Guillermo Pereira presented at the 2023 ACEEE Energy Efficiency as a Resource conference on using energy efficiency to help meet distribution system capacity needs. Utilities in New York, California, Michigan, and Minnesota are using energy efficiency as a non-wires alternative to traditional investments to meet some of their distribution system capacity needs. They geotarget their energy efficiency programs or solicit third-party solutions to proactively reduce the need for distribution system upgrades in locations facing future capacity constraints. Utilities can also conduct systematic studies of the locational value of energy efficiency and other distributed resources to better understand where to target them to reduce distribution costs. These studies can become a routine and transparent part of the distribution planning process. The presentation covers state objectives for distribution system planning and current practices for assessing local grid needs and solutions considering energy efficiency as a non-wires alternative.

Electric utilities conduct planning annually to ensure their distribution system meets technical standards, policies, and regulations; addresses forecasted grid conditions; satisfies customer needs; and advances utility priorities. The plan identifies grid deficiencies, analyzes potential solutions, and prioritizes capital investments and other expenditures. About 20 U.S. states and jurisdictions require regulated utilities to file some type of distribution system plan with the public utility commission for review. Requirements for sharing distribution system data and analyses vary widely, from few specific requirements to a detailed list of information that must be provided. While utilities conduct extensive analysis to develop distribution system plans, in most jurisdictions regulators and stakeholders do not know what data are available and how the utility uses the data in planning and investing. This report aims to bridge the gap by increasing understanding of the types of data and analyses utilities employ to develop distribution system plans and how the information affects their decision-making. The report describes information that states and stakeholders can ask for related to 11 data categories: -Forecasting loads and distributed energy resources (DERs) -Scenario analysis -Worst-performing circuits -Asset management strategy -Hosting capacity analysis -Value of DERs -Grid needs assessment -Cost-effectiveness framework for investments -Distribution system investment strategy and implementation -Geotargeted programs -Non-wires alternatives procurement

Utilities have conducted distribution planning since they first began building and operating electricity systems. But filing these plans for regulatory and stakeholder review is a relatively recent phenomenon. This report summarizes legislative and regulatory requirements for regulated electric utilities to file some type of distribution system plan in 20 U.S. jurisdictions. Some plans focus on expedited cost recovery for certain types of distribution system improvements; other plans focus on investments for grid modernization or distributed energy resources. Increasingly, states are adopting requirements for Integrated Distribution Plans. Such plans provide holistic grid investment strategies that address state and local policies and increasing complexity at the grid edge. The report covers the following topics for distribution system plans, highlighting advanced practices: -State goals and objectives -Procedural requirements -Forecasting loads and distributed energy resources -Hosting capacity analysis -Baseline information requirements -Grid modernization strategy -Grid needs assessment -Non-wires solutions -Reliability and resilience analyses -Stakeholder engagement -Equity -Pilots -Coordination with other planning processes The report includes links to legislation; regulatory requirements, proceedings, and orders; and filed utility plans. The U.S. Department of Energy’s Office of Electricity provided funding support.