IRP methods for Environmental Impact Statements of utility expansion plans

Most large electric utilities and a growing number of gas utilities in the United States are using a planning method -- Integrated Resource Planning (IRP) - which incorporates demand-side management (DSM) programs whenever the marginal cost of the DSM programs are lower than the marginal cost of supply-side expansion options. Argonne National Laboratory has applied the IRP method in its socio-economic analysis of an Environmental Impact Statement (EIS) of power marketing for a system of electric utilities in the mountain and western regions of the United States. Applying the IRP methods provides valuable information to the participants in an EIS process involving capacity expansion of an electric or gas utility. The major challenges of applying the IRP method within an EIS are the time consuming and costly task of developing a least cost expansion path for each altemative, the detailed quantification of environmental damages associated with capacity expansion, and the explicit inclusion of societal-impacts to the region.