A New Concept for Utility Integrated Resource Planning: "Start with the Customer"

Abstract

The competitive restructuring of the electric power indu str y is in-
tensifyin g pr essures for electric utilities to control cost s through im-
pro ved utilization of existing assets and by minimizing capital invest-
ment in new generation, transmission, and distribution capacity. This
art icle introduces a ne w planning approach that can provide more in-
formed bu siness de cisions, resulting in higher asset utilization, lower
ove rall costs, and enhanced customer ser vice.
Unlike traditional planning methods, which assumed captive
customer load growth, this process starts at the customer, focusing on
how the customer's energy service needs can best be met.
Expe rience garnered from utilities on four continents illustrates the
potential of this new approach to reduce capital expenditure for energ y
re sour ce additions, often at less than one-half the cost of con ventional
solu tions. By reorienting how utilities think, plan, and are internally or-
ganized , this new approach can assist utilities in making the fundamen-
tal transition to a customer-driven industr y.