Integrated resource planning at electric utilities: The planning process

Abstract

The planning process (as distinct from the plan itself) is a critical, and often neglected, element of utility planning. Regardless of whether the planning is traditional, least-cost, integrated resource, or integrated value-based; cooperation, communication and consensus among the utility planning staff are vital. In early 1986, Puget Power established a Demand and Resource Evaluation (DARE) program, intended to improve its internal plan. This paper describes DARE activities during its initial 18-month cycle. Key lessons learned from DARE include: the need for internal cooperation, the amount of time needed to establish a viable planning activity, the required commitment to planning from top management, the balance between analysis and experience, the value of public participation, and the necessity of developing realistic goals for the initial plan. Puget Power's experience also suggests important roles for state Public Utility Commissions in their regulation of utility planning.