Integrating demand-side management programs into the resource plans of US electric utilities

Demand-side planning is increasingly an accepted part of the planning process of US electric utilities. Demand-side planning, however, must be integrated with supply-side options to meet future energy and load requirements. This study examines the process of integrated resource planning (IRP) by a comparative study of the approaches of US utilities. The comparison is based on a survey of 24 electric utilities and an in-depth look at five utilities that represent a geographically and methodologically varied sample. DSM planning is placed in a three-phase framework that includes supply-side options. The three phases are (1) identifying and screening DSM technologies, (2) developing and screening DSM programs, and (3) integrating those programs with candidate resources on the supply side. Different dimensions of resources complicate the integrating processes. The three most important dimensions are financial, economic (including externality and value of service considerations), and reliability. The extent to which these dimensions are considered in the integrating process can significantly affect the resource mix. 50 refs.