4.1 Objectives

The utility shall clearly state and support its objectives. The objectives of the Resource Plan include, but are not limited to, low cost, adequate and reliable energy services; economic efficiency; financial integrity of the utility; comparable consideration of demand and supply resources; mitigation of risks; consideration of environmental impacts; and consistency with governmental regulations and policies. In meeting the objectives, the utility should put itself in a position to respond to anticipated economic conditions and technological advancements and changes, including environmental requirements.

4.2 Development of a Range of Demand Forecasts

A reasonable set of assumptions for econometric and/or end use variables should be considered in the development of a range of outcomes that complement the long-term forecasts of electricity demand (MW) and energy consumption (kWh). A minimum of 10 years should be used as a planning horizon. Energy usage by customer class should be separately identified.

4.3 Identifying and Characterizing Supply and Demand Resources

The utility should assess existing resources based on their cost effectiveness and considering the utility's planning objectives. For incremental capacity needs, all reasonably useful and economic supply and demand resources that may be available to a utility or its customers should be considered. Utility efforts to encourage energy efficiency, conservation, demand-side management, interruptible load, and price responsive demand should be identified. Identified resources should be investigated to determine costs, effectiveness, and other attributes such as potential future emission control or allowance costs to the extent they are monetizable. Non-monetizable costs and benefits should be recognized. Cost effective resources that do not meet minimum criteria such as risk or environmental or other governmental rules or policy should be eliminated from further consideration in this planning cycle.

4.4 Development of Multiple Integrated Resource Portfolios

The planning process should identify multiple integrated resource portfolios, each of which meets reliability criteria. Utilities will identify and take into consideration risk in developing these different portfolios, such as different levels of load growth, different fuel cost forecasts, or other parameters that are influenced by conditions beyond the utility's control. The portfolios should be compared on the present value of the cost of each.

4.5 Evaluation and Selection of the Utility's Resource Plan

The utility shall identify a preferred Resource Plan that provides a balance of risks of adverse outcomes to its customers and its own financial integrity, while providing flexibility to change as future conditions warrant. The evaluation should fully describe how the utility's preferred plan affects long term utility resource needs and costs.

4.6 The Action Plan

The utility shall submit an action plan consisting of the tasks that are necessary to implement the preferred Resource Plan. The action plan shall include a description of and timeline associated with the utility's competitive bidding process. A self-build option must be compared to market opportunities. The process for the acquisition and approval of resources described in the action plan is separate from the information provided regarding the resource planning process described herein.

4.7 Transmission Plan

The transmission plan necessarily results from a separate planning process and is a separate plan; however, it should be integrated into the overall resource planning process, such that the analysis of generation options and demand response options can be synthesized and optimized. Transmission planning will be done by an independent entity and is regional in scope.

4.8 Stakeholder process

Each utility will organize and facilitate meetings of a Stakeholder Committee for resource planning purposes. The Stakeholder Committee should be broadly representative of retail and wholesale customers, independent power suppliers, marketers, and other interested entities in the service area. The Stakeholders shall develop their own rules and procedures. Stakeholders should review utility objectives, assumptions, and estimated needs early in the planning cycle. The utility shall make a good faith effort to properly inform and respond to the Stakeholder Committee. A Report of the Stakeholder Committee should be included with the Resource Plan submittal. Stakeholders and General Staff may also submit comments to the Commission on each Resource Plan after it has been submitted by the utility. Such comments should be taken into consideration by the utility in its preparation efforts and decisions concerning subsequent approval applications, as well as in its next planning cycle. If comments concerning the process and results warrant, the Commission may require the utility to re-evaluate and resubmit its Resource Plan for the current planning cycle to address concerns raised in the comments.