How To Sign North Carolina Banking Living Will

How to industry sign banking north carolina living will

good morning everyone it's right at 11 a.m. hopefully everybody can hear me this morning I'd like to welcome you to our webinar titled mega trends in the energy industry in implications for North Carolina thanks for joining us today my name is ceci Maur and I'm an energy engineer and consultant with advanced energy I've worked in the energy and clean tech industry for 20 years and I'm happy to be your host and facilitator for today's webinar before we dive in I'd like to cover a few housekeeping items first if at any point you'd like to interact with me or our guest speaker please submit your questions or comments in the Q&A box in the upper right-hand corner let us know if you're having having any issues with audio or video we'll try to resolve the issue we will respond to as many of your questions about the content as we can at the end during our question-and-answer session this webinar is being recorded and will be available on the NC smart grid org website we will also send out a follow-up email with the link to the webinar recording finally throughout the presentation we will launch poll questions to gather your input so keep an eye out for those and share your feedback this is the first of three webinars that we are hosting as part of the exploring NC smart grid project the goal of this ongoing webinar series is to share information on how grid modernization is influencing North Carolina's future our next webinar is coming up on June 24th covering medium and heavy-duty electric vehicles the invitation will be coming out soon if you missed one of our previous webinars from the past three years you can visit our project website NC smart grid org to check out the recording there are some other valuable resources such as case studies articles and videos to help inform businesses and decision-makers in our state today ok short introduction and then I will turn the presentation over to chip wood chip is a director in guide houses energy sustainability and infrastructure practice drawing on more than 30 years of utility experience chip leads guide houses engagement with strategic utility clients in the southeast he also advises senior leaders on business growth opportunities associated with the evolving energy landscape prior to joining guide house tip served as vice president of Duke Energy where he led various organizations focused on strategy customer programs government relations and large business customers thank you for joining us today chip again throughout the presentation if you have questions please type them in the Q&A box we do not plan to address questions along the way but we will leave time at the end now that we know a little about our speaker we would like to know a little bit more about who's on the line today let's launch our first poll so that we can learn a little more about you the question is in which sector do you work our choices are utility business city county or state government Utilities Commission or public staff environmental or advocacy group or other alright looks like we've got a lot of responses in already so I think we'll go ahead and end this poll and it looks like the majority of the people on the line are from the utility or with a business and we've got the other sectors represented pretty well so thanks for sharing that with us today it will help us get a better sense of your background where you're coming from and help me and chip direct some of our talking points and answers to the questions the industry often refers to the 3ds decentralization digitalization and decarbonization to describe the influences that have modernized the electric grid and will continue through the next decade decentralization refers to the rapid deployment of distributed generation and at the micro grid level this is driven by declining costs of wind solar and storage in North Carolina this is mostly utility scale solar but in many other states it is wind and residential solar another key influence is digitalization digital meters and the ability for two-way communications have increased data and information to provide real-time decision-making we also have the evolution of consumer products in the home that are smart digitalization helps enable more efficient grid operations and provides flexibility decarbonisation describes the transition away from coal and the large-scale integration of renewable and other emerging technologies in the last two years we've seen numerous utility companies and states set decarbonisation goals including both investor owned utilities in North Carolina Dominion energy and Duke Energy the state of North Carolina has also evaluated decarbonisation goals one part of governor Cooper's executive order 80 was to develop a clean energy plan focused on the electricity sector for North Carolina this plan outlines potential next step over the next decade including options for decarbonisation another key influence mentioned in governor Cooper's energy plan is economic development North Carolina has experienced rapid population growth in the last 20 years this growth is estimated to be an increase of over 28 percent from 2000 to 2008 teen in addition in this time we've had more jobs moved from manufacturing Ford's a more service-oriented industry this popular an expansion specifically in urban areas changes the electricity usage pattern today we'll explore content about the future of the electric grid over the next ten to thirty years I thought it was helpful to look back at history a little bit to provide context for the mega trends as we think about evolving business models there are some parallels previous transitions in the electric industry when Duke Energy was founded in the 1900s one primary driver was to provide hydroelectricity to be able to manufacture goods and have economic growth outside of Agriculture today rapid development and changing nature of Industry is one of the influences we face including electrification in homes and businesses the company that became Dominion energy had the goal to provide customers with light and operate streetwear railways meaning electric transportation today the industry is addressing the transition to electrify both light duty and medium to heavy duty vehicles including mass transit the rural electrification Act of 1936 enabled the installation of electrical distribution systems to serve isolated rural areas of the United States it was part of the New Deal and was enacted to assist with high unemployment today we're expanding broadband service and we are making major improvements to the grid acts access to reliable Internet service has become even more critical in the last two months while there were discussions about investing in Grid infrastructure before the Cova 19 pandemic the idea of a green new deal has become one potential way to stimulate the economy and address the higher unemployment we're currently experiencing and that may be sustained last I'm really proud to share that advanced energy just celebrated our 40th birthday in April when advanced energy was founded our buildings were adding air conditioning and there was heavy growth of electric demand we had just the energy crisis an oil embargo of the 70s a nuclear plant construction was proving to be more expensive than originally projected today we still have rapid population growth we continue to add appliances and homes although they have smart features allowing them to be flexible loads North Carolina is a leader in new low-carbon generation sources such as utility scale solar we are still working to moderate the growth of an electric power demand develop more efficient uses of energy resources and encourage energy efficient economic development again we're focused on topics today that are trends over the last the next 10 to 30 years we were planning for this topic on this webinar before the kovat 19 pandemic there is still uncertainty about the economic impact of the pandemic although most information projects the impact over the next year or two I do want to mention some of the effects so far of the pandemic on the electricity industry electric utilities our frontline personnel and natural disasters however their emergency plans were updated for this pandemic they have focused on essential personnel and services including redefining how to do these essential job maintenance and refueling for generation plants have been deferred oil and gas prices are at historic lows which has accelerated coal plant shutdowns in some areas according to a report from the International Energy Agency the coated 19 pandemic could lead to nearly an eight percent drop in global greenhouse gas emissions in 2020 estimates vary widely based on reopening of economies and much of this impact is due to reduce transportation there's been an overall decrease in electricity usage driven by large declines in the commercial industrial sector while residential consumption is up because of remote working this alone that does not make up for the losses the drop in load is regionally specific also been a cessation of disconnecting customers who are behind on payment nationwide there are projected billions in load loss in unpaid bills through 2022 there's also a temporary interruption of customer behind the meter programs for both energy efficiency and distributed energy resources the delay of rate cases and legislative sessions may postpone some new state policies for clean energy commitments there will also likely be some long-term effects on the supply chain there may be shortages of some equipment due to manufacturing shutdowns and in some cases oversupply of equipment that could cause prices to drop all these potential impacts just highlight the need for flexibility and resiliency in the electric grid moving forward history shows we can evolve through these challenges to stimulate new investments in business models I'd like to launch one more poll question before I turn the presentation over to our guest speaker we are interested to know how you think the pandemic may affect you long term the question is I currently expect the following long term changes to my energy consumption pattern from the pandemic options are working from home more frequently plan to install residential solar or battery backup purchase a backup generator may not buy an electric vehicle as soon as planned will buy an electric vehicle earlier than planned some other change that we haven't thought of or no long term chain well we've still got some responses coming in but it does look like the overwhelming majority of people think they're going to be working from home more frequently I agree with that assessment I think that will be part of my daily routine to moving forward at this point I would like to turn the presentation over to our guest speaker chip chip has some great insights about the electric industry globally and locally and I'm super excited to have him expand on the topics that introduce today to take it away thanks Cece hope everybody's doing well and staying safe this morning what a touch on really the global trends that we're seeing in the industry and then we'll do a deeper dive into those you know really by customers and markets and technology and policy and then we'll talk a little bit about the implications that we're seeing - no no like you know customers and utilities you know really across across the country but it got housed we believe that the energy sector is really in the midst of a major global change or transformation that's really going to cause disruption across the whole energy value chain and then it's going to broadly affect you know effect of a broad number of stakeholders if you look back over the past decade you would have talked about you know the characteristics of the industry would have been we know we're seeing flat or decreasing demand largely driven by energy efficiency and LED lighting and you know those types of those types of things and we were talking about you know new this new emergence of distributed solar and rooftop solar and and renewables and and how we're dealing with those and we would have talked about well we've got this aging infrastructure how do we how do we maintain that and do it in a cost-effective way that it's limiting the impact back to you know back to ratepayers or customers there as well but what we're doing is we're really seeing a shift of all three of those trends over the next decade and they're really been driven by you know three potent factors it we know first this is changing economics and customer preferences the second is really around technology innovation and then the third is really around ambitious policies and and regulation goals so you know we see those really coming you know those things coming together and they impact all three of these you know previous trends and and really changing the way the industry will look in that in the next decade and and first of those is we really see us moving from a period of kind of flatter decreasing demand to one in which we would see increasing and rapidly increasing demand in certain parts in certain geographies and you know what's really driving that it's it's the cost of you know proven electrification technologies are dropping for instance you can think about electric vehicles or probably the prime example there and and then the second thing is you're starting to really see the electrification is the biggest opportunity to reduce environmental impacts if you think about where we were maybe in the past decade you know people you talk about hey we're gonna you know clean up the air and then and how are we going to do that we're gonna switch to cleaner fuels like natural gas and that we think that's the pathway to - you know sustainability and and emissions reductions well today you know the goals for round decarbonisation and expectations have significantly increased and and the shift is a mindset of electrification is the best way to to decarbonize and so you'll start you're starting to see now that in electrification there because of the mix of the generation resources that looks significantly different today than it did a decade ago so what you're starting to see is local governments and and and other groups really starting to attack natural gas and you know put moratoriums try to put moratoriums on new gas connections and really a push towards electrification as the way to decarbonize now we believe it got house that natural gas plays a really important role in the transition to decarbonisation but increasingly you know over the long term electrification is is going to be the the pathway to achieve aggressive goals so we're working with a number of utilities and stake holders today to say okay if you step back and you look at energy mix across the you know the whole economy you know where can you accelerate adoption of either electric space heating or electric vehicles or energy efficiency or you know all those resources and how do you change the mix of how we use energy today to get the lowest carbon footprint and you know increasingly that's to drive more and more towards the legislation from a technology standpoint if you you know over the past decade utilities we're really starting to think about ok how do I manage and minimize the impact of you know renewables and de ours out on circuits and and today what we're starting to see is ok the technologies there whether it's smart inverters and from a cost perspective it you know it makes it makes sense for renewables and de ours and utilities are starting to change their mindset of you know managing that to one of how do I give broader access to renewables in distributed energy resources and and there's you know developing new business models and new programs to really give you know customers what they want in those areas and third from a from a grid perspective and infrastructure perspective you know there's regulators and policy makers are starting to understand that you know the needs of the future are different than they are today and that you know really the existing infrastructure is not the one that's really going to carry us forward and so there's a focus on you know what is the the infrastructure of the future look like it needs to be you know more dynamic and beam resilient ut from you know more and more sustainable so both from a reliability perspective but from you know resource mix perspective as well so we're seeing all those things you know transform into where the industry looks you know significantly different in the next decade then it really has it in the past decade so let me share with you kind of where we see things going we see that the industry is really shifting from you know a system that's characterized you know the traditional grid is one way power flow from centralized generation you know to end customers and and we see that really giving way to a system that can be characterized in in really four dimensions you know clean energy intelligent energy mobile energy and and distributed energy and that system will be you know more resilient more sustainable and and probably more importantly it'll be more networked than than what we've ever seen before and and we call this a god house this new ecosystem as as you know we call it the energy cloud and we believe that we're really in there and kind of really the first phase of the transformation but we're already seeing you know multiple energy cloud trends and tipping points that indicate kind of that this this transformation is well underway we're seeing rapidly increasing share of renewable energy generation you know in this past year renewables generation kind of surpassed nuclear for the first time in thirty years with with regard to production output and then US coal shipments were you know their lowest level since since 1983 so definitely a shift towards renewables we see wide scale adoption of distributed energy resources and decarbonization of the global economy de ours you know grew three times faster than central generation during from 2015 to 2019 and we see that that trend continued at you know moving forward and then we see you know electric ation of transportation you know people have talked about the growth of v's well in 2019 there were nearly thirty three hundred and thirty thousand plug-in electric vehicle vehicles sold in the United States and that was double the number that was sold in just three years ago so you know in this new ecosystem or this new you know energy cloud you know we think customer choice in clean energy and innovation and agility will command a premium and that there's going to be a shift in where the value flows you know today it's really back from the customer receives electricity and in the utility you know makes money off investments and generation or transmission or distribution and we see that that shift from you know one where it's bulk transmission to one in which it's it's moving towards new innovative technologies and products and services are going to capture an increasing share of that value and that there's going to be new business models and new platforms that emerge and and those are going to provide growth opportunities both for incumbent utilities but it's also going to create new competitors we see those as platforms or those ways that you know customers and consumers and and the energy system interact really kind of aggregating around seven key platforms and you can see those here but they're things like transportation to Grid and building to Grid and integrated demand distributed energy resources and Internet of energy smart cities those are kind of key areas of focus that are key in places where new services or emerging and I'll give you a quick example of kind of what that might look like so if you think about just you know for instance the you know transportation to grid well think about if somebody's providing mobility as a service so you know it may be providing a fleet of autonomous vehicles or maybe it's just you know managing the battery for for a personal car or a company that has a fleet of vehicles and you know they may you know customers may pay them for providing that transportation well what about you know utilities I mean if that if those storage and those vehicles can be used to offset capital to firm capital investments or be used in periods when you know load is really high well maybe utility is willing to pay you know a company that's managing that network for those services as well well what about when people when load is really low and renewable developers or renewables or kind of being forced to may be getting ready to have to curtail because the system can't handle their generation output anymore well maybe those renewable developers would also pay you know this mobility provider to be able to charge the batteries during those times as opposed to it so you can start just to see that you know there's a network that that's evolving and it's no longer just a transaction between the utility and in customer but it's a you know transactions that occur across a broad range of participants and new market participants that traditionally haven't been there in the past and so again we're at the beginning stage of the stages of this and you know this transformation will happen at different periods you know for different geographies and different regions but we definitely see the tipping point starting to occur so to quote our old wise Bill Gates you know you know we will always overestimate the change that will occur in the next two years but likely underestimate the change that will occur in the next ten and this is kind of the view that we have as well so with that we'll kind of ask you what your what your thoughts are in this we have a poll question and it's when do you think the shift in the energy ecosystem will reach a tipping point for us in the Carolinas and and so we we kind of define that tipping point is maybe when the new revenues from all these different platforms and these other engagements start to exceed you know the revenue and the value that we're seeing today from traditional utilities providing just core basic service what people start to chime in I start seeing a bunch of a bunch of responses here very interesting look it looks like kind of the leader in the clubhouse is over the next you know five to ten years very good and I think that that's that's probably pretty realistic all right Cece I think we'll uh we'll keep moving so so not very many never will happen so interesting so we talked about kind of changing customer preferences and customer demand you know we touched on that in kind of the global energy trends but you kind of dive a little bit deeper into that I mean certainly technology enabled businesses like Amazon and Google and Apple and the ones that we deal with everyday have really drastically changed our you know customers expectations regarding the experience they're looking for or seeking from their energy providers and we talked about those you know those in the four C's you know customers are increasingly wanting more choice and control convenience and cost and but you know as things shift and then we move towards the energy cloud you know customer expectations are going to continue to evolve and I don't know many of you may remember the back to the old days where we would say Oh what does excellent service mean for for a utility and it was well we have a call center that was open 24/7 and calls were answered in 30 seconds well you know today you know most customers much prefer the convenience of being able to use mobile devices or online channels to interface with utilities and its really no longer acceptable to have to pick up the phone and report an outage anymore I mean we expect utilities to to know when our power's out and by the way send us power you know give us updates as to you know when we expect power to be restored to our mobile devices and similarly you know we expect to be able to choose our payment dates and you know receive alerts to let us know how our energy use is just trending so that we can better budget and manage our electricity spend but today those things are really you know starting to be kind of fundamental fundamental services and expectations are continuing to grow whether it's demand-side management - solar PV - you know behind the meter devices intelligent behind the meter devices you know consumers are showing a growing interest in wanting to be able to control the energy usage and spend as well as really you know when and what type of power that they want to buy and the decline of costs and these customer naval technologies whether it be smart thermostats or building energy management systems or machine learning heating and cooling systems you know they're they're really pointing to an even greater deployment of technology and infrastructure you know moving forward we're also seeing changing customer expectations you know with how they buy energy and you know the rise of on-site generation and energy storage and net metering battles that are that are happening across the country those could result in a greater percentage of customers really demanding the ability to self generate and sell power back to the grid reasons reasonable compensation levels you've seen Amazon and Google and Honda and Walmart and other large energies they're established you know establishing grid independent solutions across their bill building portfolios and you know looks like a Kia and Apple and other kind of commercial industrial customers that you know eventually you know they want to have access to you know wholesale markets in order to sell over capacity of renewables so those are some of the things that we're seeing today but the biggest shift that we're seeing you know as you know for the next decade is is this move from just focused on the four C's to one in which you know customers are more focused on sustainable sustainable development and deep deep decarbonization and the circular economy so is you know it's no longer you know sustainability this is really no longer just a nice - it's a half - we're seeing cities that you know face you're looking at how you know massive trend of urbanization thinking about you know how do they really have sustainable development across all aspects of whether it be cities health or you know the economic and financial well-being of their citizens and social and environmental issues so we're seeing cities focused on the circle development circular economy and we're seeing really citizens as well in 87 percent of Millennials you know expect or believe the success of a business should be really measured and more in terms more than just a financial performance and so the the really what who's leading the way in this is though is corporations so if you think about you know this is I did this in July of nineteen we started looking okay what you know corporations have really committed to to science-based targets and we had five hundred and seventy five of them that had formally committed to targets and two hundred you conceived in 235 had you know how to prove targets and and and so I went to update this for this presentation and it was already so large we had eight hundred and seventy five companies now so over the past you know ten months we've had another three hundred company so this is a you know it's it's not just a trend but it's really a commitment that large corporations are making and and there's they're they're seeing it you know Annie because their investors and their customers are demanding it and so you can see some logos down here from some of the companies in the Carolinas that have large presences he a large presence here that have made those and they range from you know Kimberly Clark the new Bellator moment scorning VF Corporation Vance microdevices Ralph Lauren you can see all those really have science-based targets and some of the ones on the right Bank of America Wells Fargo train a lot of those also have commitments to purchasing 100 percent of their energy from renewables so definitely you know corporations are out front and and and leading the way so we thought we would ask another poll question here and and say which best describes your company or organization sustainability commitment they have publicly stated goals and reporting commitments you have internally established goals you're looking and you're talking about developing these goals or not yet radarscreen here somewhat of a mix but the majority of publicly stated decarbonisation goals I think that's probably pretty reflective of what we're seeing in the broader industry as well okay Cece I think we can wrap up this poll and let's move a little bit more you know beyond the customer driven the customer driven now changes and demands to you know key trends with with regard to technology and I don't think this is the surprise to anyone but you know we've really seen just rapidly declining technology cost you know over the you know past decade and and that's really led to a growth of distributed energy resources during the past you know 2018 de our deployments reached 30 gigawatts and and moving forward we're expecting that the growth of de ours to be eight times faster than new central generation and so if you look at you know you know what our de ARDS and maybe I should kind of step back here and make sure everybody and it has a common understanding but it's not just you know distributed solar but it's also energy efficiency demand response its new storage solutions so it's really you know a combination of resources that are out there that's that's not just new generation but we we expect that to just that growth to continue for the next decade and really the Eevee's and eb charging or the fastest growing segments and then energy storage solutions and alternatives you know that they're also going to be growing in at a high rate you know both of those are in the 18 to 20 percent you know cater growth over the next decade but you know certainly distributed generation and solar pv is driving the biggest growth overall with when it card when it comes to the growth of distributed energy resources just from a you know a cost standpoint we do see solar cost you know we've seen significant price decreases over the past decade and Lithia not lithium-ion cells and and we see that continue to decline over the next five years or so and then before it kind of those decline rates start to level out and those declining solar costs are really having a an impact on you know fleet and electric vehicles and I thought I'd just kind of share with you what we're seeing in the market around fleet electrification and we're seeing just an increased commitment from corporations you know to really transition their fleet to an electric fleet and it's really driven by a couple of things but you know in addition to their decarbonisation goals really the total cost of ownership is you know for electric fleet just makes sense for a lot of companies and so you've seen some of the ones that have signed up to have a hundred percent of their fleet converted and I kids and the PG and E's and the visors and DHL yeah some of those listed as well but you know also major commitments from you know just the key players whether it's Amazon and FedEx and UPS and those folks I mean every major corporation that we talk to is really saying okay what makes sense for transition now you know what cars or vehicles are available for my fleet and how do we start moving towards a you know a cleaner fleet and doing it a neck in a way that makes economic sense for us and we see that you know some plugged up supply side is starting to catch up you know really for especially for medium and heavier duty vehicles you know the options for conversion have been somewhat limited in the past but we see that really changing over the over the next several years is more and more Olien just starting to come out with with new offerings so moving really to policy trends and policy and regulation I think over the past several years who we've we've heard a lot about you know the US and and our commitment to you know key major the Paris agreement should we participate or should we not and and you know what should our federal policy you know be with regard to this but you know what we're finding is that you know it's not really about what commitments are made at the federal level as much as it is about what's happening local that's been the key driver and you can see on this this list and you know I d n't know maybe a little more different a little difficult for you to see but you know a lot of the countries that have made commitments there there's so much struggling to to keep up with those but what we are seeing is you know the cities and state governments you know they're quickly adopting goals and moving towards you know whether it be a hundred percent renewable or just you know broader decarbonisation targets and certainly north carolina's is no you guys we've all seen it here in in our state as well with the executive order ad that's really directing you know DEQ and d-o-t to develop very aggressive not more renewable calls but Evie plans we've seen you know Wake County Orange County Apex Chapel Hill you know a number of other cities adopt 100% clean renewable energy targets by 2050 and looking at my email today and you know I got a notice from how I did the city of Charlotte's commitment to purchase sign up signed up for the green source advantage program that Duke is offering and it procured 35 megawatts of utility scale solar that you know it's going to reduce their carbon emissions by 25 percent from their buildings and save them two million dollars over the next 20 years as well so you know that momentum is happening locally it's happening in North Carolina we also see it happening in other states nearby Virginia is really one that's getting a lot of attention you know right now for its clean energy economy Act which the governor just signed into legislation that bill here a month or so ago and it really challenges the state or charges the state with producing a hundred percent of its electricity from renewables by 2045 so you know a lot of momentum here regardless of kind of where our federal policy is so the other side will look from a policy and regulation standpoint is it's not just around renewables and sustainability it's really also related to you know making sure that that the system the energy system is resilient and can provide the you know serve serve customers and what we've seen is that regulators and policy makers both at the state and federal levels kind of recognize the importance of the grid to not only you know is to our national security but it's also the economic vitality and our way of life and and so that we're seeing increasing commitments you know the state and federal levels to hard an electric grid system both from natural disasters as well as adversarial threats during the past decade it has really been an unprecedented number of natural disasters we've seen and just in the last three years 12 billion-dollar disasters in each of the past three years and impacting in the United States and the impact of these natural disasters over the past five years has been you know 525 billion dollars in utility it depends on what kind of each each person's region but you know here we're think about hurricanes and our threat from you know hurricanes and floods but in other places it may be more tornadoes and fires and but the the risk may be different you know utilities are really being asked to develop long term plans to to harden the system from you know the types of disasters that occur in their region you know in Florida recently you know legislation was passed in 2019 that required all utilities to submit a grid hardening plan and those were filed just a few weeks ago similarly in California utilities have been developing implementing wildfire mitigation plans and we see that trend just continuing you know in the upcoming decade and in addition to the natural disasters there's also a focus on you know protect protecting the whole power system from cyber and physical physical security threats I think many of you probably are aware that in 2015 there was a cyber attack and you know in Ukraine where hackers were able to gain access to control centers and manipulated the breakers and disruptive power for you know several hundred thousand customers and so there you know in those threats I guess there continues to be signs that those threats are going to continue and and over the next decade and so there's an increased focus on protecting that and most recently I guess on May 1st of this year we even saw an executive order from from president Trump that authorizing the Secretary of Energy to work closely with federal requirements really to take bold to take proactive measures to protect the power system and and folks are starting to still try to figure out exactly what that means but it's you know there's going to be new rules and regulations prohibiting installation of you know components from you know countries that you know pose a credible threat to the bulk power system so stay tuned for the stay tuned for for that but in addition to upgrading to facilities and and the infrastructure you know I think the other thing that we're seeing now is that you know organizations are really starting to think our utilities are starting to think about ok how do i hardened my organization how do I operate in this new environment oh that environment where I may not be able to have personnel you know that you have new new tests and new procedures and new processes that have to be implemented and how to operate from organization and operationally in a new environment so you're starting to see you know the industry you know rethink how to harden the organization as well so what does all this mean you know for us here in North Carolina and I think you know the first is that you know you're going to continue to see you know a transition from today's kind of energy system to one that's more connected integrated sustainable and automated we're gonna see companies that you know start really breaking down the silos between departments and and change the way they operate and we forecast that there's going to be seven hundred billion dollars invested to upgrade you know the energy system you know by global utilities in the next decade in this it can be a transition really just from this foundational grid that you know may have having a mi meters and single purpose communications to that will evolve to a smart grip or we may have more rate modernization and dynamic pricing and electrification of Transportation and de our integration to really one that eventually is what we call a neural grid where you'll have self-healing power flow operations you'll have operational analytics you'll have energy as a service and and other types of uh subscription pricing programs and so we see that shift over the you know over the next decade this is just an example of you know how operations and how utilities are starting to to think about you know things differently in this new ecosystem and if you think about the planning of the way utilities have done planning previously it's okay I'll look at how much load I'm going to have and then I look at what central general generation I can build and well my transmission lines really be able to transport it and then do I have enough you know capacity at my distribution circuit to be able to handle that growth in and then you know now that that's really changing and I'd say that jeeps really a leader and at the forefront of starting to think about this differently but so now from a planning perspective you know you have you have to say okay how much what are all my options can I you know get deeper penetration of the energy efficiency or demand response in a certain geographic area and what's the cost of doing that you know versus you know potentially putting in a new solar or either distributed or you know utility scale generation asset or putting in a new CT and it's really an iterative process that you know takes a much broader set of resources you know that could be distribution connected transmission connected or more central and it say okay what's the you know what's the most economic way to achieve you know to be able to safely and reliably to meet customer demands but also to maybe do it in a way that conforms with you know state or local or policy goals and objectives as well so I think Duke talks about there I saw a poor integrated system op operational planning and this is an example of a good example of how we think see things changing over the next decade in addition to kind of the utility operations you know I think one of the implications will be you know really the evolution of kind of the regulatory framework in and I'll tell you here that in a lot of parts of the country traditional radio regulation is functioning well today and it's miss functions well in North Carolina we've been fortunate to have a lot of growth from an economic development standpoint and and so it you know we've been able to maybe stay with the traditional framework maybe longer than others but as we move forward you know I think regulators will increasingly consider no alternative frameworks that either you know you might might do them you know you can see a number of those over on the right whether it's decoupling or multi-year Ray plans or shared savings performance mechanisms we caught we lump all those together and we call performance base rates and rate making and and so you know all those kind of have their own benefits and advantages or maybe disadvantages as well so what's the right portfolio of mechanisms that should be put in place you know with the utility to you know create sufficient space for innovation to drive new products and services that you know customers want and and lower overall cost and and then really help maybe transition you know the energy model to the future and into the energy cloud so the vision to see how our regulators and policy makers work with the utility over the next decade to really examine a number of these opportunities finally I think the probably the biggest opportunity and the next decade will be you know what what does utilities and you know what do they really want to be when they grow up and and how do they change their existing business model so today you know they're they're really the owner of the network and they manage it to perform safely reliable and meet the needs but you know there are a couple of different ways that they could evolve I mean so you know just kind of you know vertically you know they can move towards what we call a network Orchestrator and if you think back to the you know the thought of the platforms that might be emerging you know how can they enable those and make investments and communications and technologies that enable new products and services to be able to flow to customers but they're really providing the infrastructure to do that and we call that a network Orchestrator model and you know states like New York or we're moving towards that and where the utility is not necessarily playing the role as an energy you know in energy as a service they're not gonna start providing a lot of the products and services but they're providing an environment for that to work you know other places the utilities may be moving towards you know really energy as a service and moving along that axis you see a lot of new entrants in that part of it you know moving towards there whether it be a lot of the European utilities but really also the combination of that is really maybe what we call an integrated energy platform Orchestrator so there's opportunity in there's room for the utilities today to to work with regulators to seek where they fit and I think that will be something that's joint you know jointly determined in each state and in each jurisdiction and utilities will have to kind of figure out what their role will be as we move forward I believe those were the end of my kind of prepared comments and so maybe I'll turn it back to Advanced Energy folks to open it up and see what questions and may may have come up during the Commerce during the presentation great Thank You chip those are some wonderful insights on the state of the industry some information about customer expectations business models emerging technologies and new policies and investments and how we're going to move forward thanks to everybody for participating in our polls today we really enjoyed seeing that information before we get into the question and answer period I did want to mention to everyone that we are going to continue this conversation and build on chip comments about sleep electrification with a webinar on June 24th on medium and heavy-duty electric vehicles so please mark your calendars we're excited to take a deeper look into those technologies and look out for an email invitation with registration information and then we also have some case studies and videos and links to all of our smart grid resources out on our website and see smart grids org for those of you who answered our question that you are working on your decarbonisation gold we have just published an article about carbon emission tracking tool so be sure to look out for that on the Advanced Energy website and the NC smart grid website and at this point we we would like to take a few minutes to answer some of the questions and comments that have come in we may not be able to answer all of them or may not have an immediate answer to the question but in either case we will do our best to follow up with you after doing some research so looking at the questions the first one is what are the implications of megatrends and transportation and oil for the value proposition of EB fleets and individual ownership and think I'll let you address that question first and then I may add anything on it yeah I think the what we're seeing or kind of projecting is that in this short term it kind of the pandemic and and there's resulted in lower prices of fuel you know we're going to have gonna have an impact I can't remember the number off the top of my head and it seems like we were thinking you know 20 to 30 percent over the next year so and then it's going to be kind of a delay in you're kind of reaching back to the forecast levels that we were projecting before the before the you know before the pandemic so we actually have a webinar on our company on that over the next I think next week and I'll be getting more information there and it's publicly available it got house insights but we do see a short-term impact but overall in the long term you know I think the fundamentals and the economics are you know kind of remain and that we still see continued growth for electric transportation great yeah and I would also just like to point anyone to our plug in North Carolina website there's numerous case studies and resources around the electrification and then of course our next webinar will address that topic so we've got several other questions here next one that we're gonna address is how do you view battery power going forward for home use and impact to the utility infrastructure and this is a really good question I'm gonna just take a moment to answer it and then hand it over to chip to add on we're working with utilities on battery projects right now and then though they're piloting projects at the residential community utility scale and it's really important to have that on the ground field experience to know how this might impact infrastructure several other projects that are going in are already islanding micro grids and then I would just note that most battery systems designs are only for 2 to 4 hours of peak demand so that they are really a short-term resource and chip do you have anything to add to that no I think you technology costs will continue to come down and they'll become more economic and be adopted as you know as they become become more cost effective I mean we see growth from him one of the it'll be one of the higher growth mentioned earlier my de our forecast and we see you know storages being one of the higher growth de ours over the next decade but in the most part that will happen as costs continue to come down ok great thanks we're going to take just one more question and this one is do you have a couple of examples of what other states are doing around performance-based rate making and/or what are some good resources for this topic I think you know a couple of examples there you could look at Illinois and what they're doing and in Virginia both have really started to put in you know mechanisms for utilities being able to ake grid transformation investments with multi-year rate plans and having those investment investment spree or pre-approved so those are certainly some of them Massachusetts is probably another state that that you might want to look at where they've implemented you know index pricing that really encourages utilities too it gives them a rate of return that's tied back to inflation with also some performance challenges included and so they to the said that they're able to you know safe you know find operational savings they're able to keep those for a period of maybe that's five years you know they're also being their performance has adders that really pushes them to achieve some some state policy goals and so I think you know those are a couple of states or a few states that are doing innovative things I think Vermont also has a mechanism that really encourages innovation so they have the sandbox where they're really pushing opportunities there and in New York as well much creative things we're seeing in the market excellent thanks I know that the performance-based rate making is a hot topic right now well those are some great questions and that's all we have time to answer at this time it's the top of the hour if we didn't get to your question we will replied to you in the next couple days as a reminder all of our resources are out on our website and we will also have the recording of this webinar and at this point we'd like to end today's webinar by sharing our satisfaction survey and please help please help us improve by filling out the survey so we can continue to make the webinars valuable for you we'd like to hear what kind of topics you want to know about in the future so thank you for taking your time out of your busy schedule to join us today and have a great rest of the day