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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?
The Company currently utilizes a price forecast, which is a proxy for day-ahead pricing in modeling its IRP. Modeling real time price volatility is not practical for long term IRP planning given it can be influenced by many factors outside of renewable penetration such as transmission and generation outages, as well as fluctuations in renewable generation output. However, the Plexos model does incorporate some dynamic energy pricing using market price scalers, which escalate based on market purchase depth and scarcity. As a PJM member, the Company continues to monitor any changes to the PJM market and will update future IRPs accordingly.