Enter to open, tab to navigate, enter to select
Integrated Resource Planning (IRP)
Practical Law Glossary Item 9-506-3101 (Approx. 3 pages)
Glossary
Integrated Resource Planning (IRP)
A long-range plan created by utilities in which the utility evaluates its customers' energy needs and the requirements under any regulations to which it may be subject (including renewable portfolio standards) to provide adequate and reliable service to its customers at the lowest system cost. As part of the IRP process, utilities:
- Forecast future loads.
- Identify potential resource options to meet those future loads and their associated costs.
- Determine the optimal mix of resources. This determination takes into account the reliability of each resource type and its impact on the environment.
- Analyze fuel prices, where applicable.
- Examine the spot prices of electricity.
Utilities use the IRP to determine:
- Whether it should add new generation capacity.
- The types of resources it should acquire.
- Whether it should own power plants or buy power from others.
- Whether it should construct additional transmission and distribution lines.
- Whether it needs to reduce transmission and distribution losses.
These plans are reviewed by the state public utility commission or public service commission, which can also accept or reject all or portions of the plan.
For more information on IRPs, see Practice Note, Power Purchase Agreements: Key Issues and Provisions.