The Midcontinent Independent System Operator (MISO) Interconnection Queue has over 8,444 MW of projects for Michigan.

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2 The Midcontinent Independent System Operator (MISO) Interconnection Queue has over 8,444 MW of projects for Michigan. (As a point of reference, Michigan s peak load for this year is forecasted to be just under 21,000 MW.) MISO queue data as of February 16, 2018.

3 Thinking about 8,444 MW in the Michigan queue, what percentage of generation projects in the MISO queue have historically resulted in a generator interconnection agreement? A. 18% B. 30% C. 70% D. 95%

4 Answer Slide Thinking about 8,444 MW in the Michigan queue, what percentage of generation projects in the MISO queue have historically resulted in a generator interconnection agreement? A. 18% B. 30% C. 70% D. 95% From MISO eholder/iptf/2017/ / %20iptf%20item%2002c%20mis O%20Queue%20Outlook.pdf

5 Considering the 8,444 MW of projects in the MISO Interconnection Queue for Michigan, which type of resource accounts for the most MW? A. Wind B. Solar C. Natural Gas D. Battery Storage

6 Answer Slide Considering the 8,444 MW of projects in the MISO Interconnection Queue for Michigan, which type of resource accounts for the most MW? A. Wind B. Solar C. Natural Gas D. Battery Storage 2,093 MW, Solar, 2 MW, 24.79% Landfill Gas, 3, % MW, Natural Gas, 20 MW, 2,638 MW Wind, 31.24%

7 Considering the 8,444 MW of projects in the MISO Interconnection Queue for Michigan, in which county is the largest amount of MW located? A. Wayne County B. Calhoun County C. Huron County D. St. Clair County

8 Answer Slide Considering the 8,444 MW of projects in the MISO Interconnection Queue for Michigan, in which county is the largest amount of MW located? A. Wayne County 235 MW B. Calhoun County 1,488 MW C. Marquette County 228 MW D. St. Clair County 1,402 MW Thank you to the MPSC s Energy Markets Section for providing the data and poll question ideas!

9 Preparing for the Future Our Commitment to the Planet Dennis Dobbs Vice President, Enterprise Project Management & Environmental Services

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12 Introduction to Wolverine Utility Scale Energy Projects Panel February 23, 2018 Zach Anderson, Vice President of Power Supply

13 MEMBERS 13 Michigan s Generation & Transmission Cooperative 268,000 Member-Consumers 29,420 Miles of Power Lines 44 Total Counties Served 535 Total Employees

14 14 Natural Gas 1000 MW Natural Gas Coal 155 MW Coal Renewables (18%) 200 MW Wind 7 MW Hydro 1 MW Solar Generation Portfolio

15 15 56% of Energy Carbon-free Projected Member Fuel Mix (2018) 20% 1% 26% Projected Member Carbon-Free Mix (2018) 44% 56% 36% 17% Coal Gas Nuclear Renewable Other Carbon Free Other 25% Improvement versus 2016

16 Large Scale Renewable Energy Ann Erhardt, MM, ISSP-SA Chief Sustainability Officer

17 Pros No farm land used Keeps sun, rain & snow off parked cars Extends life of asphalt Advertises green efforts Cons $20-$30 / MWh initial cost premium due to car port structure Need for phased construction 17

18 Harrison Rd. Farm Ln. Jolly Road 18

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20 5,000 parking spots 45 acres 40,000 solar panels 13.4 MW dc peak power 10.5 MW ac peak power 15,000 MWh/year of solar energy 9 ft. 14 ft. 28 ft. 20

21 Solar Carport Arrays: Financial Benefits PPA allows MSU to purchase power at a fixed price over the next 25 years 2015 public service commission utility rate $91/MWh, but will increase. (DOE-EIA projection: 2.3%/year; last decade: 3.35%/year) Projected total net savings ~$10M for MSU over the 25 year PPA period A drop in the cost of electricity would make the PPA unfavorable Opportunity costs for the land Potential that the technology will become obsolete Missing the tax credit windows

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24 Campus Demand (MW) Reliabilit y & Cost Illustrative Example- One day of Campus Demand Electricity Supply Options Solar Substation Tie Line T.B. Simon Plant Lower Off-Peak Tie Line Rate High Peak Tie Line Rate 11am-7pm Off-Peak 24

25 25 Research at MSU on Utility-Scale Energy Projects Joydeep Mitra Director, Energy Reliability & Security (ERISE) Lab Associate Professor, Electrical & Computer Engineering Michigan State University East Lansing, MI Presented at the 2018 Michigan Forum on Economic Regulatory Policy February 23, 2018

26 MSU-Consumers Energy Partnership Projects Ongoing project on impact evaluation of gridscale battery storage in power distribution systems Past projects on evaluation of potential for and impact of Wind generation in the lower peninsula Solar generation in Michigan Bio-energy from anaerobic digesters Joydeep Mitra, 2018 Michigan Forum 26

27 Battery Storage Technologies in Support of Power Distribution PROJECT OVERVIEW Review/assessment of BESS use cases. Comparison of battery technologies: performance, cost & safety. Survey of potential vendors for pilot project. Recommended lithium ion, lead acid & vanadium redox flow for further analysis. Development of siting criteria. Review of engineering considerations & financial benefits. Nominal Voltage Qualitative Comparison of Different Battery Technologies Support Temperat ure 5 Energy 4 Power Life span Cost Safety Lithium-ion Lead Acid Vanadium Redox Joydeep Mitra, 2018 Michigan Forum 27

28 Summary Findings Technology/Performance, Cost & Safety: lithium-ironphosphate, lithium-nickel-manganese-cobalt, or lithium-titanate. Potential Customer Locations: Match load: Commercial/small industrial load in 1 4 MVA range. BESS close to target load on utility side of meter. Identify different use cases, but not all can be monetized. Pilot Location: A mobile unit transported to different candidate locations (not limited to those considered in this study) and test out different use cases. General Project Cost: Approximately $1 million per 1MW/1MWh storage/discharge capacity. Parkview Pilot Project: Construction April-July 2018 Testing & Data collection July-October Joydeep Mitra, 2018 Michigan Forum 28

29 Acknowledgements and Concluding Remarks Consumers Energy has been forward-looking and supportive. Prior evaluation is key to successful execution of projects. I acknowledge the contribution of Mike Thomas who participated on all four projects and worked with me on two of them. I am also partnering with Sandia National Labs on developing public domain tools for storage project evaluation. Joydeep Mitra, 2018 Michigan Forum 29