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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?

The example shown on slide 17 is a project that generates RECs and therefore the REC revenue is reflected in the project level NPV. For an individual project that does not generate RECs, such as a natural gas fired facility, that REC revenue component would not be present.

At the individual project level, projects are not modeled as needing to procure or retire RECs on their own behalf. REC retirement is performed at the portfolio level on behalf of the overall customer load. As a result, REC costs are not reflected as a direct cost within the NPV of a non REC producing project.

REC purchase requirements and costs for compliance with RPS Program obligations are captured at the portfolio level, where the analysis accounts for the balance between RECs produced by the fleet and any additional RECs that must be acquired on behalf of customers.

This is illustrated in slides 17-18 of the materials from IRP Conference 1, held May 8, 2026.

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