Current through Register Vol. 39, No. 6, September 16, 2024
(a) Purpose. -
The purpose of this rule is to implement the provisions of
G.S.
62-2(3a) and
G.S.
62-110.1 with respect to least cost
integrated resource planning by the utilities in North Carolina.
(b) Applicability. - This rule is applicable
to Duke Energy Progress, Inc.; Duke Energy Carolinas, LLC; and Virginia
Electric and Power Company, d/b/a Dominion North Carolina Power.
(c) Integrated Resource Plan. - Each utility
shall develop and keep current an integrated resource plan, which incorporates,
at a minimum, the following:
(1) a 15-year
forecast of native load requirements (including any off-system obligations
approved for native load treatment by the Commission) and other system capacity
or firm energy obligations extending through at least one summer or winter peak
(other system obligations); supply-side (including owned/leased generation
capacity and firm purchased power arrangements) and demand-side resources
expected to satisfy those loads; and the reserve margin thus produced;
and
(2) a comprehensive analysis of
all resource options (supply-and demand-side) considered by the utility for
satisfaction of native load requirements and other system obligations over the
planning period, including those resources chosen by the utility to provide
reliable electric utility service at least cost over the planning period.
Each utility shall include an assessment of demand-side
management and energy efficiency in its integrated resource plan.
G.S.
62-133.9(c). In addition,
each utility's consideration of supply-side and demand-side resources,
including alternative supply-side energy resources, and the provision of
reliable electric utility service at least cost shall appropriately consider
and incorporate the utility's obligation to comply with the Renewable Energy
and Energy Efficiency Portfolio Standard (REPS).
G.S.
62-133.8.
(d) Purchased Power. - As part of its
integrated resource planning process, each utility shall assess on an on-going
basis the potential benefits of soliciting proposals from wholesale power
suppliers and power marketers to supply it with needed capacity.
(e) Alternative Supply-Side Energy Resources.
- As part of its integrated resource planning process, each utility shall
assess on an on-going basis the potential benefits of reasonably available
alternative supply-side energy resource options. Alternative supply-side energy
resources include, but are not limited to, hydro, wind, geothermal, solar
thermal, solar photovoltaic, municipal solid waste, fuel cells, and
biomass.
(f) Demand-Side
Management. - As part of its integrated resource planning process, each utility
shall assess on an on-going basis programs to promote demand-side management,
including costs, benefits, risks, uncertainties, reliability and customer
acceptance, where appropriate. For purposes of this rule, demand-side
management consists of demand response programs and energy efficiency and
conservation programs.
(g)
Evaluation of Resource Options. - As part of its integrated resource planning
process, each utility shall consider and compare a comprehensive set of
potential resource options, including both demand-side and supply-side options,
to determine an integrated resource plan that offers the least cost combination
(on a long-term basis) of reliable resource options for meeting the anticipated
needs of its system. The utility shall analyze potential resource options and
combinations of resource options to serve its system needs, taking into account
the sensitivity of its analysis to variations in future estimates of peak load,
energy requirements, and other significant assumptions, including, but not
limited to, the risks associated with wholesale markets, fuel costs,
construction/implementation costs, transmission and distribution costs, and
costs of complying with environmental regulation. Additionally, the utility's
analysis should take into account, as applicable, system operations,
environmental impacts, and other qualitative factors.
(h) Filings.
(1) By September 1, 2008, and every two years
thereafter, each utility subject to this rule shall file with the Commission
its then current integrated resource plan, together with all information
required by subsection (i) of this rule. This biennial report shall cover the
next succeeding two-year period.
(2) By September 1 of each year in which a
biennial report is not required to be filed, an update report shall be filed
with the Commission containing an updated 15-year forecast of the items
described in subparagraph (c)(1), as well as a summary of any significant
amendments or revisions to the most recently filed biennial report, including
amendments or revisions to the type and size of resources identified, as
applicable.
(3) Each biennial and
update report filed shall be accompanied by a short-term action plan that
discusses those specific actions currently being taken by the utility to
implement the activities chosen as appropriate per the applicable biennial and
update reports.
(4) Each biennial
and update report shall include the utility's REPS compliance plan pursuant to
Rule R8-67(b).
(5) If a utility
considers certain information in its biennial or update report to be
proprietary, confidential, and within the scope of
G.S.
132-1.2, the utility may designate the
information as "confidential" and file it under seal.
(i) Contents of Biennial Reports. - Each
utility shall include in each biennial report the following:
(1) Forecasts of Load, Supply-Side Resources,
and Demand-Side Resources. The forecasts filed by each utility as part of its
biennial report shall include descriptions of the methods, models, and
assumptions used by the utility to prepare its peak load (MW) and energy sales
(MWh) forecasts and the variables used in the models. In the biennial reports,
the forecasts filed by each utility shall include, at a minimum, the following:
(i) The most recent ten-year history and a
forecast of customers by each customer class, the most recent ten-year history
and a forecast of energy sales (MWh) by each customer class, and the most
recent ten-year history and a forecast of the utility's summer and winter peak
load (MW);
(ii) A tabulation of the
utility's forecast for at least a 15-year period, including peak loads for
summer and winter seasons of each year, annual energy forecasts, reserve
margins, and load duration curves, with and without projected supply or
demand-side resource additions. The tabulation shall also indicate the
projected effects of demand response and energy efficiency programs and
activities on the forecasted annual energy and peak loads on an annual basis
for a 15-year period, and these effects also may be reported as an equivalent
generation capacity impact; and
(iii) Where future supply-side resources are
required, a description of the type of capacity/resource (MW rating, fuel
source, base, intermediate, or peaking) that the utility proposes to use to
address the forecasted need.
(2) Generating Facilities. - Each utility
shall provide the following data for its existing and planned electric
generating facilities (including planned additions and retirements, but
excluding cogeneration and small power production):
(i) Existing Generation. - The utility shall
provide a list of existing units in service, with the information specified
below for each listed unit. The information shall be provided for a 15-year
period beginning with the year of filing:
a.
Type of fuel(s) used;
b. Type of
unit (e.g., base, intermediate, or peaking);
c. Location of each existing unit;
d. A list of units to be retired from service
with location, capacity and expected date of retirement from the
system;
e. A list of units for
which there are specific plans for life extension, refurbishment or upgrading.
The reporting utility shall also provide the expected (or actual) date removed
from service, general location, capacity rating upon return to service,
expected return to service date, and a general description of work to be
performed; and
f. Other changes to
existing generating units that are expected to increase or decrease generation
capability of the unit in question by an amount that is plus or minus 10%, or
10 MW, whichever is greater.
(ii) Planned Generation Additions. - Each
utility shall provide a list of planned generation additions, the rationale as
to why each listed generation addition was selected, and a 15-year projection
of the following for each listed addition:
a.
Type of fuel(s) used;
b. Type of
unit (e.g. MW rating, baseload, intermediate, peaking);
c. Location of each planned unit to the
extent such location has been determined; and
d. Summaries of the analyses supporting any
new generation additions included in its 15-year forecast, including its
designation as base, intermediate, or peaking capacity.
(iii) Non-Utility Generation. - Each utility
shall provide a separate and updated list of all non-utility electric
generating facilities in its service areas, including customer-owned and
stand-by generating facilities. This list shall include the facility name,
location, primary fuel type, and capacity (including its designation as base,
intermediate, or peaking capacity). The utility shall also indicate which
facilities are included in its total supply of resources. If any of this
information is readily accessible in documents already filed with the
Commission, the utility may incorporate by reference the document or documents
in its report, so long as the utility provides the docket number and the date
of filing.
(3) Reserve
Margins. - The utility shall provide a calculation and analysis of its winter
and summer peak reserve margins over the projected 15-year period. To the
extent the margins produced in a given year differ from target reserve margins
by plus or minus 3%, the utility shall explain the reasons for the
difference.
(4) Wholesale Contracts
for the Purchase and Sale of Power.
(i) The
utility shall provide a list of firm wholesale purchased power contracts
reflected in the biennial report, including the primary fuel type, capacity
(including its designation as base, intermediate, or peaking capacity),
location, expiration date, and volume of purchases actually made since the last
biennial report for each contract.
(ii) The utility shall discuss the results of
any Request for Proposals (RFP) for purchased power it has issued since its
last biennial report. This discussion shall include a description of each RFP,
the number of entities responding to the RFP, the number of proposals received,
the terms of the proposals, and an explanation of why the proposals were
accepted or rejected.
(iii) The
utility shall include a list of the wholesale power sales contracts for the
sale of capacity or firm energy for which the utility has committed to sell
power during the planning horizon, the identity of each wholesale entity to
which the utility has committed itself to sell power during the planning
horizon, the number of megawatts (MW) on an annual basis for each contract, the
length of each contract, and the type of each contract (e.g., native load
priority, firm, etc.).
(5) Transmission Facilities. - Each utility
shall include a list of transmission lines and other associated facilities (161
kV or over) which are under construction or for which there are specific plans
to be constructed during the planning horizon, including the capacity and
voltage levels, location, and schedules for completion and operation. The
utility shall also include a discussion of the adequacy of its transmission
system (161 kV and above).
(6)
Demand-Side Management. - Each utility shall provide the results of its overall
assessment of existing and potential demand-side management programs, including
a descriptive summary of each analysis performed or used by the utility in the
assessment. The utility also shall provide general information on any changes
to the methods and assumptions used in the assessment since its last biennial
report.
(i) For demand-side programs available
at the time of the report, the utility shall provide the following information
for each resource: the type of resource (demand response or energy efficiency);
the capacity and energy available in the program; number of customers enrolled
in each program; the number of times the utility has called upon the resource;
and, where applicable, the capacity reduction realized each time since the
previous biennial report. The utility shall also list any demand-side resource
it has discontinued since its previous biennial report and the reasons for that
discontinuance.
(ii) For
demand-side management programs it proposes to implement within the biennium
for which the report is filed, the utility shall provide the following
information for each resource: the type of resource (demand response and energy
efficiency); a description of the new program and the target customer segment;
the capacity and energy expected to be available from the program; projected
customer acceptance; the date the program will be launched; and the rationale
as to why the program was selected.
(iii) For programs evaluated but rejected the
utility shall provide the following information for each resource considered:
the type of resource (demand response or energy efficiency); a description of
the program and the target customer segment; the capacity and energy available
from the program; projected customer acceptance; and reasons for the program's
rejection.
(iv) For consumer
education programs the utility shall provide a comprehensive list of all such
programs the utility currently provides to its customers, or proposes to
implement within the biennium for which the report is filed, including a
description of the program, the target customer segment, and the utility's
promotion of the education program. The utility shall also provide a list of
any educational program it has discontinued since its last biennial report and
the reasons for discontinuance.
(7) Assessment of Alternative Supply-Side
Energy Resources. - The utility shall include its current overall assessment of
existing and potential alternative supply-side energy resources, including a
descriptive summary of each analysis performed or used by the utility in the
assessment. The utility shall also provide general information on any changes
to the methods and assumptions used in the assessment since its most recent
biennial or update report.
(i) For the
currently operational or potential future alternative supply-side energy
resources included in each utility's plan, the utility shall provide
information on the capacity and energy actually available or projected to be
available, as applicable, from the resource. The utility shall also provide
this information for any actual or potential alternative supply-side energy
resources that have been discontinued from its plan since its last biennial
report and the reasons for that discontinuance.
(ii) For alternative supply-side energy
resources evaluated but rejected, the utility shall provide the following
information for each resource considered: a description of the resource; the
potential capacity and energy associated with the resource; and the reasons for
the rejection of the resource.
(8) Evaluation of Resource Options. - Each
utility shall provide a description and a summary of the results of its
analyses of potential resource options and combinations of resource options
performed by it pursuant to subsection (g) of this rule to determine its
integrated resource plan.
(9)
Levelized Busbar Costs. - Each utility shall provide information on levelized
busbar costs for various generation technologies.
(j) Contents of Update Reports. - In addition
to the information required by sections (h)(2)-(4) of this rule, each utility
shall include in its update report data and tables that provide the following
data for the planning horizon:
(1) the
information required by sections (i)(1) and (2) of this rule, including the
utility's load forecast adjusted for the impacts of any new energy efficiency
programs, existing generating capacity with planned additions, uprates,
derates, and retirements, planned purchase contracts, undesignated future
resources identified by type of generation and MW rating, renewable capacity,
demand-side management capacity, and any resource gap; (2) cumulative resource
additions necessary to meet load obligation and reserve margins; and (3)
projections of load, capacity, and reserves for both the summer and winter
periods. A total system IRP may be filed in lieu of an update report for
purposes of compliance with this section.
(k) Review of Biennial Reports. - Within 150
days after the later of either September 1 or the filing of each utility's
biennial report, the Public Staff or any other intervenor may file an
integrated resource plan or report of its own as to any utility or may file an
evaluation of or comments on the reports filed by the utilities, or both. The
Public Staff or any intervenor may identify any issue that it believes should
be the subject of an evidentiary hearing. Within 60 days after the filing of
initial comments, the parties may file reply comments addressing any
substantive or procedural issue raised by any other party. A hearing to address
issues raised by the Public Staff or other intervenors may be scheduled at the
discretion of the Commission. The scope of any such hearing shall be limited to
such issues as identified by the Commission. One or more hearings to receive
testimony from the public, as required by law, shall be set at a time and place
designated by the Commission.
(l)
Review of Update Reports. - Within 60 days after the filing of each utility's
update report required by section (j) of this rule, the Public Staff or any
other intervenor may file an update report of its own as to any utility.
Further, within the same time period the Public Staff shall report to the
Commission whether each utility's update report meets the requirements of this
rule. Intervenors may request leave from the Commission to file comments.
Comments will be received or expert witness hearings held on the update reports
only if the Commission deems it necessary. The scope of any comments or expert
witness hearing shall be limited to issues identified by the Commission. One or
more hearings to receive testimony from the public, as required by law, shall
be set at a time and place designated by the Commission.
(m) By November 30 of each year, each utility
individually or jointly shall hold a meeting to review its biennial or update
report with interested parties.
NCUC Docket No. E-100,
Sub 54, 12/8/88; NCUC Docket No. E-100, Sub 78A, 04/29/98; 08/11/98; NCUC
Docket No. M-100, Sub 128, 10/27/99; NCUC Docket No. E-100, Sub 113, 2/29/08;
NCUC Docket No. E-100, Sub 113, 3/13/08; NCUC Docket No. E-100, Sub 126,
4/11/2012; NCUC Docket No. M-100, Sub 140, 12/03/13; NCUC Docket No.E-100, Sub
111, 7/20/2015; NCUC Docket No. E-100, Sub 126, 6/13/2016; NCUC Docket Nos.
E-100, Subs 126 & 157; 11/13/2019.
