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EU6 - Planning to ensure short and long-term electricity availability and reliability

Integrated Resource Planning (IRP) has seven fundamental steps in their IRP process. 1) forecast future (peak) demands and energy requirements; 2) establish appropriate reliability or reserve criteria based on PJM Installed Reserve Margin requirement and SPP Capacity Margin requirement; 3) review the adequacy of current and planned resources to meet those criteria, including impacts of environmental compliance strategies and unit retirement decisions; 4) determine the (MW) need for additional capacity resources; 5) review available future acquisition options, resource alternatives, and key modeling assumptions; 6) determine optimal resource type and timing and ultimate resource mix, including assessment of planning risk factors, and 7) implement plan internally/externally ensuring results of the implementation process remain in-step with original planning intent.

On a yearly basis, Distribution System Reliability Planning and Engineering produces a Work Plan Overview. This document indicates where capital dollars will be spent in regard to: reliability, asset replacement, capacity additions, service restoration, third party required and distribution modernization. This plan also calculates "projected" peak demand MVA for the next 5 to 10 years based on historical growth, economic conditions, temperature deviation from normal and known "large" additions to the system. Data from the "projected" demand is then used to identify specific projects and is added to the 10-Year Long-Range Forecast for Distribution Capacity Projects report.