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9/16/2020
1
ESMEC-ET Electric Supply Portfolio Report September 17, 2020
Portfolio Performance Snapshot
Overview:• FY20 electric supply cost of $7.7 million/155,662 MWhs for approximately 840 accounts located behind Delmarva Power for 28 separate local
government entities. Peak load capacity of 27.9 MW as of June 1, 2020 (ESMEC-ET members actively manage peak capacity).
• ESMEC-ET utilizes a managed portfolio approach with a dedicated PJM subaccount for its energy procurement program.
Portfolio Results, Forecast, Billing Rates & Working Capital Balances:
Other Noteworthy:
• Report on COVID’s impact on portfolio usage provided on slide 6.
• Recommendation to decrease the weighted average billing rate from $.056 to $.054 effective with November 2020 billing month to reduce the excess working capital balance towards the $1.0 million target (refer to slide 20).
• FY2020 cost avoidance (vs. DPL SOS rates) was $2.5 million when comparing billed costs and $2.7 million when comparing actual portfolio costs. From inception to date cost avoidance is $18.4 million when comparing billed costs and $21.0 million when comparing actual portfolio costs. Updated rate comparisons provide on slide 25. 2
FY 2021 FY 2022 FY22 o/(u)
Cost o/(u) Budget Forecast Forecast FY21 Fcst
Portfolio Cost ($/MWh) $47.29 ($13.33) $53.00 $54.50 $1.50
W/A Billing Rate ($/MWh) $50.68 ($13.99) $53.78 $54.00 $0.22
End of Period Working Capital Balance ($) $1,394,858 $1,463,018 $952,343 ($510,676) (Target = $1.0 million)
FY 21 YTD (thru Aug 31)
9/16/2020
2
Portfolio Results
3
4
$35
$40
$45
$50
$55
$60
$65
$35
$40
$45
$50
$55
$60
$65
$/MWh
ESMEC-ET Electric Supply Portfolio Cost - FY 2021
Monthly Actual Prior Year YTD Actual Portfolio Budget Billed Rate
All Unit costs based on PJM volumes except billed rate
9/16/2020
3
5
Total Supply Cost, Cumulative FY 2021ESMEC-ETUpdated: 9/14/20
Actual Actual
Jul-20 Aug-20 Cumulative
PJM Load Charges - WGL/ESMEC-ETActual PJM Volume, MWh (before 60-D Settlement) 14,382 13,499 27,881
Energy - DA & RT $150,818 $85,566 $236,384
Capacity 150,392 150,247 300,638
Transmission 70,367 70,336 140,702
Ancillary Charges 21,387 18,802 40,189
ARR/FTR & Marginal Loss (15,114) (14,254) (29,367)
Reconciliation (35,175) (25,296) (60,471)
PJM Electric Cost 342,675 285,401 628,076
Fixed Rate Block Cost 300,296 294,336 594,632
Other ChargesWGL Service Fee 9,061 8,504 17,565
WGL Cost to Carry 0 0 0
Renew able (RPS Requirement) 35,342 40,133 75,475
Other Fees (MD PSC) 1,481 1,354 2,834
Subtotal 45,884 49,991 95,874
Total Supply Cost $688,854 $629,728 $1,318,582
Unit Costs, $/MWh
Energy $28.92 $26.27 $27.64
Capacity $10.46 $11.13 $10.78
Transmission 4.89 5.21 5.05
Ancillary Charges & PJM Credits 0.44 0.34 0.39
Renew able (RPS Requirement) 2.46 2.97 2.71
Other 0.73 0.73 0.73
Total Supply Cost $47.90 $46.65 $47.29
Expected Unit Price $61.30 $59.90 $60.62
Budget Variance ($13.40) ($13.25) ($13.33)
Hedge Settlement $33,131 $92,141 $125,272
Unit Cost, $/MWh $2.30 $6.83 $4.49
6
ESMEC-ET
Monthly Usage Monitor
MWhs
On Off Total On Off Total On Off Total On Off Total On Off Total
April 3,968 4,224 8,193 5,908 5,022 10,931 -33% -16% -25% 6,608 4,449 11,057 -40% -5% -26%
May 3,563 4,337 7,900 5,070 5,222 10,291 -30% -17% -23% 6,835 5,403 12,239 -48% -20% -35%
Jun 5,786 4,635 10,421 6,443 5,290 11,733 -10% -12% -11% 7,322 4,714 12,035 -21% -2% -13%
Jul 7,828 6,554 14,382 7,574 5,686 13,260 3% 15% 8%
Aug 7,073 6,426 13,499 7,405 5,796 13,200 -4% 11% 2%
Final 2020 Prelim 2020 Actual 2019 2020 Final/Prelim o/(u) 2019 %Final o/(u) Prelim %
-26%
-35%
-13%
8%
2%
-40%
-35%
-30%
-25%
-20%
-15%
-10%
-5%
0%
5%
10%
15%
April May June Jul - Prelim Aug - Prelim
Monthly Usage Monitor 2020 v 2019 - ESMEC-ET
MWh Usage 2020 v 2019
9/16/2020
4
Portfolio Hedge Strategy
7
8
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
MWhESMEC-ET - Current Electric Hedge Status, 9/17/2020
Total Load Max Hedge Purchased Min Hedge
Based on FY2020 Gross Annual MWhs Adjusted for COVID
Peak Off Total
FY 2021 70% 71% 71%
FY 2022 70% 71% 71%
FY 2023 23% 35% 29%
Actual Hedge %'s
9/16/2020
5
9
ESMEC-ET
Open Blocks Purchased and Scheduled Purchases
FY 2021 - FY 2023
Block #Quantity
(MW)
Type/
DA
Period
Start
Period
End
Purchase or
Target
Purchase
Date
Total
Contract
Quantity
(MWh)
PJM West
Hub
Basis: PJM
West Hub to
DPL Zone
Delivered to
DPL Zone
Current Forward
Price Percentile
over last 3 Yrs
Total Contract
Cost
31 5 ATC Jul-20 Jun-21 5/23/17 43,800 $31.45 1,377,510$
32 5 Peak Jul-20 Jun-21 5/23/17 20,480 $37.25 762,880$
33 5 ATC Jul-20 Jun-22 5/22/18 87,600 $30.85 2,702,460$
34 5 Peak Jul-21 Jun-22 9/24/18 20,400 $35.28 719,712$
35 5 ATC Jul-21 Jun-22 3/28/19 43,800 $31.75 1,390,650$
36 5 ATC Jul-22 Jun-23 3/28/19 43,800 $31.42 1,376,196$
37 5 Peak Jul-22 Jun-23 11/30/20 20,320 $32.05 ($0.10) $31.95 26.6% 649,224$
Avg ATC Block Price $31.37
Avg Peak Block Price $36.27
Total Open Block Purchases 259,880 $32.05 8,329,408$
Total Scheduled Block Purchases 20,320 $31.95 649,224$
Total Open & Scheduled Block Purchases 280,200 $32.04 8,978,632$
Pricing based on 9/14/20 Market Close
Block Prices $/MWh
10
9/16/2020
6
11
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
MWh
ESMEC-ET Pro forma Electric Hedge Status, 12/31/2020
Total Load Max Hedge Purchased Scheduled Min Hedge
Based on FY 2020 Gross Annual MWhs Adjusted for COVID
Peak Off Total
FY 2021 70% 71% 71%
FY 2022 70% 71% 71%
FY 2023 47% 35% 42%
Pro Forma Hedge %'s
12
9/16/2020
7
13
14
$15
$20
$25
$30
$35
$40
$45
$50
$55
$60
$65
$70
$75
$80
$85
$90
$95
$100
$/MWhATC Average LMP-RT PJM WESTERN HUB, 2013 - 8/2020
WESTERN HUB Rolling 12 Mo Avg
Jan 14 - $123.88
9/16/2020
8
15
-$15
-$10
-$5
$0
$5
$10
$15
$20
$25
$30
$/MWhATC Average LMP-RT PJM DPL Zone Basis, 2013 - 8/2020
Avg-Monthly Rolling 12 Mo Avg
16
2013 2014 2015 2016 2017 2018 2019 2020
Jan 37.79$ 147.90$ 47.07$ 34.10$ 34.60$ 94.95$ 34.94$ 21.56$
Feb 35.83$ 83.41$ 94.35$ 25.30$ 28.79$ 26.16$ 26.66$ 18.67$
Mar 40.14$ 84.33$ 43.65$ 24.47$ 29.85$ 27.07$ 27.74$ 16.61$
Apr 37.93$ 41.43$ 26.12$ 21.35$ 27.41$ 34.17$ 25.11$ 16.54$
May 38.10$ 37.30$ 35.57$ 22.75$ 27.87$ 28.01$ 21.07$ 14.26$
Jun 41.14$ 46.63$ 26.56$ 24.69$ 25.44$ 27.86$ 21.70$ 16.63$
Jul 52.04$ 43.66$ 27.49$ 32.71$ 30.03$ 33.00$ 36.73$ 28.77$
Aug 36.29$ 30.65$ 27.40$ 35.14$ 25.10$ 39.33$ 21.95$ 21.34$
Sep 39.67$ 34.79$ 37.71$ 24.10$ 23.25$ 32.44$ 21.65$ 35.84$
Oct 35.87$ 39.09$ 23.84$ 19.05$ 28.71$ 38.67$ 18.06$
Nov 35.57$ 49.24$ 28.80$ 22.87$ 35.31$ 42.52$ 23.13$
Dec 40.66$ 32.44$ 27.68$ 32.70$ 50.97$ 40.66$ 23.03$
Average 39.25$ 55.91$ 37.19$ 26.60$ 30.61$ 38.74$ 25.15$ 21.14$
Average Monthly RT ATC LMP - DPL
9/16/2020
9
Billing Rates and Working Capital Position
18
ESMEC-ET Electric Supply Portfolio
Budget, Actual and Billing Rates
($ kWh)
FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022
Portfolio budget rate $0.0700 $0.0690 $0.0620 $0.0560 $0.0605 $0.0545
Portfolio actual/forecast cost $0.0599 $0.0579 $0.0545 $0.0494 $0.0530 $0.0545
Actual o/(u) budget ($0.0101) ($0.0111) ($0.0075) ($0.0067) ($0.0075) $0.0000
Approximate Weighted Average Billing Rates - Metered Basis ($/kWh)*:
Billing months:
July $0.0450
Aug - Oct $0.0560
Jul - Oct $0.0654 $0.0654 $0.0570 $0.0540
Nov - Feb $0.0604
Nov - Mar $0.0654 $0.0570 $0.0540 $0.0540
Mar - Jun $0.0604
Apr - Jun $0.0654 $0.0450 $0.0540 $0.0540
W/A billing rate $0.0713 $0.0654 $0.0620 $0.0531 $0.0538 $0.0540
Portfolio budget rate (metered volumes) $0.0740 $0.0725 $0.0654 $0.0590 $0.0647 $0.0583
* Includes primary (GSP), secondary (LGS, SGS) and outdoor lighting (OL/ORL) rate schedules
Forecast rates in blue
PJM Volumes
9/16/2020
10
19
$0.045
$0.055
$0.065
$0.075
$0.085
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
Month End Balance Actual Cost ($/kWh) Billing Rate($/kWh)
ESMEC-ET Electric Supply PortfolioMonth End Working Capital Balance (WCB) Held with Supplier
All unit costs based on PJM volumes except billed rate $/kWhWCB ($)
$1,000,000
Target
20
ESMEC-ET
Working Capital Balance ForecastAs of 9/17/20
Target W/C Balance $1,000,000
End of Month
Estimated Portfolio Working
PJM Gross Billed Cost ($/KWh) Incremental Capital
(MWhs) MWhs Gross MWhs Base Rate Rate Billing Rate Cash Out Cash In Adjustment Balance
Jun-20 11,733 10,407 $0.04879 $0.04500 $0.00000 $0.04500 $1,960,789
Jul-20 14,382 12,340 $0.04790 $0.04500 $0.00000 $0.04500 $648,440 $404,432 $1,716,781
Aug-20 13,499 13,174 $0.04665 $0.05600 $0.00000 $0.05600 $580,979 $259,056 $1,394,858
Sep-20 14,665 13,308 $0.05262 $0.05600 $0.00000 $0.05600 $700,681 $737,734 $296,227 $1,728,138
Oct-20 12,809 12,982 $0.05386 $0.05600 $0.00000 $0.05600 $730,756 $745,223 $1,742,605
Nov-20 12,266 11,848 $0.05520 $0.05400 $0.00000 $0.05400 $683,492 $726,968 $1,786,082
Dec-20 12,775 11,832 $0.05590 $0.05400 $0.00000 $0.05400 $695,607 $639,795 $1,730,271
Jan-21 15,138 13,189 $0.05806 $0.05400 $0.00000 $0.05400 $796,502 $638,927 $1,572,696
Feb-21 12,239 12,935 $0.05175 $0.05400 $0.00000 $0.05400 $756,100 $712,189 $1,528,785
Mar-21 12,751 11,807 $0.05332 $0.05400 $0.00000 $0.05400 $656,569 $698,506 $1,570,721
Apr-21 11,414 11,418 $0.05573 $0.05400 $0.00000 $0.05400 $657,979 $637,605 $1,550,347
May-21 12,873 11,475 $0.05256 $0.05400 $0.00000 $0.05400 $656,365 $616,563 $1,510,545
Jun-21 12,430 11,956 $0.05292 $0.05400 $0.00000 $0.05400 $667,200 $619,673 $1,463,018
Jul-21 13,086 12,056 $0.05491 $0.05400 $0.00000 $0.05400 $688,183 $645,598 $1,420,433
Aug-21 13,326 12,479 $0.05367 $0.05400 $0.00000 $0.05400 $716,869 $651,029 $1,354,593
Sep-21 13,721 12,779 $0.05233 $0.05400 $0.00000 $0.05400 $716,586 $673,879 $1,311,886
Oct-21 12,407 12,345 $0.05501 $0.05400 $0.00000 $0.05400 $700,264 $690,084 $1,301,706
Nov-21 12,367 11,706 $0.05550 $0.05400 $0.00000 $0.05400 $684,472 $666,637 $1,283,872
Dec-21 13,521 12,232 $0.05582 $0.05400 $0.00000 $0.05400 $720,561 $632,099 $1,195,410
Jan-22 13,908 12,960 $0.05945 $0.05400 $0.00000 $0.05400 $790,730 $660,539 $1,065,219
Feb-22 12,294 12,381 $0.05213 $0.05400 $0.00000 $0.05400 $733,832 $699,858 $1,031,245
Mar-22 13,173 12,033 $0.05238 $0.05400 $0.00000 $0.05400 $665,441 $668,554 $1,034,358
Apr-22 10,949 11,398 $0.05659 $0.05400 $0.00000 $0.05400 $654,792 $649,801 $1,029,367
May-22 12,376 11,021 $0.05341 $0.05400 $0.00000 $0.05400 $640,284 $615,483 $1,004,567
Jun-22 12,035 11,535 $0.05266 $0.05400 $0.00000 $0.05400 $647,382 $595,158 $952,343
FY 21 157,240 148,263 $0.05300 $0.05378 $8,230,669 $7,436,672
FY 22 153,163 144,926 $0.05450 $0.05400 $8,359,396 $7,848,720
Billing Rates ($/KWh)
9/16/2020
11
21
ESMEC-ET Electric Supply Portfolio
Budget Billing Rates ($kWh)
FY 2021
Actual Forecast
FY 2020 FY 2021 $/kWh %
DPL Billing Rate Schedule
LGS/SGS (Secondary) $0.0537 $0.0542 $0.0005 1.0%
GSP (Primary) $0.0516 $0.0527 $0.0011 2.2%
Outdoor Lights (OL/ORL) $0.0365 $0.0333 ($0.0032) -8.9%
Weighted Average
$/kWh Billing Rate $0.0531 $0.0537 $0.0005 1.0%
FY21 o/(u) FY20
22
ESMEC-ET Electric Supply Portfolio
Total Supply Cost Billing Rates by Rate Schedule ($/kWh)
Fiscal Year 2021 (V.6)
Billing Period Summer Summer Winter Spring
Status Actual Actual Preliminary Preliminary
Supplier Billing Months Jun 2020 - July 2020 - Nov 2020 - Mar 2021 -
Jul 2020 Oct 2020 Feb 2021 Jun 2021
Meter Read Beginning: Jun 2020 Jun 2020 Oct 2020 Feb 2021
Meter Read Ending: Oct 2020 Oct 2020 Feb 2021 Jun 2021
FY 2021
W/A Billing
Delmarva Power Rate Schedule Rate
Secondary (SGS / SGS SH / LGS) $0.0455 $0.0565 $0.0545 $0.0545 $0.0542
Primary (GSP) $0.0442 $0.0550 $0.0530 $0.0530 $0.0527
Outdoor Lights (OL / ORL) $0.0245 $0.0355 $0.0335 $0.0335 $0.0333
Weighted Average Rate $0.0450 $0.0559 $0.0540 $0.0539 $0.0537
Portfolio Budget Rate (Metered Volumes) $0.0647
9/16/2020
12
Appendix
24
($700,000)
($600,000)
($500,000)
($400,000)
($300,000)
($200,000)
($100,000)
$0
$100,000
$200,000
Monthly Cumulative
ESMEC Electric Mark to Market, 9/14/2020
9/16/2020
13
25
$0.050
$0.055
$0.060
$0.065
$0.070
$0.075
$0.080
$0.085
$0.090
$0.095
$0.100
$0.105
$0.110
$0.115
$0.120
FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20
Portfolio Cost (Metered Basis)
Weighted Average Billing Rate
Weighted Average DPL Standard Offer Service Rate
ESMEC-ET
Electric Supply Rates ($/kWh)$/KWh$/k
26
ESMEC-ET Electric Supply Portfolio
Capacity and Transmission Requirement Summary (MW)
Incr/(Decr) in Incr/(Decr) in
19/20 Year 20/21 Year
Cost ($) Cost ($)
18/19 19/20 20/21 MW % MW %
Unforced Capacity Obligation (UCAP) 26.7 35.0 27.9 8.3 31.0% (7.0) -20.2% $348,756 ($448,324)
Incr/(Decr) in Incr/(Decr) in
Cal Year 2019 Cal Year 2020
NITS Cost ($) NITS Cost ($)
2018 2019 2020 MW % MW %
Transmission Capacity 24.4 26.4 23.3 2.0 8.2% (3.1) -11.7% $87,947 ($117,546)
(1) PJM Year June 1 - May 31
UCAP = Peak Load Contribution (PLC) grossed-up for PJM system adjustments
Capacity tags as of 5/31 and 6/1 to provide total same account comparison
Transmission tags as of 12/31 and 1/1 to provide total same account comparison
NITS = Network Integrated Transmission Services
2020 o/(u) 20192019 o/(u) 2018Calendar Year
19/20 o/(u) 18/19PJM Year (1) 20/21 o/(u) 19/20
Impact of Incr/(decr) in UCAP MW
Impact of Inc/(decr) in Trans Cap MW
9/16/2020
14
27
$15.00
$197.16
$150.53
$196.54 $187.37
$116.15
$171.24
$248.30
$145.38
$166.54 $163.21 $153.74
$219.29
$115.58
$174.32
$163.08
$0
$50
$100
$150
$200
$250
$300
06/07- PreRPM
07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22
$/MWDPJM - DPL Capacity Prices
Final Zonal Net Load Prices through 20/21
28
ESMEC-ET
Maryland Renewable Portfolio Requirements
Based on Chapters 583, 556 and 653 enacted May 22, 2012*
Report as of:9/1/20 Estimates in Blue
Required
%*
REC
Quantity
Requirement
REC
Quantity
Purchased
to Date
%
Requirement
Purchased
to Date
Purchase
Cost
($/MWh)
($)
Purchased
Cost to Date
Actual or
Estimated
Annual Cost
$/MWh
Cost per
Portfolio
Usage
Required
%*
REC Quantity
Requirement
REC
Quantity
Purchased
to Date
%
Requirement
Purchased to
Date
Purchase
Cost
($/MWh)
($)
Purchased
Cost to Date
Actual or
Estimated
Annual Cost
$/MWh
Cost per
Portfolio
Usage
2012 173,040 6.40% 11,075 11,075 100% 4.15$ 45,959$ 45,959$ 0.27$ 0.1000% 173 173 100% 170.00$ 29,417$ 29,417$ 0.17$
2013 171,402 8.00% 13,712 13,712 100% 15.67$ 214,870$ 214,870$ 1.25$ 0.2000% 343 343 100% 170.00$ 58,277$ 58,277$ 0.34$
2014 165,359 10.00% 16,536 16,536 100% 16.12$ 266,543$ 266,543$ 1.61$ 0.3000% 496 496 100% 170.00$ 84,333$ 84,333$ 0.51$
2015 166,830 10.10% 16,850 16,850 100% 15.57$ 262,384$ 262,384$ 1.57$ 0.4000% 667 667 100% 169.73$ 113,264$ 113,264$ 0.68$
2016 160,411 12.15% 19,490 19,490 100% 11.31$ 220,500$ 220,500$ 1.37$ 0.5498% 882 882 100% 106.77$ 94,165$ 94,165$ 0.59$
2017 161,906 12.15% 19,672 19,672 100% 5.40$ 106,168$ 106,168$ 0.66$ 0.9500% 1,538 1,538 100% 10.68$ 16,427$ 16,427$ 0.10$
2018 169,732 14.40% 24,441 24,441 100% 6.44$ 157,370$ 157,370$ 0.93$ 1.4000% 2,376 2,376 100% 12.31$ 29,251$ 29,251$ 0.17$
2019 158,250 15.65% 24,766 24,766 100% 7.22$ 178,880$ 178,880$ 1.13$ 1.7500% 2,769 2,769 100% 66.85$ 185,143$ 185,143$ 1.17$
2020 144,418 16.00% 23,107 13,118 57% 9.91$ 130,054$ 229,089$ 1.59$ 2.0000% 2,888 1,640 57% 79.45$ 130,308$ 229,477$ 1.59$
2021 158,250 16.70% 26,428 - -$ 2.0000% 3,165 -$
2022 158,250 18.00% 28,485 - -$ 2.0000% 3,165 -$
2023 158,250 18.00% 28,485 - -$ 2.0000% 3,165 -$
Required
%
REC
Quantity
Requirement
REC
Quantity
Purchased
to Date
%
Requirement
Purchased
to Date
Purchase
Cost
($/MWh)
($)
Purchased
Cost to Date
Actual or
Estimated
Annual Cost
$/MWh
Cost per
Portfolio
Usage
Total Actual
or Estimated
Annual Cost
($)
$/MWh
Cost per
Portfolio
Usage
2012 173,040 2.5% 4,326 4,326 100% 0.69$ 2,985$ 2,985$ 0.02$ 78,361$ 0.45$
2013 171,402 2.5% 4,285 4,285 100% 3.35$ 14,355$ 14,355$ 0.08$ 287,501$ 1.68$
2014 165,359 2.5% 4,134 4,134 100% 7.33$ 30,283$ 30,283$ 0.18$ 381,159$ 2.31$
2015 166,830 2.5% 4,171 4,171 100% 2.49$ 10,381$ 10,381$ 0.06$ 386,028$ 2.31$
2016 160,411 2.5% 4,010 4,010 100% 1.19$ 4,788$ 4,788$ 0.03$ 319,453$ 1.99$
2017 161,906 2.5% 4,048 4,048 100% 0.95$ 3,865$ 3,865$ 0.02$ 126,461$ 0.78$
2018 169,732 2.5% 4,243 4,243 100% 0.75$ 3,182$ 3,182$ 0.02$ 189,804$ 1.12$
2019 364,023$ 2.30$
2020 458,566$ 3.18$
2021 -$ -$
2022 -$ -$
2023 -$ -$
* Above percentage requirements grandfathered under September 2016 WGLES Supply Contract which with renewal options extends thru November 2026.
Calendar
Year
Compliance
Portfolio
Usage
(MWh)
Tier I Solar - SREC
Calendar
Year
Compliance
Portfolio
Usage
(MWh)
Tier II All Tiers
9/16/2020
15
Noel Chesser
Principal Energy Advisor
443-573-1528
Eric Meyer
Senior Market Manager
443-743-1987
