Duke Energy Corporation (holding Company) · NYSE:DUK
Duke Energy Corporation (holding Company) — Investor Presentation (January 2021)
42 slides from Duke Energy Corporation (holding Company)'s investor presentation, Jan 25, 2021
Slide 1: 2021 Integrated Resource Plan Stakeholder Workshop #2
2021 Integrated Resource Plan Stakeholder Workshop #2 Jan 25, 2021
Slide 2: Safety Message, Technology, Opening, Introductions
SAFETY TECHNOLOGY OPENING INTRODUCTIONS MESSAGE COMMENTS Microsoft-Teams check 2
Slide 3: Meeting Protocols
Meeting Protocols • The value of this process is in participation … please jump in! • We set aside time at the end of each section for Questions, and if you need clarification at any time, feel free to ask! • ”Raise your hand” for comments and questions, we will try to get to you ASAP - We will not
Slide 4: What are the Goals of the IRP Process
What are the Goals of the IRP Process INTEGRATED RESOURCE PLAN (IRP): DEI’s plan to provide safe, reliable and sustainable energy solutions for our Customers in Indiana. • IRPs are submitted every three years • Plan is created with stakeholder input • 20-year look at how DEI can cost-effectively ser
Slide 5: Agenda
Agenda 10:00 Welcome & Introductions 10:30 Recap of first meeting 10:40 Follow-ups from first meeting -IRP 101 & Evening Q&As -Load Forecasting considering climate change -RFI 11:15 Scenario discussion 12:00 Lunch break 1:00 AMI, Customer Programs & DERs 2:30 Wrap up 5
Slide 6: Recap of first meeting (Nov 10)
Recap of first meeting (Nov 10) • Review of the 2018 DEI IRP • Stakeholder feedback • Contemplated changes for 2021 IRP • Overview of future stakeholder meetings • Load forecasting 6
Slide 7: Follow ups from first meeting (Nov 10)
Follow ups from first meeting (Nov 10) IRP 101 & Evening Q&As • Due to the increase in number of new participants, an updated IRP 101 document has been added to the webpage • Additionally, we held an evening Q&A meeting on Jan 20th Load Forecasting considering climate change • Based on feedback from
Slide 8: Scenario Development Discussion
Scenario Development Discussion 8
Slide 9: What is a scenario?
What is a scenario? • A scenario is a set of internally consistent assumptions that are external to the utility and beyond its control • Needs to include specific assumptions that can be entered into models • For example, carbon regulation, fuel prices, cost of new generation • A portfolio is a set
Slide 10: Scenarios from past IRPs
Scenarios from past IRPs Key Scenario Variables ENVIRONMENTAL REGULATION • Carbon regulation • Fuel prices • Load • Cost of resources • traditional • renewables/EE 10
Slide 11: Scenarios for 2021 IRP
Scenarios for 2021 IRP What other scenarios/variables/risk do we want to consider/test? test DEI Scenarios • Reference with carbon regulation • Reference without carbon regulation Stakeholder Scenarios • Rapid Decarbonization & Electrification • Current Conditions • RFI data • Others? 11
Slide 12: Lunch
Lunch 12
Slide 13: Innovation Through AMI Data & Rate Design
Innovation Through AMI Data & Rate Design Lon Huber – VP Rate Design & Strategic Solutions
Slide 14: Targeting System Challenges with Advanced Metering Infrastructure (AMI)
▪ Targeting System Challenges with Advance Metering Infrastructure (AMI) Insights and Rate Design RECENT ADVANCES WITH AMI DATA CREATING OPPORTUNITIES FOR NEW RATE DESIGNS Interval usage data available for most Deeper insights around electricity usage by customers due to AMI rollout progress custome
Slide 15: Using AMI to Target Summer Peak Loads
Using AMI to Target Summer Peak Loads 15
Slide 16: Using AMI to Target Winter Peak Loads
Using AMI to Target Winter Peak Loads 16
Slide 17: From Vision to Product: Early Results on the Slides Ahead
▪ From Vision to Product Pricing Team Vision - Enterprise Data Analytics Built EARLY Hourly RESULTS weekend/weekday load shapes from AMI usage ON THE data SLIDES AHEAD Select combinations of different customer Compare different demographics and housing customer segmentations characteristics 17
Slide 18: Contributions Factors to Summer peak: Income Level
Contributions Factors to Summer peak: Income Level • Residential energy usage during the day of Duke Energy Indiana’s summer peak was analyzed 18
Slide 19: Contributions Factors to Winter peak: Income Level
Contributions Factors to Winter peak: Income Level • Residential energy usage during the day of Duke Energy Indiana’s 2019 system peak was analyzed • Income level, by itself, was not a driver of usage throughout the day or at the peak 19
Slide 20: LMI Customers Are Nearly As Likely to Have Above-Average Usage
Low & Moderate Income (LMI) Customers are Nearly As Likely to Have Above-Average Usage ▪ Examining residential accounts in Duke Energy Indiana: ▪ Small difference between LMI customers compared to non-LMI customers ▪ 969 kWh monthly average for LMI vs 1,012 kWh for non-LMI ▪ ~38% of LMI (less than 2
Slide 21: Contributions factors to Summer peak: Age of Residence
Contributions factors to Summer peak: Age of Residence • The age of a home has as a more significant effect on contributions to summer system peak • Homes built from 2000-2009 have the most usage and contributions to summer system peak 21
Slide 22: Contributions factors to Summer peak: Property Type
Contributions factors to Summer peak: Property Type • Single Family Homes were a particularly large contributor to the summer system peak *Excluded miscellaneous residences 22
Slide 23: Contributions factors to Summer peak: Age of Residence 2000-2009
Contributions factors to Summer peak: Age of Residence 2000-2009 • From 2000-2009, Single Family Units have the most usage and contributions to summer system peak, with Mobile Homes contributing the second most 23
Slide 24: Contributions factors to Winter peak: Age of Residence
Contributions factors to Winter peak: Age of Residence • The age of a home has as a more significant effect on contributions to winter system peak • Homes built from 1975-1989 have the most usage and contributions to winter system peak 24
Slide 25: Contributions factors to Winter peak: Property Type
Contributions factors to Winter peak: Property Type • Mobile homes were a particularly large contributor to the winter system peak • Single family homes consumed significantly more energy than apartments or condos *Excluded miscellaneous residences 25
Slide 26: Contributions factors to Winter peak: Age of Residence 1975-1989
Contributions factors to Winter peak: Age of Residence 1975-1989 • From 1975-1989, Single Family Units have the most usage and contributions to winter system peak, with Mobile Homes and 2-4 Units contributing the second most 26
Slide 27: Contributions factors to Winter peak: Age of Residence
Contributions factors to Winter peak: Age of Residence • Gas Heat is more prevalent in homes every year • Electric Heat has the highest penetration from 1975-1989 Heat Source Percentage by Year 100 90 80 70 60 50 40 30 20 10 0 Before 1950 1950-1974 1975-1989 1990-1999 2000-2009 2010 and After Gas He
Slide 28: Approach for Peak Reduction Opportunities
Approach for Peak Reduction Opportunities Target Peak Loads Identify DSM Leverage Current Duke Programs opportunities that best align with Look for ways to improve programs, Duke’s peak resource needs delivery channels, and platforms in partnership with trade allies. Target Technologies Customers In
Slide 29: Can Rate Design Help Reduce Peak?
Can Rate Design Help Reduce Peak? 29
Slide 30: DEC Pilot Load Impacts
DEC Pilot Load Impacts ▪ Residential customers showed statistically significant load impacts during the event hours on all three rates Critical Peak Pricing (CPP), Time of Use (TOU), and Time of Use – Demand (TOUD) for critical and high event days ▪ Event based impacts ranged from 7.1% (Residential
Slide 31: Event Day Load Impacts (RE)
Event Day Load Impacts (RE) ▪ All events were called from 6 to 10 AM and 6 to 9 PM ▪ RE customers on all three rates showed statistically significant load reductions during the morning and evening event hours on the average event day ▪ It is important to note that TOUD customers experienced twelve e
Slide 32: DEI Dynamic Rate Pilots
DEI Dynamic Rate Pilots Inspired by our DEC-NC experience and the rollout of smart meters in DEI, dynamic pricing rate pilots were proposed in Cause No. 45253 (DEI Rate Case). - The IURC approved all 6 pilot rates proposed effective on July 30, 2020. - Pilot marketing began on September 30, 2020 wit
Slide 33: DEI Dynamic Rate Pilots
DEI Dynamic Rate Pilots ▪ Similar to traditional TOU rates, our pilot dynamic rates have a defined On-peak and Off-peak period for the summer and non-summer months. ▪ Unlike traditional TOU rates, higher prices are not in effect every day during the On-peak period. Higher prices are only effective o
Slide 34: Summer Load Shapes by Temperature
Summer Load Shapes by Temperature 34
Slide 35: Winter Load Shapes by Temperature
Winter Load Shapes by Temperature 35
Slide 36: Pricing Options That Appeal To All Customer Segments
Pricing Options That Appeal To All Customer Segments Renewable energy options Control Optimized demand side Bill certainty management Low/moderate Alignment to system value income programs Risk exposure Complexity 36
Slide 37: How Can Rate Design and Rooftop Solar Help with Winter Peak?
How Can Rate Design and Rooftop Solar Help with Winter Peak? “First of a Kind” Rooftop Solar Settlement 37
Slide 38: Distributed Energy Resources
Distributed Energy Resources 38
Slide 39: What do we mean by Distributed Energy Resources?
DERs What do we mean by Distributed Energy Resources? • Lawrence Berkley National Lab report to 21th Century Task Force looks at 5 different adoption levels of: • Rooftop solar • EV Charging • Battery Storage • Others such as Hybrid systems, Combined Heat & Power (CHP), Fuel Cells, Small Engines How
Slide 40: Closing Comments, Stakeholder Comments
Closing Comments, Stakeholder Comments 40
Slide 41: Wrap Up
Wrap Up • Meeting survey to be sent out in the next week to attendees • Comments can also be sent to: • Scott at: scott.park@duke-energy.com • Stewart at: stewart@vanry.com • Meeting summary and other materials will be posted on website by Feb 3rd • https://www.duke-energy.com/home/products/in-2021-
Slide 42: Acronyms
Acronyms AMI Advanced Metering Infrastructure LBL Lawrence Berkeley Lab CHP Combined Heat & Power LMI Low-Medium Income MW Megawatt CPP Critical Peak Pricing NEM Net Energy Metering CS Small Commercial NDA Non-disclosure agreement DR Demand Response PVRR Present Value of Revenue Requirements DER Dis