Current through Register Vol. 49, No. 6, March 15, 2024
PURPOSE: This rule establishes minimum standards for
the scope and level of detail required in supply-side resource
analysis.
(1) The utility
shall evaluate all existing supply-side resources and identify a variety of
potential supply-side resource options which the utility can reasonably expect
to use, develop, implement, or acquire, and, for purposes of integrated
resource planning, all such supply-side resources shall be considered as
potential supply-side resource options. These potential supply-side resource
options include full or partial ownership of new plants using existing
generation technologies; full or partial ownership of new plants using new
generation technologies, including technologies expected to become commercially
available within the twenty (20)-year planning horizon; renewable energy
resources on the utility-side of the meter, including a wide variety of
renewable generation technologies; technologies for distributed generation;
life extension and refurbishment at existing generating plants; enhancement of
the emission controls at existing or new generating plants; purchased power
from bilateral transactions and from organized capacity and energy markets;
generating plant efficiency improvements which reduce the utility's own use of
energy; and upgrading of the transmission and distribution systems to reduce
power and energy losses. The utility shall collect generic cost and performance
information sufficient to fairly analyze and compare each of these potential
supply-side resource options, including at least those attributes needed to
assess capital cost, fixed and variable operation and maintenance costs,
probable environmental costs, and operating characteristics.
(2) The utility shall describe and document
its analysis of each potential supply-side resource option referred to in
section (1). The utility may conduct a preliminary screening analysis to
determine a short list of preliminary supply-side candidate resource options,
or it may consider all of the potential supply-side resource options to be
preliminary supply-side candidate resource options pursuant to subsection
(2)(C). All costs shall be expressed in nominal dollars.
(A) Cost rankings of each potential
supply-side resource option shall be based on estimates of the installed
capital costs plus fixed and variable operation and maintenance costs levelized
over the useful life of the potential supply-side resource option using the
utility discount rate. The utility shall include the costs of ancillary and/or
back-up sources of supply required to achieve necessary reliability levels in
connection with intermittent and/or uncontrollable sources of generation (i.e.,
wind and solar).
(B) The probable
environmental costs of each potential supply-side resource option shall be
quantified by estimating the cost to the utility to comply with additional
environmental legal mandates that may be imposed at some point within the
planning horizon. The utility shall identify a list of environmental pollutants
for which, in the judgment of the utility decision-makers, legal mandates may
be imposed during the planning horizon which would result in compliance costs
that could significantly impact utility rates. The utility shall specify a
subjective probability that represents utility decision-maker's judgment of the
likelihood that legal mandates requiring additional levels of mitigation will
be imposed at some point within the planning horizon. The utility, based on
these probabilities, shall calculate an expected mitigation cost for each
identified pollutant.
(C) The
utility shall indicate which potential supply-side resource options it
considers to be preliminary supply-side candidate resource options. Any utility
using the preliminary screening analysis to identify preliminary supply-side
candidate resource options shall rank all preliminary supply-side candidate
resource options based on estimates of the utility costs and also on utility
costs plus probable environmental costs. The utility shall-
1. Provide a summary table showing each
potential supply-side resource option and the utility cost and the probable
environmental cost for each potential supply-side resource option and an
assessment of whether each potential supply-side resource option qualifies as a
utility renewable energy resource; and
2. Explain which potential supply-side
resource options are eliminated from further consideration and the reasons for
their elimination.
(3) The utility shall describe and document
its analysis of the interconnection and any other transmission requirements
associated with the preliminary supply-side candidate resource options
identified in subsection (2)(C).
(A) The
analysis shall include the identification of transmission constraints, as
estimated pursuant to
4 CSR
240-22.045(3), whether within the
Regional Transmission Organization's (RTO's) footprint, on an interconnected
RTO, or a transmission system that is not part of an RTO. The purpose of this
analysis shall be to ensure that the transmission network is capable of
reliably supporting the preliminary supply-side candidate resource options
under consideration, that the costs of the transmission system investments
associated with preliminary supply-side candidate resource options, as
estimated pursuant to
4 CSR
240-22.045(3), are properly
considered and to provide an adequate foundation of basic information for
decisions to include, but not be limited to, the following:
1. Joint ownership or participation in
generation construction projects;
2. Construction of wholly-owned generation
facilities;
3. Participation in
major refurbishment, life extension, upgrading, or retrofitting of existing
generation facilities;
4.
Improvements on its transmission and distribution system to increase efficiency
and reduce power losses;
5.
Acquisition of existing generating facilities; and
6. Opportunities for new long-term power
purchases and sales, and short-term power purchases that may be required for
bridging the gap between other supply options, both firm and nonfirm, that are
likely to be available over all or part of the planning horizon.
(B) This analysis shall include
the identification of any output limitations imposed on existing or new
supply-side resources due to transmission and/or distribution system capacity
constraints, in order to ensure that supply-side candidate resource options are
evaluated in accordance with any such constraints.
(4) All preliminary supply-side candidate
resource options which are not eliminated shall be identified as supply-side
candidate resource options. The supply-side candidate resource options that the
utility passes on for further evaluation in the integration process shall
represent a wide variety of supply-side resource options with diverse fuel and
generation technologies, including a wide range of renewable technologies and
technologies suitable for distributed generation.
(A) The utility shall describe and document
its process for identifying and analyzing potential supply-side resource
options and preliminary supply-side candidate resource options and for choosing
its supply-side candidate resource options to advance to the integration
analysis.
(B) The utility shall
indicate which, if any, of the preliminary supply-side candidate resource
options identified in subsection (2)(C) are eliminated from further
consideration on the basis of the interconnection and other transmission
analysis and shall explain the reasons for their elimination.
(C) The utility shall include the cost of
interconnection and any other transmission requirements, in addition to the
utility cost and probable environmental cost, in the cost of supply-side
candidate resource options advanced for purposes of developing the alternative
resource plans required by
4 CSR
240-22.060(3).
(5) The utility shall develop, and describe
and document, ranges of values and probabilities for several important
uncertain factors related to supply-side candidate resource options identified
in section (4). These cost estimates shall include at least the following
elements, as applicable to the supply-side candidate resource option:
(A) Fuel price forecasts, including fuel
delivery costs, over the planning horizon for the appropriate type and grade of
primary fuel and for any alternative fuel that may be practical as a
contingency option;
(B) Estimated
capital costs including engineering design, construction, testing, startup, and
certification of new facilities or major upgrades, refurbishment, or
rehabilitation of existing facilities;
(C) Estimated annual fixed and variable
operation and maintenance costs over the planning horizon for new facilities or
for existing facilities that are being upgraded, refurbished, or
rehabilitated;
(D) Forecasts of the
annual cost or value of emission allowances to be used or produced by each
generating facility over the planning horizon;
(E) Annual fixed charges for any facility to
be included in the rate base, or annual payment schedule for leased or rented
facilities; and
(F) Estimated costs
of interconnection or other transmission requirements associated with each
supply-side candidate resource option.
*Original authority: 386.040, RSMo 1939; 386.250, RSMo
1939, amended 1963, 1967, 1977, 1980, 1987, 1988, 1991, 1993, 1995, 1996;
386.610, RSMo 1939; and 393.140, RSMo 1939, amended 1949,
1967.
