Compilation of Rules and Regulations of the State of Georgia
Department 515 - RULES OF GEORGIA PUBLIC SERVICE COMMISSION
Chapter 515-3 - GENERAL RULES
Subject 515-3-4 - INTEGRATED RESOURCE PLANNING
Rule 515-3-4-.05 - Development of Integrated Resource Plan

Universal Citation: GA Rules and Regs r 515-3-4-.05

Current through Rules and Regulations filed through September 23, 2024

(1) Development of Integrated Resource Plans.

(a) Each utility shall develop a base case integrated resource plan based on the most economic and reliable combination of potental demand and supply-side resources, to meet the needs identified by the base case demand forecast scenario. The overall objective of the plan should be based on current Commission policy concerning minimizing customer bills, minimizing overall rates and maximizing net societal benefit. All potential resources which were identified and described as required in Rule 515-3-4-.04, and which were not excluded by the appropriate screening tests and where applicable to the Request for Proposal process, shall be considered for inclusion in the utility's integrated resource plan;

(b) The utility shall provide the following information for its integrated resource plan:
1. The utilities program for meeting the requirements shown in its demand and energy forecast in an economic and reliable manner. The utilities's analysis shall be for all capacity resources options, including both demand-side and supply-side options, and set forth the utilities assumptions and conclusions with respect to the effect of each capacity resource option on the future cost and reliability of electric service. These analyses shall be consistent with analyses required by Rules 515-3-4-.04;

2. A detailed projection of the utilities electric demand and energy forecast for at least a 20-year period as required by Rule 515-3-4-.03(b);

3. The size and type of facilities which are expected to be owned or operated in whole or in part or to be removed from service as specifically required by Rule 515-3-4-.04;

4. Practical alternatives to the fuel type and method of generation of the proposed electric generating facilities and set forth in detail the reasons for selecting the fuel type and method of generation;

5. A statement of the estimated impact of proposed and alternative generating plants on the environment and the means by which potential adverse impacts will be avoided or minimized;

6. An adequate demonstration of the economic, environmental, and other benefits to the state and to customers of the utility, associated with the possible measures and sources of supply including; improvements in energy efficiency; pooling of power; purchases of power from neighboring states; facilities which operate on alternative sources of energy; facilities which operate on the principal of cogeneration or hydro-generation; and other generation facilities and demand-side options;

7. A description of the utility's relationship to other utilities in regional associations, power pools, and networks;

8. An identification and description of all major research projects and programs which will continue or commence in the succeeding three years and set forth the reasons for selecting specific areas of research;

9. Identify and describe existing and planned programs and policies to discourage inefficient and excessive use of power;

10. Net present value of the revenue requirement, including all direct utility costs associated with the resource to measure economics of utility service;

11. Net present value of the participant's direct costs;

12. Impact on the utility system and its customers, including non-price criteria such as operating performance of the resource, and ability to meet energy service needs of customers; and

13. Impact on utility transmission and distribution system requirements, including additional long-term facilities and operating procedures required.

(c) The utility shall describe the criteria used in developing its integrated resource plan; and

(d) The utility shall conduct an analysis of the sensitivity of all major assumptions and estimates used in its integrated resource plan. This analysis shall at a minimum include:
1. Forecast of load;

2. In-service dates of supply and demand resources;

3. Unit availability;

4. Fuel prices;

5. Inflation in plant construction costs and costs of capital;

6. Availability and costs of purchased power;

7. Pending federal or state legislation or regulation; and

8. Rate Impact Analysis.

(2) Power Pooling and Coordination.

(a) The utility will document how its plan, subject to FERC requirements has taken, advantage of the economic, environmental, and other benefits to the state and to customers of the utility associated with cooperative planning and coordination of pooling of power; and

(b) The utility shall describe and justify its reserve margin requirement for the planning period, and set forth the method used to determine the appropriate reserve margin.

(3) Financial Information.

(a) The financial assumptions and models used in the plan shall be described. The plan shall include at a minimum the following financial information, together with supporting documentation and justification:
1. The general rate of inflation;

2. The AFUDC rates used in the plan;

3. The cost of capital rates used in the plan (debt, equity, and weighted) and the assumed capital structure;

4. The discount rates used in the calculations to determine present worth;

5. The tax rates used in the plan.

6. Present worth of revenue requirements for the plan;

7. Nominal revenue requirements by year;

8. Average system rates per kWh by year; and

9. An overall assessment of the business and financial risks associated with the plan including the identification of appropriate financial measures by year.

(4) Commission Determination. The Commission shall determine which combinations of resource options passing the screening test best serve the public interest considering economics, safety, reliability, flexibility, risk, equity among ratepayers and classes, customer bills, externalities and other factors the Commission deems appropriate.

(5) The Plan. Every six months after the approval of the integrated resource plan, the utility shall submit to the Commission and other parties to the proceeding a progress report of the actions taken and expenditures incurred to implement the plan. This report shall compare the expenditures budgeted and incurred, the actions proposed and taken, and explain any significant deviations from the utility's plan. If the utility has not complied with a specific provision of its most recently approved plan, the utility should include in its report an explanation of why it has not yet complied with the provision in question. This explanation should also include the utility intended actions over the next six-month period with respect to this provision. Any party of record may request the Commission hold a hearing on the report.

Ga. L. 1878-79 p. 125, 1907, pp. 72-81; 1922 pp. 142-147; 1975 pp. 404-412; 1991 pp. 1696-1705.

Disclaimer: These regulations may not be the most recent version. Georgia may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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