ABSTRACT
This chapter presents an overview of the various aspects of utility resource planning. The term “needed amount of DSM” simply refers to the amount of DSM that allows the utility to meet its reliability criterion. DSM options for large commercial and industrial customers can have significantly larger demand reduction per participating customer values. A reserve margin perspective looks at the highest hourly load that is projected to be experienced in the summer and in the winter. The criterion used in this type of analyses is called the “reserve margin criterion,” and it is expressed as a percentage. Many utilities have undertaken significant efforts over the years to improve the reliability of their generating units, thus driving the forced outage rate of their electric generating units lower and lower. The benefits from implementing DSM are the costs that are avoided by not building and operating the generating unit and by not serving as much energy to customers.
