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Regarding slide 22 of the materials from IRP Conference 1, could you expand on generator offers? Are costs associated with RGGI included? What are opportunity costs?

Once in effect, costs associated with RGGI will be one component of generator energy offers. PJM also defines and governs what may be included as “opportunity costs” in generator offers. Approved opportunity costs can be used in offers to reflect the lost economic benefit a resource incurs for following PJM economic dispatch in lieu of preserving that same generation for relatively higher demand periods. Opportunity costs can reflect operational constraints or limitations—such as emissions restrictions or other operating requirements—that may affect a unit’s ability to generate or participate in the market.

Other Stakeholder Questions and Answers

• If stakeholders identify alternative data sources or inputs for commodity forecasting, is there an opportunity for those inputs to be considered by Dominion Energy or ICF as part of the IRP process?
• The example slide 17 in the materials from IRP Conference 1 shows the NPV of an individual renewable project that earns REC revenue. How would REC costs be reflected for individual projects that do not generate RECs, such as natural gas fired resources?