WAC 480-96-050

(1) Range of forecasts. The integrated system plan must provide forecasts, for at least the next 20 years, of projected customer electricity and natural gas demand that take into account econometric data and addresses changes in the number, type, and efficiency of customer usage. In addition, the range of forecasts should include, on a consistent timeline:

(a) A forecast of DERs that may be installed by the large combination utility's customers, separately presenting those implemented through the large combination utility's programs and initiatives, and an assessment of their effect on the large combination utility's net electric load, natural gas demand, and operations.

(b) Load forecast scenarios that consider the anticipated levels of zero emissions vehicle use in the large combination utility's service area, including as provided in RCW 47.01.520, if feasible.

(2) Resource evaluation. The integrated system plan must include a comparative evaluation of all gas and electric resources including, but not limited to, supply side resources, delivery system resources, and conservation and efficiency resources using lowest reasonable cost as a criterion.

(3) Economic, health, and environmental burdens and benefits. The integrated system plan must include an assessment of energy and nonenergy benefits and reductions of burdens to named communities; long-term and short-term public health and environmental benefits, costs, energy security, and risk. The assessment should be informed by the cumulative impact analysis conducted by the department of health.

(4) Scenarios and sensitivities. The integrated system plan long-term analysis must include a range of possible future scenarios and input sensitivities for the purpose of testing the robustness of the large combination utility's resource portfolio under various parameters. The ISP must also provide a narrative description of scenarios and sensitivities the large combination utility used, including those informed by the advisory group process. The narrative description must identify the purpose for each scenario and sensitivity.

(a) At least one scenario must describe the alternative lowest reasonable cost and reasonably available portfolio that the large combination utility would have implemented if not for the requirement to comply with RCW 19.405.040 and 19.405.050, as described in WAC 480-100-660(1). This scenario's conditions and sensitivity inputs should be the same as the preferred portfolio except for those conditions and inputs that must change to account for the impact of RCW 19.405.040 and 19.405.050.

(b) All scenarios must incorporate the best science available to analyze impacts resulting from climate change such as, changes in snowpack, streamflow, rainfall, heating and cooling degree days, and load changes.

(c) At least one sensitivity must be a maximum customer benefit scenario. This sensitivity should model the maximum amount of customer benefits described in RCW 19.405.040(8) prior to balancing against other goals.

(d) The large combination utility must include scenarios that achieve emissions reductions for both gas and electric operations equal to at least their proportional share of emissions reductions required under RCW 70A.45.020.

(e) The large combination utility must include scenarios with emissions reductions targets for both gas and electric operations for each emissions reduction period that account for the interactions between gas and electric systems.

(5) Portfolio analysis and preferred portfolio. The large combination utility must integrate the demand forecasts, resource evaluations, and delivery system assessment into a long-range integrated system plan preferred portfolio describing the mix of resources that are projected to meet current and future resource needs. The large combination utility's long-range integrated system plan preferred portfolio will demonstrate how it represents a portfolio approach to system optimization across the gas and electric system and expects to:

(a) Comply with applicable state laws and policies affecting energy planning including, but not limited to, the clean energy transformation standards in WAC 480-100-610 (1) through (3) and the Climate Commitment Act in chapter 173-446 WAC, at the lowest reasonable cost;

(b) Serve large combination utility load, based on hourly electric system data and daily peak load gas system data, with the output of the large combination utility's owned resources, market purchases, and power purchase agreements, net of any off-system sales of such resources;

(c) Beginning in 2030, achieve two percent of electric load annually with conservation and energy efficiency resources, or provide an analysis that demonstrates that this is neither technically nor commercially feasible during the applicable emissions reduction period;

(d) Beginning in 2030, achieve annual demand response and demand flexibility equal to or greater than 10 percent of winter and summer peak electric demand, or provide an analysis that demonstrates that this is neither technically nor commercially feasible during the applicable emissions reduction period;

(e) Include all cost-effective, reliable, and feasible conservation and efficiency resources, using the methodology established in RCW 19.285.040, and demand response;

(f) Achieve all cost-effective electrification of end uses currently served by natural gas identified through an assessment of alternatives to known and planned gas infrastructure projects, including nonpipeline alternatives, rebates and incentives, and geographically targeted electrification;

(g) Consider acquisition of existing renewable resources;

(h) In the acquisition of new resources constructed after May 7, 2019, rely on renewable resources and energy storage, insofar as doing so is at the lowest reasonable cost;

(i) Maintain and protect the safety, reliable operation, and balancing of the large combination utility's energy system, including mitigating over-generation events and achieving the identified resource adequacy requirement;

(j) Achieve the requirements in WAC 480-100-610 (4)(c); the description should include, but is not limited to:

(i) The long-term strategy and interim steps the large combination utility will take to equitably distribute benefits and reduce burdens for named communities; and

(ii) The estimated degree to which benefits will be equitably distributed and burdens reduced over the planning horizon.

(k) Assess the environmental health impacts to named communities;

(l) Analyze and consider combinations of distributed energy resource costs, benefits, and operational characteristics including ancillary services, to meet system needs; and

(m) Incorporate the social cost of greenhouse gas emissions as a cost adder as specified in RCW 19.280.030(3) and 80.28.395 and when evaluating and selecting long-term resource options.

(6) Electrification of transportation plan. If a large combination utility chooses to file an electrification of transportation plan as described in RCW 80.28.365, it may be filed as part of an integrated system plan. If a large combination utility files an electrification of transportation plan as part of an integrated system plan, it must incorporate any associated costs, revenues, and other impacts of the electrification of transportation plan into the integrated system plan.

(7) Clean energy action plan (CEAP). The large combination utility must develop a 10-year clean energy action plan for implementing RCW 19.405.030 through 19.405.050. The CEAP must:

(a) Be at the lowest reasonable cost;

(b) Identify and be informed by the large combination utility's 10-year cost-effective conservation potential assessment as determined under RCW 19.285.040, if applicable;

(c) Identify potential programs to achieve the requirements of RCW 80.86.020 (4)(e);

(d) Identify how the large combination utility will meet the requirements in WAC 480-100-610 (4)(c) including, but not limited to:

(i) Describing the specific actions the large combination utility will take to equitably distribute benefits and reduce burdens for named communities;

(ii) Estimating the degree to which such benefits will be equitably distributed and burdens reduced over the CEAP's 10-year horizon; and

(iii) Describing how the specific actions are consistent with the long-term strategy described in subsection (5)(j) of this section.

(e) Establish a resource adequacy requirement;

(f) Identify the potential demand response and load management programs that may be acquired including those needed to achieve the requirements of RCW 80.86.020 (4)(g);

(g) Identify the potential cost-effective electrification programs that may be implemented to achieve the requirements of RCW 80.86.020 (4)(h);

(h) Identify renewable resources, nonemitting electric generation, and distributed energy resources that may be acquired and evaluate how each identified resource may be expected to contribute to meeting the large combination utility's resource adequacy requirement;

(i) Identify any need to develop new, or to expand or upgrade existing, bulk transmission and distribution facilities and document existing and planned efforts by the large combination utility to make more effective use of existing transmission capacity and secure additional transmission capacity consistent with the requirements of the ISP's delivery system assessment;

(j) Detail the large combination utility's planned capital investments in gas plant including:

(i) Proposed capital expenditures and investments by category; and

(ii) The location and costs of planned pipeline replacement and repairs, presented with sufficient information about their timing, location, and impetus for the commission and interested parties to understand how the investments fit into the larger context of the ISP and its proposed resource and delivery system investments;

(k) Identify the nature and possible extent to which the large combination utility may need to rely on alternative compliance options under RCW 19.405.040 (1)(b), if appropriate; and

(l) Incorporate the social cost of greenhouse gas emissions as a cost adder as specified in RCW 19.280.030(3) and 80.28.395.

(8) Decision framework. The large combination utility must describe its selection of the preferred portfolio considering the lowest reasonable cost required by RCW 80.86.010(22) and public interest elements required by RCW 80.86.020(12). The large combination utility will narratively describe how the cost test is a key input and contributed to its selection of the preferred portfolio within the decision framework.

(a) The decision framework must include all impacts of the cost test.

(i) Impacts that are monetized must, at minimum, be presented in cumulative present value dollars.

(ii) Impacts that are not monetized but are quantified must be presented in quantitative terms.

(iii) Impacts that are not monetized or quantified shall be described qualitatively. Any qualitative analysis used to account for impacts as defined in WAC 480-96-030 (8)(a)(ii) should be presented.

(b) The decision framework must include other relevant impacts applicable to the criteria considered in the commission's review of an ISP as required by RCW 80.86.020(12) for each of the resource portfolios analyzed.

(c) The ISP shall include a narrative description of how the decision framework was used to analyze and select the preferred portfolio. The narrative description shall include an explanation of how the preferred portfolio aligns with the public interest components pursuant to RCW 80.86.020(12).

(9) Information relating to purchases of electricity from qualifying facilities. A large combination utility is exempt from WAC 480‐106‐040 (1)(b). Each large combination utility must provide information and analysis that it will use to inform its annual filings required under chapter 480-106 WAC. The detailed analysis must include, but is not limited to, the following components:

(a) A description of the methodology used to calculate estimates of the avoided cost of energy, capacity, transmission, distribution, and emissions averaged across the large combination utility; and

(b) Resource assumptions and market forecasts used in the large combination utility's schedule of estimated avoided cost required in WAC 480-106-040 including, but not limited to, cost assumptions, production estimates, peak capacity contribution estimates and annual capacity factor estimates.

(10) Report of substantive changes. Each ISP must include a summary of substantive changes to modeling methodologies or inputs that result in changes to the large combination utility's resource need, as compared to the large combination utility's previous applicable plans.

(11) Use of recommendations. The integrated system plan must include a report on the large combination utility's progress towards implementing the recommendations contained in its previously filed integrated system plan, or previous applicable plans.

(12) Summary of public comments. A large combination utility must provide a summary of public comments received during the development of its integrated system plan and the large combination utility's responses, including whether issues raised in the comments were addressed and incorporated into the final integrated system plan as well as documentation of the reasons for rejecting any public input. The large combination utility may include the summary as an appendix to the final integrated system plan. Comments with similar content or input may be consolidated with a single large combination utility response.