Integrating Demand Side Resource Evaluations in Resource Planning--An Industry Turning Point

The electric and gas industry is at a crossroads in its view of Demand-Side Resources (DSR). The costs of traditional approaches to meeting future energy needs may no longer be economic or acceptable due to fundamental changes in fossil fuel markets, environmental concerns, and the large investments needed for industry infrastructure. This investment includes generation, transmission, and fuel supply infrastructure (e.g., gas pipelines and rail lines). In addition, sizeable compliance costs associated with carbon mitigation and other environmental requirements are likely to increase in the future. The risks of pursuing traditional energy supply strategies have never been higher, and demand-side activities can have an important role in managing the risks associated with the cost of energy (i.e., reasonable rates) and its availability. This paper extends work being done on integrating DSR within resource planning processes.