26 Del. Admin. Code § 3010-6.0

Current through Register Vol. 28, No. 7, January 1, 2025

Section 3010-6.0 - Plan Development

6.1 The Company shall conduct an Integrated Resource Evaluation in formulating its potential plans for supply and demand-side resource scenarios. The Company shall describe the mechanism or process by which the Load Forecast and options have been blended into the various IRP scenarios. In integrating its supply and demand-side resources, the Company shall:

6.1.1 Prepare an evaluation that takes into consideration the life expectancy of the resource, if the resource provides capacity and/or energy, any improvements to system Reliability, the dispatchability of the source, any lead time requirements, the flexibility of the resource, the Generation Attributes of the resource, the efficiency of the resource, and the opportunities for customers' participation. The valuation shall assess the probability of securing the options according to modeling information used, including any key assumptions. The Company shall provide the estimated energy and capacity impacts for each option and the rationale behind the estimate.

6.1.2 Prepare a contingency plan that shall include a discussion of how the Company might alter the proposed IRP in the future if the key planning assumptions used to develop the proposed IRP in the future turn out to be different than what was assumed in preparing the proposed IRP.

6.1.3 Evaluate the cost-effectiveness of the options from the perspectives of the utility and the different classes of ratepayers. Any cost evaluation should be based on real prices, the Company, should it so choose also may provide a cost evaluation using nominal prices.

6.1.4 Include a current evaluation, detailing and giving consideration to environmental benefits and externalities associated with the utilization of specific methods of energy production. This evaluation need not be based on original research by the Company and may rely on published research and peer reviewed scientific and/or medical studies commonly available. To the extent that any reliable, relevant peer reviewed published research and scientific and/or medical studies commonly available include life cycle analyses encompassing energy extraction, transport, generation and/or use, the Company shall include such research and studies in its evaluation.

6.1.5 The IRP shall not include any assumptions that externalities are adequately addressed by either the fact that the IRP meets the Renewable Energy Portfolio Standards, satisfies the Energy Efficiency Resources Standards, or that the generating units to be utilized comply with existing environmental regulations. This rule does not, however, preclude a potential conclusion that the Renewable Energy Portfolio Standards or Energy Efficiency Resources Standards in effect at the time adequately address externalities.

6.1.6 Evaluate the financial, competitive, reliability, and operational risks associated with the options recommended by the IRP and how these risks may be mitigated over the 10 year planning period. Each candidate plan shall include a discussion of the likelihood of the occurrence of such risks.

6.1.7 For the options included in the proposed plan identified in the IRP, the IRP shall include an analysis of the fuel risk associated with the proposed Resource Portfolio and how such fuel risk will be mitigated when the proposed IRP is implemented.

6.1.8 Perform sensitivity analyses on each of the candidate plans to include variations in key assumptions and to assess the likelihood of planned outcomes. The sensitivity analyses shall include among other analyses the impact of proposed or existing rules and regulations on a local, regional or national level related to climate change.

6.2 The Company shall forward a copy of the IRP to DNREC and seek input into externalities, including but not limited to, health effects.

6.3 In developing candidate plans, special attention shall be given to ensuring consistency between the IRP and typical rate- making processes. While the ultimate consumer price associated with the plan is important, the stability of rates and other factors as described in Section 5.2 need to be considered in any candidate plan selection.

26 Del. Admin. Code § 3010-6.0