ABSTRACT

In this chapter, reliability analyses are performed for our hypothetical utility system using a reserve margin criterion. Through these analyses, our hypothetical utility determines when (in what year) it needs to add new resources, and what the magnitude (MW) of the needed new resources is. Our utility also sees that the answer to the magnitude question differs depending on whether a Supply or DSM option is being considered. At the conclusion of this chapter, after our utility has identified both the timing and the magnitude of its resource needs, it can proceed to perform economic evaluations of available resource options in Chapter 5 (in which Supply options are evaluated) and Chapter 6 (in which DSM options are evaluated).