Oregon Administrative Rules › Chapter 345 - DEPARTMENT OF ENERGY, ENERGY FACILITY SITING COUNCIL › Division 23 - NEED STANDARD FOR NONGENERATING FACILITIES › Section 345-023-0020 - Least-Cost Plan Rule

Current through Register Vol. 63, No. 7, July 1, 2024
(1) The
			 Council shall find that the applicant has demonstrated need for the facility if
			 the capacity of the proposed facility or a facility substantially similar to
			 the proposed facility, as defined by OAR 345-001-0010, is identified for
			 acquisition in the short-term plan of action of an energy resource plan or
			 combination of plans adopted, approved or acknowledged by a municipal utility,
			 people's utility district, electrical cooperative, other governmental body that
			 makes or implements energy policy, or electric transmission system operator
			 that has a governance that is independent of owners and users of the system and
			 if the energy resource plan or combination of plans:
(a) Includes a range of forecasts of firm
			 energy and capacity demands and committed firm energy and capacity resources,
			 as defined in OAR 345-001-0010, over the planning period using a reasonable
			 method of forecasting;
(b)
			 Considers and evaluates a reasonable range of practicable demand and supply
			 resource alternatives over the planning period on a consistent and comparable
			 basis. Practicable alternatives are those that are demonstrated to be
			 technically and economically achievable within the time frame considered to
			 meet potential energy or capacity needs;
(c) Uses financial assumptions, including
			 discount rates and treatment of resource lifetimes and end effects that are
			 consistent and comparable between resources;
(d) For electric transmission line
			 facilities, considers alternatives that include but are not limited to:
(A) Implementation of cost-effective
			 conservation, peak load management and voluntary customer interruption as a
			 substitute for the proposed facility;
(B) Construction and operation of electric
			 generating facilities as a substitute for the proposed facility;
(C) Direct use of natural gas, solar or
			 geothermal resources at retail loads as a substitute for use of electricity
			 transmitted by the proposed facility; and
(D) Adding standard sized smaller or larger
			 transmission line capacity;
(e) For natural gas pipeline facilities,
			 considers alternatives that include but are not limited to:
(A) Implementation of cost-effective
			 conservation, peak load management and voluntary customer interruption as a
			 substitute for the proposed facility;
(B) Installation of propane storage systems,
			 facilities to store liquefied natural gas and underground gas storage
			 reservoirs as a substitute for the proposed facility;
(C) Direct use of electricity, solar or
			 geothermal resources at retail loads as a substitute for use of natural gas
			 supplied by the proposed facility; and
(D) Adding standard sized smaller or larger
			 pipeline capacity;
(f)
			 For storage facilities for liquefied natural gas, considers alternatives that
			 include, but are not limited, to:
(A)
			 Implementation of cost-effective conservation, peak load management and
			 voluntary customer interruption as a substitute for the proposed
			 facility;
(B) Installation of
			 propane storage systems, natural gas pipelines and underground gas storage
			 facilities as a substitute for the proposed facility;
(C) Direct use of electricity, solar or
			 geothermal resources at retail loads as a substitute for use of natural gas
			 supplied by the proposed facility; and
(D) Adding smaller or larger liquefied
			 natural gas storage capacity;
(g) Includes the development and evaluation
			 of alternative resource plans to meet forecast energy or capacity needs over
			 the planning time period;
(h)
			 Analyzes the uncertainties associated with alternative resource plans or
			 strategies. The range of uncertainties about the future must be sufficient to
			 test the performance of each alternative resource strategy. The criteria used
			 to evaluate performance of alternative resource strategies must be broad enough
			 to judge the merits of a strategy from a societal perspective;
(i) Aims to minimize long-run total resource
			 costs while taking into account reliability, compatibility with the energy
			 system, strategic flexibility, as defined in OAR 345-001-0010, and external
			 environmental costs and benefits. The value provided by reliability,
			 compatibility with the energy system, strategic flexibility and external
			 environmental costs and benefits may justify actions that increase the total
			 resource cost of the plan. The Council finds that the goals of a least-cost
			 plan are to minimize expected total resource costs for society and the variance
			 in those costs due to uncertainty about future conditions;
(j) Includes a short-term plan of
			 action;
(k) Is consistent with the
			 energy policy of the state as set forth in ORS
			 469.010. An energy resource plan
			 is consistent with the energy policy of the stateif its short-term plan of
			 action describes actions that must be taken within a two to three year time
			 frame to provide a reasonable assurance that future energy or capacity demands
			 can be met while aiming to minimize total resource cost; and
(L) Was adopted, approved or acknowledged
			 after a full, fair and open public participation and comment process. Such a
			 process is one in which the public has reasonable and timely access to the
			 decision-maker and to information and records legally available to the
			 public.