2018 Information Summary Brochure

2018 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 seven Regional Entities (REs). • SERC comprises 54 Members, and more than 200 Registered Entities. • The SERC footprint covers approximately 560,000 square miles. • SERC Registered entities serve more than 53 million customers (population of 75 million). • The total connected generation in the SERC footprint is 256,346 MW. • SERC Registered entities forecast 201,497 MW of internal demand (peak load) for the 2018 summer peak. • The annual Net Energy for Load is forecasted to be over 1 Million GWh Net Energy for Load, which is over 25% of the load in the United States. • As of December 31, 2017, there are 103,069 miles of bulk transmission lines at 100 kV and above in the SERC Region. • SERC interconnects tightly with entities in three adjacent Regions: FRCC, RF, and 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

2018 Information Summary Brochure

Governance

SERC Board of Directors The SERC Board of Directors is responsible for managing SERC affairs pursuant to the SERC Bylaws and the NERC Delegation Agreement. The Board of Directors comprises representatives from all SERC member companies. The Board Executive Committee (BEC)—a subset of the Board of Directors—directs day-to-day functions of the organization. The SERC Board of Directors provides oversight of the Standing Technical Committees report to the Board of Directors.

Board Compliance Committee (BCC)

Finance and Audit Committee (FAC)

Board of Directors / Board Executive Committee

Human Resources and Compensation Committee (HRCC)

Nominating Committee (NC)

Operating Committee (OC)

Engineering Committee (EC)

Standing Technical Committees

Critical Infrastructure Protection Committee (CIPC)

Standards Committee (SC)

2018 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 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.

Board of Directors

Board Executive Commitee

Operating Committee (OC)

Engineering Committee (EC)

Critical Infrastructure Protection Committee (CIPC)

Standards Committee (SC)

2018 Information Summary Brochure

SERC by the Numbers

SERC Generating Capacity (MW) SERC MISO-Central

SERC Net Energy for Load (GWHr) SERC MISO-Central 92,124 SERC MISO-South 176,260 SERC PJM 109,486 Central 213,742 East 212,744 Southeast 243,732 SERC Region 1,048,088

SERC Transmission Miles SERC MISO-Central

22,699 39,643 30,202 50,843 51,167 61,792 256,346

8,769

SERC MISO-South

SERC MISO-South

14,380

SERC PJM

SERC PJM

8,356

Central

Central

21,707 22,800 27,057 103,069

East

East

Southeast

Southeast

SERC Region

SERC Region

SERC Total Internal Demand (MW) SERC MISO-Central 19,117 SERC MISO-South 29,648 SERC PJM 21,556 Central 41,454 East 42,620 Southeast 47,370 SERC Region (non-coincident) 201,497

SERC Planning Reserve Margin (%) SERC MISO-Central 23.97 SERC MISO-South 21.63 SERC PJM 33.12 Central 25.70 East 23.28 Southeast 32.56 SERC Reference Margin 13.15

SERC Registered Entities: 213

SERC Reliability Coordinators: 7

SERC Members: 54

2018 Information Summary Brochure

Capacity Resources

Capacity resources in the SERC Region for 2018 total 256,346 MW. Net capacity resources in the Region are expected to increase for the first five years of the 2019-2028 planning horizon to 266,900 MW. Net capacity resources are projected to level out in the last five years of the planning horizon with natural gas-fired capacity additions being largely offset by coal-fired capacity retirements. Capacity resources in the SERC Region in 2028 are projected to total 267,600 MW.

Figure 1: 2018 Capacity Resource Fuel Mix

Figure 2: Net Capacity Changes (2018-2027)

Figure 3: 2027 Capacity Resource Fuel Mix

Existing solar (photo-voltaic) capacity resources in the SERC Region are reported at 1,700 MW, but planned solar additions of over 2,400 MW are projected through 2023. While solar generation doubles by the end of the assessment period, it remains very small compared with other fuel types in the SERC Region. Solar generation’s limitations make it less useful than conventional and gas generation for reliability.

Figure 4: Projected Solar Additions, 2018-2023

2018 Information Summary Brochure

Demand and Energy

The 2018-2027 demand forecast shows a 0.77% compound annual growth rate (CAGR), which is slightly higher than the previous year’s forecast of 0.70%.

Figure 5: Subregional 2018 Total Internal Demand and CAGR

Figure 6: SERC Region Total Internal Demand Forecast

2018 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. The SERC 2018 Probabilistic Assessment PRM analysis determined PRMs for each area with no transmission tie benefits (islanded) and a SERC-wide PRM that allowed for interconnection (tie benefits) for the study years of 2020 and 2022. Areas adopt the lesser of the two PRMs, and consequently, they all adopted the SERC-wide PRM of 13.15% and 14.41% for 2020 and 2022 respectively, which are below the NERC Reference Margin Level of 15%. For this assessment, interpolation determined the 2021 Reference Margin Level while other years equal to the 2020 or 2022 results. All margins are above the Reference Level over the next ten years.

Figure 7: SERC Region Net Internal Demand vs. Anticipated Capacity Resources

Figure 8: Subregional Anticipated Reserve Margin

2018 Information Summary Brochure

Transmission Miles

As of December 31, 2017, there are 103,069 miles of bulk transmission lines operated at 100 kV and above in the SERC Region. Entities within the SERC Region anticipate adding approximately 2,136 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 10: Transmission Lines Additions, 2018-2028

Figure 9: Actual Transmission Miles, as of 12/31/2017

2018 Information Summary Brochure

SERC Members

Cooperative (15) Associated Electric Cooperative, Inc. (C) Big Rivers Electric Corporation (M-C) Cooperative Energy (M-S) East Kentucky Power Cooperative (P) Georgia System Operations Corporation (S) Georgia Transmission Corporation (S) 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) 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) Municipal (10) Alabama Municipal Electric Authority (S) City of Columbia, MO (M-C) City of Springfield, IL - CWLP (M-C) ElectriCities of North Carolina, Inc. (E) Fayetteville Public Works Commission (E) Illinois Municipal Electric Agency (M-C) Memphis Light, Gas and Water Division (C) Municipal Electric Authority of Georgia (S) Nashville Electric Service (C) Owensboro, KY Municipal Utilities (C) Marketer (3) ACES

Investor-Owned Utility (IOU) (14) Alabama Power Company (S) Ameren Services Company (M-C) Cleco Corporate Holdings LLC (M-S) Duke Energy Carolinas, LLC (E) Duke Energy Progress, LLC (E) Entergy (M-S)

Florida Power & Light Company Georgia Power Company (S) Gulf Power Company (S) LG&E and KU Services Company as agent for Louisville Gas and Electric Company and Kentucky Utilities Company (C) Mississippi Power Company (S)

South Carolina Electric & Gas Company (E) Southern Company Services, Inc. - Trans (S) Virginia Electric and Power Company (DP, TO) (P) Merchant Electricity Generator (7) 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) Occidental Chemical Corporation (M-S) Vistra Energy Corp. (M-C,P) RTO/ISO (2) Midcontinent Independent System Operator, Inc. PJM Interconnection, LLC

Subregional Affiliation (C) - Central Subregion

(S) - Southeast Subregion (M-C) – MISO Central Subregion (E) – East Subregion (M-S) – MISO South Subregion (P) – PJM Subregion

Alcoa Power Generating Inc. Tenaska Power Services Co.

2018 Information Summary Brochure

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