A good integrated resource plan: Guidelines for electric utilities and regulators

Integrated resource planning helps utilities and state regulatory commissions consistently assess a broad range of demand and supply resources to meet customer energy-service needs cost-effectively. Key characteristics of this planning approach include: explicit consideration and fair treatment of a wide variety of demand and supply options, consideration of the environmental and other social costs of providing energy services, public participation in the development of the resource plan, and analysis of the uncertainties associated with different external factors and resource options. Integrated resource planning differs from traditional planning in the types and scope of resources considered, the owners of the resources, the organizations involved in resource planning, and the criteria for resource selection. This report presents suggestions to utilities on how to conduct such planning and what to include in their resource-planning reports. These suggestions are based on a review of about 50 resource plans as well as discussions with and presentations to regulators and utilities. The suggestions cover four broad topics; the technical competence with which the plan was developed; the adequacy, detail, and consistency (with the long-term plan) of the short-term action plan; the extent to which the interests of various stakeholders was considered, both in public participation in plan development and in the variety of resource plans developedand assessed; and the clarity and comprehensiveness of the utility's report on its plan. Technical competence includes energy and demand forecasts, assessment of supply and demand resources, resource integration, and treatment of uncertainty. Issues associated with forecasts include forecasting approaches; links between the forecasts of energy use and peak demands; and links between the forecasts and the effects of past, present, and future demand-side management programs.