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• W230059101 abstract "One of the most important buzzwords to enter our collective jargon within the recent past is resource or IRP. Potentially one of the most far-reaching concepts to touch our industry, IRP is linked to numerous legislative issues currently being discussed in Congress. Clint Vince's article on IRP was originally part of a panel discussion at the recent CFC Power Supply Symposium in Washington, D. C. It serves as a such an excellent broad-brush approach to IRP and the attendant legislation that we decided to reprint it here. We want to emphasize, however, that the article is not intended as the comprehensive last word on these issues, but rather as a snapshot of their more significant aspects as MQ went to press. I. INTRODUCTION A. Legislative Overview When our panel began its coordination for this conference, we made a laundry list of all the potential legislative and related regulatory issues that might be relevant. Our list included: (1) Mergers/Acquisitions/Reorganizations; (2) Clean Air Act/Other Environmental Issues; (3) Reform of the Public Utility Holding Company Act/IPPs/Deregulation; (4) National Energy Strategy; (5) Transmission Access; (6) Integrated Resource Planning/Least Cost Planning; (7) Financing/Bankruptcy; and (8) Electric and Magnetic Fields. Since it would not be possible to cover each of these matters in a 20-minute presentation, I shall focus principally on the legislative highlights in several areas in which I have personally dabbled to a significant degree. These are: the National Energy Strategy and its major subsets, such as reform of the Public Utility Holding Company Act (PUHCA) and IPPs; the status of transmission access legislation; the environmental picture; and how all these impact on integrated resource planning (IRP). You have already learned about financing this morning; bankruptcy issues I shall leave for another day. Now let us get to the heart of the matter. B. What Is IRP And Why Should Cooperatives Care? The definition I shall use for IRP here is shorter than many you may have seen, namely--the development of demand- and supply-side options which result in maximum benefits for consumers. As you know, the term has gained wide currency as the key to responsible utility planning. Ironically, the components of IRP have long been embraced by rural electrics. In fact, since the late 1970s, rural electric cooperatives have undertaken IRP, under such assorted names as supply-demand services planning, and load management because (a) it saved money for ratepayers and (b) the Rural Electrification Administration (REA) required borrowers, through uncodified administrative policies, to engage in extensive demand- and supply-side management to assure that the borrowers were choosing least-cost options to meet consumer demand. I do not really have to tell this audience that unlike investor-owned utilities, which earn a return on plant investment and thus have an incentive to build, consumer-owned systems do not have an economic stake in constructing marginally needed generation. Since not-for-profit systems do not have to worry about impacts on corporate earnings, the efficiencies these systems achieve through responsible power supply planning are reflected in lower consumer rates. You need to be aware that, where for-profit systems are concerned, state regulators can decide to require IRP plans, or encourage their development as part of a utility's energy conservation efforts. IRP differs from traditional utility planning because it involves assembling a mix of options which will satisfy the electrical needs of consumers at the least cost, whereas traditional utility planning has not attempted to integrate supply and demand-side options. Procedures for evaluating plans are usually specified in a state public utility commission's (PUC's) order, which will often include a requirement for a hearing on least cost plan filings. …" @default.
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• W230059101 date "1991-09-22" @default.
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• W230059101 title "The Board Room: Legislative Issues in Resource Planning" @default.
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