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Integrated Resource Planning: A Comprehensive Overview of Its Legal Framework
Definition & Meaning
Integrated resource planning (IRP) is a strategic approach used by gas utilities to evaluate and compare different methods of meeting consumer demand for gas. This planning process involves assessing both demand-side management options, such as energy efficiency programs, and the supply of gas. The goal is to minimize the total life-cycle costs while ensuring that utility services remain adequate and reliable for consumers. IRP also considers essential operational features like reliability, diversity, and risk factors, treating demand and supply in a cohesive manner.
Table of content
Legal Use & context
Integrated resource planning is primarily utilized in the energy sector, particularly by gas utilities. It plays a crucial role in regulatory compliance and strategic decision-making. Legal practitioners may encounter IRP in contexts involving energy regulation, utility law, and environmental compliance. Users can manage aspects of IRP through various legal forms and templates, which can help in drafting plans that meet regulatory requirements.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
One example of integrated resource planning is when a gas utility evaluates the cost-effectiveness of investing in energy efficiency programs versus expanding its gas supply infrastructure. By analyzing both options, the utility can decide on the best approach to meet future demand while minimizing costs for consumers.
(Hypothetical example) A gas utility in a state experiencing rapid population growth may conduct an IRP to determine whether to build a new pipeline or invest in demand-side management initiatives, such as promoting energy-efficient appliances among consumers.
Relevant laws & statutes
Integrated resource planning is referenced in various regulatory frameworks, including the Public Utility Regulatory Policies Act (PURPA) and state-level utility regulations. These laws often require utilities to develop IRPs to ensure reliable and cost-effective service delivery. Specific statutes may vary by state.
State-by-state differences
State
IRP Requirements
California
Mandatory IRP filings every two years with specific guidelines for renewable energy integration.
Texas
No formal IRP requirement; utilities may voluntarily engage in planning processes.
New York
IRP is encouraged with a focus on sustainability and consumer engagement.
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
Comparison with related terms
Term
Definition
Differences
Resource Planning
General planning for resource allocation in utilities.
IRP specifically includes demand-side management and life-cycle cost analysis.
Demand-Side Management
Strategies aimed at reducing energy consumption by consumers.
IRP encompasses both demand-side and supply-side considerations.
Common misunderstandings
What to do if this term applies to you
If you are involved in energy planning or regulation, consider reviewing your utility's integrated resource plan to ensure it meets current regulations and consumer needs. You can explore US Legal Forms for templates that can assist in drafting or revising IRP documents. If your situation is complex, consulting a legal professional may be beneficial.
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