What constitutes a good integrated resource plan?

Abstract

Integrated resource planning helps utilities and state regulatory commissions to 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 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. This paper (based on a review of about 50 resource plans) presents suggestions to utilities on how to conduct such planning, and what to include in their resource-planning reports. The suggestions are also useful to staff at regulatory commissions who review utility plans. The suggestions cover four broad topics, which are detailed in this paper: the technical competence with which the plan was developed; the adequacy, detail and consistency (with the longterm plan) of the short-term action plan; the extent to which the interests of various stakeholders were considered; and the clarity and comprehensiveness of the utility's report on its plan. A plan that meets the guidelines developed here is likely to provide a solid foundation for meeting the future energy-service needs of the utility's customers.