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Integrated resource planning (IRP) is an approach to utility resource planning that integrates the evaluation of supply- and demand-site options for providing energy services at the least cost. Many utilities practice IRP; however, most studies about IRP focus on investor-owned utilities (IOUs). This scoping study investigates the IRP activities and needs of public utilities (not-for-profit utilities, including federal, state, municipal, and cooperative utilities). This study (1) profiles IRP-related characteristics of the public utility sector, (2) articulates the needs of public utilities in understanding and implementing IRP, and (3) identifies strategies to advance IRP principles in public utility planning.
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.
Examines the prospects for advancing U.S. energy efficiency through technology improvements and regulatory changes in the utility sector and related Federal and State initiatives. Photos, charts and tables.
This publication presents six case studies of water utilities which have implemented some form of IRP process to illustrate the successes and problems encountered. Chapter 1 of this report introduces the concept of IRP (Integrated Resource Planning) and compares the IRP approach with traditional and least-cost planning approaches. Chapter 2 defines the key terms used throughout the manual and discusses the history of IRP in the energy industry (electric and gas utilities). It addresses the need for IRP in the water industry and sets forth the fundamentals or components of the IRP process. Chapter 3 presents a summary of the water resource management and planning processes of all the water utility participants on this projects. It also provides detailed discussions of the lessons learned from the six case study utilities and the strengths and weaknesses of their approaches. The Massachusetts Water Resources Authority case study was conducted through on-site interviews. The remaining five case studies were conducted through telephone interviews and through a written survey designed by the research team. Chapter 4 synthesizes the information from the previous chapter and discusses strategies and opportunities for achieving success, with a detailed discussion on how to utilize stakeholders effectively. Chapter 5 introduces step-by-step guidelines toward implementing an effective IRP process. Chapter 6 contains insights and detailed discussions on how to calculate avoided costs, how to include externalities in the planning process, and how to conduct cost-benefits analyses of all the planning alternatives being considered. Two appendices follow Chapter 6. Appendix A contains the detailed case studies of the six water utilities. Appendix B contains the actual survey used by the research team to develop the case studies. Finally, the report concludes with a list of references cited in the text and two bibliographies.