Electric Utility Least-Cost Planning Making It Work within a Multiattribute Decision-Making Framework

Least-cost planning is transforming the planning process traditionally used in the electric utility industry. As compared to the traditional planning process, least-cost planning broadens the participation by multiple parties and widens the range of the planning options that are assessed. Its integrative nature opens consideration of multiple planning objectives (such as social, environmental, and economic objectives) in evaluating demand-side and supply-side options. Economic rationales for least-cost planning are found in neoclassical and institutional economic thought. Multiattribute decision analysis provides an analytical and decision-making framework for least-cost planning; it can be used to identify issues, objectives, preferences, and expected consequences of planning options.