FY 2004 IRP Summary

Western’s Integrated Resource Planning requirements outlined in Section 114 of the Energy Policy Act of 1992, gives customers several options to meet or streamline these requirements. The requirements, which were updated in 2000, recognize the changes occurring in the utility industry and our customer’s varying size and structure. These changes also streamlined the reporting requirements without sacrificing the EPAct’s intent.

Customers must submit annual progress reports and new integrated resource plans every five years, but they may now submit them individually or cooperatively when they belong to member-based associations.

The IRP regulations allow customers to set action plan timelines (instead of a five-year minimum) to better correspond with their own situations. The regulations no longer require customers to provide a complete load forecast, only a brief summary verifying that one was conducted. Customers no longer must provide methods of validation predicted performance to determine whether they met IRP objectives. Instead, they can submit a brief description of measurement strategies fro the options identified in the IRP.

Western also made changes to IRP alternatives. Members of Member Based Associations and joint action agencies may now file a small customer plan if their sales/use is under 25 GWh per year.

Another alternative to the IRP is the minimum investment report. Customers required by a state, tribal or Federal regulation to make minimum financial/resource investment in demand-side-management or renewable programs may file a minimum investment report consisting of an initial report and an annual letter.

With the Energy Efficiency/Renewable Energy Report, state, tribal or Federal end-use customers required by state, tribal or Federal mandate to conduct energy efficiency or renewable energy programs can provide an initial report and an annual report on these activities to comply with Western’s requirements.

All firm power customers have submitted one of these options. In FY 2004, Western received 111 IRPs from individual customers, 34 plans from cooperatives, 71 minimum investment reports and 83 small customer plans. These plans represent 715 long-term firm power customers and customer members.

Customer reported trends include:

• High interest/demand for renewable energy technologies in all (commercial, industrial, residential and institutional) market segments
• Increased requests for education on energy efficiency and renewable energy technologies
• Water management, efficient use, conservation, and pumping efficiency
• Continued re-emergence of demand-side-management efficiency activities/programs
• Key accounts programs

The most frequent demand-side-management activities cited by Western’s customers are:

• Lighting technologies
• HVAC technologies with emphasis on cooling and ventilation
• Audits for residential, commercial and industrial facilities
• Load Management

The top five renewable energy resource choices are:

• Hydro (large & small)
• Wind generation
• Solar – PV
• Geothermal
• Biomass

IRPs are driven by customer need and requests. Cost and reliability are still the highest priority, but factors such as renewable energy technologies have an ever-increasing influence on both of them. Additional factors include: foreign energy dependence, environmental issues, security issues, developing technologies, affordable options and regulations.