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Investor Presentaiton

WHOLESALE REFORMS Recommended Wholesale Reforms Reform Option Join or Participate in Regional Wholesale Market When? Immediate Coordinate with Immediate Other States Timeframe Immediate Recommendations Establish a policy and timeframe for integrating with an RTO, considering at least three pathways that can achieve the estimated net benefits for South Carolina customers: 1. Join an existing RTO (i.e., PJM) under their existing governance and membership model. South Carolina would maintain all authorities over vertically integrated utility planning and ratemaking, but would not be in a position to dictate any changes to the existing RTO governance structure; or 2. Create a new Southeast RTO provided that neighboring states and utilities show interest in initiating the multi-state effort to create a new RTO; or 3. Integrate with an existing RTO but under a new governance model, such that regional energy and resource adequacy benefits can be achieved, but under a governance structure that is suited to the prevailing state regulatory model in South Carolina and other states in the Southeast (e.g. possibly modeled after the Western EIM, EDAM, SPP's Markets+, and WPP's WRAP) Seek coordination with states and utilities across the Southeast, particularly North Carolina, toward a regional market footprint and coordinated use of transmission infrastructure Authorize the PSC to review and approve each utility's regional market integration plan subject to defined criteria and timelines. Examples of legislation in other states: Colorado Senate Bill 21-072 and Nevada Senate Bill 448 establish relevant authorities, timelines, and evaluation criteria for regional market integration
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