94-4477. Integrated Resource Planning Impact on Utility Systems and Consumers  

  • [Federal Register Volume 59, Number 39 (Monday, February 28, 1994)]
    [Unknown Section]
    [Page ]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 94-4477]
    
    
    [Federal Register: February 28, 1994]
    
    
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    DEPARTMENT OF ENERGY
    Office of Energy Efficiency and Renewable Energy
    
    
    Integrated Resource Planning Impact on Utility Systems and 
    Consumers
    
    AGENCY: Energy Efficiency and Renewable Energy, DOE.
    
    ACTION: Notice of inquiry and request for comments.
    
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    SUMMARY: The U.S. Department of Energy's (DOE) Integrated Resource 
    Planning (IRP) Program is interested in soliciting the opinions of 
    electric and gas utilities and their trade associations, electricity 
    and gas consumer associations, State regulatory commissions and energy 
    offices, consumer and other public interest groups, and universities, 
    research and consulting firms concerning the likely effects of IRP on 
    utility systems, consumers and small businesses. Responses to this 
    request will assist the DOE in satisfying both its near-term and 
    longer-term IRP evaluation responsibilities.
    
    DATES: Written comments must be submitted by April 1, 1994 to ensure 
    their consideration.
    
    ADDRESSES: Send comments to Andrew Krantz, Integrated Resource Planning 
    Program, Office of Utility Technologies, U.S. Department of Energy, 
    Forrestal Building, EE-10, 1000 Independence Ave., SW., Washington, DC 
    20585.
    
    FOR FURTHER INFORMATION CONTACT: Requests for additional information 
    should be directed to Andrew Krantz of the U.S. Department of Energy at 
    the above address.
    
    SUPPLEMENTARY INFORMATION:
    
    I. EPAct's IRP Reporting Requirements of DOE
    
        The Energy Policy Act of 1992 (EPAct) contains several requirements 
    of DOE to report to the President and Congress on the status and likely 
    impacts of electric and gas IRP development across the nation. These 
    IRP-related reporting requirements can be found in EPAct, Title I--
    Energy Efficiency, Subtitle B--Utilities, Sections 111(e) and 115(e). 
    The purpose of this notice is to obtain information relevant to the IRP 
    evaluation and small business impact reporting requirements by 
    soliciting the opinions of IRP stakeholders concerning the impact of 
    IRP on electricity costs to consumers, reliability of electric service, 
    dependence on particular energy sources, and small businesses engaged 
    in providing energy services. In the near-term, DOE must satisfy these 
    EPAct requirements which call for DOE to prepare this report to the 
    President and Congress within two years of EPAct's enactment. The 
    report must contain, among other IRP-related items, an evaluation which 
    determines:
    
         Whether and to what extent IRP (electric only) is 
    likely to result in--
        a. Higher or lower electricity costs to an electric utility's 
    ultimate consumers or to classes or groups of such consumers;
        b. Enhanced or reduced reliability of electric service; and
        c. Increased or decreased dependence on particular energy 
    resources; as well as
         The competitive impact of implementation of energy 
    conservation, energy efficiency, and other DSM programs by utilities 
    (electric and gas) on small businesses engaged in the design, sale, 
    supply, installation, or servicing of similar energy conservation, 
    energy efficiency, or other DSM measures; and whether any unfair, 
    deceptive, or predatory acts exist, or are likely to exist, from 
    implementation of such programs.
    
        The DOE IRP Program will also use responses to this request for 
    providing insight into the direction of the Program's longer-term 
    research agenda related to assessing the national impacts of IRP. 
    Responses to this request will be analyzed and reported by the staff of 
    DOE's Integrated Resource Planning (IRP) Program, which is under the 
    auspices of the Office of Utility Technologies which is under the 
    Office of the Assistant Secretary for Energy Efficiency and Renewable 
    Energy. This summary will characterize what various groups believe to 
    be the likely impacts of electric IRP on the nation.
    
    II. Purpose of Request
    
        The overall legislative intent of Subsection 111 of EPAct is to 
    promote energy efficiency, in particular by encouraging utilities and 
    States to adopt the planning principles of IRP. The legislative intent 
    of the requirements to report the impact of IRP on electricity costs to 
    consumers, reliability of electric service, and dependence on 
    particular energy resources is to assess the likely results of IRP 
    implementation against the intended purpose and goals of EPAct's IRP-
    related provisions. It is also the intent of the provision to determine 
    the competitive impacts of the energy conservation, energy efficiency, 
    and other demand-side management programs of electric and gas utilities 
    on small businesses to ensure that State regulatory commissions are 
    considering the impact which expanded DSM programs may have on small 
    businesses already engaged in similar activities, and are implementing 
    measures to assure that utility actions will not provide utilities with 
    an unfair competitive advantage over such small businesses.
        The DOE's IRP Program is responsible for this report. The program 
    views the Federal role in IRP development as a collector of important 
    data, a conduit of the lessons learned by experienced IRP practitioners 
    to new IRP adopters, a developer of new tools and data bases and 
    monitorer of the outcomes of IRP processes around the country. Among 
    the priorities in this effort is the fulfillment of these EPAct 
    reporting requirements concerning the likely impacts of IRP on the 
    nation.
        Submitting this report to the President and Congress will be a 
    component of a continuing effort by DOE's IRP Program to monitor and 
    evaluate the impact of IRP on the nation's States, utilities and 
    consumers. The IRP Program views as part of its role to think 
    critically about IRP and its expected benefits. Because DOE implements 
    national energy policies that emphasize IRP as a potential solution to 
    some of the problems affecting the nation's utility energy services, an 
    assessment as to whether and to what extent IRP is providing overall 
    benefit to the nation, as it is practiced, is a necessary and important 
    DOE responsibility.
    
    III. Definitions of IRP
    
        To ensure that all respondents to this notice have a common 
    understanding of DOE's perspective on the role of IRP in utility 
    planning, DOE offers the following to define IRP's scope and parameters 
    and to describe the characteristics which distinguish IRP from 
    traditional planning approaches.
        Traditional planning techniques used by utilities once focus only 
    on investing in supply-side resources to satisfy customers' needs. A 
    distinguishing factor of the IRP process is that it includes both 
    supply- and demand-side resources in meeting demands for utility energy 
    services. According to Section 111 of EPAct, IRP for electric utility 
    service is:
    
        A planning and selection process for new energy resources that 
    evaluates the full range of alternatives, including new generating 
    capacity, power purchases, energy conservation and efficiency, 
    cogeneration and district heating and cooling applications, and 
    renewable energy resources, in order to provide adequate and 
    reliable service to its customers at the lowest system cost.
    
        In addition to promoting a mix of alternative resources, IRP 
    infuses the interests of all stakeholders: Utilities, ratepayers, 
    regulators, stockholders, and interest groups. The following 
    explanation of IRP, also taken from EPAct Section 111, reflects the 
    idea that IRP is a process that evaluates the issues raised by 
    different stakeholders.
    
        The Process [will] take into account necessary features for 
    system operation, such as diversity, reliability, dispatchability, 
    and other factors of risk; [will] take into account the ability to 
    verify energy savings achieved through energy conservation and 
    efficiency and the projected durability of such savings measured 
    over time; [and will] treat demand and supply resources on a 
    consistent and integrated basis.
    
        The DOE approach to IRP for utility and State energy planning is to 
    treat all options--supply, storage, delivery, and demand-side--on a 
    consistent basis using a systems approach without preconceptions or 
    bias for or against any particular option, fuel type, or form of 
    ownership. The following characteristics distinguish IRP from 
    traditional planning techniques.
    
        1. IRP examines the full range of energy and capacity resources 
    including demand-side management programs, transmission and 
    distribution systems, and non-traditional supply alternatives.
        2. IRP gives consideration to the full range of economic, 
    environmental, social, and technological factors.
        3. IRP facilitates public involvement in utility planning.
        4. IRP facilitates consideration of the risks and uncertainties 
    posed by different resource portfolios and by external factors such 
    as fluctuations in energy prices and economic conditions.
    
    IV. Nature of Information Sought
    
        DOE urges those interested in responding to this notice to consider 
    the provided definition of IRP and its characteristics and to consider 
    the following list of questions. DOE is also interested in gauging the 
    evolution of IRP practices around the nation, particularly as those 
    practices apply to the significant changes that are likely to occur in 
    the utility services industry over the next several years. Therefore, 
    DOE urges respondents to also consider each of the following questions 
    and explain how they might answer those questions five years from now. 
    Respondents are asked to please include their underlying assumptions 
    which accompany their opinions on the future status and likely impact 
    of IRP. This information will enhance DOE's ability to accurately 
    interpret the response and compare it to the opinions of other 
    respondents.
         Has the implementation of IRP changed (or is likely to 
    change) the per unit cost as well as the total bill for electricity for 
    consumers from pre-IRP levels? How, if at all, have different consumer 
    classes or groups experienced (or are likely to experience) changes in 
    the cost of their electric service as a result of IRP? Are these 
    changes good or bad and why? What characteristics of IRP are most 
    responsible for the changes in electricity costs which you have cited 
    for the previous questions? What studies, reports, or other information 
    underlie your comments?
         Has the implementation of IRP enhanced or reduced (or is 
    likely to enhance or reduce) the overall reliability of electric 
    service to customers? What, if any, are the IRP characteristics most 
    responsible (or likely to be most responsible) for a change in the 
    level of electric service reliability since IRP has been implemented? 
    What studies, reports, or other information underlie your comments?
         (Regarding the electric utility or utilities of most 
    immediate concern to you), has the implementation of IRP increased or 
    decreased (or is likely to increase or decrease) a dependence on 
    particular energy resources? How has the implementation of IRP affected 
    (or is likely to affect) the portfolio of resources serving your state 
    (or your service territory)? What characteristics of IRP are most 
    responsible for any changes in such a resource portfolio and why? What 
    studies, reports, or other information underlie your comments?
         What has been (or is likely to be) the competitive impact 
    of utility (electric or gas) energy conservation, energy efficiency, or 
    other demand-side management programs on small businesses providing 
    energy services in your State (or service territory)? What studies, 
    reports, or other information underlie your comments?
         Has IRP had (or is likely to have) an effect on 
    competition within: wholesale markets, retail markets, fuel sources, 
    and technologies? If so, how? Please explain. What studies, reports, or 
    other information underlie your comments?
         [For utilities only] To what extent have IRP principles 
    been incorporated into your business planning practice? Please explain. 
    What studies, reports, or other information underlie your comments?
         Has IRP had (or is likely to have) an effect on the 
    regulatory process and proceedings? If so, how? Please explain. What 
    studies, reports, or other information underlie your comments?
         Has IRP had (or is likely to have) an effect on the level 
    of public involvement with utility planning? If so, how? Please 
    explain. What studies, reports, or other information underlie your 
    comments?
         Has IRP had (or is likely to have) an effect on the 
    environmental performance of the utility(s)? If so, how? Please 
    explain. What studies, reports, or other information underlie your 
    comments?
         Has IRP affected (or is likely to affect) the way in which 
    risk and uncertainty is treated in your business and/or regulatory 
    planning process? If so, how? Please explain. What studies, reports, or 
    other information underlie your comments?
         On net, has IRP been (or is likely to be) a positive or 
    negative force? Please explain. What studies, reports, or other 
    information underlie your comments?
    
    V. DOE Plans for EPAct Report and Future IRP Evaluation Efforts
    
        The staff of DOE's IRP Program will tabulate and summarize public 
    comments received by the due date of April 1, 1994. Depending on the 
    number of responses, the report to the President and Congress will 
    identify areas of agreement and disagreement among respondents by type 
    of stakeholder group (utilities, States, interest groups), and regions 
    of the country, and other key segmentation variables as appropriate.
    
        Issued in Washington, DC, on February 14, 1994.
    Christine A. Ervin,
    Assistant Secretary, Energy Efficiency and Renewable Energy.
    [FR Doc. 94-4477 Filed 2-25-94; 8:45 am]
    BILLING CODE 6450-01-P
    
    
    

Document Information

Published:
02/28/1994
Department:
Energy Efficiency and Renewable Energy Office
Entry Type:
Uncategorized Document
Action:
Notice of inquiry and request for comments.
Document Number:
94-4477
Dates:
Written comments must be submitted by April 1, 1994 to ensure their consideration.
Pages:
0-0 (None pages)
Docket Numbers:
Federal Register: February 28, 1994