(1) In order to satisfy its default supply responsibilities, a DSU should pursue the following objectives in assembling and managing an electricity supply portfolio. The DSU should:

(a) provide default supply customers adequate and reliable default supply services, stably and reasonably priced, at the lowest long-term total cost;

(b) design rates for default supply service that are equitable and promote rational, economically efficient consumption and customer choice decisions;

(c) assemble and maintain a balanced, environmentally responsible portfolio of power supply and demand-side management resources coordinated with economically efficient cost allocation and rate design that most efficiently supplies firm, full electricity supply service to default supply customers over the planning horizon;

(d) maintain an optimal mix of demand-side management and power supply sources with respect to underlying fuels, generation technologies and associated environmental impacts, and a diverse mix of long, medium and short duration power supply contracts with staggered start and expiration dates; and

(e) maximize the dissemination of information to default customers regarding the mix of resources and the corresponding level of emissions and other environmental impacts associated with default supply service through itemized labeling and reporting of the default supply portfolio's energy products.

(2) These objectives are listed in order of importance, but no single objective should be pursued such that others are ignored. Simultaneously achieving these multiple objectives will require a balanced approach. A DSU should apply the recommendations in ARM 38.5.8209 through 38.5.8213, 38.5.8218 through 38.5.8221, 38.5.8225, and 38.5.8226, in addition to relevant commission orders, to achieve these goals and objectives.