Missouri Code of State Regulations › Title 20 - DEPARTMENT OF COMMERCE AND INSURANCE › Division 4240 - Public Service Commission › Chapter 22 - Electric Utility Resource Planning › Section 20 CSR 4240-22.040 - Supply-Side Resource Analysis

Current through Register Vol. 49, No. 14, July 15, 2024
PURPOSE: This rule establishes minimum standards for
				  the scope and level of detail required in supply-side resource
				  analysis.
(1) The utility
				shall evaluate all existing supply-side resources and identify a variety of
				potential supply-side resource options which the utility can reasonably expect
				to use, develop, implement, or acquire, and, for purposes of integrated
				resource planning, all such supply-side resources shall be considered as
				potential supply-side resource options. These potential supply-side resource
				options include full or partial ownership of new plants using existing
				generation technologies; full or partial ownership of new plants using new
				generation technologies, including technologies expected to become commercially
				available within the twenty (20)-year planning horizon; renewable energy
				resources on the utility-side of the meter, including a wide variety of
				renewable generation technologies; technologies for distributed generation;
				life extension and refurbishment at existing generating plants; enhancement of
				the emission controls at existing or new generating plants; purchased power
				from bilateral transactions and from organized capacity and energy markets;
				generating plant efficiency improvements which reduce the utility's own use of
				energy; and upgrading of the transmission and distribution systems to reduce
				power and energy losses. The utility shall collect generic cost and performance
				information sufficient to fairly analyze and compare each of these potential
				supply-side resource options, including at least those attributes needed to
				assess capital cost, fixed and variable operation and maintenance costs,
				probable environmental costs, and operating characteristics.
(2) The utility shall describe and document
				its analysis of each potential supply-side resource option referred to in
				section (1). The utility may conduct a preliminary screening analysis to
				determine a short list of preliminary supply-side candidate resource options,
				or it may consider all of the potential supply-side resource options to be
				preliminary supply-side candidate resource options pursuant to subsection
				(2)(C). All costs shall be expressed in nominal dollars.
(A) Cost rankings of each potential
				supply-side resource option shall be based on estimates of the installed
				capital costs plus fixed and variable operation and maintenance costs levelized
				over the useful life of the potential supply-side resource option using the
				utility discount rate. The utility shall include the costs of ancillary and/or
				back-up sources of supply required to achieve necessary reliability levels in
				connection with intermittent and/or uncontrollable sources of generation (i.e.,
				wind and solar).
(B) The probable
				environmental costs of each potential supply-side resource option shall be
				quantified by estimating the cost to the utility to comply with additional
				environmental legal mandates that may be imposed at some point within the
				planning horizon. The utility shall identify a list of environmental pollutants
				for which, in the judgment of the utility decision-makers, legal mandates may
				be imposed during the planning horizon which would result in compliance costs
				that could significantly impact utility rates. The utility shall specify a
				subjective probability that represents utility decision-maker's judgment of the
				likelihood that legal mandates requiring additional levels of mitigation will
				be imposed at some point within the planning horizon. The utility, based on
				these probabilities, shall calculate an expected mitigation cost for each
				identified pollutant.
(C) The
				utility shall indicate which potential supply-side resource options it
				considers to be preliminary supply-side candidate resource options. Any utility
				using the preliminary screening analysis to identify preliminary supply-side
				candidate resource options shall rank all preliminary supply-side candidate
				resource options based on estimates of the utility costs and also on utility
				costs plus probable environmental costs. The utility shall-
1. Provide a summary table showing each
				potential supply-side resource option and the utility cost and the probable
				environmental cost for each potential supply-side resource option and an
				assessment of whether each potential supply-side resource option qualifies as a
				utility renewable energy resource; and
2. Explain which potential supply-side
				resource options are eliminated from further consideration and the reasons for
				their elimination.