WAC 480-96-060

(1) Interim targets.

(a) Each utility must propose a series of interim targets that:

(i) Demonstrate how the utility will make reasonable progress toward meeting the standards identified in WAC 480-100-610 (2) and (3);

(ii) Are consistent with WAC 480-100-610(4); and

(iii) Demonstrate compliance with state laws and policies.

(b) Each utility must propose interim targets in the form of the percent of forecasted retail sales of electricity supplied by nonemitting and renewable resources prior to 2030 and from 2030 through 2045.

(c) Each interim target must be informed by the utility's historic performance under median water conditions and the specific targets under subsection (2) of this section.

(2) Specific targets.

(a) Each large combination utility must propose specific targets for energy efficiency, demand response, renewable energy, and emissions reduction.

(i) Energy efficiency. The large combination utility's energy efficiency target must represent achieving two percent of electric load annually with conservation and energy efficiency resources, unless the commission finds that a higher target is cost effective. The energy efficiency target must encompass all other energy efficiency and conservation targets and goals the commission requires the utility to meet. The specific energy efficiency target must be described in the utility's biennial conservation plan required in chapter 480-109 WAC. The utility must provide forecasted distribution of energy and nonenergy costs and benefits.

(ii) Demand response. The large combination utility's demand response target must represent annual demand response and demand flexibility achieving at least 10 percent of winter and summer peak electric demand, unless the commission finds that a higher target is cost effective. The large combination utility must provide proposed program details, program budgets, measurement and verification protocols, target calculations, and forecasted distribution of energy and nonenergy costs and benefits for the utility's demand response target.

(iii) Renewable energy. The large combination utility must propose the renewable energy target as the percent of retail sales of electricity supplied by renewable resources and must provide details of renewable energy projects or programs, program budgets as applicable, and forecasted distribution of energy and nonenergy costs and benefits.

(iv) Cost-effective electrification. The large combination utility's electrification target must represent achieving 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.

(b) The large combination utility must provide a description of the technologies, data collection, processes, procedures, and assumptions the utility used to develop the targets in this subsection. The utility must make data input files that are used to determine relevant targets available in native format and in an easily accessible format as an appendix.

(3) Customer benefit data. Each integrated system plan implementation section must:

(a) Identify highly impacted communities using the cumulative impact analysis pursuant to RCW 19.405.140 combined with census tracts at least partially in Indian country;

(b) Identify vulnerable populations based on adverse socioeconomic factors and sensitivity factors developed through the advisory group process and public participation plan described in WAC 480-96-080, describing and explaining any changes from the utility's most recently approved CEIP or integrated system plan as applicable;

(c) Identify overburdened communities in accordance with RCW 70A.65.010;

(d) Include all customer benefit indicators, whether existing, proposed, or updated, and associated weighting factors related to WAC 480-100-610 (4)(c) including, at a minimum, one or more customer benefit indicators associated with energy benefits, nonenergy benefits, reduction of burdens, public health, environment, reduction in cost, reduction in risk, energy security, and resiliency. Customer benefit indicators and weighting factors must be developed consistent with the advisory group process and public participation plan described in WAC 480-96-080. The utility should describe and explain any proposed changes in customer benefit indicators or weighting factors from its most recently approved CEIP or ISP; and

(e) Include an assessment, informed by the cumulative impact analysis conducted under RCW 19.405.140, of: Energy and nonenergy benefits and the avoidance and reductions of burdens to named communities; long-term and short-term public health and environmental benefits, costs, and risks; and energy security and risk.

(4) Specific actions. Each integrated system plan implementation section must include the specific gas and electric system actions the utility will take over the implementation period. The specific actions must meet and be consistent with the clean energy transformation standards and other state laws and regulations affecting energy planning. Taken together, the specific actions must represent a portfolio approach to investment plan optimization.

(a) Each integrated system plan implementation section must present the specific actions in a tabular format that provides the following information for each specific action:

(i) The general location, if applicable, proposed timing, and estimated cost of each specific action or remaining resource need, including whether the resource will be located in highly impacted communities, will be governed by, serve, or otherwise benefit named communities in part or in whole;

(ii) Metrics related to resource adequacy including contributions to capacity or energy needs; and

(iii) Customer benefit indicator values for every customer benefit indicator described in subsection (3)(d) of this section. If a customer benefit indicator value is not applicable to a specific action, the utility shall indicate that instead.

(b) The specific actions of an integrated system plan must include low-income electrification programs that:

(i) Include rebates and incentives to low-income customers and customers experiencing high energy burden for the deployment of high-efficiency electric-only heat pumps in homes and buildings currently heating with wood, oil, propane, electric resistance, or gas;

(ii) Provide demonstrated material benefits to low-income participants including, but not limited to, decreased energy burden, the addition of air conditioning and backup heat sources or energy storage systems, if necessary to protect health and safety in areas with frequent outages, or improved indoor air quality;

(iii) Enroll customers in energy assistance programs or provide bill assistance;

(iv) Provide dedicated funding for electrification readiness;

(v) Evaluate if participation will increase the household's energy burden, and if so, obtain explicit customer consent on a simple form with easy reading comprehension;

(vi) Include low-income customer protections to mitigate energy burden, if electrification measures will increase a low-income participant's energy burden; and

(vii) Coordinate with community-based organizations in the gas or electrical company's service territory including, but not limited to, grantees of the department of commerce, community action agencies, and community-based nonprofit organizations, to remove barriers and effectively serve low-income customers.

(c) If a large combination utility files an electrification of transportation plan as part of the integrated system plan, the programs described in RCW 80.28.365 must be included as specific actions.

(d) When an integrated system plan of a large combination utility proposes geographically targeted electrification of all or a portion of a service area in which the large combination utility provides gas service and one or more consumer-owned utilities provide electric service to such a service area, the integrated system plan of the large combination utility must include a process for outreach by the large combination utility to all consumer-owned utilities providing electric service to such a service area. The large combination utility shall provide gas delivery data of sufficient granularity for the consumer-owned electric company to assess the sufficiency of the capacity of the electric distribution system to accommodate the additional load from electrification at the circuit level. This data must be provided at least as part of the ISP filing prior to the ISP in which the utility intends to take the proposed electrification actions. This will allow affected consumer-owned electric companies sufficient time to upgrade electrical distribution equipment and materials as needed to preserve system reliability. When a large combination utility proposes geographically targeted electrification in an integrated system plan, it has the burden of clearly demonstrating that it exercised impartial treatment toward the electrification of gas customers that are within the large combination utility's combined electric and gas service territory, and the customers in its gas-only service territory.

(5) Narrative description of specific actions. Each integrated system plan implementation section must describe how the specific actions:

(a) Demonstrate progress toward meeting the standards identified in WAC 480-100-610 (2) and (3) and other state laws and regulations affecting energy planning.

(b) Demonstrate consistency with the standards identified in WAC 480-100-610(4) including, but not limited to:

(i) An assessment of current benefits and burdens on customers, by location and population, and the projected impact of specific actions on the distribution of customer benefits and burdens during the implementation period.

(ii) A description of how the specific actions in the ISP implementation section mitigate risks to named communities and are consistent with the longer-term strategies and actions described in the utility's most recently filed IRP or ISP long term section and CEAP as required by either WAC 480-100-620 (11)(g) and (12)(c) or WAC 480-96-050 (3) and (7)(d).

(c) Are consistent with the proposed interim and specific targets.

(d) Are consistent with the utility's resource adequacy requirements, including a narrative description of how the resources identified in the most recent resource adequacy assessment conducted or adopted by the utility demonstrates that the utility will meet its resource adequacy standard.

(e) Demonstrate how the utility is planning to meet the clean energy transformation standards and other state laws and regulations affecting energy planning at the lowest reasonable cost including, but not limited to:

(i) A description of the utility's approach to identifying the lowest reasonable cost portfolio of specific actions that meet the requirements of (a) through (e) of this subsection, including a description of its methodology for weighing considerations in WAC 480-100-610(4);

(ii) A description of the utility's methodology for selecting the investments and expenses it plans to make over the next implementation period consistent with the energy transformation standards in RCW 19.405.050 (3)(a), and a demonstration that its planned investments represent a portfolio approach to investment plan optimization; and

(iii) Supporting documentation justifying each specific action identified in the integrated system plan implementation section.

(6) Projected incremental cost. Each integrated system plan implementation section must include a projected incremental cost as outlined in WAC 480-100-660(4).

(7) Use of recommendations. Each integrated system plan implementation section must include a report on the large combination utility's progress towards implementing the recommendations contained in its previously filed integrated system plan.

(8) Alternative compliance. The large combination utility must describe any plans it has to rely on alternative compliance mechanisms as described in RCW 19.405.040 (1)(b).