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NRG Energy — Electricity Camp in the Rockies (May 2023)

9 slides from NRG Energy's conference presentation, May 25, 2023

  1. Slide 1: Why Is the Smart Grid So Dumb?

    Why Is the Smart Grid So Dumb? Travis Kavulla Vice President of Regulatory Affairs, NRG Electricity Camp in the Rockies; Banff, AB May 25, 2023 © 2021 NRG Energy, Inc. All rights reserved. / Proprietary and Confidential Information 1

  2. Slide 2: Alberta’s electric distribution territories

    Alberta’s electric distribution territories Source: Electricity Distribution [Fact Sheet], Government of Alberta. © 2021 NRG Energy, Inc. All rights reserved. / Proprietary and Confidential Information 2

  3. Slide 3: AMI is widely deployed, but rarely used for retail pricing

    AMI is widely deployed, but rarely used for retail pricing Smart Meters Installed (%) 0 – 25% 25 – 50% 50 – 75% YUKON 75 – 100% NUNAVUT NORTHWEST TERRITORY NEWFOUNDLAND Retail Competition BRITISH ALBERTA COLUMBIA SASKATCHEWAN MANITOBA QUEBEC Prince Edward Island NEW ONTARIO BRUNSWICK NOVA SCOTIA Dev

  4. Slide 4: Direct Energy RRO and competitive offers Fort McMurray

    Direct Energy RRO and competitive offers Fort McMurray Residential RRO Shopping Site Listings, 5/8/2023 Variable Term Rate Admin Est. Bill Month Price Retailer (Months) (¢/kWh) ($/Mth) ($/Mth) May 2023 16.779 ¢ Direct Energy - 16.779 ¢ $ 14.26 $ 246.66 Apr 2023 20.134 ¢ RRO Mar 2023 13.500 ¢ ATCO En

  5. Slide 5: Price signals tell customers every kWh is the same…

    Price signals tell customers every kWh is the same… Alberta RRO could have a TOU supply price spread of 2x - 3x Winter Summer • Four 3-month pricing seasons and on-peak hours 7am-11 pm. • The supply prices shown based On-Peak on hourly 7x16 and 8x16 AESO settlement prices, Jan-18 to Apr-23. • There

  6. Slide 6: …And they don’t respond to cost peaks

    …And they don’t respond to cost peaks Alberta Monthly Pool Price Clever Suppliers, Dumb Demand 350 Number of $/MWh or Number of Hours 300 Hours > $500 250 AVG Price 200 150 100 50 0 Source: AESO. Source: Market Surveillance Administrator, Quarterly Report for Q3, 2022: Selected Findings, Nov 15, 202

  7. Slide 7: Ontario’s new, peakier TOU plan

    Ontario’s new, peakier TOU plan Ontario's TOU and Ultra-Low • Time-of-use is the default plan Overnight Rates on Weekdays for customers of a regulated 30 utility in Ontario 25 TOU: 2x 24 ULO: 10x • Beginning May 2023, utilities are 20 allowed to offer a new, peakier Cents/kWh 15.1 TOU plan called Ul

  8. Slide 8: Someone, somewhere, has to face a price signal for demand activation to happen

    Someone, somewhere, has to face a price signal for demand activation to happen Default ‘opt-out’ rate should be Time-of-Use with substantial differentials between tiers + potential critical peak pricing feature Get to manage not just energy supply costs, Retailers can be positioned to offer but all

  9. Slide 9: Travis Kavulla

    Travis Kavulla Vice President, Regulatory Affairs (406) 788-3419 [email protected] © 2021 NRG Energy, Inc. All rights reserved. / Proprietary and Confidential Information 9

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