MEASURING THE ECONOMIC VALUE OF DEMAND-SIDE AND SUPPLY RESOURCES IN INTEGRATED RESOURCE PLANNING-MODELS

When comparing the economics of alternative portfolios of supply and d emand-side resources, utility planners should consider not only costs but also effects upon the benefits, or ''value,'' that electricity con sumers receive. A method for including such effects in comprehensive r esource planning models is presented. This method considers the value impacts of electric rate changes, ''takeback'' of energy savings in co nservation programs, and increases in energy services provided by load building or valley-filling programs. In general, the method rewards r esource portfolios that cause rates to move closer to marginal cost or increase the energy services provided. Applications of a net value ob jective in several resource planning models are summarized. They confi rm that optimizing net value can yield different resource portfolios t han minimizing cost.