2019 Information Summary Brochure

2019 Information Summary

Quick Facts

Facts and Figures • SERC Reliability Corporation (SERC) is a nonprofit regulatory authority for administration of the bulk power system (BPS) reliability in all or parts of 16 southeastern states. • SERC is subject to oversight from the Federal Energy Regulatory Commission (FERC). • SERC has been delegated its authority from the North American Electric Reliability Corporation (NERC) pursuant to Section 215 of the Federal Power Act. • SERC is one of six Regional Entities (REs). • SERC is divided into seven subregions: Central, East, FL- Peninsula, MISO-Central, MISO-South, PJM, and Southeast. • SERC comprises 78 Members, and almost 250 Registered Entities. • The SERC footprint covers approximately 630,000 square miles. • SERC Registered entities serve a population of more than 91 million. • Capacity resources in the SERC Region for 2019 total 310,881 MW. • SERC Registered entities forecast 254,262 MW of internal demand (peak load) for the 2020 summer peak. • The 2020 annual Net Energy for Load is forecasted to be over 1.2 Million GWh Net Energy for Load, which is over 30% of the load in the United States. • As of July 1, 2019, there are 116,833 miles of bulk transmission lines at 100 kV and above in the SERC Region. • SERC interconnects tightly with entities in two adjacent Regions: ReliabilityFirst (RF) and Midwest Reliability Organization (MRO).

Our Vision A highly reliable and secure bulk power system

Our Mission To identify, prioritize, and assure effective and efficient mitigation of risks to the reliability and security of the bulk power system

2019 Information Summary Brochure

Governance

SERC Board of Directors SERC’s governance is designed to assure fair stakeholder representation and independence in all activities. SERC is governed by a balanced stakeholder Board of Directors consisting of representatives from SERC Member Companies. Each Member Company, together with any affiliated entities, may appoint one Director to the Board. The Board is responsible for overseeing SERC's affairs according to SERC’s Bylaws and the Delegation

Other Board Committees The following Board committees report to the BEC:

• Board Compliance Committee (BCC) • Finance and Audit Committee (FAC) • Human Resources and Compensation Committee (HRCC) • Nominating Committee

Agreement between SERC and NERC. Board Executive Committee

Board Compliance Committee (BCC)

Finance and Audit Committee (FAC)

The Board Executive Committee (BEC) consists of fifteen (15) Sector representatives from the Board of Directors. The BEC is responsible for overseeing the operation of SERC. The BEC reports directly to the Board of Directors.

Board of Directors / Board Executive Committee

Human Resources and Compensation Committee (HRCC)

Nominating Committee (NC)

2019 Information Summary Brochure

Standing Technical Committees

Committee Structure SERC and its members leverage the committee structure to perform SERC’s delegated activities, provide a venue for members to address compliance in a combined effort, and create an environment to enhance reliability and security in the SERC Region. SERC representatives and the technical committees face known and emerging risks collaboratively. The SERC Technical Committees encourage industry engagement, education, and input.  The Operating Committee (OC) facilitates a forum for representatives to coordinate and share experience and information to provide input on operating issues.  The Engineering Committee (EC) provides a mechanism for coordination of SERC planning and engineering activities.  The Critical Infrastructure Protection Committee (CIPC) focuses on physical and cyber security of electric systems.  The Standards Committee (SC) promotes development and maintenance of NERC and SERC Reliability Standards and the work plan for SERC Regional Criteria and Guidelines.  The Operations, Planning, and Security Executive Committee (OPSEC) coordinates among the Technical Committee leadership on matters, as necessary, to provide guidance on Bulk Electric System (BES) reliability risk issues.

2019 Information Summary Brochure

Reliability Risk

Reliability Risk Working Group (RRWG) The Reliability Risk Working Group (RRWG) advises the SERC Operations, Planning, and Security Executive Committee (OPSEC) concerning risks to the reliability of the bulk power system (BPS). The RRWG identifies SERC BPS reliability risks from an engineering, operations, and critical infrastructure protection perspective to create a Risk Registry. The Risk Registry is compiled into an annual report that is an input into the SERC Compliance Monitoring and Enforcement Program (CMEP) Implementation Plan. Some of the RRWG Responsibilities: • Review and Recommend changes to the SERC specific risks identified in the SERC CMEP implementation Plan. • Provide input to the SERC Board of Directors and SERC staff on issues of reliability risk. • Inform and monitor North American Electric Reliability Corporation (NERC) Reliability Issue Steering Committee (RISC) work plans and initiatives, and identify corresponding SERC RRWG activities to coordinate with this subcommittee as directed by the OPSEC. • Provide recommendations to the EC, OC, and CIPC to address and develop mitigation plans for the identified risks. • Develop and exchange information about reliability risk to the BPS, incorporating perspectives from the EC, OC, and CIPC.

Regional Risks 2018

•Resource uncertainty or changing mix, along with generation retirements •Fuel Diversity/Fuel Availability •Generator Governor Frequency Response Engineering Risks •Fuel Diversity/Fuel Availability •Resource uncertainty or changing mix, along with generation retirements •Extreme Weather Operational Risks •Cybersecurity threats result from exploitation of both external and internal vulnerabilities •Legacy architecture coupled with the increased connectivity of the grid expands the attack surface of BPS protection and control systems •Interdependencies from the critical infrastructure sectors, such as Communications, Financial Services, Oil and Natural Gas Subsector, and Water, where sector-specific vulnerabilities can impact BPS reliability Critical Infrastructure Protection (CIP) Risks

2019 Information Summary Brochure

SERC by the Numbers

Generating Capacity (MW) 1 SERC MISO-Central

Net Energy for Load (GWHr) 3 SERC MISO-Central

Transmission Miles 4 SERC MISO-Central SERC MISO-South

21,853 41,139 32,348 50,893 51,887 56,449 60,704 315,273 18,737 33,611 21,507 40,761 43,852 48,139 47,655 254,262

95,257 179,839 110,134 216,513 218,843 218,336 245,870

8,877

SERC MISO-South

SERC MISO-South

16,052

SERC PJM

SERC PJM

SERC PJM

8,423

Central

Central

Central

21,727 22,859 11,817 27,078 116,833 21.28% 26.79% 57.03% 31.56% 21.28% 25.30% 34.33%

East

East

East

FL-Peninsula

FL-Peninsula

FL-Peninsula

Southeast

Southeast

Southeast

SERC Region

SERC Region

SERC Region

1,284,792

Total Internal Demand (MW) 1,2 SERC MISO-Central

Anticipated Reserve Margin 1 SERC MISO-Central

SERC MISO-South

SERC MISO-South

SERC PJM

SERC PJM

Central

Central

East

East

FL-Peninsula

FL-Peninsula

Southeast

Southeast

SERC Region

1 2020 Summer Projections 2 Non-Coincident 3 2020 Annual Projection 4 As of 07/01/2019

2019 Information Summary Brochure

Capacity Resources

Net capacity resources in the Region are expected to increase for the first five years of the 2020-2029 planning horizon to 319,046 MW. Natural gas-fired capacity additions will be largely offset by coal-fired capacity retirements. Capacity resources in the SERC Region in 2029 are projected to total 322,901 MW.

Capacity resources in the SERC Region for 2019 total 310,881 MW. Natural gas is the primary fuel source in the SERC Region, followed by coal, nuclear, and other types (which include pumped storage, oil-fired, solar, biomass, wind, and other).

Figure 1: 2019 Capacity Resource Fuel Mix

Figure 2: 2029 Capacity Resource Fuel Mix

2019 Information Summary Brochure

Demand

Figure 4 shows the forecasted total internal demand by year. The delta between the summer and winter season doubled from approximately 5 GW to 10 GW from last year’s projections with the addition of the summer peaking FL-Peninsula subregion.

The 2020-2029 demand forecast shows a 0.54% compound annual growth rate (CAGR), which is relatively flat compared to the previous year’s forecast of 0.77%.

Figure 4: SERC Region Total Internal Demand Forecast

Figure 3: Subregional 2019 Total Internal Demand and CAGR

2019 Information Summary Brochure

Reserve Margins

Reference Margin Levels are established to allow NERC to assess the level of planning reserves, recognizing factors of uncertainty involved in long-term planning (e.g., forced generator outages, extreme weather impacts on demand, fuel availability, and intermittency of variable generation). NERC does not require a certain level of planning reserves; instead, SERC, through the Resource Adequacy Working Group (RAWG), conducts a loss of load expectation study to determine Planning Reserve Margins (PRM), or Reference Margin Levels. With the exception of the FL-Peninsula subregion, SERC entities adopted the PRM of 13.15% and 14.41% for 2020 and 2022 respectively, which are below the NERC Reference Margin Level of 15%. Entities in the FL-Peninsula subregion use the NERC Reference Margin Level of 15%. As shown in figures 5 and 6, all margins are above the Reference Margin Level or PRM over the next ten years.

Figure 5: Subregional Anticipated Reserve Margin

Figure 6: SERC Region Net Internal Demand vs. Anticipated Capacity Resources

2019 Information Summary Brochure

Transmission Mileage

As of July 1, 2019, there are almost 117,000 miles of bulk transmission lines operated at 100 kV and above in the SERC Region. Entities within the SERC Region anticipate adding approximately 2,500 miles during the ten-year reporting period. SERC entities coordinate transmission expansion plans in the Region annually through joint model-building efforts that include the plans of all SERC entities. The coordination of transmission expansion plans with entities outside the Region is achieved through annual participation in joint modeling efforts with the ERAG Multi-regional Modeling Working Group (MMWG). Transmission expansion plans by most SERC entities are dependent on regulatory support at the federal, state, and local levels since the regulatory entities can influence the siting, permitting, and cost recovery of new transmission facilities.

Figure 3: Actual Transmission Miles, as of 12/31/2018

Figure 4: Transmission Lines Additions, 2019-2029

2019 Information Summary Brochure

SERC Members

Cooperative (18) Associated Electric Cooperative, Inc. (C) Big Rivers Electric Corporation (M-C) Cooperative Energy (M-S) East Kentucky Power Cooperative (P) Florida Keys Electric Cooperative Assn (F) Georgia System Operations Corporation (S) Georgia Transmission Corporation (S) Lee County Electric Cooperative, Inc. (F) Louisiana Generating, LLC (M-S) North Carolina Electric Membership Corporation (E) Oglethorpe Power Corporation (S) Old Dominion Electric Cooperative (E) Piedmont Electric Membership Corporation (E) PowerSouth Energy Cooperative (S) Prairie Power, Inc. (M-C) Seminole Electric Cooperative (F) Southern Illinois Power Cooperative (M-C) Wabash Valley Power Association, Inc. (M-C) Federal/State System (3) South Carolina Public Service Authority (E) Southeastern Power Administration (C,E,S) Tennessee Valley Authority (C) Marketer (3) ACES Alcoa Power Generating Inc. Tenaska Power Services Co. RTO/ISO (2) Midcontinent Independent System Operator, Inc. PJM Interconnection, LLC

Merchant Electricity Generator (8) Brookfield Smoky Mountain Hydropower LLC (C) Calpine Corporation (C,M-S) Cogentrix Energy Power Management, LLC (E) Cube Hydro Carolinas, LLC (E) Electric Energy, Inc. (C) Northern Star Generation Services Company, LLC Occidental Chemical Corporation (M-S) Vistra Energy Corp. (M-C,P) Investor-Owned Utility (IOU) (17) Alabama Power Company (S)

Ameren Services Company (M-C) Cleco Corporate Holdings LLC (M-S) Dominion Energy South Carolina (E) Duke Energy Carolinas, LLC (E) Duke Energy Florida, LLC (F) Duke Energy Progress, LLC (E) Entergy (M-S)

Florida Power & Light Company (F) Florida Public Utilities Company (F) Georgia Power Company (S) Gulf Power Company (S) LG&E and KU Services Company (C) Mississippi Power Company (S) Southern Company Services, Inc. - Trans (S) Tampa Electric Company (F) Virginia Electric and Power Company (DP, TO) (P)

2019 Information Summary Brochure

SERC Members

Municipal (27) Alabama Municipal Electric Authority (S) Beaches Energy Services of Jacksonville Beach (F) City of Bartow (F) City of Columbia, MO (M-C) City of Homestead (F) City of Key West (Keys Energy) (F) City of Leesburg (F) City of Ocala Electric Utility (F) City of Springfield, IL - CWLP (M-C) ElectriCities of North Carolina, Inc. (E) Fayetteville Public Works Commission (E) Florida Municipal Power Agency (F) Fort Pierce Utilities Authority (F) Gainesville Regional Utilities (F) Illinois Municipal Electric Agency (M-C) JEA (F) Kissimmee Utility Authority (F) Lakeland Electric (F) Memphis Light, Gas and Water Division (C) Municipal Electric Authority of Georgia (S) Nashville Electric Service (C) Utilities Commission of New Smyrna Beach (F) Orlando Utilities Commission (F) Owensboro, KY Municipal Utilities (C) Reedy Creek Improvement District (F) City of Tallahassee (F) City of Winter Park (F)

Subregional Affiliation (C) - Central Subregion (E) – East Subregion (F) – FL-Peninsula Subregion (M-C) – MISO Central Subregion (M-S) – MISO South Subregion (P) – PJM Subregion (S) - Southeast Subregion

2019 Information Summary Brochure

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