XVIII. Implementing the EAP Loading Order

The Energy Action Plan prioritizes resources in a "loading order" of policy preferences that emphasizes energy conservation, resource efficiency and reducing per capita demand on the demand side of the equation, and favors renewables over fossil-fueled resources on the supply side.  The order of resource priorities is:  energy efficiency and demand response, renewables (including renewable DG), clean fossil-fired distributed generation, and clean central-station generation. Sensible transmission investments should be made in concert with these other resource commitments.

Sections of this decision describe the objectives and direction for aggressive procurement of renewable generation resources, contain guidance for procuring clean fossil resources and discuss transmission and DG, respectively. The direction is clear: IOUs should implement the EAP loading order when soliciting resources as a result of this decision.

All three IOUs' LTPPs present resource procurement scenarios that indicate that they intend to follow the EAP loading order as they go forward with procurement solicitations, evaluations and determinations.  In particular they all say they will follow all Commission orders and directives from the companion umbrella proceedings in meeting target goals for EE, DR, renewables and DG, and will consider the targets as floors, not ceilings, in terms of evaluating options.  The IOUs followed the EAP loading order for each load and resource scenario."