(1) Utilities should optimize demand- and supply-side resources by applying process planning cycles such as those illustrated in Figure 1 below.

(2) The optimization process should extend to the utility's reserve requirement. Regardless of participation in reserve margin pooling groups, utilities should analyze their reserve margins as part of their least cost planning efforts.

(3) The utility's application of the process planning cycles should be thoroughly documented so that it can be reasonably understood by groups contributing to it, as well as by the commission and interested persons.

(4) Each utility should maintain a broad-based advisory body (e.g., customers and public interest organizations) to review, evaluate and recommend modifications to planning processes, resource plans, resource acquisition processes and efficiency programs. Maintaining an effective advisory body may require the utility to provide funding for member technical support.

Figure 1: Least Cost Planning Optimization Process Example




History: 69-3-103, MCA; IMP, 69-3-102, 69-3-106(1), 69-3-201, MCA, ARM 38.5.2001; NEW, 1992 MAR p. 2764, Eff. 12/25/92.