§ 1710.356 - Integrated resource plans.

(a)(1) An RUS approved IRP is required for all loans that include funds for DSM activities, unless the cumulative total of all previous DSM loans and the loan under consideration for that applicant is less than 1 percent of the applicant's total utility plant.

(2) An RUS approved IRP is required for all loans that include funds for on-grid renewable energy systems.

(3) An RUS approved IRP is required for all loans that include funds for off-grid renewable energy systems unless the Administrator determines that an IRP is not needed to determine that the loan is both feasible and secure pursuant to §§ 1710.112 and 1710.113, respectively.

(b)(1) When an IRP is required, a distribution borrower that is a member of a power supply borrower must use the IRP prepared by the power supply borrower for its overall system. This IRP must have been coordinated with all of the member systems and it must have been approved by the board of directors of the power supply borrower. Because of the relationship between the power supply borrower and its members under which the loans incurred by the power supply borrower are primarily to construct, improve or acquire facilities that benefit all members directly or indirectly, the security of loans to all parties is interlinked. Consequently, DSM activities and renewable energy activities must be coordinated among all parties to insure that the activities of one member do not jeopardize the financial integrity or loan security of any other member or that of the power supply borrower.

(2) A distribution system that is not a member of an RUS financed power supply borrower shall prepare its own IRP. An IRP developed by a distribution borrower that is not a member of a power supply borrower need only address its own system, but shall include an analysis of the effects of its DSM activities on its wholesale power costs.

(c) The IRP shall identify supply side and demand side options and analyze their benefits and costs in order to provide adequate and reliable electric service to consumers at the lowest cost for the system as a whole.

(d) The IRP shall include necessary features for system operation, such as diversity, reliability, dispatchability, and other factors of risk; and it shall take into account the ability to verify energy and cost savings achieved through DSM, energy conservation, and renewable energy systems, and the projected durability of such savings measured over time.

(e) The following elements also included in a DSM plan, pursuant to §§ 1710.357 and 1710.358, shall be included except where RUS determines that they are not necessary:

(1) Load shape objectives;

(2) Wholesale power pricing policy and costs, and their relationship to the proposed DSM activities;

(3) Ownership and costs of DSM related hardware;

(4) Incentive and marketing costs;

(5) Communication and control costs; and

(6) Monitoring methods and costs.

(f) The IRP shall analyze the DSM effects set forth in § 1710.359.