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Why does the IRP show net present value (NPV) differently at the portfolio level, rather than applying the same net revenue approach that is used for individual project NPV analyses?

At the individual resource level, the modeling framework evaluates each resource based on its net economics—comparing its costs against the revenues it can produce. As the model selects resources to meet demand in each hour and year, it effectively performs this project specific economic comparison to determine which option is the most cost effective.

At the portfolio level, however, the analysis shifts to evaluating the full cost of serving customer needs. While individual resources may generate revenues by selling energy, capacity, or RECs into the market, customers are simultaneously purchasing those same products to meet their load and compliance requirements. As a result, those revenues are offset by corresponding customer costs.

The portfolio NPV therefore reflects the total cost stack required to meet customer demand, including energy, capacity, and compliance obligations, rather than netting revenues in the same way as a stand alone project evaluation. This approach provides a more complete view of the cost to customers of meeting their electricity needs across the full resource portfolio.

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

Other Stakeholder Questions and Answers

• Process question: if a reasonable and relevant question is asked during an allotted discussion period, will it generally be addressed during the meeting?
• If "capacity costs" are a commodity, and it is a major cost driver, how do you estimate that cost and the volume of capacity required by year?