Integrated Resource Planning, Resource Acquisition, Environmental Analysis, & Avoided Costs
Cost Allocation, Rate Design, Prudence Review, Transmission & Distribution Planning, & Rate and Bill Effects of Resource Plans
Resource Planning & Evaluation
Resource Insight deals with a range of resource-planning issues that affect customers, the environment, and the economy.
We believe that integrated resource plans (IRPs) should recognize and balance reliability, expected cost, risk and economic and environmental considerations. Our technical analysis identifies shortcomings of utility IRPs resulting from inappropriate underlying assumptions, analytic methods and evaluation frameworks. Our work includes estimating costs of new resources, reflecting costs of environmental compliance, assessing economic and financial risks of resource portfolios, and load forecasting.
Resource Insight has particular expertise in integrating energy efficiency and renewable energy into resource planning, through proper quantification of avoided costs, identification of the full benefits of energy efficiency and renewable energy, appropriate screening of options, and realistic assessment of resource potential, at utility scale and in distributed generation.
In reviewing proposed generation and transmission projects, we consider the economic and environmental effects of all feasible alternatives, under realistic conditions, recognizing trends in constraints (e.g., environmental regulations) and resources (e.g., planned or required energy-efficiency and renewables, committed and likely generation additions and retirements). We craft compliance strategies for meeting emissions targets imposed by state and federal regulators. We detail methods increasing penetration of wind and solar generation. Our understanding of current and draft EPA rules targeting mercury, carbon dioxide, and other air toxics lets us effectively consider the long-term impact of current planning decisions.
Resource Insight brings technical and policy expertise to its assessments of the prudence behind proposed and existing resources. It examines the long term costs and benefits of proposed ventures and compares them to other alternatives to find superior solutions. We understand risk assessment and mitigation; how to measure exposure to fuel prices, environmental regulation, and demographic changes.
Resource planning analysis is undertaken in a variety of contexts including:
- integrated resource plans,
- utility requests to build plants,
- siting reviews of non-utility plants,
- utility requests for approval of environmental compliance and life-extension investments,
- review of proposed transmission facilities,
- review of energy-efficiency and load-management plans.
Resource Insight participates in all types of regulatory proceedings. We bring to this arena considerable experience in cost-allocation and rate design, determination of the prudence of major investment decisions, risk assessment and mitigation, and the crafting of effective regulatory strategies. We pursue equitable outcomes based on informed analysis.
In rate cases, our work includes investigations into the assumptions and methods underlying proposed revenue requirements, cost of service studies, rate design, and rate impact analysis. While many utilities and regulators still rely on traditional cost-of-service ratemaking, a growing number are looking for ways to integrate efficiency efforts into this process. Resource Insight has extensive experience with alternative ratemaking methods like decoupling and performance-based designs that provide new frameworks for economically sustainable efficiency. We frequently provide analysis and testimony on rate design issues including tiered and time-of-use rates. We conduct bill impact analysis to understand the results of proposed rate design and how it affects customers.
We work on the design of energy and capacity wholesale markets. Our team studies the impacts of market power and market failure as well as providing solutions to these pressing problems.
Resource Insight was a leader in the efforts to restructure energy markets. Our principals raised policy and analytical questions related to stranded costs, divestiture of generation, and market structure.
Resource Insight brings expert analysis to:
- General Rate Cases
- Cost Allocation and Cost of Service Studies
- Rate Design and Reviews
- Prudence Reviews
Resource Insight has extensive experience with competitive electric procurements. We have reviewed and proposed scoring criteria and other important elements for requests for proposals for long-term supply resources, and reviewed the selection of resources.
In the New England, PJM, and MISO markets, we design power procurements and monitor auctions to ensure fair and credible results. For load-serving entities, we assist in the procurement of power supply that meets their reliability needs and financial objectives.
Resource Insight frequently testifies on:
- Procurement Structuring and Design
- Prudence and Contract Approval