MACRUC

1 1 MACRUC Mid- atlantic Conference of Regulatory Utilities Commissioners 23rd Annual Education Conference DRAFT AS OF Tuesday, May 8, 2018 MACRUC 23rd Annual Education Conference Sunday, June 24, 2018 This agenda is subject to change. 4:00 6:00 pm Registration Registration Desk 5:00 6:00 pm Welcome Reception Fountain Room MACRUC 23rd Annual Education Conference Monday, June 25, 2018 9:00 10:30 am General Session Welcome Remarks and Confirmation of Officers President, Hon. Judy Jagdmann, VA Hon. Mary-Anna Holden, NJ, Chair of MACRUC Nomination Committee The Big Picture: Thoughts on the Movement Towards Grid Transformation Garden Terrace Ballroom 2 Many States are actively considering whether or how to significantly upgrade their electric grids in response to technological changes, changing economics of renewables, security or hardening initiatives, electrification, and customer engagement. The concept of grid transformation comprises challenging aspects of electric services: potential implications for the generation, transmission, and distribution of electricity, as well as, costs paid by customers.

2 This session will address the types and level of grid investments that some States are reviewing to deliver maximum value. Participants will debate whether grid hardening or resilience appropriate components or drivers of such investment. Attendees will learn about approaches or processes conducive to informed decision-making. Attendees will hear about lessons learned from States already pursuing grid modernization or transformation. Attendees will hear how grid transformation, especially if it results in increased electrification, may affect the natural gas industry. Moderator: Hon Judy Jagdmann, VA Francisco de la Chenaye, , Senior Manager, Energy and Environmental Analysis, EPRI Matt McCaffree, Director, Regulatory Affairs, ITRON Chris McGill, VP, Energy Analysis & Standards, American Gas Association Philip D. Moeller, Executive Vice President, Business Operations Group and Regulatory Affairs at the Edison Electric Institute Greg Pouolos, Executive Director, Consumer Advocates of PJM States (CAPS) 10:30 10:45 am Networking Break 10:45 11:45 am A - 1 Who has the answers?

3 A discussion about the existing nuclear fleet in the MACRUC region The fate of the existing nuclear fleet is being hotly debated around the MACRUC region. Issues around fuel diversity, grid resilience, environmental benefits and economic ramifications are playing into policy discussions around the region. This panel will include a variety of perspectives on the issues including both state initiatives to preserve nuclear as well as market reforms being considered or Starlight Room 3 occurring at a neighboring RTO. Panel participants will also discuss the challenges and externalities that are coming up in various states related to preservation of the existing nuclear fleet. Moderator: Hon. Anthony O Donnell, MD 10:45 11:45 am A - 2 Tax Reform: This CIAC won t Float. The effects of Federal Tax Reform provide the same pressure on Water, Gas and Electric utilities, particularly regarding cash flows. While the 500-page Act will impact every utilities rates, will it influence infrastructure improvements in different ways?

4 Will State Revolving Funds and Federal Funds dry up for water companies? Until the passage of the Act, Contributions in Aid of Construction (CIAC) were exempt from taxation for water and waste water utilities; how will these utilities and their regulators adapt? How will utilities make up for the reduction in cash flows because of the passage of the Act? How will the reduction in cash flows impact the cost of capital? How will passage of the Act affect multi-year infrastructure planning? Commissioners and their staff will need to consider regulatory policy and regulations to right the CIAC without current customers subsiding developers and new customers. Organizer: Hon. Mary-Anna Holden, NJ Moderator: Hon. Joann Conaway, DE Jay Kooper, General Counsel, Middlesex Water Company Christine Hoover, Senior Assistant Consumer Advocate, PA OCA Tommy Oliver, Deputy Director, Div. of Utility Accounting & Finance, Virginia SCC David Spacht, VP, CFO & Treasurer, Artesian Water Company Jairo Chung, Assoc.

5 Vice President Analyst, Moody s Ratings Services Castilian Room 3rd Floor 10:45 -11:45 am A - 3 Successful Coexistence MACRUC energy players are hotly debating what is needed in the wholesale and retail power markets, as Garden Terrace Ballroom 4 well as, grid transformation and regulatory policies. Attendees will hear what the hotly debated topics are and how it relates to infrastructure. Attendees will learn about regulatory policies that may be necessary to successfully manage the energy infrastructure need of the MACRUC region. Also to be discussed is how and where the consumer fits in the discussion. Organizer: Hon. Diane Burman, NY Moderator: Hon. Renee Larrick, WV Michelle Bloodworth, Chief Operating Officer, American Coalition for Clean Coal Electricity Robin Lunt, Attorney, Wilkinson Barker Knauer LLP Nicole Sitaraman, Senior Manager of Public Policy, SunRun 12:00 pm 1:45 pm Lunch Break (On Own) 2:00 pm 3:00 pm B - 1 What the Fund?

6 Finding the Money for Rural Broadband The United States managed to accomplish near-universal rural electric and telephone service in the 1930s and 1940s during one of the most financially challenging times in our nation s history. In the 21st Century why are we having such difficulty eliminating the rural divide for Broadband? Participants will discuss if sufficient and accurate data can identify where service is inadequate, what defines adequate service and what this service could eventually cost. The panel will also discuss the growing use of alternative technologies and non-incumbent providers that can play an important roles in bridging the digital divide but may not be part of the existing universal service program. Attendees will hear debate about the concern of overly taxing the Internet as a source of funding and where the money will/should come from. Attendees can decide if State and Federal policymakers are coordinating sufficiently to get the job done.

7 Moderator: Hon. Gregg Sayre, NY Hon. Upendra Chivukula, NJ Brian O Hara, NRECA Starlight Room 5 John Windhausen, Jr., Executive Director, Schools, Health & Libraries Broadband (SHLB) Coalition Joseph Witmer, Counsel to Chair Brown, PA PUC 2:00 pm 3:00 pm B - 2 Offshore Wind: Pull Together or Be Blown Off Course! The lack of completed offshore wind projects maintains the status quo reliance on imported power and/or natural gas and may result in foreign countries monopolizing the global offshore wind market. Each state currently works in isolation, resulting in a lack of idea sharing, technologies, policies and completed offshore wind projects. The panel will discuss methods and policies to advance offshore wind projects through the sharing of new policies and technologies. Attendees will learn how collaboration will enhance regional economic opportunities; provide multiple regional environmental benefits; grow the offshore wind industry and make it cost competitive in the Moderator: Hon.

8 Joseph Fiordaliso, NJ Matthew N. Greller, Esq., LLC Castilian Room 3rd Floor 2:00 pm 3:00 pm B - 3 The Value of Energy Storage in the MACRUC Region Recent developments in the regulatory sphere surrounding energy storage resources have altered the future for compensation of these resources. In Order 841, FERC required that regional transmission organizations (RTOs) establish a participation model consisting of market rules that recognize the physical and operational characteristics of electric storage resources, and facilitate their participation in wholesale markets. While the specifics of these directed changes are uncertain, the requirement that PJM must change its market rules will unlock opportunities for market revenues that will encourage deployment. The panel will discuss key issues and areas of further exploration raised by Order 841 such as: Is the 100KW minimum size requirement an individual unit size requirement, or a minimum size for an aggregation of storage resources?

9 How does lack of clarity on this issue relate to FERC allowing storage resources behind a retail Garden Terrace Ballroom 6 meter? Attendees will confront issues relating to the requirement to charge resources at locational marginal pricing (LMP), including storage of LMP-priced energy for later injection and the relationship of this requirement with joint state/federal jurisdiction. Moderator: Hon. Dallas Winslow, DE Joe DeLosa, Public Utility Analyst, Delaware PSC Anne Hoskins, Chief Policy Officer, Sunrun, Inc. 3:00 5:00 pm **NEW** INNOVATION EXPERIENCE LABs This new facet of the MACRUC Annual Education Conference gives attendees the opportunity to see, hear and experience innovative technologies in the utility space. Stay tuned more info to come! TBD MACRUC 23rd Annual Education Conference Tuesday, June 26, 2018 8:30 10:00 am What Does the Future Hold? Understanding Synergies The Energy Information Administration (EIA) forecasts natural gas will remain the primary energy source for electricity generation.

10 EIA also reported that most natural gas fired power plants in United States use firm contracts that require the producer and pipeline operator to send the natural gas to the plant when requested. Generally, firm contracts are more expensive than interruptible agreements/non-firm contracts but provide more reliability. Interruptible contracts/non-firm contracts can be set up for short periods, used for next-day delivery, and are more common in the Northeastern United States. More natural gas was purchased in the northeast using interruptible contracts than with firm contracts in 2016. As natural gas use for power generation has increased so has the interdependencies between natural gas supply and infrastructure and electric power generator operations. Attendees will examine the challenges and inherent risks in managing these contractual Garden Terrace Ballroom 7 relationships and interdependencies. This panel will provide attendees with the information necessary to have informed discussions about natural gas infrastructure needs and related natural gas system issues especially on the need to ensure access to natural gas.