Similar to many U.S. utilities, Pacific Gas and Electric (PG&E) faces
rapidly increasing local transmission and distribution expenditures an
d is developing a new local integrated resource planning process to li
mit these expenditures. PG&E is integrating demand-side management pro
grams with local area expansion plans to reduce load growth and defer
expensive local area transmission and distribution upgrades. We show h
ow detailed load research data are used in the new local integrated re
source planning approach. Integrating demand-side management programs
in the traditional expansion plan enables PG&E to reduce its planned i
nvestment by 31% or $35 million in present value over a 20-year period
, for a suburban area in Northern California.