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POWER SUPPLY <br /> V V PA's future oower suooly olans are for <br /> a mix of clean, efficient natural gas <br /> goneraton cornoinec with a growinc <br /> oortfolio of renewaole resourccs <br /> Our Future Plans Resource Hedging <br /> We plan to continue to invest in both In addition to our shorter-term hedging <br /> renewable energy projects and clean, efficient, activities, MMPA's wind and bioenergy assets <br /> quick-starting natural gas generation projects provide long-term energy price hedges for <br /> to meet our future energy and capacity needs. the Agency. These resources lock in energy <br /> We believe that this approach positions MMPA costs for many years and reduce the Agency's <br /> well under a variety of potential commodity exposure to commodity price volatility. <br /> price and energy regulation scenarios. <br /> Energy Price Cap <br /> Forward Market Purchases Our conventional natural gas resources <br /> MMPA makes forward purchases of both represent a cap on energy market prices for <br /> natural gas and electricity to reduce our the Agency. If energy market prices exceed <br /> exposure to energy market volatility. This our cost of generation, we run the units to help <br /> activity supports our goal of providing stable offset energy acquisition costs. <br /> rates to members. We also purchase capacity <br /> on a forward basis from other utilities. This <br /> helps us make new resource additions in an <br /> economic manner. <br /> « MMPA's approach to power supply planning is to assemble a portfolio <br /> of renewable and conventional resources that positions the Agency to <br /> perform well under a wide range of future scenarios. » <br /> Oncu Er,Vice President <br /> Planning—Avant Energy <br /> 16 2016 MMPA Annual Report <br /> 97 <br />