2022/2023 RFP & CPCN Process

Coming out of the 2021 Integrated Resource Plan (IRP), Duke Energy Indiana (DEI) conducted an all-sources Request for Proposals (“RFP”) process.  During Q1 2022, DEI released two separate but related solicitations that considers both Intermittent (renewables) and Non-Intermittent (thermal and stand-alone storage) resources.  The process was designed to secure generation capacity resources outlined in its preferred portfolio developed as part of the 2021 IRP.    

DEI engaged an independent third-party administrator, Charles River Associates (CRA), to facilitate the RFP process and ensure it is conducted in a fair and unbiased manner.  Proposals for intermittent generation were due in mid-April and for proposals for non-intermittent generation in early May.  CRA independently evaluated the proposals and submitted the results to DEI in July.

2022 RFP and IRP Refresh Stakeholder Engagement

As a part of the RFP bids evaluation process, DEI conducted several Stakeholder Informational Sessions throughout Q4 2022.  DEI shared with Stakeholders key evaluation inputs that were used to evaluate RFP bids and resource mix. Due to changes since the 2021 IRP submittal, most notably MISO’s seasonal accreditation construct and the Inflation Reduction Act, among others, DEI provided an updated IRP analysis as part of expected Certificate of Public Convenience and Necessity (CPCN) filings.

Due to the many changes to key IRP inputs, DEI has also engaged CRA specifically for this process to ensure all inputs and updates were made reasonably and without biases.  

Workshop 1 (October 21)
Introduction; Key Changes; RFP Results; Load forecasting; Commodity Prices; Technology Costs
Workshop 1 Q&A

Workshop 2 (December 1)
Market Changes in MISO; Power Prices; Initial Modeling Outcomes
Workshop 2 Q&A

Workshop 3 (February 27, 2023)
Decision Criteria; Updated Preferred Portfolio, RFP Bid Execution Plan
Workshop 3 Q&A

2023 DEI Fall Modeling Informing Future RFP and CPCN Filings

Following the February 2023 Workshop #3, DEI expected to file a CPCN for new combined cycle (CC) generation in 2nd Quarter of 2023 that was concurrent with the retirement of the Cayuga coal station.  Prior to filing the CPCN, the Environmental Protection Agency (EPA) released proposed regulations to limit greenhouse gas emissions from most coal and natural gas-fired powered plants. The proposed standards required the Company to re-evaluate the plans for the new CC.

Throughout the Fall of 2023 DEI engaged with technical stakeholders to review inputs for this modeling effort, and the results of the analysis were presented to the broader stakeholder community in December.  The results of the analysis confirmed that DEI should continue to maintain the option for adding natural gas generation at the Cayuga station, and supports the potential filing of CPCNs in the first-half of 2024.  Additionally, the analysis supported the Company’s need to issue an RFP targeting both non-intermittent and intermittent resources through 2032.  

Fall Modeling Informing Future RFP and CPCN Filings (December 13, 2023)
Fall 2023 DEI Modeling Update Presentation
Fall 2023 DEI Modeling Update Q&A

CPCN Overview

Once RFP bids are selected and terms and conditions have been negotiated, DEI will file a request for a CPCN with the Indiana Utility Regulatory Commission (IURC). A CPCN is required by Indiana law to build or buy new generation.  DEI will submit testimony describing its proposed new generation options and the associated costs for the IURC to review and consider.  The CPCN process generally takes between 6-12 months.