Oregon Administrative Rules
Chapter 345 - DEPARTMENT OF ENERGY, ENERGY FACILITY SITING COUNCIL
Division 23 - NEED STANDARD FOR NONGENERATING FACILITIES
Section 345-023-0020 - Least-Cost Plan Rule
Universal Citation: OR Admin Rules 345-023-0020
Current through Register Vol. 63, No. 9, September 1, 2024
(1) The Council shall find that the applicant has demonstrated need for the facility if the capacity of the proposed facility or a facility substantially similar to the proposed facility, as defined by OAR 345-001-0010, is identified for acquisition in the short-term plan of action of an energy resource plan or combination of plans adopted, approved or acknowledged by a municipal utility, people's utility district, electrical cooperative, other governmental body that makes or implements energy policy, or electric transmission system operator that has a governance that is independent of owners and users of the system and if the energy resource plan or combination of plans:
(a) Includes a range of forecasts of firm
energy and capacity demands and committed firm energy and capacity resources,
as defined in OAR 345-001-0010, over the planning period using a reasonable
method of forecasting;
(b)
Considers and evaluates a reasonable range of practicable demand and supply
resource alternatives over the planning period on a consistent and comparable
basis. Practicable alternatives are those that are demonstrated to be
technically and economically achievable within the time frame considered to
meet potential energy or capacity needs;
(c) Uses financial assumptions, including
discount rates and treatment of resource lifetimes and end effects that are
consistent and comparable between resources;
(d) For electric transmission line
facilities, considers alternatives that include but are not limited to:
(A) Implementation of cost-effective
conservation, peak load management and voluntary customer interruption as a
substitute for the proposed facility;
(B) Construction and operation of electric
generating facilities as a substitute for the proposed facility;
(C) Direct use of natural gas, solar or
geothermal resources at retail loads as a substitute for use of electricity
transmitted by the proposed facility; and
(D) Adding standard sized smaller or larger
transmission line capacity;
(e) For natural gas pipeline facilities,
considers alternatives that include but are not limited to:
(A) Implementation of cost-effective
conservation, peak load management and voluntary customer interruption as a
substitute for the proposed facility;
(B) Installation of propane storage systems,
facilities to store liquefied natural gas and underground gas storage
reservoirs as a substitute for the proposed facility;
(C) Direct use of electricity, solar or
geothermal resources at retail loads as a substitute for use of natural gas
supplied by the proposed facility; and
(D) Adding standard sized smaller or larger
pipeline capacity;
(f)
For storage facilities for liquefied natural gas, considers alternatives that
include, but are not limited, to:
(A)
Implementation of cost-effective conservation, peak load management and
voluntary customer interruption as a substitute for the proposed
facility;
(B) Installation of
propane storage systems, natural gas pipelines and underground gas storage
facilities as a substitute for the proposed facility;
(C) Direct use of electricity, solar or
geothermal resources at retail loads as a substitute for use of natural gas
supplied by the proposed facility; and
(D) Adding smaller or larger liquefied
natural gas storage capacity;
(g) Includes the development and evaluation
of alternative resource plans to meet forecast energy or capacity needs over
the planning time period;
(h)
Analyzes the uncertainties associated with alternative resource plans or
strategies. The range of uncertainties about the future must be sufficient to
test the performance of each alternative resource strategy. The criteria used
to evaluate performance of alternative resource strategies must be broad enough
to judge the merits of a strategy from a societal perspective;
(i) Aims to minimize long-run total resource
costs while taking into account reliability, compatibility with the energy
system, strategic flexibility, as defined in OAR 345-001-0010, and external
environmental costs and benefits. The value provided by reliability,
compatibility with the energy system, strategic flexibility and external
environmental costs and benefits may justify actions that increase the total
resource cost of the plan. The Council finds that the goals of a least-cost
plan are to minimize expected total resource costs for society and the variance
in those costs due to uncertainty about future conditions;
(j) Includes a short-term plan of
action;
(k) Is consistent with the
energy policy of the state as set forth in ORS
469.010. An energy resource plan
is consistent with the energy policy of the stateif its short-term plan of
action describes actions that must be taken within a two to three year time
frame to provide a reasonable assurance that future energy or capacity demands
can be met while aiming to minimize total resource cost; and
(L) Was adopted, approved or acknowledged
after a full, fair and open public participation and comment process. Such a
process is one in which the public has reasonable and timely access to the
decision-maker and to information and records legally available to the
public.
(2) The Council shall find that a least-cost plan meets the criteria of an energy resource plan described in section (1) if the Public Utility Commission of Oregon has acknowledged the least cost plan.
Stat. Auth.: ORS 469.470 & 469.501
Stats. Implemented: ORS 469.501
Disclaimer: These regulations may not be the most recent version. Oregon 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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