WAC 480-96-040

(1) Distributed energy resources and electrification.

(a) The integrated system plan must include assessments of a variety of distributed energy resources. These assessments must incorporate nonenergy costs and benefits not fully valued elsewhere within the integrated system plan model. Utilities must assess the effect of distributed energy resources on the large combination utility's load and operations under RCW 19.280.030 (1)(h). These assessments must follow the steps outlined in RCW 19.280.100. While the following assessments must be included, a large combination utility may combine multiple distributed energy resource types into a single assessment, provided that each distributed energy resource type is assessed consistently pursuant to this section:

(i) Conservation and demand response potential assessments - The integrated system plan must include an assessment of the commercially available conservation and efficiency resources, including demand response and load management, to achieve the conservation and energy efficiency requirements in RCW 80.86.020 (4)(e) and demand response requirements of RCW 80.86.020 (4)(g), as informed by the assessment for conservation potential under RCW 19.285.040 for the planning horizon consistent with subsection (2) of this section. Such an assessment may include, as appropriate, opportunities for the development of combined heat and power as an energy and capacity resource, currently employed and potential demand response and load management policies and programs, and currently employed and new policies and programs needed to obtain the conservation and efficiency resources. The value of recoverable waste heat resulting from combined heat and power must be reflected in analyses of cost effectiveness under this subsection. The results of this assessment must include the 10-year conservation potential used in calculating a biennial conservation target under chapter 480-109 WAC;

(ii) Energy assistance potential assessment – The integrated system plan must include distributed energy programs and mechanisms identified pursuant to RCW 19.405.120, which pertains to energy assistance and progress toward meeting energy assistance needs; and

(iii) Other distributed energy resource potential assessments – The integrated system plan must assess other distributed energy resources that may be installed by the large combination utility or its customers including, but not limited to, energy storage, electric vehicles, and photovoltaics. Any such assessment must include the effect of distributed energy resources on the large combination utility's load and operations.

(b) Electrification potential assessment – The integrated system plan must include an assessment of cost-effective electrification that encompasses the potential for geographically targeted electrification including, but not limited to, in overburdened communities, on the gas plant that is fully depreciated, or the gas plant that requires accelerating depreciation pursuant to RCW 80.86.060(1) for the gas plant subject to such electrification proposal. As part of the electrification potential assessment, geographically targeted electrification may be delineated by customer class.

(2) Supply side resources. In addition to the requirements for assessing commercially available supply side resources, the integrated system plan must provide an assessment and 20-year forecast of the availability of and requirements for regional supply-side resources to provide electricity and gas to the large combination utility's customers and to meet, as applicable, the requirements of chapter 19.405 RCW and the utility's proportional share of the state's greenhouse gas emissions reduction limits in RCW 70A.45.020.

The regional supply-side resource assessment and forecast must:

(a) Include a wide range of commercially available generating and nonconventional resources, including nonconventional gas supplies and ancillary service technologies; and

(b) Assess commercially available supply-side resources, including a comparison of the benefits and risks of purchasing electricity or gas or building new resources.

(3) Delivery system assessment. The integrated system plan must provide an assessment and 20-year forecast of the availability of and requirements for delivery system capacity to provide and deliver electricity and gas to the large combination utility's customers and to meet, as applicable, the requirements of chapter 19.405 RCW and the utility's proportional share of the state's greenhouse gas emissions reduction limits in RCW 70A.45.020.

(a) The delivery system assessment must:

(i) Identify the large combination utility's expected needs to acquire new electric and gas transmission rights, develop new, or expand or upgrade existing, delivery system facilities consistent with the requirements of RCW 80.60.020 and reliability standards;

(ii) Take into account opportunities to make more effective use of existing delivery facility capacity through improved delivery system operating practices, conservation and efficiency resources, distributed energy resources, demand response, grid modernization, nonwires solutions and nonpipeline alternatives, and other programs if applicable;

(iii) Include the large combination utility's existing gas and electric transmission capabilities and reliability, and future resource needs during the planning horizon, including identification of facilities necessary to meet future gas and electric transmission needs;

(iv) include an assessment of the capability and reliability of the gas transmission and distribution pipelines within or supplying the large combination utility's gas delivery system, and identify any necessary major categories of related investments including, but not limited to, replacements or upgrades that are included within the large combination utility's most recent pipeline replacement plan; and

(v) Identify the general location and extent of transfer capability limitations on its transmission network that may affect the future siting of resources.

(b) Nonpipeline alternatives. The integrated system plan must assess nonpipeline alternatives, including geographically targeted electrification and gas demand response, as an alternative to replacing aging gas infrastructure or expanded gas capacity.

(i) Assessments that include geographically targeted electrification may include delineation by customer class, and all assessments must involve, at a minimum:

(A) Identifying all known and planned gas infrastructure projects, including those without a fully defined scope or cost estimate, for at least the 20 years following the filing;

(B) Estimating programmatic expenses of maintaining that portion of the gas system for at least the 10 years following the filing; and

(C) Ranking all gas pipeline segments for their suitability for nonpipeline alternatives.

(ii) A large combination utility must include in its integrated system plan the location and costs of planned pipeline replacements and repairs in its assessment and treatment of geographically targeted electrification. These costs must be presented with sufficient information about their timing, location, and impetus for the commission and interested parties to understand how they fit into the larger context of the integrated system plan and its proposed resource and delivery system investments.

(4) Renewable resource integration. An assessment of methods, commercially available technologies, or facilities for integrating renewable resources including, but not limited to, battery storage and pumped storage, and addressing overgeneration events, if applicable to the large combination utility's resource portfolio. The assessment may address ancillary services.