What the IRP does:
- Forecasts future electricity demand
- Evaluates existing and potential energy resources
- Test different future scenarios and risks
An Integrated Resource Plan (IRP) is a long-term planning study that evaluates how NorthWestern Energy can meet customer electricity needs over the next 20 years under a variety of future scenarios while balancing reliability, affordability and risk. The IRP is not a construction plan or a final decision document. Instead, it establishes a transparent analysis of possible scenarios to guide future actions.
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Reliability means having enough power plants and energy supplies available when customers need electricity, especially during winter peaks.
NorthWestern plans for reliability using a regional program called the Western Resource Adequacy Program, or WRAP, which determines how much dependable generation capacity is needed to keep electricity shortages very rare – about one day in 10 years, on average.
WRAP evaluates winter and summer separately and accounts for the fact that that generation resource production and loads are different during peak winter and summer conditions.
Identifying the most cost-effective capacity to meet the reliability needs of customers, noting the cost of building new generation, potential risks and energy market forecasts.
The system meets reliability requirements today, but a winter capacity need begins to emerge around 2027–2028.
Early retirement of major resources such as Colstrip significantly increases customer costs.
Large customer growth can lower average energy costs but still requires new generation and transmission investments.
The IRP does not select a single resource today. Instead, it creates a foundation for future actions such as competitive resource solicitations and continued evaluation of emerging technologies.