[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