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February 18, 2014
Senior Associate Ryan Hledik Co-Authors Article on Integrating Demand Response in Utility Resource Planning

Brattle Senior Associate Ryan Hledik recently co-authored an article to be published in the March 2014 issue of Utilities Policy that examines various frameworks for the integration of demand response (DR) resources in utilities’ long-term resource planning.

Co-authored by Andrew Satchwell of Lawrence Berkeley National Laboratory, the article examines the current analytical frameworks of utilities for incorporating DR into long-term resource planning. Many utilities are obligated by state regulatory or legislative requirements to consider DR resources as part of their resource planning. In light of FERC Order 1000, there is growing interest among regional reliability organizations and other system planners for long-term regional and national generation and transmission expansion planning that considers a range of load and resource scenarios and public policy considerations.

The article surveys 19 recent resource plans of the largest load serving entities in the Western Interconnection. The authors find that roughly one quarter of utilities do not incorporate DR into resource planning and only a small fraction of the utilities (approximately 10%) fully integrate DR into their resource planning process. After reviewing the existing analytical approaches for incorporating DR into resource planning, the authors also provide 10 specific recommendations for ways in which these current approaches may be enhanced and expanded upon in order to more fully account for the benefits and limitations of DR, which would provide material financial benefits to both utilities and their customers.

A draft version of the article, “Analytical Frameworks to Incorporate Demand Response in Long-Term Resource Planning,” can be downloaded here.