommendations into its load forecasting process as appropriate.

Itron also made several findings regarding long-term data center growth, including:

With continuing demand growth for offsite computing and cloud-based computer service, strong Northern Virginia data center demand is expected to grow well into the future;

Data center demand is expected to increase 176 MW on average per year between 2020 and 2030; and

Utilizing the Bass Diffusion Model is a reasonable approach to forecasting long-term data center growth.

Economic and Demographic Assumptions The economic and demographic assumptions that were used in the Company Load Forecast models were supplied by Moodys Analytics, prepared in October 2019, and are included as Appendix 4M. Figure 4.1.2.7 summarizes the economic variables used to develop the Companys sales and peak load forecasts.

46

fed m

Compound Annual Growth Rate (%)

2020 - 2035 DEMOGRAPHIC:

Customers (000)

Residential 2,373 2,754 1.00%

Commercial 247 279 0.81%

Population (000) 8,627 9,341 0.53%

ECONOMIC:

Employment (000)

State & Local Government 545 616 0.82%

Manufacturing 244 202 -1.25%

Government 728 800 0.63%

Income ($)

Per Capita Real disposable 47,758 62,345 1.79%

Price Index Consumer Price (1982-84=100) 261 368 2.33%

VA Gross State Product (GSP) 497 659 1.90%

Note: (1) State & Local Government = State (Commonwealth of Virginia) + Local (County + Municipalities)

(2) Government = State (Commonwealth of Virginia) + Local (County + Municipalities) + Federal Employment (Non-Military)

Explanatory Variable Comparison The Company relies on Virginia economic explanatory variable forecasts supplied by third parties in the development of its load forecast for the DOM Zone. The supplier of these explanatory variable forecasts for the 2020 Company Load Forecast was Moodys Analytics (Moodys); PJM also used explanatory variables from Moodys in the development of its 2020 Load Forecast.

In past proceedings, questions have arisen about the use of Moodys and whether other entities could provide such forecasts. To the Companys knowledge, the only other reputable supplier of these forecast variables is IHS Markit (IHS). For direct comparison purposes in this 2020 Plan, the Company procured Virginia economic variable forecasts from both Moodys and IHS.

Appendix 4N provides charts comparing different relevant variables. As shown in Appendix 4N, except for housing permits, IHS forecasts are similar to or higher than Moodys. The Company uses the housing permit forecast as an input variable in its residential load forecasting process to determine the number of residential customers. The residential load forecast also incorporates other input variables, such as disposable income forecast. If the Company had used IPISs economic variable forecasts instead of Moodys, it is likely that the residential sales results would be similar because while IHSs housing permit forecast is lower than Moodys, IBSs disposable income forecast is higher.

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Net Metering Forecast The Company has developed a process that can forecast residential and commercial net metering customers on a feeder level basis. This forecasting method can be used by the Company in forecasting future net metering supply-side resources. It cannot be used when using the PJM Load Forecast because PJM calculates behind-the-meter (including net metering) resources using different methods and reduces its overall load forecast by the determined values.

The net metering forecast process is composed of two components. The first component is the three parameter Bass Diffusion Model (BDM) and the second component is a logit classification model. On a feeder level basis, the BDM is fit to actual net metering customer data to determine the first two parameters of the BDM, which are the coefficient of innovation and the coefficient of imitation. The logit classification model is used to determine the maximum number of potential customers that will elect to implement net metering technology at their premises using demographic information such as premises size, age, and value. This maximum number of potential customers figure is then utilized within the BDM framework as the third parameter to determine the leveling off point or the 100% saturation level of the BDM. This process will determine the net metering customer forecast, which is then translated into kWh using feeder averages for single unit size and capacity factor. The methods should prove valuable as the Companys distribution planners proceed with feeder assessments as part of evolving integrated distribution planning capabilities.

Wholesale Power Sales The Company currently provides full requirement wholesale power sales to three entities, which are included in the Company Load Forecast. Appendix 4K provides a list of wholesale power sales contracts with parties to whom the Company has either committed or expects to sell power during the Planning Period.

Results The DOM Zone is typically a summer peaking system. The all-time summer unrestricted peak demand for the DOM Zone is 20,328 MW and was set in the summer of 2011. On July 20, 2019, the DOM Zone unrestricted peak demand was 20,161 MW. The peak-producing weather event that drove this 2019 summer demand culminated on a Saturday. The Company estimates that had this weather pattern culminated on a weekday, the load would have been approximately 500 MW higher, thus resulting in a new all-time summer peak demand of 20,661 MW. However, during the winter periods of 2013/2014, 2014/2015, 2017/2018, and 2018/2019, significant DOM Zone unrestricted peaks were set at 19,978 MW, 21,867 MW, 21,350 MW, and 20,104 MW, respectively. Nevertheless, based on its load forecasting processand unlike PJMthe Company still considers tire DOM Zone to be a summer-peaking zone through 2031.

The historical DOM Zone summer peak growth rate has averaged about 1.3% annually over the 2004 to 2019 period. The annual average energy growth rate over the same period is approximately 0.8%. Historical DOM Zone peak load and annual energy output along with a 15-year forecast are shown in Figures 4.1.2.8 and 4.1.2.9. Figure 4.1.2.8 also reflects the actual 48

(S)vE(S)(in£S(!3)fiE winter peak demand. DOM LSE peak and energy requirements are both estimated to grow annually at an approximate CAGR of 1.3% and 1.4%, respectively, throughout the Planning Period.

Figure 4,1.2.8 - DOM Zone Peak Load Based on Company Load Forecast PEAK DEMAND (MW) rJfSCNr^CS<NfNfN(Nr>J<NrNCNOJOJCNfNCN(N(N(NtN(N(NCN(N(NrNrNrgOI(N 13 igure 4.1.2.9 - DOM Zone Annual Energy Based on Company Load Forecast ANNUAL ENERGY (GWh) 49

Virginia State Corporation Commission eFiling CASE Document Cover Sheet to Case Number (if already assigned) PUR-2020-00035 Case Name (if known) Commonwealth of Virginia, ex rel. State Corporation Commission, In re: Virginia Electric and Power Companys Integrated Resource Plan filing pursuant to Va. Code §56-597 et seq.

Document Type OTHR Document Description Summary the 2020 Integrated Resource Plan of Virginia Electric and Power Company - part 2 of 4 Total Number of Pages 89 Submission ID 18652 eFiling Date Stamp 5/1/2020 2:10:54PM

m

categories. The first category (Categoiy 1 Programs) consists of previously-approved EE programs that remain effective, along with programs that are currently pending approval before the SCC in Case No. PUR-2019-00201. The second categoiy (Categoiy 2 Program) is a generic EE program that is designed to meet the requirements of the: (i) VCEA; and (ii) GTSA. Specifically, the Category 2 Program was designed to increase the level of EE to meet the 2022 through 2025 EE targets set in the VCEA and to meet the GTSA requirement to propose $870 million in EE programs by 2028. Alternative Plan A includes only adjustment for Category 1 Programs. Alternative Plans B through D include adjustment for both Category 1 and Category 2 Programs.

To estimate the Category 2 Program, the Company first determined the projected 2028 EE savings and EE costs associated with the Category 1 Programs. Using this information, the Company then determined the added EE savings necessary to meet the EE targets of the VCEA and also the EE savings needed to achieve the $870 million in EE-related spending by 2028. The Category 2 Program volumes were determined assuming a generic EE program fixed price of

$200/MWh, which is based on the Companys 2018 solicitation to vendors. This approach is a theoretical assumption used for planning purposes only. In reality, the level of energy efficiency savings included in this 2020 Plan may not materialize in the same manner as modeled due to many outside factors. These factors could include but are not limited to the ability of future vendors to deliver program savings at the fixed price, the desire of customers to participate in the program at that price, and the effectiveness of the program to be administered at that price.

Therefore, the costs and level of savings modeled for the Category 2 Program are placeholders that will be revised as future phases of actual EE programs are developed and implemented.

The Categoiy 2 Program forecast uses a start date of January 1, 2021, and grows at a pace that will meet the 2022, 2023, 2024, and 2025 EE targets required in the VCEA. The Program continues to grow until the total EE spend equates to $870 million in 2028. After 2028, the Category 2 Program levels out for a five-year period, and then begins a slow downward trajectory that simulates a loss in program participation. Figures 4.1.3.1 and 4.1.3.2 identify the EE energy and capacity adjustments to the load forecasts used in this 2020 Plan. As stated, Alternative Plan A includes only adjustment for Category 1 Programs, while Alternative Plans B through D include adjustment for both Categoiy 1 and Category 2 Programs.

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(=*

3.500.000 3.000.000 l 2,500,000 1,500,000 1,000,000 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035

^Category 1 Programs Category 1 Programs Plus Category 2 Program Figure 4,1.3.2 - EE Coincident Summer Peak Demand Forecast 1000 900 100 0 _ . ------ - - -

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Category 1 Programs -^Category 1 Programs Plus Category 2 Program 51

The Company also modeled EE as a supply-side resource in the PLEXOS model. The modeling of EE as a load reducer and as a supply-side resource resulted in effectively identical results.

Figures 4.1.3.3 and 4.1.3.4 show the Companys current capacity and energy position with DSM modeled as a supply-side resource using unit retirement assumptions for Alternative Plan B.

Figure 4.1.3.3 - Current Company Capacity Position (2021 to 2035) 5S to 3a E

<z

N *^ ^&

Notes: Existing Generators + NUGS also include generation under construction; DR = demand response; EE = energy efficiency; PP5 = Possum Point Unit 5 (oil); CH5&6 = Chesterfield Units 5 & 6 (coal); YT3 = Yorktown Unit 3 (oil);

CLI&2 = Clover Units I & 2 (coal); Rose = Rosemary (oil); AV = Altavista (biomass); MW = Hopewell (biomass);

SH = Southampton (biomass).

52

Figure 4.1.3.4 - Current Company Energy Position (2021 to 2035')

110,000 100,000 90,000 Notes: Existing Generators + NUGS also include generation under construction; EE = energy efficiency; EPS = Possum Point Unit 5 (oil); CH5&6 = Chesterfield Units 5 & 6 (coal); YT3 = Yorktown Unit 3 (oil); CU&2 = Clover Units I & 2 (coal); Rose = Rosemary (oil); AV = Altavista (biomass); MW = Hopewell (biomass); SH = Southampton (biomass).

4.1.4 Retail Ch oice A djustment The load forecasts in this 2020 Plan include a downward post-modeling adjustment for customers within the Companys service territory who have chosen (or may choose) to purchase energy and capacity from third-party retail electric suppliers under Va. Code §56-577 (Choice Customers). To develop this forecast the Company first determined the number of current and potential Choice Customers for 2019 and 2020. This included those customers eligible to participate in the pilot program established by House Bill No. 889 in the 2020 Regular Session of the Virginia General Assembly for up to 200 MW of non-residential load to aggregate and purchase electricity from third-party suppliers. Based on this total set of customers, the Company then determined the average energy and peak demand for each of these customers over the last three years.

The summation of each customers average annual energy and capacity use then formed the starting point for the Choice Customer forecast. This Choice Customer starting point is composed of two different types of customers. The first set is customers that have pursued, or may pursue, third-party supply under Va. Code §56-577 A 3 or A 4 (A 3 and A 4 Choice Customers), while the second set is made up of customers that have opted, or may opt, for third-party supply under Va. Code §56-577 A 5 (A 5 Choice Customers). Given that A 3 and A 4 53

Choice Customers must provide five years advanced written notice before returning to purchase electricity from the Company, the Company assumed in this forecast adjustment that those customers would remain under third-party supply for the entire Study Period. To the extent A 3 and A. 4 Choice Customers file written notice to return to Company service, the Company can factor this load into its future load forecast adjustments. Given that A 5 Choice Customers have no similar advance written notice requirement, the Company must remain cognizant that those customers could retum to Company service at any time and must plan accordingly as the default service provider. In addition, A 5 Choice Customers will no longer be able to purchase electricity from third-party suppliers if the SCC approves the Companys proposed Rider TRG pending in Case No. PUR-2019-00094. Therefore, the Company assumed in this forecast that A 5 Choice Customers gradually return to full Company service by the end of 2023. Figures 4.1.4.1 and 4.1.4.2 identify the Choice Customer peak demand and energy forecast adjustment in this 2020 Plan.

Figure 4.1.4.1 - Choice Customer Energy Forecast 600 100 0 - - -

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 54

m m

Figure 4.1.4.2 - Choice Customer Coincident Summer Peak Demand Forecast UF]

I**

© 5.000.000 m yj 1,500,000 1,000,000 500,000 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 4.J.5 Voltage Optimization A djustment As part of its Grid Transformation Plan, discussed further in Section 8.3, the Company seeks to fully deploy AMI across its service territory, and then use this technology to enable voltage optimization. Voltage optimization, if approved and deployed, would lead to energy and capacity savings. Because of the preparation schedule associated with this 2020 Plan, Alternative Plans B, C, and D include a post-model downward adjustment to the load forecast to account for the savings associated with voltage optimization as proposed in the Grid Transformation Plan. Figures 4.1.5.1 and 4.1.5.2 reflect the peak demand and energy savings forecast adjustment resulting from voltage optimization.

55

<§j

80 (g MW Figure 4.1.5.2 - Voltage Optimization Energy Forecast 500.000 450.000 56

w 4.2 Capacity Market Assumptions U"!

pa m

The Company participates in the PJM capacity planning process to ensure supply of capacity © resources for its customer load. As a member of PJM, die Company has die option to buy capacity in order to satisfy the mandated reliability requirements either (i) through the RPM forward capacity market or (ii) through the FRR alternative. PJMs planning years (referred to as delivery years for RPM) run from June 1 to May 31. The Company has satisfied its capacity obligation through the RPM auction through May 31, 2022.

Short-Term Capacity Planning As a PJM member, the Company is a signatory to PJMs Reliabdity Assurance Agreement, which obligates the Company to purchase sufficient capacity to maintain overall system reliability. PJM determines these obligations for each zone using its annual load forecast and reserve margin guidelines as inputs. PJM then conducts a capacity auction process for meeting these input requirements up to three years into the future. This auction process includes the base RPM auction as well as and subsequent incremental auctions that are held to allow market sellers and PJM to adjust positions for changes such as construction delays or outage assumptions. This auction process determines the clearing reserve margin and the capacity price for each zone for the delivery year that is three years in the future (e.g., the 2018 base RPM auction procured capacity for the delivery year 2021/2022).

PJM has delayed die 2019 and 2020 auction processes due to the pending FERC MOPR proceeding discussed in Section 1.6.1. Following resolution of this proceeding, PJM plans to compress the timelines for these auctions, currently targeting late 2020 or early 2021 for resuming the RPM auction process.

Currently, the Company offers its capacity resources, including owned and contracted generation, into the RPM auction as a generation provider. As an LSE, the Company is then obligated to purchase capacity to cover its PJM auction-determined capacity requirements.

In the future, the Company could satisfy its capacity obligation through the FRR alternative. As discussed in Section 1.6.2, this alternative would allow the Company to self-supply its capacity obligation. Importantly for modeling purposes, however, the modeling is indifferent to whether the Company satisfies its capacity obligation through the RPM auction or through the FRR alternative. Operating under the FRR alternative, the Company would self-supply its capacity obligation. Instead of collecting a capacity revenue stream for generating resources, the Company assumes generating resources would obtain capacity benefit by avoiding capacity market purchases. For modeling purposes, the Company would continue to use capacity market forecasts and assume generating resources collect capacity benefits by avoiding capacity purchases under FRR. Further, the modeling is indifferent to whether the Company operates under the FRR alternative because the Company models the forecasted reserve margin at the minimum reserve margin, which is also the obligation under FRR. Figure 2.1.1 indicates both the minimum PJM reserve requirement {i.e., the solid line) and the typical market reserve requirement {i.e., the dashed line).

57

Long-Term Capacity Planning - Reserve Requirements The Company uses PJMs reserve margin guidelines to determine its long-term capacity requirement. PJM conducts an annual reserve requirement study to determine an adequate level of capacity in its footprint to meet the target level of reliability, measured as a loss of load expectation equivalent to one day of outage in ten years. To satisfy the NERC and Reliability First Corporation Adequacy Standard BAL-502-RFC-02, Planning Resource Adequacy Analysis, Assessment, and Documentation, PJMs 2019 Reserve Requirement Study recommended using an installed reserve margin, of 15.9% for delivery year 2020/2021, 15.1% for delivery year 2021/2022, 14.9% for delivery year 2022/2023, and 14.8% for delivery year 2023/2024.

PJM develops reserve margin estimates for planning years rather than calendar years. Because PJM is a summer peaking entity, and because the summer period of PJMs planning year coincides with the calendar year summer period, calendar and planning year reserve requirement estimates are determined based on the identical summer time period. For example, the Company uses PJMs 2020/2021 delivery year assumptions for the 2020 calendar year in this 2020 Plan because it represents the expected peak load during the summer of 2020.

The Company makes one assumption when applying the PJM reserve margin to the Companys modeling efforts. Since PJM uses a shorter planning period than the Company (z.e., ten years for PJM rather than 15 years for the Company), the Company uses the most recent PJM. Reserve Requirements Study and assumes the reserve margin value for delivery year 2023 would continue throughout the Study Period. Figure 4.2.1 shows the adjusted load forecast used in the modeling of Alternative Plans B, C, and D.

58

Figure 4.2.1 - PJM Adjusted Load Forecast PJM DOM Zone DOM LSE DOM LSE DOM LSE Reserve Total DOM LSE a

PJM Reserve e

Year Coincident Peak Equivalent Adjustments1 Requirement Requirement Peak Requirement us (MW) (MW) (MW) (%) (MW) (MW) 2021 19,486 16,802 705 15.1% 2,431 18,528 2022 19,837 17,105 693 14.9 % 2,445 18,857 2023 20,178 17,339 683 14.8 % 2,474 19,190 2024 20,462 17,644 723 14.8 % 2,504 19,425 2025 20,651 17,807 944 14.8 % 2,496 19,359 2026 20,880 18,004 915 14.8 % 2,529 19,618 2027 21,072 18,170 1,083 14.8' 2,529 19,616 2028 21,250 18,323 962 14.8 i 2,569 19,931 2029 21,404 18,456 992 14.8 i 2,585 20,048 2030 21,572 18,601 998 14.8 % 2,605 20,208 2031 21,756 18,759 1,156 14.8 % 2,605 20,208 2032 22,008 18,977 1,163 14.8 % 2,636 20,450 2033 22,176 19,121 1,022 14.8 % 2,679 20,779 2034 22,326 19,251 1,030 14.8 % 2,697 20,917 2035 22,249 19,357 1,011 14.8 % 2,715 21,061 Notes: (1) DOM LSE Adjustments include adjustments to the load forecast for energy efficiency, retail choice, and voltage optimization as discussed in Sections 4.1.3,4.1.4, and 4.1.5, respectively.

As discussed in Section 1.6.2, the Company has historically purchased reserves in excess of the approximately 15% planning reserve margin. Given this history, Figure 2.1.1, as well as the capacity figures in Appendix 2A, display a second capacity requirement labeled PJM Capacity Auction (Typical) that includes an additional 5% reserve requirement target that is commensurate with the upper bound where the RPM market has historically cleared. All Alternative Plans were optimized to meet the PJM coincident summer peak load forecast as discussed in Section 4.1.1, which is labeled as Minimum PJM Reliability Requirement (Net of EE) in Figure 2.1.1, as well as the capacity figures in Appendix 2A.

Actual reserve margins in each year may vary based upon the outcome of the forward RPM auctions, revisions to the PJM RPM rules, and annual updates to load and reserve requirements.

Appendix 4H provides a summary of PJMs summer and winter peak load and energy forecast, while Appendix 41 provides a summary of projected PJM reserve margins for summer pealc demand.

4.3 Capacity Value Assumptions Since the fall of 2018, PJM has been developing a probabilistic analysis aimed at valuing the capacity value of renewable resources. This approach utilizes a concept called effective load carry ing capability (ELCC). As defined by PJM, ELCC is a measure of the additional load that the system can supply with the particular generator of interest without a change in reliability.

ELCC can also be defined as the equivalent MW of a traditional generator that results in the same reliability outcome based on what a particular generator of interest (such as an intermittent 59

s i) (S

Therefore, PJM states that a resource that contributes a significant level of capacity during high-risk hours will have a higher capacity value (i.e., a higher ELCC) than a resource that delivers the same capacity only during low-risk hours. High-risk hours are those hours that PJM IS expects the peak demand to occur.

For the purposes of the 2020 Plan, the Company has used the PJM ELCC studies published to date to estimate the capacity value of solar resources. This approach indicated the capacity value of solar is currently in the 45% range, but decreases over time as the solar saturation grows. PJM currently performs its load forecasts, installed reserve margins, reliability metrics, and ELCC calculations at the hourly or daily level.

The Company has assumed approximately 30% capacity value for offshore wind. This capacity value is based on the PJM-approved capacity value associated with the Companys proposed offshore wind queue projects because, to date, PJM has not published an ELCC-based analysis for offshore wind.

For storage resources, PJM currently adheres to a 10-hour run requirement for determining capacity value. This rule dictates that for capacity market participation, a storage resource with duration less than 10 hours1.157407e-4 days 0.00278 hours 1.653439e-5 weeks 3.805e-6 months will be de-rated down to the capacity value equal to the resources duration as a fraction of 10 hours1.157407e-4 days 0.00278 hours 1.653439e-5 weeks 3.805e-6 months . This rule is currently under review by FERC. PJM has also recently initiated an effort to develop ELCC calculations for storage resources. The storage approach would likely incorporate the dispatch characteristics and duration of storage resources.

Because of these pending initiatives, the Company has modeled the capacity value of storage resources using PJMs existing 10-hour requirement for the purposes of the 2020 Plan.

4.4 Commodity Price Assumptions The Company utilizes a single source to provide multiple scenarios for the commodity price forecast to ensure consistency in methodologies and assumptions. The Company performed the analyses in this 2020 Plan using energy and commodity price forecasts provided by 1CF Resources, LLC (JCF) in all periods except the first 36 months of the Study Period. The forecasts used for natural gas, coal, power, emissions (SOx, NOx) and renewable energy certificate (REC) prices rely on forward market prices as of December 31, 2019, for the fi rst 18 months of the Study Period and then blended forward prices with ICF estimates for the next 18 months. Beyond the first 36 months, the Company used the ICF commodity price forecast exclusively. The forecast used for capacity and CO2 prices are provided by ICF for all years forecasted within this 2020 Plan. The capacity prices are provided on a calendar year basis and reflect the results of the PJM RPM base residual auction through the 2021/2022 delivery year, thereafter transitioning to the ICF capacity forecast beginning with the 2022/2023 delivery year.

In die 2020 Plan, the Company utilized four commodity forecasts:

- No CO2 Tax

- Mid-Case Federal CO2 with Virginia in RGGI 60

- Virginia in RGGI

- High-Case Federal CO2

© Appendix 40 provides the annual prices for each commodity forecast. 645 These commodity forecasts approached carbon scenarios using various potential outcomes to regulations or legislation designed to reduce CO2 emissions. The Virginia in RGGI commodity forecast addressed RGGI on a standalone basis. To address the potential for more stringent regulation or legislation at the federal level, the High-Case Federal CO2 commodity forecast was developed. The combined impact of RGGI and more moderate federal CO2 regulation or legislation is addressed in the Mid-Case Federal CO2 with Virginia in RGGI commodity forecast.

The Company utilized the Mid-Case Federal CO2 with Virginia in RGGI commodity forecast for Alternative Plans B through D, and the No CO2 Tax commodity forecast in Plan A. The Company ran sensitivities on Alternative Plan B, keeping the same build plan, but then applying the Virginia in RGGI commodity forecast and, separately, the High-Case Federal CO2 commodity forecast. The intent of these sensitivities is to show the effect on N PV using a range of commodity prices. Figure 4.4.1 displays the results of these sensitivities.

Figure 4,4.1 - Commodity Forecast Sensitivity Plan B Commodity Plan B Commodity Plan B Forecast Sensitivity 1 Forecast Sensitivity 2 Load Forecast Mid-Case Federal CO2 Virginia in RGGI High-Case Federal CO2 NPV Total $66.2 B $65.7 B $67.6 B As can be seen, using the High-Case Federal CO2 commodity forecast results in a higher NPV because of higher CO2 prices, all other Plan B assumptions being equal. The sensitivity using the Virginia in RGGI conunodity forecast results in a similar NPV as Alternative Plan B because of the similarities in pricing between these two forecasts.

Because of the preparation schedule associated with this 2020 Plan, the commodity price forecasts do not include the regional impacts on commodity prices that may result from the VCEA. As with all forecasts, there remain multiple possible outcomes for future prices that fall outside of the commodity prices developed for this 2020 Plan. History has shown that unforeseen events and events not contemplated five or ten years before their occurrence can result in significant changes in market fundamentals. The effects of unforeseen events should be considered when evaluating the viability of long-term planning objectives. The commodity price forecasts analyzed in the 2020 Plan present reasonably likely outcomes given the current understanding of market fundamentals, but do not present all possible outcomes.

4.4.1 Mid-Case Federal CO2 with Virginia in RGGI Commodity Forecast The Mid-Case Federal CO2 with Virginia in RGGI commodity forecast was developed for the Company to address a future market environment where both regional and federal carbon regulations affect electric generation units. The Mid-Case Federal CO2 with Virginia in RGGI 61

hd m

m commodity forecast reflects both (i) Virginia being a full member of RGGI in 2021 and (ii) a ^yi federal carbon program. The federal carbon program assumed in this forecast is driven by @

regulations reflecting a federal policy consistent with the goals identified under the last iteration <§§ of the federal Clean Power Plan (GPP). IGF recalculated the GPP mass caps to reflect the ^

changes in emission levels since the EPA first determined the CPP state budgets. While it is likely that future regulation would include different requirements than the CPP, IGF relied on the requirements of this representative mid case for future CO2 regulations of the power sector.

This representation assumes that states adopt mass-based standards within a national trading structure covering all states, except California which maintains a state-specific program. It also assumes that existing and new sources are included under the cap-and-trade program; RGGI and the California-specific programs continue as individual programs. This type of CO2 program is assumed to begin in 2026 because it would not require legislative action at the federal level.

Utilizing the Mid-Case Federal CO2 with RGGI in Virginia commodity forecast allows the Company to evaluate Alternative Plans using a commodity price forecast that reflects ICFs independent view of future market conditions with Virginia being a full participant i n RGGI and modest regulations on carbon emissions from electric generation activities at the federal level.

ICFs independent, internal views of key market drivers include: (i) market structure and policy elements that shape allowance markets; (ii) fuel and power market fundamentals ranging from expected capacity and pollution control installations; (iii) environmental regulations; and (iv) fuel supply-side issues. The development process assesses the effect of environmental regulations on the power and fuel markets and incorporates ICFs views on the outcome of new regulatory initiatives.

Figure 4.4.1.1 presents a comparison of average fuel, power, and REG prices used in the 2018 Plan and the 2019 update to the 2018 Plan (the 2019 Update) relative to those used in this 2020 Plan. See Appendix 4P for additional details of these forecasts, including fuel, allowance, power price forecasts, and the PJM RTO capacity price forecast. See Appendix 4R for delivered fuel prices and primary fuel expense from the PLEXOS model output using the Mid-Case Federal CO2 with Virginia in RGGI conunodity forecast.

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Figure 4.4.1.1 -Fuel, Power, and REC Price Commodity Forecast Comparison &

©

2) Capacity price represents actual clearing price from the PJM RPM base residual auction through delivery year 2020/2021 for 2018 Plan, and through delivery year 2021/2022 for the 2020 Plan and 2019 Update.

3) 2018 Planning Period 2019-2033, 2019 Planning Period 2020-2034, 2020 Planning Period 2021-2035.

4) The 2018 Plan column reflects flic PJM Tier I REC prices as filed in the 2018 Compliance Filing.

4.4.2 No CO2 Tax Commodity Forecast The No CO2 Tax commodity forecast anticipates a future without any new regulations or restrictions on CO2 emissions beyond those already in place or previously approved. DOM Zone peak energy prices are slightly lower than the Mid-Case Federal CO2 with Virginia in RGG.T commodity forecast across the Planning Period because there is no incremental requirement to comply with CO2 regulation targets to pass through to power prices. Given forthcoming law in Virginia imposing CO2 regulation, this assumption is, in the Companys view, no longer reasonable. The No CO2 Tax forecast is utilized only in analysis of Alternative Plan A, which is presented solely to measure additional costs of various planning scenarios.

4.4.3 Virginia in RGGJ Commodity Forecast The Virginia in RGGI commodity forecast includes New Jersey and Virginia as new participants in RGGI (Virginia in 2021), along with the nine existing RGGI states. The key assumptions regarding market structure and the use of an integrated, internally-consistent fundamental based modeling methodology remain consistent with those utilized in the other commodity forecast except that the carbon program modeled is RGGI and that there is no federal program addressing CO2 reduction targets.

RGGI utilizes an emissions containment reserve (ECR) as a trigger to limit downward pressure on the CO2 allowance price. The ECR price trigger starts at $6 in 2021 and increases at 7%

annually. If triggered, the ECR withholds up to 10% of the auction budget of states opting to implement the ECR (the ECR is modeled for all states but Maine and New Hampshire). In the 63

Virginia in RGGI commodity forecast, the RGGI prices are forecasted to be below the ECR trigger price and, therefore, inICFs model the emission budget (cap) is reduced by 10% in the years it is triggered. Even with the 10% reduction in allowances, tire market clearing prices remain below the ECR trigger prices. The reason for the lower clearing prices is that the CO2 allowance supply in this case is driven not by coal generation displacement, but by the state policies (in member states) that continue to drive non-fossil generation growth. Carbon reductions are being driven by the high RPS targets in many of the RGGI states, with several states targeting 50% renewable or clean energy standards by the 2030 to 2035 timeframe, and further increasing beyond those years. Additionally, offshore wind procurements are modeled in 7 of the 11 RGGI states (z'.e., RI, VA, CT, MA, MD, NJ, NY), providing added clean energy in the RGGI region and displacing fossil resources. As noted earlier, the Virginia in RGGI commodity forecast does not include the regional effects of VCEA on RGGI allowance prices; therefore, the forecast does not account for the additional carbon reductions associated with the revised RPS requirements in Virginia.

4.4.4 High-Case Federal CO2 Commodity Forecast The High-Case Federal CO2 commodity forecast addresses a scenario with a more stringent CO2 regulatory environment implemented nationwide. In this commodity forecast, CO2 regulation is addressed as a legislative approach to a national mass cap-and-trade program that begins in 2028 and targets an approximately 80% reduction from 2005 sector emissions by 2050. This target is similar to CO2 reduction levels being discussed by several states, and it is consistent with what was proposed under the Waxman-Markey Bill in 2009. Load under this scenario increases relative to the other cases because of state electrification efforts. The tightening carbon cap and higher load compared to the No CO2 Tax commodity forecast leads to higher renewable buildout and lower nuclear retirements. The high case includes existing and new sources under a national cap and trade program. This representation assumes that all states participate in the program except for California, which maintams its state-specific program. In this commodity forecast, IGF assumed that Virginia does not join RGGI. Compared to the Mid Case Federal CO2 with RGGI in Virginia commodity forecast, the power prices are lower in the near term, while post-2025 all hours prices are roughly 36% higher on average. The higher power price is driven by CO2 allowance price in excess of Si 00/ton by 2050.

4.4.5 Capacity Price Forecasting Methodology In most wholesale electricity markets, electric power generators are paid for providing:

Energy: the actual electricity consumed by customers;

Capacity: standing ready to provide a specified amount of electric energy; and

Ancillary Services: a variety of operations needed to maintain grid stability and security, including frequency control, spinning reserves, and operating reserves.

The purpose of a mandatory capacity market is to encourage new investments where they are most needed on the grid. PJMs capacity market (/.e., the RPM), ensures long-term grid reliability by procuring the appropriate amount of supply- and demand-side resources needed to meet predicted peak demand in the future. In a capacity market, utilities or other electricity

suppliers are required to purchase adequate resources to meet their customers demand plus a reserve amount. Suppliers offer supply- or demand-side resources into the capacity market at a price. To the extent the supply offer clears the market, then those capacity resources are obligated to supply energy (or reduce energy in the case of demand-side resources) when dispatched, or pay penalty fees.

The RPM is designed to provide financial incentives to attract and maintain sufficient capacity to meet the load demands anticipated by PJM; in concept, revenues from energy and ancillary services plus capacity payments should equal the amount necessary to attract new entry. Parallel to the actual market construct, forecasting of long-term capacity prices is based on estimating the amount of capacity revenue a generation resource requires, in addition to revenue from energy and ancillary sendees. The capacity revenue forecast represents the amount by which a resources cost exceeds its forecasted wholesale electricity market revenues. The basic concept utilized in forecasting is that in order to maintain appropriate reserve levels to assure reliable electric service, generating resources will require sufficient revenue to cover expenses and, when necessary, support the required new investment. When wholesale market energy and ancillary services revenue is not sufficient, then capacity revenues are required to fill this gap.

When forecasting capacity prices over long periods, it is reasonable to assume markets will move toward equilibrium and will provide sufficient revenue to support existing resources and incent investment in new resources that require equity returns on the capital expended for development and construction of the new resource. In markets with excess capacity, existing resources generally set the capacity price. These resources require revenue to cover only operating expenses and do not include equity returns or significant going forward capital expenditures.

Because of this, the capacity price tends to be lower in markets with excess capacity. However, over the long term, the market is expected to move to an equilibrium status where sufficient revenues are provided, which assures adequate resource capacity and encourages market efficiency. Note that while long-term forecasts tend toward an equilibrium pricing, it is expected that actual markets will continue to follow an up-and-down cycle that moves around equilibrium levels. Long-term forecasts for capacity focus on the equilibrium level pricing rather than attempting to estimate the cychcal movement.

For these reasons, the issues surrounding the FERC MOPR Order described is Section 1.6.1 do not change the methods used to develop long-term capacity price forecasts.

4.4.6 REC Price Forecasting Meth odology Together with IGF, the Company developed a revised methodology for forecasting REC Tier 1 prices from what was presented in the 2018 Plan. A white paper describing the forecasting methodology and providing details related to the revised methodology for forecasting REC prices is provided in Appendix 4Q. The white paper also includes a section that illustrates the impact on REC prices if the federal tax credits for production tax credits and investment tax credits are extended indefinitely. Figure 4.4.6.1 provides a graph of the REC price forecast for die Virginia in RGGI commodity forecast.

M Figure 4.4.6.1 Tier 1 REC Forecast Comparison

Virginia in RGGI REC Forecast The shape of the REC price forecast illustrated in Figure 4.4.6.1 reflects the fundamental changes occurring in the PJM states RPS programs and the advancement of state-sponsored offshore wind development. The early price rise forecasted for Tier 1 RECs reflect recently enacted increases in RPS programs in several PJM states. These same states have implemented offshore wind procurement programs designed to supply large amounts of RECs to meet the expanding RPS requirements. The curve through 2030 reflect these fundamental developments, with prices rising as demand for RECs increase with the expanding RPS requirements, but then declining sharply as the large amounts of offshore wind procured by the states provide ample amounts of RECs to meet demand. As noted earlier, these resul ts do not include the regional impacts of the VCEA.

4.5 Virginia Renewable Portfolio Standard Assumptions In Virginia, the VCEA established a mandatory RPS as discussed in Section 1.2. In this 2020 Plan, the Company optimized the model for each Alternative Plan according to its typical process. The Company then determined whether additional renewable resources were needed to meet the annual RPS requirements, and added additional renewable resources (either Company-build or PPA) as needed. The Company assumed that it could construct or purchase renewable resources at less than the $45/MWh deficiency payment in the VCEA.

66

4.6 Solar-Related Assumptions 4.6.1 Solar Capacity Factor For Alternative Plans A and D, the Company modeled future solar resources using a capacity factor of 19%, which is the average capacity factor of the Companys owned solar tracking fleet in the Commonwealth for the most recent three-year period (i.e., 2017, 2018, 2019). For Plans B and C, the Company modeled future solar resources using a design solar capacity factor of 25%

based on average modeled output from solar tracking resources.

4.6.2 Solar Company-Build vs. PPA For solar resources in Alternative Plan A, the Company allowed the model to select either Company-build cost-of-service solar or third-party PPA solar limited at 480 MW per year, which is an assumption on the amount of solar generation available each year. For Alternative Plans B through D, the Company modeled solar PPAs as 35% of the solar generation capacity placed in service over the Study Period. These Alternative Plans exceed the 480 MW per year modeling constraint to meet the requirements of the VCEA.

4.6.3 Solar Interconnection and Integration Costs The integration of intermittent solar generation into the electric grid involves mul tiple considerations. Solar generation must first be physically interconnected to the electric grid, either at the transmission or distribution level. The developer of a solar generating facility typically pays the costs to physically interconnect the resource, including any upgrades required near the point of interconnection to assure grid stability. The Company refers to these costs in this 2020 Plan as solar interconnection costs. As increasing volumes of solar generation are interconnected to the grid, additional system-level upgrades must be made by the Company to address grid stability and reliability issues caused by the intermittent nature of these resources.

The Company refers to the costs related to these upgrades in this 2020 Plan as solar integration costs. All of these costs are incorporated in the NPV for Total System Costs shown in Figure 2.4.1.

In this 2020 Plan, three different categories of solar resources were available in PLEXOS:

(i) Company-build solar; (ii) solar PPAs; and (iii) small-scale solar (i.e., less than 3 MW). The Company assumed interconnection cost of $94/kW for Company-build solar and $125.50/kW for small-scale solar. The Company assumed $0 in interconnection costs for solar- PPAs because the PPA price from the developer includes interconnection costs.

For solar integration costs, this 2020 Plan includes three categories of system upgrades costs based on different issues caused by the intermittent nature of solar resources:

Transmission Integration Costs: These costs represent physical enhancements to the transmission system needed to resolve low voltage and thermal conditions caused by 67

integrating significant volumes of solar generation. Figure 4.6.3.1 shows the incremental

[=4 integration costs as solar generation is added to the system. m Generation Re-dispatch Costs: This category represents costs resulting from real-time © variability of load and generator availability compared to day-ahead forecasted load and generator availability. The analysis the Company performed resulted in the cost curve shown in Figure 4.6.3.3, which the Company used to add a specific amount per MWh of solar generation by year.

Regulating Reserves Costs: This category represents ancillary payments the Company must make to resources to ensure that the system can balance intra-day or intra-hour differences in load and generation. Figure 4.6.3.4 shows the net cost to customers of regulating reserves included in each Alternative Plan.

The sections below explain the analyses performed for each of these three categories. While the Company has refined its methods to estimate the solar integration costs compared to prior Plans, more analysis is required in order to fully assess the necessaiy grid modifications and associated costs of integrating increasing amounts of solar generation.

Transmission Integration Costs The transmission integration costs were assessed by performing a steady state power flow analysis where a total of 7,000 MW of solar generation is present on the transmission grid.

Within this analysis, all possible interconnection locations and sizes were selected from the PJM generation interconnection queue to accurately reflect the behaviors of solar developers. Ten different scenarios were considered; the sites that make up the 7,000 MW were a randomly selected subset from the total list of sites from the PJM queue.

Using these ten different solar- cases, the PSSE power flow model were assessed under 2022 PJM light load demand conditions. This analysis included the retirement of certain existing generation units. Additional assumptions included maximum solar- generation output (with reactive power support of +/- 0.95 power factor), and displacement of generation from other Company-owned facilities.

The results of these modeling cases identified several low voltage and thermal violations that would require physical enhancements to the Companys transmission system. As noted, this analysis was conducted assuming the addition of 7,000 MW of solar generation. In this 2020 Plan, all Alternative Plans include the addition of significantly more solar generation. Figure 4.6.3.1 shows the incremental integration costs assumed for Company-build solar as additional solar generation is added to the system.

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Figure 4.6.3.1 - Total Solar Interconnection and Integration Costs Solar (COS) MW Total Cost Comments Less than 7,000 $ 94 /kW Interconnections costs 7,000 -15,000 $159 /kW Additional transmission integration costs 15,001-25,000 $224 /kW Additional transmission integration costs 25,001-35,000 $289 /kW Additional transmission integration costs 35,001-45,000 $354/kW Additional transmission integration costs Future Plans will expand on this analysis by studying the addition of more significant volumes of solar generation. The Company will also expand this analysis to consider dynamic system conditions and other sensitivity analyses that model sudden fluctuations of solar generation output and the need for other grid services described in Section 7.5.

Generation Re-disnatch Costs Re-dispatch generation costs are defined in this 2020 Plan as additional costs that are incurred due to the unpredictability of events that occur during a typical power system operational day.

Historically, these types of events were driven by load variations due to actual weather that differs from what was forecasted for the period in question. Most power system operators assess the generation, needs for a future period, typically the next day, based on load forecasts and commit a series of generators to be available for operation in that period. These committed generators are expected to operate in an hour-to-hour sequence that minimizes total cost. Once within that period, however, actual load may vary from what was planned and the committed generators may operate in a less than optimal hour-to-hour sequence. The resulting additional costs due to real time variability are known as re-dispatch costs.

As more intermittent generationlike solaris added to the grid, additional uncertainty about re-dispatch costs is added due to factors such as unpredictable cloud cover or changes in wind speed. In order to assess the resulting re-dispatch costs, the Company performed a simulation analysis to determine the cost impact on generation operations at varying levels of solar penetration.

To study the effects of these intermittent resources, the Company first performed a historical 20-year irradiance study (1998 to 2017) of 22 locations within the PJM region plus North Carolina and South Carolina using the National Solar Radiation Database (NSRDB) provided by the National Renewable Energy Laboratory (NREL). Based on the irradiance data in the NSRDB, for each studied location, the Company produced a base hourly solar generation profile along with a set of 200 different hourly solar simulation profiles.

To perform its generation re-dispatch cost analysis, the Company utilized the Aurora planning model with a simulation topology of the Eastern Interconnection. The results from the Aurora model captured not only the DOM Zone hourly prices interactively but also the potential system cost impacts from intermittent resources outside the Companys service territory. This is an improvement over what was provided in tire 2018 Plan.

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m The Company determined scenarios by assuming different levels of the CO2 prices using ^

assumptions provided by ICF, and two different levels of solar penetration and wind resources by 2030: (i) 2 GW of solar with 852 MW of offshore wind and (ii) 6 GW of solar with 2.5 GW <3 of offshore wind. The renewable penetration level for other states in the Eastern Interconnection ^

was set to a level that met the requirements in the applicable state RPS programs. For each scenario, the Company performed a base case Aurora simulation by using the base hourly solar generation profiles, and performed an additional 200 simulations by using the unit commitment decision determined by the base case and applying different hourly solar simulation profiles from the irradiance study to re-optimized the system cost. The total system cost for each simulation was compared to the base case system cost. This delta system cost is composed of the respective differences in fuel cost, variable O&M cost, emission cost, and purchase/sale cost. The re dispatch cost is the delta of the system cost divided by the total solar generation. The analysis results are shown in Figure 4.6.3.2.

Figure 4.6.3.2 - Re-Dispatch Analysis Results 2030 Re-dispatch Cost: Solar 2 GW + Offshore Wind 8S2 MW 2030 Re-dispatch Cost: Solar 6GW+ Offshore Wind 2.S GW

$1000

$1000 f Max

$*00 f $100

$<<co \ $000 I U.m * $3.06 $4 00

-5237" e

>>.oo < u.oo I 23 Percrntlli* loSr S0J7 toco t $0.00 23 PeiCrnfll*

Min wri t Mill ijacq CvtMn Prit*:$44S/ Ton Cvbon $445 / Ton The analysis shows that, under the same level of the solar penetration, higher CO2 prices result in slightly higher re-dispatch costs along with slightly higher cost volatility. The results also show, however, that as solar penetration increases, the overall re-dispatch costs decrease. This is because higher solar penetration lowers the DOM Zone energy hourly price, which results in lower re-dispatch costs.

Due to the scale of the simulation, the Company only performed the analysis for the study year of 2030. Using this data, tire Company constructed a generation re-dispatch cost curve for the Study Period, as shown in Figure 4.6.3.3. These values were used as a variable cost adder for all solar generation evaluated in this 2020 Plan.

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© m

Figure 4.6.3.3 - Generation Re-dispatch Cost Results (S/MWh') UFi p

m

$3.00 © Even the 6 GW solar penetration level assessed in this analysis was significantly lower than the volume of solar generation added in all Alternative Plans. In future analyses, the Company will study the addition of more significant volumes of solar generation. The Company will also study the possibilities of incorporating the sensitivities of other intermittent resources, such as onshore and offshore wind generating units within the study footprint.

Regulating Reserve Costs Regulating reserves are defined in this 2020 Plan as additional reserves needed to balance the uncertainty of forecast errors of net load that occur during a typical power system operational day. These reserves exclude contingency reserves, which are defined as the loss of a major power system generation or transmission system asset. Within the PJM market, these regulating reserves are an ancillary service, die cost of which is charged to customers. Revenues collected for this ancillary service are paid to resources available to supply (or reduce) additional energy to correct forecast errors. Unlike contingency reserves, regulating reserves are needed to either increase (up reserves) or decrease (down reserves) generation in any given operational hour.

These reserves also differ from re-dispatch costs; they are paid to the resource whether they are used or not during the operating hour. The regulating reserve costs ensure that the transmission system has adequate resources available to handle forecast uncertainty. The system pays for regulating reserves so that it has the capability to quickly re-dispatch. In contrast, the operating costs to dispatch these regulating resources (to mitigate forecast errors and stabilize the transmission system) are part of re-dispatch costs.

Historically, the level of regulating reserves was primarily driven by the uncertainty associated with load during any given operating day. The intenuittent nature of solar and wind generation adds to this uncertainty. Accordingly, the levels of regulating reserves will need to increase to compensate for this added uncertainty.

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y a

Ir5 A variety of resources can be used to address system uncertainty: energy storage, unscheduled © combustion turbine capacity, unscheduled duct burner capacity (on scheduled combined cycle <© units), intraday purchases and sales, and interruptible load. ua H

In order to assess the increase of regulating reserves that will result from increasing volumes of solar generation, the Company utilized the Electric Power Research Institute (EPRl) Dynamic Assessment and Determination of Operating Reserves (DynADOR) tool. This tool calculates operating reserves based on correlations to other variables (e.g.: forecasted generation, time of day) and can be used to evaluate solar, wind, and load variations separately and in combination.

For the purposes of this study, the Company used solar data from the Morgans Corner Solar Facility and wind speed data from Norfolk Airport. The studys timeframe was three years, from April 20.16 to March 2019. Norfolks surface wind speeds were adjusted by a constant wind gradient coefficient to achieve the 42% capacity factor observed in NRELs 2008 to 2012 Wind Tool Kit study of a point located in the Virginia Wind Energy Area. Forecasted wind speeds at 4:00 PM the previous day were used to simulate a day-ahead forecast of wind energy.

Using the solar and wind data described above, the DynADOR tool was set to determine the level of operating reserves needed for 1,000 MW (nameplate) of solar capacity and 1,000 MW (nameplate) of wind capacity' each at a 95% confidence interval. This analysis assumed no diversity benefit from the combination of solar and wind, nor any diversity benefits from geography spread. These model results were then applied to the PJM solar and wind renewable expansion plans included in the ICF Virginia in RGGI commodity forecast for each, year of the Study Period. This resulted in an hourly level of regulating services needed for each year of the Study Period.

One of the key observations from this study was the benefit during daylight hours of having both solar and wind generation. Because the forecast errors of solar and wind were not highly correlated, the operating reserves were significantly lower in combination than when evaluated independently and added together. This demonstrates the value of having a diverse portfolio of intermittent generation (in addition to the inherent diversity of geographic distribution).

Accordingly, the next phase of this study will broaden the impact of increasing renewables generation to assess the benefit of diversity at the PJM level. Solar and wind hourly data from NREL were used to estimate the hourly benefit of technology and geographic diversity throughout PJM. This data was then used to calculate an hourly PJM diversity factor that was multiplied against the combined total of solar and wind hourly regulating reserves, which results in a lower overall hourly regulating reserve volume.

Once the volume of solar and wind (in MW) was determined as described above, the next phase of the analysis was to determine a market price for these reserves. Because of its historical structure that resulted in more definitive regression results, the Company chose the PJM Day-Ahead Secondary Reserves market as a basis to forecast a regulating reserve price. Participation in this market is restricted to dispatchable resources (generation, energy storage, and interruptible load) that are not scheduled in the day-ahead energy market. This market excludes intermittent resources, nuclear, and run-of-river hydro units. The resource must be able to bring the bid 72

m energy on tire grid within 30 minutes of notification. This market varies in demand and pricing kp

^

through the year. In 2019, this market averaged $0.39/MW, but hours ranged from $0.00 to over @

$20.00. Regression was used on these hourly results to shape a relationship between incremental '© reserves demand (net of incremental reserves supply) and a forecasted market price. This p*

regulating reserve price construct was then applied to the hourly regulating reserve volumes to assess the annual costs of incremental regulating reserves resulting from increased intermi ttent renewable build within the PJM region.

The results of this analysis reflect the hourly (per MW) cost of regulating reserves gradually increases from $0.61 in 2021 to $20.18 in 2045. This occurs because the rate that PJM is forecasted to increase the need for regulating reserves (driven by the level of renewables build) grows more quickly within PJM than the projected addition of resources that provide regulation reserves in PJM. The forecasts of resource additions (both renewable and regulating resources) is based on ICF projections in states other than Virginia. Virginia resource additions are based on the projections in this 2020 Plan for the Company; for Appalachian Power Company and other sellers of electric power in Virginia, the projections assume solar and wind resource additions according to the RPS requirements for Appalachian Power Company.

From a Company perspective, regulating costs will be incurred when the regulating costs to serve the Companys load exceed the revenue received from PJM for the Company units that supply this ancillary service. Figure 4.6.3.4 shows the net cost to customers included in this 2020 Plan. The Company will continue its analysis of regulating reserves needed for system stability incorporating technological advancements that may mitigate these potential costs, and will present its results in future Plans and update filings.

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Figure 4.6.3.4 - Company Net Regulating Reserves Cost of Market Purchases ('$000.000')

Year Plan A Plan B Plan C Plan D Note: Zero values indicate that the DOM LSE has adequate regulating reserves to supply reserve requirements from the LSEs load and renewable generation portfolio that year.

4.7 Storage-Related Assumptions As discussed further in Section 5.5, two types of energy storage resources were available in the PLEXOS modelbattery energy storage systems and pumped storage. For BESS, the Company used cost estimates from the request for proposals for the recently-approved BESS pilot at Scott Solar Facility. This BESS is based on a 4-hour discharge configuration. For pumped storage, the Company used preliminary internal cost estimates for a large pump storage facility to be located in southwest Virginia.

In Plans B through D, the Company set constraints requiring the PLEXOS model to select 2,700 MW of energy storage by 2035, consistent with the VCEA, including 300 MW of pumped storage. Third-party owned energy storage will make up 35% of the 2,700 MW. Given the lack 74

of sufficient pricing for storage PPAs, however, the Company did not differentiate between T S §) S Company-owned and third-party-owned energy storage resources in this 2020 Plan.

SEH @

4.8 Gas Transportation Cost Assumptions Natural gas is largely delivered on a just-in-time basis, and vulnerabil ities in gas supply and transportation must be sufficiently evaluated from a planning and reliability perspective.

Mitigating strategies such as storage, firm fuel contacts, alternate pipelines, dual-fuel capability, access to multiple natural gas basins, and overall fuel diversity all help to alleviate this risk.

There are two types of pipeline transportation service contracts: firm and interruptible. Natural gas provided under a firm service contract is available to the customer at all times during the contract term and is not subject to a prior claim from another customer. For a firm service contract, the customer typically pays a facilities charge representing the customers share of the capacity construction cost and a fixed monthly capacity reservation charge. Interruptible service contracts provide the customer with natural gas subject to the contractual rights of firm customers. The Company currently uses a combination of both firm and interruptible service to fuel its natural gas-frred generation fleet.

The Company included natural gas transportation costs in its modeling. The Company assumed firm transportation service for CCs and interruptible transportation service for CTs. The Company assumed interruptible transportation service for CTs because these peaking resources typically operate with less than 20% capacity factors and because they are typically equipped with on-site oil backup.

Pipeline deliverability can affect electrical system reliability. A physical disruption to a pipeline or compressor station can interrupt or reduce the flow pressure of gas supply to multiple EGUs at once. Electrical systems also have the ability to adversely affect pipeline reliability. For example, the sudden loss of a large efficient generator can force numerous smaller gas-fired CTs to be started in a short period of time. This sudden change in demand may cause drops in pipeline pressure that could reduce the quality of service to other pipeline customers, including other generators. Electric transmission system disturbances may also interrupt service to electric gas compressor stations, which can disrupt the fuel supply to electric generators.

4.9 Least-Cost Plan Assumptions Alternative Plan A presents a least-cost plan using assumptions required by the SCC.

Specifically, Plan A uses the PJM Load Forecast adjusted for only existing and proposed energy efficiency as discussed in Section 4.1.3, and uses the No CO2 Tax commodity forecast as discussed in Section 4.4.2. For Plan A, the Company did not force the model to select any specific resources, and did not exclude any reasonable resource options. The potential unit retirements shown in Plan A are those that are financially at risk for retirement based on market conditions.

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4.10 VCEA-Related Assumptions The Company modeled the requirements and targets contained in the VCEA when it passed the General Assembly on March 5, 2020, as this was the best available information at the time the Company completed its modeling. Virginia Governor Northam signed the VCEA into law widiout amendment on April 11, 2020. In addition to the VCEA, the Company modeled other relevant legislation from the 2020 Regular Session of the Virginia General Assembly (i) related to RGGI as discussed in Section 1.3 and (ii) related to the aggregation pilot as discussed in Section 1.10.

Chapter 5: Generation - Supply-Side Resources This chapter provides an overview of the Companys existing supply-side generation, the generation resources under construction or development, and the Companys analysis of future supply-side generation. This chapter also provides a discussion of challenges related to the development of significant volumes of solar resources.

5.1 Existing Supply-Side Generation 5.1.1 System Fleet Figure 5.1.1.1 shows the Companys 2019 capacity resource mix by unit type.

Figure 5.1.1.1 - 2019 Capacity Resource Mix by Unit Type Due to differences in operating and fuel costs of various types of units and in PJM system conditions, the Companys energy mix is not equivalent to its capacity mix. The Companys generation fleet is dispatched by PJM within PJMs larger footprint, ensuring that customers in the Companys service territory receive the economic benefit of all resources in the PJM power pool regardless of the source. PJM dispatches resources within the DOM Zone from the lowest cost units to the highest cost units, while maintaining its mandated reliability standards. Figures 5.1.1.2 and 5.1.1.3 provide the Companys 2019 actual capacity and energy mix.

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m Figure 5.1.1.2 - 2019 Actual Capacity Mix

Coal Nuclear o Gas u Oil Water Solar o Biomass a Pump Storage Purchases Appendices 5A through 5E provide basic unit specifications and operating characteristics of the Companys supply-side resources, both owned and contracted. Appendix 5F provides a summary of the existing capacity by fuel class. Appendices 5G and 5F1 provide energy generation by type and by the system output mix. Appendix 51 provides a list of all Company-build or third-party PPA solar and wind generating facilities placed in service, under construction, or under development since July 1, 2018. Appendix 50 provides a list of renewable resources, and Appendix 5P provides a list of potential supply-side resources.

Appendices 5Q and 5R present the Companys summer capacity position and seasonal 78

capability, respectively. Appendix 5S provides the construction cost forecast for Alternative Plan B.

5.1.2 Company-Owned System Generation The Companys existing system generating resources are located at multiple sites distributed throughout its service territory, as shown in Figure 5.1.2.1. This diverse fleet of 90 generation units includes 4 nuclear, 8 coal, 9 CCs, 40 CTs, 3 biomass, 2 heavy oil, 6 pumped storage, 14 hydro, and 4 solar with a total summer capacity of approximately 20,063 MW.

Figure 5.1.2.1 - Company Generation Resources Possum Point Remington North Anna Ladysmith Bear Garden Scott Yorktown Surry Woodland Coastal Virginia Offshore Wind Elizabeth River Spring Grove I Colonial Trail West Chesterfield Hopewell Southampton Roanoke Rapids The Company currently owns and operates 667 MW of renewable resources, including solar, hydro, and biomass, with an additional 210 MW (nameplate) under construction. The Company also owns and operates four nuclear facilities (3,348 MW), providing significant zero-carbon generation for its customers.

79

w Over tlie past two decades, the Company has made changes to its generation mix that have ^

significantly improved environmental performance. These changes include the retirement of @

certain units, the conversion of certain units to cleaner fuels, the conversion to dry ash handling, © and the addition of air pollution controls. This strategy has resulted in significant reductions of ^

air pollutants such as NOx, SO2, and mercury, as shown in Figure 5.1.2.2, and has also reduced ^

the amount of coal ash generated and the amount of water used.

Figure 5.1.2.2 - Company Annual Reduction in Emissions by Percent The Company develops a comprehensive GFIG inventory annually. The Companys direct CO2 equivalent emissions (based on ownership percentage) were 22.1 million metric tons in 2019 compared to 24.6 million metric tons in 2018. The Company has been a leader in reducing CO2 emissions through retiring certain units; building additional efficient and lower-emitting natural gas-fired power generating sources and carbon-free renewable energy sources, such as solar; and maintaining its existing fleet of non-emitting nuclear' generation. As shown in Figure 5.1.2.3, from 2000 through 2019, the Company has reduced the CO2 emissions in tons from its power generation fleet serving Virginia jurisdictional customers by 38%, while power production has increased by 1.7%.

80

to Figure 5.1.2.3 - Company CO2 Mass Reductions versus Net Generation Uri 90 a 80 70 c

0 60 1

50 52 40 30 CO.. Emisisons: -3854change since 2000 = Net M Whs: 1754 increase since 2000 The Companys integrated business strategy has also resulted in significant reduction in CO2 emission intensity. CO2 intensity is the amount of emissions per MWh delivered to customers.

This calculation includes emissions from any source used to deliver power to customers, including Company-owned generation, NTJGs, and net purchased power. As shown in Figure 5.1.2.4, customer impact CO2 intensity has decreased by 43% since 2000.

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Figure 5.1.2.4 - Customer Impact CO2 Intensity 1,400

£

^ ^^^ ^ ^ ^^ ^^ ^^ ^^

--43% Customer Impact C02 Intensity (Ibs/MWh) 5.J.3 Non-Utility Generation A portion of the Companys load and energy requirement is supplemented with contracted NUGs. The Company has existing contracts with fossil-burning and renewable behind-the-meter NUGs for capacity of approximately 812 MW (nameplate).

For modeling purposes, the Company assumed that its NUG capacity would be available as a firm generating capacity resource in accordance with current contractual terms. These NUG units also provide energy to the Company according to their contractual arrangements. At the expiration of these NUG contracts, these units will no longer be modeled as a firm generating capacity resource. The Company assumed that NUGs or any other non-Company owned resource without a contract with die Company are available to the Company at market prices; therefore, the Companys optimization model may select these resources in lieu of other Company-owned, sponsored supply, or demand-side resources should the market economics dictate. Although this is a reasonable planning assumption, parties may elect to enter into future bilateral contracts on mutually agreeable terms. For potential bilateral contracts not known at this dme, die market price is the best proxy to use for planning purposes.

5.2 Evaluation of Existing Generation The Company continuously evaluates various options with respect to its existing fleet, cognizant of environmental regulations and other policy considerations.

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5.2.1 Retirements un As discussed in Section 1.2, the VCEA mandates the retirement of carbon-emitting generation on © a specific schedule unless the Company petitions and the SCC finds that a given retirement ^

would threaten the reliability and security of electric services: ^

Chesterfield Units 5 and 6 (coal) and Yorktown Unit 3 (heavy oil) by 2024;

Altavista, Hopewell, and Southampton (biomass) by 2028; and

All remaining generation units that emit CO2 as a byproduct of combustion by 2045.

Separate from these mandates, and consistent with prior Plans, the Company completed a unit evaluation economic analysis focused on coal-fired, heavy-oil fired, and large combined cycle Company generation facilities under market conditions.

Global assumptions included potential carbon regulations as well as market forecasts consistent with four ICF commodity forecast scenarios: No CO2 Tax, Mid-Case Federal CO2 with Virginia in RGGI, Virginia in RGGI and Fligh-Case Federal CO2.

A combination of PLEXOS production-cost modeling software and Excel models were used to calculate a unit NPV to customers over the next ten years. Unit NPVs were derived by comparing the total unit costs, including O&M and capital, to the total forecasted unit benefits, consisting of energy and capacity revenues. Negative NPV results indicated an economic benefit of unit retirement to customers compared to continued operations of the unit in the PJM market.

The results of the analysis are included in Figure 5.2.1.1. In general, it can be concluded that the Companys coal-fired power plants located in Virginia continue to face pressure due to unfavorable market conditions and carbon regulations. Coal-fired generating facilities Chesterfield Units 5 and 6 and Clover Units 1 and 2 had negative NPVs under all four scenarios, including No CO2 Tax. Mount Storms coal-fired Units 1 through 3 showed positive NPVs in all four cases with a higher upside potential under Virginia in RGGI and the No CO2 Tax scenarios.

Heavy oil-fired power station Yorktown Unit 3 had negative NPVs in all four scenarios.

Figure 5.2.1.1 - Retirement Analysis Results Based on the above results and other factors, including but not limited to power prices and the retirement-related mandates in the VCEA, the Company anticipates retiring Yorktown Unit 3 and Chesterfield Units 5 and 6 in 2023. Other than these units, inclusion of a unit retirement in this 2020 Plan should be considered as tentative only. The Company has not made any decision 83

regarding the retirement of any generating unit other than Yorktown Unit 3 and Chesterfield Units 5 and 6. The Companys final decisions regarding any unit retirement will be made at a future date. Appendix 5 J lists the generating units for potential retirement.

5.2.2 Uprat.es and Derates Efficiency, generation output, and environmental characteristics of units are reviewed as part of the Companys normal course of business. Many of the uprates and derates occur during routine maintenance cycles or are associated with standard refurbishment. However, several unit ratings have been and will continue to be adjusted in accordance with P.TM market rules and environmental regulations. Appendix 5K provides a list of historical and planned uprates and derates to the Companys existing generation fleet.

5.2.3 En vironmental Regulations There are a number of final, proposed, and anticipated EPA regulations that will affect certain units in the Companys current fleet of generation resources. Appendix 5L shows regulations designed to regulate air, solid waste, water, and wildlife. For further discussion on significant developments to environmental regulation, see Sections 1.3 and 1.11.

5.3 Generation Under Construction The Company currently has four generation projects under construction for which the SCC has issued a certificate of public convenience and necessity: (i) the CVOW demonstration project; (ii) Spring Grove 1 Solar Project; (iii) Sadler Solar Project; and (iv) the Battery Energy Storage System at Scott Solar Facility. Appendix 3A provides details on each project.

5.4 Generation Under Development The Company currently has solar, offshore wind, pumped storage, and CT generation projects under development. The Company is also pursuing subsequent license extensions for its nuclear facilities. The following sections provide details on these projects, as does Appendix 3B.

The Company has paused material development activities for North Anna 3 following receipt of the combined operating license (COL) in 2017. The Company is currently incurring minimal capital costs associated with North Anna 3 specific to the administrative functions of maintaining the COL.

5.4.1 Solar The Company issued a request for proposal (RFP) for new solar and wind resources in August 2019. The Company is currently evaluating the results of that RFP and intends to bring new Company-build and PPA resources before the SCC for approval as part of its annual plan regarding the development of solar, onshore wind, and energy storage required by the VCEA.

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M 5.4.2 Offshore Wind y=a

The CVOW demonstration projectthe Mid-Atlantics first offshore wind project in a federal lease areais under construction with a targeted in-service date by the end of 2020. This demonstration project is an important first step toward offshore wind development for Virginia and the United States. Along with clean energy, it is providing the Company valuable experience in permitting, constructing, and operating offshore wind resources, which will help inform utility-scale development of the adjacent 112,800 acre wind lease area.

As discussed in Section 1.2, the VCEA specifies that the construction or purchase of up to 5,200 MW of offshore wind capaci ty is in the public interest. In September 2019, the Company fi led with PJM to interconnect more than 2,600 MW of offshore wind capacity by 2026 (CVOW commercial project), enough to power more than 650,000 homes during peak winds.

On January 7, 2020, the Company selected Siemens Gamesa Renewable Energy as the preferred turbine supplier for the CVOW commercial project with the intent to provide their latest state-of-the-art wind turbine, based on its proven Offshore Direct Drive platform. Ongoing efforts of tins project include ocean survey work that will be performed in 2020 to support the development of the Construction and Operations Plan, which is expected to be submitted to the Bureau of Ocean Energy Management in late 2020. Pending regulatory approval, the CVOW commercial project is expected to be in-service by the end of 2026.

5.4.3 Pumped Storage Pumped storage hydroelectric power is a mature proven storage technology. It can also serve as a system-stabilizing asset to accommodate the intennittent and variable output of renewable energy sources such as solar and wind. Virginia Senate Bill No. 1418 became law effective on July 1,2017, and supported construction of one or more pumped hydroelectric generation and storage facilities that utilize on-site or off-site renewable energy resources as all or a portion of tlieir power source .. . located in the coalfield region of the Commonwealth. On September 6, 2017, the Company filed a preliminary permit application with FERC for a location in Tazewell County, Virginia. This application was approved on December 11, 2017, and the Company is continuing to conduct feasibility studies for a potential pumped storage facility at the Tazewell County site.

5.4.4 Extension of Nuclear Licensing An application for a subsequent license renewal is allowed during a nuclear plants first period of extended operationthat is, in the 40 to 60 years range of its service life. Surry Units 1 and 2 entered into that initial license renewal period in 2012 and 2013, respectively. North Anna Units 1 and 2 entered or will enter into that period in 2018 and 2020, respectively. The Company has 85

m a

continued to track the preliminary cost estimates for the extension of the nuclear licenses at its h*

Surry and Morth Anna Units.

renewal for its two nuclear units (1,676 MW total) at Surry in order to operate an additional 20 years, increasing their operating life from 60 to 80 years. As with other nuclear units, Surry was originally licensed to operate for 40 years and then renewed for an additional 20 years. Absent subsequent license renewal approval, the existing licenses for Surry Units 1 and 2 will expire in 2032 and 2033, respectively. In support of the application development, the NRC finalized guidance documents in early July 2017, related to developing and reviewing subsequent license renewal applications. The Surry subsequent license renewal application was submitted to the NRC on October 15, 2018, in accordance with Title 10 of the Code of Federal Regulations (CFR) Part 54.

The Suriy subsequent license renewal application was subsequently declared technically sufficient and available for docketing by the NRC on December 10, 2018, which began the safety and environmental reviews required for the renewed licenses. Several NRC audits and public meetings have been conducted during both the safety and environmental reviews in late 2018 and 2019 related to this licensing action. The NRC staff has asked requests for additional information (RAIs) during this review period seeking clarification or additional action to be taken by the Company prior to entering the subsequent period of operation. These environmental and safety RAIs have been addressed to the satisfaction of the NRC staff.

As a result, the NRC issued the Final Safety Evaluation Report (SER) for Surry Power Station on March 9, 2020. On the basis of its review of the Surry subsequent license renewal application, the NRC staff determined that the requirements of 10 CFR 54.29(a) have been met for the subsequent license renewal of Surry Units 1 and 2. The NRC also issued the Final Supplemental Environmental Impact Statement (FSEIS) on April 6, 2020. The NRC staffs conclusion was that the adverse environmental impacts of license renewal for Surty are not so great that preserving the option of license renewal for energy-planning decision makers would be unreasonable.

The Advisory Committee on Reactor Safeguards (ACRS) Full-Committee meeting was conducted on April 8, 2020, with unanimous approval by the committee to approve the renewal of the operating licenses for Suny Units 1 and 2.

The NRC Director of Nuclear Reactor Regulation will make a decision for renewed licenses for Suny Units 1 and 2 based on the issuance of the FSEIS, Final SER and the ACRS letter of recommendation in June 2020. This will preserve the option to continue operation of Surry Units 1 and 2 until 2052 and 2053, respectively.

The Company notified the NRC in November 2017 of its plans to file an subsequent license renewal application for its two nuclear units (1,672 MW total) at North Anna in accordance with 10 CFR Part 54 in late 2020. Absent subsequent license renewal approval, the existing licenses for the two units will expire in 2038 and 2040, respectively. The review process for North Aina will remain unchanged, so the expected outcome would be similar to Surry. The renewed 86

m m

licenses for North Anna would be expected 18 months following the NRC declaring the subsequent license renewal application as technically sufficient and available for docketing, <m which is expected within 45 to 60 days following the Companys submittal. Currently, the forecast receipt of the renewed licenses for North Anna Units 1 and 2 is June 2022, based on a targeted submittal date in October 2020. [=31 5.4.5 Combustion Turbines In order to preserve the option to address probable system reliability issues resulting from the addition of significant renewable energy resources and the retirement of coal-fired facilities in the near term, the Company is evaluating sites and equipment for the construction of gas-fired CT units.

5.5 Future Supply-Side Generation Resources The process of selecting alternative resource types starts with the identification and review of the characteristics of available and emerging technologies, as well as any applicable statutory requirements. Next, the Company analyzes the current commercial status and market acceptance of the alternative resources. This analysis includes determining whether particular al ternatives are feasible in the short- or long-term based on the availability of resources or fuel within the Companys service territory or PJM. The technologys ability to be dispatched is based on whether the resource is able to alter its output up or down in an economical fashion to balance the Companys constantly changing demand and supply conditions. Further, analysis of the alternative resources requires consideration of the viability of the resource technologies available to the Company. This step identifies the risks that technology investment could create for the Company and its customers, such as site identification, development, infrastructure, and fuel procurement risks.

The feasibility of both conventional and alternative generation resources is considered in utility-grade projects based on capital and operating expenses including fuel and O&M. Figure 5.5.1 summarizes the resource types that the Company reviewed as part of the generation planning process. Those resources considered for further analysis in the busbar (/.e., LCOE) screening model are identified in the final column.

Further analysis was conducted in PLEXOS to incorporate seasonal variations in cost and operating characteristics, while integrating new resources with existing system resources. This analysis more accurately matched the resources found to be cost-effective in this screening process. This PLEXOS simulation analysis further refines the Companys analysis and assists in selecting the type and timing of additional resources that economically fit the customers current and future needs.

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m m

Figure 5.5.1 - Alternative Supply-Side Resources

© 5.5.1 Supply-Side Resource Options The following sections provide details on certain newer supply-side resource options the Company has considered. Previous Plans provide additional details on the more proven technologies, including biomass, CCs, CTs, nuclear, and solar-. In addition, Section 5.4 provides additional details on generation currently under development, including offshore wind and pumped storage.

Acro-dcrivative Combustion Turbine Aero-derivative CT technology consists of a gas generator that has been derived from an existing aircraft engine and used in an industrial application. Designed for a small footprint and low weight using modular construction, aero-derivative CTs utilize advanced materials for high efficiency and fast start-up times with little or no cyclic life penalty. Aero-derivative CTs have been designed for quick removal and replacement, allowing for fast maintenance and greatly reduced downtimes, and resulting in high unit availability and flexibility. This is a fast ramping and flexible generation resource that can effectively be paired with intermittent, non-dispatchable renewable resources, such as solar and wind.

Combined Heat and Power / Waste Heat to Power Combined heat and power (CHP) is the use of a power station to generate electricity and useful thermal energy from a single fuel source. CHP plants capture the heat that would otherwise be wasted to provide useful thermal energy, usually in the form of steam or hot water. The recovery of otherwise wasted thermal energy in the CHP process allows for more efficient fuel usage.

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CHPs reduction in primary energy use through fuel efficiency leads to lower greenhouse gas ^

emissions. @

through the recovery of qual ified waste heat resources. WHP captures heat byproduct discarded ^

by existing industrial processes and uses that heat to generate power. Industrial processes that involve transforming raw materials into useful products all release hot exhaust gases and waste streams that can be captured to generate electricity. WHP is another form of clean energy production.

The Company will continue to track this technology and its associated economics based on site and fuel resource availability.

Energy Storage There are five main types of energy storage technologies: electromechanical, electrochemical, thermal, chemical, and electrical.

Electromechanical storage involves creating potential energy, which can be converted to kinetic energy. Pumped storage hydro, the most commonly used electromechanical storage technology, requires pumping large quantities of water to a reservoir at a higher elevation than the source, which creates potential energy that can be converted to kinetic energy that then spins a water turbine. Pumped storage hydro is a mature technology compared to other types of energy storage, and it represents the largest amount of installed storage capacity in the United States.

See Section 5.4.3 for a discussion of the pumped storage hydroelectric facility under development. Other examples of electromechanical storage include flywheels and compressed air energy storage.

Electrochemical (or battery) storage involves storing electricity in chemical form. One advantage of electrochemical storage is the fact that electrical and chemical energy share the same carrierthe electronwhich limits efficiency losses due to converting one form of energy to another. Lithium ion is now the most commonly used type of battery in utility-scale projects because lithium ion costs have been falling rapidly for nearly a decade. This decrease in cost is attributable to advancements in battery design, efficiency gains in manufacturing, and increased supply. Other examples of electrochemical storage include lead acid batteries, sodium sulfur batteries, and flow batteries.

Batteries serve a variety of purposes that make them attractive options to meet energy needs in both distributed and utility-scale applications. Batteries can be used to provide energy for a power station black start, peak load shaving, frequency regulation services, or peak load shifting to off-peak periods. They vary in size, differ in performance characteristics, and are usable in different locations. Batteries have gained considerable attention due to their ability to integrate intennittent generation sources, such as wind and solar, onto the grid. Battery storage technology approximates dispatchability for these variable energy resources. The primary challenge facing battery systems is the cost. Other factors such as recharge times, variance in temperature, energy efficiency, and capacity degradation are also important considerations for 89

utility-scale battery systems. The SCC recently approved the Companys application to pilot three lithium ion battery energy storage systems for different use cases. The results of these pilots will inform future deployment of batteries.

Thermal storage involves converting stored heat into energy, or supplying cool air to reduce air conditioning load. Water heaters, ice storage, and chilled water storage are all examples of thermal storage.

Chemical storage involves altering the molecular' structure of compounds (such as water) by splitting or combining molecules. For example, hydrogen gas can be created by splitting FhO molecules into H2 and O2. The H2 (hydrogen gas) can be stored and later burned to produce steam to power a turbine. Another example of chemical storage is power-to-gas conversion, which converts electrical power into gaseous fuel.

Electrical storage primarily refers to super capacitors and magnetic energy storage, which can provide short, powerful bursts of energy to jumpstart other technologies.

Cost considerations and technology maturity have restricted widespread deployment of most of these technologies, with the exception of pumped storage hydroelectric power and batteries. At present, lithium-ion batteries and pumped storage are the most commercially viable energy storage technologies for utility-scale projects. Based on the most current information sourced from the U.S. Energy Information Administration, the amount of utility-scale battery storage installed in the entire United States is just over 1,000 MW, as shown in Figure 5.5.1.1. Of those 1,000 MW, only 335 MW are located within the PJM region.

Figure 5.5.l.l - Utility-Scale Battery Storage Installations PJM installations Megawatts (MW) 200 I Retired [ 22 mw] 133 mw - IL 50 mw-WV Planned Jofj&L 33 mw-OH 150 -- 48 mw - PA Operating,'33Smwl n 7 mw-MO 22 mw-IN 100 Imw-NC 41 mw-NJ 335 mw TOTAL 50 H

-50 m in r-* t-i m in r-. cfi r-H m

§PMINININfMCNININfNINfN

__ § § fH OOOOOOO

>>H iH iH <N IN 90

5SSiilS"5 S i)i)S As discussed in Section 1.2, the VCEA requires the Company to build 2,700 MW of energy storage by 2035. The Company will continue to study energy storage to determine the feasibility of constructing this quantity of energy storage capacity.

Fuel Cell Fuel cells convert chemical energy from hydrogen-rich fuels into electricity and heat, there is no burning of the fuel. Fuel cells emit water and CO2, resulting in power production that is almost entirely absent of NOx, SOx, or particulate matter. Similar to a battery, a fuel cell is comprised of many individual cells that are grouped together to form a fuel cell stack. Each individual cell contains an anode, a cathode, and an electrolyte layer. When a hydrogen-rich fuel, such as clean natural gas or renewable biogas, enters the fuel cell stack, it reacts electrochemically with oxygen (i.e., ambient air) to produce electric current, heat, and water. While a typical battery has a fixed supply of energy, fuel cells continuously generate electricity as long as fuel is supplied.

Fuel cells were invented in 1932 and put to commercial use by NASA in the 1950s. They are now most common as a power source for buildings and remote areas, but continual improvements in technology are quickly bringing them into wider use.

Integrated-Gasification Combined Cycle with Carbon Capture Sequestration Integrated-gasification CC plants use a gasification system to produce synthetic natural gas from coal that is then used to fuel a CC. The gasification process produces a pressurized stream of CO2 before combustion, which, as research suggests, provides some advantages in preparing the CO2 for CCS systems. Integrated-gasification CC systems remove a greater proportion of other air effluents in comparison to traditional coal units.

Recinrocating Internal Combustion Engine Reciprocating internal combustion engines use reciprocating motion to convert heat energy into mechanical work. Stationary reciprocating engines differ from mobile reciprocating engines in that they are not used in road vehicles or non-road equipment.

There are two basic types of stationary reciprocating engines, spark ignition and compression ignition. Spark ignition engines use a spark (across a spark plug) to ignite a compressed fuel-air mixture. Typical fuels for such engines are gasoline and natural gas. Compression ignition engines compress air to a high pressure, heating the ah to the ignition temperature of the fuel, which then is injected. The high compression ratio used for compression ignition engines results in a higher efficiency than is possible with spark ignition engines. Diesel fuel oil is normally used in compression ignition engines, although some are duel-fueled (i.e., natural gas is compressed with the combustion ah' and diesel oil is injected at the top of the compression stroke to initiate combustion).

Small Modular Reactors Small modular reactors (SMRs) are utility-scale nuclear units with electrical output of 300 MW or less. SMRs are manufactured largely off-site in factories, and then delivered and 91

a installed on-site in modules. The smaller power output of SMRs when compared to conventional ^

baseload nuclear units currently in operation offers a number of advantages, including reduced ^

land surface area, potential for reduced security and emergency planning zone requirements, © lower initial capital and operating costs, and flexibility in meeting specific power needs by &S staging multiple units in the same or multiple locations. A typical SMR design entails ^

underground placement of reactors and spent-fuel storage pools and a natural cooling feature that can continue to function in the absence of external power. SMR design development and permitting have advanced with some designs currently under review by the NRC. The Company will continue to monitor the industrys ongoing research and development regarding this technology. The federal government recently approved partial co-funding for up to two demonstration projects. The Company is reviewing and evaluating the potential for participation in this funding opportunity in support of its emission reduction targets.

5.5.2 Levelized Busbar Costs /Levelized Cost of Energy The Companys busbar model was designed to estimate the levelized cost of energy of various generating resources on an equivalent basis. The busbar results show the LCOE of various generating resource technologies at different capacity factors and represent the Companys initial quanti tative comparison of various alternative resources. These comparisons include fuel, heat rate, emissions, variable and fixed O&M costs, expected service life, and overnight construction costs.

Figures 5.5.2.1 and 5.5.2.2 display summary results of the busbar model comparing the economics of the different technologies. The results are separated into two figures because non-dispatchable resources are not equivalent to dispatchable resources for the energy and capacity value they provide to customers. For example, dispatchable resources are able to generate when power prices are the highest, while non-dispatchable resources may not have the ability to do so.

Furthermore, non-dispatchable resources typically receive less capacity value for meeting the Companys reserve margin requirements and may require additional technologies in order to assure grid stability.

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Figm-e 5.5.2.1 - Dispatchable LCOE (2023 COD')

$/kw-yr Figure 5.5.2.2 - Non-Dispatchable LCOE (2023 COD)

$400

$350 O I OFFSHORE WIND l

$300 A ON SHORE WIND

$250 3 $200

$150 l SOLAR 19% CF l

$100 SOLAR 25% CF

$50

$0 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Capacity Factor 93

y3!

Appendix 5M contains the tabular results of the screening level analysis. Appendix 5N displays the assumptions for heat rates, fixed and variable O&M expenses, expected service lives, and the estimated construction costs.

In Figure 5.5.2.1, the lowest values represent the lowest cost assets at the associated capacity ^

factors along the x-axis. Therefore, one should look to the lowest curve (or combination of curves) when searching for the lowest cost combination of assets at operating capacity factors between 0% and 100%. Resources with LCOE above the lowest combination of curves generally fail to move forward in a least-cost resource optimization. Higher LCOE resources, however, may be necessary to achieve other constraints like those required by carbon regulations. Figures 5.5.2.1 and 5.5.2.2 allow comparative evaluation of resource types.

In Figure 5.5.2.1, the value of each cost curve at 0% capacity factor depicts the amount of invested total fixed cost of the unit. The slope of the units cost curve represents the variable cost of operating the unit, including fuel, emissions, and any REC or production tax credit

("'PTC) value a given unit may receive.

Figure 5.5.2.2 displays the non-dispatchable resources that the Company considered in its busbar analysis. Wind and solar resources are non-dispatchable with intermittent production and lower dependable capacity ratings. Both resources produce less energy at peak demand periods than dispatchable resources, requiring more capacity to maintain the same level of system reliability.

Non-dispatchable resources may require additional grid equipment and technology changes in order to maintain grid stability.

As shown in Figure 5.5.2.1, CT technology is currently the most cost-effective option at capacity factors less than approximately 25% for meeting the Companys peaking requirements. The CC 3x1 technology is the most economical option for capacity factors greater than approximately 25%. As depicted in Figure 5.5.2.2, solar is a competitive choice at capacity factors of approximately 25%.

Figure 5.5.2.3 shows the estimated LCOE for a 300 MW pumped storage facility and generic 30 MW 4-hour battery. All LCOE are based on a 15% capacity factor, which was derived from the historical performance of the Companys pumped storage facilities, and projected performance of future energy storage technologies, as calculated by the PLEXOS model.

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Figure 5.S.2.3 - Energy Storage LCQE r2023 COD^)

<a

$900-j PUMP STORAGE 300MW

$800 i

$700^

$00-)

BATTERY GENERIC

$0MW

^ $400 i

$300

$200 -(I

$100 *>>

50 4----------- * *

<3% 10X 20X 3091 40K 50K 60X 70X 80K 90K Capacity Factor The assessment of alternative resource types and the busbar screening process provides a simplified foundation in selecting resources for further analysis. However, the busbar curve is static in nature because it relies on an average of all of the cost data of a resource over its lifetime.

5.5.3 Third-Party Market Alternatives During the last several years, the Company has increased its engagement of third-party solar developers in both its Virginia and North Carolina service territories.

In Virginia, the Company has issued an annual RFP for utility-scale solar- and wind generating facilities since 2015. These RFPs have resulted in both Company-owned solar facilities and solar PPAs. Outside of the utility-scale solar and wind RFPs, the Company entered into PPA agreements for several solar facilities totaling 67 MW. The Company has also issued RFPs for small-scale solar- resources. The Company will continue to issue annual RFPs for solar and wind resources, consistent with the competitive procurement requirements of the VCEA.

In North Carolina, the Company has signed 91 PPAs totaling approximately 686 MW (nameplate) of new solar- NUGs. Of these, 572 MW (nameplate) are from 80 solar projects that were in operation as of March 2020. The majority of these projects are qualifying facilities contracting to sell capacity and energy at the Companys published North Carolina Schedule 19 rates in accordance with the Public Utility Regulatory Policies Act.

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© m

5.6 Challenges Related to Significant Volumes of Solar Generation vt m

All Alternative Plans in this 2020 Plan include significant development of solar resources, as shown in Section 2.2. Based on current technology, challenges will arise as increasing amounts pj of these non-dispatchable, intermittent resources are added to the system. This section seeks to identify these challenges, which include intra-day, intra-month, and seasonal challenges posed by the interplay of solar generation and load, as well challenges related to system restoration. This section also discusses challenges related to constructing the level of solar generation in Alternative Plans B through D. In this 2020 Plan, Alternative Plan B best addresses these challenges based on current technology. But the Company stands ready to meet these challenges with continued study, technological advancement, and innovation, and will provide the results of these advancements in future Plans and update filings.

5.6.1 Challenges Related to Capacity Solar generation significantly contributes to meeting peak demand in the summer, but barely contributes to meeting whiter peak demand. This is because summer peak demand occurs during late afternoon hours when the sun is typically shining and, consequently, when the solar facilities are producing energy. In contrast, winter peak demand typically occurs in the early morning hours when the sun is beginning to rise, and when solar facilities are just starting to ramp up production.

As the Company adds increasing amounts of solar resources to the system, this will resul t in the system having excess capacity in the summer, but not having enough capacity in the winter. For example, Figure 5.6.1.1 shows the nameplate capacity, summer capacity, and winter capacity of existing and new resources in Alternative Plan D compared to the 2020 PJM. Load Forecast. As can be seen, the Company has approximately 11,500 MW more capacity than needed in the summer in Alternative Plan D, but then has a deficit of approximately 8,800 MW in the winter.

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Figure 5.6.1.1 - Alternative Plan D Capacity in Summer and Winter 70,000 Solar Summer Winter Wind surplus deficit 60,000 Storage Other Hydro 50,000 Gas Coal PJM load forecast

^ 40.000 Nuclear (Peak + Reserves)

£ u

a 30,000 20,000 10,000 0

z 2040 2045 2020 2035 Notes: Other = biomass, small combustion turbines, NUGs, demand response, purchases, & heavy oil units Adding energy storage resources is one way the Company could meet this winter capacity deficit. The capacity value of energy storage resources is limited, however, by the size of tine resource and by the time it takes to recharge. Significantly more energy storage capacity would be needed, both in magnitude and duration, as the peak gets steeper and as the period that those resources are expected to support the system becomes longer. The combination of these factors would likely lead to an overbuilt system (i.e., a system with higher resource nameplate capacity compared to peak load). In addition, many forms of utility-scale energy storage are stil l in the early stages of development, as discussed further in Section 5.5.1, with higher costs relative to other current technologies. Technological advancements may provide other options to meet this challenge in the long term without necessitating an overbuild of the system.

The Company could also meet this challenge related to winter capacity in the future by buying capacity to fill the deficit to the extent required by PJM market rules. In this 2020 Plan, the Company assumed it would meet any winter deficit widi capacity from the market. Historically, the Company was able to self-supply to meet the vast majority of all its capacity needs; Alternative Plans C and D rely heavily on the market to maintain the reliability of the system.

5.6.2 Challenges Related to Energy In addition to challenges related to winter capacity, development of significant volumes of solar generation also present challenges related to energy. Specifically, the Company would likely need to import a significant amount of energy during the winter, but would need to export 97

significant amounts of energy during the spring and fall. Figure 5.6.2.1 shows the level of y?l p

percentage of tune in year 2045 that imports are constrained by system limitations5,200 MW ^

for Plans A and B, and 10,400 MW for Plans C and D.

Figure 5.6.2.1 - Annual Imports for Each Alternative Plan 35,000 30,000 25,000 20,000 5

eO a.

- 15,000 10,000 5,000 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 98

m m

Figure 5.6.2.2 - Year 2045 Import Duration Curve l=a Importing significant energy presents its own challenges. Section 7.5 includes a discussion of the upgrades that would be needed to the Companys transmission system to physically import these increased levels of energy, as well as an estimate of those costs. Notably, relying on increased imports could also contribute to regional CO2 emission because the imported power from PJM would come in pent from carbon-emitting generation in the PJM region. Figure 2.2.6 shows regional carbon emissions for each Alternative Plan.

5.6.3 Challenges Related to the Solar Production Profile Output from solar facilities generally tracks the sun, ramping up in the morning as the sun rises, producing consistently throughout the day subject to cloud cover, and then ramping down as the sun sets. This production profile generally (although not perfectly) fits well with customer demand in the summertime because customer demand is higher during the afternoon hours when solar production is high. In the spring and fall, however, as increasing amounts of solar generation is added to the system, solar can produce more energy than is needed to meet customer demand during the daytime.

Figure 5.6.3.1 shows the capacity of the solar- and wind resources in Alternative Plan D during a typical day in April compared to the PJM Load Forecast. As can be seen, the inclusion of large amounts of solar and wind generation significantly alters the shape of the net load profile (i.e.,

forecasted load less the non-dispatchable solar and wind energy) causing a dip in the middle of the day. This profile is commonly referred to as a duck curve because it produces a profile 99

that resembles the silhouette of a duck. As Figure 5.6.3.1 shows, the Company would need additional energy at dawn and dusk, but would have excess energy during the daytime.

Figure 5.6.3.1 - Solar and Wind Capacity Compared to Load Forecast b*

April 2045 (typical 24-hr day) 40,000 30.000 PJM Load Forecast (Peak + Reserves) 20.000 10,000

§ (10,000)

(20,000)

(30,000)

The Company could address this challenge with additional energy storage resources, though some energy would be lost when storage resources are used. The Company could also increase the amount of energy it exports subject to system need, though this would be limited by transmission export capacity. The Company may also be limited in its ability to export excess energy in the spring and fall to the extent neighboring states elect to develop significant volumes of solar resources similar to Virginia and also have excess energy.

In some instances, it would become more economic to dump this excess energy when compared to the costs of building additional energy storage resources, increasing transmission export capacity, or facing negative market energy prices. From an operational perspective, energy is dumped by lowering the output levels of certain solar facilities during periods of low demand. One possible clean energy solution to this challenge, however, would be to utilize long term storage solutions for this dump energy. For example, the Company could utilize this excess energy to create carbon-free hydrogen fuel that could subsequently be used in natural gas-fired generators. When hydrogen fuel is used in gas-fired generators, the byproduct is water rather than CO2. The Company will continue to study these types of innovative alternatives to address challenges caused by increasing levels of solar generation on the system. Based on the advancements and innovations in the industry in the next 25 years, Virginia may need to adjust its RPS to accommodate other potential technologies that would provide clean energy while maintaining system reliability.

Another potential issue caused by the solar production profile shown in Figure 5.6.3.1 is the steep generation changes in the dawn and dusk periods. In a three-hour period, the system would 100

m a

ws have to ramp over 30,000 MW of supplyan extremely large magnitude, especially over that P short of a duration. Essentially, tire Company would be ramping up and down its entire fleet of m dispatchable resources twice a day. Backup generation resources along with energy storage resources may be required to manage these large transitions. p 5.6.4 Challenges Related to Black Start and System Restoration Black start refers to the critical process of restoring the system without relying on the external transmission network to recover from a total or partial shutdown. Development of significant volumes of solar generation also present challenges in a black start event. The system has traditionally been set up to rely on dispatchable, quick-start units for black start, such as combustion turbines. Initial power from these units are used to start larger dispatchable generators, allowing even larger units (e.g., nuclear) and customers to reconnect to the grid in a very logical and coordinated process. This process is largely a manual process for grid operators as they must maintain a fine balance between energy supply and demand; black start units thus have strict operational requirements to be available around-the-clock and be able to produce steady and predictable output. Such requirements impose difficulties for non-dispatchable, intermittent solar resources to be included in the system restoration plan.

In this 2020 Plan, Alternative Plan B preserves approximately 9,700 MW of natural gas-fired generation to address future system reliability, stability and energy independence, including challenges related to black start. The Company will continue to study how to address these black start-related challenges as the Company transition to a cleaner future, as discussed further in.

Section 7.5.5.

5.6.5 Challenges Related to Constructability Beyond the system challenges that arise from adding increasing amounts of intermittent generation to the system, solar developersincluding the Companywill face increasing challenges in permitting and constructing the amount of solar generation envisioned by the VCEA, as modeled in Alternative Plans B through D.

Utility-scale solar generating facilities require a significant amount of land. Based on current technology, every one megawatt of solar capacity requires approximately 10 acres of land. The VCEA requires this new solar capacity to be located in Virginia. Acquiring this amount of landand receiving the required permits for that landcould prove increasingly difficult as development continues.

This difficulty in acquiring land and pennitting projects will be exacerbated if localities and members of the public continue to raise objections to siting solar facilities in their communities.

For example, in October 2019, the Culpepper County Board of Supervisors adopted new provisions to its Utility Scale Solar- Development Policy intended to limit utility scale solar sprawl. These new provisions would limit total solar development in the county to 2,400 acres1% of the total land mass in Culpeperand would limit the size of individual projects to 300 acres (the equivalent of approximately 30 MW). As another example, in Spotsylvania County, Virginia, neighboring property owners and community members have filed complaints 101

M m

m m

with the countys board of zoning appeals related to the development of a 6,300 acres utility-scale solar facility. m Aside from the land, die supply chain organization for the solar industry will be challenged to ^

meet the level of solar generation in Alternative Plans B through D. This includes both equipment suppliers and construction contractors. Specifically, world-wide panel manufacturers will need to ramp up production as the demand for solar generation increases both inside the Companys service territory and across the United States. Additionally, qualified construction contractors for building utility-scale solar facilities will need to expand and train a large a labor force. Utilizing a skilled vendor to construct the solar facilities will be an important factor going forward, as the land available for future solar development is expected to be less optimal, requiring more design and engineering work to meet output targets.

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fed wn Chapter 6: Generation - Demand-Side Management This chapter provides a description of the DSM planning process, and an overview of approved, © proposed, and rejected DSM programs. See Section 4.1.3 for discussion of how the Company adjusted the load forecasts used in this 2020 Plan to account for energy efficiency targets. This t=a chapter also provides the energy efficiency-related analysis required by the GTSA.

In this 2020 Plan, there is a total reduction of .1,120 GWh by 2020 in DSM-related savings. By 2025, there are 3,459 GWh of reductions included in the PLEXOS modeling for this 2020 Plan.

Projected energy savings include reductions from identified sources (z'.e., DSM. programs approved by and proposed to the SCC), as well as unidentified sources (i.e., generic DSM as discussed below). For modeling purposes, neither the identified nor the unidentified sources included free-ridership effects. If these sources had included free-ridership effects, the reductions by 2020 and 2025 would be 945 GWh and 3,028 GWh, respectively. Projected savings attributable to DSM programs in 2025 are shown in Figure 6.1.

There are several drivers that will affect the Companys ability to meet the current level of projected energy and demand reductions, including the cost-effectiveness of the DSM programs when filed, the SCC and NCUC approval of newly filed programs, the continuation of existing programs, the final outcome of proposed environmental regulations, the full implementation of AMI and the customer information platform through the Companys Grid Transformation Plan, and customers willingness to participate in approved DSM programs.

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w Figure 6.1 - DSM Program Projected Savings By 2025 Projected MW Projected GWh Program Status (VA/NC)

Reduction Savings Air Conditioner Cycling Program 54 Approved/Approved Residential low Income Program Completed / Completed Phase I Residential Lighting Program Commercial Lighting Program Closed / Closed Commercial HVAC Upgrade Non-Resldential Distributed Generation Program 12 Extension Approved / Rejected Non-Residentlal Energy Audit Program Non-Residentlal Duct TestinR and Sealing Program Residential Bundle Program Phase I Residential Home Energy Check-Up Program Residential Duct Sealing Program Completed /Completed Residential Heat Pump Tune Up Program Residential Heat Pump Upgrade Program 17 Non-Resldential Window Film Program __ 4 Phase III Non-Residentlal Lighting Systems & Controls Program 19 115 Non-Residentlal Heating and Cooling Efficiency Program 34 Income and Age Qualifying Home Improvement Program 17 Extension Approved/Approved Phase IV Residential Appliance Recycling Program Completed Small Business Improvement Program 16 90 Approved/Approved Phase V Residential Retail LED Lighting Program (NC only) No Plans/Completed Phase VI Non-Resldential Prescriptive Program 21 Residential Efficient Products Marketplace Program 436 Non-Residentlal Lighting Systems & Controls Program 43 Residential Appliance Recycling Program " 28 Non-Residentlal Heating and Cooling Efficiency Program 42 Approved/Approved Non-Residential Window Film Program 9 Phase VII Residential Home Energy Assessment Program 88 Non-Residentlal Office Program 26 Non-Residential Small Manufacturing Program___________ 15 Residential Customer Engagement Program SI Residential Smart Thermostat Management Program (DR^ Approved/Future Residential Smart Thermostat Management Program (EE) 23 Non-Residential Midstream EE Products ____

Non-Resldential New Construction Residential EE Kits ________

Residential Home Retrofit _______

Residential Manufactured Housing _ _ _ _

Phase VIII Muklfamlly Program _____ Proposed/Future HB 2789 HVAC Component __ _____________

Residential New Construction Non-Residentlal Small Business Improvement Enhanced Residential Electric Vehicle EE/DR ___

Residential Electric Vehicle Peak Shaving_______________

6.1 DSM Planning Process The Company has historically used the following process related to its DSM programs:

Gfneraie ld< KIP Evaluation and SCCniinQ SCC Pfoceedine MWm MM EMKV IBM IBB 104

The GTSA established the DSM stakeholder group, which helps to generate program ideas. The ^

Company takes those ideas and develops them into more concrete program parameters, which <g) are then compiled into an RFP of candidate program designs and implementation services sent to © qualified vendors. The Company develops assumptions for new DSM programs by engaging ^

vendors through a competitive RFP process to submit proposals for candidate program design ^

and implementation services. As part of the bid process, basic program design parameters and descriptions of candidate programs are requested. The Company generally prefers, to the extent practical, that the program design vendor is ultimately the same vendor that implements the program in order to maintain as much continuity as possible from design to implementation.

Once proposals through an RFP process are received, the Companys energy conservation group works with its supply chain group to systematically review the proposals. Program designs are reviewed for responsiveness to the RFP, practicality of the design, technology requirements, staffing plan, marketing plan, reasonableness of the measures proposed, overlap with existing measures, cost reasonableness, previous experience, work history with the Company, expected ability to deliver the services proposed, and ability of the proposing firm to comply with the Companys terms and conditions, data protection requirements, and financial requirements.

Proposals must contain detailed information regarding measure load profiles and market penetration projections in a specific format that allows modeling of the program as a demand side resource when compared against other resources, including supply-side resources.

Candidate designs that are judged to be reasonable, based on preliminary review, are evaluated for cost-effectiveness from a multi-perspective approach using four of the standard tests from the California Standards Practice Manual: (i) the Participant Test, (ii) Utility Cost Test, (iii) Total Resource Cost (TRC) Test, and (iv) Ratepayer Impact Measure Test. Each test uses the NPV of costs and benefits. Tests are conducted at a program level.

PLEXOS does not have the ability to conduct cost-benefit evaluations for DSM within the model itself, leading to the need for an additional model, tool, or process. For this reason, the Company has continued its use of Strategist for DSM evaluations using consistent data between the models. The inputs into Strategist are consistent with those in PLEXOS for the 2020 Plan. The Company looks at the results of all of the cost-benefit test scores, as well as NPV results, to evaluate whether to file for regulatory approval of a potential program or program extension.

If the programs are cost effective based on the modeling results, or otherwise legislatively deemed to be in the public interest for policy reasons, the programs are then filed with the SCC for approval. The SCC approval process lasts approximately eight months. For the programs that are approved, the Company works with the RFP suppliers to finalize a contract for full implementation of the program. Once all details are finalized, a new DSM program can be launched for participation by eligible customers.

Finally, the Company conducts evaluation, measurement and verification of all DSM programs and provides reports to the SCC each May for the prior calendar year on specific program metrics, including participation, spending, and energy and demand savings.

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that the Company is employing and its plans to achieve each programs penetration goals.

Appendices 6B, 6C, 6D, and 6E provide the system-level non-coincidental peak, savings, coincidental peak savings, energy savings, and penetrations for each approved program.

In July 2019, the Company filed for NCUC approval of the (i) Residential Home Energy Assessment Program, (ii) Residential Efficient Products Marketplace Program, (iii) Residential Appliance Recycling Program, (iv) Non-Residential Window Film Program, (v) Non-Residential Small Manufacturing Program, (vi) Non-Residential Office Program, (vii) Non-Residential Lighting Systems & Controls Program, and (viii) Non-Residential Heating and Cooling Efficiency Program. In November 2019, the NCUC issued its Final Order approving all eight programs.

The Company also currently offers one DSM pricing tariff, the standby generation (SG) rate schedule, to enrolled commercial and industrial customers in Virginia. This tariff provides incentive payments for dispatchable load reductions that can be called on by the Company when capacity is needed. Two customers are on SG in Virginia. The SG rate schedule provides a direct means of implementing load reduction during peak periods by transferring load normally served by the Company to a customers standby generator. The customer receives a bill credit based on a contracted capacity level or the average capacity generated during a billing month when SG is requested. During a load reduction event, a customer receiving service under the SG rate schedule is required to transfer a contracted level of load to its dedicated on-site backup generator. Figure 6.2.1 provides estimated load response data for summer/winter 2019.

Summer 2019 Winter 2019 Figure Number 6.2.1 -ofEstimated Load Estimated MW Response Data Number of Estimated MW Tariff Events Reduction Events Reduction Standby Generation The Company modeled this existing DSM pricing tariff over the Study Period based on historical data from the Companys customer information system. Projections were modeled with diminishing returns assuming new DSM programs will offer more cost-effective choices in the future.

6.3 Jroposed DSM Programs On December 3, 2019, the Company filed for SCC approval in Case No. PUR-2019-00201 of eleven new DSM programs and extension of one existing program. The eleven proposed programs in Phase VIII are:

Residential Electric Vehicle (EE & DR);

Residential Electric Vehicle (Peak Shaving);

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Residential Energy Efficiency Kits; &

Residential Home Retrofit;

Residential Manufactured Housing; w

Residential New Construction;

Residential/Non-Residential Multifamily;

Non-Residential Midstream Energy Efficient Products;

Non-Residential New Construction;

Small Business Improvement Program Enhanced; and

HB 2789 Heating and Cooling/Health and Safety.

In addition, the Company filed for an extension of the existing Air Conditioner Cycling Program and expedited approval to launch three of the Phase VII programs. The SCC must issue its Final Order in Case No. PUR-20] 9-00201 by August 2020.

Through House Bill No. 2789 from the 2019 Regular Session of the Virginia General Assembly, the Company is required to seek approval of a three-year rebate program targeting low-income, elderly, and disabled customers. The program would incentivize energy conservation measures that reduce residential heating and cooling costs and enhance the health and safety of residents (at least $25 million available in rebates). Another program targeting participants in the above-described prograai must incentivize installation of solar equipment (not to exceed $25 million).

In December 2019, the Company filed for approval of the energy efficiency component of the rebate program. The solar stakeholder group continues to develop the solar component of this program.

Appendix 6F provides program descriptions for the proposed DSM programs. Appendices 6G, 6H, 61 and 6J provide the system-level non-coincidental peak savings, coincidental peak savings, energy savings, and penetrations for each proposed program.

6.4 Future DSM Initiatives The Company is currently conducting an appliance saturation study and, once completed, will begin a new DSM market potential study within the Companys service territory. This market potential study will provide additional guidance regarding what additional DSM measures are achievable.

As noted in Section 6.1, during the first and second quarter of each year, the Company conducts an RFP process to solicit designs and recommendations for a broad range of DSM programs. The Company anticipates continuing this process for the foreseeable future. Within this process, detailed proposals are requested for programs that include measures identified in the most recent DSM Potential Study, as well as other potential cost-effective measures based upon current market trends.

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Load conditions, energy prices, generation resource availability, and customer tolerance for the use of DSM are all important considerations for the Company in determining which DSM resources to deploy in the future. The use of these DSM resources largely depends on the circumstances and cannot be prescribed in any definitive manner. The Company will continue to identify and seek approval to implement DSM programs that are cost effective or meet public policy goals.

As to cost-effective DSM available to respond to the growth of the winter peak, the Companys Distributed Generation Program is currently available to eligible non-residential customers in Virginia and provides dispatchable demand savings during winter periods to non-residential customers who meet participation requirements based upon size. The Company currently has a demand response residential thermostat control program pending approval in Virginia, which would also provide winter demand and energy savings. Further, the Companys other proposed DSM programs noted in Section 6.3 address both summer and winter peaks as well as energy requirements. While demand response programs can be used to reduce peak periods explicitly, energy efficiency programs can also provide reductions during winter hours. The Company is also participating in a stakeholder process required by the GTSA to help it identify potential opportunities for future energy efficiency and demand response programs. This effort will hopefully lead to future DSM initiatives that will address both summer and winter peak hours.

Appendices 6K and 6L provide the system-level coincidental peak savings and energy savings for future undesignated EE programs.

6.5 Rejected DSM Programs The Company rejected the following programs as part of the 2019 DSM process: (i) Non-Residential Agricultural EE, (ii) Non-Residential Strategic Energy Management, and (iii) Non-Residential Telecommunications Optimization. A list of these and other rejected DSM programs from prior integrated resource planning cycles is shown in Appendix 6M. Rejected programs may be re-evaluated and included in future DSM portfolios.

6.6 GTSA Energy Efficiency Analysis Enactment Clause 18 of the GTSA required the Company to incorporate into its long-term plan for energy efficiency measures policy goals of reduction in customer bills, particularly for low-income, elderly, veterans, and disabled customers; reduction in emissions; and reduction in the utilitys carbon intensity.

The Company is committed to meeting state energy goals, which is why the Company offers energy conservation programs to help customers save energy and maximize savings while also reducing emissions and the Companys carbon intensity. The GTSA sets the target of proposing

$870 million of spending on energy efficiency between 2018 and 2028. Of this amount, the VCEA directs that at least 15% be for programs aiding low-income, elderly, veteran, and disabled customers. The VCEA further sets the target of reaching 5% energy efficiency savi ngs (based on 2019 jurisdictional electricity sales) by 2025.

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The Company has determinedly sought approval of new DSM programs from the SCC ^

including 22 new programs in tire last two yearsto meet these targets. The Company is also ^

actively involved in regular- stakeholder meetings to generate new program concepts and then utilizes an annual solicitation of new measures and program re-designs from expert vendors ^

within the industry. ^

The Company considers the stakeholder forum, which provides transparency and inclusivity in the process, to represent the best opportunity to develop a long-term plan for energy efficiency measures that will ultimately achieve the DSM policy goals set by the Commonwealth.

Enactment Clause 18 of the GTSA also directed that utility considerations of energy efficiency wi thin its long-term plan shall include analysis of the following:

Energy efficiency programs for low-income customers in alignment with billing and credit practices;

Energy efficiency programs that reflect policies and regulations related to customers with serious medical conditions;

Programs specifically focused on low-income customers, occupants of multifamily housing, veterans, elderly, and disabled customers;

Options for combining distributed generation, energy storage, and energy efficiency for residential and small business customers;

The extent that electricity rates account for the amount of customer electricity bills in the Commonwealth and how such extent in the Commonwealth compares with such extent in other states, including a comparison of the average retail electricity price per kWh by rate class among all 50 states;

An analysis of each states primary fuel sources for electricity generation, accounti ng for energy efficiency, heating source, cooling load, housing size, and other relevant factors; and

Other issues as may seem appropriate.

6.6.1 Considerations for Certain Customers Groups and Options for Combining Distributed Generation, Energy Storage, and Energy Efficiency The Companys existing Residential Income and Age Qualifying Home Improvement Program provides in-home energy assessments and installation of select energy-saving products at no cost to eligible participants. The Program is available to qualified customers in the Companys Virginia service territory. The Program conforms to tire Virginia Department of .Housing and Community' Development qualification guidelines, which is currently set at 60% state median income. It is also available to customers who are 60 years or older with a household income of 120% of the state median income. Notably, the Company has proposed changing eligibility for this and future income-based programs to use area median income to allow greater eligibility among participants living in higher-income areas of the state that may still be in need. The Program is available to qualified individuals living in single-family homes, multifamily homes, and mobile homes. Based on evaluation, measurement and verification, however, this Programs participants have largelymore than 90%come from multifamily living situations.

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Additionally, a special subgroup focused on low income DSM program improvements is meeting as part of the stakeholder process and making valued suggestions for future improvements that will result in better alignment with the states federally funded program. The Company has and will continue to work with the Department of Housing and Community Development to establish alignment with programs where helpful and beneficial.

Finally, in December 2019, the Company requested SCC approval of the first component of the House Bill 2789 (Heating and Cooling/Health and Safety) Program as part of its DSM Phase VIII proposal. Virginia House Bill 2789 requires that a pedtion be submitted for a program for income qualifying, elderly and disabled individuals consisting of two components. The first component would offer incentives for the installation of measures that reduce residential heating and cooling costs and enhance the health and safety of residents, including repairs and improvements to home heating and cooling systems and installation of energy-saving measures in the house, such as insulation and air sealing. The second component would offer incentives to participants of the fust component for the installation of equipment to generate electricity from sunlight. The Company expects to request approval of the second component associated with solar generation equipment in a future filing.

6.6.2 Electricity Rate and Consumption Comparison Electricity bills are driven by a combination of electricity rates and electricity consumption. The following charts show where each state and the Company falls by electricity rate and consumption.

In the residential sector, the Company and Virginia as a whole fall within a cluster of mostly southern states with below-average rates and relatively high consumption. The consumption level reflects a high saturation of electric heating equipment compared to other pails of the U.S.,

paired with high cooling loads.

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Figure 6.62.1 - States by Residential Average Price per kWh and Consumption per Household 033 r H,

030 f 027 Lower cooling loads, higher saturation of fuel heating I Higher cooling loads, higher saturation of electric heating 034 I

i 031 a O. MA I

CA 0.18 VT NY ME Mkj 0J2 -CO OC-------------

ur 039 6300 7,000 8300 9300 In the commercial sector Virginia is an extreme outlier in consumption per customer, averaging more than 120,000 kWh per year-. The Company is one of three utilities in Virginia with average commercial consumption over 100,000 kWh per year; the others are the City of .Harrisonburg and Virginia Tech Electrical Services. In contrast, the lowest average commercial consumption belongs to Community Electric Cooperative at less than 14,000 kWh per commercial customer, comparable to a home. The primary drivers of commercial consumption are the size of the customer (building square feet, number of employees) and the type of building activity. Denser urban areas tend to have larger commercial buildings and therefore higher average commercial consumption, and the Companys service territory captures many of Virginias densest urban areas. The Company also has a high concentration of data centers among its commercial customers. Data centers are extremely energy intensive, as the densely packed computing equipment they contain produces waste heat that drives high space cooling loads. Because of the extreme differences among commercial customers, building efficiencies are typically compared based on energy intensity (energy use per square foot) and only among similar building types (offices with offices and restaurants with restaurants).

Ill

W Figure 6.62.2 - States by Average Commercial Price per kWh and Average Consumption per Commercial Customer m

© The Company engaged DNV GL Energy Insights U.S.A. (DNV GL) to analyze fuel source for generation, as well as the additional metrics referred to in the legislation. This analysis is provided in Appendix 6N.

6.6.4 Other Relevant Issues for Energy Efficiency A nalysis DNV GL, on behalf of the Company, also regularly assesses both the current stock of appliances through an appliance saturation study, and the potential for electric energy (kWh) and demand (kW) savings from Company-sponsored DSM programs through a Market Potential Study of both residential and commercial customers. The most recent iteration of this process is currently underway and results are expected by late 2020. The results will include

Estimates of the magnitude of potential savings on an annual basis;

Estimates of the costs associated with achieving those savings; and

Calculations of the cost effectiveness of the measures based on the estimates above from a TRC perspective assuming PJM market price estimates.

The Company and DNV GL conducted previous Market Potential Studies in 2015 and 2017; the 2017 Market Potential Study was updated in 2018 to reflect changes to eligibility for commercial 112

customers due to the GTSA. Appliance Saturation Studies and Residential Conditional Demand Analyses were conducted in 2013 and 2016, and included mail and electronic surveys of residential and commercial customers.

The Market Potential Studies estimate three basic types of energy efficiency potential:

Technical potential: The complete penetration of all measures analyzed i n applications where they were deemed technically feasible from an engineering perspective.

Economic potential: The technical potential of those energy efficiency measures that are cost-effective when compared to supply-side alternatives.

Achievable program potential: The amount of savings that would occur in response to specific program funding, marketing, and measure incentive levels.

In this study, the Company looked at the potential available under two funding scenarios50% incentives and 75% incentives.

The Company, through its DSM stakeholder process, uses the information contained in the Market Potential Studies to help develop ideas for potential DSM programs to include measures that may be cost beneficial. The most recent Market Potential Study is typically released with a Company solicitation for DSM programs.

6.7 Overall DSM Assessment At the end of the Planning Period (i. e., 2035), energy reductions projected for the identified DSM programs are approximately 1,373 GWh. This compares to 1,276 GWh identified in the 2019 Update, or an approximately 8% increase in energy reductions. The majority of the increase in energy reductions is attributed to the proposed Phase VIII DSM programs included in the 2019 Virginia DSM filing.

The capacity reductions at the end of the Planning Period for the identified DSM programs are 383 MW in this 2020 Plan. This compares to 405 MW in the 2019 Update, or an approximately 5% decrease in demand reductions. This decrease is largely attributable to (i) the Non-Residential Prescriptive Program not yet realizing adoption of high energy and high capacity reduction measures; and (ii) corrected design assumptions for the Residential Thermostat Programs.

In this 2020 Plan, the unidentified DSM resources are presented as an unidentified generic block of energy efficiency reductions priced at $200/MWh to meet the GTSA and VCEA requirements, as explained in Section 4.1.3. For comparison, in the 2019 Update, the Company included an unidentified generic block of energy efficiency reductions to meet the requirements of the GTSA only.

See Section 4.1.3 for a discussion of the energy efficiency reductions used as adjustments to the load forecast in this 2020 Plan. Figures 4.1.3.1 and 4.1.3.2 show these energy efficiency energy and capacity adjustments, respectively.

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y Figure 6.7.3 presents a comparison of the Companys expected demand-side management costs relative to expected supply-side costs. The costs are provided on a levelized cost per MWh basis © for both supply- and demand-side options. The supply-side options levelized costs are developed by determining the revenue requirements, which consist of the dispatch cost of each of the units and the revenue requirement associated with the capital cost recovery of the resource. &

The demand-side options levelized cost is developed from the cost-benefit runs. The costs include the yearly program cash flow streams that incorporate program costs, customer incentives, and evaluation, measurement, and verification costs. The NPV of the cash flow stream is then levelized over tire Planning Period using the Companys weighted average cost of capital. The costs for both types of resources are then sorted from lowest cost to highest cost and are shown in Figure 6.7.3.

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Figure 6.7.3 - Comparison of per MWh Costs of Selected Generation Resources Comparison of per MWh Capacity Cost ($/MWh) Cost ($/MWh)

Costs of Selected Generation Factor no RECs with RECs Residential Efficient Products Marketplace Program n/a $11 n/a Non-Residential Heating and Cooling Efficiency Program n/a $30 n/a Residential EE Kits n/a 333 n/a Multifamily Program n/a $33 n/a Small Business Improvement Program n/a $37 n/a Non-Residentlal Window Film Program n/a $43 n/a Residential Home Retrofit n/a $44 n/a Residential Customer Engagement Program n/a $46 n/a Non-Residential Lighting Systems and Controls Program n/a 348 n/a Non-Residentlal Office Program n/a $55 n/a Solar 25% 358 349 Non-Residential Small Business Improvement Enhanced n/a 360 n/a Residential Manufactured Housing n/a 360 n/a CC - 3X1 80% 361 n/a Non-Residential Small Manufacturing Program n/a 361 n/a Residential Home Energy Assessment Program n/a 361 n/a Residential Smart Thermostat Management Program (EE) n/a 362 n/a Residential Appliance Recycling Program n/a 364 n/a CC - 2X1 80% 364 n/a Non-Residentlal Midstream EE Products n/a 365 n/a Residential New Construction n/a 367 n/a CC-1X1 80% 370 n/a CC -3X1 w/ CCS 80% 371 n/a Non-Residential New Construction n/a 374 n/a CC -2X1 w/ CCS 80% 380 n/a Wind - Onshore 40% 382 373 Greenfield Nuclear SMR (Unit 1) 92% 392 n/a Wind - Offshore 42% 3101 392 CT 20% 3101 n/a CT (Aero) 20% 3126 n/a Large Nuclear 92% 3139 n/a Biomass 90% 3185 3176 HB 2789 HVAC Component n/a 3188 n/a Fuel Cell 90% 3193 n/a VCHEC w/ CCS 50% 3195 n/a Solar & CT (Aero) 20% 3202 3193 Energy Storage - NREL 15% 3252 $252 Residential Income and Age Qualifying Home Improvement Progran n/a 3258 n/a SC PC w/ CCS 50% 3327 n/a Non-Residential Prescriptive Program n/a 3334 n/a Residential Electric Vehicle EE n/a 3342 n/a Battery Generic (30 MW) 15% 3349 n/a Pump Storage (300 MW) 15% 3624 n/a Notably, the Company does not use levelized costs to screen DSM programs. DSM programs also produce benefits in the form of avoided supply-side capacity and energy cost that should be netted against DSM program cost. The DSM cost-benefit tests are the appropriate way to evaluate DSM programs when comparing to equivalent supply-side options, and are the methods the Company uses to screen DSM programs.

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Chapter 7: Transmission This chapter provides an overview of the transmission planning process, as well as a list of current and future transmission projects. In addition, this chapter provides the results of the ^

system reliability analysis performed to assess the potential effect of retiring all generating units that emit CO2 as a byproduct of combustion by 2045.

7.1 Transmission Planning The Companys transmission system is responsible for providing transmission service: (i) for redelivery to the Companys retail customers; (ii) to Appalachian Power Company, Old Dominion Electric Cooperative (ODEC), Northern Virginia Electric Cooperative, Central Virginia Electric Cooperative, and Virginia Municipal Electric Association for redelivery to their retail customers in Virginia; and, (iii) to North Carolina Electric Membership Corporation and North Carolina Eastern Municipal Power Agency for redelivery to their customers in North Carolina (i.e., collectively, the DOM Zone). Also, several independent power producers (IPPs) are interconnected with the Companys transmission system and are dependent on the Companys transmission system for delivery of their capacity and energy into the PJM market.

The Company is part of PJM, which is currendy responsible for ensuring the reliability of, and coordinating the movement of, electricity through all or parts of Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia, and the District of Columbia. The Company also is part of the Eastern Interconnection transmission grid, meaning its transmission system is interconnected, directly or indirectly, with all of the other transmission systems in the United States and Canada between the Rocky Mountains and the Atlantic Coast, except for Quebec and most of Texas. All of the transmission systems in the Eastern Interconnection are dependent on each other for moving bulk power through the transmission system and for reliability support.

The Companys transmission system is designed and operated to ensure adequate and reliable service to customers while meeting all regulatory requirements and standards. Specifically, the Companys transmission system is developed to comply with the NERC Reliability Standards, as well as the Southeastern Reliability Corporation supplements to the NERC Standards. Federally-mandated NERC Reliability Standards constitute minimum criteria with which all public utilities must comply as components of the interstate electric transmission system. Moreover, the Energy Policy Act of 2005 mandates that electric utilities follow these NERC Reliability Standards and imposes fines for noncompliance of approximately $1.3 million per day per violation.

The Company participates in numerous regional, inter-regional, and sub-regional studies to assess the reliability and adequacy of the interconnected transmission system. The Company is a member of PJM; PJM is registered with NERC as the Companys planning coordinator and transmission planner. Accordingly, the Company participates in the PJM regional transmission expansion plan (RTEP) to develop the RTO-wide transmission plan for PJM.

The PJM RTEP covers the entire PJM control area and includes projects proposed by PJM, as well as projects proposed by the Company and other PJM members through internal planning 116

m processes. The PJM RTEP process includes both a 5-year and a 15-year outlook. The Company w p

is actively involved in supporting the PJM RTEP process.

The Company also evaluates its ability to support expected customer growth through its internal transmission planning process. The results of this evaluation indicates if any transmission &

improvements are needed, which the Company includes in the PJM RTEP process as appropriate. If the need is confirmed, then the Company seeks approval for the transm ission improvements from the appropriate regulatory body.

Additionally, the Company performs seasonal operating studies to identify facilities in its transmission system that could be critical during the upcoming season. The Company coordinates with neighboring utilities to maintain adequate levels of transfer capability to facilitate economic and emergency power flows.

7.2 Existing Transmission Facilities The Company has approximately 6,800 miles of transmission lines in Virginia, North Carol ina, and West Virginia at voltages ranging from 69 kV to 500 kV. These facilities are integrated into PJM.

7.3 Transmission Facilities Under Construction A list of the Companys transmission lines and associated facilities that are under construction can be found in Appendix 7A. Through participation in the PJM RTEP as well as regional, inter regional, and sub-regional studies described in Section 7.1, the Company annually assesses the reliability and adequacy of the interconnected transmission system to ensure the system is adequate to meet customers electrical demands both in the near-term and long-term planning horizons.

7.4 Future Transmission Projects Appendix 3D provides a list of planned transmission projects during the Planning Period, including projected cost per project as submitted to PJM as part of the RTEP process.

7.5 Transmission System Reliability Analysis In order to understand the possible system reliability implications of Alternative Plans C and Dboth of which retire all Company-owned carbon-emitting generation in 2045 resulting in close to zero CO2 emissions from the Companys fleet in 2045the Company performed a power flow analysis by developing a base power flow case and three different scenarios. To conduct this analysis, the Company made numerous simplifying assumptions. Standard transmission planning analysis is conducted in a near-term horizon (years 1 to 5) and a long-term horizon (years 6 to 10). The reliability analysis conducted for the evaluations of Alternative Plans C and D is 15 years and 30 years into the future, which is significantly longer than standard long-term reliability assessment timeframes. Because the timeframe for analysis was for an additional twenty years, the analysis was unable to account for the significant changes to 117

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a the transmission systems topology (e.g., transmission lines, load, generation resources) both in yni

^

the DOM Zone and the Eastern Interconnection that will occur during this timeframe. In @

addition, the planning model used in this analysis models the Eastern Interconnection, which © encompasses all the transmission facilities, generation resources and system loads from ^

essentially the Rocky Mountains to the East Coast. This model incorporates the 2023 year topology of the transmission system and was the base case used for other model changes to perform the future year assessments. The only loads adjusted in this model for the future year assessments were in the DOM Zone, and were scaled up uniformly to levels projected for summer 2035, winter 2035 and summer 2050 based on the growth rates shown in 2020 PJM Load Forecast. The generation resources located in the DOM Zone were modified as discussed below.

In all power flow cases developed for this reliability analysis, approximately 900 MW of ODBC gas-fired generation and approximately 2,900 MW of IPP gas-fired generation was modeled on line on the Companys system, as it is the Companys understanding that the VCEA does not require the retirement of these generating units. Additionally, approximately 21,000 M W of solar and approximately 5,400 MW of offshore wind were modeled as per PJM RTEP protocols (Le., PJM capacity factors used to calculate capacity injection rights).

The four power flow cases modeled all Company-owned carbon-emitting generation in 2045 as off-line (retired), except as modified below:

Power Flow Case 1 (base case): Warren, Greensville and Brunswick County gas-fired CC generating units remained in service for each year under study.

Power Flow Case 2: Warren and Greensville gas-fued CC generating units remained in service for each year under study.

Power Flow Case 3: Warren gas-fued CC generating unit remained in service for each year under study.

Power Flow Case 4: Brunswick, Greensville, and Warren County gas-fired CC generating units off-line (retired) for each year under study.

The initial results of the 2035 and 2050 analysis of all four power flow cases identified NERC reliability deficiencies on twenty-six 115 kV lines, thirty-two 230 kV lines, six 500 kV lines, and eleven transmission transformers that would need to be resolved to avoid NERC violations. The results of these studies are in no way a substitution for the actual generation retirement analysis and generation queue analysis that any generator must follow as part of PJMs RTEP process, especially if they are or want to be considered a PJM capacity resource.

Based on the summer 2035, winter 2035 and summer 2050 peak load runs described above, a first contingency incremental transfer capability analysis was performed. This analysis indicated that for Alternative Plans C and D, the Companys transmission system is not capable of importing the amounts of energy required without the development of significant interregional transfer capability or the addition of significant generation resources (as discussed below) in the DOM Zone, which would need to be directly connected to the Companys transmission system in order to be available to serve both the peak winter and peak summer loading conditions. The interregional transfer capability would be added by the addition of new multi-state transmission 118

lines (Interregional Transmission Lines). These multistate lines would have to interconnect with generation resources located in the PJM system and terminating in major load centers in Virginia, like Northern Virginia, the Richmond metropolitan area, and the Hampton Roads metropolitan area. These Interregional Transmission Lines could be either alternating current (AC) or direct current (DC) transmission lines. The Trail Project, built in 2006 at a cost of approximately $1.2 billion and going from Pennsylvania to West Virginia to Virginia, was the most recent type of interregional transmission facility built on the PJM system. Further, additional generation resources located in the DOM Zone would be needed in order to address the amount of intermittent renewable resources being added to the system in the Planning Period.

These generation resources would need to be quick start and capable of continued operation that is not impacted by weather conditions.

As shown in die Figure 5.6.2.2, Alternative Plans A, B, C, and D require the Companys transmission system to be able to import 5,200 MW to serve the DOM Zone load in the Planning Period, and between 5,200 MW (Alternative Plans A and B) and 10,400 MW (Alternative Plans C and D) to be able to serve DOM Zone load in the Study Period. The transmission impacts related to each of the Alternative Plans is summarized below.

Plan A - Normal transmission planning expected with no additional transmission level import increase required to maintain 5,200 MW of import capability. Since Alternative Plan A has a smaller portion of its generation resources that are impacted by weather conditions (i.e., renewable generation) and fewer generation retirements, this alternative still reflects the DOM Zone operating in a firm operational state not dependent upon weather conditions.

Plan B - Normal transmission planning expected with no additional transmission level import increase costs required to maintain 5,200 MW of import capability. While Alternative Plan B has a larger amount of solar, energy storage, and offshore wind resources added as compared to Alternative Plan A, Plan B preserves approximately 9,700 MW of natural gas-fired generation to address future system reliability, stability, and energy independence issues as compared to Alternative Plan A and, therefore, construction of Interregional Transmission Lines are not anticipated.

Plan C - This alternative will require additional transmission level import increase costs in order to construct Interregional Transmission Lines to obtain 10,400 MW of import capability. Alternative Plan C has a larger amount of solar, energy storage, and offshore wind resources added as compared to Alternative Plan A, as well as significantly more generation retirements of the existing DOM Zone generation fleet as compared to Alternative Plan A. As a result, four Interregional Transmission Lines would need to be constructed at a placeholder estimated cost of approximately $8.4 billion.

Plan D - This alternative will require additional transmission level import increase costs in order to construct Interregional Transmission Lines to obtain 10,400 MW of import capability. While Alternative Plan D has a larger amount of solar resources added than Alternative Plan C and a larger amount of energy storage and offshore wind resources added as compared to Alternative Plan A, based on capacity factors, there is no change in the amount of generation retirements of the existing DOM Zone generation fleet as 119

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compared to Alternative Plan C. As a result, four Interregional Transmission Lines y??

would need to be constructed at a placeholder estimated cost of $8.4 billion. a Importantly, this analysis is high level, preliminary and made with numerous simplifying assumptions. Extensive additional analysis is needed over time. For example, this analysis does not address analysis and costs that arise from the loss of tradi tional rotating synchronous generators. Transitioning from traditional rotating synchronous generation to inverter-based

(/.£., intermittent renewable) solar- and wind-powered resources and the addition of large-scale energy storage facilities (e.g., battery and pumped storage) will change the very nature of the electric grid, and requires a fundamental reevaluation of the electric grid for based on two primary results:

The loss of dispatchable, or controllable generation and challenges associated with the addi tion of large-scale energy storage facilities; and

The loss of stored kinetic energy.

Traditional generation sources are large rotating turbines usually powered by either heated steam or falling water, and therefore these generation sources and their output can be both predicted and controlled. Controlling the output of these generators is achieved by regulating the input supply of water or steam. Inverter-based generation relies on resources (e.g., the sun and the wind) that cannot be controlled or predicted in this way. As a result, these generation sources are not dispatchable in response to changes in electrical demand and can be unavailable to serve peak loading conditions. This is the first fundamental difference that must be addressed.

Currendy, one of the ways PJM manages this is by calculating a dependable capacity rating for intermittent resources. This dependable capacity rating is what is required to be used in transmission planning analysis as part of PJMs FERC-approved RTEP process. Whi le this capacity rating is designed to match the average output of intermittent resources in a region during peak summer loading conditions, it misses the range of conditions that the electric system may have to withstand, such as timeframes when intermittent generation output is close to 100%

of its nameplate rating or during winter loading conditions when, for example, the solar generation output is essentially zero. The addition of large-scale storage facilities can support these challenges with solar- and wind-based resources, but these storage facilities will create new challenges themselves that must be addressed.

One essential challenge with the addition of large-scale storage facilities on the Companys system is that it will result in a significant increase in peak system load requirements. Storage will primarily be discharged (i.e., behaving like a generator) at night time to serve system load when solar output across the system is zero. Therefore, the storage facilities will charge (i.e.,

behaving like a load) during daylight hours, contributing to the peak system load conditions that occur across the daylight hours, like a summer peak load. For example, approximately 9,930 MW of storage could potentially be added as system load in Alternative Plans C and D, significantly increasing the peak load that the Companys transmission system must reliably serve consistent with NERC reliability criteria. It is also critical to note that the storage facilities must be charged up and available to serve the night tune load; therefore, during daylight hours the uses of these storage facilities will be very limited, as the primary use must be charging up to be ready for the night time load.

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The loss of stored kinetic energy is a more technical concern. The rotation of traditional turbines creates a reservoir of kinetic energy that automatically provides support when problems arise and balances the myriad of instantaneous discrepancies between generation and load at any moment in time. Inverter-based generation does not provide such a reservoir. This correlates to several areas of study that have not historically been necessary to consider during transmission system planning studies and analyses, but will be essential going forward. Today, these include the areas of study listed below, but the Company expects this list to grow and evolve over time.

Inertia and frequency control;

Short-circuit system strength;

Power quality;

Reactive resources and voltage control;

System restoration and black start capabilities;

Grid monitoring and control capabilities;

Energy storage requirements; and

High-voltage direct current (HVDC).

7.5.1 Inertia and Frequency Control Electrical inertia is the capacity of a system to resist changes in electrical frequency, which is the real-time balance between generation and load. Electrical inertial response acts to overcome an immediate imbalance between power supply and demand. Electrical inertia is directly related to the reservoir of stored kinetic energy inherent to the traditional rotating synchronous generators on the system. Inertia is what allows the electric grid to control the frequency deviations that occur all the time, which are caused by events such as load changes, transmission and distribution outages, generation shedding, and system instability. Inverter-based solar- and wind-powered resources have no rotating components and, as a result, typically do not contribute to system inertia. This can lead to significant problems in managing system frequency, leading to a less reliable electric grid under high penetration of inverter-based generation resources. This problem must be studied and resolved over time with new frequency control strategies and technologies that must be designed, tested, and implemented on the system. Tins could include new technologies and concepts that are being explored and researched now, including the emulation of inertia in inverter control systems.

7.5.2 Short-circuit System Strength A short circuit, also known as a fault, is an undesirable electrical connection, such as a tree branch falling across electrical lines. When these short circuit events occur, it is critical to remove from service the faulted energized equipment as quickly as possible to ensure personnel and public safety, prevent or reduce equipment failure, and maintain the stability of the electric grid. This is done today in the timeframe of milliseconds to seconds by protection and control systems that are comprised of relays, circuit breakers, reclosers, and fuses installed across the entire system. In todays electric grid, a short cucuit typically results in a spike in electrical current to that point and depressed voltage around the location of the fault. This occurs today because traditional rotating synchronous generators supply this significant amount of current during short-circuit events. The protection and control systems in operation today, across the 121

entire system in generation plants, transmission and distribution substations, distribution circuits, and even inside customer facilities and homes, are all primarily designed to remove short circuit events by the detection of very high current.

Inverter-based generation resources (e.g., solar and wind) do not provide any significant increase in current during short circuit events; rather they provide either no change in current or only a very nominal amount during the short circuit events. As traditional rotating synchronous generators are retired and replaced with more and more inverter-based generation, it is expected that the system will experience a fundamental change in short circuit behaviors across all levels of the grid, specifically lowering the currents and strength of short circuits. This will cause the Companys existing protection and control systems installed across the entire system to have major challenges in detecting these short circuit events and protecting the system, personnel, and the public. This problem must be studied and resolved over time, looking into new technologies that must be designed, tested, and implemented, such as new grid devices that provide fault current or new protection and control schemes on generation, transmission, distribution, and customer facilities that are have new designs and operating characteristics.

7.5.3 Power Quality All standards for grid-tied systems set demands on the quality of the power supply. These systems have previously drawn from the centralized reservoir of kinetic energy previously discussedthe dispatchable nature of traditional generation and the fundamental frequency of the electric grid (/'.<?., 60 Hertz (Hz)). Electric grids dominated by inverter-based generation resources face challenges to reliable operation on two power quality aspects. First, the non-controllable variability of solar and wind resources leads to voltage and frequency fluctuations that require mitigation in order to balance the instantaneous supply and demand across the electric grid. Second, inverters operate by creating harmonic frequencies, multiples of the 60 Hz fundamental, and these harmonics can cause a variety of issues including reduced system transmission capacity and premature aging of electrical equipment. These power quality issues will have to be studied and resolved over time.

7.5.4 Reactive Resources and Voltage Control Electrical generation can be divided into real power and reactive power. Real power does actual work (e.g., creating heat and light). Reactive power supports electromagnetic fields required to control voltage levels and move real power across the electric grid. Traditional voltage regulation devices that adjust reactive power are traditional rotating synchronous generators, transformer load tap changers, voltage regulators, capacitor banks, and reactor banks. The variability (due to weather patterns) and historical operation of inverter-based resources will, cause added voltage variability on the system, requiring the implementation of technologies that can automatically mitigate this variability to maintain stable voltage across the system. An example of these technologies is Flexible Alternative Current Transmission System (FACTS) devices, with the two most conunon devices being static volt-ampere reactive compensators, and static synchronous compensators (STATCOMs). Another example is the concept of using the inherent ability of inverters to help control voltage. These technologies need to be studied, 122

7.5.5 System Restoration and Black Start Capabilities E==>

Large-scale blackouts negatively impact the public, the economy, and the power system itself. A proper black start system restoration plan can help to restore power quickly and effectively.

Black startwhich restores electric power stations and the electric grid without relying on external connectionsis the most critical scenario for system restoration. A black start unit is a generator that can start from its own power without the support from the power grid, which is essential in the event of a major system collapse or a system-wide blackout. Black start units, and the generation included in the system restoration plan, must be available 24/7 and must have constant and predictable output when operational. These requirements provide difficulties for solar- and wind-generation resources, causing challenges to future black start restoration plans that will need to be studied and resolved. In addition, current black start restoration procedures start from the transmission system and quick start synchronous generation stations and then work towards restoring the distribution system. However, with significant DERs, system restoration procedures will need be evaluated to account for these DERs, including investigation into new DER technology like grid-forming inverters used in microgrids.

7.5.6 Grid Monitoring and Control Capabilities Electricity demand that has historically been inelastic is becoming more variable and dynamic due to rapid growth of DERs. Greater temporal granularity is required to understand coincidence of system loading and DER production. Furthermore, DER production and performance contain inherent uncertainty that must be considered. Additionally, the dynamics of system loadi ng itself is changing as new equipment and resources are integrated as unmeasured / unmetered resources, impacting the ability to understand and forecast these quantities. Low visibility and lack of control is a key problem for customer-level DERs such as roof-top or community solar, battery storage, electric vehicle charging infrastructure, and DSM. As DERs increase across the grid, investments in additional grid monitoring resources and equipment are vital. A robust and secure communications network is especially important to ensure bandwidth capacity and satisfy communication latency requirements for monitoring and control systems. The Company has proposed investments that will provide this level of granularity at the distribution level as part of its Grid Transformation Plan, as discussed further in Section 8.3. As these investments are deployed, and as the Company develops the integrated distribution planning process discussed further in Section 8.1, the outputs generated by integrated distribution planning will feed into and inform further analyses related to required controls at the transmission level.

Beyond monitoring, maintaining grid stability requires robust coordination between inverter controls, grid system protection and control systems, and electrical equipment loading capabilities. In-progress updates to the Institute of Electrical and Electronics Engineers (IEEE) Standard 1547 will provide industry guidance on how inverter-based generation should provide automatic local (decentralized) voltage and frequency control and system disturbance ride through functionality. Decentralized control is not yet perfected, and the benefits of centralized control should still be weighed against potential failure modes inherent to 123

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and most reliable monitoring and control options possible. The Company is actively engaged in © both tlie IEEE-1547 standards evaluation as well as research and development of inverter-based <@

grid support functionality.

7.5.7 Energy Storage Requirements Due to the intermittence and uncertainty of wind and solar generation, energy storage is vital.

Excess energy from peak generation periods could also be collected with an energy storage system and released when load outpaces supply. However, significant study is needed to determine the requirements for efficient, reliable, cost-effective, and safe utilization of energy storage. Location, safety and environmental concerns, and end-of-life must be explored for all energy storage technologies and options. These battery storage pilot program discussed further in Section 8.5 will provide the Company with valuable insight and experience toward deployment of BESS in the future 7.5.8 High-voltage Direct Current AC transmission cable systems are a mature technology, and the cost of ITVDC technology is considerably higher than traditional AC transmission lines. This higher cost is mainly due to the converter stations at both ends of the DC connection. However, any AC cable length over six miles requires costly reactive power compensation infrastructure such as reactor banks, STATCOMs, or other FACTS devices. HVDC cables do not have this reactive power compensation requirement. Due to this, the cost per unit length of an HVDC line may be significantly less than a comparable high-voltage AC line over long distances. This potential lower cost is especially important when considering offshore generation and interregional transmission transfer capabilities to other areas of the system.

Other potential HVDC benefits include higher power transfer capability, smaller right-of-way requirements, lower power losses, dynamic real and reactive power control, fault ride-through, greater system strength tolerance, inertial emulation, frequency control, power oscillation damping, and black start capability. Since this HVDC technology is relatively new, the Company must rigorously study each of these applications along with other advanced control schemes to assure that it can deliver safe, reliable, and affordable power before implementing HVDC solutions.

7.5.9 Summary of Preliminary Results In summary, the results and issues identified in this section are high level and preliminary in nature and the Company made several simplifying assumptions. As die parameters of the VCEA are identified and developed in greater detail, a comprehensive transmission plan will be developed that addresses these new technical challenges the transmission system will face.

Nevertheless, Alternative Plans C and D will severely challenge the ability of the transmission system to meet customers reliability expectations. For example, prolonged cold weather or multiple days of clouds and rain will greatly challenge the transmission system operators who must balance load and generation resources in real-time operations, while also maintaining 124

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Ur3 compliance with NERC reliability requirements. While the Company will be able to develop a ^

transmission expansion plan that will allow for the reliable operation of the transmission system q consistent with tire parameters identified in the VCEA, this expansion plan will require an >

investment level that exceeds current transmission level expenditures and will likely exceed the ^

future transmission level costs initially identified in this 2020 Plan. ^

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Chapter 8: Distribution The Companys obligation to provide safe and reliable service carries on as the Company transitions toward a cleaner energy future. In fact, providing reliable and resilient service becomes inherently more important during this transition where availability of extensive DERs and expanding electrification are added essentials. As the distribution grid evolves to support a more dynamic energy system, the Company must continuously identify new scenarios and solutions to ensure safe and reliable service. Those solutions will likely include emerging technologies such as comprehensive distributed energy resource management systems, distribution-level STATCOMs, and customer-owned assets leveraged for grid support as non wires alternatives. Regardless of which solutions are implemented, a robust telecommunication infrastructure that provides real-time situational awareness and supports analysis and control of grid components will be essential for an adaptable and responsive distribution system.

This chapter provides an overview of the distribution planning process, and an overview of current initiatives related to the distribution grid.

8.1 Distribution Planning Current distribution planning methodologies and processes were designed for a distribution grid in a world of centralized large-scale generation and a one-way power flow. In the evolving paradigm where DERs and other emerging technologies are increasing on the distribution grid causing two-way power flows, the Companys distribution planning process must also evolve.

Distribution grids with high penetration levels of inverter-based generation resources at the feeder level face challenges to reliable operation on two power quality aspects. First, the non-controllable variability of solar and wind resources leads to voltage fluctuations that require mitigation. Second, inverters operate by creating harmonic frequencies, multiples of the 60 Hz fundamental; these harmonics can cause a variety of challenges including reduced distribution grid capacity and premature aging of electrical equipment. These power quality issues, along with tire emerging changes in the distribution grids utilization, will have to be studied and solutions will have to be incorporated over time.

In September 2019, the Company filed a white paper that provided a detailed overview of the Companys current distribution planning process, the limitations of the current process, and the integrated distribution planning (IDP) process that the Company planned to implement going forward (the 2019 IDP White Paper). Appendix 8A provides the 2019 IDP White Paper.

As discussed in Section 4.0 of the 2019 IDP White Paper, true LDP will require changes to peoples skills, the technologies and tools they use, and processes for performing planning activities. The Company has made progress on some of the identified enhancements:

Section 4.1 - People. The Company has completed the centralization of modeling and analysis activities and continues to evaluate its organizational structure as integrated distribution planning matures.

Section 4.2 - Technologies. The Company continues to evaluate options for advancing ^

IDP. Without the granular- data and situational awareness from full deployment of AMT, @

intelligent grid devices, and control systems proposed as part of the Grid Transformation Plan, die evolution of IDP will continue to be limited based on the technologies that the ^

Company currently has deployed.

Section 4.3 - Processes and Tools.

o Process Enhancement 1 - Comprehensive Feeder Level Forecasting. The Company has developed initial net metering and utility-scale DER forecasts at the feeder level based on feeder head data where available. These forecasts will be integrated with the traditional feeder-level seasonal peak load forecast in support of long-term capacity planning on the distribution grid. With just a portion of residential customer energy usage data being collected by AMI, the Company continues to refine data analytics that approximate the peak demand of non-AMI metered residential customers based upon monthly billing data. This enhancement continues to be limited to forecasting peak demands.

o Process Enhancement 2 - Hosting Capacity Analysis. The Company is on track to complete an initial hosting capacity analysis and make hosting capacity maps publicly available on the Companys website by the end of 2020. This initial analysis will be static based on the limited data inputs that are available.

Improvements to the hosting capacity analysis will require additional data providing more granular visibility of the grid.

o Process Enhancement 3 - Multi-Hour Capacity Planning Analysis. The Company has engaged in a research and development project wi th E.PRI focused on modernizing distribution planning using automated processes and tools. The project is a multi-year effort with the objective of developing, testing, and demonstrating new methods and tools to automate planning assessments and support holistic decision-making in support of integrated distribution planning.

Similar to the hosting capacity analysis, specific Grid Transformation Plan investments that gather highly granular grid data are necessary to support robust distribution grid analysis.

o Process Enhancement 5 - Non-Wires Alternatives Analysis. The Company has started work on two battery storage pilot projects as discussed further in Section 8.5, one of which will study batteries as a non-wires alternative to reduce transformer loading. Additionally, the Company is preparing to start working on the Locks Campus Microgrid Demonstration Project that was recently approved as part of the Grid Transformation Plan. Aspects of non-wires alternative analysis are included in the EPRl research project discussed above. In the shorter term, the Company is engaged with EPRl on the development of tools to identify metrics, analytics, and practices for efficient screening of non-wires alternative projects based on economic suitability and technical feasibility. The objective of this effort is to enable more rapid determination of non-wires alternative feasibility and viability and support effective integration of DER into future resource plans. This research is a part of EPRIs 2020 research portfolio with prototype results expected by the end the year.

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© 8.2 Existing Distribution Facilities The Companys existing distribution system in Virginia consists of more than 53,000 miles of overhead and underground cable, and over 400 substations operating at distribution voltage levels ranging from 4 kV to 46 kV. The distribution system utilizes a variety of devices for ftmctions from voltage control to power flow management, and relies on multiple operating systems for various functions from customer billing to outage management.

Section III of the executive summary of the Grid Transformation Plan filed in Case No. PUR-2019-00154 (the GT Plan Document) provided a detailed description of the Companys existing distribution system.

8.3 Grid Transformation Plan With the passage of the GTSA, Virginia declared electric distribution grid transformation to be in the public interest, and mandated that utilities file a plan for grid transformation. The GTSA required that any such plan shall include both measures to facilitate integration of distributed energy resources and measures to enhance physical electric distribution grid reliability and security.

The Company set forth its comprehensive plan to transform its electric distribution grid to facilitate the integration of DERs, to enhance reliability and security, and to improve the customer experiencethe Grid Transformation Plan. The GT Plan Document described the need for grid modernization, the state of the existing distribution system, the development of the Grid Transformation Plan, an overview of the Grid Transformation Plan itself, and the associated customer benefits.

The Company has sought approval of the first three years of its ten-year Grid Transformation Plan (/.e., 2019, 2020, and 2021) in two separate proceedings before the SCC, Case Nos. PUR-2018-00100 and PUR-2019-00154. The GT Plan Document includes information on the need, costs, and benefits of each of the proposed investments. Over these two proceedings, the SCC has approved as reasonable and prudent investments in (i) a customer information platform; (ii) a hosting capacity analysis; (iii) the Locks Campus Microgrid Project; (iv) mainfeeder hardening; (v) targeted corridor improvement; (vi) voltage island mitigation; (vii) telecommunications; (viii) physical and cyber security; and (ix) a Smart Charging Infrastructure Pilot Program to support managed charging for EVs. The SCC recently denied, without prejudice to the Company seeking approval of the Grid Transformation Plan in future petitions, investments in (i) AMI; (ii) a self-healing grid; (iii) advanced analytics; (iv) an enterprise asset management system; and (v) proactive component upgrades. Because of the preparation schedule associated with this 2020 Plan, for purposes of theNPV results, the Company has incorporated the costs and benefits as filed in Case No. PUR-2019-00154.

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The passage of the VCEA has further emphasized the need for grid transformation. The VCEA requires energy efficiency programs to achieve annual targets that reach 5% by 2025, using a 2019 baseline. Full deployment of AMI across the Companys service territory enables advanced rate options, such as time-varying rates; enhances DSM programs by providing the energy usage data that will enable more targeted suggestions to customers for measures to optimize customers energy savings; and provides the interval data to refine evaluation, measurement, and verification. AMI also enables voltage optimization, which, as can be seen in the forecast provided in Section 4.1.5, provides an effective energy efficiency program. The VCEA also envisions a significant build out of solar and wind resources. Much of this capacity would likely be connected to the distribution grid, including the 1,100 MW of small-scale solar.

The situational awareness enabled by a self-healing, digital grid would prove invaluable to siting, interconnecting, and managing this significant level of renewable resources where it makes the most sense in terms of costs and benefits. Paired with the full deployment of AMI and other future divestments, a self-healing, digital grid will enable more advanced and dynamic hosting capacity analysis, as well as advancements in integrated distribution planning as discussed in Section 8.1. Overall, the Grid Transformation Plan is vital to achieving the clean energy goals discussed in this 2020 Plan.

8.4 Strategic Undergrounding Program The Company is continuing the SUP, which is in its seventh year. Originally conceived as a 4,000 mi le program in 2014, the Company has converted approximately 1,325 m iles of outage-prone overhead tap lines as of January 2020. A legislative sunset clause currently requires the SUP to conclude in 2028. More details on the SUP are available in the Companys annual filings with the SCC, which specify the miles of tap lines converted and their location, tap line reliability performance pre- and post-conversion, and system-wide reliability statistics.

Both local and system-wide benefits are key aspects of the SUP. Specifically, the SUP was designed to shorten restoration times in severe weather events by reducing the number of labor-intensive work locations associated with outage-prone single phase overhead tap lines, especially those in the rear of houses with significant tree coverage. By converting those tap lines to underground, directly served customers will either see a shorter outage or no outage. Perhaps more importantly, this enables crew redeployment to other outage locations, allowing a faster recovery after severe weather events for the benefit of all customers. The SUP remains the most effective and comprehensive solution for eliminating work associated with systemic tap line outages, and is complemented by (lie mainfeeder hardening program in the Grid Transformation Plan, which targets mainfeeders serving customers with the poorest reliability.

8.5 Battery Storage Pilot Program The Company is beginning to study the use of battery energy storage systems on its distribution system through the pilot program established by the GTSA. The SCC recently approved the deployment of two BESS on the distribution system in Case No. PUR-2019-00124:

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Through BESS-1, the Company will deploy a 2 MW/4 MWh AC lithium-ion BESS that p will study tire prevention of solar back-feeding onto the transmission grid at a substation © located in New Kent County; and

Through BESS-2, the Company will deploy a 2 MW/4 MWh AC lithium-ion BESS that p will study batteries as a non-wires alternative to reduce transformer loading at a substation located in Hanover County.

The SCC also approved deployment of a lithium-ion BESS at the Companys Scott Solar Facility to study solar plus storage.

These BESS provide the Company the opportunity to study important statutory objectives, and the information and experience gained from each will provide valuable insight and experience toward deployment of BESS in the future. The Company continues to explore additional unique energy storage use cases for future consideration within the battery storage pilot program.

8.6 Electric School Bus Program The Companys Electric School Bus Program combines the Companys efforts with energy storage technologies and electric vehicles, while at the same time assisting customers decarbonization efforts. In addition to reducing the carbon footprint of the Commonwealth and improving air quality for students, tire batteries in electric school buses can be used to increase the stability and reliability of the grid, and can help to facilitate the integration of renewable energy resour ces such as solar and wind onto the distribution system. In Phase I of this Program, the Company intends to bring 50 electric school buses to 16 localities in the Companys service territory by the end of 2020.

This Electric School Bus Program, coupled with a modernized grid, will allow the Company to gain understanding and knowledge related to (i) the changes in system loading due to increased adoption of electric vehicle technology; (ii) the managed charging strategies necessary to accommodate a large presence of EVs on the grid; (iii) V2G technology that leverages bus batteries to store and inject energy onto the grid during periods of high demand when the buses are not needed for transport; and (iv) strategic deployment of EVs as resources for the benefit of customers and the grid.

8.7 Rural Broadband Pilot Program The Company plans to participate in tire pilot program established by House Bill 2691 from the 2019 Regular Session of tire Virginia General Assembly to support the delivery of broadband service to unserved areas in Virginia. Through the broadband pilot program, the Company plans to leverage tire telecommunications infrastructure deployed as part of the Grid Transformation Plan by using a portion of the fiber capacity to meet its own distribution system needs, and then leasing another portion to an internet service provider. By utilizing the telecommunication infi-astructure for both operational needs and broadband access, the Company can reduce broadband deployment costs for internet service providers, which these providers would then use to deliver high-speed internet access to unserved residences and business. The Company has partnered with a subsidiary of Prince George Electric Cooperative to extend access to 130

ESE@©-ES)(!)S approximately 2,400 Company customers and 1,200 cooperative members in Surry County currently not offered broadband services. Additionally, the Company has entered into a memorandum of understanding with All Points Broadband, Northern Neck Electric Cooperative, and the Counties of King George, Northumberland, Richmond, and Westmoreland to advance a regional broadband partnership that aims to deliver fiber-optic broadband service to unserved households and businesses in Virginias Northern Neck region.

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Chapter 9: Other Information This chapter provides other information in response to specific SCC or NCUC requirements. 4B 9.1 Customer Education The Company is committed to improving the customer experience. Key to achieving this goal is educating customers about their energy consumption and how to manage their costs, and empowering customers to take advantage of the numerous enhanced customer capabilities enabled by the Grid Transformation Plan and other initiatives.

The Companys customer education initiatives include providing demand and energy usage information, educational opportunities, and online customer support options to assist customers in managing their energy consumption and taking advantage of new incentives and offerings.

Website and Supporting Print Collateral State: Virginia and North Carolina The Dominion Energy website is a main hub for public education. The Company offers program- and project-specific information, factsheets, brochures, videos, and other supporting documents to provide background and updates on the benefits and enhanced capabilities associated with a variety of investments and initiatives. These include, but are not limited to, approved elements of the Grid Transformation Plan, major infrastructure projects, and new offerings (such as rates, tools and mobile apps) as they become available.

https://www.dominionenergv.com Social Media State: Virginia and North Carolina The Company uses the social media channels of Twitter and Facebook to provide real-time updates on energy-related topics, promote Company messages, and provide two-way communication with customers. The Company also manages pages on YouTube and Instagram for further outreach to the general public, residential customers, and business customers. Linkedln is leveraged for reaching commercial and industrial customers.

The Companys Twitter account is available online at: https://twitter.com/dominionenergv The Companys Facebook account is available online at:

https://www.facebook.com/dominionenergv The Companys YouTube account is available online at https://www.voutube.com/user/DomCorpComm The Companys Instagram account is available online at https://www.instagram.com/dominionenergy/.

The Companys Linkedln account is available online at https://www.linkedin.eom/companv/dominionenergv//

News Releases State: Virginia and North Carolina The Company prepares news releases and reports on the latest developments regarding its customer-facing initiatives and provides updates on Company offerings and recommendations 132

Customer Information Platform State: Virginia and North Carolina The customer information platformrecently approved by the SCC as part of the Grid Transformation Planwill enable the Company to provide customers with better information.

For example, customers will be able to utilize various notification, billing, and pay options to more easily monitor usage and to take advantage of new rate structures and rate comparison tools. Overall, with the new capabilities and customer functionality within the customer information platform, customers will be in a better position to save time and money.

Energy Conservation Programs State: Virginia and North Carolina The Companys website has a section dedicated to energy conservation that contains helpful information for both residential and non-residential customers, including information about tire Companys DSM programs. Dozens of programs are featured on the website and include eligibility guidelines, program details, steps to enroll, and success stories, as well as contact information to speak with program specialists. Through consumer education using a variety of channels to reach multiple customer classes, the Company is working to encourage the adoption of energy-efficient technologies in residences and businesses in Virginia and North Carolina.

Online Energy Calculators State: Virginia and North Carolina The Company is committed to helping customers save on their energy bills and provides saving tips and a Lower My Bill Guide on the Company website. Home and business energy calculators are provided as well to estimate electrical usage for homes and business facilities. The calculators can help customers understand specific energy use by location and discover new means to reduce usage and save money. For customers considering the environmental impact of transportation choices, a calculator is offered to compare emissions and cost savings of cars side-by-side with more efficient hybrid or all-electric vehicles. An appl iance energy usage calculator and holiday lighting calculator are also available to customers. The energy calculators are available at: https://www.dominionenergv.com/home-and-small-business/wavs-to-save/energy-saving-calculators.

Community Outreach - Trade Shows, Exhibits, and Speaking Engagements State: Virginia and North Carolina The Company conducts outreach seminars and speaking engagements in order to share relevant energy conservation program information to both residential and commercial audiences. The Company also participates in various trade shows and exhibits at energy-related events to educate customers on the Companys programs and inform customers and communities about the importance of implementing energy-saving measures in homes and businesses and taking advantage of new rates and offerings as they become available. Company representatives positively impact the communities the Company serves through presentations to elementary, middle, and high school students about its programs, wise energy use, and environmental stewardship. Additional partnerships with the educational community are offered through 133

w mentoring initiatives, philanthropic support and other means to strengthen science, technology, engineering, and mathematics competitiveness in an effort help prepare students for tomorrows m workplace. Information on educational grants, scholar-ships, and programs for teachers and students is available on the Companys website at:

https://www.dominionenergv.com/comDanv/communitv/educational-programs For example, Project Plant It! is an educational community learning program available to students in the service areas where the Company conducts business. The program teaches students about the importance of trees and how to protect the environment through a variety of hands-on teaching tools such as a website with downloadable lesson plans for use at home and in classrooms, instructional videos, and interactive games. To enhance the learning experience, Project Plant It! provides each enrolled student with a redbud tree seedling to plant at home or at school. Since 2007, more than 500,000 tree seedlings will have been distributed to children in states where the Company operates. According to the Virginia Department of Forestry, this equates to about 1,250 acres of new forest if all the seedlings are planted and grow to maturity.

Visit website for more information, https://proiectplantit.com/.

9.2 Effect of Infrastructure Programs on Overall Resource Plan The SCC directed an analysis of how the deployment and costs of infrastructure programs on the Companys transmission and distribution systems affect the Companys overall resource plan, including the Grid Transformation Plan, the Underground Transmission Line Pilot, the Battery Storage Pilot, and the Strategic Undergrounding Program. The following sections discuss each program in turn. Overall, the Grid Transformation Plan and the Battery Storage Pilot should directly affect the Companys overall resource plan in the future by facilitating the integration of DERs, and by potentially lowering demand through enhanced DSM. Deployment of these investments and further analysis is needed before the Company can quantify the reduction in costs associated with these effects on the proposed build plans.

9.2.1 Grid Transformation Plan Many of the Grid Transformation Plan components described in Section 8.3 will have a meaningful influence on the Companys overall resource plan in the future, enabling awareness and analysis that will be critical for the Company to adapt to significant renewable capacity growth in the coming years.

As discussed in Section 8.1, the Company plans to implement an integrated distribution planning process going forward, which will provide inputs into future resource planning. Specifically, IDP will entail advanced distribution modeling and analysis capabilities that consider a range of possible futures where varying levels of DERs and emerging technologies are adopted on the distribution grid. Mature IDP is dependent on having highly granular and spatial visibility of existing grid conditions that is not available today; many of the Grid Transformation Plan components are foundational to IDP, including AMI, intelligent grid device, secure telecommunications infrastructure, and an advanced distribution management system with system capabilities for distributed energy resources management. In addition, advanced analytics are necessary to process this data, and provide the processes to suitably model the 134

behavior of the entire distribution grid including the renewable resources. These applications y?j can analyze weather patterns along with past generation profiles and forecast die generation that @

will be available from the DERs. Advanced analytics will also highlight opportunities for non-wires alternatives to be evaluated. As IDP capabilities increase, the Company can include a ^

quantification of aggregate DER impacts to the Companys overall resource plan.

As part of the Grid Transformation Plan, the Company will make static hosting capacity maps for both utility-scale and net metering DER publicly available by the end of 2020. The situational awareness enabled by hosting capacity analysis will prove invaluable to siting, interconnecting, and managing significant levels of DER. As AMI and intelligent grid devices are deployed, and as grid visibility and operational capabilities increase, the hosting capacity analysis will become more dynamic and will support opportunities to reduce interconnection costs when DER output can be informed and adjusted through non-firm DER capacity agreements to avoid grid limitations utilizing a distributed energy resources management system.

The Grid Transformation Plan will also facihtate the integration of DERs by enhancing the reliability and resiliency of the grid, increasing the availability of the output from these DERs.

Specifically, the mainfeeder hardening program will reduce sustained outages on poorly performing feeder segments, improving availability on outage prone mainfeeders to support both utility-scale and residential DERs.

Finally, the Grid Transformation Plan includes the Locks Campus Microgrid Demonstration Project. This pilot project marries several DER technologies and, similar to the Battery Storage Pilot, will provide the research and operational experience needed to prove the viability of advanced grid support capabilities, non-wires alternatives, and other functionality of DER on the Companys distribution grid.

In addition to facilitating the integration of DERs, the Grid Transformation Plan will affect the overall resource plan by potentially lowering demand dirough enhanced DSM. As discussed in Section 8.3, AMI enables advanced rate options, such as time-varying rates; enhances DSM programs by providing energy usage data that will enable more targeted suggestions to customers for measures to optimize energy savings; and provides the interval data needed for more refined evaluation, measurement, and verification. In addition, AMI enables voltage optimization, which can lead to significant energy savings, as discussed in Section 4.1.5. The Grid Transformation Plan also includes the Smart Charging Infrastructure Pilot Program, which will provide the information needed in furtherance of future managed charting pilots, programs, or rate designs that will support EV adoption while minimizing the impact of EV charging on the distribution grid. Managing increasing EV charging load could also minimize costs for the Company and its customers, such as the need for additional distribution upgrades or the need for more fast ramping peaker plants.

9.2.2 Battery Storage Pilot Program The Battery Storage Pilot Program discussed in Section 8.5 will provide the Company the opportunity to study important statutory objectives, and the information and operational experience gained from each project will provide valuable insight and experience toward 135

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integration of the significant energy storage capacity. Indeed, one of the pilot projects seeks to study solar plus storage, with both AC- and DC-coupled BESS, the results of which will inform © tire deployment of this paired application in the future.

us 9.2.3 Underground Line Programs Two of the Companys infrastructure programs relate to undergrounding linesthe Strategic Undergrounding Program and the Underground Transmission Line Pilot. As discussed in Section 8.4, the Strategic Undergrounding Program converts the most outage-prone electric distribution tap lines to underground to improve customer reliability. An indirect benefit of the SUP to the overall resource plan may be to support expanded residential DER by improving availability on the formerly outage-prone tap lines. The Underground Transmission Line Pilot contemplates two underground electric transmission projects to further the Companys understanding of underground electric transmission lines. The purposes of these programs differ from the Grid Transformation Plan and the Battery Storage Pilot Program, and any potential benefits to the overall resource plan are indirect.

9.3 GTSA Mandates Figure 9.3.1 provides a list of mandates from the GTSA and the accompanying citation to the GTSA. The sections that follow outline these mandates and detail the Companys plans related to each one. Several provisions of the GTSA encourage specific public policies, such as greater deployment of renewable energy, without taking the form of a mandate.

Figure 9.3.1 - GTSA Mandates Mandate Citation Evaluate in future Plans: (i) electric grid transformation projects, (ii) energy Va. Code §56-599; efficiency measures, and (iii) combined heat and power or waste heat to power EC 12; EC 18 Adjust rates to reflect the reduction in corporate income taxes EC 6; EC 7 Provide one-time, voluntary bill credits EC 4; EC 5 Offer Manufacturing and Commercial Competitiveness Retention Credit EC File triennial review Va. Code §56-585.1; Va.

Code §56-585.1:1 Report on potential improvements to renewable programs EC 17 Report on economic development activities EC 16 Report on the feasibility of providing broadband using utility infrastructure EC 13 Report on energy efficiency programs by an independent monitor EC 15 Va. Code §56-596.2 Fund energy assistance and weatherization pilot program Va. Code §56-585.1:2 Propose a plan to deploy 30 MW of battery storage under new pilot program Va. Code §56-585.1:6 (EC 9; EC 10)

Propose a plan for electric distribution grid transformation projects_____________ Va. Code §56-585.1 A 6 Propose a plan for energy conservation measures with a projected cost of no less Va. Code §56-596.2 than $870 million________________________________________________________ (EC 15j Note: EC = Enactment Clause 136

w t=a m

This 2020 Plan includes all of the analyses required by Va. Code §56-599, including long-term planning related to the distribution grid and energy efficiency measures. In this Plan, the ^

Company considered combined heat and power as a possible generation resource as required by Enactment Clause 12 of the GTSA, as discussed in Section 5.5. Finally, Section 6.6 provides the analysis related to energy efficiency measures required by Enactment Clause 18 of the GTSA.

9.3.2 Rate-Related Mandates The GTSA contained a number of mandates related to customer rates. The Company has complied or will comply with each of these provisions:

The Company reduced its rates for generation and distribution services by $182,574 million to reflect the reduction in corporate income taxes under the federal Tax Cuts and Jobs Act of 2017 consistent with Enactment Clauses 6 and 7 of the GTSA. See SCC Case No. PUR-2018-00055.

The Company issued one-time, voluntary generation and distribution services bill credits totaling $200 million consistent with Enactment Clauses 4 and 5 of the GTSA. See SCC Case No. PUR-2018-00053.

The Company began offering a Manufacturing and Commercial Competitiveness Retention Credit, designated Rider CRC, to eligible customers consistent with Enactment Clause 11 of the GTSA. See SCC Case No. PUR-2018-00133.

The Company will make a triennial review filing by March 31, 2021.

9.3.3 Mandated Reports The GTSA mandated a list of reports for the Company to file with the SCC and others. The Company has filed the following reports:

Solar Energy Report (Nov. 1, 2018) (EC 17);

Economic Development Report (Dec. 1, 2018) (EC 16);

Broadband Feasibility Report (Dec. 1, 2018) (EC 13); and

The Report of the Independent Monitor on the Status of the Energy Efficiency Stakeholder Process (Jun. 28, 2019) (EC 15, Va. Code §56-596.2).

9.3.4 Pilot Program Mandates The GTSA contained two mandates related to pilot programs. First, under the amended language in Va. Code §56-585.1:2, the Company must continue its pilot program for energy assistance and weatherization for low income, elderly, and disabled individuals at no less than $13 million for each year the utility is providing such service. The Company has continued this pilot program and has met the required funding. 137

m w

p Second, the GTSA required the SCC to establish a pilot program for storage batteries. The SCC l established guidelines for this pilot program on November 2, 2018, in Case No. PUR-2018- ^

00060. The SCC approved the Companys first application to participate in the pilot program on ^

February 14, 2020, allowing for the deployment of three BESS projects totaling 16 MW.

9.3.5 Mandate Related to Electric Distribution Grid Transformation Projects The GTSA mandated that the Company petition the SCC for approval of a plan for electric distribution grid transformation projects. Section 8.3 provides details on the Companys Grid Transformation Plan.

9.3.6 Mandate Related to Energy Conservation Measures The GTSA directed the Company to develop a proposed program of energy conservation measures with a proposed cost of no less than $870 million by July 1, 2028, and established an energy efficiency stakeholder process. See Chapter 6 for more details on the Companys DSM initiatives.

9.4 Economic Development Rates As of March 1, 2020, the Company has seven unique customers located in Virginia receiving service under economic development rates. The total load associated with these rates is approximately 154 MW. As of March 1, 2020, the Company has no customers in North Carolina receiving service under economic development rates.

138

Virginia State Corporation Commission m eFiling CASE Document Cover Sheet m Case Number (if already assigned) PUR-2020-00035 Case Name (if known) Commonwealth of Virginia, ex rel. State Corporation Commission, In re: Virginia Electric and Power Companys Integrated Resource Plan filing pursuant to Va. Code §56-597 et seq.

Document Type OTHR Document Description Summary proceeding the 2020 Integrated Resource Plan of Virginia Electric and Power Company Total Number of Pages 49 Submission ID 18653 eFiling Date Stamp 5/1/2020 2:12:49PM

APPENDIX Appendix 2A - Plan A - Capacity & Energy Capacity 30.000 28.000 26,000

24,000 -

PJM Capacity Auction (Actual) I usri l

______ - ~ -

14,000 rfr n)> nfe n£> <A /ft nj' /^U r£> nj>

V V ^ ^ V V ^ 'V 'V 'V 'V V *P 'V *P Energy

^ ^ & -<& ^ nj5 ^ ccf> <^5a -*<> ^ c&

c^1' ^ ^ ^ ^ &

Notes: Existing Generators + NUGS also include generation under construction; DR = demand response; EE = energy efficiency; PP5 = Possum Point Unit 5 (oil); CH5&6 = Chesterfield Units 5 & 6 (coal); YT3 = Yorktown Unit 3 (oil);

CL1&2 = Clover Units 1 & 2 (coal); Rose = Rosemary (oil).

bS

<S^

Appendix 2A cont. - Plan B - Capacity & Energy Capacity 30,000 28,000 l-fr 164 16,000 Existing Generators + NUGs 16,633

~T~

14,000

^^^^^ ^^^^^^

Energy 50,000

^ ^ $ $ / $ rf rf ^ rf ^ ^ ^

Notes: 'Existing Generators + NUGS also include generation under construction; DR = demand response; EE = energy efficiency; PP5 = Possum Point Unit 5 (oil); CH5&6 = Chesterfield Units 5 & 6 (coal); YT3 = Yorktown Unit 3 (oil);

CL1&2 = Clover Units I & 2 (coal); Rose = Rosemary (oil); AV = Altavista (biomass); HW" = Hopewell (biomass);

SH = Southampton (biomass).

M m

m m

(pa Appendix 2A cont. - Plan C - Capacity & Energy HB Capacity m 30,000 yy y

14,000 1 cOk" cT?' rfl? rfl^ cflk5 ^S* ^ J& J& J* ^ <vl' 'y1 ^

V V V V 'F V V V V ^ V V V V Energy 50,000

-/ ^ ^ /#/ /^ ^ ^^^

Notes: Existing Generators + NUGS also include generation under construction; DR = demand response; EE = energy efficiency; PP5 = Possum Point Unit 5 (oil); CH5&6 = Chesterfield Units 5 & 6 (coal); YT3 = Yorktown Unit 3 (oil);

CLI&2 = Clover Units 1 & 2 (coal); Rose = Rosemary (oil); AV = Altavista (biomass); HW = Hopewell (biomass);

SH = Southampton (biomass).

Appendix 2A cont. - Plan D - Capacity & Energy Capacity 30.000 -I 28.000 -

26,000 24,000 PJM l 22,000 Capacity Auction (Actual)

^ PIM Capacity Auction 14,000 rQ> rf> nj> >>iy>

^ ^ ^ ^ ^ ^ rfr tp* <$? r£>* <*£>

Energy

/ / ^ ^ ^ ^ ^ /* ^ ^

Notes: Existing Generators + NUGS also include generation under construction; DR = demand response; EE = energy efficiency; PP5 = Possum Point Unit 5 (oil); CH5&6 = Chesterfield Units 5 & 6 (coal); YT3 = Yorktown Unit 3 (oil); CLI&2

Clover Units 1 & 2 (coal); Rose = Rosemary (oil); AV = Altavista (biomass); HW = Hopewell (biomass); SH

Southampton (biomass).

Appendix 3A - Generation under Construction Company Name: Virginia Electric and Power Company Schedule 15a UNIT PERFORMANCE DATA Planned Supply-Side Resources (MW)

Primary Fuel MW MW Unit Name Location Unit Type C.O.D. (D Annual Firm Nameplate TVPe Under Construction Spring Grove 1 Solar VA kitermittent Solar 2021 34 98 Sadler Solar VA htermittent Solar 2021 34 100 CVOW Demonstration Pilot 12' Solar + Storage Battery Pilot VA Storage Solar 2021 12 Notes: 1) Commercial Operation Date.

2) Accounts for line losses.

Appendix 3B - Planned Generation under Development Company Name: Virginia Electric and Power Company Schedule 16c UNIT PERFORMANCE DATA w.

Planned Supply-Side Resources (MW)

MW MW Unit Name Location Unit Type Primary Fuel Type C.O.D.'(2)

Summer Nameplate Under Development*11 Surry Unit 1 Nuclear Extension VA Baseload Nuclear 2032 838 875 Surry Unit 2 Nuclear Extension VA Baseload Nuclear 2033 838 875 North Anna Unit 1 Nuclear Extension VA Baseload Nuclear 2038 838 868 North Anna Unit 2 Nuclear Extension VA Baseload Nuclear 2040 834 863 Solar 1 VA Intermittent Solar 2022 42 Solar 2 VA Intermittent Solar 2022 118 Solar 3 VA Intermittent Solar 2022 85 Solar 4 VA Intermittent Solar 2022 20 Combustion Turbine 1 VA Peaker Natural Gas 2023 485 485 Combustion Turbine 2 VA Peaker Natural Gas 2024 485 485 Offshore Wind Block 1 VA Intermittent Wnd 2026 852 Offshore Wnd Block 2 VA Intermittent Wind 2027 852 Offshore Wind Block 3 VA kitermrttent Wind 2027 852 Tazewell Pump Storage VA Storage Water 2030 300 300 Notes: 1) Includes the additional resources under development in the Alternative Plans.

2) Estimated commercial operation date.

Appendix 3C - Comparison of Short-Term Action Plans for Generation Resources in 2018 Plan and 2020 Plan Supply-Side Resources New Conventional New Renewable Retire Demand-side Resources US-3 Solar 2 Approved DSM CVOW PP 5 202J SLR (600 MW) 2022 GT SLR (480 MW)

CT YT3, CH 5-6 BESS (14 MW) 2023 SLR (480 MW) 2024 CT SLR (780 MW) 2025 SLR (480 MW) CL 1-2 Key: Retire: Remove a unit from service; BESS: Battery Energy Storage Systems; CH: Chesterfield Power Station; CL: Clover Power Station; CT: Combustion Turbine; CVOW: Coastal Virginia Offshore Wind Demonstration Pilot; PP: Possum Point Power Station; SLR: Generic Solar; US-3 Solar 2: Spring Grove 1 Solar Facility; YT: Yorktown Power Station.

Color Key: Blue: Updated resource since 2018 Plan; Red with Strike: 2018 Plan resource replacement; Black: No change from 2018 Plan.

to Appendix 3D - List of Planned Transmission Projects During the Planning Period P.IM RTEP Cost l.inc Tenniiuils Voltage Luca tin n Estimates (kV)

(SM)

Sandlot 230 kV DeUvep- - DEV 230 Mar-20 VA 5.5 Freedom Substation (Redundant 69 kV Facility) 69 Mar-20 VA 5.4 Fork Union Sub to mitigate Bremo Units 3 & 4 Reserve Status 115; 230 Apr-20 VA 27.0 Line #548 Valley Switching Station Fixed Series Capacitors 500 Apr-20 VA 16.8 replacement________________________________________

Line #547 Lexington Substation Fixed Series Capacitors 500 Apr-20 VA 17.7 Replacement_____________________________________

Gordonsville Transformer #3 Replacement 230/115 May-20 VA 3.5 Skippers - New 115 kV Switching Station 115 May-20 VA 8.0 Genito 230 kV Delivery Point - DEV 230 May-20 VA 10.0 Spring Hill 230 kV Delivery 230 May-20 VA 35.0 Idylwood - Convert Straight Bus to Breaker-and-a-Half 230 May-20 VA 103.1 Line #217 Chesterfield to Lakeside Rebuild 230 May-20 VA 41.5 Line #211 and #228 Chesterfield to Hopewell Partial Rebuild 230 May-20 VA 28.5 Line #2199 Remington to Gordonsville - New 230 kV Line 230 May-20 VA 112.0 Line #86 Partial Rebuild Project 115 May-20 VA 7.0 Greenwich Substation - New line #120 Breaker 115 May-20 VA 1.5 Line #549 Dooms to Valley Rebuild 500 Jun-20 VA 62.3 Paragon Park 230 kV Delivery - DEV 230 Jul-20 VA 2.5 Winterpock 230 kV Delivery and 230 kV Ring Bus 230 Sep-20 VA 8.5 Line #76 and #79 Yorktown to Peninsula Rebuild 115 Oct-20 VA 24.5 Columbia Tap - CVEC 115 Oct-20 VA 7.0 Dawsons Crossroads - Delivery Point (HEMC) 115 Nov-20 NC 0.7 Global Plaza 230 kV Delivery - DEV 230 Nov-20 VA 40.0 Winters Branch 230 kV New Substation 230 Dec-20 VA 7.1 Line #112 Fudge Hollow to Lowmoor Rebuild 138 Dec-20 VA 12.6 Perimeter 230 kV DP - NOVEC 230 Dec-20 VA 8.0 Line #231 Landstown to Thrasher Rebuild 230 Dec-20 VA 19.0 Buttermilk 230 kV Delivery - DEV 230 Dec-20 VA 11.0 Line #154 Twittys Creek to Pamplin Rebuild 115 Dec-20 VA 18.1 Line #101' Mackeys to Creswell Rebuild 115 Dec-20 NC 36.7 Poland Road 230 kV Delivery - Add 4th Transformer - DEV 230 Dec-20 VA 2.0 Clarksville Tap Line 193 Rebuild 115 Dec-20 VA 3.2 Peninsula Transformer #4 Replacement and 230 kV Ring Bus 230 Apr-21 VA 16.1 Clover Substation - New 500 kV STATCOM and Rawlings 500 May-21 VA 47.0 Switching Station - New 500 kV ST ATCOM_____________

Farmwell 230 kV Delivery 230 May-21 VA 6.2 Evergreen Mills 230 kV Delivery 230 May-21 VA 27.8 Ladysmith 2nd 500-230 kV Transformer 230 May-21 VA 25.0 Line #274 Pleasant View to Beaumeade Rebuild 230 Jun-21 VA 10.0 Line #2176 Gainesville to Haymarket and Line #2169 Haymarket 230 Jul-21 VA 176.0 to Loudoun - New 230 kV Lines and New 230 kV Substation Lucky Hill Substation 115;230 Jul-2I VA 7.5 Varina Substation 230 Nov-21 VA 0.9 PTC 230 kV Delivery - DEV 230 Nov-21 VA 25.0 Line #49 New Road to Middleburg Rebuild 115 Dec-21 VA 12.7 Line #65 Norris Bridge Rebuild 115 Dec-21 VA 103.0 Line #550 Mount Storm to Valley Rebuild 500 Dec-21 WV-VA 288.2 Line #120 Dozier to Thompsons Corner Partial Rebuild 115 Dec-21 VA 12.6

Appendix 3D cont. - List of Planned Transmission Projects During the Planning Period iffiSg IMM R'l l l*

Cost Line Terminals Estimates

($M)

Line #127 Buggs Island to Plywood Rebuild 115 Dec-21 VA 42.4 Line #16 Great Bridge to Hickory and Line #74 Chesapeake 115 Dec-21 VA 27.0 Energy Center to Great Bridge Rebuild__________________

New Switching Station to Retire Line #1392 Everetts to Windsor 115 Dec-21 NC 11.5 DP;Line #139 Everetts to Windsor DP Retirement Line #2008 Partial Rebuild and Line #156 Retirement 115;230 Dec-21 VA 14.5 Line #128 Rebuild Mt. Jackson -SVEC 115 Dec-21 VA 13.1 Line #2023 and Line #248 Potomac Yards Undergrounding &

230 May-22 VA 120.0 Glebe GIS Conversion Mt. Storm - GTS 500 May-22 WV 69.0 Line #2001 Possum Point to Occoquan Reconductor and Uprate 230 Jun-22 VA 4.7 Line #43 Staunton - Harrisonburg Rebuild 115 Jun-22 VA 39.6 Lockridge 230 kV Delivery - DEV 230 Jul-22 VA 35.0 Nimbus 230 kV Delivery - DEV 230 Nov-22 VA 20.0 Line #2175 Idylwood to Tyson's - New 230 kV Line 230 Dec-22 VA 121.8 Line #552 Blisters to Chancellor Rebuild 500 Dec-22 VA 62.2 Line #2473 Suffolk to Swamp Rebuild 230 Dec-22 VA-NC 31.0 Line #205 and #2003 Chesterfield to Tyler Partial Rebuild 230 Dec-22 VA 11.1 Line #29 Fredericksburg to Possum Point Partial Rebuild 115 Dec-22 VA 19.2 Line #295 and Partial Line #265 Rebuild 230 Dec-22 VA 15.5 Line #2173 - Loudoun to Elklick Rebuild 230 Dec-22 VA 13.5 Line #21444 Winfall to Swamp Rebuild 230 Dec-22 NC 6.0 Judes Ferry 230 kV DP 230 May-23 VA LI Fines Comer 230 kV DP 230 May-23 VA 1.0 Brickyard 230kV Delivery 230 May-23 VA 2.0 Possum Point 2nd 500-230 kV Transformer 500/230 Jun-23 VA 21.0 Line #227 Partial Rebuild 230 Jun-23 VA 15.8 Possum Point Breakers Replacement 230 Jun-23 VA 19.0 Prince Edward 230 kV DP 230 Nov-23 VA 1.2 Line #581 Chancellor - Ladysmith 500 kV Rebuild 500 Dec-23 VA 44.4 Line #34 Skiffes Creek to Yorktown and Line #61 Whealton to 115 Dec-23 VA 24.2 Yorktown Partial Rebuild and FortEustis Tap Rebuild Line #224 Lanexa to Northern Neck Rebuild 230 Dec-23 VA 86.0 Lines #265, 200, and 2051 Partial Rebuild 230 Dec-23 VA 11.5 Line #141 & Line #28 Rebuild 115 Dec-23 VA 20.0 Line #574 Elmont to Ladvsmith Rebuild 500 Dec-24 VA 65.5 Line #2113 Waller to Lightfoot Partial Rebuild 230 Dec-24 VA 4.0 Line #2154 and # 19 WaUer to Skiffes Creek Rebuild 230 Dec-24 VA 10.0 Lines #2063 and Partial #2164 Rebuild 230 Dec-24 VA 22.0 Line #813 and Partial Line #20566 RebuOd 115; 230 Dec-24 NC 25.0 Line #254 Clubhouse-Lakeview Rebuild 230 Dec-24 VA 27.0 Line #21817 and Line #20587 Hathaway to Rocky Mount (DEP) 230 Dec-24 NC 13.0 Rebuild Line #569 Loudoun - Morrisville Rebuild 500 Dec-24 VA 4.5 Notes: 1) Line #101 capacity will be 262 MV A.

2) Line #139 capacity was 33 MVA.

3) Line #247 capacity will be 1,047 MVA.

4) Line #2144 capacity will be 1,047.

5) Line #81 capacity will be 262 MVA.

6) Line #2056 capacity will remain at 470 MVA.

7) Line #2181 and Line #2058 both capacities will be 1,047 MVA.

y I#

Appendix 4A - Total Sales by Customer Class (DOM LSE) (GWh)

<<§ Street Sales ms Public and Residential Commercial Industrial for u Authority Traffic Resale Lighting 2009 29,904 28,455 8,644 10,448 276 1,909 79,635 2010 32,547 29,233 8,512 10,670 281 1,980 83,223 2011 30,779 28,957 7,960 10,555 273 2,013 80,538 2012 29,174 28,927 7,849 10,496 277 1,947 78,671 2013 30,184 29,372 8,097 10,261 276 1,961 80,150 2014 31,290 29,964 8,812 10,402 261 1,850 82,579 2015 30,923 30,282 8,765 10,159 275 1,620 82,024 2016 28,213 31,366 8,715 10,161 253 1,599 80,307 2017 29,737 32,292 8,638 10,555 258 1,515 82,994 2018 32,139 33,591 8,324 10,761 260 1,633 86,707 2019 31,439 35,296 7,302 10,645 263 1,580 86,524 2020 31,636 31,512 9,155 11,074 260 1,521 85,159 2021 31,790 33,177 8,978 11,190 258 1,530 86,923 2022 32,104 35,346 8,858 11,252 256 1,545 89,360 2023 32,467 37,733 8,750 11,381 254 1,562 92,147 2024 32,964 39,350 8,723 11,480 252 1,584 94,353 2025 32,384 41,842 8,510 11,451 250 1,597 96,034 2026 32,459 43,287 8,492 11,526 248 1,615 97,628 2027 32,674 45,057 8,522 11,558 246 1,632 99,689 2028 32,950 46,814 8,557 11,621 244 1,653 101,839 2029 32,859 47,833 8,476 11,697 242 1,664 102,770 2030 32,926 49,050 8,450 11,744 241 1,678 104,089 2031 32,981 50,198 8,442 11,627 239 1^694 105,182 2032 33,134 51,510 8,448 11,818 238 1,712 106,860 2033 33,090 52,463 8,452 11,705 236 1,721 107,667 2034 33,302 53,370 8A07 11,800 234 1_J34 108,848 2035 33,478 54,223 8,385 11,712 233 1,747 109,778 Note: Based on the Companys internal forecast; information not provided by PJM Load Forecast Historic (2009 - 2019). Projected (2020 - 2035).

Appendix 4B - Virginia Sales by Customer Class (DOM LSE) (GWh)

Street Sales Public and Residential Commercial Industrial for Authority Traffic Resale Lighting 2009 28,325 27,646 7,147 10,312 268 1,860 75,558 2010 30,831 28,408 6,872 10,529 273 1,928 78,842 2011 29,153 28,163 6,342 10,423 265 1,962 76,309 2012 27,672 28,063 6,235 10,370 269 1,897 74,507 2013 28,618 28,487 6,393 10,134 267 1,911 75,809 2014 29,645 29,130 6,954 10,272 253 1,798 78,052 2015 29,293 29,432 7,006 10,029 266 1,567 77,593 2016 26,652 30,537 6,947 10,033 245 1,547 75,961 2017 28,194 31,471 6,893 10,429 250 1,466 78,704 2018 30,437 32,752 6,598 10,633 252 1,581 82,254 2019 29,829 34,472 5,591 10,517 254 1,530 82,194 2020 30,016 30,651 7,011 10,952 251 1,473 80,355 2021 30,162 32,287 6,875 11,067 250 1,481 82,122 2022 30,460 34,425 6,783 11,128 248 1,495 84,539 2023 30,805 36,779 6,700 11,256 246 1,512 87,298 2024 31,276 38,360 6,680 11,354 244 1,533 89,447 2025 30,726 40,793 6,516 11,326 242 1,546 91,149 2026 30,797 42,205 6,503 11,400 240 1,563 92,708 2027 31,001 43,933 6,526 11,432 238 1,580 94,710 2028 31,263 45,650 6,553 11,494 236 1,600 96,795 2029 31,176 46,644 6,490 11,569 234 1,610 97,725 2030 31,240 47,834 6,471 11,615 233 1,624 99,017 2031 31,293 48,954 6,465 11,499 231 1,640 100,082 2032 31,438 50,236 6,469 11,689 230 1,657 101,719 2033 31,396 51,167 6,472 11,576 228 1,666 102,505 2034 31,597 52,053 6,438 11,671 227 1,679 103,664 2035 31,764 52,885 6,421 11,584 225 1,691 104,570 Note: Based on the Companys internal forecast; information not provided by PJM Load Forecast.

Historic (2009 - 2019). Projected (2020 - 2035).

H1 Appendix 4C - North Carolina Sales by Customer Class (DOM LSE) (GWh)

Street Sales Public and Residential Commercial Industrial for Authority Traffic Resale Lighting 2009 1,579 809 1,497 136 49 4,078 2010 1,716 825 1,640 141 52 4,381 2011 1,626 795 1,618 132 51 4,230 2012 1,502 864 1,614 126 50 4,165 2013 1,567 885 1,704 127 50 4,341 2014 1,645 834 1,858 130 53 4,527 2015 1,630 850 1,759 130 53 4,431 2016 1,562 829 1,768 128 52 4,346 2017 1,542 821 1,744 126 49 4,290 2018 1,701 839 1,725 128 52 4,453 2019 1,610 824 1,710 127 50 4,331 2020 1,620 861 2,144 122 49 4,805 2021 1,628 890 2,103 123 49 4,801 2022 1,644 922 2,075 123 49 4,822 2023 1,663 954 2,049 125 50 4,849 2024 1,688 990 2,043 125 51 4,906 2025 1,658 1,048 1,993 125 51 4,885 2026 1,662 1,082 1,989 126 52 4,919 2027 1,673 1,123 1,996 126 52 4,980 2028 1,687 1,164 2,004 127 53 5,044 2029 1,683 1,188 1,985 128 53 5,046 2030 1,686 1,217 1,979 129 54 5,073 2031 1,689 1,243 1,977 127 54 5,099 2032 1,697 1,274 1,979 130 55 5,142 2033 1,694 1,296 1,980 128 55 5,162 2034 1,705 1,318 1,969 129 55 5,185 2035 1,714 1,337 1,964 128 56 5,208 Note: Based on the Companys internal forecast; information not provided by PJM Load Forecast.

Historic (2009 - 2019). Projected (2020 - 2035).

S3 p

Appendix 4D - Total Customer Count (DOM LSE)

Street Sales and Residential Commercial 1 Industrial for Authority Traffic Resale Lighting 2009 2,139,604 232,148 581 29,073 2,687 2,404,097 2010 2,157,581 232,988 561 29,041 2,798 2,422,972 2011 2,171,795 233,760 535 29,104 3,031 2,438,227 2012 2,187,670 234,947 514 29,114 3,246 2,455,495 2013 2,206,657 236,596 526 28,847 3,508 2,476,138 2014 2,229,639 237,757 631 28,818 3,653 2,500,500 2015 2,252,438 239,623 662 28,923 3,814 2,525,463 2016 2,275,551 240,804 654 29,069 3,941 2,550,022 2017 2,298,894 242,091 648 28,897 4,149 2,574,683 2018 2,323,662 243,701 644 28,716 4,398 2,601,124 2019 2,362,949 246,043 634 28,452 4,792 2,642,873 2020 2,373,004 236,493 632 28,511 4,880 2,643,523 2021 2,397,785 238,577 631 28,622 5,024 2,670,642 2022 2,426,050 240,878 630 28,724 5,168 2,701,454 2023 2,456,258 243,310 629 28,828 5,312 2,734,341 2024 2,485,951 245,712 628 28,921 5,456 2,766,671 2025 2,515,062 248,076 627 29,003 5,600 2,798,371 2026 2,543,549 250,402 626 29,077 5,744 2,829,401 2027 2,571,023 252,665 625 29,142 5,888 2,859,346 2028 2,596,911 254,830 624 29,200 6,032 2,887,600 2029 2,621,217 256,893 623 29,248 6,176 2,914,161 2030 2,644,614 258,898 622 29,289 6,320 2,939,747 2031 2,667,401 260,865 621 29,325 6,464 2,964,679 2032 2,689,708 262,801 620 29,356 6,608 2,989,095 2033 2,711,563 264,708 619 29,383 6,752 3,013,029 2034 2,733,000 266,590 618 29,407 6,896 3,036,514 2035 2,754,158 268,453 617 29,427 7,040 3,059,698 Note: Based on the Companys internal forecast; information not provided by PJM Load Forecast.

Historic (2009 - 2019). Projected (2020 - 2035).

<0 yrl N3 Appendix 4E - Virginia Customer Count (DOM LSE) @

Street Ui Sales Public and Residential Commercial Industrial for Authority Traffic Resale Lighting 2009 2,038,843 216,663 522 27,206 2,290 2,285,525 2010 2,056,576 217,531 504 27,185 2,404 2,304,202 2011 2,070,786 218,341 482 27,252 2,639 2,319,502 2012 2,086,647 219,447 464 27,265 2,856 2,336,680 2013 2,105,500 221,039 477 26,996 3,118 2,357,131 2014 2,128,313 222,143 579 26,966 3,267 2,381,269 2015 2,150,818 223,946 611 27,070 3,430 2,405,877 2016 2,173,472 225,029 603 27,223 3,560 2,429,889 2017 2,196,466 226,270 596 27,041 3,768 2,454,143 2018 2,220,797 227,757 594 26,872 4,017 2,480,039 2019 2,257,900 229,988 584 26,614 4,417 2,519,505 2020 2,267,955 219,287 583 26,680 4,457 2,518,964 2021 2,291,639 221,226 582 26,784 4,589 2,544,821 2022 2,318,653 223,367 581 26,880 4,720 2,574,203 2023 2,347,523 225,630 581 26,977 4J352 2,605,564 2024 2,375,902 227,864 580 27,064 4,983 2,636,395 2025 2,403,724 230,064 579 27,141 5,115 2,666,623 2026 2,430,950 232,227 578 27,210 5,246 2,696,214 2027 2,457,208 234,333 577 27,271 5,378 2,724,768 2028 2,481,950 236,347 576 27,325 5,509 2,751,709 2029 2,505,180 238,267 575 27,370 5,641 2,777,035 2030 2,527,541 240,132 574 27,408 5,772 2,801,430 2031 2,549,319 241,962 573 27,442 5,904 2,825,202 2032 2,570,638 243,763 572 27,471 6,036 2,848,482 2033 2,591,526 245,538 571 27,496 6,167 2,871,301 2034 2,612,014 247,288 570 27,519 6,299 2,893,692 2035 2,632,235 249,021 569 27,538 6,430 2,915,796 Note: Based on the Companys internal forecast; information not provided by PJM Load Forecast.

Historic (2009 - 2019). Projected (2020 - 2035).

Appendix 4F- North Carolina Customer Count (DOM LSE)

Street Sales Public and Residential Commercial Industrial for Authority Traffic Resale Lighting 2009 100,761 15,485 59 1,867 398 118,572 2010 101,005 15,457 56 1,857 395 118,771 2011 101,009 15,418 53 1,852 392 118,725 2012 101,024 15,501 50 1,849 390 118,815 2013 101,158 15,557 50 1,851 390 119,007 2014 101,326 15,614 52 1,853 386 119,231 2015 101,620 15,677 52 1,853 384 119,586 2016 102,079 15,775 51 1,846 381 120,133 2017 102,429 15,821 52 1,857 381 120,541 2018 102,865 15,944 50 1,844 381 121,085 2019 105,049 16,055 50 1,838 375 123,368 2020 105,049 17,206 49 1,831 423 124,559 2021 106,146 17,351 49 1,838 435 125,820 2022 107,398 17,511 49 1,845 448 127,251 2023 108,735 17,680 49 1,851 460 128,776 2024 110,049 17,848 49 1,857 473 130,277 2025 111,338 18,012 49 1,862 485 131,748 2026 112,599 18,174 49 1,867 498 133,188 2027 113,815 18,332 49 1,871 510 134,578 2028 114,961 18,483 48 1,875 523 135,891 2029 116,037 18,626 48 1,878 535 137,126 2030 117,073 18,766 48 1,881 548 138,317 2031 118,082 18,903 48 1,883 560 139,477 2032 119,069 19,038 48 1,885 572 140,614 2033 120,037 19,171 48 1,887 585 141,728 2034 120,986 19,302 48 1,888 597 142,822 2035 121,922 19,431 48 1,890 610 143,902 Note: Based on the Companys internal forecast; information not provided by PJM Load Forecast.

Historic (2009 - 2019). Projected (2020 - 2035).

Appendix 4G - Zonal Summer and Winter Peak Demand (MW) Company Load Forecast m

ta Summer , Winter Peak Year Peak Demand ;l Demand (MW) i (MW) 2009 18,137 18,079 2010 19,140 17,689 2011 20,061 17,532 2012 19,249 16,881 2013 18,763 17,623 2014 18,692 19,784 2015 18,980 21,651 2016 19,538 18,948 2017 18,902 19,661 2018 19,244 21,232 2019 19,607 19,930 2020 20,258 18,908 2021 20,448 19,196 2022 20,709 19,656 2023 21,037 20,129 2024 21,433 20,575 2025 21,738 21,044 2026 22,048 21,609 2027 22,361 21,942 2028 22,678 22,440 2029 22,914 22,745 2030 23,109 23,169 2031 23,300 23,605 2032 23,479 23,868 2033 23,669 24,016 2034 23,869 24,295 2035 24,128 24,702 Historic (2009 - 2019). Projected (2020 - 2035).

Appendix 4H - Projected Summer & Winter Peak Load & Energy Forecast for Plan B Company Name: Virginia Electric and Power Company Schedule 1 I. PEAK LOAD AND ENERGY FORECAST (ACTUAL)*'1 (PROJECTED) 2017 2018 2019 2020 2022 2028

1. Utility Peak Load (MW)

A. Summer la. Base Forecast 16,350 16,528 16,599 16,533 16,802 17,105 17,399 17,644 17,807 16,004 18,170 18,323 18,456 18,601 18,759 18,977 19,121 19.251 19,357 lb. Additional Forecast NCEMC

2. Conservation, Efficiency^ -109 -119 -135 -190 -572 -676 -637 -599 -565

3. Demand Response*2^ -66

-70 -58 -63 -63 -66 -66 -66 -66

4. Demand Response-Existing*2*3*

5. Peak Adjustment

6. Adjusted Load 16,241 16,409 16,464 16,389 16,612 16,846 17,053 17,213 17,294 17,432 17,493 17,689 17,843 17,964 18,112 18,279 18,523 18,672 18,792

7. % Increase in Adjusted Load -3.4% 1.0% 0.3% -0.5% 1.4% 1.4% 1.2% 0.9% 0.5% 0.8% 0.4% 1.1% 0.9% 0.7% 0.8% 0.9% 1.3% 0.8% 0.6%

(from previous year)

B. Winter la. Base Forecast 16,618 17,792 16,842 17,004 17,356 17,711 18,074 18,448 18,621 18,807 19,008 19,168 19,371 19,537 19,676 19,839 19,974 20,120 lb. Additional Forecast NCEMC

2. Conservation, Efficiency*5* -109 -119 -135 -240 -340 -216 -292 -589 -579 -575 -791 -670 -693 -598 *589 -582

3. Demand Response*2*4* -107 -111

-110

4. Demand Response-Existing*2**3*

-1 -1 -2 -2 -2 -2 -2 -2 -2 -2 -2 -2 -2 -2

5. Adjusted Load 16,509 17,673 16,707 16,497 16,664 17,140 17,419 17,670 17,936 18,032 16,068 18,429 18,593 18,580 18,867 18,983 19,241 19,385 19,538

6. % Increase in Adjusted Load 2.7% 7.1% -5.5% -1.3% 1.0% 2.9% 1.6% 1.4% 1.5% 0.5% 0.2% 2.0% 0.9% -0.1% 1.5% 0.6% 1.4% 0.8% 0.8%

2. Energy (GWh)

A. Base Forecast 84,046 88,377 87,078 88,786 90,435 92,700 94,893 97,428 98,378 99,347 100,353 101,679 102,426 103,269 104,160 105,372 105,950 106,870 107,920 B. Additional Forecast Future BTI^1 C. Conservation & Demand Response51 -660 -727 -801 -1,166 -1,395 -1,524 -1,580 -1,596 -1,594 -1,586 -1,598 -1,612 -1,606 -1,590 -1,589 -1.578 -1,586 D. Demand Response-Existing*2151 E. Adjusted Energy 83,386 87,650 86,277 87,641 89,420 91,534 93,498 95,905 96,798 97,751 98,760 100,094 100,827 101,657 102,554 103.782 104,361 105,292 106,334 F. % Increase in Adjusted Energy -0.9% 5.1% -1.6% 1.8% 1.8% 2.4% 2.1% 2.6% 0.9% 1.0% 1.0% 1.4% 0.7% 0.8% 0.9% 1.2% 0.6% 0.9% 1.0%

Notes: 1) Actual metered data.

2) Demand response programs are classified as capacity resources and are not included in adjusted load.

3) Historical numbers include existing DSM programs. For forecasted numbers, the Company included adjustments for energy efficiency, retail choice, and voltage optimization as discussed in Sections 4. L.3, 4.1.4, and 4.1.5 of the Plan, which are not included in the above numbers.

4) Actual historical data based on measured and verified EM&V results.

5) Actual historical data based upon measured and verified EM&V results. Projected values represent modeled DSM firm capacity.

6) Future behind-the-meter, which is not included in the base forecast.

Appendix 41 - Required Reserve Margin for Plan B Company Name: Virginia Electric and Power Company Schedule 6 POWER SUPPLY DATA (continued)

(ACTUAL) (PROJECTED) 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 L Reserve Margin11

1. Summer Reserve Margin a MW*1 3,799 2,946 3,399 3,480 3,387 2,746 2,125 2,042 1,846 2,500 3,305 3,523 3,898 4,568 4,767 5,149 5,249 6,413 6,638

b. Percent of Load 23.2% 17.8% 20.5% 21.2% 20.4% 16.3% 12.5% 11.9% 10.7% 14.3% 18.9% 19.9% 21.8% 25.4% 26.3% 28.2% 28.3% 34.3% 35.3%

c. Actual Reserve Margin12 N/A N/A N/A 20.0% 18.6% 14.8% 10.4% 9.4% 7.7% 11.1% 15,0% 16.3% 18.4% 21.9% 22.7% 24.4% 25.1% 31.2% 32.3%

2. Winter Reserve Margin a MW*1 N/A N/A N/A 4,343 4,170 3,095 2,025 1,525 829 1,154 1,668 1,311 1,200 1,518 1,229 1,316 1,057 1,884 1,735

b. Percent of Load N/A N/A N/A 26.3% 25.0% 18.1% 11.6% 8.6% 4.6% 6.4% 9,2% 7.1% 6.5% 8.2% 6,5% 6.9% 5,5% 9.7% 8.9%

c. Actual Reserve Margin*2* N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A II. Annual Loss-of-Load Hours*3* N/A N/A N/A N/A N/A ____ N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Notes: 1) Calculated based on total net capacity for summer and winter.

2) Does not include spot purchases of capacity or energy efficiency programs.

3) The Company follows PJM reserve requirements, which are based on loss of load expectation.

Appendix 4J - Summer and Winter Peak for Plan B Company Name: Virginia Electric and Power Company Schedule 5 POWER SUPPLY DATA (ACTUAL) (PROJECTED) 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2028 2030 2031 2032 2033 2034 2035 II. Load (MW)

1. Summer

a. Adjusted Summer Peak01 16,241 16,409 16,464 16,389 16,612 16,846 17,053 17,213 17,294 17,432 17,493 17,689 17,843 17,964 18,112 18,279 18,523 18,672 18,792

b. Other Commitments*2* 109 119 135 144 190 259 345 431 S13 572 676 634 613 637 648 697 599 579 565

c. Total System Summer Peak 16,350 16,528 16,599 16,533 16,802 17,105 17,399 17,644 17,807 18,004 18,170 18,323 18,456 18,601 16,759 18,977 19,121 19.251 19,357

d. Percent Increase in Total Summer Peak -3.3% 1.1% 0,4% -0.4% 1.6% 1.8% 1.7% 1.4% 0.9% 1.1% 0,9% 0.8% 0,7% 0,8% 0,9% 1.2% 0.8% 0.7% 0.6%

2. Winter

a. Adjusted Winter Peak0* 16,509 17,673 16,707 16,497 16,664 17,140 17.419 17,670 17,936 18,032 18,068 18,429 18,593 18,580 18,867 18,983 19,241 19,385 19,538

b. Other Commitments*2* 109 119 135 240 340 216 292 404 512 589 739 579 575 791 670 693 596 589 582

c. Total System Winter Peak 16,618 17,792 16,842 16,737 17,004 17,356 17,711 18,074 18,448 18,621 18,807 19,008 19,168 19,371 19,537 19,676 19,839 19,974 20,120

d. Percent Increase in Total Winter Peak 2.8% 7.1% -5.3% -0.6% 1.6% 2.1% 2-0% 2.0% 2.1% 0.9% 1.0% 1.1% 0.8% 1.1% 0.9% 0.7% 0.8% 0.7% 0,7%

Notes: 1) Adjusted load from Appendix 4H.

2) Includes firm Additional Forecast, Conservation Efficiency, and Peak Adjustments from Appendix 4H.

Appendix 4K- Wholesale Power Sales Contracts Company Name: Wginia Electric and Power Company__________ Schedule 20 WHOLESALE POWER SALES CONTRACTS (Actual) (Projected)

EntityContract LengthContract Type2017 2016 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Craig-Botetourt 12-MonthTermination Electric CoopNoticeFull Requirements^10 10 10 10 10 10 10 11 11 11 11 11 11 11111J1111 11 Town of Windsor, 12-Month Termination North CarolnaNolloeFull RegmYements11111 11 12 12 12 12 12 12 12 12 13 13 13 13 13 13 13 13 13 Wginia Ktmicpal 5/31C031 Electric Associalionwith annual renewalFull Requirements111289 299 300 300 300 301 302 302 303 303 304 305 305 306 306 307 308 308 309 Notes: 1) Full requirements contracts do not have a specific contracted capacity amount. MW are included in the Companys load forecast.

Appendix 4L - Load Duration Curves 2020 Load Duration Curve MW 2025 Load Duration Curve MW

Appendix 4L cont. - Load Duration Curves 2035 Load Duration Curve MW

Appendix 4M - Economic Assumptions used in the Sales and Hourly Budget Forecast Model (Annual Growth Rate)

Source: Moodys Analytic Vintage October 2019 SSiSmSiE

Appendix 4N - Comparison of Moodys and JHS Total Housing Permits 60,000 50.000 40.000 30.000 20,000 10,000 fA A i& sfy /VV rfo rSO rA rSb /vV /vV /&

^^^^^ ^^^^^^^^^^^^

IHS Economics -Moody's Analytics Real Disposable Income ($000) 650 300 IHS Economics Moody's Analytics

Appendix 4N cont. - Comparison of Moodys and IHS Virginia Gross State Product 750 700 650 600 550 500 450 400 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 IHS Economics =Moody's Analytics Manufacturing Employment IHS Economics Moody's Analytics

©

© p

Appendix 4N cont. - Comparison of Moodys and IHS © a

Government Employment (xl,000) ^

820 800 780 760 740 720 700 680 660 2017 2018 2019 2020 20212022 2023 2024 2025 2026 2027 2028 2029 2030 20312032 2033 2034 2035 IHS Economics Moody's Analytics

Appendix 40 ICF Commodity Price Forecasts for Virginia Electric and Power Company Fall 2019 Forecast

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NO WARRANTY, WHETHER EXPRESS OR IMPLIED, INCLUDING THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE IS GIVEN OR MADE BY ICF IN CONNECTION WITH THIS REPORT. You use this report at your own risk. ICF is not liable for any damages of any kind attributable to your use of this report.

ICF Mid-Case Federal CO: with Virginia in RGGI Forecast (Nominal S)

Fuel Price Power and REC Prices RTO Capacity Prices Emission Prices Zone 5 CAPP CSX: PJM Tier 1 Henry Hub PJM-DOM PJM-DOM ($/MW-Delivered 12,500 1%S No. 2 Oil 1% N0.6 Oil REC Natural Gas On-Peak Off-Peak (S/kW-yr) day)1 Ozone NO. Annual NO.

Natural Gas FOB (S/MMBtu) ($/MMBtu) Prices S02 (S/ton)

($/MMBtu) ($/MWh) ($/MWh)

(S/MMBtu) ($/MMBtu) ($/MWh) 2020 2.29 2.54 1.96 14.26 10.75 32.49 24.01 9.43 31.50 86.31 3.54 103.68 3.54 0.00 2021 2.49 2.90 2.14 13.62 9.55 34.55 26.05 9.38 41.45 113.55 3.54 98.36 3.54 5.05 2022 2.95 3.01 2.46 13.20 8.71 37.65 28.96 8.48 51.31 140.59 3.33 35.69 3.33 5.29 2023 3.29 2.96 2.66 13.62 8.44 38.68 29.75 8.47 52.48 143.78 3.24 3.24 3.24 5.54 2024 3.38 2.90 2.72 14.46 9.03 38.35 29.65 9.72 53.50 146.57 3.30 3.30 3.30 5.80 2025 3.48 3.00 2.79 15.26 9.58 40.49 31.38 11.93 54.52 149.36 3.37 3.37 3.37 6.07 2026 3.69 3.30 2.85 15.96 10.07 43.09 33.45 14.04 55.56 152.21 3.43 3.43 3.43 9.60 2027 3.91 3.44 2.92 16.87 10.70 43.67 34.04 12.27 56.64 155.17 3.50 3.50 3.50 9.31 2028 4.14 3.63 2.99 17.93 11.44 44.66 34.93 10.76 57.74 158.20 3.57 3.57 3.57 9.10 2029 4.37 3.88 3.06 18.98 12.18 46.30 36.32 8.73 58.88 161.32 3.64 3.64 3.64 8.94 2030 4.61 4.19 3.13 19.89 12.82 48.58 38.24 3.96 60.04 164.50 3.71 3.71 3.71 8.84 2031 4.71 4.20 3.21 20.63 13.33 48.44 38.19 5.16 61.21 167.70 3.78 3.78 3.78 9.30 2032 4.80 4.24 3.28 21.23 13.73 48.73 38.43 6.42 62.39 170.92 3.86 3.86 3.86 9.79 2033 4.90 4.44 3.36 21.76 14.08 50.93 40.09 7.75 63.59 174.23 3.93 3.93 3.93 10.31 2034 5.00 4.61 3.44 22.24 14.40 52.78 41.50 9.17 64.81 177.57 4.01 4.01 4.01 10.86 2035 5.10 4.56 3.52 22.70 14.70 51.73 40.80 10.65 66.05 180.95 4.09 4.09 4.09 11.44 Note: The 2020 - 2022 prices are a blend of futures/forwards and forecast prices for all commodities except capacity and CO2 prices. 2023 and beyond are forecast prices. Capacity prices reflect PJM RPM auction clearing prices through delivery year 2021/2022, forecast thereafter. CO2 prices reflect the price in Virginia.

1) RTO Capacity prices are restated in the units used by the PJM Capacity market.

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ICF Commodity Forecast: Natural Gas Henry Hub Natural Gas ($/MMBtu)

No C02 Tax Mid-Case Federal C02 Virginia in RGGI High-Case Federal Commodity with Virginia in RGGI Commodity C02 Commodity Forecast Commodity Forecast Forecast Forecast 2020 2.29 2.29 2.29 2.29 2021 2.49 2.49 2.49 2.49 2022 3.01 2.95 3.01 2.93 2023 3.34 3.29 3.34 3.28 2024 3.41 3.38 3.41 3.38 2025 3.48 3.48 3.48 3.47 2026 3.67 3.69 3.67 3.74 2027 3.87 3.91 3.87 4.02 2028 4.08 4.14 4.08 4.30 2029 4.29 4.37 4.29 4.60 2030 4.51 4.61 4.51 4.91 2031 4.61 4.71 4.60 4.87 2032 4.70 4.80 4.70 4.82 2033 4.80 4.90 4.79 4.77 2034 4.89 5.00 4.89 4.72 2035 4.99 5.10 4.98 4.66 Note: The 2020 - 2022 prices are a blend of futures/forwards and forecast prices. 2023 and beyond are forecast prices.

ICF Commodity Forecast: Natural Gas Zone 5 Delivered Natural Gas ($/MMBtu)

Mid-Case Federal C02 High-Case Federal No C02 Tax Virginia in RGGI with Virginia in RGGI C02 Commodity Commodity Forecast Commodity Forecast Commodity Forecast Forecast 2020 2.54 2.54 2.54 2.54 2021 2.90 2.90 2.90 2.90 2022 3.06 3.01 3.06 2.98 2023 3.02 2.96 3.02 3.00 2024 2.93 2.90 2.93 3.03 2025 3.00 3.00 3.00 3.12 2026 3.28 3.30 3.28 3.43 2027 3.40 3.44 3.40 3.50 2028 3.58 3.63 3.58 3.81 2029 3.81 3.88 3.81 4.03 2030 4.09 4.19 4.09 4.27 2031 4.10 4.20 4.10 4.58 2032 4.14 4.24 4.13 4.52 2033 4.34 4.44 4.33 4.42 2034 4.51 4.61 4.50 3.83 2035 4.46 4.56 4.45 4.31 Note: The 2020 - 2022 prices are a blend of futures/forwards and forecast prices. 2023 and beyond are forecast prices.

ICF Commodity Forecast: Coal - FOB CARP CSX: 12,500 1%S FOB ($/MMBtu)

Mid-Case Federal COz with No C02 Tax Commodity Virginia in RGGI High-Case Federal C02 Virginia in RGGI Commodity Forecast Forecast Commodity Forecast Commodity Forecast 2020 1.96 1.96 1.96 1.96 2021 2.14 2.14 2.14 2.14 2022 2.46 2.46 2.46 2.46 2023 2.66 2.66 2.66 2.65 2024 2.73 2.72 2.73 2.72 2025 2.79 2.79 2.79 2.78 2026 2.86 2.85 2.86 2.85 2027 2.93 2.92 2.93 2.92 2028 3.00 2.99 3.00 2.98 2029 3.07 3.06 3.07 3.06 2030 3.14 3.13 3.14 3.13 2031 3.22 3.21 3.22 3.20 2032 3.29 3.28 3.29 3.28 2033 3.37 3.36 3.37 3.35 2034 3.45 3.44 3.45 3.43 2035 3.53 3.52 3.53 3.51 Note: The 2020 - 2022 prices are a blend of futures/forwards and forecast prices. 2023 and beyond are forecast prices.

ICF Commodity Forecast: Oil e No. 2 Oil ($/MMBtu)

Mid-Case Federal C02 with No C02 Tax Commodity Virginia in RGGI High-Case Federal C02 Virginia in RGGI Commodity Forecast Forecast Commodity Forecast Commodity Forecast 2020 14.26 14.26 14.26 14.26 2021 13.62 13.62 13.62 13.62 2022 13.20 13.20 13.20 13.20 2023 13.62 13.62 13.62 13.62 2024 14.46 14.46 14.46 14.46 2025 15.26 15.26 15.26 15.26 2026 15.96 15.96 15.96 15.96 2027 16.87 16.87 16.87 16.87 2028 17.93 17.93 17.93 17.93 2029 18.98 18.98 18.98 18.98 2030 19.89 19.89 19.89 19.89 2031 20.63 20.63 20.63 20.63 2032 21.23 21.23 21.23 21.23 2033 21.76 21.76 21.76 21.76 2034 22.24 22.24 22.24 22.24 2035 22.70 22.70 22.70 22.70 Note: The 2020 - 2022 prices are a blend of futures/forvvards and forecast prices. 2023 and beyond are forecast prices.

S E d i f l 'E ICF Commodity Forecast: Oil 1% No.6 Oil ($/MMBtu)

Mid-Case Federal C02 with No C02 Tax Commodity Virginia in RGGI High-Case Federal C02 Virginia in RGGI Commodity Forecast Forecast Commodity Forecast Commodity Forecast 2020 10.75 10.75 10.75 10.75 2021 9.55 9.55 9.55 9.55 2022 8.71 8.71 8.71 8.71 2023 8.44 8.44 8.44 8.44 2024 9.03 9.03 9.03 9.03 2025 9.58 9.58 9.58 9.58 2026 10.07 10.07 10.07 10.07 2027 10.70 10.70 10.70 10.70 2028 11.44 11.44 11.44 11.44 2029 12.18 12.18 12.18 12.18 2030 12.82 12.82 12.82 12.82 2031 13.33 13.33 13.33 13.33 2032 13.73 13.73 13.73 13.73 2033 14.08 14.08 14.08 14.08 2034 14.40 14.40 14.40 14.40 2035 14.70 14.70 14.70 14.70 Note: The 2020 - 2022 prices are a blend of futures/forwards and forecast prices. 2023 and beyond are forecast prices.

ICF Commodity Forecast: On-Peak Power Price PJM-DOM On-Peak ($/MWh)

Mid-Case Federal C02 with No C02 Tax Commodity Virginia in RGGI High-Case Federal C02 Virginia in RGGI Commodity Forecast Forecast Commodity Forecast Commodity Forecast 2020 32.49 32.49 32.49 32.49 2021 34.54 34.55 34.58 34.51 2022 37.61 37.65 38.01 37.06 2023 38.66 38.68 39.19 37.52 2024 38.29 38.35 38.79 37.81 2025 40.33 40.49 40.84 38.88 2026 42.44 43.09 42.90 44.52 2027 42.51 43.67 42.90 47.17 2028 42.94 44.66 43.27 53.13 2029 44.00 46.30 44.24 56.27 2030 45.64 48.58 45.79 63.37 2031 45.42 48.44 45.55 69.91 2032 45.62 48.73 45.72 70.05 2033 47.62 50.93 47.73 69.21 2034 49.31 52.78 49.38 60.07 2035 48.19 51.73 48.26 68.39 Note: The 2020 - 2022 prices are a blend of futures/forwards and forecast prices. 2023 and beyond are forecast prices.

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S) T£ ICF Commodity Forecast: Off-Peak Power Price fi iiS PJM-DOM Off-Peak ($/MWh)

Mid-Case Federal C02 with No C02 Tax Commodity Virginia in RGGI High-Case Federal C02 Virginia in RGGI Commodity Forecast Forecast Commodity Forecast Commodity Forecast 2020 24.01 24.01 24.01 24.01 2021 26.06 26.05 26.07 26.03 2022 29.00 28.96 29.25 28.51 2023 29.81 29.75 30.16 28.73 2024 29.65 29.65 30.00 28.98 2025 31.29 31.38 31.65 29.85 2026 32.94 33.45 33.28 34.60 2027 33.09 34.04 33.37 37.17 2028 33.50 34.93 33.74 42.28 2029 34.40 36.32 34.58 45.15 2030 35.75 38.24 35.87 51.27 2031 35.65 38.19 35.74 56.41 2032 35.81 38.43 35.87 56.48 2033 37.32 40.09 37.37 55.69 2034 38.59 41.50 38.62 48.45 2035 37.84 40.80 37.84 55.00 Note: The 2020 - 2022 prices are a blend of futures/forwards and forecast prices. 2023 and beyond are forecast prices.

ICF Commodity Forecast: PJM Tier 1 Renewable Energy Certificates

Mid-Case Federal C02 with No C02 Tax Commodity Virginia in RGGI High-Case Federal C02 Virginia in RGGI Commodity Forecast Forecast Commodity Forecast Commodity Forecast 2020 9.43 9.43 9.43 9.43 2021 9.38 9.38 9.38 9.38 2022 8.51 8.48 8.46 8.58 2023 8.53 8.47 8.39 8.80 2024 9.83 9.72 9.70 10.21 2025 12.20 11.93 12.01 12.27 2026 14.70 14.04 14.36 13.22 2027 13.34 12.27 13.06 8.29 2028 12.25 10.76 12.04 4.08 2029 10.64 8.73 10.48 3.88 2030 3.96 3.96 3.96 3.96 2031 5.70 5.16 5.65 4.04 2032 7.56 6.42 7.43 4.11 2033 9.52 7.75 9.33 4.19 2034 11.58 9.17 11.33 4.28 2035 13.77 10.65 13.44 4.36 Note: The 2020 - 2022 prices are a blend of futures/forwards and forecast prices. 2023 and beyond are forecast prices.

ICF Commodity Forecast: PJM RTO Capacity RTO Capacity Prices (S/kVV-yr)

Mid-case Federal CO, with No CO, Tax Commodity Virginia in RGGI High-Case Federal CO; Virginia in RGGI Forecast Commodity1 Forecast Commodity Forecast Commodity Forecast 2020 31.50 31.50 31.50 31.50 2021 41.45 41.45 41.45 41.45 2022 51.35 51.31 51.32 51.31 2023 52.59 52.48 5250 5247 2024 53.69 53.50 53.54 53.49 2025 54.78 5452 5457 5450 2026 55.90 55.56 55.63 55.54 2027 57.07 56.64 56.73 56.61 2028 58.26 57.74 57.85 57.71 2029 59.49 5888 59.01 58.85 2030 60.74 60.04 60.19 60.00 2031 62.00 61.21 61.37 61.16 2032 63.28 6239 6257 6233 2033 64.59 63.59 63.80 63.53 2034 65.92 6481 65.04 6474 2035 67.26 66.05 66.30 65.97 Note: PJM RPM auction clearing prices through delivery year 2021/22, forecast thereafter.

COPYRIGHT O 2019 ICF Resources, LLC. All righls reserved.

ICF Commodity Forecast: PJM RTO Capacity RTO Capacity Prices ($/MW-day)

Mid-Case Federal C02 with No C02 Tax Commodity Virginia in RGGI High-Case Federal C02 Virginia in RGGI Commodity Forecast Forecast Commodity Forecast Commodity Forecast 2020 86.31 86.31 86.31 86.31 2021 113.55 113.55 113.55 113.55 2022 140.70 140.59 140.61 140.58 2023 144.09 143.78 143.85 143.76 2024 147.08 146.57 146.68 146.54 2025 150.09 149.36 149.51 149.32 2026 153.16 152.21 152.41 152.15 2027 156.35 155.17 155.41 155.10 2028 159.61 158.20 158.49 158.11 2029 162.98 161.32 161.66 161.22 2030 166.42 164.50 164.90 164.38 2031 169.88 167.70 168.14 167.56 2032 173.38 170.92 171.43 170.77 2033 176.97 174.23 174.79 174.06 2034 180.60 177.57 178.19 177.38 2035 184.28 180.95 181.63 180.74 Note: RTO Capacity prices are restated in the units used by the PJM Capacity market. PJM RPM auction clearing prices through delivery year 2021/22, forecast thereafter.

ICF Commodity Forecast: SO2 Emission Allowances CSAPR S02 ($/Ton)

Mid-Case Federal C02 with No C02 Tax Commodity Virginia in RGGI High-Case Federal C02 Virginia in RGGI Commodity Forecast Forecast Commodity Forecast Commodity Forecast 2020 3.54 3.54 3.54 3.54 2021 3.54 3.54 3.54 3.54 2022 3.33 3.33 3.33 3.33 2023 3.24 3.24 3.24 3.24 2024 3.30 3.30 3.30 3.30 2025 3.37 3.37 3.37 3.37 2026 3.43 3.43 3.43 3.43 2027 3.50 3.50 3.50 3.50 2028 3.57 3.57 3.57 3.57 2029 3.64 3.64 3.64 3.64 2030 3.71 3.71 3.71 3.71 2031 3.78 3.78 3.78 3.78 2032 3.86 3.86 3.86 3.86 2033 3.93 3.93 3.93 3.93 2034 4.01 4.01 4.01 4.01 2035 4.09 4.09 4.09 4.09 Note: The 2020 - 2022 prices are a blend of futures/forwards and forecast prices. 2023 and beyond are forecast prices.

COPYRIGHT O 2019 ICF Resources, LLC. All righls reserved.

ICF Commodity Forecast: NOx Emission Allowances y

CSAPR Ozone NOx ($/Ton)

Mid-Case Federal C02 with No 0O2 Tax Commodity Virginia in RGGI High-Case Federal C02 Virginia in RGGI Commodity Forecast Forecast Commodity Forecast Commodity Forecast 2020 103.68 103.68 103.68 103.68 2021 98.36 98.36 98.36 98.36 2022 35.69 35.69 35.69 35.69 2023 3.24 3.24 3.24 3.24 2024 3.30 3.30 3.30 3.30 2025 3.37 3.37 3.37 3.37 2026 3.43 3.43 3.43 3.43 2027 3.50 3.50 3.50 3.50 2028 3.57 3.57 3.57 3.57 2029 3.64 3.64 3.64 3.64 2030 3.71 3.71 3.71 3.71 2031 3.78 3.78 3.78 3.78 2032 3.86 3.86 3.86 3.86 2033 3.93 3.93 3.93 3.93 2034 4.01 4.01 4.01 4.01 2035 4.09 4.09 4.09 4.09 Note: The 2020 - 2022 prices are a blend of futures/forwards and forecast prices. 2023 and beyond are forecast prices.

ICF Commodity Forecast: NO* Emission Allowances CSAPR Annual NOx ($/Ton)

Mid-Case Federal C02 with No C02 Tax Commodity Virginia in RGGI High-Case Federal C02 Virginia in RGGI Commodity Forecast Forecast Commodity Forecast Commodity Forecast 2020 3.54 3.54 3.54 3.54 2021 3.54 3.54 3.54 3.54 2022 3.33 3.33 3.33 3.33 2023 3.24 3.24 3.24 3.24 2024 3.30 3.30 3.30 3.30 2025 3.37 3.37 3.37 3.37 2026 3.43 3.43 3.43 3.43 2027 3.50 3.50 3.50 3.50 2028 3.57 3.57 3.57 3.57 2029 3.64 3.64 3.64 3.64 2030 3.71 3.71 3.71 3.71 2031 3.78 3.78 3.78 3.78 2032 3.86 3.86 3.86 3.86 2033 3.93 3.93 3.93 3.93 2034 4.01 4.01 4.01 4.01 2035 4.09 4.09 4.09 4.09 Note: The 2020 - 2022 prices are a blend of futures/forwards and forecast prices. 2023 and beyond are forecast prices.

S IE © © T ICF Commodity Forecast: COz CO, (S/Ton)

No CO, Tax Commodity Virginia in RGGI High-Case Federal CO, Virginia in RGGI Forecast Commodity Forecast Commodity Forecast Commodity Forecast 2020 0.00 0.00 0.00 0.00 2021 0.00 5.05 5.09 0.00 2022 0.00 529 5.33 0.00 2023 0.00 5.54 5.58 0.00 2024 0.00 5.80 5.84 0.00 2025 0.00 6.07 6.11 0.00 2026 0.00 9.60 6.26 0.00 2027 0.00 9.31 6.28 0.00 2028 0.00 9.10 6.31 30.13 2029 0.00 8.94 6.33 32.14 2030 OCX) 8.84 6.35 3429 2031 0.00 9.30 6.66 36.57 2032 0.00 9.79 6.97 38.99 2033 0.00 10.31 7.30 41.58 2034 0.00 10.86 7.65 44.33 2035 0.00 11.44 8.01 4726 Note: The CO2 prices are reflective of the price in Virginia.

Appendix 4P - ICF Price Forecasts Fuel Price Forecast - Natural Gas Henry Hub Nominal $/MMbtu Henry Hub (2020 M HI case Fed C02 w VA in RCGI) Henry Hub (2018 Federal CG2)

Fuel Price Forecast - Natural Gas Transco Zone 5 Nominal S/MMbiu

Tranco Zn 5 (2020 Midcase Fed C02 w VA in RGGI) -----Transco Zn 5 (2018 Federal C02)

M H

Appendix 4P cont. - ICF Price Forecasts Fuel Price Forecast - Coal Nominal S/MMblu

CARP CSX 11500 1% FOB (2020 Midcnse Fed CQ2 w VA in RGG1)

CAPP CSX 11500 1% FOB (2018 Federal C02)

Fuel Price Forecast - #2 Oil Nominal S/MMblu

No 2 NYMEX (2020 MM rose Fed C02 w VA in RGGI) -----No 2 NYMEX (2018 Federal C02)

Appendix 4P cent. - ICF Price Forecasts Fuel Price Forecast - #6 Oil

Read (6 Oil) NYH 1% (2020 Midcase Fed C02 w VA in RGCI) ----- Read (6 Oil) NYH 1U (2018 Federal C02)

Allowance Price Forecast - SO2 & NOx

'CAKCSAPRSCCOonp 1 F<<d COC wVA In ROO) CAKGSAFKSC&Gnmp 10OlSFcdctd COCt

Appendix 4P cont. - ICF Price Forecasts Allowance Price Forecast - CO2 Note: The Federal CO2 conunodity forecast used in the 2018 Plan included a CO2 allowance price beginning in 2026 on a per ton basis. The Mid-Case Federal CO2 with Virginia in RGGI Commodity Forecast used in the 2020 Plan utilizes the RGGI allowance.

Power Price Forecast - On-Peak Power DOM Zn VP On Peak {2020 Midcase Fed C02 w VA in RGGI) -----DOM Zn VP On Peak (2018 Federal C02)

Appendix 4P cont. - ICF Price Forecasts Power Price Forecast - Off-Peak Power

DOM Zn VP Off Peak (2020 Midcase Fed C02 w VA in RCGI) ----- DOM Zn VP Off Peak (2018 Federal C02)

PJM RTO Capacity Price Forecast Nominal S/KW-Ycar RTO Capacity Price (2020 Midcase Fed C02 w VA In RGG1) ----- RTO Capacity Price (2018 Federal C02)

Virginia State Corporation Commission eFiling CASE Document Cover Sheet

© m

<© Case Number (if already assigned) PUR-2020-00035 fed it; Case Name (if known) Commonwealth of Virginia, ex rel. State Corporation Commission, In re: Virginia Electric and Power Companys Integrated Resource Plan filing pursuant to Va. Code §56-597 et seq.

Document Type OTHR Document Description Summary proceeding the 2020 Integrated Resource Plan of Virginia Electric and Power Company - part 4 of 4 Total Number of Pages 90 Submission ID 18654 eFiling Date Stamp 5/1/2020 2:14:53PM

Appendix 4Q - Overview of PJM REC Price Forecasting

\ Ivi Overview of PJM REC C

'ICF Price Forecasting iv'v'i March 2020 Prepared For:

Dominion Energy Virginia Prepared by:

ICF Resources, LLC

NOTICE PROVISIONS FOR AUTHORIZED THIRD PARTY USERS.

This report and information and statements herein are based in whole or in part on information obtained from various sources. ICF makes no assurances as to the accuracy of any such information or any conclusions based thereon. ICF is not responsible for typographical, pictorial or other editorial errors. The report is provided AS IS.

NO WARRANTY, WHETHER EXPRESS OR IMPLIED, INCLUDING THE IMPLIED WARRANTIES OF MERCHANTABIUTY AND FITNESS FOR A PARTICULAR PURPOSE IS GIVEN OR MADE BY ICF IN CONNECTION WITH THIS REPORT. You use this report at your own risk. ICF is not liable foranydamagesof any kind attributable to your use of this report.

Overview of PJM REC Price Forecasting 2 Page

Table of Contents PJM Market Background............................................................... 4 ICF Fundamental Modeling for RFC pricing.............................................................................................................. 5 Demand.............................................................. 5 Supply......................................................................................................................................................................... ...6 Sensitivity Case Modeling......................................................................................................................... 8 Case Results........................................................................................................................................................... 11 Business as Usual Policy Case.................................................................................................................................11 The Moderate Policy Case.......................................................................................................................................11 The Aggressive Policy Case......................................................................................................................................12 Probability Weighted REC Price Projection........................................................................................................ 13 REC Price Projection Comparisons........................................................................................................................13 Federal Tax Credit Extension Sensitivity............................................................................................................. 14 Voluntary REC Markets..................... 14 Overview of PJM REC Price Forecasting 3 l Page

R3 a

PJM Market Background q The PJM power market includes nine states or areas with sizeable Renewable Portfolio Standards (RPS). <§ The standardsin Delaware, Illinois, Maryland, Michigan, New Jersey, North Carolina, Ohio, ^

Pennsylvania, and Washington DCrequire an escalating portion of retail sales be met through qualified renewable energy (RE) generation.1 Additionally, Indiana has voluntary targets.

Load serving entities in the PJM region comply with their relevant RPS obligations via Renewable Energy Credits (RECs), where one credit represents one MWh of qualifying generation. RECs are tradeable and have varying values depending on the state. Many states have multiple types of RECs, including Tier I, Tier II and solar carve-out RECs (or SRECs). Of these, SRECs and Tier I RECs are typically the most valuable. Of the PJM states with mandatory RPS requirements, all but Michigan require that a minimum percent of their load be supplied by solar energy, known as a solar carve-out. More recently, several states in the U.S. have added targets for offshore wind within their renewable goals. Within PJM, Maryland and New Jersey have done so. The current RPS mandates for each PJM state are shown in Exhibit 1.

Exhibit 1: Current State Level RPS Targets State Tier I Target Solar Carve-out Offshore Wind Buildout New Jersey 50% by 2030 5.1% by 2021, TBD by 2030 3,500 MW by 2030 Pennsylvania 8% by 2021 0.5% by 2021 N/A Maryland 50% by 2030 14.5% by 2028 1,568 MW by 2030 Delaware 25% by 2025 3.5% by 2025 N/A Ohio 8.5% by 2026 N/A N/A Washington, D.C. 100% by 2032 10% by 2041 N/A Illinois1 25% by 2026 4 million RECs by 2030 N/A Michigan1,2 15% by 2021 N/A N/A North Carolina1 12.5% by 2021 0.2% by 2018 N/A

^nly part of the state falls within the PJM footprint.

2 Michigan utilities Consumers and DTE have committed to 25% renewable energy by 2030.

The ICE Forecasting methodology for REC pricing begins with a fundamentals view of the PJM market, through assessing the driversof supply and demand for RECs. For the 2020 IRP forecast for Dominion Energy Virginia ("Dominion"), ICF has expanded this fundamentals approach to better capture the uncertainty in REC markets by creating a weighted price forecast considering alternate forward looking renewable market scenarios. Below is a discussion of the fundamentals modeling approach, which is used within each of the scenario modeling, followed by a discussion of the RPS sensitivities and weighting methodology used to capture uncertainty.

1 In March 2020 the Virginia General Assembly passed the Virginia Clean Economy Act, mandating 100% clean energy by 2045 for Phase II Utilities and by 2050 for Phase I Utilities. This legislation was not included in the modeling.

Overview of PJM REC Price Forecasting 4 l Page

©

Demand ICF models the PJM RPS demand using state level RPS requirements and provides a Mid-Atlantic PJM ^

Tier 1 REC price forecast to Dominion. The PJM Tier I trading market is represented by New Jersey, Pennsylvania, Maryland, Delaware, Ohio and D.C. REC markets. Due to overlapping generator eligibility criteria, these states typically coalesce into one REC trading market with similar clearing prices, as shown in Exhibit 2. The Tier I market reflects the RPS demand net of the solar carve-outs, which are supplied in a separate compliance market using SRECs. REC prices typically represent the gap between the costs of a new renewable facility and the revenues they receive from energy and capacity markets.

Exhibit 2: Historical PJM Tier I REC Market Trading Prices Source: Lawrence Berkeley National Labs. U.S. Renewable Portfolio Standards 2019 Annual Status Report.

The demand for PJM Tier I RECs is equal to the retail sales of eligible load-serving entities (LSE) in each state, multiplied by the RPS requirement. In its BAU Case, ICF models fully promulgated renewable portfolio standards (i.e. no proposed or speculative goals are used to establish the BAU case). ICF assumes that once a state reaches its terminal target (see Exhibit 1), the percent target remains flat over time. The latest terminal target within the Mid-Atlantic States is 2032. Beyond the point at which the terminal targets are met, changes in the demand for RECs are driven only by load growth. ICF relies on the PJM 2019 load forecast as the basis for the load growth which is used to determine RPS demand requirements. Exhibit 3 provides the BAU Case RPS demand by state over time.

Overview of PJM REC Price Forecasting 5 l Page

Exhibit 3: Projected RPS Demand12020-2050for PJM States2 Projected RPS Demand Growth 200 150 100 III III 50 2020 2025 2030 2035 2040 2050 2060 j I

OH PA NJ MD DE B DC HIL Ml NC '

1 Demand shown is Tier I net of solar carve-outs.

2 Demand is shown at a state level; for those states only partially contained within PJM, demand outside the PJM area is included.

Each state also has an Alternative Compliance Payment (ACP) mechanism as part of its RPS program shown in Exhibit 4. ACPs effectively serve as a price ceiling on the market price for RECs and, to some extent, they act as a cap on the market demand for RECs.

Exhibit 4: State Alternative Compliance Payments State Tier I ACP New Jersey $50/MWh Pennsylvania $45/MWh Maryland1 $30/MWh Delaware2 $25/MWh Ohio $45/MWh Washington, D.C. $50/MWh 1 The MD ACP is $30/MWh in 2019, reduced to $22.35/MWh by 2030.

2 If a Delaware retail electricity supplier has paid the $25/MWh ACP in a previous year, then the ACP increases to $50/MWhforthe second deficient year, and $80/MWh for subsequent deficient years.

Supply ICF's modeling of state level RPS programs specifies generator type eligibility at the program level.

Geographic eligibility is also specified at the program level for each RPS program. Banked RECs are also eligible to meet RPS demand (states typically have 3-year REC lifetimes). The current supply of existing eligible resources, as well as all eligible new resources that could be built to meet incremental RPS demand based on the eligibility criteria are reflected in the ICE analysis.

Exhibit 5 illustrates that most PJM Tier 1 RPS programs accept RECs that are generated anywhere within PJM. Some states have limitations on solar eligibility, like New Jersey, and others have more restrictive Tier I eligibility, such as Ohio.

Overview of PJM REC Price Forecasting 6 l Page

Exhibit 5: PJM State RPS Program Eligibility State Tier 1 Geographic Eligibility NJ Located or delivered into PJM. Solar must be connected to NJ distribution grid.

MD Located or delivered into PJM. Solar must be connected to MD distribution grid PA Located in PJM. Only in-state solar can meet the solar carve-out.

DE Located or delivered into PJM. Customer sited resources must be in DE.

DC Located in PJM. Solar must be located in the District or on a distribution feeder serving the district.

IL Located in IL or adjoining states per IPA approval based on public interest criteria.

OH Located or deliverable to OH.

NC Up to 25% can be met with unbundled out of state RECs.

Ml Located in Ml or in the retail electric service territory of a utility recognized by the Michigan PSC.

ICF uses the Integrated Planning Model (IPM) to determine the least-cost build compliance scenario to supply PJM RPS demand. IPM has a choice of multiple new resource options, including solar, onshore wind, offshore wind and biomass, each with projections for cost and performance defined through 2060. For onshore and offshore wind, multiple technology resource groups are allowed as resource options. These resource groups reflect differing cost and performance characteristics for facilities in a given state. Each resource group has a maximum resource potential that the model can build to before it must turn to a different resource group. As such, IPM can choose the optimal resource mix within a technology option. Exhibit 6 illustrates the annual assumed levelized cost of energy (LCOE) of select new renewable capacity options by vintage. As shown, onshore wind resources reflect the most economic option in the near-term given the ability to take advantage of production tax credits. However, with the phase-out of the production tax credit (PTC) for wind generators, solar becomes more economic after 2025. ICF relies on the National Renewable Energy Lab (NREL) as the source for renewable resource costs over time.

Exhibit 6: Illustrative LCOE for New Renewable Resources in PJM1-2

1. Federal tax credits are included with a 4-year safe harbor assumption. Offshore wind is assumed to take the ITC in lieu of the PTC.

2. Storage costs are approximated and do not reflect storage cycles or degradation.

Overview of PJM REC Price Forecasting 7 l Page

10 m

m Uii

©

<© In shortage periods, IPM will determine the appropriate units to build and dispatch resources as needed to meet RPS demand requirements, which are specified at the state level in the model. The cost of supply is based on capital and operating expense assumptions, while the quantity of supply is based on the performance assumptions for resources, which vary by location. The costs of generation capture the capital (including investment return) and fixed operating expenses based on the generator type and location. These costs are reduced by the potential for generation to earn credit for their energy and capacity sales. Exhibit 7 shows an illustrative depiction of the PJM RPS supply curve in IPM for a given year, including the option of using banked RECs. The supply curve varies yearly, as the relative economics of new wind and solar builds change over time due to declining capital costs and the expiration of tax credits.

Exhibit 7: Illustrative PJM RPS Supply Curve GW OBank

Exist Biomass and Landfill O Exist RE © New Offshore Wind

New Onshore Wind O New Solar PV In determining alternatives to build and building the RPS supply curve, IPM further reduces the costs based on the revenue earning capabilities of the facility. That is, IPM simultaneously considers the energy and capacity value for renewable resources against the cost of each resource in order to develop the RPS supply curve utilized within IPM. As such, each facility is evaluated based on its locational costs and revenue expectations.

The PJM REC markets are thus modeled dynamically in IPM, with the model selecting the least-cost resource portfolio to meet the RPS demand. The model also considers the bankability of RECs and will temporally shift builds to minimize the cost of RPS compliance. For example, though the market may not need incremental supply in 2020 to serve the REC demand, a facility may be developed early to take advantage of the savings achievable through claiming the PTC credit. Excess credits available can then be banked for use in future years. As such, REC prices reflect the time value of the REC captured through the endogenous banking behavior in IPM.

Sensitivity Case Modeling While the REC price forecast is estimated based on reference conditions reflecting promulgated policies, there is significant uncertainty in REC markets. Near-constant changes and refinements have defined Overview of PJM REC Price Forecasting 8lPa ge

y a

vn renewable portfolio standards since near the inception of such programs. As illustrated in Exhibit 8, P

<3 states have enacted changes to their RPS policies over time. States in PJM have had frequent changes in © their policy goals-for example, Maryland enacted a revision 2017 as shown, and again in 2019.

Exhibit 8: State RPS Revisions RPS Enactment CO HI IL MA CT MD DC NH Ml ME PA NJ NY DE NC MO IA MN AZ NV W1 TX NM CA Rl MT WA OR OH KS VT 1983 1991 1994 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2008 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 MN AZ MN NM CT NJ CT AZ CA DC HI CO CA MA CO IL CA DC CT CA CO Wl NV MN NM CO CA CO OE IL DE CT MD CT MA CT IL MA CT DC NV PA NV CT CT HI ME IL DC NJ MD OH HI MA MD MA MD TX HI DE MA MN MA DE NH MN OR KS Ml ME NJ ME NJ MD MD NV MD IL NM MT Wl VT NY NH NY NM

!M:aj:oritRe'vrs;i'6b^l Wl ME NJ OR NJ MA NY NM OR PA NV MN Rl NY MD OH NV Rl NY NJ NC OH NM Wl WA PA TX Sourca:

Commas Berkotoy Lob of July 2019 Source: Lawrence Berkeley National Labs, U.S. Renewable Portfolio Standards 2019 Annual Status Report, Rather than rely on a single point estimate of the REC price for PJM Tier 1, ICF has adopted a methodology to account for uncertainty in the RPS policies. As such, the PJM Tier 1 REC price forecast provided to Dominion reflects a weighted average REC price forecast based on consideration of multiple possible policy outcomes. Specifically, ICF modeled three RPS scenarios to capture the regulatory uncertainty around RPS policies:

Business As Usual (BAU) Policy Case,

Moderate Policy Case, and

Aggressive Policy Case The BAU Policy Case scenario reflects current policy goals, assuming no changes to established policies over time. The Moderate Policy Case includes states taking partial action in a given direction, while the Aggressive Policy Case reflects more aggressive action taken. Exhibit 9 provides an indication of the relative demand for RECs across the three cases and additional details of each of the cases is provided in Exhibit 10 which indicates overall Tier I RPS requirement for each state, along with relevant solar carve-out requirements and offshore wind (OSW) procurement targets.

Overview of PJM REC Price Forecasting 9 l Page

Exhibit 9: Scenario RPS Demand Comparison1 PJM Tier I RPS Demand 200 P3 150 2025 2030 - - 2050- -

DC 100 DE

md 50 NJ PA

/b OH

/^

1Demand shown is Tier I net of solar carve-outs.

Exhibit 10: Scenario RPS Assumption Summary BAU Policy Case (No

______ Change) Moderate Policy Case Aggressive Policy Case 50% by 2030 50% by 2030, 70% by 2050 50% by 2030, 85% by 2050 NJ Solar: 5.1% by 2021 Solar: 10% by 2030, 20% by 2050 Solar: 15% by 2030, 30% by 2050 OSW: 3.5 GW by 2030 OSW: 3.5 GW by 2030, 5 GW by 2050 OSW: 3.5 by 2030, 6 GW by 2050 8% by 2021 30% by 2030, 50% by 2050 30% by 2030, 85% by 2050 PA Solar: 0.5% by 2021 Solar: 10% by 2030, 20% by 2050 Solar: 10% by 2030, 30% by 2050 50% by 2030 50% by 2030, 70% by 2050 50% by 2030, 85% by 2050 MD Solar: 14.5% by 2028 Solar: 25% by 2050 Solar: 30% by 2050 OSW: 1.5 GW by 2030 OSW: 1.5 GW by 2030, 3 GW by 2050 OSW: 1,5 GW by 2030, 4 GW by 2050 25% by 2025 30% by 2030, 50% by 2050 50% by 2030, 70% by 2050 DE Solar: 3.5% by 2025 Solar: 5% by 2030, 15% by 2050 Solar: 10% by 2030, 30% by 2050 OSW: 0 OSW: 200 MW by 2030 OSW: 200 MW by 2030, 1 GW by 2050 OH 8.5% by 2026 8.5% by 2026 8.5% by 2026 100% by 2032 No change No change D.C.

Solar: 10% by 2041 No change No change The final ICF forecast reflects a probability weighted average of the three scenarios that reflects the likelihood of RPS policy changes over time. The probabilities consider the likelihood of specific states acting to change their RPS programs, and on what timeline they may act.

While representative of a broad range of forecast results, these cases do not capture all uncertainty.

Elements not addressed include the potential for PTC/ITC extensions, costs and performance improvements for renewables, carbon price risk, market rule changes for storage, technological advances for storage, integration costs, and changes in the value of the electric load carrying capability of facilities.

Overview of PJM REC Price Forecasting 10 l Page

to

©

© VI 1=5 Case Results © The case used for the RPS policy discussed below is the Virginia in RGGI Case, which includes no © assumed federal carbon regulations and assumes that VA links with RGGI. The trends in this case are ^

similar to those in the other cases. The Tax Credit Extension Sensitivity is discussed separately below.

Business as Usual Policy Case In the BAU Policy Case, BAU RPS targets are modeled, where current mandatory RPS programs stay in place with no changes. This means, for example, that New Jersey's target of 50% by 2030 remains its target through 2060. The resulting BAU Policy Case PJM Tier I REC price is shown in Exhibit 11.

Exhibit 11: BAU Policy Case PJM Tier I REC (2019$/MWh)

$/REC 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2035 2040 2050 2060 8.57 1 3.2 BAU 7.32 7.41 7.37 7.7 8.71 10.56 12.41 11.07 10.01 3.2 3.2 3.2 3.2 In 2020, the Tier I demand net of solar carve-outs is approximately 42 TWh. In the BAU Policy Case, Tier I RPS demand increases to approximately 77 TWh in 2030, an increase of nearly 35 TWh. A significant portion of this Tier I demand is met by mandated offshore wind capacity additions, including 3,500 MW in New Jersey and 1,568 MW in Maryland. These offshore wind projects meet approximately 57% of the incremental Tier I demand between 2020 and 2030. The remaining demand is met by a combination of new wind and solar capacity additions and increased generation from existing dispatchable resources, such as hydro and biomass.

BAU Policy Case Tier I REC prices hover around $7-9/MWh through 2024 as the PJM REC market stays in the relatively balanced state that characterizes the current market. As PTC-subsidized wind builds are removed as a cost-effective compliance option for Tier I RPS compliance, REC prices increase to continue driving new renewable resources in an environment with continued RPS demand increases. While Pennsylvania reaches its final target in 2021, targets in New Jersey, Maryland, Ohio and Delaware all continue increasing.

As such, prices increase through 2026 before declining through 2030. This is due to state-sponsored offshore wind projects beginning to come online in the two states (besides D.C.) that still have increasing RPS demand through 2030. Both New Jersey and Maryland's Tier I RPS demand increases from 2025 to 2030 are completely supplied by their respective offshore wind additions. Thus, by 2030, the PJM Tier I market is fully supplied. With no RPS percentage increases for any PJM state post 2030, the spot market price falls to just the transactional value for a compliance REC, for which ICF has used

$3.20/MWh. The $3.20/MWh value is at a premium to voluntary markets due to additional compliance and reporting requirements placed on LSEs.

The Moderate Policy Case The Moderate Policy Case RPS target assumptions (see Exhibit 10) reflect REC price risk as a result of likely policy changes in the near- and mid-term, particularly those states whose terminal years are reached prior to 2030.

In the Moderate Policy Case, the New Jersey target assumes an increase in the solar carve-out over time, a process that the state BPU is currently undertaking. Beyond the BAU target of 50% by 2030, the Overview of PJM REC Price Forecasting 11 l Pa ge

a a

Moderate Policy Case extends the program by 1%/yr, reaching 70% in 2050. The offshore wind mandate a increases as well, adding an additional 1,500 MW by 2050. © (AS The Pennsylvania target increases to 30% by 2030, with a 1%/yr inaease after that to reach 50% by bS 2050. The interim 2030 target is based on legislation introduced in the state in 2019, SB 600, which would increase the Tier I target to 30% by 2030 and increase the solar carve-out to 10% by 2030. The 10% by 2030 target is also in line with PA DEP's Solar for the Future Plan, which outlines pathways to 10% solar penetration by 2030.

The Maryland target follows New Jersey in reaching 70% by 2050, with a slightly higher solar carve-out of 25% by 2050, consistent with a higher BAU solar carve-out. For Delaware, the Tier I target increases 1%/yr from the BAU level, and Washington, D.C. remains unchanged from the BAU, since it already has a mandate for 100% renewable energy. Ohio also remains unchanged from the BAU, with a terminal target of 8.5% by 2026.

The Aggressive Policy Case The Aggressive Policy Case BPS target assumptions (see Exhibit 10) reflect REC price risk as a result of likely policy changes in the mid- and long-term, particularly those states with long-term decarbonization efforts. States are already looking towards decarbonization goals. In New Jersey, Governor Murphy's Executive Order 28 directed the 2019 Energy Master Plan to provide a blueprint towards achieving 100%

clean energy by 2050.2 In Maryland the recently passed SB 516 which increased the state's RPS target to 50% by 2030 also requires an assessment of the costs and benefits of a 100% renewable energy by 2040 goal and the completion of a plan with recommendations for the achievement of that goal.

In the Aggressive Policy Case, the New Jersey, Pennsylvania, Maryland and Delaware targets all reflect an assumption of decarbonization by 2050, but rather than assuming targets of 100% by 2050, ICF has used 85% in acknowledgement of the feasibility constraints that exist in attaining a 100% RPS with status quo technology and transmission assumptions. All solar carve-out and offshore wind targets, where applicable, increase to higher levels than in the Moderate Policy Case by 2050. As in the Moderate Policy Case, Ohio and D.C. targets remain unchanged from the BAU.

The resulting REC prices from the Moderate and Aggressive Policy Cases offer a slight upside to the BAU Policy Case REC price forecast through 2030 but provide a more significant upside post 2030. Through 2030, the increases in the Moderate and Aggressive Policy Case Tier I requirements are more than offset by increases in solar and offshore wind carve-outs, as in the BAU scenario. The significant increase in 2050 targets puts upward pressure on REC prices as the more aggressive targets lead to greater incentive to bank allowances for use in later years. Exhibit 12 shows the REC price projections for each Case.

Exhibit 12: Scenario Case REC Prices (2019$/MWh)

$/REC 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2035 2040 2050 2060 BAU 7.3 7.4 7.4 7.7 8.7 10.6 12.4 11.1 10.0 8.6 3.2 3.2 3.2 3.2 3.2 Moderate 7.3 7.4 7.6 8.0 9.0 10.9 12.7 11.3 10.2 8.7 3.2 9.8 6.3 4.9 6.3 Aggressive 7.3 7.4 7.6 8.0 9.0 10.9 12.7 11.3 10.2 8.7 3.2 10.2 7.7 9.1 7.5 2 In June 2019 the Draft 2019 Energy Master Plan was released (https://ni.gov/emp/Ddf/Draft%202019%20EMP%20Final.pdf)

Overview of PJM REC Price Forecasting 12 l P a g e

Probability Weighted REC Price Projection Exhibit 13 reflects the risk of policy uncertainty regarding existing PJM RPS programs. Each probability considers the likelihood of specific states within each Case taking action to change their RPS programs, and on what timeline they may act. In the resulting weighted REC price forecast shown in Exhibit 14, ICF weighted each Case together with the probabilities shown in Exhibit 13.

Exhibit 13: Scenario Case Probabilities (%)

Probabilities 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2035 2040 2050 2060 BAU 90 80 75 70 65 55 45 35 25 15 Moderate 15 20 25 30 40 47 54 61 68 75 75 70 60 40 Aggressive 11 14 17 20 25 30 40 60 Exhibit 14: Virginia in RGGI Case PJM Tier I Weighted REC Price Forecast (2019$/MWh)

$/REC 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2035 2040 2050 2060 Weighted 7.3 7.4 7.4 7.8 8.8 10.7 12.6 11.2 10.1 8.6 3.2 9.9 6.7 6.6 7.0 The BAU Policy Case has a high probability in 2020, but it quickly begins to decrease and by 2035 it reaches 0%. This is because of the high rate of change that RPS programs experience; it is highly unlikely that the PJM states will not again revise their RPS programs in the next couple years.

The Moderate Policy Case probability increases quickly, as the likelihood of such near-term changes is high. The probability of the Moderate Policy Case peaks at 75% for 2030-2035 before falling to 40% by 2060. The Moderate Policy Case targets do extend from 2030 to 2050 in all states (except Ohio), so there's a chance that states don't increase all the way to the Aggressive Policy Case 2050 targets.

The Aggressive Policy Case targets focus on the post-2030 period, with minor differences to the Moderate Policy Case prior to 2030. The Aggressive Policy Case is weighted at 5% until 2026, after which it increases to 20% by 2030. By 2060, the likelihood increases to 60%, as current political goals for decarbonization are expected to continue and only get stronger in the future. The offshore wind carve-outs in the Aggressive Policy Case for 2060 may end up being conservative in reality; however, given current costs and industry reliance on state mandates, ICF did not take an aggressive stance on offshore wind additions outside of current state mandates. As such, there's room for offshore wind to play a much large role in meeting long-term RPS targets than it does in this analysis, which would result in lower Tier I REC prices in the long-term, all else equal.

REC Price Projection Comparisons Differences in REC prices between the cases, both with and without Virginia in RGGI and with various C02 price assumptions, are largely driven by changes in market revenues due to the C02 price specification. As shown below, the weighted REC prices from the cases with no assumed federal carbon regulation track closely. The Mid-Case C02 with Virginia in RGGI and High Federal C02 Case fall below the prior two cases. The High Federal C02 Case is below all the other cases due to the higher energy revenues, leading to an earlier and sustained collapse in REC prices.

Overview of PJM REC Price Forecasting 13 l P a g e

Exhibit 15: PJM Tier I Weighted REC Price Forecast Comparison (2019$/MWhj 0 - -

2020 2025 2030 2035 2040 2045 2050 Virginia in RGGI =>=.<=> Mid-Case C02 with Virginia in RGGI

= c= = No C02 Tax ' High Federal C02 Federal Tax Credit Extension Sensitivity The Tax Credit Extension Case extends the PTC at 60% of its full value and the ITC at 30% indefinitely.

This significantly reduces the cost to build renewables, resulting in a greater renewable capacity buildout and depressed REC prices. Exhibit 16 below shows the REC price forecast for the three RPS scenarios as well as the weighted price. REC prices immediately decline in each of the three RPS scenarios after the forwards period, reaching the floor price in 2028 in all RPS scenarios and remaining there until 2060. In each of these cases, onshore wind and solar are both economic 2028-2060 and do not need incremental revenue support to meet the states' RPS requirements.

Exhibit 16: ICF Tax Extension Case PJM Tier I Weighted REC Price Forecast (2019$/MWh)

$/REC 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2035 2040 2050 2060 BAU 7.32 7.41 8.35 6.34 4.06 3.69 3.33 3.20 3.20 3.20 3.20 3.20 3.20 3.20 3.20 Moderate 7.32 7.41 8.35 6.34 4.31 4.04 3.68 3.22 3.20 3.20 3.20 3.20 3.20 3.20 3.20 Aggressive 7.32 7.41 8.35 6.34 4.30 4.03 3.66 3.20 3.20 3.20 3.20 3.20 3.20 3.20 3.20 Weighted 7.32 7.41 8.35 6.34 4.15 3.85 3.51 3.21 3.20 3.20 3.20 3.20 3.20 3.20 3.20 Voluntary REC Markets Outside of the mandated RPS goals of individual states, a voluntary market for renewable supply exists.

This market is driven by companies, government agencies, and private consumers who choose to procure renewable energy products for goodwill gained through environmental marketing value, or other purposes outside the RPS policy requirements. Developers with renewable energy projects outside of the eligibility criteria of a state RPS program may find an opportunity to generate additional .

revenue through the sale of RECs into the voluntary market.

Most voluntary market purchases are unbundled RECs (i.e. not inclusive of energy or capacity), and rely on certification programs that verify that the RECs were generated by an eligible facility and that the Overview of PJM REC Price Forecasting 14 l P a g e

y m

a chain of REC custody is fully audited. Voluntary buyers are generally highly interested in where the REC was generated. For example, a buyer in Virginia may be more willing to purchase locally generated RECs then those from far away to maximize the benefit perceived by the local community and stakeholders.

1&3 Unlike RPS driven requirements, there is no enforcement of voluntary markets, and hence, the demand is considered a soft demand, motivated by internal drivers rather than external ones. While higher voluntary (Green-e) REC prices are exhibited in ERGOT and some WECC markets, the value of Green-e RECs tend to remain at a lower level on an average basis. Exhibit 17 shows ICF's Green-e REC price forecast.

Exhibit 17: Green-e REC Price Forecast (2019$/MWh)

$/REC 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2035 2040 2050 2060 Green-e 0.6 0.6 0.6 0.6 0.6 0.7 0.7 0.7 0.7 0.8 0.8 0.9 1.0 1.0 1.0 Overview ofPJM REC Price Forecasting 15 I Pa ge

Appendix 4R-Delivered Fuel Data for Plan B Company Name: Virginia Electric and Power Company Schedule 18 FUEL DATA (ACTUAL) (PROJECTED) 2017 2018 2018 20202021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 203S I. Delivered Fuel Price (Vnrretuf*

a. Nuclear 0.70 0.67 0.610610.60 0.63 0.70 0.70 0.70 0.69 0.70 0.70 0.72 0.73 0.74 0.74 0.75 0.76 0.77

b. Biomass 3.X 3.02 3.09^532.55 2.58 2.61 2,63 2.66 2.69 2.72 2.75 2-79 2.84 2.69 2.94 3.X 3.05 3,11

c. Coal 2.70 2.94 2.821^72,09 2.39 2,60 2.66 2.73 2.80 2.67 2.94 3.X 3.08 3.16 3.23 3.31 3.39 3.47

d. Heavy Fuel OQ 6.34 7,26 7.77 11.089.91 9,09 8,83 fi.42 9.98 10.46 11.10 11.B4 12.59 12.89 13.22 13.55 13.69 14.23 14.56

e. UQtrt Fuel Oil 11.73 10.91 14,90 14.X 14,26 13,67 14,31 15.16 15.97 16.69 17.61 18.68 19.76 20.78 21.60 22.26 22.63 23.34 23.63

f. Natural Gas 3.50 4.83 3.442X_________ 3.22 3.33 3.29 3.22 3.32 3.62 3.76 3.96 4.21 4.45 4,54 4.63 4.72 4.81 4.92

n. Primary Fuel Expenses (cents/kVWh)*31

a. Nuclear 0.72 0.69 0.630630,63 0.66 0.72 0.73 0.73 0.72 0.73 0.73 075 0.75 0.76 0.77 0.7B 0.79 0.80

b. Biomass 4.25 4.57 4.792.812.90 2.94 2.99 3.09 3.13 3.16 3.22 3.27 OX OX OX OX OX OX OX

c. Coal 2.88 3.02 3.131.942.05 2.35 2.56 2.63 2.69 2.76 2.83 2.90 2.96 3.04 3.11 3.19 3.27 3.35 3.43

d. Heavy Fuel 03 7.60 6.15 OX 1097 10.07 9.18 8.23 N/A MA N/A N/A N/A N/A NfA N/A WA WA N/A tVA

e. Light Fuel OH*31 16.32 15.83 18.40___WANfA WA N/A N/A N/A N/A N/A N!A N/A N/A N/A WA N/A N/A N/A

f. Natural Gas 2.64 3.34 2.41T731.87 2.06 2.08 1.98 2.09 221 2.36 2.48 2.64 2.76 2.68 2.95 2,94 Z98 3.08

g. NUG*4* 5.26 4.49 4.67OX_________ hM N/A____MAN/A Nt/A N/A N/A N/AN/AN/AN/A WA N/A____WAN/A

i. Economy Energy Purchases 3.36 4.88 3-252X__________2.36 2.60 2.70 2.63 3.04 329 3.29 3.37 3.42 3.64 3.50 3.51 3.92 4.02 3,74

j. Capacity Purchases ($/kW>Year) 52.64 58.12 46.35 31.50 41.45 51.31 52.48 53.50 54.52 55.56 56.64 57.74 58.88 60.04 61.21 62.39 63.59 64.81 66.05 Notes: 1) Delivered fuel price for NAPP (12,900,3.2% FOB), No. 2 Oil, No. 6 Oil, DOM Zone Delivered Natural Gas are used to represent Coal, Heavy Fuel, Light Fuel Oil and Natural Gas respectively.

2) Light fuel oil is used for reliability only at dual-fuel facilities.

3) Primary Fuel Expenses for Nuclear, Biomass, Coal, Heavy Fuel Oil and Natural Gas are based on North Anna 1, Altavista, Mount Storm 1, Possum Point 5, Possum Point 6, respectively

4) Average of NUGs fuel expenses.

5) Average cost of market energy purchases.

Appendix 5A - Existing Generation Units in Service Company Name: Virginia Electric and Power Company_________ Schedule 14a UNIT PERFORMANCE DATA Existing Supply-Side Resources (MW)

MW Unit Name Location Unit Class Primary Fuel Type C.O.D.'<1l Summer Altavista Altavista, VA Base Renewable Feb-1992 51 Bath County 1-6 Warm Springs, VA Intermediate Hydro-Pumped Storage Dec-1985 1,808 Bear Garden Buckingham County, VA Intermediate Natural Gas-CC May-2011 622 Brunswick Brunswick County, VA Intermediate Natural Gas-CC May-2016 1,376 Chesapeake CT1, 4, 6 Chesapeake, VA Peak Light Fuel Oil Dec-1967 39 Chesterfield 5 Chester, VA Base Coal Aug-1964 336 Chesterfield 6 Chester, VA Base Coal Dec-1969 678 Chesterfield 7 Chester, VA Intermediate Natural Gas-CC Jun-1990 197 Chesterfield 8 Chester, VA Intermediate Natural Gas-CC May-1992 195 Clover 1 Clover, VA Base Coal Oct-1995 220 Clover 2 Clover, VA Base Coal Mar-1996 219 Colonial Trail West Surry, VA Intermittent Renewable Dec-2019 93 Darbytown 1 Richmond, VA Peak Natural Gas-Turbine May-1990 84 Darbytown 2 Richmond, VA Peak Natural Gas-Turbine May-1990 84 Darbytown 3 Richmond, VA Peak Natural Gas-Turbine Apr-1990 84 Darbytown 4 Richmond, VA Peak Natural Gas-Turbine Apr-1990 84 Elizabeth River 1 Chesapeake, VA Peak Natural Gas-Turbine Jun-1992 110 Elizabeth River 2 Chesapeake, VA Peak Natural Gas-Turbine Jun-1992 110 Elizabeth River 3 Chesapeake, VA Peak Natural Gas-Turbine Jun-1992 110 Gaston Hydro Roanoake Rapids, NC Intermediate Hydro-Conventional Feb-1963 220 Gordonsville 1 Gordonsville, VA Intermediate Natural Gas-CC Jun-1994 109 Gordonsville 2 Gordonsville, VA Intermediate Natural Gas-CC Jun-1994 109 Gravel Neck 1-2 Surry, VA Peak Light Fuel Oil Aug-1970 28 Gravel Neck 3 Surry, VA Peak Natural Gas-Turbine Oct-1989 85 Gravel Neck 4 Surry, VA Peak Natural Gas-Turbine Jul-1989 85 Gravel Neck 5 Surry, VA Peak Natural Gas-Turbine Jul-1989 85 Gravel Neck 6 Surry, VA Peak Natural Gas-Turbine Nov-1989 85 Greensville Brunswick County, VA Intermediate Natural Gas-CC Dec-2018 1,588 Hopewell Hopewell, VA Base Renewable Jul-1989 51 Ladysmith 1 Woodford, VA Peak Natural Gas-Turbine May-2001 151 Ladysmith 2 Woodford, VA Peak Natural Gas-Turbine May-2001 151 Ladysmith 3 Woodford, VA Peak Natural Gas-Turbine Jun-2008 161 Ladysmith 4 Woodford, VA Peak Natural Gas-Turbine Jun-2008 160 Ladysmith 5 Woodford, VA Peak Natural Gas-Turbine Apr-2009 160 LowmoorCT 1-4 Covington, VA Peak Light Fuel Oil Jul-1971 48 Note: (1) Commercial operation date.

y to Appendix 5A cont. - Existing Generation Units in Service Company Name: Virginia Electric and Power Company Schedule 14a UNIT PERFORMANCE DATA Existing Supply-Side Resources (MW)

MW Unit Name Location Unit Class Primary Fuel Type C.O.D. (il Summer Mount Storm 1 ML Storm, WV Base Coal Sep-1965 548 Mount Storm 2 ML Storm, WV Base Coal Jul-1966 553 Mount Storm 3 Ml. Storm, WV Base Coal Dec-1973 520 Mount Storm CT ML Storm, WV Peak Light Fuel Oil Oct-1967 11 North Anna 1 Mneral, VA Base Nuclear Jun-1978 838 North Anna 2 Mineral, VA Base Nuclear Dec-1980 834 North Anna Hydro Mneral, VA Intermediate Hydro-Conventional Dec-1987 Northern Neck CT 1-4 Warsaw, VA Peak Light Fuel Oil Jul-1971 47 Possum Point 5 Dumfries, VA Peak Heavy Fuel Oil Jun-1975 623 Possum Point 6 Dumfries, VA Intermediate Natural Gas-CC Jul-2003 573 Possum Point CT 1-6 Dumfries, VA Peak Light Fuel Oil May-1968 72 Remington 1 Remington, VA Peak Natural Gas-Turbine Jul-2000 153 Remington 2 Remington, VA Peak Natural Gas-Turbine Jul-2000 151 Remington 3 Remington, VA Peak Natural Gas-Turbine Jul-2000 152 Remington 4 Remington, VA Peak Natural Gas-Turbine Jul-2000 152 Roanoke Rapids Hydro Roanoake Rapids, NC Intermediate Hydro-Conventional Sep-1955 95 Rosemary Roanoke Rapids, NC Peak Natural Gas-CC Dec-1990 165 Scott Solar Powhatan, VA Intermittent Renewable Dec-2016 11 Solar Partnership Program Distributed Intermittent Renewable Jan-2012 Southampton Franklin, VA Base Renewable Mar-1992 51 Surry 1 Surry, VA Base Nuclear Dec-1972 838 Surry 2 Surry, VA Base Nuclear May-1973 838 Virginia City Hybrid Energy Center Virginia City, VA Base Coal Jul-2012 610 Warren Front Royal, VA Intermediate Natural Gas-CC Dec-2014 1,370 Whitehouse Solar Louisa, VA Intermittent Renewable Dec-2016 12 Woodland Solar Isle of Wight, VA Intermittent Renewable Dec-2016 13 Vorktown 3 Yorktown, VA Peak Heavy Fuel Oil Dec-1974 790 Subtotal- Base 7,185 Subtotal - Intermediate 8,263 Subtotal - Peak 4,220 134 Subtotal - Intermittent Total 19,802 Note: (1) Commercial operation date.

Appendix 5B - Other Generation Units Company Name: Virginia Electric and Power Company Schedule 14b UNIT PERFORMANCE DATA Existing Supply-Side Resources (kW)

Primary kW Contract Contract Unit Name Location Fuel Type Summer Start Expiration Non-Utlttv Generation INUG1 Units1' W.E Partners II NO Biomass 300 3/1512012 Auto renew W. E. Partners 1 NC Biomass 100 4/2&2013 Auto renew WeyerhaeuserOomtar NC Cosl/Bomass ZS.AOO1*1 7/27/1991 Auto renew 3620 Virginia Dare Trail N NC Solar 9/1412009 Auto renew Rymouth Sdar NC Solar 5.000 10/4/2012 10/3/2027 Dogwood Sdar NC Solar 20.000 12/9/2014 12/8/2029 HXOap Solar NC Solar 20,000 12/16/2014 12/15/2029 Bethel Price Solar NC Solar 5.000 12/9/2014 12/8 £029 Jakana Solar NC Solar 5.000 12/4/2014 12/3/2029 Lewiston Solar NC Solar 5.000 12/18/2014 12/17/2029 Wlliamstor Solar NC Solar 5,000 12/4/2014 12/3/2029 Windsor Solar NC Solar 5.000 12/17/2014 12/16/2029 510 REPP One Solar NC Solar 1250 3/11/2015 3/10/2030 Everetts Wildcat Soli NC Solar 5,000 3/11/2015 3/10/2030 SoINCS Solar NC Solar 5.000 5/12/2015 6/11Q030 Creswel Aligood Soli NC Solar 14,000 5/13C015 5/12/2030 Two Mile Desert Road - SoNCI NC Solar 5.000 8/10/2015 841/2030 SoINCPowerS Sdar NC Solar 5,000 11/1/2015 10/31/2030 Downs Farm Solar NC Solar 5,000 12/1/2015 11/30/2030 GKSSdar- SolNC2 NC Solar 5.000 12/16/2015 12/15/2030 Windsor Cooper Hill Sdar NC Solar 5.000 12/18/2015 12/17/2030 Green Farm Solar NC Solar 5,000 1/6/2016 1/5/2031 FAE X - Shawboro NC Solar 20,000 1/26/2016 1/25/2031 FAE XVII - Watson Seed NC Solar 20.000 1/28/2016 1/27/2031 Bradley PV1-FAE IX NC Solar 5,000 2/4/2016 2/3/2031 Conetoe Solar NC Solar 5,000 2/5/2016 2M/2031 SolNC3 Solar-Sugar Run Solar NC Solar 5.000 2/5/2016 2/1/2031 Gates Solar NC Solar 5,000 2/8/2016 2/7/2031 Long Farm 46 Solar NC Solar 5,000 2/12/2016 2/11/2031 Batdeboro Fam Solar NC Solar 5.000 2/17/2016 2/16/2031 Wnton Solar NC Solar 5.000 2/8C016 2/7/2031 SoINCIO Sola NC Solar 5,000 1/13/2016 1/12/2031 Tarboro Sola NC Solar 5,000 12/31/2015 1 2/30/2030 Bethel Sdar NC Solar 4.400 3/3/2016 3/2/2031 Garvsburg Sola NC Solar 5000 3/18/2016 3/17/2031 Woodland Solar NC Solar 5,000 4/7/2016 4/6/2031 Gaston Solar NC Solar 5.000 4/18/2016 4/17/2031 TWE KeHbrti Sola NC Solar 4.700 6/6/2016 6/5/2031 FAE XVIII-Meadows NC Solar 20.000 6/9/2016 6/8 £031 Seaboard Sola NC Solar 5.000 6£9£016 6£8£031 Smons Farm Sdar NC Solar 5,000 7/13£016 7/12£031 Whitakers Fam Solar _NC_ Solar 3.400 7£0£016 7/19/2031 MCI Solar NC Solar 5.000 8/19/2016 8/18£031 Williamston West Farm Sola NC Solar 5.000 8£3£016 8£2£031 River Road Soter _NC_ Solar 5.000 8£3£016 6/220031 Write Farm Solar NC Solar 5,000 8£6£016 8£5£031 Madison Farm Sola NC Solar 5,000 9/9£016 9/8£031 Modlin Farm Sola NC Solar 5,000 9/14£016 9/13£031 Notes: (I) In operation as of April 1, 2020; generating facilities that have contracted directly with Virginia Electric and Power Company (2) PPA is for excess energy only typically 4,000 - 14,000 kW.

(3) PPA is for excess energy only typically 3,500 kW.

Appendix 5B cont. - Other Generation Units Company Name: Virginia Electric and Power Company Schedule 14b UNIT PERFORMANC E DATA Existing Supply-Side Resources (kW)

Primary kW Contract Contract Unit Name Location Fuel Type Summer Start Expiration BaMeboro Solar NC Solar_______ 5.000 10/7/2016 10/6/2031 Wlliamston Speight Solar NC Solar 15.000 11/231016 11/22/2031 Barnhill Road Solar NC Solar 3.100 11/30/2016 11/29/2031 Hemlock Solar NC Solar 5,000 12/5/2016 12/4/2031 Leggett Solar NC Solar 5,000 12/14/2016 12/13/2031 Schell Solar Farm NC Solar 5,000 12/22/2016 12/21/2031 FAE XXXV-Turkey Creek NC Solar 13S00 1/31/2017 1/30/2027 FAEXXII-Baker PVI NC Solar 5,000 1/30/2017 .1/29/2.032 FAE XXI -Benthall Bridge FV1 NC Solar 5.000 1/30/2017 1/29/2032 Aulander Hwv42 Solar NC Solar 5.000 12/30/2016 12/29gQ31 Floyd Road Solar NC Solar 5,000 6/19/2017 6/18/2032 Flat Meeks-FAE I) NC Solar 5,000 10/27/2017 10/26/2032 HXNAir Solar One NC Solar 5,000 12/21/2017 12/20/2032 Cork Oak Solar _NC_ Solar 20.000 12/29/2017 1 2/28/2027 Sunflower Solar _NC_ Solar 16.000 12/29/2017 12/28/2027 Da;is Lane Solar _NC_ Solar 6.000 12/31/2017 12/30£032 FAE XIX- American Leoion PVI NC Solar 15,840 1/2/2018 1/1/2033 FAE XXV-Vauohns Creak NC Solar 20,000 1/2/2018 1/1/2033 TWE Ahoskie Solar Project NC Solar 5.000 1/12/2018 1/11/2033 Cottonwood Solar NC Solar 3,000 1/2 SC018 1/24/2033 Shiloh Hwv 1108 Solar NC Solar 5,000 2/9/2018 2/8/2033 Chowan Jehu Road Solar _NC_ Solar 5.000 2/9/2018 2/8/2033 Phelps 158 Solar Farm NC _Sglat_ 5.000 2/26/2018 2/25/2033 San<fcSoja_ NC Solar 5.000 5/30/2018 5/29/2033 Northern Cardinal Solar NC Solar 2.000 6/29/2018 658/2033 Ca-I Fried rich Gauss Solar NC Solar 5,000 9/10/2018 9/95033 Sun Farm VI Solar NC Solar 4975 9/105018 9/95033 Sun Farm V Solar _NC_ Solar 4,975 9/105018 9/95033 Citizens Hertford NC Solar 16500 6/65019 6/55029 Camden Dam Solar NC Solar 5,000 9/105018 9/95033 Mil Pond Solar NC Solar 5,000 9/105018 9/95033 Jamegrille Road NC Solar 5.000 9/105018 9/95033 Norih 301_ NC Solar 20.000 12/185019 12/175029 Five Forks NC Solar 20.000 12535019 12525029 Whitehurst FM Solar _NC_ Solar 10.000 3/135020 3/125035 FAEXXXHFGrandv NC Solar 20,000 3/135020 3/125030 MeadWestvaco (formerly Westvaco) VA Coal/Somaes 140,000 11/3/1982 8555028 Smirfit-Stone Container VA Coal/Biomass 48,400°' 351/1981 Auto renew Brasfield Dam VA Hydro 2,800 10/12/1993 Auto renew Columbia Mills VA Hydro 34 3 2/7/1985 Auto renew Lskeview (Swift Creek) Dam VA Hydro 400 11565008 Auto renew Banister Dam VA Hydro 1,785 9585008 Auto renew Chapman Dam VA Hydro 300 10/17/1984 Auto renew Bumshire Dam VA Hydro 100 7/115016 Auto renew Cushaw Hydro VA Hydro 7.500 11515016 11505033 Suffolk Landfil VA Methane 3,000 11/4/1994 Auto renew Atoondria/Ariington - Covanta VA MSW 21,000 159/1988 1585023 Essex Solar Center VA Solar 20.000 12/145017 12/135037 Notes: (1) In operation as of April 1, 2020; generating facilities that have contracted directly with Virginia Electric and Power Company.

(2) PPA is for excess energy only typically 4,000 - 14,000 kW.

(3) PPA is for excess energy only typically 3,500 kW.

Appendix 5C - Equivalent Availability Factor for Plan B Company Name: Virginia Electric and Power Company Schedule 8 UNIT PERFORMANCE DATA Equivalent Availability Factor (%)

(ACTUAL) (PROJECTED)

Unit Name 2017 2018 2027 2028 Altavista 63 75 92 90 90 100 100 85 85 85 85 100 Bath County 1-6 89 92 91 91 91 91 Battery_Gen1 100 100 100 100 100 100 100 100 100 100 Battery_Gen2 100 100 100 100 100 100 100 100 100 Battery_Gen3 100 100 100 100 100 100 100 Battery_Gen4 100 100 100 100 Battery_Gen5 100 100 Bear Garden 80 85 73 79 77 80 80 82 79 79 79 79 79 79 79 79 79 79 79 Brunswick 64 74 81 76 85 84 60 80 80 80 80 80 80 80 60 80 80 Chesapeake CT1,4,6 99 85 90 90 Chesterfield 5 65 57 47 87 84 100 Chesterfield 6 59 47 73 79 Chesterfield 7 84 78 87 87 87 Chesterfield 6 86 84 84 84 Clover 1 86 Clover 2 CVOW - Phase 1 (880MA/) 35 37 CVOW - Phase 2 (880NNV) 35 37 39 40 CVOW - Phase 3 (8B0MW) 35 CVOW (Pitot) 45 45 45 45 45 45 Darbytown 1 85 93 90 90 90 90 Darbytown 2 87 94 90 90 90 90 90 Darbytown 3 97 87 94 90 90 90 90 90 Darbytown 4 73 93 87 90 90 90 90 90 Elizabeth River 1 87 94 94 90 90 90 90 90 Elizabeth River 2 75 93 87 94 69 90 90 90 90 90 90 Elizabeth River 3 92 87 94 94 90 90 90 90 90 90 90 Gaston Hydro 77 17 17 17 17 17 17 17 17 17 17 17 Generic Brownfield CT 92 92 92 92 92 92 92 92 92 92 92 92 Generic Solar PV- (60MW) 25 25 25 25 25 25 25 25 25 25 25 25 25 25 Generic Solar PV PPA Post 2022 25 25 25 25 25 25 25 25 25 25 25 25 25 Generic Solar PV PPA Pre 2022 25 25 25 25 25 25 25 25 25 25 25 25 25 25 Generic Storage - Battery (Pilot) -14MW 100 100 100 100 100 100 100 100 100 100 100 100 Generic Storage - Battery (Pilot) -16MW 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 GordonsviOe 1 77 84 83 89 79 84 84 84 84 84 84 84 84 84 Gordonsvtfle 2 52 82 83 70 75 86 85 85 85 85 85 85 85 Gravel Neck 1-2 100 95 93 89 Gravel Neck3 90 100 95 87 91 94 90 90 90 90 90 90 90 90 90 Gravel Neck 4 87 90 95 87 91 94 90 90 90 90 90 90 90 90 Gravel Neck 5 91 96 95 87 94 94 94 94 90 90 90 90 90 90 90 90 90 Gravel Neck 6 91 97 87 94 91 94 94 90 90 90 90 90 90 90 90 Note: EAF for intermittent resources shown as a capacity factor.

Appendix 5C cent. - Equivalent Availability Factor for Plan B Company Name: Virginia Electric and Power Company Schedule 8 UNIT PERFORMANCE DATA Equivalent Availability Factor (%)

(ACTUAL) (PROJECTED)

___________________ Unit Name 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Greensville _____ 96 7380 81 79 60 78 79 79 79 79 79 79 79 79 79 79 79 Hopewell ___ 78 83 83 43 88 88 100 100 B2 82 82 82 100-----

Ladysmith 1 85 93 86909090 79 90 9090909090 90 9090909090 Ladysmith 2 ___ 85_94_86_90 90 90 79 90 90 90 90 90 90 90 90 90 90 90 90 Ladysmith 3 ____84_74_87_90 90 90 90 90 90 90 90 90 90 90 90 90 90 90 90 Ladysmith 4 ____77_79_87_90 90 90 90 90 90 90 90 90 90 90 90 90 90 90 90 Ladysmith 5 ____03_95_87______ 90 90 90 90 90 90 90 90 90 90 90 90 90 90 90 90 LowmoorCT 1-4 ____98 98 999191 91;2=;=I-:=rI:L Mount Storm 1 ____74_76 64 80 82 76 76 87 81 81 81 81 B1 81 81 81 81 81 81 Mount Storm 2 ____81_66_60_70 76 86 86 81 81 81 81 81 81 81 81 81 81 61 81 Mount Storm 3 ____71_72_54_76 86 76 86 88 82 82 62 82 82 62 82 82 82 82 82 Mount Storm CT ____96_79______ _________ 90 90 89::- ________:::- ________-

New Pump Storage ::- ________ ::- ________ 70 70 70 70 70 North Anna 1 100 90 93 9889 91 98 79 91 98 91 84 98 84 91 98 91 91 98 North Anna 2 90 99 888998 91 77 98 91 91 98 91 84 98 84 91 91 98 91 North Anna Hydro 100 100 100 29 29 29 29 29 29 29 29 29 29 29 29 29 29 29 29 Northern Neck CT1-4 94 99 979090 90:;-:::-:;---

Possum Point 5 62 57 697784 100;;::;:::-:;-

Possum Point 6 ____75_83 69 60 72 82 84 77 75 75 75 75 75 75 75 75 75 75 75 Possum Point CT 1-6 ____97_95 1009090 90:::::::- ________2--

Remington 1 ____91_94 79 89 90 90 90 90 60 90 90 90 90 90 90 90 90 90 90 Remington 2 ____91 67 7989 90 90 90 90 90 90 90 90 90 90 90 90 90 90 90 Remington 3 70_89_76_69 90 87 90 90 90 90 90 90 90 90 90 90 90 90 90 Remington 4 ____83 88 79 8990 87 90 90 90 90 90 90 90 90 90 90 90 90 90 Roanoke Rapids Hydro ____92_0O_72______ 35 35 35 35 35 35 35 35 35 35 35 35 35 35 35 35 Rosemary ____78 78 859283 96 83 96 90 90 100 100 100 100 100 100 100 100 100 Scott Solar 2424 24 24 24 24 24 24 23 23 23 23 23 23 23 Solar Partnership Program 1414 14 14 14 14 14 14 14 14 14 14 14 14 14 Soiar_DG :15 15 15 15 15 15 15 15 15 15 15 15 15 Southampton 68 84 83 9292 60 100 100 84 84 84 84 100:;---

Surry 1 99 87 8998 91 91 98 84 84 98 84 91 98 74 91 100 100 100 100 Surry 2 ____92 89 100 8791 98 91 84 98 82 84 98 74 91 98 98 100 100 100 US-3 Solar 1 25 25 25 25 25 25 25 25 25 25 25 25 25 25 25 US-3 Solar 2 __________________________________________ 25 25 25 25 25 25 25 25 25 25 25 25 25 25 25 US-4 Solar -25 25 25 25 25 25 25 26 26 26 26 26 26 26 Virginia City Hybrid Energy Center ____74 64 5575 78 78 78 76 77 77 77 77 77 77 77 77 77 77 77 Warren 68 78 80 8172 81 81 81 79 79 79 79 79 79 79 79 79 79 79 Water Strider __________________________________________ 25 25 25 26 26 26 26 26 26 26 26 27 27 27 27 WestmoreIand_PPA -24 25 25 25 25 25 25 25 25 26 26 26 26 26 Whitehouse Solar 2525 24 24 24 24 24 24 24 24 23 23 23 23 23 Woodland Solar 25 25 25 25 25 24 24 24 24 24 24 24 24 24 23 Yorktown 3 ____78 74 717481 81 81 1002----=----

Note: EAF for intermittent resources shown as a capacity factor.

Appendix 5D - Net Capacity Factor for Plan B Company Name: Virginia Electric and Power Company Schedule 9 UNIT PERFORMANCE DATA Net Capacity Factor (%)

(ACTUAL) (PROJECTED)

Unit Name 2017 2018 2027 2033 Altavista 61.3 61.0 40.3 53.1 72.5 40.5 4.6 5.9 6.7 5.7 6.0 Bath County 1*6 14.2 15.5 12.2 10.7 10.2 10.1 10.6 7.3 6.3 7.2 6.8 7.5 Battery_Gen1 13.7 11.7 Battery_Gen2 13.1 13.4 12.6 12.1 12.4 11.9 13.3 14.7 14.6 BatteryJ3en3 12.9 11.9 1Z2 11.9 12.9 15.0 14.9 Battery_Gen4 12.6 14.3 15.1 Battery_Gen5 Bear Garden 74.3 65.3 74.2 65.2 74.6 74.3 76.5 73.1 66.1 63.5 62.2 62.3 53.2 48.8 50.9 41.8 36.3 Brunswick 67.8 70.0 69.1 77.8 77.5 72.9 81.9 80.7 76.2 70.0 67.8 65.5 65.9 60.1 55.9 60.5 54.6 49.6 Chesapeake CT 1,4,6 0.0 0.7 0.1 Chesterfield 5 43.4 Chesterfield 6 31.3 10.6 9.2 7.5 5.0 Chesterfield 7 89.7 74.4 84.3 65.5 62.2 71.8 80.6 70.0 70.1 62.4 57.1 53.9 49.3 51.8 39.0 45.3 36.6 31.1 Chesterfield 8 90.2 53.0 71.9 67.2 52.3 46,3 40.9 47.2 33.1 Dover 1 12.9 13.8 Clover 2 37.3 16.1 13.9 13.5 8.9 7.9 8.2 CVOW - Phase 1 (880MW) 39.4 39.4 39.4 39.5 39.4 39.4 39.4 CVOW - Phase 2 (880kftV) 37.4 39.4 39,4 39.4 39.4 CVOW-Phase 3 (880MW) 35.3 37.4 39.4 39.4 39.4 39.5 39.4 CVOW (Pilot) 44.8 44.8 44.8 44.8 44.8 44.8 44.8 44.8 44.8 44.8 44.8 44.8 44.8 44.8 44,8 Darbytown 1 1.9 2.2 2.0 2.7 2.9 2.2 1.7 1.1 0.7 0.8 0.6 0.5 0.5 0.3 Darbytown2 Z2 3.5 1.0 0.3 Darbytown 3 3.5 1.6 3.5 2.9 1.9 1.7 1.5 1.3 0.9 0.8 0.6 0.5 0.4 2.2 1.0 0.8 0.6 Darbytown 4 3.3 3.5 2.9 2.2 1.7 1.7 1.5 1.3 1.0 0.9 0.8 0.5 0.3 2.6 1.1 0.8 0.6 0.6 Elizabeth River 1 3.3 4.0 1.9 1.6 2.1 2.3 2.4 2.2 1.3 0.8 0.3 02 0.3 0.2 0.1 0.1 2.2 Elizabeth River 2 3.5 8.1 2.6 1.6 2.0 2.3 2.4 2.1 1.2 0.2 0.3 0.2 0.1 0.1 Elizabeth River 3 9.3 1.6 2.1 2.2 1.3 0.7 0.2 0.1 0.1 Gaston Hydro 24.5 16.6 16.6 16.6 16.6 16.6 16.6 16.6 16.6 16.6 16.6 16.6 16.6 16.6 16.6 16.6 Generic Brownfield CT 2.9 2.9 3.6 2.6 1.9 1.3 0.9 0.3 0.3 0.3 0.1 Generic Solar PV- (60mf) 25.4 25.4 25,4 25.4 25.4 25.4 25.4 25.4 25.4 25.4 25.4 25.4 Generic Solar PV PPA Post 2022 25.4 25.4 25.4 25.4 25.4 25.4 Generic Solar PV PPA Pre 2022 25.4 25.4 25.4 25.4 25.4 25.4 25.4 25.4 25.4 25.4 25.4 25.4 25.4 Generic Storage - Battery (Pilot) -14MW 14.2 14.3 13.4 12.1 10.3 9.9 8.6 7.8 8.4 7.3 Generic Storage - Battery (Pilot) -16MW 14.8 14.3 14.2 14,3 13.4 7.8 Gordo nsviDe 1 39.7 34.9 36.5 39.7 32.9 26.7 22.8 211 15.5 19.3 15.2 11.8 Gordonsville2 49.2 61.2 48.1 419 40.1 38.2 38.1 316 28.0 26.6 22.5 21.6 18.4 15.0 11.5 ia9 Gravel Neck 1-2 0.1 0.1 0.0 0.3 Gravel Neck 3 3.6 3.9 19 19 4.3 3.1 1.7 0.6 0.3 0.3 0.3 0,2 Gravel Neck 4 3.0 15 0.7 0.4 0.7 0.6 0.3 Gravel Neck 5 2.9 3.9 3.0 3.0 3.4 3.1 15 12 1.8 0.4 0.3 0.5 0.3 Gravel Neck 6 0.6 1.5 4.0 3.0 3.0 3.0 3.3 4.3 3.1 15 13 1.8 0.6 0.4 0.7 0.3

Appendix 5D cont. - Net Capacity Factor for Plan B Company Name: Virginia Electric and Power Company Schedule 9 UNIT PERFORMANCE DATA Net Capacity Factor (%)

(ACTUAL) (PROJECTED)

Unit Name 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2033 2034 2035 GreensvfDe 34.8 70.9 77.0 78.2 76.4 77.6 75.1 76.0 75.7 74.2 70.8 71.0 66.2 63.3 66.7 63.1 59.5 Hopewell 66.0 68.4 64.0 11.7 35.3 59.2 48.2 3.8 4.3 5.3 3.9 Ladysmith 1 11.3 11.0 9.7 7.0 7.8 8.3 8.7 8.6 6.8 6.0 5.7 5.3 4.9 3.8 3.4 3.2 3.6 1.9 Ladysmith 2 22.3 8.5 9.8 6.9 7.9 8.3 8.6 8.5 6.8 5.2 5.0 3.6 3.6 3.2 3.6 1.9 Ladysmith 3 5.7 9.0 11.7 10.0 7.4 7.9 8.6 8.9 8:7 7.0 6.3 5.9 5.4 5.2 3.9 3.5 3.4 3.9 2.0 Ladysmith 4 5.5 13.4 9.7 7.2 8.6 8.7 7.1 6.3 5.9 5.4 5.1 3.9 3.4 3.4 3.9 8.0 2.0 Ladysmith 5 3.6 3.3 9.8 7.2 8.9 8.7 7.0 6.3 6.0 5.5 5.2 3.9 3.5 3.4 3.9 8.2 8.6 2.0 Lowmoor CT 1-4 0.7 0.1 Mount Storm 1 36.8 38.1 41.2 40.6 32.1 31.9 36.8 1Z4 11.0 11.3 12.6 14.5 13.8 11.3 9.8 6.7 5.2 Mount Storm 2 32.2 34.6 38.0 41.3 45.4 38.0 34.3 39.3 13.0 11.8 12.2 13.9 15.5 15.5 12.1 10.8 7.5 6.0 Mount Storm 3 25.2 29.2 36.0 32.3 24.8 23.5 30.8 7.0 7.3 8.1 9.6 7.9 6.7 5.8 3.8 3.1 8.1 Mount Storm CT New Pump Storage 8.3 7.9 8.5 8.7 North Anna 1 102.3 89.2 96.3 77.8 89.0 96.3 88.9 82.9 96.3 82.9 89.0 68.9 North Anna 2 87.5 89.2 75.7 96.4 68.9 96.4 88.9 82.9 96.4 82.9 88.9 North Anna Hydro 26.2 7.0 29.1 29.0 29.0 29.0 29.1 29.0 29.0 29.0 29.1 29.0 29.0 29.0 29.1 29.0 29.0 29.0 Northern Neck CT 1*4 0.2 Possum Point 5 0.8 0.5 Possum Point 6 57.0 63.3 76.5 77.8 71.3 66.9 62.4 60.2 57.1 54.8 53.4 48.0 36.5 Possum Point CT 1-6 Remington 1 4.7 3.7 5.2 5.7 4.9 3.9 3.1 2.7 1.9 0.8 Remington 2 9.8 16.0 5.1 5.6 3.9 1.9 0.8 Remington 3 10.0 16.8 5.6 5.4 5.2 4.2 3.5 2.9 2.0 0.9 Remington 4 17.7 5.6 3.2 4.6 6,0 6.6 5.2 2.7 2.0 1.9 0.8 8.6 0.8 Roanoke Rapids Hydro 25.7 45.2 36.5 34.5 34.5 34.5 34.5 34.5 34.5 34.5 Rosemary 9.8 2.0 0.2 1.0 1.0 1.0 1.0 Scott Solar 20.6 13.7 13.9 24.4 24.3 24.2 24.1 23.9 23.7 23.6 23.4 23.1 23.0 22.9 22.8 22.7 Solar Partnership Program 13.7 13.7 13.7 13.7 13.7 13.7 13.8 13.7 13.7 13.7 13.7 13.7 13.7 13.7 13.7 13.7 So!ar_DG 14.6 14.6 14.6 14.6 14.6 14.6 14.6 14.6 14.6 14.6 14.6 14.6 14.6 14.6 Southampton 62.5 70.2 59.4 20.6 35.2 60.1 55.8 4.1 Surry 1 102.4 89.4 90.5 95.9 89.2 88.7 95.9 82.9 62.2 95.9 82.8 88.4 95.9 72.5 88.4 Surry 2 94.2 90.7 102.6 85.7 88.7 95.9 88.7 82.3 95.9 80.2 82.2 95.9 72.5 88.4 95.9 95.9 US-3 Solar 1 25.0 25.0 25.0 25.0 25.0 25.0 25.0 25.0 25.0 25.0 25.0 25.0 25.0 25.0 25.0 25.0 US-3 Solar 2 25.0 25.0 25.0 25.0 25.0 25.0 25.0 25.0 25.0 25.0 25.0 25.0 25.0 25.0 25.0 US^t Solar 24.7 24.8 24.9 25.0 25.2 25.3 25.4 25.5 25.7 25.8 26.0 26.1 26.2 26.4 26.5 Virginia City Hybrid Energy Center 55.4 5.7 6.8 7.4 7.4 8.0 10.8 7.9 6.7 7.1 7.8 9.4 8.3 6.7 Warren 75.7 69.2 73.1 69.4 53.0 67.5 73.4 75.4 73.6 62.3 58.5 56.0 56.7 51.9 52.2 Water Strider 25.2 25.3 25.4 25.6 25.7 25.8 26.0 26.1 26.2 26.3 26.4 26.7 26.8 Westmorelend_PPA 24.6 24.7 24.8 25.0 25.1 25.2 25.3 25.5 25.6 25.7 25.9 26.0 26.1 26.2 Whitehouse Solar 23.9 24.7 24.4 24.2 23.9 23.8 23.7 23.6 23.5 23.3 23.2 23.1 23.0 22.9 Woodland Solar 17.8 19.1 21.6 25.1 24.5 24.2 24.0 23.6 23.5 23.4 23.3 Yorktown3 1.1 3.8 0.8 3.0 3.0 3.0 3.0

Appendix 5E - Heat Rates for Plan B Company Name: Virginia Electric and Power Company Schedule 10 UNIT PERFORMANCE DATA Average Heat Rate > (mmBtu/MWh)

(ACTUAL) (PROJECTED)

Unit Name 2017 2018 2019 2020 2021 2022 2023 2024 202& 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Altavista 15.16 15.82 15.18 12.32 12.32 1Z32 12.32 12.32 12.32 12.32 12.32 12.32 Beth County 1-6 Battery_Gen1 Battery_Gen2 Battery_Gen3 Battery_Gen4 Battery_Gen5 Bear Garden 6.54 7.11 7,17 7.17 7.17 7.17 7.17 7.17 7.17 7.17 7,17 7.17 7.17 7.17 7.17 7.17 7.17 7.17 7.17 Brunswick 6,96 6.94 6.86 6.92 6.92 6.92 6.92 6.92 6.92 6.92 6.92 6,92 6.92 6,92 6.92 6.92 6.92 6.92 6.92 Chesapeake CT1,4,6 16.90 15.27 15.87 18.54 18.54 Chesterfield 5 10.23 10,30 10.15 9.86 9.86 9.86 Chesterfield 6 10.25 10.33 10.09 10.14 10.14 10.14 Chesterfield 7 7.53 7.46 7.23 7.33 7.33 7.33 7.33 7.33 7.33 7.33 7.33 7.33 7.33 7.33 7.33 7.33 7.33 7.33 7.33 Chesterfield 8 7,38 7,37 7.32 7,25 7.25 7.25 7.25 7.25 7.25 7-25 7.25 7.25 7.25 7.25 7,25 7.25 7.25 7,25 7.25 Clover 1 10.31 10.41 10,61 9,84 9.84 9,84 9.84 9.84 Clover 2 10,21 10.02 10.34 9.84 9.84 9.84 9.84 9.84 CVOW - Phase 1 (eaOMV)

CVOW - Phase 2 (880MW)

CVOW - Phase 3 (880MW)

CVOW (Pilot)

Darbytown 1 12.45 12.21 12.33 12.04 12.04 12.04 12.04 12.04 12.04 12.04 12.04 12.04 12.04 12.04 12.04 12.04 12.04 12.04 12.04 Darbytown2 12.35 12.16 12.20 12.03 12.03 12.03 12.03 12.03 12.03 12.03 12.03 12.03 12.03 12.03 12.03 12.03 12.03 12.03 12.03 Darbytown 3 12.36 12.21 11.39 12.02 12.02 12.02 12.02 12.02 12.02 12.02 12.02 12.02 12.02 12.02 12.02 12.02 12.02 12.02 12.02 Darbytown 4 12.43 12.27 12.61 12.03 1 2.03 12,03 12.03 12.03 12,03 12.03 1Z03 12.03 12.03 12.03 12.03 12.03 12.03 12.03 12,03 Elizabeth River 1 12.06 12.36 12.38 12.14 12.14 12.14 12.14 12.14 12.14 12.14 12.14 12.14 12.14 12.14 12.14 12.14 12.14 12.14 12.14 Elizabeth River 2 12.24 12.34 12.61 12.15 12.15 12,15 12,15 12.15 12.15 12.15 12.15 12.15 12.15 12,15 12,15 1Z15 12.15 12.15 12.15 Elizabeth River 3 12.11 12.38 12.54 12,15 12.15 12.15 12.15 12.15 12.15 12.15 12.15 12.15 12.15 12.15 12.15 12.15 12.15 12.15 12.15 Gaston Hydro Generic Brownfield CT 6.52 9.52 9.52 9.52 9.52 9.52 9.52 9.52 9.52 9.52 9.52 9.52 9.52 Generic Solar PV- (60MW)

Generic Solar PV PPA Post 2022 Generic Solar PV PPA Pre 2022 Generic Storage - Battery (Pilot) -14WV Generic Storage - Battery (PPot) -16NNV GordonsviDe 1 8.60 8.30 8.13 8.19 8.19 8.19 8.19 8.19 8.16 8.19 8.19 8.19 8.19 8.19 8.19 8.19 8.19 6.19 8.19 GordonsviHe 2 B.51 8.20 8.32 8.18 8.18 8.18 8.18 B.18 8.18 8.18 B.18 8.18 8.18 8.18 8.18 8.18 8.18 B.18 8.18 Gravel Neck 1-2 17.86 18.14 20.16 Gravel Neck 3 12.61 12.84 12.96 12.35 12.35 12.35 12.35 12.35 12.35 12.35 12.35 12.35 12.35 12.35 12.35 12.35 12.35 12.35 12.35 Gravel Neck 4 13.02 12.79 13.05 12.34 12.34 12.34 12.34 12.34 12.34 12.34 12.34 12.34 12.34 12.34 12.34 12.34 12.34 12.34 12.34 Gravel Neck 5 13,09 12.97 13,66 12,35 12.35 12.35 12.35 12,35 12.35 12.35 12.35 12.35 12.35 12.35 1Z35 12.35 12.35 1 2.35 12.35 Gravel Neck 6 12,79 12.79 13.13 12.34 12.34 12.34 12.34 12,34 12.34 12.34 1Z34 12.34 12.34 12.34 12.34 12.34 12,34 1Z34 12,34

Appendix 5E cont. - Heat Rates for Plan B Company Name: Virginia Electric and Power Company Schedule 10 UNIT PERFORMANCE DATA Average Heat Rate * (mmBtu/MWh)

(ACTUAL) (PROJECTED)

Unit Name 2027 2028 Greensville 4.26 6.66 6.66 6.66 6.66 6.66 6.66 6.66 HopeweD 15.98 15.74 16.35 12.10 12.10 12.10 12.10 12.10 12.10 12.10 12.10 Ladysmith 1 9.96 10.30 9.84 10.31 10.31 10.31 10.31 10.31 10.31 10.31 10.31 10.31 10.31 10.31 10.31 10.31 10.31 Ladysmith 2 9.75 9.55 10.31 10.31 10.31 10.31 10.31 10.31 10.31 10.31 10.31 10.31 10.31 10.31 10.31 10.31 10.31 10.31 Ladysmith 3 9.99 9.75 10.31 10.31 10.31 10.31 10.31 10.31 10.31 10.31 10.31 10.31 10.31 Ladysmith 4 10.13 9.60 10.31 10.31 10.31 10.31 10.31 10.31 10.31 10.31 10.31 10.31 Ladysmith 5 9.98 10.17 9.70 10.31 10.31 10.31 10.31 10.31 10.31 10.31 10.31 10.31 10.31 LowmoorCT 1-4 16.86 15.44 16.75 16.76 16.76 Mount Storm 1 10.15 10.42 9.86 9.86 9.86 9.86 9.86 9.86 9.86 9.86 9.86 9.86 9.86 9.86 9.86 9.86 9.86 Mount Storm 2 10.05 10.04 10.38 9.78 9.78 9.78 Mount Storm 3 10.56 10.79 10.60 10.19 10.19 10.19 10.19 10.19 10.19 10.19 10.19 10.19 Mount Storm CT 16.03 14.18 14.63 20.36 20.36 New Pump Storage North Anna 1 10.36 10.36 10.33 10.40 10.40 10.40 10.40 10.40 10.40 10.40 10.40 10.40 10.40 10.40 10.40 10.40 10.40 10.40 10.40 North Anna 2 10.39 10.34 10.34 10.42 10.42 10.42 10.42 10.42 10.42 10.42 10.42 North Anna Hydro Northern Neck CT1-4 16.87 15.44 17.47 16.83 16.83 Possum Point 5 11.87 12.43 9.93 9.93 Possum Points 7.43 7.43 7.43 7.43 7.43 7.43 7.43 7.43 7.43 7.43 Possum Point CT 1-6 17.32 15.28 17.03 Remington 1 10.01 9.92 9.82 10.48 10.48 10.48 10.48 10.48 10.48 10.48 10.48 Remington 2 10.10 10.08 9.98 10.48 10.48 10.48 10.48 10.48 10.48 10.48 10.48 10.48 10.48 10.48 10.48 10.48 10.48 10.48 10.48 Remington 3 9.93 9.85 10.48 10.48 10.48 10.48 10.48 10.48 10.48 10.48 10.48 10.48 10.48 10.48 10.48 10.48 10.48 10.48 Remington 4 9.89 10.48 10.48 10.48 10.48 10.48 10.48 10.48 10.48 10.48 10.48 10.48 10.48 10.48 Roanoke Rapids Hydro Rosemary 9.48 10.07 10.82 8.76 8.76 8.76 8.76 8.76 8.76 8.76 8.76 8.76 8.76 8.76 8.76 8.76 Scott Solar Solar Partnership Program Solar_DG Southampton 15.70 16.45 16.63 11.70 11.70 11.70 11.70 11.70 11.70 11.70 11.70 11.70 Surry 1 10.24 10.26 10.31 10.31 10.31 10.31 10.31 10.31 10.31 10.31 10.31 10.31 10.31 10.31 10.31 10.31 Surry 2 10.33 10.26 10.31 10.31 10.31 10.31 10.31 10.31 10.31 US-3 Solar 1 US-3 Solar 2 US-4 Solar Virginia City Hybrid Energy Center 10.01 9.39 9.39 9.39 9.39 9.39 9.39 9.39 9.39 9.39 9.39 9.39 9.39 9.39 Warren 6.88 6.85 6.87 6.95 6.95 6,96 6.95 6.96 6.96 Water Strider Westmore!and_PPA WWtehouse Solar Woodland Solar VorWown 3 10.86 10.17 9.97 10.15 10.15 10.15 10.15

Appendix 5F - Existing Capacity for Plan B Company Name: Virginia Electric and Power Company Schedule 7 CAPACITY DATA (ACTUAL) (PROJECTED) 2018 2027 I. Firm Capacity (MW)11

a. Nuclear 3,357 3,357 3,357 3,349 3,349 3,349 3,349 3,349 3,349 3,349 3,349 3,349 3,349 3.349 3,349 3,349

b. Biomass

c. Coal 4,400 4,400 3,654 3,632 3,626 3,623 2,609 2,609 2,170 2,170 2,170 2,170 2,170 2,170 2,170 2,170 2,170 2,170

d. Heavy Fuel Ofl 1,572 1,572 1,559 1,413 790

e. Light Fuel Ofl

f. Natural Gas-Bofler

g. Natural Gas-Combined Cycle 4,948 5,756 6,293 6,304 6,304 6,304 6,304 6,304 6,304 6,304 6,139 6,139 6,139 6,139 6,139 6,139 6,139 6,139 6,139

h. Natural Gas-Turbine 2,053 2,053 2,051 2,408 2,408 2,408 2,882 3,367 3,367 3.367 3,367 3,387 3,367 3,367 3,367 3,367 3,367 3,367 3,387

l. Hydro-Conventional

j. Pumped Storage & Battery 1,808 1,808 1,815 1,815 1,820 1,820 1,820 1,924 2,054 2,054 2,164 2,484 2,608 2,732

k. Renewable 1,504 2.215 2,449 2,770 3,125 3,360 3,594 3,627 4,825 5,055 6

L Total Company Firm Capacity 19,782 20,047 19,810 19,391 18,855 18,788 19,148 19,824 20,058 20,356 21,011 21,240 21,604 21,831 22,959

m. Other (NUG)W 238 36 137 260 401 523 710 909 1,319 1,456 1,573 1,759 1,875 2,060 2,175

n. Total 20,020 20,047 19,810 19,741 19,829 19,526 19,114 19,190 19,075 19,867 21,147 21,675 22,467 22,813 23,363 23,706 25,019 25,364 II. Firm Capacity Mix (%)

a. Nuclear

b. Biomass

c. Coal

d. Heavy FuelOl

e. Light Fuel OB

f. Natural Gas-Boiler

g. Natural Gas-Combined Cycle 31.7%

h. Natural Gas-Turbine 10.4%

12.2%

i. Hydro-Conventional 1.4%

1.2%

j. Pumped Storage & Battery

k. Renewable 7.6% 10.7%

11.6%

l. Total Company Firm Capacity 98.8% 100.0% 100.0% 100.0% 99.8% 99.3% 63.1% 92.1%

m. Other (MUG)'41 5.1%

8.6%

ru Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

Notes: 1) Net dependable annual firm capability during peak season.

2) Each item in Section I as a percent of line n (Total).

3) Includes current estimates for renewable capacity by VCHEC.

4) Includes 35% Solar DG and 35% energy storage battery.

Appendix 5G - Energy Generation by Type for Plan B (GWh)

ConrpanyName: Virginia Electric and Power Company Schedule 2 GENERATION (ACTUAL) (PROJECTED) 2018 I. System Output (GWi)

a. Nuclear 28,663 27,361 27,720 27.928 27,601 27,673 27,199 25,925 27,144 27,556 26,691 27,227 26,498 25,923 27,163 28,286

b. Biomass^ 1,163 1,166 1,008 590 867 97 123 121 97 106 43 51 45

c. Coal 15,376 12,302 7,177 6,925 7,027 5,328 5,136 2,035 1,795 1,875 2,084 2,405 2,241 1,615 1,605 1,090

d. Heavy Fuel O!

e. Light Fuel Oil

f. Natural Gas-Boiler

g. Natural Gas-Combined Cyde 26,832 28,500 37,219 39,496 41,421 43,507 43.048 41,601 ___ 39,378 37,654 36,156 34,861 34,699 31.773 29,829 31,925 28,193 25,197

h. Natural Gas-Turbine 1,246 1,888 1,445 1,012 1,113 1,311 1,576 1.760 1,432 1,158 1,007

i. Hydro-Conventional 1,577 1,311

j. Pumped Storage & Battery 2,240 1,934 1,523 1,718 1,634 1,633 1,720 1,603 1,926 2,202 2,202 2,342 2,552 2,665 3,274 3,446

k. Renewable 915 2,294 3,616 5,128 6,423 10,541 17,255 19,258 21,579 23,831 25,355 26,963 28,381 38,709 40,201

l. Total Generation 76,953 76,094 77,750 80,862 79,633 82,877 83,976 83,241 85,039 83,599 87,390 88,298 88,721 90,723 90,048 90,845 93,352 100,588 98,815

m. Purchased Power (NUGs) 4,611 4,289 2,616 219 850 1,647 2,544 3,326 4,208 4,988 6,145 7,164 8,027 8,788 9,569 10,294 11,042 11,786

n. Purchased Power (Battery Storage) 693 753 1,061 1,096

o. Purchased Power (Martel / PJM) 10,488 14,537 4,773 7,127 6,347 7,089 9,315 6,747 9,275 7,304 6,949 7.593 7,208 8,467 7,525 4,272 6,256

p. Total Payback Energy^

q. Less Pumping Energy (3,014) (3,043) (2,801) (1,904) (2,147) (2,023) (2,052) (2,154) (1,994) (2,583) (3,036) (2,962) (3,341) (3,283) (3,444) (3,900) (4,108) (5,204) (5,457)

r. Less Other Salesp) (1.680) (225) (561) (2,222) (1,653) (2,219) (2,268) (2,607) (2,155) (3,126) (4,808) (5,559) (6,636) (8,354) (8,236) (8,922) (10,377) (13,329) (12,952)

s. Total System Firm Energy Req. 87,359 91,652 90,556 81,510 83,370 85,832 88,392 90,340 90,962 91,554 92,200 93,244 94,047 94,838 95,660 ____66,752 ___ 97,440 98,431 99,544 II. Energy Supplied by Competitive Service Providers Notes: (1) Includes current estimates for renewable energy generation by VCHEC.

(2) Payback energy is accounted for in Total Generation.

(3) Includes all sales or delivery transactions with other electric utilities {e.g., firm or economy sales).

Appendix 5H - Energy Generation by Type for Plan B (%)

Company Name: Virginia Electric and Power Company GENERATION (ACTUAL) (PROJECTED) 2018 2027 111 SystemOutput Mix (%)

a. Nuclear 30.6% 34.3% 30.8% 28.5% 28.7%

b. Biomass*0

c. Coal 2.0%

d. Heavy Fuel Oil 0.2% 0.1% 0.0%

e. Light Fuel Oil

f. Natural Gas-Boiler

g. Natural Gas-Combined Cycle 41.1% 50.3% 47.7% 37.1% 33.2%

h. Natural Gas-Turbine 1.3% 0.4%

L Hydro-Conventional

j. Pumped Storage & Battery 1.9% 2.3% 2.3%

2.1% 1.8% 1.8%

k. Renewable 29.1% 39.3%

l. Total Generation 95.8% 102.2%

m. Purchased Power (NUGs)

n. Purchased Power (Battery Storage)

o. Purchased Power (Market / PJMf

p. Total Payback Energy 0.0% 0.0%

q. Less Pumping Energy

r. Less Other Sales -2.7% -2.4% -3.4%

s. Total System Firm Energy Req. 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

IV. System Load Factor 61.0%

Notes: (1) Includes current estimates for renewable energy generation by VCHEC.

(2) Payback energy is accounted for in Total Generation.

(3) Includes all sales or delivery transactions with other electric utilities (e.g., firm or economy sales).

Appendix 51- Solar and Wind Generating Facilities Since July 1, 2018 Cost Nameplate In Service Project Name Status Recovery (MWac) Date Mechanism Hollyfield Operational 17 2018 Company-build Ring-Fence Montross Operational 20 2018 Company-build Ring-Fence Puller Operational 15 2018 Company-build Ring-Fence Colonial Trail West Operational 142 2019 Company-build RAC Gloucester Operational 20 2019 Company-build Ring-Fence Spring Grove 1 In Construction 98 2020 (prop Company-build RAC Sadler In Construction 100 2020 (prop Company-build RAC Westmoreland In Construction 20 2020 (prop PPA Fuel / Base Rives Road

In Construction 20 2020 (prop PPA Fuel / Base Pamplin

In Construction 16 2020 (prop PPA Fuel / Base Hickory

In Construction 32 2020 (prop PPA Fuel / Base Water Strider In Construction 80 2020 (prop PPA Fuel / Base Coastal VA Offshore Wind (CVOW) In Construction 12 2020 (proj) Company-build Base Rate Grasshopper In Construction 80 2020 (proj) Company-build Ring-Fence Belcher In Construction 88 2020 (prop Company-build Ring-Fence Rochambeau In Construction 20 2021 (proj) Company-build Ring-Fence Fort Powhatan In Construction 150 2021 (prop Company-build Ring-Fence Bedford In Construction 70 2021 (proj) Company-build Ring-Fence Rocky Forge In Construction 77 2021 (proj) Company-build Ring-Fence Maplewood In Construction 120 2022 (prop Company-build Ring-Fence

Variable pricing based on PJM energy and capacity prices.

Appendix 5J - Potential Unit Retirements Company Name: Virginia Electric and Power Company Schedule 19 UNIT PERFORMANCE DATA Planned Unit Retlrements,,,

Projected Unit Primary MW MW Unit Name Location Retirement Type Fuel Type Summer Winter Year Gravel Neck 1 Surry, VA CombustionTurbine Light Fuel Oil 2020 28 36 Gravel Neck GT1 12 Gravel Neck GT2 Possum Point 5PI Dumfries, VA Steam-Cycle Heavy Fuel Oil 2021 623 623 Chesapeake CT1 Chesapeake, VA______ CombustionTurblne______ Light Fuel Oil 2022 15 20 Chesapeake GT1 15 Chesapeake CT 2 Chesapeake, VA CombustionTurbine Light Fuel Oil 2022 24 33 Chesapeake GT4 Chesapeake GT6 12 Lowmoor CT Covington, VA________CombustionTurbine Light Fuel Oil 2022 48 65 Lownoor GT 1 12 Lovbmoor GT2 Lovunoor GT3 Lowmoor GT4 12 Mount Storm CT ML Storm, WV________ CombustionTurbine______ Light Fuel Oil 2022 15 ML Storm GT1 Northern Neck CT Warsaw, VA CombustionT urblne Light Fuel Oil 2022 47 63 Northern Neck GT1 12 Northern Neck GT2 Northern Neck GT3 Northern Neck GT4 Possum Point CT Dumfries, VA_________ Steam-Cycle Light Fuel Oil 2022 72 106 Possum Point CT1 12 Possum Point CT2 12 Possum Point CT3 12 Possum Point CT4 12 Possum Point CT5 Possum Point CT6 Yorktown 3m Yorktown, VA Steam-Cycle Heavy Fuel Oil 2023 790 792 Chesterfield 5PI Chester, VA Steam-Cycle Coal 342 Chesterfield 6121 Chester, VA Steam-Cycle Coal 2023 678 690 Clover I12' Clover, VA Steam-Cycle Coal 2025 220 222 Clover 2m Clover, VA Steam-Cycle Coal 2025 219 219 Rosemary121 Roanoke Rapids, NC Combine Cycle Fuel Oil 2027 165 165 Altavlstap) Altavista, VA Steam-Cycle Biomass 2028 51 51 Hopewell131 Hopewell, VA Steam-Cycle 2028 51 51 Southampton*3 Franklin, VA Steam-Cycle Biomass 2028 51 51 Notes: (1) Reflects retirement assumptions used for planning purposes, not finn Company commitments.

(2) These units are shown as planned retirements in all Alternative Plans.

(3) These units are shown as planned retirements in Alternative Plans B, C, and D only.

£ £ i) ia T Appendix 5K-Planned Changes to Existing Generation Units ConpanyNamo; Electric and Powar Company Schedule 13a UNIT PERFORMANCE DATAP1 Unit Size (MW) Uprote end Derate (ACTUAL) (PROJECTED)

~ Unit Name 2017 2018 201fl~ 2020 2021 2022 2023 2024 2023 2036 2027 2028 202fl 2030 2031 2032 2033 2034 TOSS AJtaUsta -_______ -________ - ________________ -

Seth County 1-S - - - ________ -________ -

BearQarden ______ 28_______;________;________ -________ -_________________-________-________ ;________-________;________;________-________ ;________;________^

Bnmswtck - _______ ----------------

Chesapeake CT1,4,6 _______ - _________;________ ________ ________ ^^

Chesterfields _______ ________ ;;---;-;--;-----;

Chesterfield S _______ ;-;;;-________ ________ -_______ _________ --;-;-;;;

Chesterfield? _______ :;;;;________________ _________ :;^;;;:;;;;;________________________________ ^

Chesterfields _______ ^:^

Closer 1 ---22-__________________________________ ________ --2--;-*222 Cbver 2 _______ L_______________ -_________-________

Colonial Trad West _______ --;-;-;;-;---;--;

Derbytown t -________ -__________________ -________-________-________-________-________-________-________-________-________-________ -________-

Darbytown 2 - - -

Darbytown3 _______ ;:::-;;^::2-:;:;:-;

Darbytown 4 _______ ------________________ -------_______ _________ ---

Ebzebeth RtveM _______ ---------2----________________________ _________ --;

Elizabeth Rker2 _______ L_______ -;_________________ _________________________________________________________________________________________ - _______ *_

Elizabeth Rher 3 _______ ;__________________________ -_________

GastonHydro _______ ;;------2---------

Gordonswle 1 _______ ;-----------------

Gordonssile 2 _______ ;-----------------

Onavel Neck P2 _______ ________ ;;;;__________________________________ ________ --________________ -;;;-;;;-

Gravel Neck 3 _______ -;-;-;-_______ _________ -;;---;;-

Gravel Neck 4 _______ -----;-;-;;-;---

GhmsI Neck 5 _______ ------;*;-;-------

atwel NeckS _______ - ________ --^^^^

Gfeens<4Do ________________________________________________________________________________________________________________________________________________

Hopewd _______ ^^.............. ............................................................................................ ................ ^_______i._______^_______i.i. _______

Ledytmthl _______ L-------------;--L Ladysmith 2 _______ ;---;-------------

Ladysmith 3 __________________________________________________________________________________________________________________________________________________________________ _________

Ladysmith 4 - ________ --- --- ---

Ladysmith 5 _______ :________-________ -_________-________ -________-________ -________-________ -________-________ -________-________-________-________-________-________-

LowmoorCT 1-4 _______ --;--*-----;------

ktount Storm 1 _______ -________-________ -________ -________-________-

Mount Storm 2 _______ ----------------________ ________ -

Mount Storm 3 _______ ^________________;-----:-;------

Mount Storm CT _______ ------------------

North Anna 1 ----;;;-;---;--_________________________________ ________ ;

North Anna 2 _______ ;________-________;_________-_________-________________ -________-________ ;________-________-________-________ -________-________ -________-________

North Anna Hydro _______ ------------------

Northern Neck CT M _______ ;---;________________ -;;-;;--;;L Possum Point 5 * (1S3) ;_______________ ________ - _______ ---- _______ -

Possum Point 0 _______ ------------------

Possum Point CT 1-0 _______ ;-----________________ ________ -----------

Remington 1 _______ -________*________ -________ -________ -________-________-________- ________ -________-________-________-

Remington 2 _______ -----------_______ _________ ----

Remngton 3

Remfrigton 4 _______ -----------------

Roanoke Rapids Hydro _______ ^;;;::^;::;;;;^:;

Rosemary _______ - - ________ ---- ________ --- ________

Soott Solar _______ :;;:;;:^________________________:;;:;:;:^;

Solar Partnership Program ------------------*_

Southampton _______ ---------------- - - >>

Surry 1 _______ :-;---------;----

Surry 2 _______ :-----_________________________;_______ _________ ----*----

WflinlaOty Hybrid Energy Center _______ ;;;-:;^;:.-:;;;;;

Warren _______ L;;_________^

WHtehouse Solar _______ ;--;--;---;--;-;-

Woodland Solar _______ -;-;--;-;:-:------

Yorldowna _______ ^---:-;----;----;;*_

Note: Peak net dependable capability as of this filing. Incremental uprates shown as positive and decremental derates shown as negative.

Appendix 5L - Environmental Regulations Key Regulation Compliance Date Baseline Means of Compliance Hg/HAPS Mercury & Air Toxics Standards (1) (MATS) 12/1612011 4/16/2017 All affected units compliant CSAPR (2) 2011 2015/2017 Allowances (In-Sys.; Trading)

SO, SO; NAAQS (75 ppb, 1-hr avg) 6/2/2010 2018 Maintain current % sulfur oil level (3)

DEQ requiring installation/operation of SNCR by 6/1/2019 to meet RACT or permanent 2008 Ozone Standard (75 ppb) May 2012 2019 retirement of unit by 6/1/2021 with operational limitations (no SNCR or NOx limit) in the NOx interim. (4) Mutual agreement executed In June 2019 to retire unit by June 2021.________

2015 Ozone Standard (70 ppb) 10/1/2015 2021 Compliance with RACT (as described above)

CSAPR (5) 2011 2015/2017 Allowances (In-Sys.; Trading)

NSR Permitting for GHGS 5/2010 2011 GHG BACT 10/23/2015 Retro to 1/8/2014 Build Gas CC or Install CCS EGU NSPS (New) (6) (Subpart TTTT) Retro to Proposed revision 12/20/2018 12/20/2018 Proposed revision: Build Gas CC or super-critical coal 10/23/2015 10/23/2015 EGU NSPS (Modified and Reconstructed) (6)

Will need to evaluate on a project-by-project basis.

Proposed revision (Subpart TTTT) 12/20/2018 12/20/2018 To be determined by state plans. States to establish unit-specific emission performance Affordable Clean Energy (ACE) 2019 2024/2025 standards based on identification of best system of emission reductions (BSER) based on (replacement to CPP) unit heat rate improvement potential per EPA-establlshed BSER guidelines.______________

DEQ reproposed and has finalized with starting cap of 28 million tons.

Cap reduced about 3%/year through 2030 (19.6 short tons).

Link to regional trading program via use of consignment auction with revenue returned to Virginia Carbon Regulations 2020 with AIR or RGGI (7)(20) 2019 glidepath to 2030 generators.

If VA joins RGGI in future, auction proceeds go back to state (not generators)

Compliance with renewables, new gas, possible unit retitrements and allowance purchases (if applicable)._______________________

Federal CO, Program Uncertain 2026 Expected Price for CO, CO, (Alternative Federal Legislation)

The Director of Department of Mines, Minerals and Energy (DMME), in consultation with the Secretary of Commerce and Trade, the Secretary of Natural Resources, and the Director of Exectuive Order 43 (30% of VA gen from RE Plan due 7/1/2020 9/16/2019 the Department of Environmental Quality (DEQ), shall develop a plan of action to produce resources, 100% carbon-free by 2050) (19) thirty percent of Virginias electricity from renewable energy sources by 2030 and one hundred percent of Virginias electricity from carbon-free sources by 2050.

Sets a goal for VA to reach net zero emissions by 2045 and additionally states: that by 2040 Virginia will have a net zero carbon energy economy for all sectors, including electricity, Virginia Energy Plan; Commonwealth Energy 7/1/2020 2020 - 2045 transportation, building and industrial sectors. Developing energy resources necessary to Policy produce 30 percent of VA's electricity from renewable energy sources by 2030 and 100 percent from VAs electricity carbon-free sources by 2040._______________________________

VCEA establishes a mandatory portolio standard in VA. There are mandates for significant developments of renewable energy and energy storage resources, as well as retirement of existing carbon-emitting resources. Includes mandatory retirement of certain fossil Virginia Clean Economy Act 7/1/2020 2020 - 2045 generating units: Chesterfield Units 5 8. 6 and Yorktown 3 by 2024. Biomass facilities (Altavista, Hopewell, Southampton) by 2028) and shutting down all remaining fossil generating units by 2045. Allows petition for relief from these provisions if electric reliability or security is at risk

Appendix 5L cont. - Environmental Regulations Key Regulation Compliance Date Baseline Means of Compliance Close landfill & pond due to station closure. Pond and landfill to be excavated and recycled 4/2018; 2020+

offsite. (81 Close all three coal ash ponds by excavating material and placing into new landfill at or 6/2018; 2020+

adjacent to plant (8I________________________________________________________________

All five ponds to be closed. A/B/C and E excavated to D. New landfill to be developed for 4/2018; 2020+

ash In pond D. Continuninq to evaluate onsite landfill or offsite recycling. (8)

Fly SJor Bottom Ash - Wet to Dry Conversion to Include construction and operation of new ASH OCRS 4/17/2015 6/2019; 2020+ landfill; Lower and Upper Pond Closure through excavation and hauling to landfill or off site for recycling; construct new treatment ponds. (8)___________________________________

2020 Landfill closure (due to coal unit retirements) 10/2018 Pond retrofit 10/2018 Pond retrofit and/or rebuilding.

TBD Monitor groundwater and corrective actions, if needed.

2016 (46) 2019 (11) 316(b) Studies to Determine Compliance Needs and Submit Design & Source Water Body 2020 Data 2021 Watef 316tb).1mpisgement & Entrainment 2823 (12) 5/19/20*14 3*6b (ajno>

2023 (13) 2825 (13) VSDs: Screens; Fish Returns 2025 (13) 2023 Possible Low Capacity Exemption Water 12/2023 FGD Water Treatment Facilities Effluent Limitation Guidelines (14) 9/30/2015 ELS 12/31/2023 (15) Bottom Ash - Closed Loop Wet System Seeking ITP which may contain potential mitigation measures to address impingement and Atlantic Sturgeon Endangered Species Listing 2/6/2012 2019/2020 entrainment of Atlantic Sturgeon and impacts to critical habitat (18)_____________________

Thermal discharge studies at CH and SU to determine compliance needs during NPDES Threatened &

permit reissuance.

Endangered 2019-2023 Atlantic Sturgeon Critical Habitat Listing 2017 (17)

Appendix 5L cont. - Environmental Regulations Notes: Compliance assumed January 1 unless otherwise noted.

1) CEC 1-4 retired in 2014. YT 1-2, CH 3-4, MK 1-2 retired in 2019. On 12/28/2018, EPA proposed revisions to MATS Supplemental Finding but proposing to keep MATS in place. MATS went to OMB on 10/4, expecting final rule to be issued first half of 2020.

2) SO2 allowances decreased by 50% in 2017. Retired units retain CSAPR allowances for 4 years. System is expected to have sufficient SO2 allowances.

3) SO2NAAQS modeling submitted to VDEQ in 11/2016. Modeling shows compliance with theNAAQS. EPA has approved and issued notice indicating NAAQS attainment 8/2017. In March 2019, EPA published final rule retaining 75 ppb l-hr SO2NAAQS. No additional impacts expected.

4) VDEQ issued SOP on 1/31/2019.

5) Final revisions to CSAPR reduced ozone season NOx allowances by -22% beginning in 2017. Projected to have sufficient allowances even if limits imposed on use of banked Phase 1 allowances (~ 3.5:1). Retired units retain CSAPR allowances for 4 years. System is expected to have sufficient annual NOx allowances.

6) 2015 rule under EPA review for possible repeal or replacement rule. EPA published proposed revisions on December 20, 2018.

7) In May 2019, VDEQ issued final rule establishing a cap-and-trade program that allows for linkage to an existing regional trading program (such as RGGI) and includes about a 30% reduction from 2020 levels by 2030 and other allowance pool reduction mechanisms. In 2020, legislation passed the Virginia General Assembly related to RGGI.

8) As a result of the 2019 SB1355 legislation, ash in ponds must be excavated and disposed of in the landfill or taken offsite for recycling. Exact timing of start of work at each site TBD.

9) Rule would not apply to Mt. Storm under the assumption that the plants man-made lake does not qualify as a water of the U.S."

10) 316(b) studies will be due with discharge permit applications beginning in.mid-2018. Installation of 316(b) technology requirements will be based on compliance schedules put into discharge permits.

11) 316(b) infonnation due with permit application by March 2019. VDEQ has concurred with CCRS status for impingement but will grant only limited waivers to other requirements.

12) Assumes permit is issued in 2019 with 316(b) with submittal due 270 days before permit expires.

13) Assumes permit issued with a 4-year compliance schedule. Permit issuance dates: North Anna - Dec 2019, Surry - March 2021, CH - September 2021, PP 3 & 4 - April 2023.

14) Rule does not apply to simple-cycle CTs or biomass units.

15) Assumes June 2023 applicability date included in next permit cycle based on timetable of current reconsideration of ELG rule.

16) 316(b) studies and reports completed and submitted to agency. Permits administratively continued and waiting for BTA determination.

17) Compliance dates are determined during NPDES permit reissuance process and are expected to be as follows for each facility: SU-2021, CH-2021.

(18) ITP permit addendum to be filed fall 2019. Expect permit in fall 2020.

(19) The Director of DMME shall report monthly to the Secretary of Commerce and Trade on the progress of these efforts and shall submit the final plan to the Governor by July 1, 2020. Commonwealth shall procure at least 30% of the electricity under the statewide electric contract with Dominion Energy Virginia from renewable energy resources by 2022.

(20) HB 981 and SB 1027 authorizes Virginia to join Regional Greenhouse Gas Initiative model.

Appendix 5M - Tabular Results of Busbar Capacity Factor (%)

S/kW-Ycar 20% 30% 40%

CC - 3X1 170 $ 202 234 $ 266 $ 298 $ 330 $ 362 $ 394 $ 426 $ 459 $ 491 CC - 2X1 185 $ 217 $ 250 283 316 $ 348 381 $ 414 $ 447 $ 479 512 CC-1X1 $ 216 $ 251 $ 285 320 $ 354 $ 389 $ 423 457 $ 492 526 $ 561 CT 64 $ 121 $ 178 235 $ 291 $ 348 $ 405 462 $ 519 576 $ 633 CT (Aero) 126 174 $ 221 269 $ 316 364 $ 411 459 $ 506 554 $ 601 Large Nuclear $ 1,021 $ 1,031 $ 1,042 $ 1,052 $ 1,063 S 1,074 $ 1,084 1,095 $ 1,105 $ 1,116 $ 1,126 Nuclear SMR $ 644 654 $ 664 $ 674 $ 685 $ 695 $ 705 $ 715 $ 725 $ 735 746 Biomass $ 928 979 $ 1,030 $ 1,082 $ 1,133 $ 1,184 $ 1,235 $ 1,286 $ 1,337 $ 1,388 $ 1,440 Fuel Cell $ 1,256 $ 1,285 $ 1,315 $ 1,344 $ 1,373 $ 1,403 $ 1,432 $ 1,461 $ 1,491 $ 1,520 $ 1,549 SCPCw/CCS $ 1,028 $ 1,109 $ 1,190 $ 1,271 $ 1,352 $ 1,433 $ 1,514 $ 1,595 $ 1,676 $ 1,757 $ 1,838 Solar & CT (Aero) $ 248 $ 284 $ 321 $ 357 394 $ 430 $ 467 503 $ 539 576 $ 612 Solar1 $ 104 Wind-Onshore m 255 Wind - Offshore1' 342 Battery Generic (30 MW)1 $ 475 Pump Storage (300 MW)1 $ 841 (1) Solar has a capacity factor of 25%.

(2) Onshore Wind has a capacity factor of 40%.

(3) Offshore Wind has a capacity factor of 42%.

(4) Batteries and Pump Storage have a capacity factor of 15%.

Appendix 5N - Busbar Assumptions Nominal S Heat Rate Variable Cost Fixed Cost Book Life 2020 Real S 1 MMBtu/MWh S/MWh S/kVV-Year CC - 3X1 6.55 $36.57 $170.21 36 $908 CC - 2X1 6.59 $37.37 $184.69 36 $1,102 CC-1X1 6.63 $39.36 $216.12 36 $1,492 CT 9.67 $64.94 $63.86 36 $562 CT (Aero) 932 $54.25 $126.13 36 $1,107 Large Nuclear 10.50 $12.09 $1,020.53 60 $9,352 Nuclear SMR 10.10 $11.64 $643.75 60 $5,478 Biomass 13.00 $58.37 $928.22 40 $6,694 Fuel Cell 8.54 $33.52 $1,255.81 15 $5,879 SCPCw/CCS 11.44 $92.55 $1,027.60 55 $9,081 Solar & CT (Aero) 9.32 $41.60 $247.90 35 (Solar)/36 (CT) $2,670 Solar -$8.99 $127.36 35 $1,363 Wind - Onshore -$8.89 $286.30 25 $1,926 Wind - Offshore -$8.89 $372.85 25 $2,952 Battery Generic (30 MW) $36.51 $410.69 10 $2,224 Pump Storage (300 MW) $47.66 $757.12 50 $7,541 (1) Variable cost for Biomass, Solar, Solar & Aero CT, Onshore Wind, and Offshore Wind includes value for RECs.

(2) Fixed costs include investment tax credits and gas firm transmission expenses.

(3) Values in this column represent overnight installed cost.

Appendix 50 - Renewable Resources for Plan B Company Kane: Virginia Electric and Rover Conpany RENEWABLE RESOURCE GENERATION (GWh)

(ACTUAL) (PROJECTED)

Resource B"' UM Size MW**1 2025 202S 2027 2028 2084 2035 Type11 C-0-D'0' 2017 2018 2019 Hydro Norlh Anna Hydro Roanoke Rapids Hydro Sub-total: NC Sub-total: VA Sub-totat; Hydro Solar Soto Partnership Program VA 2013-2017 Build Erfstina NC Soto NUGe Earing VA Solar NUGa 2020-2021 Purchase VA Dec-2016 Whitehouse Soto WoodtandSoto VA Dec-2016 Westmoretoid_PPA Generic Solar PV PPA 2021-2035 Purchase 2,325 3,107 3.983 4,769 5,926 6,946 7,808 8,568 9,351 10,076 10,824 11,568 Generic Soto PV 1,382 2,708 4,221 8,307 9.807 11,863 14,118 1 5,645 17.213 18,677 20,180 21,676 Sub-total: NC Sub-total: VA 7,629 9,705 12,072 14,146 16,802 19,873 22,987 25,271 27,620 a,804 32,053 34,288 Sub-total: Solar 7,629 9,705 12,072 14,146 16,802 19,873 22,987 25,271 27,620 29,604 32,053 34,288 CVOW (Pilot) 2,633 8,053 6,557 8,827 17,655 17,655 Sub-total: NC Sub-total: VA 8,601 6,871 8,871 8,871 8,912 8,871 17,698 17,698 Sub-total: Wind 44 2,676 8,097 8,601 8,871 8,871 8,871 8,912 8,871 17,698 17,698 Total Renewables: NC 607 609 607 Total Renewables: VA 9,752 14,751 22,245 25,405 28,746 31,860 34,144 36,535 38,677 49,753 51,989 lotaj-BenewabJes 8,284 10,359 15,358 22,852 26,015 29,353 32,468 34,752 37,144 39,265 50,361 52,507 Notes: (1) Per definition in Va. Code §56-576.

(2) Commercial operation date.

(3) Company built, purchased, or converted.

(4) Expected life of facility or duration of purchase contract.

(5) Net summer capacity for hydro, nameplate for solar and wind.

Appendix 5P - Potential Supply-Side Resources for Plan B Company Name: _______________________________________________________________ Schedule 15b UNIT PERFORMANCE DATA Potential Supply-Side Resources (MW)

MW MW Unit Name Unit Type Primary Fuel Type C.O.D. (D Annual Firm Nameplate Solar 2022 Intermittent Solar 2022 319 1,000 Battery Pilot Storage 2023 14 Solar 2023 Intermittent Solar 2023 330 960 Generic CT Peak Natural Gas 2023 485 485 Solar 2024 Intermittent Solar 2024 381 1,180 Generic CT Peak Natural Gas 2024 458 458 Solar 2025 Intermittent Solar 2025 330 960 Generic Battery Storage 2026 160 400 Solar 2026 Intermittent Solar 2026 381 1,180 CVOW-Phase 1 Intermittent Wind 2026 256 852 Generic Battery Storage 2027 200 500 Solar 2027 Intermittent Solar 2027 330 960 CVOW-Phase 2-3 Intermittent Wind 2027 511 1,704 Solar 2028 Intermittent Solar 2028 422 1,300 Generic Battery Storage 2029 200 500 Solar 2029 Intermittent Solar 2029 495 1,440 Pump Storage Storage 2029 300 300 Solar 2030 Intermittent Solar 2030 505 1,540 Solar 2031 Intermittent Solar 2031 372 1,080 Generic Battery Storage 2032 200 500 Solar 2032 Intermittent Solar 2032 372 1,080 Solar 2033 Intermittent Solar 2033 372 1,080 Generic Battery Storage 2034 200 500 Solar 2034 Intermittent Solar 2034 372 1,080 Generic Offshore Wind Intermittent Wind 2034 767 2,556 Solar 2035 Intermittent Solar 2035 372 1,080 Note: (1) Estimated commercial operation date.

m

© p

Appendix 5Q Summer Capacity Position for Plan B a.

CornpanyNara: \feBinfa EtoOfc and Paw Company UTILITY CAPACITY POSITION (MM)

(ACTUAL) (PROJECTED)

Cm 17.620 17,173 16,683 1&662 1A.872 14.43* 14.434 14,289 14^69 14.116 14,116 14.116 14.116 14,116 14,116 14.116 RenewabtoNC RonnwatlaVA Renmotia Storsoa NC Stone* VA 1,806 1,806 1.8CB 1,806 1.808 1,808 1,808 1.806 1.806 Scone* 1,806 1.806 1.808 1.806 IfflSL Total Eattine Capacity 16,802 19355 18.060 17,658 17,068 16630 16£29 16,464 16,464 16,310 1&310 16,310 16,308 18,309 IBJOB J&gSL Gowation Untter Cortsmctton Conwakral RenowabioNC Renown bl* VA Stone* NC Stone* VA Stone*

Toori Ptannad Ccnwrucbon Capacity Generatkri Under D*v<<lopm<<nt Conventional RenauQbiaNC RerwwtlaVA Renowblo Stone* NC StongoVA Stone*

T^l Plannad Oavebpmen Capacity Potanttal(&9ectad) New Capacity Conventional _________ :;;::_____________________________ 485 870 070 970 970 870 970970 970 970970 970 970 Ronewatfe NC _________ ;;;;;;;;;;:;;;;;;;

R<<n*vrttte VA __________;-;;__________ 221 426 665 868 1.360 Z072 Z307 2,623 Z984 3JPO 3.454 3,688 4,686 4,917 Rmwebla _________ :;;;____________________________ 221 426 665 868 1J60 2,072 Z307 2,628 Z964 3,220 3,454 3,688 4,688 4,917 Stone* NC __________^Il_____________________ ~^IIIIIIII~ ~ ~

Stone* VA _________ ;;;;;__________ 6 6 6 110 240 240 370 670 670 800 794 924 924 Stone* __________;*----660 110 240 240 370 670 670 800 794 924 924 Total Potential N*w Capacity __________ ;:;:__________________ 221 918 1,641 1,843 2,440 3^82 3,518 3,868 4,824 4,858 5,224 5,452 6580 6,811 Other (NUQ)

Ccmentlanal 2382*----2;;2- ______ ;222-2_

RenowatteNC _________ *2;22-22-222;22222_

Rtnowiblc VA ~ _________2236 137 260 401 523 663 783 963 1.123 1,260 1,377 1,493 1,609 1,724 1^39 Rwwwotte _________

_________2___________ 36 137 260 401 523 663 783 963 1,123 1,260 1J77 1,433 1,609 1,724 1,639 Stone* NC __________;222222222222222222.

Stone* VA __________22-222--________ 56 126 126 196 196 196 266 268 336 336 Stone* __________2222I:_____________________________ _________ I________ 56 126 126 196 196 196 2Sa 266 338 336 Total Other (MJG) Capacity 2362;;36 137 260 4Q1 523 719 908 1,069 1,319 1,456 1,573 1,759 1,675 Z060 Z175 Urtforwd AwaafelWy _________ 22 Nat Ganaratlon Capacity 20,040 19355 19,863 18,741 18,829 19,528 19,114 19,190 19,075 19,667 20,733 21,147 21,675 22,467 22,813 23.333 23,706 25,019 25,384 EtdstinB DSM Reduction Demand Rapora* _________ 2 22222 2 2 2 2 22 22 22222_

Cor>>ar<<tion£ffWency __________- - - ________ - ________ ;:::;;;;;;

Total Exiatine DSM RedueW* 2 22222 2 2 2 2 2 2 22 22_22.2.

Approved DSM Raduetione Demand Response0' 69 5855__________________ &________ a_________64 64 65 65 65 65 68 6668 88 6666 66 68 ConMrvetioniEfnd*neyp,* 109 122 133129_ 125 127 136 134 122 113 103 102 10199 97 66S3 92 93 Total Approved DSM Reducaens 178 180 190191 168 191 201 190 168 179 171 167 167 165 163 160 159 158 158 Proposed DSM Reductions Demand RMpons*01 7_________27_________47 63 77 83 84 85________ 89 67 88 BC 86________ 90 81________ 92_

CensenotiorVEffleienciP1 _16________ 28_________45 68 88 114 124 124 124 124 128 129 129 129 129 133 Total Proposed DSM Reductions 23 S3_________92 129 165 197 208 2M 210 211 216 217 2)8 219 219 224 UNdenofted DSM Reductions Demand Response'31 __________-^--;;--;-------;;

ConservauontfOclency'51 __________;;;;_________>>_________87 143 209 276 335 447 4Q6 388 4Q9 422 474 377 358 340 Total Proposed DSM Reductions _________ ;--23987 143 209 278 335 447 406 368 409 422 474 377 358 340 Total Oemmd-SMa Redu<<>>on>>,,l 180 182 192 216 282 372 475 575 663 724 629 787 768 792 804 854 757 738 725 Net Generation 4 Demand-side 20,220 19,537 20,055 19,957 20,110 19,900 19,589 19,785 19,738 20,590 21,562 21,934 22,442 23JZS8 23,316 24,217 24,462 25,757 26,089 Capacity Requirement or PJM Ca pad tyObllflatkwi 19,789 20,548 20351 20,022 20,216 19,800 20,150 20,396 20,327 2a599 20596 20,927 21,050 21,219 21,219 21,472 21,818 21963 22,114 Net UOUtyCapteUy Position 452 (1,010) (196) (65) (107) 99 (580) (632) (589) (8) 965 1,007 1,392 2.040 Z396 Z745 2645 3,794 3£7S Notes: (I) Existing DSM programs are included in the load forecast.

(2) Efficiency programs are not part of the Companys calculation of capacity.

(3) Actual historical data based upon measured and verified EM&V results. Projected values represent modeled DSM firm capacity.

Appendix 5R - Capacity Position for Plan B Company Name: Virginia Electric and Power Company Schedule 4 POWER SUPPLY DATA (ACTUAL) (PROJECTED) 2017 2018 2019 2020 2027 2028 2029 2030 2031 2035 L Capability (MW)

1. Summer

a. Firm Capacity Capacity*11 19,802 19,355 19,883 19,741 19,793 19,391 18,855 18,788 18,552 19,148 19,824 20,058 20,356 21,011 21.240 21.604 21.831 22.959 23.189

b. Positive Interchange Commitments*21 238 ________ ::36 137 260 401 523 719 909 1,089 1,319 1,456 1,573 1,759 1,876 2,060 2,175

c. Capability in Co!d Reserve/

Reserve Shutdown Status*11

d. Demand Response - Existing

e. Demand Response - Approved*51 69 58 55 63 63 64 64 65 65 65 65 66

f. Demand Response-Future*51 66 66 83 84 85 87 92

g. Total Net Summer Capability*41 20,109 19,413 19,918 19,809 19,917 19,637 19,240 19,330 19,221 20,014 20,881 21,297 21,825 22,618 22,965 23,516 23,860 25,174 25,520

2. Winter a Firm Capacity Capacity*11 19,802 19,355 19,863 20,824 20,796 20,176 19,366 19,099 18,660 19,022 19,500 19,502 19,482 19,785 19,781 19,913 19,909 20,808 20,810

b. Positive Interchange Commitments*21 238 - - - 0 1 2 3 5 62 133 134 206 207 208 279 280 351 352

c. Capability in Cold Reserve/

Reserve Shutdown Status*11

d. Demand Response*51 16 37 58 76 106 107 108 109

e. Demand Response-Existing*31 1 1

f. Total Net Winter Capability*41 20,046 19,361 19,869 20,840 20,833 20,235 19,444 19,194 18,765 19,186 19,736 19,741 19,793 20,098 20,096 20,300 20,298 21,269 21,272 Notes: (1) Net seasonal capability.

(2) Does not include firm commitments from existing NUGs and estimated solar NUGs.

(3) Included in the winter capacity forecast.

(4) Does not include behind-the-meter generation MW.

(5) Actual historical data based upon measured and verified EM&V results. Projected values represent modeled DSM firm capacity. Values reflective of free-ridership.

Appendix 5S - Construction Forecast for Plan B Company Man*: \flrglnia Electric and Power Company Schedule 17 CONSTRUCTION COST FORECAST (Thousand Dollars)

(PROJECTED) 202020212QU_________________________ M23202420252026202720>>___________________________ 2029attO203120322033____________________________^42035 L NewTradittonal Generating Facilities

a. Construction ExpencStures (norvAFUOC) 319,604 326,223 518,290 644,648 436,991 312,115 385,020 361.492 249.7B4 248,610 216.379 59,406 90_^L

b. AFUDC 674 2,0363,816 5,1295,9537,5329,001 10,617 11,948 12,999 13,9796^166^41

c. Annual Total 320,478 328359 522,106 649,976 442,944319,647 394,021 392,109 261,732 261,809 230,35665,5226^31-

d. Cumufative Total 320,478 648,736 1,170,843 1,820,819 2,263.763 2,583,411 2,977.432 3,369,541 3,631,273 3,693,083 4,123,441 4,188,962 4,165,293 4,195,293 4.165,293 4,195,293 D. New Renewable Generating Facilities

a. Construction ExpencStures (non-AFUDC) 1373,964 686^42 1,510,731 1,751,487 2,668,887 3,522^21 2,886,428 2,173,190 1,776,645 1,485,727 1.677,360 1,721,729 3,653,218 4,534,938 1,852,148 -

b. AFUDC 3,619 6,8158,220 10,995 16,77217,15014,1499,08011,811 11,69311,876 14,142 2036632J2265,469-

c. Annual Total 1,377,583 993,057 1.518,951 1,762,483 Z985.6S9 3,539.771 2,900,577 2.182269 1,788,457 1,497,421 1,989,238 1,735,670 3,673,465 4,567,164 1.857,617-

d. Cumulative Total 1,377,583 2,370,640 3,669.592 5,652,074 8,637,733 12,177,505 15,078,081 17,260.351 19,048,807 20,546328 22,535,466 24371,336 27,944,621 32511.QS5 34,369,601 34,369,601 ID. New Storage Facilities a Construction ExpencStures (non-AFUDC) 60,059 31,873 48,798 40,065 773,117 1,082,325 1,076,455 569,975 1,251,422 147,33456,572 851,006____________ 882,437____________ 732,024

b. AFUDC 169265435_491 2,206 6,810 8,9758J28713,041 11,677 ____________ 2,760 ^2,662 _______________________________ 2,374

c. Annual Total 80,227 32,138 49,234 40,556 775,323 1,089,135 1,085,430 578,261 1,264,463 159,01156,572 853,765____________ 885,299____________ 734,398

d. Cumulative Total 80,227 112,385 161,599 202,156 977,478 2,066,613 3,152.043 3,730,304 4,994,767 5.153,778 5,210,350 6,064,115 6,064,115 6,949,414 6.949,414 7.663.812 IV. Other Facilities

a. Transmission 921885 885723751^751751^751751751751751751^751 751_751

b. Distribution 1,1341,2501,4081,3501,2481,1291,1211,1181,115831_831_831BSI^831_8312l

c. Energy Conservation & DR 16ooooggggggggggo

d. Other

e. AFUDC ___ 44_________ a504547£_____________________ £__________ £___________ £__________ £££___________£££__________ £

f. Annual Total 2,1162J912,3442,117 2,0461,926 1^9191^9151^131,6291^291j6291,6291,6291,629 1,629

g. Cumulative Total 2,116 4,3076,6506,768 10.81412,74014,659 1 6,57418,486 20,11521,74423,372 25,00126,630 28,258 29,887 V. Total Construction Expenditures

a. Annual 1,760,404 1,355,645 2,092,635 2,455,133 4,205,972 4,950,479 4,381,947 3,154,555 3,316,564 1.919,869 2,277,797 2,656,788 3,681,444 5,454,092 1,859,246 736,027

b. Cumulative 1,760,404 3,136,049 5228,664 7.683,817 11,889.789 16,840,268 21,222^15 24,376,770 27,693.334 29,613,203 31,891,000 34.547,786 38,229,230 43,683,322 45,542,567 46,276,594 V], % of Funds for Total Construction Provided from External Financing WAWA________ m,________ ^________ ____________ M_____________________ WANAWANAhVAhtfANANANA

2

©© Air Conditioner Cycling Program 33 Branded Name: Smart Cooling Rewards State: Virginia & North Carolina Target Class: Residential VA Program Type: Peak-Shaving NC Program Type: Peak-Shaving VA Duration: 2010-2045 NC Duration: 2011 -2045 Program

Description:

This Program provides participants with an external radio frequency cycling switch that operates on central air conditioners and heat pump systems. Participants allow the Company to cycle their central air conditioning and heat pump systems during peak load periods. The cycling switch is installed by a contractor and located on or near the outdoor air conditioning unit(s). The Company remotely signals the unit when peak load periods are expected, and the air conditioning or heat pump system is cycled off and on for short intervals.

Program Marketing:

The Company uses business reply cards, online enrollment, and call center services.

Non-Residential Distributed Generation Program Branded Name: Distributed Generation State: Virginia Target Class: Non-Residential VA Program Type: Demand-Side Management VA Duration: 2012-2045 Program

Description:

As part of this Program, a third-party contractor will dispatch, monitor, maintain and operate customer-owned generation when called upon by the Company at anytime for up to a total of 120 hours0.00139 days 0.0333 hours 1.984127e-4 weeks 4.566e-5 months per year.

The Company will supervise and implement the Non-Residential Distributed Generation Program through the third-party implementation contractor. Participating customers will receive an incentive in exchange for their agreement to reduce electrical load on the Companys system when called upon to do so by the Company. The incentive is based upon the amount of load curtailment delivered during control events.

When not being dispatched by the Company, the generators may be used at the participants discretion or to supply power during an outage, consistent with applicable environmental restrictions.

Program Marketing:

Marketing is handled by the Companys implementation vendor.

Appendix 6A cont. - Description of Active DSM Programs Income and Age Qualifying Home Improvement Program Target Class: Residential VA Program Type: Energy Efficiency NC Program Type: Energy Efficiency VA Duration: 2015-2045 NC Duration: 2016-2045 Program

Description:

This Program provides income and age-qualifying residential customers with energy assessments and direct install measures at no cost to the customer.

Program Marketing:

The Company markets this Program primarily through weatherization assistance providers and social services agencies.

Small Business Improvement Program Target Class: Non-Res idential VA Program Type: Energy Efficiency NC Program Type: Energy Efficiency VA Duration: 2016-2045 NC Duration: 2017-2045 Program

Description:

This Program provides eligible small businesses an energy use assessment and tune-up or re commissioning of electric heating and cooling systems, along with financial incentives for the installation of specific energy efficiency measures. Participating small businesses are required to meet certain connected load requirements.

Program Marketing:

The Company uses a number of marketing activities to promote its approved DSM programs, including but not limited to: direct mail, bill inserts, web content, social media, and outreach events. Because these programs are implemented using a contractor network, customers will enroll in the program by contacting a participating contractor. The Company utilizes the contractor network to market the programs to customers as well.

a w

Appendix 6A cout. - Description of Active DSM Programs Non-Residential Prescriptive Program as Target Class: Non-Residential as VA Program Type: Energy Efficiency NC Program Type: Energy Efficiency VA Duration: 2017-2045 NC Duration: 2018-2045 Program

Description:

This Program provides an incentive to eligible non-residential customers not otherwise eligible or who choose not to participate in the Companys Small Business Improvement Program. The Program offers incentives for the installation of energy efficiency measures such as Refrigerator Evaporator Fans (Reach-in and Walk-in Coolers and Freezers), Commercial ENERGY STAR Appliances, Commercial Refrigeration, Commercial ENERGY STAR Ice Maker, Advanced Power Strip, Cooler/Freezer Strip Curtain, HVAC Tune-Up, Vending Machine Controls, Kitchen Fan Variable Speed Drives and Commercial Duct Testing and Sealing.

Program Marketing:

The Company uses a number of marketing activities to promote its approved DSM programs, including but not limited to: direct mail, bill inserts, web content, social media, and outreach events. Because these programs are implemented using a contractor network, customers will enroll in the program by contacting a participating contractor. The Company utilizes the contractor network to market the programs to customers as well.

Residential Appliance Recycling Program Target Class: Residential VA Program Type: Energy Efficiency NC Program Type: Energy Efficiency VA Duration: 2019-2045 NC Duration: 2020 - 2045 Program

Description:

This Program provides incentives to eligible residential customers to recycle specific types of qualifying freezers and refrigerators that are of specific of age and size. Appliance pick-up and proper recycling services are included.

Program Marketing:

The Company uses a number of marketing activities to promote its approved DSM programs, including but not limited to: direct mail, bill inserts, web content, social media, and outreach events.

Appendix 6A cont. - Description of Active DSM Programs Residential Efficient Products Marketplace Program Target Class: Residential VA Program Type: Energy Efficiency NC Program Type: Energy Efficiency VA Duration: 2019- 2045 NC Duration: 2020- 2045 Program

Description:

This Program provides eligible residential customers an incentive to purchase specific energy efficient appliances with a rebate through an online marketplace and through participating retail stores. The program offers rebates for the purchase of specific energy efficient appliances, including lighting efficiency upgrades such as A-line bulbs (prior to 2020), reflectors, decoratives, globes, retrofit kit and fixtures, as well as other appliances such as freezers, refrigerators, clothes washers, dehumidifiers, air purifiers, clothes dryers, and dishwashers.

Program Marketing:

The Company uses a number of marketing activities to promote its approved DSM programs, including but not limited to: direct mail, bill inserts, web content, social media, and outreach events.

Residential Home Energy Assessment Program Target Class: Residential VA Program Type: Energy Efficiency NC Program Type: Energy Efficiency VA Duration: 2019-2045 NC Duration: 2020 - 2045 Program

Description:

This Program provides qualifying residential customers with an incentive to install a variety of energy saving measures following completion of a walk-through home energy assessment. The energy saving measures include replacement of existing light bulbs with LED bulbs, heat pump tune-up, duct insulation/sealing, fan motors upgrades, installation of efficient faucet aerators and showerheads, water heater turndown, replacement of electric domestic hot water with heat pump water heater, heat pump upgrades (ducted and ductless), and water heater and pipe insulation.

Program Marketing:

The Company uses a number of marketing activities to promote its approved DSM programs, including but not limited to: direct mail, bill inserts, web content, social media, and outreach events. Because this program is implemented using a contractor network, customers will enroll in the program by contacting a participating contractor. The Company utilizes the contractor network to market the programs to customers as well.

M a

Appendix 6A cont. - Description of Active DSM Programs a

Non-Residential Lighting Systems & Controls Program Target Class: Non-Residential VA Program Type: Energy Efficiency NC Program Type: Energy Efficiency VA Duration: 2019-2045 NC Duration: 2020-2045 Program

Description:

This Program provides qualifying non-residential customers with an incentive to implement more efficient lighting technologies that can produce verifiable savings. The Program promotes the installation of lighting technologies including but not limited to LED based bulbs and lighting control systems.

Program Marketing:

The Company uses a number of marketing activities to promote its approved DSM programs, including but not limited to: direct mail, bill inserts, web content, social media, and outreach events. Because this program is implemented using a contractor network, customers will enroll in the program by contacting a participating contractor. The Company utilizes the contractor network to market the programs to customers as well.

Non-Residential Heating and Cooling Efficiency Program Target Class: Non-Residential VA Program Type: Energy Efficiency NC Program Type: Energy Efficiency VA Duration: 2019 - 2045 NC Duration: 2020-2045 Program

Description:

This Program provides qualifying non-residential customers with incentives to implement new and upgrade existing high efficiency heating and cooling system equipment to more efficient HVAC technologies that can produce verifiable savings.

Program Marketing:

The Company uses a number of marketing activities to promote its approved DSM programs, including but not limited to: direct mail, bill inserts, web content, social media, and outreach events. Because this program is implemented using a contractor network, customers will enroll in the program by contacting a participating contractor. The Company utilizes the contractor network to market the programs to customers as well.

y

© w

Appendix 6A cont. - Description of Active DSM Programs

Description:

This Program provides qualifying non-residential customers with incentives to install solar reduction window film to lower their cooling bills and improve occupant comfort.

Program Marketing:

The Company uses a number of marketing activities to promote its approved DSM programs, including but not limited to: direct mail, bill inserts, web content, social media, and outreach events. Because this program is implemented using a contractor network, customers will enroll in the program by contacting a participating contractor. The Company utilizes the contractor network to market the programs to customers as well.

Non-Residential Small Manufacturing Program Target Class: Non-Residential VA Program Type: Energy Efficiency NC Program Type: Energy Efficiency VA Duration: 2019-2045 NC Duration: 2020 - 2045 Program

Description:

This Program provides qualifying non-residential customers with incentives for the installation of energy efficiency improvements, consisting of primarily compressed air systems measures for small manufacturing facilities.

Program Marketing:

The Company uses a number of marketing activities to promote its approved DSM programs, including but not limited to: direct mail, bill inserts, web content, social media, and outreach events. Because this program is implemented using a contractor network, customers will enroll in the program by contacting a participating contractor. The Company utilizes the contractor network to market the programs to customers as well.

Appendix 6A cont. - Description of Active DSM Programs Non-Residential Office Program Target Class: Non-Residential VA Program Type: Energy Efficiency NC Program Type: Energy Efficiency VA Duration: 2019-2045 NC Duration: 2020-2045 Program

Description:

This Program provides qualifying non-residential customers with incentives for the installation of energy efficiency improvements, consisting of recommissioning measures at smaller office facilities.

Program Marketing:

The Company uses a number of marketing activities to promote its approved DSM programs, including but not limited to: direct mail, bill inserts, web content, social media, and outreach events. Because this program is implemented using a contractor network, customers will enroll in the program by contacting a participating contractor. The Company utilizes the contractor network to market the programs to customers as well.

Residential Customer Engagement Program Target Class: Residential VA Program Type: Energy Efficiency NC Program Type: Energy Efficiency VA Duration: Re-Proposed NC Duration: Future Program

Description:

This Program provides educational insights into the customers energy consumption via a Home Energy Report (on-line and/or paper version). The Home Energy report is intended to provide periodic suggestions on how to save on energy based upon analysis of the customers energy usage. Customers can opt-out of participating in the program at any time.

Appendix 6A cont. - Description of Active DSM Programs Residential Smart Thermostat Program (DR)

Target Class: Residential VA Program Type: Demand Response NC Program Type: Demand Response VA Duration: Re-Proposed NC Duration: Future Program

Description:

All residential customers who are not already participating in the Companys DSM Phase I Smart Cooling Rewards Program and who have a qualifying smart thermostat would be offered the opportunity to enroll in the peak demand response portion of the Program. Demand Response will be called by the Company during times of peak system demand throughout the year and thermostats of participating customers would be gradually adjusted to achieve a specified amount of load reduction while maintaining reasonable customer comfort and allowing customers to opt-out of specific events if they choose to do so.

Residential Smart Thermostat Program (EE)

Target Class: Residential VA Program Type: Energy Efficiency NC Program Type: Energy Efficiency VA Duration: Re-Proposed NC Duration: Future Program

Description:

This Program provides an incentive to customers to either purchase a qualifying smart thermostat and/or enroll in an energy efficiency program, which helps customers manage their daily heating and cooling energy usage by allowing remote optimization of their thermostat operation, and provides specific recommendations by e-mail or letter that customers can act on to realize additional energy savings. The Program is open to several thermostat manufacturers, makes, and models that meet or exceed the Energy Star requirements and have communicating technology. Rebates for the purchase of a smart thermostat are provided on a one-time basis; incentives for participation in remote thermostat management are provided on an annual basis. For those customers who are enrolled in thermostat management, additional energy-saving suggestions based on operational data specific to the customer's heating and cooling system are provided to the customer at least quarterly.

Appendix 6B - Approved Programs Non-Coincidental Peak Savings for Plan B (kW) (System Level)

Appendix 6C- Approved Programs Coincidental Peak Savings for Plan B (kW) (System Level)

Alt Conditfon<< CjcSng Program RctMwrtial Law Incoma Program ReaklaotBl Uphtiixi Program 10,388 Comnwcfed Ughtinfl PracFtn CamwcM tfVAC Upgrade al Energy Aufit Pregracn Noo-Reaidentai DuctTacinfl and Serfng Program Non*Ridenlial Oistribulad Generakn Pfopram Reaklanlal Bundle Procrara ReektertM Home Energy Check-Up Program RMfderBW Duct Saatfnfl Program Reeidenttat Heat Pump Tuna Up Program Residential Meat Pump Uppads Progam Non-RewdortM Window FMm Program

_52! _S2n Non-Resktenttal Lighting Syetoms & Contrele Program tial Heating and Goofing Eifloency Program -jm Income end Age Dual Reeidenfal Appliance Recydng Program Smafl Buetnesa Impro it Progem 15,213 15,513 Residential Ratal LED Lighting Program (NC only)

Noo-Reeidenttal Preacripdra Program Residential Efficient Produca Maricotplace Program

-sas 13,888 Resktonda] Customer Engagement Program NorvResidental L^htinfl Syearm 8 Controls Pro -4S<<.

I.*6 15^36 Residential Apptanee RecyJirm Ptogiam Morv-Reaidentkl Heating end Codhg Efficiency Program 6,107 8,175 NcoReeidentia] Window Pirn Program _^e 8307 2,245 Residential Home Energy Assessment Program Residential Smart Thermostat Management Program (DR) m(EE)

Residential Smart The Non-Reeidendal Office Program 3738 3-*5 2,044 Non-Residentlal Smal Manufacturing Program Note: Values reflective of free-ridership.

Appendix 6D - Approved Programs Energy Savings for Plan B (MWh) (System Level) to Contfuenet Cyclng Progren RetfdemMLaw Income Program ReoMemtai UgPtino Program CommefcbU Lignting Program CommofcbU HVAC Upgratte 2,*5^

Moo-ReaMeram EowgY Audfl Program Mon-Reildarakl Dud Teatog and Saalng Program 80,567 Mo>>vRe<<fctetfi^ OhattxJwl Generation Ptograra Reaidewial Bunda Program ill.

Rttkientid Home Enotpy Chock-Up Program Rraberflal Duct Scafing Program RwtttntMHmPumpTune Up Program RaaUawM Hut Pump Upgroda Program Non-RwfctertM UgtttJng Syamm 8 Canlre>> Program arS<<> g>.sea MofvRatMamM Hotting and Caoflng Effidancy Program 34,035 34,035 Income and Age Qua! tying H mca Recycing Program 17,043 17^37 _1I^

Smil Bualnfcsa ImpnwemeK Program 9?nno ReatentM RetaB LED UgWing Program [WC artfl 18,142 20,01 21,261

.21 ResUertW Emdera Products M 128,674 205,013 280,431 RwMtntlal Customer Engagament Ptogram 50,610 49,025 45,649 46,649 42 503 39,570 50,810 Noo-Raaidentiai Ughling Syttams 6 Ccrtrois Program 31,657 45,645 46522 465SS RaaMwttlal Appflancc Rtcydng Program >>.3*6 30,824 Ncn-RasidcntBl Hadfrig <<nd Codng Efficiency Program 18245 28^16 44'ss0l 44,884 31,334 45,205 Mcn-ResMantM Wlndew Flm Program 9237 RasUential Heme En.ro 58,746 61224 61,832 MQR)

RasidenUal Sman TlwmoiUl W x Program (EE) 6244 23,706 23,967 24221 NarvRetldtntM OtBce Program 24228 25217 15,542 16,679 . .IMgi 16,677 Note: Values reflective of free-ridership.

Appendix 6E - Approved Programs Penetrations for Plan B (System Level)

Note: Values reflective of ffee-ridership.

Appendix 6F - Description of Proposed Programs Residential Electric Vehicle EE/DR Program State: Virginia & North Carolina Target Class: Residential VA Program Type: Energy Efficiency NC Program Type: Energy Efficiency VA Duration: Proposed NC Duration: Future Program

Description:

The Residential Electric Vehicle Program would provide an incentive to customers to purchase a qualifying charger for their electric vehicle and who agree to enroll in the demand response ("DR")

component of the proposed program. Customers who receive an incentive for the purchase of the qualifying chargers must also participate in the DR component of the program. Demand response would be called by the Company during times of peak system demand throughout the year and vehicle chargers enrolled in the Program would be activated by remote control to temporarily reduce load. Customers can opt-out of specific events if they choose to do so.

Residential Electric Vehicle Peak Shaving Program State: Virginia & North Carolina Target Class: Residential VA Program Type: Peak Shaving NC Program Type: Peak Shaving VA Duration: Proposed NC Duration: Future Program

Description:

The Residential Electric Vehicle Peak Shaving Program is for customers who already have a qualifying Level 2 charger and wish to participate in the demand response component only (no purchase incentive).

Appendix 6F cont. - Description of Proposed Programs Residential Energy Efficiency Kits Program State: Virginia & North Carolina Target Class: Residential VA Program Type: Energy Efficiency NC Program Type: Energy Efficiency VA Duration: Proposed NC Duration: Future Program

Description:

The Residential Energy Efficiency Kits Program would provide residential customers with newly connected homes die opportunity to receive Welcome Kits. The Welcome kit will initially include a Tier I advanced power strip and an educational insert informing customers about opportunities to manage their energy use and how to opt into receiving additional free measures by going online to the program website or calling the program hotline. To receive the additional measures, customers will have to confirm their address and account status and answer a few questions to confirm the measures will be of value in producing electric energy savings in the home. Additionally, customers will receive educational materials on proper use of each measure, energy use in general, and energy savings available through other Company DSM programs.

Residential Home Retrofit Program Target Class: Residential VA Program Type: Energy Efficiency NC Program Type: Energy Efficiency VA Duration: Proposed NC Duration: Future Program

Description:

The Residential Home Retrofit Program would target high users of electricity within the Company's Virginia service territory with an incentive to conduct a comprehensive and deep whole house diagnostic home energy assessment by BPI certified whole house building technicians. The diagnostic-driven audit will typically take between 2 Vi and 4 hours4.62963e-5 days 0.00111 hours 6.613757e-6 weeks 1.522e-6 months depending on home size, and will include: visual inspection of all areas of the home including attic and crawl spaces; blower door testing of envelope leakage; duct blaster equivalent testing of ducting system if present; line logger testing of major appliances; thermal imaging where required; physical measurements of key spaces and insulation levels; and efficiency determinations of major equipment.

Appendix 6F cont. Description of Proposed Programs Residential Manufactured Housing Program Target Class: Residential VA Program Type: Energy Efficiency NC Program Type: Energy Efficiency VA Duration: Proposed NC Duration: Future Program

Description:

The Residential Manufactured Housing Program would provide residential customers in manufactured housing with educational assistance and an incentive to install energy efficiency measures. The auditor will perform a walk-through audit covering the envelope and all energy systems in the home, paying particular attention to the condition of DHW and HVAC systems, levels of insulation, and the condition of belly board. The contractor will be required to use the Programs energy analysis software to collect required data to perform energy calculations and generate a detailed report showing projected energy and potential cost savings specific to each customers home. The intuitive audit software calculates and captures measure level savings values, which produces a consumer-friendly report outlining energy savings recommendations. The auditor will review the findings and recommendations of the complete report with the homeowner. The auditor will utilize a user-friendly audit software that calculates and captures measure-level savings values and produces a consumer-friendly report that clearly outlines additional energy savings recommendations. The auditor will review the findings and recommendations of the complete report with the homeowner.

Residential New Construction Program Target Class: Residential VA Program Type: Energy Efficiency NC Program Type: Energy Efficiency VA Duration: Proposed NC Duration: Future Program

Description:

The Residential New Construction Program will provide incentives to home builders for the construction of new homes that are ENERGY STAR certified by directly recruiting existing networks of homebuilders and Home Energy Rating System (HERS) Raters to build and inspect ENERGY STAR Certified New Homes. ENERGY STAR certification requires that homes be efficient at the system level instead of a menu-based offering. ENERGY STAR certification of new homes involves a whole-house set of standards that ensure homes are at least 15% more efficient than a home built to state-level minimum codes. Key components include: Shell improvements, HVAC performance, proper ventilation requirements (supports healthy indoor environments in certified homes) and durability (proper weather sealing, flashing details, site and foundation details). Participating homes must submit an energy model developed using Ekotrope or REM/Rate energy modeling software, along with a copy of the home's ENERGY STAR certificate (both provided by the rater) in order to qualify for an incentive.

Appendix 6F cont. Description of Proposed Programs Residential/Non-Residential Multifamily Program Target Class: Residential/Non-Residential VA Program Type: Energy Efficiency NC Program Type: Energy Efficiency VA Duration: Proposed NC Duration: Future Program

Description:

The Multifamily Program is designed to encourage investment in both residential and commercial (he.,

common spaces) service aspects of multifamily properties. The Program design is based on a whole building approach where the implementation vendor will identify as many cost-effective measure opportunities as possible in the entire building (both residential and commercial meter) and encourage property owners to address the measures as a bundle. This approach provides one-stop-shop programming for multifamily property owners with solutions to include direct install-in-unit measures and incentives for prescriptive efficiency improvements. The Program will identify, track and report residential (in-unit) and commercial (common space) savings separately according to the account type.

Non-Residential Midstream EE Products Program Target Class: Non-Residential VA Program Type: Energy Efficiency NC Program Type: Energy Efficiency VA Duration: Proposed NC Duration: Future Program

Description:

The Non-Residential Midstream EE Products Program consists of enrolling equipment distributors into the Program through an agreement to provide point-of-sales data in an agreed upon format each month.

These monthly data sets will contain, at minimum, the data necessary to validate and quantify the eligible equipment that has been delivered for sale in the Company's service territory. In exchange for the data sets, the distributor will discount the rebate-eligible items sold to end customers. This Program aims to increase the availability and uptake of efficient equipment for the Companys non-residential customers.

Appendix 6F cont. - Description of Proposed Programs Non-Residential New Construction Program Target Class: Non-Residential VA Program Type: Energy Efficiency NC Program Type: Energy Efficiency VA Duration: Proposed NC Duration: Future Program

Description:

The Non-Residential New Construction Program would provide qualifying facility owners with incentives to install energy efficient measures in their new construction project. Program engineers will determine what potential energy efficiency upgrades are of interest to the owner and feasible within their budget. These measures coupled with basic facility design data will be analyzed to determine the optimized building design. This in-depth analysis will be performed using building energy simulation models, which will allow for bundles of measures to be tested for potential energy savings gains from interactive effects. The results will be presented to the facility owner to determine which measures are to be installed. Program design building types modeled include small offices, medium offices, stand-alone retail, and outpatient health care.

Small Business Improvement Enhanced Program Target Class: Non-Residential VA Program Type: Energy Efficiency NC Program Type: Energy Efficiency VA Duration: Proposed NC Duration: Future Program

Description:

The Small Business Improvement Enhanced Program would provide small businesses an energy use assessment and tune-up or re-commissioning of electric heating and cooling systems, along with financial incentives for the installation of specific energy efficiency measures. Participating small businesses would be required to meet certain size and connected load requirements.

Appendix 6F cont. - Description of Proposed Programs House Bill 2789 Program (Heating and Cooling/Health and Safety Component)

Target Class: Residential/Non-Residential VA Program Type: Energy Efficiency NC Program Type: Energy Efficiency VA Duration: Proposed NC Duration: Future Program

Description:

The Heating and Cooling/Health and Safety Component of Virginia House Bill 2789 requires that a petition be submitted for a program for income qualifying, elderly and disabled individuals. This component would offer incentives for the installation of measures that reduce residential heating and cooling costs and enhance the health and safety of residents, including repairs and improvements to home heating and cooling systems and installation of energy-saving measures in the house, such as insulation and air sealing.

Appendix 6G - Proposed Programs Non-Coincidental Peak Savings for Plan B (kW) (System Level)

Note: Values reflective of free-ridership.

Appendix 6H - Proposed Programs Coincidental Peak Savings for Plan B (kW) (System Level)

Non-Resldemlal Midstream EE Products 1.550 12.179 14.331 Non-Restoerrtial New Construction Residential EE Kits 2.6S3 4.019 Residential Home Retrofit Residential Manufactured Housing 4.912 4.9651 -5,209 _5^54 5,298 Multfarnffy Program 25.407 25.615 HB 2769 HVAC Component Residential New Construction 5,384 Non-Residential Smal Business improvement Enhanced 16,429 16.790 Residential Electric Vehicle EE/DR Residential Ebctrte Vehicte Peak Shaving ITotal 9,643 50,966 106,238 804 107,251 108,228 836 111,008 858 113,623 Note: Values reflective of free-ridership.

Appendix 61 - Proposed Programs Energy Savings for Plan B (MWh) (System Level)

Non-Residenttal Mtistream EE Products 18,522 20,322 502 21,605 MofvResidemlai Nov Construction 25.273 25,465 Residential EE Kcs AS39 42.870 43,295 43.710 45,655 Residential Home Retroft _

ResldenUal Mamrtactufed Housing 12.932 20.S10 20,694 20,874 Mutifamiv Propfam 76.035 76.796 78352 78.955 79,643 80,980 61.633 HB 2789 HVAC Component 13,362 19,362 19,362 19362 Residential New Construction 35,945 36,316 38,677 Non-ResMentlal Smal Business Improvement Enhanced 52.988 53,411 54,236 55.431 Residential Electric Vehba EEPR 2,623 2.679 2.706 -2,732 -2,757 Residential Etectrie Vehide Peak Shaving 2,830

-2,354, Total 27,626 283,143 313,979 319.838 322.6251 -3^3501 330,629 335.711 338,197 Note: Values reflective of free-ridership.

Appendix 6J - Proposed Programs Penetrations for Plan B (System Level)

Rftsttmrtial Home Retrofit 12,212 12,317 12.421 12.522 Resttanttal Manufactursd Housing Muarfamtty Program HB 2789 HVAC Component Reridantial New Constmdion a.eoo

-13.664 26.400 73799 75.311 26,400 76,033

^00 78,101 26,400 26,400 26.447 N&n-Residenlial Smal Bmhw Improvement Enhanced 2.025 2.700 3.375 3,492 3.S1Q 3.646 3,573 3.599 3,651 Rwidentfal Ebctrlc Vertete EE/DR -3^-5 RMttantial Etoctric VeMcto Peak Shav^to 626 _657 Note: Values reflective of free-ridership.

.mull 335.107 337.744 349,3361

Appendix 6K - Future Undesignated EE Coincidental Peak Savings for Plan B (kW) (System Level)

Appendix 6L - Future Undesignated EE Energy Savings for Plan B (MWh) (System Level)

Appendix 6M - Rejected DSM Programs IVogram Non-Residential HVAC Tune-Up Program___________

Energy Management System Program_______________

ENERGY STAR New Homes Program____________

Geothermal Heat Pump Program___________________

Home Energy Comparison Program________________

Home Performance with ENERGY STAR Program In-Home Energy Display Program_________________

Premium Efficiency Motors Program_______________

Residential Refrigerator Tum-In Program____________

Residential Solar Water Heating Program____________

Residential Water Heater Cycling Program___________

Residential Comprehensive Energy Audit Program Residential Radiant Barrier Program________________

Residential Lighting (Phase H) Program_____________

Non-Residential Refrigeration Program______________

Cool Roof Program_____________________________

Non-Residential Data Centers Program______________

Non-Residential Curtailable Service________________

Non-Residential Custom Incentive Enhanced Air Conditioner Direct Load Control Program Residential Programmable Thermostat Program_______

Residential Controllable Thermostat Program_________

Residential Retail LED Lighting Program (VA)_______

Residential New Homes Program__________________

Voltage Conservation____________________________

Residential Home Energy Assessment Non-Residential Re-commissioning Program_________

Non-Residential Compressed Air System Program Non-Residential Strategic Energy Management_______

Non-Residential Agricultural EE___________________

Non-Residential Telecommunication Optunization____

© m

National Comparison Analyses Virginia Electric and Power Company DNV GL Energy Insights U.S.A.

DNV-GL Section 1: Fuel Source for Generation The generation mix of a state can be a significant determinant of its electricity cost. Figures 1 and 2 compare Virginia's generation mix with the rest of the country. Virginia's primary source of electricity generation is natural gas, followed by nuclear. This mix is most similar to that of Louisiana and New Jersey.

Connecticut, Mississippi, and Rhode Island also have energy generation mixes that may be comparable to Virginia.

DNV GL Energy Insights U.S.A. 1

F ig u r e 1 : E le c tr ic ity g e n e r a t io n m ix , a s f r a c t io n o f t o t a l DNV GL Energy Fraction Total State Generation o

b o

I In sig h ts U.S.A.

Delaware -

Rhode Island -

Mississippi -

Florida-Massachusetts-Nevada-Louisiana-Vlrginia- [

New Jersey -

Oklahoma -

Alaska -

Connecticut-Texas-Georgla-Ohio-Pennsylvania-Arizona -

Alabama-California -

New York-Maryland-Oregon-New Mexico -

Wisconsin-Arkansas -

North Carolina -

Indiana -

Colorado -

Michigan-South Carolina -

Utah-Idaho -

Kentucky -

New Hampshire-Tennessee-Minnesota -

Maine -

Washington-lowa-South Dakota -

Missouri-Kansas -

Montana -

Wyoming -

Vermont -

District Of Columbia -

Hawaii-cn o

c I I 8 Z

ffl tn Cl

<f3 r

m

© w

DNV Figure 2: Map of the primary generation fuel source in each state DNV GL Energy Insights U.S.A.

DNV-GL Section 2: Other Metrics Variation in electricity bills between states depends in part on the prevalence of electric heating and cooling equipment, cooling and heating loads, and housing size.

Space heating represents a large proportion of many consumers' total energy use. The use of electricity for heating varies widely across regions. Among electrically heated homes, some types of equipment are more efficient than others. Table 1 shows the percentage of different fuels used for home heating in ten Census divisions. Virginia is part of the South Atlantic division that includes Delaware, Maryland, West Virginia, North Carolina, South Carolina, Georgia, Florida, and the District of Columbia. Table 12 shows the mix of different heating equipment by Census division. Table 3 shows the mix of different electric heating equipment by Census division. The South Atlantic division has a large fraction of homes heated by electricity compared to the more northern parts of the country. Of those South Atlantic customers who use electric heat, most use either electric central warm-air furnaces or electric heat pumps. The South Atlantic division also has a larger fraction of homes without heating equipment, as compared to the other regions. Relatively fewer customers in the South Atlantic use central warm-air furnaces for heat, and relatively more use heat pumps when compared to other areas.1 Table 1: Space heating equipment by fuel source by Census division East West East West New Middle South Mountain Mountain North North South South England Atlantic Atlantic North South Central Central Central Central Natural gas 37.5% 60.4% 72.9% 66.3% 27.2% 27.8% 37.7% 78.6% 46.5%

Electricity 8.9% 14.9% 19.9% 21.7% 55.7% 62.5% 52.9% 14.3% 37.2%

Fuel 39.3% 16.9% N/A N/A 3.4% N/A N/A N/A N/A N/A oil/kerosene Propane 7.1% 2.6% 5.0% 8.4% 3.4% 6.9% 3.6% 2.4% N/A 2. 2 %

Wood 7.1% 3.9% 1.7% 3.6% 2.1% N/A 1.4% N/A N/A 3.9%

Some other N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A fuel3 Do not use heating N/A N/A N/A N/A 8.1% N/A 3.6% N/A 4.7% 14.5%

equipment 1 https://www.eia.QOV/consumDtion/residential/data/2015/. tables HC6.7 and HC6.8 DNV GL Energy Insights U.S.A. 4

DNV-GL p Table 1: Saturation of heating equipment types by Census division East West East West Moun- m New Middle South North North South South tain England Atlantic Atlantic Central Central Central Central North Central warm-air 57.1% 48.7% 77.3% 73.5% 46.8% 51.4% 68.1% 78.6% 58.1% 51.4%

furnace Heat pump N/A 4.5% 3.9% 4.8% 26.4% 26.4% 9.4% N/A 18.6% 7.3%

Steam or hot 23.2% 29.2% 6.1% 8.4% 3.0% N/A N/A 7.1% N/A 1.7%

water system Built-in N/A 7.8% 8.8% 6.0% 8.5% 8.3% 6.5% N/A 4.7% 10.1%

electric units Built-in oil or gas room 5.4% 3.2% N/A N/A 1.3% 5.6% 2.9% N/A N/A 4.5%

heater Portable electric N/A N/A N/A N/A 3.0% 5.6% 5.8% N/A N/A 3.4%

heaters Heating stove 5.4% 2.6% 1.1% 3.6% 1.7% N/A N/A N/A N/A 2.8%

burning wood Built-in pipeless N/A N/A N/A N/A N/A N/A N/A N/A N/A 2.2%

furnace Fireplace N/A N/A N/A N/A N/A N/A N/A N/A N/A 1.1%

Some other N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A equipment Do not use heating N/A N/A N/A N/A 8.1% N/A 3.6% N/A 4.7% 14.5%

equipment DNV GL Energy Insights U.S.A. 5

DNV-GL Table 2: Electric heating equipment mix East West East West Moun-New Middle South North North South South England Atlantic Atlantic Central Central Central Central Fraction of Homes Heated by 8.9% 14.9% 19.9% 21.7% 55.7% 62.5% 52.9% 14.3% 37.2% 31.3%

Electricity Central warm-N/A 13.0% 33.3% 44.4% 35.9% 40.0% 60.3% 50.0% 37.5% 33.9%

air furnace Heat pump N/A 26.1% 16.7% 16.7% 42.7% 37.8% 15.1% N/A 43.8% 21.4%

Built-in N/A 52.2% 44.4% 27.8% 15.3% 13.3% 12.3% N/A 12.5% 32.1%

electric units Portable electric N/A N/A N/A N/A 5.3% 8.9% 11.0% N/A N/A 10.7%

heaters Some other N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A equipment Climate is also a key driver of customers' electricity bills. Heating degree days ("HDD") and cooling degree days ("CDD") are often used as proxies for cooling and heating load. It also measures how much the daily temperature diverges from a base temperature (below 65° Fahrenheit for heating and above the 65° Fahrenheit for cooling). Virginia's annual cooling and heating degree days in 2019 were near the US average. In 2019, Virginia had 1,401 CDD compared to the national average of 1,453 CDD and 3,998 HDD compared to the national average of 4,377 HDD.2 However, the number of HDD and CDD vary widely across US regions. See Figures 3 and 4. We added Virginia's 2018 CDD and HDD to the maps for comparison.

2 NNDC Climate Data Online, National Climatic Data Center, U.S. Department of Commerce.

httos://www7.ncdc.noaa.oov/CDO/CDODivisionalSelect.isp DNV GL Energy Insights U.S.A. 6

Figure 3: Cooling degree days by Census division in 2018 DNV-GL West Midwest Northeast

\rt New England 666

^ .

\&9S r

m Virginia 1.402 th ntic 3

12,862 South Note: Population-weighted degree days. Pacific division includes Alaska and Hawaii.

013/ Source: U.S. Energy Information Administration, Monthly Energy Review, Table 1.10, December 2019 DNV GL Energy Insights U.S.A. 7

Figure 4: Heating degree days by Census division in 2018 DNV-GL West Midwest Northeast I Pacific 13,168 West North I Mountain Central East North Central 6,434 Middle ^

Atlantic^ ^ fn9'lnd Mlantic^A ViA; 5,780^1 ~6'322 5,780 m

ca J

ro. .*m Vi 3 r

e>>%'

Virginia KY VA

^J 4,319 South Atlantic 12,630 l East South Central 3,484

^ 12,248 South Note: Population-weighted degree days. Pacific division includes Alaska and Hawaii.

013,' Source: U.S. Energy Information Administration, Monthly Energy Review, Table 1.9, December 2019

('httDs://wwvv.eia.20v/enerevexplained/units-and-calculators/dearee-davs.Dhp')

DNV GL Energy Insights U.S.A. 8

DNV-GL Housing size also affects electricity bills - larger houses require more energy to cool, heat, light, etc. Table 4 shows how housing average square footage varies across the U.S. The South Atlantic division's average home size falls generally in the middle of other Census divisions.

The South Atlantic heats fewer square feet/house and cools more square feet/house in comparison to most other parts of the country.3 Table 4: Average home size Average Square Footage per Housing Unit Total Heated Cooled All homes 2,008 1,754 1,375 New England 2,186 1,861 783 Middle Atlantic 2,055 1,765 1,100 East North Central 2,250 2,051 1,563 West North Central 2,338 2,024 1,758 S,outhAtte<<*ic 1,999 1,669 1,615 East South Central 1,870 1,625 1,393 West South Central 1,873 1,725 1,592 Mountain North 2,171 2,037 1,294 Mountain South 1,844 1,755 1,427 Pacific 1,689 1,405 947 3 EIA, https://www.eia.qov/consumption/residential/data/2015/#sauarefootaae. Table HC10.9 DNV GL Energy Insights U.S.A. 9

Appendix 7A - List of Transmission Lines Under Construction Line Line Tcnuinnls Voltage Location

<kV)

Sandlot 230 kV Delivery - DEV 230 Mar-20 VA Freedom Substation (Redundant 69 kV Facility 69 Mar-20 VA Fork Union Substation - New Substation 115; 230 Apr-20 VA Line #548 Valley Switching Station Fixed Series Capacitors replacement 500 Apr-20 VA Line #547 Lexington Substation Fixed Series Capacitors Replacement 500 Apr-20 VA Line #211 and #228 Chesterfield to Hopewell Partial Rebuild 230 May-20 VA Line #2 i 7 Chesterfield-Lakeside Rebuild 230 May-20 VA Line #86 Partial Rebuild Project 115 May-20 VA Line #2199 Remington to Gordonsville-New 230 kV Line 230 May-20 VA Skippers - New 115 kV Switching Station 115 kV May-20 VA Gordonsville Transformer #3 Replacement 230/115 May-20 VA Idylwood - Convert Straight Bus to Breaker-and-a-Half 230 May-20 VA Line #549 Dooms to Valley Rebuild 500 Jun-20 VA Line #76 and #79 Yorktown to Peninsula Rebuild 115 Oct-20 VA Columbia Tap- CVEC 115 Oct-20 VA Dawsons Crossroads - Delivery Point (HEMC) 115 Nov-20 NC Clarksville Tap Line 193 Rebuild 115 Dec-20 VA Winters Branch - New Substation 230 Dec-20 VA Line #154 Twittys Creek to Pamplin Rebuild 115 Dec-20 VA Line #112 Fudge Hollow to Low Moor Rebuild 138 Dec-20 VA Line #231 Landstown to Thrasher Rebuild 230 Dec-20 VA Line #101 Mackeys to Crewswell Rebuild 115 Dec-20 NC Buttermilk 230 kV Delivery 230 Dec-20 VA Perimeter 230 kV DP -NOVEC 230 Dec-20 VA Evergreen Mills 230 kV Delivery 230 May-21 VA Clover Substation - New 500 kV STATCOM 500 May-21 VA Ladysmith 2nd 500-230 kV transformer 500/230 May-21 VA Farmwell - 230 kV Delivery 230 May-21 VA Line #274 Pleasant View to Beaumeade Rebuild 230 Jun-2i VA Line #2176 Gainesville to Haymarket and Line #2169 Haymarket to 230 Jul-21 VA Loudoun - New 230 kV Lines and New 230 kV Substation Rawlings Switching Station New 500 kV STATCOM 500 Sep-21 VA Line #65 Norris Bridge Rebuild 115 Dec-21 VA Line #49 New Road to Middleburg - Rebuild 115 Dec-21 VA Line #127 Buggs Island to Plywood Rebuild 115 Dec-21 VA Line #16 Great Bridge to Hickory and Line #74 Chesapeake Energy 115 Dec-21 VA Center to Great Bridge Partial Rebuild__________________________

Line # 120 Dozier-Thompson Comer Partial Rebuild 115 Dec-21 VA New Switching Station to Retire Line #139 Everetts to Windsor DP 115 Dec-21 NC Line #2008 Partial Rebuild and Line #156 Retirement 115; 230 Dec-21 VA Line #550 Mt. Storm to Valley Rebuild 500 Dec-21 WV-VA Mt. Storm - I/S CIS 500 May-22 WV Line #43 Staunton to Harrisonburg - Rebuild 115 Jun-22 VA Line #247 Suffolk Swamp Rebuild 230 Dec-22 VA-NC Line #2175 Idylwood to Tyson's -New 230 kV Line 230 Dec-22 VA Note: see Appendix 3D for North Carolina line capacity levels.

Appendix 8A - Integrated Distribution Planning White Paper as Filed in Case No. PUR-2019-00154 DOMINION ENERGY VIRGINIAS INTEGRATED DISTRIBUTION PLANNING WHITE PAPER

1.0 INTRODUCTION

A major trend over the last 10-plus year period in the electric power industry has been the development of renewable generation, especially photovoltaic (PV) and wind generation.

Since 2008, wind generation capacity in the U.S. has experienced a compound annual growth rate (CAGR) of approximately 19%, while PV has seen an approximately 61% CAGR. The Company expects these renewable energy growth trends to continue as customers demand more carbon free forms of energy. An important sub-trend is the growth of distributed energy resources (DERs)resources connected to the distribution system. According to the Energy Information Administration (EIA"), the growth in U.S. of clean DERs (e.g., hydroelectric, wind, PV) from 2009 through 2017 has been approximately 23%. The Company has experienced an approximately 43% DER growth rate on its system during that same timeframe, primarily in the form of PV systems. A subset of the EIA data for non-net metered PV DER experienced a CAGR of approximately 48% nationwide. This trend is expected to continue given the expected efficiency improvements and cost reductions in PV technology.

Along with this increase in distributed generation resources interconnected to the distribution system, other trends continue to develop, including the addition of high-energy electric vehicle charging, the adoption of energy storage, and a change in customer energy usage patterns driven by AMI-enabled time-varying rates. Utility planners must continue to adapt their skills, tools, and processes to integrate these new challenges into the electric energy infrastructure planning landscape. No longer is grid planning based only on load growth and the static impact during peak usage periods on the distribution grid. Now, planners must also anticipate new supply-side and demand-side resources in the form of DERs, understand the dynamic impact to the grid, and examine how DERs can provide non-traditional solutions to traditional grid challenges, such as line overloads and voltage deviations. To that end, historical distribution planning methods must change to an integrated distribution planning process.

The Company defines integrated distribution planning (IDP) as a process to address the capacity, reliability, and DER integration needs of the distribution grid using traditional solutions as well as new solutions offered by customer-owned DER and other non-traditional technologies. IDP also accounts for uncertainties introduced by the dynamic nature of variables impacting grid operation, shifting results and associated decisions from deterministic to probabilistic outcomes. True IDP requires changes in planners skills, technologies and tools used, and processes. Throughout, trained professionals are vital to fully leverage the technologies and optimize the processes and emerging tool sets. Technologies and communications systems that provide visibility into the distribution grid to the customer premises level are foundational to enabling integrated distribution planning. Processes and tools must then be developed to incorporate the data gathered, including advanced distribution modeling and analysis tools that consider a range of possible futures where varying levels of DER and emerging technologies are adopted on different parts of the distribution system.

This white paper provides an overview of the Company's current planning process, highlights the limitations of the current process, and sets forth the initial steps the Company plans to take to transition toward integrated distribution planning.

2.0 CURRENT DISTRIBUTION PLANNING The Companys current distribution planning occurs through three distinct processes:

(i) distribution capacity planning; (ii) distribution reliability planning; and (iii) DER interconnection. Together, these efforts result in a plan designed to address customer needs to ensure safe, reliable, and cost-effective electric service using traditional utility solutions.

2.1 Current Distribution Capacity Planning 2.1.a Overview of the Current Capacity Planning Process The purpose of distribution capacity planning is to evaluate grid utilization during seasonal peak loading conditions based on projected load growth, identifying any necessary improvements to the distribution system needed to satisfy thermal and voltage criteria as the demands placed on the distribution infrastructure change over time. Figure 2.1 provides an overview of the current process.

Figure 2.1: Current Distribution Planning Process Modeling & ^ Alternatives Inputs Outputs A Analysis a Evaluation

Historical seasonal peak loads

Static analysis for peak loading

Traditional mitigation

Historical and projected growth

Manual feeder-by-feeder analysis alternatives: equipment

Interval data at T to 0 transition point only

Only steady state system analysis upgrades/additions CAPACITY PLANNING

Utility scale DER contribution removed performed

Solutions optimized for Multi-year Work Plan

No visibility of net metering DER

DER not included in model cost / load growth and Steady state load and voltage criteria

Loading allocated based on system impact modeling assumptions 2.1.b Current Distribution Load Growth Forecasting The historical distribution capacity planning process centers around assessing current and anticipated constraints on the distribution grid associated with forecasted seasonal peak load conditions. Therefore, the Company annually develops a six-year summer and winter peak load forecast (for the next 5 years and for the 10th year into the future) for each of the approximately 1,800 feeders currently on the Companys system. These forecasts are assembled based on historical data measured at the feeder head (/.e., the point of demarcation between the transmission and distribution systems) and information acquired through discussions with (and formal requests from) current and future customers. Examples of the information used to develop the forecast are historical load growth trends, planned new housing developments, new high-rise buildings, information regarding data center expansions or additions and commercial and industrial development. This information is then used by the Companys distribution planners to update feeder-level load growth projections. Generally, load growth forecasting is not location specific beyond information regarding block load additions that are known in the short term (e.g., a new big box retail store under construction). Of note, there are no inputs related to customer-level usage patterns or DER and emerging technology penetration growth included in this current forecasting process. Traditional static capacity planning focuses on the systems summer and winter peak conditions, studying the traditional worst case scenarios.

Based on this focus, the current load growth forecasting utilizes only peak customer demand and removes DER to ensure the grid will remain reliable under these conditions.

K3 2.1.c Current Distribution Capacity Planning

evaluates the adequacies of each of the Companys distribution feeders under the forecasted Ui annual summer and winter peak load conditions over the planning period. The primary measurable input to this is currently limited to data collected at the feeder head. This evaluation is performed under normal operations and first contingency (N-1) conditions. Normal operations are defined as seasonal peak load conditions under normal distribution system configuration.

First contingency (N-1) conditions are defined as situations that simulate the loss of a single distribution substation transformer during seasonal peak loading conditions.

Under both normal and first contingency conditions, distribution planners use computer modeling tools to identify if and when violations of capacity planning criteria are projected to occur on a particular feeder, feeder component or distribution substation transformer. Using feeder head data, the model approximates the expected loading along a feeder and all of its components based on engineering assumptions. The typical engineering limitations examined are conductor, transformer or equipment thermal limits (ampacity), and high or low voltage.

Once the timing and type of violations are determined on any given feeder component or substation transformer, the next step is to identify what grid mitigation solutions are necessary to correct the violation. Mitigation solutions may include re-configuration of the feeder, the addition or replacement of equipment (e.g., capacitors, transformers, protection devices),

replacing conductor with larger conductor (/'.e., reconductoring), or adding an entirely new substation or feeder. These all are considered traditional solutions.

2.2 Current Distribution Reliability Planning 2.2.a Overview of the Current Reliability Planning Process The purpose of reliability planning is to identify causes of service interruptions and risks to the grid, and to develop cost-effective and prudent solutions to improve overall grid performance and customer experience. Figure 2.2 provides an overview of the current process.

Figure 2.2: Current Distribution Reliability Planning Modeling & Alternatives Inputs Outputs Analysis Evaluation

Historical performance data focused on blue

Root cause analysis

Traditional mitigation sky days

Manual feeder-by-feeder analysis alternatives RELIABILITY

Multiple levels of analysis

Specific asset health testing and

Solutions optimized for PLANNING Annual Work Plan o System metres assessment cost reliability and risk o Feeder level Manual mitigation modeling to o Responsive to specific customers predict improvement 2.2.b Current Distribution Reliability Planning Reliability planning is based on data analytics of service outage information. The Company maintains a historical database of service outages that includes the when, where, and why associated with each service outage generated by the Companys outage management system (OMS). This data is analyzed to identify areas of the distribution system that have exhibited reliability performance issues, including root causes. For repeat outages on the same feeder or

y?

feeder section, the Company evaluates the cause to determine if there is a pattern to these outages. Depending on this pattern, the Company can devise mitigation measures to improve ©

outages in a specific area, the Company can mitigate future outages through the use of US additional surge arresters for lightning protection, or investigate if grounding is within its operating specifications and physically improve the grounding system if it does not meet the operating specification. Another example of mitigation measures is to recondition poorly performing feeders by repairing defects and restoring the feeder to current construction standards.

This data examination process is conducted by the Company on a continual basis. The findings are gathered and used to support reliability improvement investment decisions.

2.3 DER Generation Interconnection Process The Company's DER generation interconnection process requires the customer to request to export energy directly onto the distribution grid. Which interconnection process DER customers must follow depends upon (i) whether the DER customer opts to sell its output wholesale to PJM Interconnection, LLC (PJM) or to the Company; and (ii) whether the DER customer elects to interconnect directly to distribution infrastructure as a small electrical generator or behind the customers meter via net energy metering.

DER requests involving wholesale market participation requests are submitted to PJM. PJM administers the processing of the interconnection requests to its queue and coordinates the interconnection study process, as applicable, with the Company. The Company administers all other generator interconnection requests under the appropriate state jurisdictional procedures.

2.3.a Small Electrical Generator Interconnection Process The interconnection process for small electric generators is administered in accordance with the Commissions Regulations Governing Interconnection of Small Electrical Generators, 20 VAC 5-314-10 et seq. The Commission initiated a rulemaking proceeding in September 2018 to possibly revise these regulations, Case No. PUR-2018-00107. The proceeding remains pending. A high level view of this current interconnect process is provided in Figure 2.3.a.

Figure 2.3.a: Overview of DER Small Electrical Generator Interconnection Process Modeling & Alternatives inputs Outputs Analysis Evaluation

Customer initialed requests

Static analysis for specific loading

Traditional mitigation INTER

Mandated queue procedures and DER output scenarios alternatives: equipment Interconnection CONNECTION PLANNING

Location specific load and grid data

Manual analysis for interaction upgrades/additions Agreement Execution

Customer equipment specifications with other DER The Company must study the interconnection of all generation that operates in parallel with the electric grid to identify if grid modifications are needed to accommodate the proposed interconnection while maintaining safe and reliable operation of the grid for all customers.

Under the governing standards, the interconnection customer submitting the request is responsible for the costs to study the impact of the DER on the distribution system and for the costs to modify the grid to accommodate the proposed generation.

E £ i) TES i) d E The Companys technical study process for utility-scale solar systems ensures that the output of the renewable generator does not result in thermal overload conditions or voltage deviations outside of an acceptable bandwidth on any feeder component or substation transformer to which the PV generator interconnects. The fault current contribution of the generator is also analyzed for its potential impact to the grid. The study is a static analysis based on the ability of the PV system to operate at full-rated output during daylight hours, with secondary consideration of inverter-based DERs to provide grid support for this injection or absorption of reactive power. Based on current grid visibility and control limitations, the Company has asked a small percentage of the generators to apply a fixed power factor setting, other than unity, for voltage support as a secondary measure.

DER interconnection requests have grown significantly over the past several years. Currently there are 28 utility-scale solar generation sites totaling 275 MW interconnected to the Companys electric distribution system in Virginia. As of August 1, 2019, there are 22 interconnection requests totaling 225 MW with executed interconnection agreements that are in the construction process, and 114 requests totaling 1,584 MW that are at some level of evaluation under the state jurisdictional procedures.

2.3.b Net Energy Metering Interconnection Process If a renewable DER is proposing to offset a portion of a customers own load, the customer may be eligible to apply for net energy metering. Net metering is administered in accordance with the Commissions Regulations Governing Net Energy Metering, 20 VAC 5-315-10 et seq. The Commission initiated a proceeding in August 2019 to amend these regulations consistent with new legislation, Case No. PUR-2019-00119. The proceeding remains pending.

The technical study process for net energy metering is currently a more simplified approach than the process for small electrical generators given the much smaller DER system size. The simplified approach ensures that the interconnecting system does not create an adverse thermal or voltage issue. Any necessary system upgrades (if any) are included in the Companys current base rate structure.

The Company has seen a dramatic growth rate in net metering interconnections, with a clear trend showing concentrated growth in certain geographic areas. Figures 2.3.b.1 and 2.3.b.2 show the total number of net metering customers for the top 10 office locations, as well as the growth in net metering by office since January 1, 2018.

Figure 2.3.b.1: Local Office Totals Office Name Oust MW Chalottesville 835 8.9 8.9 Alexandria 642 4.7 I 4.7 Blue Ridge 385 4.4 4.4 Richmond 352 3.1 3.1 Leesburg 269 2.7 2.7 Fairfax 324 2.3 2.3 Norfolk 100 Z1 I 2.1 Midlothian 201 2.1 I 2.1 East Richmond 258 2.0 2.0 Springfield 284 1.8 1.8 All Others 2,427 20.0 Total 6,077 53.9 Figure 2.3.b.2: Local Office Growth Since January 1, 2018 Office Name Cost MW Chalottesville 407 4.1 4.1 Blue Ridge 196 2.6 2.6 Alexandria 282 2.0 2.0 Norfolk 60 1.7 1.7 Midlothian 131 1.4 I 1.4 Fairfax 184 1.4 I 1.4 Springfield 194 1.3 I 1.3 Richmond 161 1.3 1.3 Gloucester 66 I.3 1.3 Peninsula 190 1.2 1.2 All Others 1,480 II.9 Total 3,351 30.5 3.0 LIMITATIONS OF CURRENT PLANNING PROCESS Current distribution planning methodologies and processes have been in place for decades and were designed to identify the most cost-effective means of maintaining a safe and reliable distribution grid. These practices have been effective in a world of centralized large-scale generation and one-way power flows. In that light, modeling and analyzing distribution grid limitations for discrete conditions (seasonal peak conditions) have worked effectively as a manual process. In the new paradigm of increasing DERs and other emerging end-use technologies creating a more dynamic distribution grid with bi-directional and constantly changing power flows, awareness of temporal and spatial growth and operating characteristics are necessary. Modeling the distribution grid under this necessity can no longer be done using traditional techniques. Future modeling and analysis requires the development of advanced and automated tools that are capable of using significantly more granular data and providing outputs on a much broader time scale of probabilistic distribution grid limitations. Limitations of grid visibility beyond the feeder head present uncertainty in determining non-peak characteristics of how the grid is functioning. Additionally, the ability to confidently leverage non-wires alternatives as a prudent alternative to traditional grid solutions requires a level of situational awareness, communications infrastructure, and control capabilities that do not currently exist on the Companys distribution grid.

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The historical process of determining distribution system need only during forecasted seasonal peak conditions, with grid visibility limited primarily to the feeder head, is approaching @

obsolescence. Under the current distribution capacity planning process, anticipated growth in DERs and emerging technology are not able to be addressed. Further, the current process ^

does not assess multiple potential scenarios of adoption rates of DER and emerging technologies. Changing distribution grid load flows along with temporal and spatial growth patterns and operating characteristics at times other than peak hours are, and will continue, to change the dynamics (i.e., the load shape) of the distribution grid moving forward. Limitations of grid visibility beyond the feeder head present uncertainty in determining non-peak characteristics of how the grid is functioning.

4.0 FUTURE INTEGRATED DISTRIBUTION PLANNING PROCESS The Company plans to implement an integrated distribution planning (IDP") process that will evolve the current planning processes to adapt to the increasing proliferation of customer-owned DERs and other changes relevant to the modern grid. True IDP will require changes to peoples skills, the technologies and tools they use, and processes for performing planning activities. The sections below describe the enhancements the Company plans to make within each of these categories. Figure 4.0 provides a chart showing the evolution of integrated distribution planning overtime as enabling technologies are deployed.

Figure 4.0: IDP Evolution Distribution Planning Maturity Level As 6T Plan capabilities are delivered, DEV's ability to execute integrated and dynamic distribution planning increases dramatically Q) N

<Q m

c Advanced Distribution Msnafement System ' Ongoing (AOMS) < Incremental

' Improvement Hosting Capacity I

5 T3 C Advanced Analytics Scenario based forecasting (Q Time series grid analysis

Highly automated Time series hosting capacity analysis capability

<<- Intelligent Grid Devi Gaining situational Expanded NWA analysis and

Locational net

-D awareness at device level Inclusion benefits inclusion (0

Q. Increasing premises-level Incremental automated

Aggregated DER Customer Informatic interval data availability analysis capability transaction & market Platform Static hosting capacity J2 a.

Static grid analysis

Expansion of Customer operation Growing data enablement programs and enhanced AMI/Smart Mete granularity ; usage / load data Maturity of Integrated Distribution Planning 4.1 People As an initial step towards integrated distribution planning, the Company is centralizing the modeling and analysis activities for capacity planning, reliability planning, and DER interconnection as an integrated functional organization. The Company will continue to evaluate its organizational structure as integrated distribution planning matures in support of the

enhancements described below.

4.2 Technologies IDP is highly dependent on having highly granular and spatial visibility of existing grid conditions. The Company has a plan to transform its distribution grid (the Grid Transformation Plan or GT Plan) to adapt to the fundamental changes to the energy industry described above and to meet its customers needs and expectations. Many of these proposed investments are foundational to IDP, including investments in advanced metering infrastructure (AMI); a self-healing grid, including intelligent grid device and an advanced distribution management system (ADMS) with system capabilities for distributed energy resources management (DERMS);

and Advanced Analytics. Advanced Analytics can suitably model the behavior of the entire distribution network including the renewable resources. These applications can analyze weather patterns along with past generation profiles and forecast the generation that will be available from the DER. Advanced Analytics will highlight opportunities for non-wires alternatives to be evaluated. Also vital are secure communications between the field devices and the back office systems. The Companys executive summary of the Grid Transformation Plan (the Plan Document) provides additional information on these proposed investments.

4.3 Processes and Tools IDP requires advanced distribution modeling and analysis capabilities that consider a range of possible futures where varying levels of DER and emerging technologies are adopted on the distribution system. The distribution grid needs to be analyzed at a wide range of load conditions, rather than at just peak load periods. The ability to successfully perform time series modeling analysis (TSA) of the distribution grid is heavily reliant on a highly granular visibility of existing load and DER characteristics. Finally, given the uncertainty associated with the size and location of DER growth, probabilistic or stochastic analytical techniques will be required to evaluate the robustness of the distribution grid from the feeder head to the feeder edge.

The Company plans to implement the following process-related enhancements to its distribution planning process to move toward IDP. These enhancements are illustrated in Figure 4.3 and discussed in more detail below.

Figure 4.3: Enhanced Distribution Planning Process Inputs

Feeder bad forecast scenarios (time series)

Retance on engineering models based on

Traditional Grid Solutions 10 Year Distribution OER&emergiig lech growth forecast scenaios a high level of data granularity

DER & DSM Opportunities Forecast and

Additional ptanrang irputs: (hosting capacity, AMIS IGD *Automated generation of lime series

Grid Transformation Investment Roadmap load and voltage data, al DER output data, feeder analysts and hofetic solutions Projects Integrated characteristics (EAM data), performance metrics, efc.

Inclusion of NorvWire Allemalives

Opftnizafion of allematives Distribution

Engineering model burid aid framework for scenario (Storage, Advanced Inverter Functionality, over time Transmission and Planning based anatysis DSM.elc.) Generation System Network assessment (Static and Time Series Analysts)

Inclusion oftocational value of resources Planning Impacts

Reiabily assessment

Planning criteria

VI 4.3.a Process Enhancement 1 - Comprehensive Feeder Level Forecasting H*

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<0 Utility-scale, commercial, and residential net metering-scale sites will be forecasted annually.

Unlike conventional demand forecasting methods, however, these forecasts will be more granular in that they will be developed down to the customer site whenever possible and will cover all hours in a year rather than just peak demand hours. The Company initially plans to develop these forecasts utilizing data obtained from its customers currently served with AMI meters and/or intelligent grid device data, where available. Until full deployment of AMI has been achieved, the Company will develop hourly demand assumptions for its monthly-metered customers using relationships obtained from historic AMI hourly load shapes and monthly customer billing records. Comprehensive feeder level forecasts will allow the Company to simulate power flow scenarios within a planning period. This ability is critically important as the Company expects more active management of grid stability to be necessary during low demand conditions that are coupled with high DER output.

For example, during the month of April, a residential customers electricity demand at any hour is typically low (less than 5 kW). If that same customer has a solar PV system rated at 10 kW installed at their premise, it is quite likely that for many hours during April, the supply from that customers premise will exceed their demand and that excess power will flow onto the distribution grid. This situation could cause a localized increase in distribution voltage levels that exceed rated standards. This voltage violation could result in damage to the Companys equipment or damage to appliances of other customers that are on the same feeder. As DERs continue to grow on the Companys system, phenomena such as this can spread to all areas of the distribution feeders and even onto the transmission grid. This undesirable phenomenon is not related to overall system DER penetration but rather is specific to locational concentrations of DER penetration. The magnitude of the challenge grows as this scenario occurs at grid locations with limited host capacity available.

4.3.b Process Enhancement 2 - Hosting Capacity Analysis The Company will also study the DER hosting capacity on every distribution feeder in order to determine the strength of the distribution system during varying degrees of DER penetration and solar irradiance levels for every hour of the day. This analysis when overlaid with the Companys DER forecast can determine the year when a specific feeder becomes at risk for exceeding feeder design specifications (both thermal and voltage parameters), and will enable the use of active power management of DER as an alternative to traditional grid upgrades. The forecasts described above will be updated annually and will form the base or expected cases for subsequent distribution analysis and planning activities. Until such time as a proper stochastic algorithm can be developed, the Company will also prepare annually, high and low DER growth forecasts for each feeder to support the scenario analysis described below. This transition requires highly manual analysis until such time as automated analytical systems are developed and validated.

If the GT Plan investments are approved by the Commission, the Company plans to publish initial hosting capacity maps for both utility-scale and net metering DER by the end of 2020. As additional grid technologies and smart meters are deployed and grid operation capabilities increase, the hosting capacity maps will become more dynamic and support opportunities to reduce interconnection costs when DER output can be informed and adjusted to avoid grid

limitations through a DERMS.

4.3.c Process Enhancement 3 - Multi-Hour Capacity Planning Analysis ^

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Consistent with conventional distribution capacity planning analysis, each feeder will be assessed under seasonal peak demand periods using the forecast for demand and DER growth described above. Also, like current state, the analysis will evaluate the distribution grid for violations with respect to loading and voltage. Beyond current state, the distribution grid will also be examined at conditions other than peak demand periods. At a minimum, the Company will evaluate the distribution grid under peak demand and minimum demand conditions for each month of the planning period. The frequency and the study time window of these studies will increase as advanced modeling techniques are refined. As discussed further below, the Company is investigating, with industry peers and research entities, the development of the necessary engineering tools and systems that can perform this analysis on a time series (i.e.,

8760) basis so that, when appropriate, each hour of the planning period can be examined in an automated fashion. This will ensure the Company examines all load and generation conditions associated with the base forecast for demand and DER growth. These new tools and systems will result in a more thorough analysis of each feeder under various load and generation conditions that is more representative of two-way power flows caused by DERs. Notably, specific GT Plan investments in intelligent grid devices and smart meters that gather this highly granular data are necessary to support robust analyses with greatly reduced uncertainty.

4.3.d Process Enhancement 4 - DER Scenario Analysis The key uncertainties associated with future DER growth is with respect to rate of growth and location. As such, the enhanced distribution planning analysis will also include scenario analysis that utilizes the high and low DER growth forecasts identified above. Again, the Company will analyze each feeder for violations with respect to loading and voltage under monthly peak and low demand conditions using both the high and low DER growth rate forecasts.

4.3.e Process Enhancement 5 - Non-Wires Alternatives Analysis In addition to traditional distribution grid solution approaches such as re-conductoring or equipment upgrades, the Company will also assess non-wires alternatives to address violations that may surface in the distribution grid analysis process. New mitigation options such as utilizing customer-owned advanced inverter capabilities, battery energy storage systems, micro grids, or demand response will be evaluated along with traditional solutions to assure that the optimal solutions for the Company and customers are prudently implemented.

5.0 PROOF OF CONCEPT ANALYSIS AND RESULTS The ultimate objective of the Companys I DP process is to develop a prudent distribution investments roadmap based on load growth, reliability needs, DER growth, new technology adoptions, and other changes on the distribution system over the planning horizon. To that end, the Company engaged DNV GL Digital Solutions (DNV GL) to develop a proof of concept.

The DNV GL analysis focused on the process enhancements described above, namely multi hour capacity planning analysis, DER scenario analysis, and non-wires alternatives analysis.

DNV GL developed an analytical process using Synergi Electric software, which provides tools

that are capable of automating the grid analysis. DNV GL then tested the software using three demonstration feeders identified by the Company. The analytical process involved running a multi-year time series analysis (ISA), identifying times where technical violations may occur due to load growth or due to DER operation, designing appropriate mitigations and evaluating the hosting capacity of the system for different capacities of DER.

The Company intends to continue to work with DNV GL as the Company implements the process enhancements described above. Notably, the DNV GL process integrates the Companys current capacity planning and DER interconnection processes, but does not incorporate the current reliability planning processes. As recognized industry-wide, incorporating the reliability planning component is the area of analysis having the greatest complexity . The Company will continue to work toward complete integration of its distribution planning process.

DNV GL produced a report providing its analyses and results. The report is Attachment 1 to this white paper.

6.0 CAPABILITIES ENABLED BY INTEGRATED DISTRIBUTION PLANNING The evolution of IDP over time will enable capabilities and benefits for the Company and customers not available today. For instance, with people, technologies, and processes described above, locational net benefits could be identified and published, an expanding portfolio of non-wires alternatives can be developed and utilized, and lower DER integration costs can result. With proper policy and regulatory support, IDP also enables aggregated DER transactions.

7.0 GENERATION, TRANSMISSION, AND DISTRIBUTION INTEGRATION ASSESSMENT Currently, power system analysis is performed separately for generation, transmission and distribution systems. With higher overall system penetration levels of DERs expected, the one way flow of the Companys distribution system is being significantly altered and will impact the generation, transmission, and distribution systems. Therefore, the Company (along with the electric utility industry) needs to continue its development of new methods and tools to properly integrate the overall power system. For example, as DERs continue to grow within the Companys service territory and emerging technologies take hold, customer load shapes will change. This change in load shape will not only impact the distribution grid but also the transmission and generation systems as well. Power flows along the transmission system will change (and could even reverse) and traditional generators will be dispatched in a manner that may be quite different than has been done in the past in order to accommodate these new customer demands. Thus, it is important that the Company understand how customer energy use is changing and how those changes are impacting the entire electric network, from distribution, to transmission and generation.

Importantly, the shift to integrated distribution planning is a process that will take time, as illustrated in Figure 4.0. The Virginia Code now requires that the Companys total-system integrated resource plans evaluate long-term electric distribution grid planning. Va. Code

§56-599 B 10. The Company thus intends to continue to report on its progress toward IDP in future integrated resource plans. The Company plans to include IDP as part of the stakeholder processes used for the Companys GT Plans and integrated resource plans.

CERTIFICATE OF SERVICE I hereby certify that on this 1st day of May 2020, a true and accurate copy of the foregoing filed in Case No. PUR-2020-00035 was delivered by hand, email, or mail first class postage pre-paid, or was provided by electronic service, to the following:

Ashley B. Macko, Esq. C. Meade Browder, Jr., Esq.

K. Beth Glowers, Esq. C. Mitch Burton, Jr., Esq.

Office of the General Counsel Office of the Attorney General State Corporation Commission Division of Consumer Counsel Tyler Building, 1300 E. Main St., 10th Floor 202 N 9th Street, 8th Floor Richmond, Virginia 23219 Richmond, VA 23219 William C. Cleveland, Esq.

Gregory D. Buppert, Esq.

Nathaniel Benforado, Esq.

Hannah Coman, Esq.

Southern Environmental Law Center 201 W Main Street, Suite 14 Charlottesville, VA 22902-5065

/$/ Vishwa B. Link

ML21105A859

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1.0 INTRODUCTION

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