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Screening Analysis: The screening analysis phase helps determine which DSM and supply-side options to consider in the IRP plan. DSM screening analysis indicates whether a program is "good" and for whom it is good. The end results of DSM screening analyses are B/C ratios for each DSM option. The end results of supply-side screening analyses are levelized costs for each option. Plan Integration: TheplanintegrationphaseincorporatesDSMalternativesintotheIRPprocess. Therearethreebasic integration methods ( W M A 1993): (1) static analysis, (2) the integration method, and (3) the load forecast adjustment method. Any of these methods can be used; however, the utility should choose the one that best applies to its particular situation. The following four areas must be concentrated on during this phase: 1. Determining the mix, size, and timing of resources to select the least-cost plan. 2. Deriving the resource plan according to severd conflicting objective functions. 3. Ensuring that the plan will provide equal reliability whether DSM or supply-side options are included. 4. Incorporating the hourly effects of DSM programs, program costs, revenue impacts, and market penetration rates. Financial Analysis: In the financial analysis phase, the utility determines how the IRP will affect its financial situation by examining: (1) revenue versus expenses, (2) cash flow and financing requirements, (3) financial ratios (such as the operating ratio), and (4) customer rate increase constraints. 9 Risk Analysis: The assumptions made during the IRP process must be made for variables that contain uncertainty. In this risk analysis phase, risks are assessed by monitoring changes in output variables as input variable assumptions are changed. Risk analysis can be performed by assigning probabilities or using sensitivity analysis, as outlined in Section 2. Implementation: The implementation phase is the find phase in the IRP process and varies among utility companies. Generally, the analyst presents conclusions and recommendations to the utility director, board, or council. The utility then submits the 1RP to its regulatory body. Once the IRP is adopted (usually not in its original form), the necessary implementation steps are performed. 63PDF Image | A Manual for the Economic Evaluation of Energy Efficiency and Renewable Energy Technologies
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