Section 170 IAC 4-7-8 - Resource portfoliosAuthority: IC 8-1-1-3; IC 8-1-8.5-3
Affected: IC 8-1-8.5; IC 8-1.5
Sec. 8.
(a) The utility shall develop candidate resource portfolios from existing and future resources identified in sections 6 and 7 of this rule. The utility shall provide a description of its process for developing its candidate resource portfolios, including a description of its optimization modeling, if used. In selecting the candidate resource portfolios, the utility shall at a minimum consider:(4) environmental regulations;(5) projections for fuel costs;(6) load growth uncertainty;(7) economic factors; and(8) technological change.(b) With regard to candidate resource portfolios, the IRP must include the following: (1) An analysis of how candidate resource portfolios performed across a wide range of potential future scenarios, including the alternative scenarios required under section 4(26) of this rule.(2) The results of testing and rank ordering of the candidate resource portfolios by key resource planning objectives, including cost effectiveness and risk metrics.(3) The present value of revenue requirement for each candidate resource portfolio in dollars per kilowatt-hour delivered, with the interest rate specified.(c) Considering the analyses of the candidate resource portfolios, a utility shall select a preferred resource portfolio and include in the IRP the following:(1) A description of the utility's preferred resource portfolio.(2) Identification of the standards of reliability.(3) A description of the assumptions expected to have the greatest effect on the preferred resource portfolio.(4) An analysis showing that supply-side resources and demand-side resources have been evaluated on a consistent and comparable basis, including consideration of: (C) risk and uncertainty;(D) cost effectiveness; and(E) customer rate impacts.(5) An analysis showing the preferred resource portfolio utilizes supply-side resources and demand-side resources that safely, reliably, efficiently, and cost-effectively meets the electric system demand taking cost, risk, and uncertainty into consideration.(6) An evaluation of the utility's DSM programs designed to defer or eliminate investment in a transmission or distribution facility, including their impacts on the utility's transmission and distribution system.(7) A discussion of the financial impact on the utility of acquiring future resources identified in the utility's preferred resource portfolio including, where appropriate, the following: (A) Operating and capital costs of the preferred resource portfolio.(B) The average cost per kilowatt-hour of the future resources, which must be consistent with the electricity price assumption used to forecast the utility's expected load by customer class in section 5 of this rule.(C) An estimate of the utility's avoided cost for each year of the preferred resource portfolio.(D) The utility's ability to finance the preferred resource portfolio.(8) A description of how the preferred resource portfolio balances cost effectiveness, reliability, and portfolio risk and uncertainty, including the following:(A) Quantification, where possible, of assumed risks and uncertainties, including, but not limited to:(i) environmental and other regulatory compliance;(ii) reasonably anticipated future regulations;(vii) resource performance;(viii) load requirements;(ix) wholesale electricity and transmission prices;(x) RTO requirements; and(xi) technological progress.(B) An assessment of how robustness of risk considerations factored into the selection of the preferred resource portfolio.(9) Utilities shall include a discussion of potential methods under consideration to improve the data quality, tools, and analysis as part of the ongoing efforts to improve the credibility and efficiencies of their resource planning process.(10) A workable strategy to quickly and appropriately adapt its preferred resource portfolio to unexpected circumstances, including changes in the following: (A) Demand for electric service.(B) Cost of new supply-side resources or demand-side resources.(C) Regulatory compliance requirements and costs.(D) Wholesale market conditions.(F) Environmental compliance costs.(G) Technology and associated costs and penetration.(H) Other factors that would cause the forecasted relationship between supply and demand for electric service to be in error.Indiana Utility Regulatory Commission; 170 IAC 4-7-8; filed Aug 31, 1995, 9:00 a.m.: 19 IR 23; readopted filed Jul 11, 2001, 4:30 p.m.: 24 IR 4233; readopted filed Apr 24, 2007, 8:21 a.m.: 20070509-IR-170070147RFA; readopted filed Aug 2, 2013, 2:16 p.m.: 20130828-IR-170130227RFAFiled 12/5/2018, 11:49 a.m.: 20190102-IR-170180127FRAReadopted filed 4/11/2019, 9:04 a.m.: 20190508-IR-170190136RFAErrata filed 4/12/2019, 2:26 p.m.: 20190424-IR-170190250ACA