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

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.

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.

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.

Quick facts

  • Typical fees: Varies by utility and state
  • Jurisdiction: Regulated at both state and federal levels
  • Possible penalties: Non-compliance with IRP regulations can result in fines or operational restrictions

Key takeaways

Frequently asked questions

It is a planning process used by gas utilities to evaluate demand-side and supply options to provide reliable services at minimal costs.