Customer Churn in Mobile Markets: A Comparison of Techniques
Market Analysis: A Comparison ofSEEM and the RTO Markets ...
Transcript of Market Analysis: A Comparison ofSEEM and the RTO Markets ...
Summer 2021
Market Analysis: A Comparison of SEEM and the RTO MarketsAcross Various Metrics
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Disclaimers
Data and analyses contained in this presentation are accurate as of the year noted for the particular metric. The analyses were conducted in good faith and were based upon assumptions believed to be reasonable as of the date of this presentation.
The Southeastern Energy Exchange Market (SEEM) has yet to be approved by FERC and expected member participation is neither confirmed nor definite. All references to the SEEM are therefore in anticipation of FERC approval of the proposed SEEM and all analysis of "SEEM" was inclusive of expected members as of June 2021.
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Customer Satisfaction
How does the proposed SEEM compare to RTO markets across four metrics?
Market Analysis Overview
• J.D. Power 2020 Electric Utility Residential Satisfaction Study
• J.D. Power 2020 Electric Utility Business Satisfaction Study
Reliability Generation Mix Price
• J.D. Power 2020 Electric Utility Residential Satisfaction Study
• J.D. Power 2020 Electric Utility Business Satisfaction Study
• 2019 Energy Information Agency (EIA)
• Forms 860 and 923
• 2019 EIA data
• Residential, Industrial & Commercial
• Form 861
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The proposed SEEM Region...
Serves its customers by appropriately balancing customer satisfaction, reliability, price, and clean energy.
Is on pace with or outperforming the RTO markets across most metrics.
Will continue to increase clean energy generation while still providing world-class customer service and affordable and reliable power—all without an RTO.
Key Takeaway: RTOs Are Not Necessary to Deliver Clean, Affordable and Reliable Energy in the Proposed SEEM Region
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Customer Satisfaction
Compared to the RTO markets, in 2020 the average Customer Satisfaction score of utilities in the proposed SEEM region rankedfirst in the business segment and second in the residential segment, based on the J.D. Power 2020 Electric Utility Residential Satisfaction StudySM and the J.D. Power 2020 Electric Utility Business Satisfaction StudySM
Reliability Compared to the RTO markets, in 2020 the average Power Quality and Reliability satisfaction score of utilities in the proposed SEEM region rankedsecond in both the residential and business segments, based on the J.D. Power 2020 Electric Utility Residential Satisfaction StudySM and the J.D. Power 2020 Electric Utility Business Satisfaction StudySM
Key Takeaways: Summary of the Four Metrics
© 2021 J.D. Power. All Rights Reserved. Charts, graphs, data and insights extracted from this publication must be accompanied by a statement identifying J.D. Power as the publisher and the J.D. Power 2020 Electric Utility Residential Satisfaction StudySM and J.D. Power 2020 Electric Utility Business Satisfaction StudySM as the source. No media, advertising, or other promotional use can be made of the information in this publication or J.D. Power study results without the express prior written consent of J.D. Power.
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PriceIn 2019, the proposed SEEM region had prices that were competitive across all customer classes with the lowest priced RTO regions, and below the U.S. average prices and RTO average.
Generation Mix
Key Takeaways: Summary of the Four Metrics
In 2019, the share of clean energy generation in the proposed SEEM region was nearly the same as the share of clean energy generation across the combined RTO markets, according to EIA data.
In 2019, the share of coal generation in the proposed SEEM region was nearly the same as the share of coal generation across the combined RTO markets, according to EIA data.
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Customer Satisfaction &Power Quality and Reliability Satisfaction Analysis
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J.D. Power Factors: Summary of Customer Satisfaction Index and Power Quality and Reliability
A measure of critical components driving overall customer satisfaction among electric utility customers, which allows companies to identify and prioritize improvements and benchmark their performance among other large and midsize electric utilities throughout the United States.
Customer Satisfaction Index
A measure of providing quality electric power (in terms of spikes, drops, or surges), supplying electricity during extreme temperatures, avoiding brief and lengthy outages and, when an outage occurs, promptly restoring power all while keeping customers informed about the outage.
Power Quality & Reliability
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2020 Customer Satisfaction Index –Utilities in RTOs and SEEM
781 772 753 749 745 741 738 723 695650
700
750
800
850
ERCOT SEEM MISO PJM** CombinedRTO Markets
SouthwestPower Pool
California ISO NY ISO+ NE ISO
Residential
805 803 794 792 789 787 776 749 748
650
700
750
800
850
SEEM SouthwestPower Pool
ERCOT MISO PJM** CombinedRTO Markets
NY ISO+ California ISO NE ISO
Business
**Data for Dominion Energy is reported at the parent level, and because the majority of companies are outside of the proposed SEEM region, the utility average is included in the PJM average.+National Grid is included in the NY ISO averageSimple average used to calculate each RTO average
© 2021 J.D. Power. All Rights Reserved. Charts, graphs, data and insights extracted from this publication must be accompanied by a statement identifying J.D. Power as the publisher and the J.D. Power 2020 Electric Utility Residential Satisfaction StudySM and J.D. Power 2020 Electric Utility Business Satisfaction StudySM as the source. No media, advertising, or other promotional use can be made of the information in this publication or J.D. Power study results without the express prior written consent of J.D. Power.
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2020 Power Quality and Reliability –Utilities in RTOs and SEEM
805 800 787 783 781 780 765 756 738700
750
800
850
900
ERCOT SEEM MISO PJM** SouthwestPower Pool
CombinedRTO Markets
California ISO NY ISO+ NE ISO
Residential
826 825 819 816 812 810 797 781 762700
750
800
850
900
SouthwestPower Pool
SEEM MISO PJM** CombinedRTO Markets
ERCOT NY ISO+ NE ISO California ISO
Business
**Data for Dominion Energy is reported at the parent level, and because the majority of companies are outside of the proposed SEEM region, the utility average is included in the PJM average.+National Grid is included in the NY ISO averageSimple average used to calculate each RTO average
© 2021 J.D. Power. All Rights Reserved. Charts, graphs, data and insights extracted from this publication must be accompanied by a statement identifying J.D. Power as the publisher and the J.D. Power 2020 Electric Utility Residential Satisfaction StudySM and J.D. Power 2020 Electric Utility Business Satisfaction StudySM as the source. No media, advertising, or other promotional use can be made of the information in this publication or J.D. Power study results without the express prior written consent of J.D. Power.
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Generation Mix Analysis
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2019 Generation Mix: RTOs and SEEM
24.2%
36.2%
1.0%
21.6%
17.0%
All RTOs
Coal Gas Oil/Misc Nuclear Renewables/Other
25.0%
37.9%0.4%
30.3%
6.4%
SEEM
Coal Gas Oil/Misc Nuclear Renewables/Other
39% Nuclear & Renewables/
Other
Source: EIA Forms 860, 923
37% Nuclear & Renewables/
Other
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2019 Generation Mix by Region
Percent Nuclear & Renewables/Other
CAL ISO NY ISO NE ISO PJM SPP SEEM ERCOT MISO0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%61% 60% 45% 40% 39% 37% 32% 29%
Perc
ent C
ontr
ibut
ion
to T
otal
Gen
erat
ion
Coal Gas Oil/Misc Nuclear Renewables/Other
Source: EIA Forms 860, 923
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Price Analysis
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2019 Average Retail Prices
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2019 Average Residential Prices
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2019 Average Commercial Prices
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2019 Average Industrial Prices
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Appendix
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Data Source Descriptions
• Customer Satisfaction and Reliability– All utilities that participate in J.D. Power in the relevant market (J.D. Power participation thresholds
require 100,000 residential customers and 40,000 business customers)– Using last full year of data (2020)
• Price– All retail electricity sales to ultimate customers– SEEM: all companies that have announced interest in potentially participating in SEEM– 2019 data (complete 2020 EIA data will not be available until Q4 2021)– The data produced herein uses EIA data for each of the individual utilities within the SEEM footprint
using EIA data. In the Answer filed on March 30, 2021 in Docket No. ER21-1111, the members of SEEM provided data that corresponded to the state level data set presented by one of the interveners.
• Generation Mix– All generating units in the respective RTO market as flagged by EIA– SEEM: all units tied to potential SEEM participants' balancing authorities, according to EIA– 2019 data (complete 2020 EIA data will not be available until Q4 2021)
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Expected SEEM Members Included in Analyses
Associated Electric Cooperative, Dalton Utilities, Dominion Energy South Carolina, Duke Energy Carolinas, Duke Energy Progress, Georgia System Operations Corporation, Georgia Transmission Corporation, LG&E and KU Energy, MEAG Power, NCEMC, NCMPA1, Oglethorpe Power Corp., PowerSouth, Santee Cooper, Southern Company and TVA