WAC 480-96-030

(1) This section outlines key planning assumptions, inputs, constraints, and process elements that will guide the development of, and apply to all sections of the ISP, unless specified otherwise. Plan elements that cross between long-term planning and implementation planning as well as plan elements that cross between the gas system and the electric system are captured under integrated assessment and planning requirements.

(2) Requirement to use iterative analysis. The large combination utility will utilize an iterative modeling framework and ISP development process that leads to an integrated plan in which the gas and electric systems are considered in conjunction with one another to achieve the ISP objectives. The large combination utility will clearly describe the modeling framework and steps in the modeling process it will use to develop the ISP and resulting action plans. The description will indicate how the framework effectuates integration across gas and electric systems, including identifying feedback loops between steps in the framework and where there are opportunities for iteration, adjustments, and optimization across gas and electric systems throughout the modeling process.

(3) Using social cost of greenhouse gas emissions. A large combination utility shall consider the social cost of greenhouse gas emissions, as determined by the commission pursuant to RCW 80.28.395 and 80.28.405, when developing integrated system plans and clean energy action plans. A large combination utility must incorporate the social cost of greenhouse gas emissions as a cost adder when:

(a) Evaluating and selecting conservation policies, programs, and targets;

(b) Developing integrated system plans and clean energy action plans; and

(c) Evaluating and selecting intermediate term and long-term resource options.

(4) Conservation and energy efficiency planning requirements. Beginning in 2030, a large combination utility shall achieve two percent of electric load annually with conservation and energy efficiency resources, unless the commission finds that a higher target is cost-effective. However, the commission may accept a lower level of achievement if it determines that the requirement in this subsection is neither technically nor commercially feasible during the applicable emissions reduction period.

(5) Demand response and demand flexibility planning requirements. Beginning in 2030, a large combination utility shall achieve annual demand response and demand flexibility equal to or greater than 10 percent of winter and summer peak electric demand, unless the commission finds that a higher target is cost-effective. However, the commission may accept a lower level of achievement if it determines that the requirement in this subsection is neither technically nor commercially feasible during the applicable emissions reduction period.

(6) Emission reduction planning requirements. In developing the ISP, a large combination utility shall include analysis of how different portfolios and actions contribute to achievement of emissions reductions for both gas and electric operations equal to at least their proportional share of emissions reductions required under RCW 70A.45.020.

(7) Resource adequacy requirement and metric(s). The integrated system plan must identify a resource adequacy requirement and measurement metrics consistent with RCW 19.405.030 through 19.405.050. The resource adequacy requirement and measurement metrics shall be used for prospectively assessing whether the large combination utility has adequate resources to meet energy system demand.

(8) Cost test. Pursuant to RCW 80.86.020(9), each large combination utility must use the cost test for the purpose of determining the lowest reasonable cost of decarbonization and electrification measures in integrated system plans, at the portfolio level. Each large combination utility must use the cost test as a key input in the selection of its preferred portfolio per WAC 480-96-050(7), and as an input to the commission's determination on whether the ISP is in the public interest pursuant to WAC 480-96-080(6). The cost test must account for societal cost and rate impact components consistent with the requirements below:

(a) The societal cost component must, to the extent practicable, account for societal impacts for each applicable year of the study period, including the following:

(i) Utility system impacts:

(A) Forecasted planning-level large combination utility electric revenue requirements that account for all material impacts on the electric utility system.

(B) Forecasted planning‐level large combination utility gas revenue requirements that account for all material impacts on the gas utility system.

(C) Forecasted planning‐level utility system revenue requirements shall account for, at a minimum, market volatility risk, resource uncertainties, resource dispatchability, resource effect on system operation, and the risks imposed on the utility and its ratepayers.

(ii) Nonutility system societal impacts:

(A) Host customer impacts, where applicable;

(B) Greenhouse gas emission externality costs;

(C) Other environmental impacts;

(D) Health and safety impacts;

(E) Reliability impacts;

(F) Resilience impacts;

(G) Security of supply;

(H) Economic development;

(I) Equity impacts as required in WAC 480-96-050 (5)(j) and (7)(d)(iii);

(J) Other fuels. Other fuels shall include all fuels sold by the large combination utility including, but not limited to, propane, wood, gasoline, and diesel;

(K) A risk reduction premium that must account for the applicable allowance ceiling prices approved by the department of ecology pursuant to the Climate Commitment Act, chapter 70A.65 RCW.

(b) The rate impact component must indicate the extent to which each portfolio increases or decreases forecasted rates on average for each applicable year of the study period. Forecasted average rate impacts must be presented separately for the electric utility system in dollars per kilowatt‐hour and the gas utility system in dollars per therm.

(c) Treatment of impacts. To the extent practicable, each large combination utility should present the following in the decision framework, pursuant to WAC 480-96-050(8):

(i) Any costs and benefits that are monetized should be presented in terms of present value dollars and will be used to estimate net costs. Impacts that will be accounted for using monetized values should be identified through engagement and consultation with the commission, its advisory groups, and the public.

(ii) Impacts that are not monetized at the time an ISP is conducted should be presented in either quantitative or qualitative terms to the extent practicable. The large combination utility shall document and justify why these impacts are presented either quantitatively or qualitatively.

(iii) Impacts that each large combination utility determines should not be monetized and added to the monetized impacts must be presented separately in the decision framework. These include, but are not limited to, rate impacts, bill impacts, economic development impacts, and equity impacts. Each large combination utility shall determine, through engagement and consultation with the commission, its advisory groups, and the public, how to account for the above-listed impacts.

(9) The ISP must meet the requirements of WAC 480-100-675.