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Are transmission costs considered in the portfolio NPV?

Yes. Transmission costs are included in the total portfolio NPV presented in the IRP. These costs are incorporated as an additional cost layer within the NPV calculation and reflect the net present value of transmission projects that have progressed through PJM’s Regional Transmission Expansion Planning (RTEP) process.

The portfolio NPV also includes other cost components layered into the total value, such as investments associated with the Company’s grid transformation initiatives and other system level costs. These components are not always shown individually on summary slides but are included in the overall NPV results and discussed in the IRP filing. The 2025 IRP Update included these costs in Table 5.1.1.2.

Other Stakeholder Questions and Answers

• Will you do sensitivity tests for variations of load forecasts, including the data center load forecast?
• As the Company continues to transition to more renewables, to what extent have you explored the use of real time/dynamic pricing as a way to shift customer demand in its IRP modeling and by what year would the Company begin implementing such a pricing model?