REGULATIONONINTEGRATEDRESOURCEPLANFORTHEPUERTORICOELECTRICPOWERAUTHORITY

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TABLEOFCONTENTS

CHAPTERI-GENERALPROVISIONS..................................................................................3ARTICLEI.-GENERALPROVISIONS.............................................................................................3Section1.01.-Title..........................................................................................................................................3Section1.02.-LegalBasis.............................................................................................................................3Section1.03.-PurposeandExecutiveSummary...............................................................................3Section1.04.-Application............................................................................................................................4Section1.05.-Interpretation......................................................................................................................4Section1.06.-ProvisionsofOtherRegulations;RepealofRegulationNo.8594,asamendedbyRegulationNo.8903............................................................................................................4Section1.07.-UnforeseenProceedings.................................................................................................4Section1.08.-Definitions.............................................................................................................................4Section1.09.-DatesandTerms.................................................................................................................9Section1.10.-Language................................................................................................................................9Section1.11.-Severability...........................................................................................................................9Section1.12.-Forms...................................................................................................................................10Section1.13.-ModeofSubmission.......................................................................................................10Section1.14.-EffectofSubmission.......................................................................................................10Section1.15.-ConfidentialInformation.............................................................................................10Section1.16.-Validity.................................................................................................................................11

CHAPTERII–INTEGRATEDRESOURCEPLANNING...................................................11ARTICLEII.-PLANNINGPERIOD,CONTENTANDSCHEDULE............................................11Section2.01.-PlanningPeriod;Effectiveness..................................................................................11Section2.02.-IntegratedResourcePlanFilingStructureandRequirements...................11Section2.03.-IntegratedResourcePlanAnalysesandReportingRequirements...........13Section2.04.-ScheduleandFiling........................................................................................................36Section2.05.-Update,AmendmentorReviewtoanApprovedIRP......................................36Section2.06.-CertificationofCompliancewithSection6BofAct83...................................37

ARTICLEIII.PROCEDUREBEFORETHECOMMISSION........................................................37Section3.01.-IRPPrefilingProcess(Phase1)................................................................................37Section3.02FilingoftheIRP(Phase2).............................................................................................38Section3.03.-InterveningParties.........................................................................................................38Section3.04.-InitialTechnicalHearing...............................................................................................39Section3.05.-ProceduralCalendar......................................................................................................39Section3.06.-PrefiledWrittenDirectTestimony..........................................................................39Section3.07.-PublishingofFinalIRPPlanonPREPA’sWebpage..........................................39

CHAPTERIII–ENERGYEFFICIENCY,DEMANDRESPONSEANDPERFORMANCE.....................................................................................................................................................40ARTICLEIV.ENERGYEFFICIENCYANDDEMANDRESPONSE............................................40Section4.01.-EnergyEfficiencyandDemandResponsePlanningandReporting..........40

ARTICLEV.PERFORMANCEMETRICSTARGETSANDINDUCEMENTS...........................42Section5.01.-PerformanceMetrics,Targets,andInducements.............................................42

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REGULATIONONINTEGRATEDRESOURCEPLANFORTHEPUERTORICOELECTRICPOWERAUTHORITY

CHAPTERI-GENERALPROVISIONS

ARTICLEI.-GENERALPROVISIONS

Section1.01.-Title.ThisRegulationshallbeknownastheRegulationonIntegratedResourcePlanforthePuertoRicoElectricPowerAuthority.

Section1.02.-LegalBasis.ThisRegulationisadoptedpursuanttoArticles6.3,6.20and6.23ofAct57-2014,asamended, known as the Puerto Rico Energy Transformation and RELIEF Act; toSection6CofActNo.83ofMay2,1941,asamended,knownastheElectricPowerAuthorityAct (“Act83”);andpursuant toAct38-2017,asamended,knownas theUniformAdministrativeProcedureoftheGovernmentofPuertoRicoAct.

Section1.03.-PurposeandExecutiveSummary.The Puerto Rico Energy Commission (“Commission”) adopts and enacts thisRegulationincompliancewiththemandateestablishedinSection6CofActNo.83ofMay2,1941,asamended,knownasthePuertoRicoElectricPowerAuthorityAct,andSection6.23ofAct57-2014,knownasthePuertoRicoEnergyTransformationandRELIEFAct,whichrequire theadoptionof thenecessaryrules for theelaboration,presentation,evaluation,andapprovalofthePuertoRicoElectricPowerAuthority's(“PREPA”)IntegratedResourcePlans(IRP).

PursuanttothisRegulationandresultingfromadetailedplanningprocess,theIRPwill consider all the reasonable resources to satisfy the demand for electricityservicesduringatwenty(20)-yearplanningperiod,takingintoaccountbothsupply-anddemand-sideelectricpowerresources. Inbroadterms,theIRPwill includeanassessmentoftheplanningenvironment,acarefulanddetailedstudyofarangeoffuture load forecasts, present generation resources, present demand resources,current investments inelectricity conservation technologies, existing transmissionanddistributionfacilities,andtherelevantforecastandscenarioanalysesinsupportofPREPA'sselectedresourceplan.ItwillalsocontainaproposedActionPlanfortheimplementationoftheselectedresourceplan.

ThepurposeofthisRegulationistoensurethattheIRPservesasanadequateanduseful tool to guarantee the orderly and integrated development of Puerto Rico'selectricpowersystem,andtoimprovethesystem'sreliability,resiliency,efficiency,andtransparency,aswellastheprovisionofelectricpowerservicesatreasonableprices.TheprovisionsestablishedhereinwillguidetheIRPprocessalonglinesthatareconsistentwiththemandatesofAct57-2014andActNo.83ofMay2,1941,and

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followingtheelectricpowerindustry'sbestpracticesinintegratedresourceplanning.ThisRegulation,moreover,definesthetermsrelatedtotheinformationrequiredinthe IRP, the procedures before the Commission, and the performance metricsguideline and inducements that PREPA will follow after the Commission hasevaluatedand reviewed the IRP.TheCommissionwill evaluate the IRPaswell asPREPA'sperformancethereafterinaccordancewiththeprovisionssetforthinthisRegulation.

Section1.04.-Application.ThisRegulationshallgoverntheinformationrequirements,guidelinesforanalysis,actionplans,performancemeasures,aswellastheevaluation,approval,andreviewprocedures related to the Integrated Resource Plans for the Puerto Rico ElectricPowerAuthority.

Section1.05.-Interpretation.ThisRegulationshallbeinterpretedinawaythatpromotesthehighestpublicgoodandtheprotectionoftheinterestsoftheresidentsofPuertoRico,andinsuchawaythattheproceedingsarecarriedoutrapidly,justlyandeconomically.

Section1.06.-ProvisionsofOtherRegulations;RepealofRegulationNo.8594,asamendedbyRegulationNo.8903.TheprovisionsofthisRegulationmaybesupplementedbytheprovisionsofotherregulations of the Commission that are compatible with the provisions of thisRegulation.

RegulationNo.8594,knownastheRegulationonIntegratedResourcePlanforthePuertoRicoElectricPowerAuthority,asamendedbyRegulationNo.8903,knownastheAmendmenttoRegulationNo.8594,isherebyrepealed.

Section1.07.-UnforeseenProceedings.WhenaspecificproceedinghasnotbeenplannedforinthisoranotherCommissionregulation,theCommissionmayconducttheminanywaythatisconsistentwithAct57-2014,asamended.

Section1.08.-Definitions.A) ThesedefinitionsaretobeusedforthisRegulationandarenotintendedto

modifythedefinitionsusedinanyotherCommissionrulesororders.

B) ForthepurposesofthisRegulation,thefollowingtermswillhavethemeaningestablishedbelow,exceptwhen thecontextof thecontentofanyprovisionclearlyindicatessomethingelse:

1) “ActionPlan” refers toaplan that identifies the specific actions thatPREPA will perform during the first five (5) years of the PlanningPeriodinordertoimplementthePreferredResourcePlan.

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2) “Advanced meter” refers to a meter that records a customer'selectricityusagefortimeintervalsofonehourorless,andcantransmitthat information to the utility without the need for a humanmeterreader.Themeterallowsforthetwo-wayflowofinformationandcannotifytheutilityofapoweroutage.

3) “BaselineLoadForecast”referstoaloadforecastofelectricitydemandand consumption that takes into account currently implementeddemand-sideresourcesandtheexpirationofsuchresources,butdoesnotincludeanyanticipatedorrequiredfuturedemand-sideresources.

4) “CapacityExpansionModel” refers toa computermodeldesigned toseek a least cost, or “optimal”, portfolio of electricity supply- anddemand-side resources that meets the utility’s load forecast,accounting for system constraints and the need to maintain thereliability of the system over the planning period in the PreferredResourcePlan.

5) “Cogeneration”referstotheproductionofelectricityusingwasteheatfrom an industrial process or the use of steam from electric powergenerationasasourceofheat.

6) “Commission”referstothePuertoRicoEnergyCommissioncreatedbyvirtueofAct57-2014.

7) “CEPPO” refers to the Commonwealth Energy Public Policy OfficecreatedbyvirtueofAct57-2014.

8) “Competitive bidding” shall mean the process by which supply- ordemand-side resources are procured through a formal bidding orrequestforproposal(“RFP”)process.Forpurposesofthisregulation,a“Competitivebidding”processshallrefertotheproceduressetforthinSections 6B(a)(iii) and6C ofAct 83 and any applicable Commissionregulationorresolution.

9) “Demand-SideResource”referstotheresourcesproducedbyenergyefficiency programs, demand response programs, and distributedgenerationthatreduceretailcustomerconsumptionorshiftthetimeofconsumptionfromendusers.

10) “Demand Response Program” shall mean a program that seeks tomodify customer loads tomake themmore efficient by reducing orshifting load from hours with high electricity costs or reliabilityconstraints. Demand Response programs may include, but are notlimitedto,anyoneoracombinationof:directloadcontrolprograms,critical peak pricing, time-varying rates, other rate designs toencourageefficientelectricityconsumption,andotherutility-designed

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or customer-managedprograms thatmay become available throughdeploymentofadvancedmetersorothertechnologies.

11) “Distributed Generation” shall mean generation facilities owned byretailcustomersandlocatedonthecustomersideofthemeter,thatisprimarilyfortheuseandconsumptionofenergybyretailcustomers,andthatmayprovideanyelectricpowergeneratedinexcesstoPREPA.Distributed generation resources may include combined heat andpower, renewable and non-renewable generators, microgrids andstoragetechnologiesincludingelectricvehicles.Distributedgenerationincludesbothcustomer-ownedand-leasedresources.

12) “Electricpowergrid”shallmeantheelectricpowertransmissionanddistribution infrastructure of the Commonwealth of Puerto Rico,operated,supported,andadministeredbyPREPA.

13) “Electricityconsumption”shallmeantheamountofelectricityrequiredby customers over the course of a year or smaller time period, asmeasuredingigawatthours(GWh).

14) “Electricitydemand”shallmeantheamountofelectricityrequiredbycustomersatagivenhouroftheyear,asmeasuredinmegawatts(MW).

15) “EnergyEfficiencyMeasure”shallmeananinstalledpieceofequipmentor system, ormodification of equipment, systems, or operations onend-usecustomerfacilitiesthatreducesthetotalamountofelectricalenergyandcapacitythatwouldotherwisehavebeenneededtodeliveranequivalentorimprovedlevelofservicetoend-usecustomers.

16) “EnergyEfficiencyProgram”shallmeanaprogramprovidedbyoronbehalf of PREPA to retail customers, using a set of energy efficiencymeasurestoreducethetotalamountofelectricalenergyandcapacitythatwould otherwise have been needed to deliver an equivalent orimprovedlevelofend-useservice.

17) “Environmental Regulations” shall mean the rules and regulationspromulgated by the United States Environmental Protection Agency(“EPA”)ortheEnvironmentalQualityBoardofPuertoRico(“EQB”).

18) “ICPO”referstotheIndependentConsumerProtectionOffice,createdbyvirtueofAct57-2014.

19) “Independent Power Producer” shallmean an independently-ownedgenerationfacilitythatprovideswholesalepowertoPREPAthroughacontractualarrangement.

20) “IntegratedResourcePlan”or“IRP”shallmeanaplanthatconsidersall

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reasonableresourcestosatisfythedemandforelectricpowerservicesduringaspecificperiodoftime,includingthoserelatingtotheofferingofelectricpower,whetherexisting,traditional,and/ornewresources,andthoserelatingtoenergydemandsuchasenergyconservationandefficiencyordemandresponseandlocalizedenergygenerationbythecustomer.

21) “Intervenor” refers to anypartywhohas filed for andbeen grantedinterventioninthisproceedingpursuanttoSection5.05ofRegulationNo.8543,RegulationonAdjudicative,NoticeofNoncompliance,RateReviewandInvestigationProcedures.

22) “Load Forecast” refers to a long-term forecast of electricity demand(measuredinMW)andelectricityconsumption(measuredinGWh).

23) “MajorChange” shallmeananynewprocurement effort or addition,retirement or modification of generation plant having a nameplatecapacityof50megawattsorgreater;theadditionofpollutioncontrolequipment; the unanticipated termination of a Power PurchaseAgreement;orotherevent,suchasamajorhurricane,assetforthbytheCommission.

24) "MajorProject"shallmeananyprojectgreaterthan50megawatts.

25) “Microgrid”shallmeanagroupofinterconnectedloadsanddistributedenergyresourceswithinclearlydefinedelectricalboundariesthatactsasasinglecontrollableentitywithrespecttoPREPA’sgrid.Thegoalofmicrogrids is to reduce energy consumption based on fossil fuelsthrough local renewable energy generation and strategies to reduceenergyconsumption. A microgrid can connect and disconnect fromPREPA’sgridtoenableittooperatebothgrid-connectedoroffthegrid.

26) “NewResourceorFacility”referstoanyresourceorfacilitythatisinplanning, unbuilt, undelivered, under construction, or is otherwiseincompleteandthatisnotprovidingusefulcustomerservice.

27) “Person” includes any natural person, company or legal entity,independentofhowitisorganized.

28) “PlanningEnvironment”referstothestatutes,rules,regulations,andotherexogenousconsiderations that impactorguideelectric systemplanning.

29) “PlanningPeriod”shallmeanthetwenty-yearperiodinanIntegratedResourcePlanforwhichresourcesmustbeplannedtomeetcustomerloadrequirements.

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30) “Planning ReserveMargin” refers to the reservemargin required tooperatePREPA’ssystemreliably.

31) “Power Purchase” refers to a transaction to purchase wholesalecapacity and/or energy from another electric power supplier asapprovedbytheCommission.

32) “PREPA”referstothePuertoRicoElectricPowerAuthority,acorporateentitycreatedbyvirtueofAct83.

33) “PreferredResourcePlan”shallmeanaportfolioofresourceadditionsselected by PREPA from amongst those evaluated in the IRPrepresentingthebestperformingresourcemixtobeimplementedintheActionPlan.

34) “Rate Design” shall mean the means by which class revenuerequirements are collected within each customer class in order torecovercostsforthedeliveryofserviceandtopromoteefficientuseofelectricityservices,includingconsiderationsforeffectiveconservationandmanagementofpeakloads.

35) “ReferenceCase”referstotheforecastofloadandassociatedsystemrequirements,commodityprices,capitalcostsandrisksrepresentingPREPA’s best understanding of expected circumstances or medianprobabilityoutcomes.

36) “Resource Plan” refers to a selection of supply-, demand-side, andtransmissionresourcesthatbestservesPREPA’sneedsunderagivenforecastscenario.

37) “RevenueRequirement”referstothetotalrevenuesrequiredbyPREPAtorecoveritscapitalinvestmentsandexpensesasdeterminedinaratecasedecisionissuedbytheCommission.

38) “Scenario”referstoacombinationofsystemrequirementsneededtoserveload,commodityprices,capitalcostsandrisksthatinfluencethechoiceofresourcesservingPREPA’sfutureload.

39) “SmallPowerProduction” refers to theproductionof electricpowerusingoiland/oritsbyproducts,naturalgas,renewableenergysources,or any other electric power production method, including theproductionofelectricpowerthroughdistributedgeneratorsof1MWorhigherparticipatinginPREPA’sNetMeteringProgram.

40) “Supply-Side Resource” shall mean an electric generation,transmission, or distribution facility on theutility side of themeter,either owned or operated by PREPA, or the output of which is

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purchasedbyPREPAatwholesale.

41) “Work Papers” shall mean all documents, spreadsheets, reports,correspondenceandcommunications,computerruns,calculations,andother materials relied upon to develop the IRP filing, including thePreferredResourcePlanandtheActionPlan.

C) EverywordusedinthesingularinthisRegulation,shallbeunderstoodtoalsoincludetheplural,unlessthecontextindicatesotherwise.

Section1.09.-DatesandTerms.In computing any time-period established in this Regulation, or by order of theCommission,thedayoftheoccurrenceoftheevent,act,oromissionthattriggerstheperiod shall not be counted and the fixedperiod shall beginon theday after. If aperiodendsonaSaturday,Sundayorlegalholiday,theperiodshallbeextendeduntilthenextworkday.

Section1.10.-Language.A) IfthereisadiscrepancybetweentheSpanishversionandtheEnglishversion

ofthisRegulation,theprovisionsoftheEnglishversionshallprevail.

B) The proceedings heard before the Commission shall be conducted in theEnglish language.At its discretion, andupon request fromaparty ormotupropio,theCommissionmayrequireanypartytofileSpanishatranslationofanydocumentfiled,preparedanddevelopedinrelationtoanIRPproceeding.AnypartyseekingawaiverfromthisrequirementshallfileadulygroundedrequestwiththeCommission.Uponfilingofsuchrequest,theCommissionwillissuearesolutionnotifyingitsdeterminationwithregardstosuchrequestandadoptingappropriateremedies.

C) Except as otherwise authorized by the Commission, all allegations, appealsandmotionsshouldbewritteninEnglish.

D) AlldocumentssubmittedinanylanguagethatisnotSpanishorEnglishshallbeaccompaniedbyacertifiedtranslationintoEnglish.

Section1.11.-Severability.Ifanyarticle,provision,word,sentence,paragraphorsectionof thisRegulation ischallenged,foranyreason,beforeacourtanddeclaredunconstitutionalorvoid,suchruling shall not affect, damage, or invalidate the remaining provisions of thisRegulation and its effect shall be limited to the article, provision,word, sentence,paragraphorsectiondeclaredunconstitutionalorvoid.Thenullityor invalidityofanyarticle,word,sentence,paragraphorsectioninaspecificcase,shallnotaffectorjeopardize in any way its application or validity in any other case, unless it isexpresslyandspecificallyinvalidatedforallcases.

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Section1.12.-Forms.The Commission shall establish the forms it deems necessary to conduct theproceedingspursuanttothisRegulation,andshallinformthepublicviaitswebsite.Notwithstanding,thefactthattheCommissionhasnotadoptedoneormoreforms,isintheprocessofreviewingthem,ortheInternetwebsiteisoutofservice,shallnotrelieveanyoneof itsobligationtocomplywiththeprovisionsstatedhereinor theCommission’sorders.

Section1.13.-ModeofSubmission.Theforms,documentsandappearancesrequiredbyvirtueofthisRegulationoranyorderoftheCommission,shallbefiledwiththeCommissionpursuanttotherules,regulationsandinstructionsadoptedandpublishedbytheCommissiontosucheffect.Upon the initiation of an IRP proceeding, the Commission may adopt throughresolutionandorderspecificfilinginstructionsapplicabletosuchIRPproceeding.

Notwithstanding, any IRP filing made by PREPA prior to the adoption by theCommissionofspecificfilinginstructionsshallcomplywiththefollowing:

A) An original and three copies shall be physically filed and stamped at theCommissionClerk’sOffice.

B)Alongwiththe filing,PREPAshall includeoneormore flash-drives(thumb-drives)whichshallincludeasearchablePDFelectroniccopyoftheentirefiling(workpapersandsimilardocumentsshallbesavedintheirnativeprogramswithformulaeandreferencesintact).UndernocircumstancesshallPREPAfilea scanned, non-searchable copy of its filing (the only exception beingdocumentsattachedormadepartofPREPA’sfilingwhichwerenotproduced,developedorpreparedinrelationtotheIRPfilingandforwhichasearchablePDFversionisnotreasonablyavailable).

Section1.14.-EffectofSubmission.InfilingadocumentinrelationtoanyIRPproceeding,thepartymakingsuchfilingexpresslycertifiesandrecognizesthatthecontentofsaiddocumentistrueandthat,according to the signer’s best knowledge, information and belief, formed afterreasonable inquiry, the document is based on reliable facts, arguments, judicialsourcesandinformation.

Section1.15.-ConfidentialInformation.If incompliancewiththeprovisionsof thisRegulationoranyof theCommission’sorders,apersonisrequiredtofilewiththeCommissioninformationitconsiderstobe privileged or confidential pursuant to applicable evidentiary privileges, saidpersonshallidentifytheallegedprivilegedinformationandrequesttheCommissiontotreatsuchinformationasconfidential,pursuanttoArticle6.15ofAct57-2014.Inidentifying privileged information and requesting confidential treatment by theCommission,therequestingpartyshallfollowtherulesandproceduresadoptedfrom

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timetotimebytheCommissionforthefiling,handlingandtreatmentofconfidentialinformationinresolutionCEPR-MI2016-0009ascurrentlyamendedandasmaybeamendedfromtimetotime.Except inthecaseof informationprotectedundertheattorney-client privilege, the claiming of confidential treatment shall, under nocircumstances,begrounds fordenyingsuch information frombeing filedwith theCommission.

Section1.16.-Validity.PursuanttoSection2.8ofAct38-2017,thisRegulationshallenterintoeffectthirty(30)daysafteritssubmissiontotheDepartmentofStateandtheLegislativeLibraryoftheOfficeofLegislativeServices.

CHAPTERII–INTEGRATEDRESOURCEPLANNING

ARTICLEII.-PLANNINGPERIOD,CONTENTANDSCHEDULE

Section2.01.-PlanningPeriod;Effectiveness.A)TheIRPshallconsideraplanningperiodoftwenty(20)years.

B)AnIRPapprovedbytheCommissionshallremainineffectuntiltheapprovalofa subsequent IRPby theCommission,oruntilotherwiseestablishedby theCommissionthroughresolutionororder.

C) AnyproposalforanewIRP,oranyproposedupdate,revieworamendmenttoan existing IRP must be submitted to the Commission for evaluation andapproval.Anupdate,revisionoramendmenttoanIRP,inwholeorinpart,willnotenterintoeffectuntilitisapprovedbytheCommission.

Section2.02.-IntegratedResourcePlanFilingStructureandRequirementsA) TheIRPfilingshallbecomprisedofamainbodyandaccompanyingtechnical

appendices,asestablishedinparagraphs(B)and(C),below.

B) ThemainbodyoftheIRPfilingshallbeorganizedintothefollowingchapters:

PartOne-IntroductionandSummaryofConclusions

PartTwo-PlanningEnvironment

PartThree-LoadForecast

PartFour-ExistingResources

PartFive-ResourceNeedsAssessment

PartSix-NewResourceOptions

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PartSeven-AssumptionsandForecasts

PartEight-ResourcePlanDevelopment

PartNine-CaveatsandLimitations

PartTen-ActionPlan

C) Themainbodyof the IRP filing shall bewrittenas a coherent, stand-alonedocument designed to allow informed readers sufficient information tounderstand the process by which PREPA conducts long-term resourceplanning,andthekeyoutcomesofthatresourceplanning.

D) The technical appendices of the IRP filing shall include all ancillaryinformationanddescriptionsrequiredbythisRegulationbutnotincludedinthemainbodyoftheIRPfiling.ThefollowingtechnicalappendicesmustbeattachedtotheIRPfiling:

Appendix1-TransmissionandDistributionPlanning

Appendix2-PriorActionPlanImplementationStatus

Appendix3-RenewableEnergyProjectStatus

Appendix4-Demand-SideResources

Appendix5-NewandExistingSupply-SideResourcesSupplementalData

Appendix 6 - Additional information, as required by the Commissionthrough an Order, that may address additional subjects related tointegratedresourceplanning.

E) TheIRPfilingshallspecificallyidentifyandincludeallreferencestoexternalorinternal(PREPA)sourcedocumentsrelieduponforthedevelopmentoftheproposedIRP.

1) IfasourcedocumentispubliclyavailableontheInternet,aspecificlink(URLaddress)tothesourcedocumentshallbeprovided.

2) If a sourcedocument referencedbyPREPA inanyportionof its IRPfilingisnotpubliclyavailableorreadilyaccessible,anelectroniccopyofsuchsourcedocumentsshallbeprovidedalongwiththeIRPfiling.

3) Ifa sourcedocumentconsistsofa study, report,book,periodical,orotherpublicationnotpublicly availableor readily accessible,PREPAshallprovidecopiesoftherelevantpagesfromsuchsourcedocumentrelieduponbyPREPAinthedevelopmentofitsproposedIRP.Allpageswhicharenecessarytounderstandtherelevantpagesincontextshall

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beprovided.Uponrequest,PREPAshallmakeavailabletheentiretyofsuchsourcedocument.

F) WorkPapersandmodelsrelieduponbyPREPAinthedevelopmentoftheIRPshallbefiledconcurrentlywiththeIRP.

1) WorkPaperswhichareavailableinelectronicformshallbeprovidedelectronicallyinnativeformat.Allformulaeandviablelinksshallbeleftintact forallelectronic files.PREPAshall,ataminimum,providethefollowingworkpaperstotheCommissionuponsubmissionoftheIRP:

a) LoadForecastDevelopmentworkpapers;

b) FuelPriceForecastDevelopmentworkpapers;

c) ResourcePlanmodelinginputfiles;

d) ResourcePlanmodelingoutputfilesasusedbyPREPA;

e) Anypost-processingoranalysisworkpapersusedtoassesstheResourcePlanmodelingoutputfiles,includingfinancialmodelsused to calculate the present value of revenue requirements,rateimpactsorothercostelementsoftheIRP;

f) Electronic,spreadsheet-basedversionsofalltablesandfiguresaspresentedintheIRP.

2) PREPAshallprovidetotheCommissionanycomputermodelincludingthe software and licensure necessary for the Commission, or itsconsultants,toindependentlyrunanyanalysisrelieduponbyPREPA.Alternatively,PREPAmayprovidetheCommissionreasonableaccessto the computer model at the Commission’s offices or at anothermutuallyagreeable location.Suchaccessshallbeadequate toenablethe Commission to replicate the results and may include PREPAmanipulatingthecomputermodelaccordingtoinstructionsorinputsfrom the Commission. Reasonable access shall bemade available tointervenors. If PREPA seeks to limit access to the program orapplication to intervenors, the Commission will determine theappropriateaccesstotheprogramoritsoutput.

Section2.03.-IntegratedResourcePlanAnalysesandReportingRequirementsA) TheIRPshallassessandreportuponeachofthefollowingfactors,asdescribed

inparagraphs(B)through(N)ofthisSection.

B) Planning Environment- PREPA shall present a description of significantplanning and regulatory factors that affect the environment in which itoperatesaswellasthewayinwhichthesefactorsimpactPREPA’ssystem.

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1) PREPA shall describe, at a minimum, the following factors: federal,state, ormunicipal standardsand rules that impact the requirementfor, or availability of, energy efficiency, renewable energy, fuelalternatives, or other resource requirements; and environmentalstandards and regulations that impact existing utility resources orresource choices at the present time and throughout the planningperiod.

2) ThePlanningEnvironment section shall also include a discussion ofsubstantial regulatory or legislative standards and rules that havechangedsincetheapprovalofthemostrecentIRP.

C) LoadForecast-PREPAshallpresentaforecastoffuturecapacityandenergydemandrequirements,aswellasananalysisofpriorloadforecasts.

1) LoadForecastDocumentation-TheIRPshalldocumentthefollowingelementsoftheloadforecast.

a) Forecast Peak Demand and Energy- Forecast data shall bereported, on a year by year basis, covering the entire IRPPlanningPeriod,andshallinclude:

i. Thetotalannualelectricitygenerationandsalesfortheutility and consumption for each customer class,determinedinaccordancewithtariffsforbilling.

ii. The coincident peak electricity demand for the utilityandeachcustomerclass.

b) Forecastsshallbeprovidedforthereferencecaseaswellas,ataminimum,thelowandhighbaselineforecasts,asdescribedinSection2.03(C)(2)(a)(ii)and(iii)below.

c) Historic Peak Demand and Energy- Historic data shall bereported covering the ten-year (10-year) period prior to thefirstyearoftheIRPPlanningPeriod,andshallinclude:

i. Thetotalannualelectricitygenerationandsalesfortheutility and consumption for each customer classdeterminedinaccordancewithtariffsforbilling.

ii. The coincident peak electricity demand for the utilityandeachcustomerclass.

d) LoadForecastMethodologyDescription-PREPAshallprovideadetailed explanation of the method used to forecast loadrequirements throughout the Planning Period, the significant

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determinant variables that were incorporated in the LoadForecastmethodology,andthemethodusedbyPREPAtoselectthereference,highandlowloadforecasts.

e) Prior Load Forecast Evaluation- PREPA shall prepare anevaluationoftheloadforecastprovidedinthemostrecentIRP,whichshallinclude:

i. Anassessmentof theannual accuracyof thepreviousforecastingincludingacomparisonofforecastedversusactualdata;

ii. Anexplanationofthecauseofanysignificantdeviationbetween the previous forecasts and the actual annualpeakdemandandenergythatoccurred.Forpurposesofthis sub-section, significant deviation refers to adifferenceofmorethan5%.

iii. An explanation of the impact that historical demand-sideresourceshadonthepriorloadforecast.

2) LoadForecastAnalysis-PREPAshalldeveloppeakelectricitydemandandannualelectricityconsumptionforecastsforeachyearoftheIRPPlanningPeriod,accordingtothefollowingcriteria:

a) PREPAshallprepareatleastthree(3)baselineLoadForecaststoreflectareasonablerangeoffutureuncertainties:

i. A reference case representing PREPA's bestunderstanding of expected circumstances or medianprobabilityoutcomes;

ii. A low case where customer electricity demand andconsumption are significantly below utility medianexpectationsthroughthePlanningPeriod;and

iii. A high case where customer electricity demand andconsumption are significantly above utility medianexpectationsthroughthePlanningPeriod.

b) The Load Forecasts shall be developed using methods thatexamine the effect of economic factors on electricityconsumption,aswellastheeffectoftheuseoflandsundertheLandUsePlanforPuertoRico.

c) A reasonable set of assumptions for econometric and/or endusevariablesshallbeincludedinthedevelopmentofthelong-

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termLoadForecasts.

d) The Load Forecasts shall take into account all anticipatednaturally occurring energy efficiency, as well as any energyefficiencyresulting fromexistingandexpectedbuildingcodesandappliancestandards.

e) Utility-sponsored or third-party energy efficiency and/ordemand-responseprogramsshouldbeconsideredincrementalsystem resources and thus excluded from the baseline LoadForecasts.

f) TheLoadForecastsshallreflectnormalweatherconditions.

g) PREPA shall analyze and consider the impact that existingdemand-side resources, anticipated changes to rate design,building codes and standards, deployment of distributedgeneration,andotherimportantfactorsareexpectedtohaveontheLoadForecast.

h) PREPAshallanalyzeandconsidertheimpactoftechnicallossesintheLoadForecast,includingtheextenttowhichtheforecastincludes the effects of current and planned technical lossreductionprograms.

i) PREPAshallanalyzeandconsiderthe impactofnon-technicallosses in theLoadForecast, including theextent towhich theforecast includes the effects of current and planned non-technicallossreductionprograms.

D) ExistingResources-PREPAshalldescribeallexistingresourcesthatserveormeet PREPA’s customer’s energy and capacity requirements. The IRP shallincludethefollowing:

1) ExistingSupply-SideResourceDocumentation-PREPAshalldescribethe energy supply from existing supply-side resources, providinginformationaboutthefleetofgeneratorsthatservePREPAcustomers.

a) PREPA shall describe each type of supply-side resources,includingatleastthefollowingcategories:

i. Utility-ownedgeneration;

ii. Wholesalepowerpurchasetransactionsthatareone(1)yearorlongerindurationandadetaileddiscussionofthesame,includingthetermofthecontract,expirationdate, pricing provisions, source of the power, fuel

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source,andotherrelevantinformation;

iii. CogenerationandSmallPowerProduction;

iv. DistributedGeneration;

v. Pooling or coordination agreements that reduceresourcerequirements;and

vi. Anyothersupply-sideresources.

b) ExistingSupply-SideResourceTable-Thefollowinginformationconcerningeachexistingsupply-sideresourceshallbesupplied,asapplicable,intheformofacoherenttable(s)inthebodyoftheIRP:

i. Resourcetype;

ii. Nameplateandpeakavailablecapacity;

iii. Annualcapacityfactorforeachofthelastfive(5)years;

iv. Fueltype;

v. Ownership information, including the portion of theresource owned by PREPA, by a private projectdeveloper,orbyacustomer;

vi. Location(districtormunicipality);

vii. Commercialoperationdate;

viii. Remainingservicelife;

ix. Anyanticipatedprojectsorprogramsthatwouldalterremainingservicelife;

x. Remainingcontractlife;

xi. Averageannualheatrateoverthelastfive(5)years;

xii. CurrentfuelcostindollarsperMMBtu;

xiii. Current variable operations and maintenance (O&M)costindollarsperMWh;

xiv. Current total production cost in dollars per MWh,includinganyothernecessaryvariablesasidefromfuel

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andvariableO&Mcosts;

xv. CurrentfixedO&McostindollarsperkW;

xvi. Averageannual capital expendituresover the last five(5)yearsintotaldollars;

c) Existing Supply-Side Resource Supplemental Data- Thefollowing information concerning each existing supply-sideresourceshallbe suppliedaspartofAppendix5 identified inSection2.02(D)ofthisRegulation.

i. Allinformationinsub-section(b)above;

ii. Expectedretirementdateforanyresourceexpectedtoretire within the first ten (10) years of the PlanningPeriod, and an explanation of the reason for theretirement;

iii. Datesforrenewalofoperatinglicensesandpermits,totheextentapplicable;and

iv. Compliance schedule with current, proposed, andreasonably anticipated regulatory (includingenvironmental regulatory) and legal requirements, totheextentapplicable;

v. Expected capital and operating costs for compliancewith current, proposed, and reasonably anticipatedregulatory (including environmental regulatory) andlegalrequirements,totheextentapplicable;

vi. Expected yearly non-environmental capitalexpendituresforthefirstten(10)yearsofthePlanningPeriod, including any improvements to operationalefficienciesorextensionsoftheusefullife;

vii. Any importantchangesto theresourcesthatoccurredsince the approval of themost recent IRPorwhich isexpectedtooccurpriortothefilingofareview,updateoramendmentIRP,including:

A. Adescriptionofeach largecapitalproject (over$5,000,000)expectedinthenext(5)years;

B. Changesinfueltypes,orprocurementsourcesorstrategies;and

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C. Operational changes expected to result fromeconomic restrictions or environmentalregulations.

2) Existing Demand-Side Resource Documentation- The IRP shalldescribealldemand-sideresourcescurrentlybeingimplementedbyoronbehalfofPREPA.Theresourcedescriptionsshallbeconsistentwiththe most recent Energy Efficiency and Demand Response AnnualReport and Energy Efficiency and Demand Response Plan (“AnnualReportandPlan”),asdescribedinSection4.01ofthisRegulation.Anyinconsistencies or changes with respect to existing demand-sideresources relative to what is described in the most recent AnnualReportandPlanshallbedescribedindetail.

E) Resource Needs Assessment– PREPA shall prepare a Resource NeedsAssessmentanddescribeindetailtheresultsofsuchassessment.Thepurposeof the Resource Needs Assessment is to identify current and/or futureexpectedcapacityand/orenergyrequirementsresultingfromtheexpectedorcontractualretirementof,orcessationofservicesfrom,existingsupplyanddemand-sideresourceswhencomparedagainstforecastloadconditions.TheResourceNeedsAssessmentshallcontainatleastthefollowingelements:

1) PlanningReserveMarginAssessment-PREPAshallassessanddescribein detail its expected Planning Reserve Margin over the PlanningPeriod.

a) ThePlanningReserveMarginAssessmentshallfollowindustrystandardsinassessinganecessaryplanningreservemargintomaintainreliableserviceduringthePlanningPeriod.

b) To the extent that theReserveMarginAssessment cannot bedevelopedindependentlyofaresourceplan,PREPAmayuseitsthen-currentbusinessplantoassessanddescribethenecessaryplanningreservemargin.

c) PREPA shall demonstrate why the Planning Reserve Margintargetsinitsforecastarereasonable.

2) Load and Resource Balance- PREPA shall prepare a coherent tableshowing, by year, the expected capacity of each existing supply-sideand existing demand-side resource, its load requirements, and loadrequirements including the Planning Reserve Margin. PREPA shallidentifyitsannualnetpositionrelativetoitsexpectedneedsduringthePlanningPeriod.

F) NewResourceOptions-PREPAshalldescribenewresourceoptionsthatmayreasonably serve or meet PREPA's customer's energy and/or capacity

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requirements.

1) NewSupply-SideResourceOptionIdentification–TheIRPshallidentifyand evaluate a wide range of new supply-side resource options,including renewable and non-renewable options, to be used in thedevelopmentoftheIRP.WhilePREPAmaydesignatespecificoptionsas not feasible for future development, such designations must beaccompaniedbyaclearandcomprehensiveexplanationthatjustifiesPREPA’s determination on the basis of cost, resource availability, orengineeringfeasibility.

a) NewSupply-SideResourceOptionsTable-Foreachsupply-sideresourceoptionidentifiedasafeasiblealternative,PREPAshallprovidethefollowinginformation,asapplicable,intheformofacoherenttableinthebodyoftheIRP:

i. Resourcetype;

ii. Location, if a specific project site has been identified;otherwise, restrictions and other considerations thatmaydictateresourceplacement;

iii. Capacity;

iv. Fueltype;

v. Capacityfactorforrenewableenergyresources;

vi. Effective load carrying capacity (ELCC) or capacitycontributiontopeak;

vii. Ownership information including the portion of theresource owned by PREPA, by a private projectdeveloper,orbyacustomer;

viii. Anticipatedservicelife;

ix. Heatrate;

x. Overnightcapitalcost;

xi. FixedO&Mcost;

xii. VariableO&Mcost;

b) New Supply-Side Resource Options Supplemental Data- Foreach of the resources identified in (a) above, the followinginformationshallbesuppliedaspartofAppendix5identifiedin

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Section2.02(D)ofthisRegulation.

i. Allinformationin(a),above,and

ii. Other costs to construct and/or operate the resource,includingfinancingcosts,propertytaxes,supplementalpayments,andinterconnectioncosts;

iii. Lead time necessary to plan and build, or acquirethroughapowerpurchaseagreement;

iv. AnyconstraintsontheacquisitionorconstructionoftheresourceasappliedbyPREPAintheCapacityExpansionModel, including first potential date of construction,maximumunitsfeasibletoacquireorconstructperyear,andtotalnumberoftheresourcesallowedinthemodelthroughthePlanningPeriod;

v. AnyconstraintsontheoperationorthedispatchoftheresourceasappliedbyPREPAinitsmodeling,includingminimumup-time,minimumdown-time, or energyoreffluentlimitations;

vi. Anyimpactofthelocationoftheresourceonreliabilityandsystemresilience;

vii. EvaluationoftheinterconnectionofrenewableenergyprojectsandotherindependentpowerproducerstotheutilitysysteminordertocomplywithAct82-2010,asamended.

2) New Distributed Generation Resource Identification- The IRP shallincludeaprojectionandaccount for expected types andamountsofcustomer-owneddistributedgeneration,bycustomerclass.

a) PREPA shall provide an analysis that forms the basis of itsprojections.

b) PREPAshallincludeitsprojectionsofdistributedgenerationinthe IRP as an expected reduction from the baseline LoadForecasts.

3) NewDemand-SideOptions Identification-The IRP shall identify andincludeawiderangeofpotentialnewenergyefficiencyanddemandresponseprograms.

a) PREPAshallidentify,andincludeinitsanalysis,alldemand-side

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programscurrentlybeingofferedbyoronbehalfofPREPA.

b) PREPA shall provide a detailed description of the energyefficiencyprogramsdevelopedandimplementedinconjunctionwiththeGovernmentofPuertoRicotocomplywithChapterIVofAct57-2014,and the impactof suchprogramsonPREPA’sResourcePlan.

c) TheIRPshallconsiderallavailablecost-effectiveefficiencyanddemandresponsemeasuresandprograms.

d) The IRP shall consider bundles of demand-side resources atvarying levels of cost and effectiveness and theirimplementationthroughoutthePlanningPeriod.TheIRPshalllist constraints on the acquisition of those resources, such asramprate,expectedlifetimeordecay,andyearavailability.

e) The IRP shall consider the estimated cost of developing andimplementing sufficient demand-side resources such that atargetincrementalsavingofatleasttwopercent(2%)peryear,foratleast10years,isachieved.

4) New Storage Resource Identification- The IRP shall identify andevaluateelectricalenergystorageoptions,includingbatteries.

a) For each electrical energy storage option considered, the IRPshalldescribetheanticipateduseofthestorageoption,whetherto reduce renewable curtailment, provide voltage andfrequencystabilityand/orregulation,orotherpurposes.

b) TheIRPshallincludeavaluationframeworkforenergystorageoptions.Suchvaluationframeworkwillcontemplateatleastthefollowing:

i. Valueprovidedbyprovisionofancillaryservices(whichmay include, but arenot limited to, avoidanceof loadshedding);

ii. Value provided by load-shaping services (which mayinclude, but are not limited to, load shifting or peakshaving);and

iii. Value provided by locational benefits (which mayinclude, but are not limited to, congestion relief ordeferralofT&Dupgradesorexpansions).

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G) AssumptionsandForecasts

1) Model Assumption Documentation- The IRP shall document keymodelingassumptionsandinputs,including,atleast,thefollowing:

a) AnnualfuelpricesforeachdeliveredfuelatPuertoRico;

b) Annualemissionprices;

c) Economicconditions;

d) Environmentalregulations;

e) Other non-environmental regulations, including renewableportfoliostandards;

f) Utilitydiscountrateorweightedaveragecostofcapital;

g) Annualdebtlimitations;

2) Model Assumption Development- The IRP shall identify factors thatwillsignificantlyinfluencekeyforecasts(includingelectricitydemand,electricityconsumption, fuelprices),anddeveloparangeofpossibleoutcomesforthoseforecastsencompassingatleastthefifth(5th)andninety-fifth(95th)percentileoutcomesasunderstoodbyPREPA.

a) ForecastsshouldincludeexogenouselementsbeyondPREPA'scontrol,includingbutnotlimitedto:

i. Economicconditions;

ii. Environmentalregulations;

iii. ChangesincustomerloadnotcausedbyutilityDemand-SideResources;

iv. Customer-siteddistributedgeneration;

v. Fuelprices;

vi. Emissionscosts;and,

vii. Capitalcosts.

b) Foreachforecast,theIRPshallidentifyareferencecaseforecast,anddescribethebasisoftheforecastrangeidentified.

c) Scenario Development- The IRP shall consider multiple

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scenarios that encompass the reasonable range of possibleoutcomes foruncertain forecasts.Scenariosmaycombinekeyforecastsinamannerthatenablesareasonableexplorationofthe range of foreseeable risks to the safety, reliability, andaffordabilityofretailservices.TheIRPshallconsiderasufficientnumberofscenariostobothdescribefeasibleor likelysetsofforecasts,aswellascaptureawiderangeofpossiblerisks.

i. PREPA shall justify the scenarios used and excludedfromconsideration,anddescribewhythecombinationsassessedrepresentareasonablerangeofrisks.

ii. To theextent thatPREPAreliesonexplicitor implicitrelationshipsorcorrelationsbetweenforecasts,PREPAshalldescribethebasisoftherelationships.

iii. PREPAshallincorporateanyscenariosrequiredbytheCommission as identified in Section 3.01(A) of thisRegulation.

d) ReferenceCaseScenario-TheIRPshallincludeaReferenceCaseScenario,representingPREPA'sbestunderstandingofexpectedcircumstancesormedianprobabilityoutcomes.

H) ResourcePlanDevelopment

1) ResourcePlanDevelopmentDocumentation-TheIRPshallidentifyindetailthemechanismsusedbyPREPAindevelopingitsResourcePlans.

a) The IRP shall include, within the main body of the IRP, thefollowing:

i. Comprehensive descriptions of the modelingmechanisms used in the development and sensitivityanalysis of each Resource Plan, based on CapacityExpansion Models. PREPA may in addition useproduction costs models, a heuristic approach, or acombinationofthetwo.Thedescriptionshouldidentifykeystepsto incorporate inputsandassumptions fromsub-sections(C)through(G),above.

ii. Descriptions of key Resource Plan assumptions andpurposes,includingconsiderationofstakeholderinputandCommissionrequirements.

iii. A coherent table illustrating the key differencesbetweenResourcePlans,includingannualretirements,

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retrofitsorconversions,andnewbuildsforbothsupplyand demand-side resources, changes in capacity(upratesorderations)ofexistingsupplyanddemand-sideresources,changesintransmissionordistributionsystems,keyassumptions,andResourcePlancost.

iv. A description of the mechanism and criteria used toselect the Preferred Resource Plan, following therequirementsinSection2.03(H)(2)(d)below.

v. A coherent Load and Resource Balance table for thePreferredResourcePlanshowing,byyear,theexpectedcapacity of each existing and new supply-side anddemand-side resource, its expected peak load, itsPlanning Reserve Margin, and its total loadrequirements including the Planning Reserve Margin.PREPAshall identifyitsannualnetpositionrelativetoitsexpectedneedsduringthePlanningPeriod.

b) For the PreferredResource Plan, and for eachResource PlanconsideredintheIRP,theIRPshallinclude,ataminimum,thefollowingsupplementalinformation:

i. Atableofannualcapacitycontributionbyresource;

ii. Atableofannualgenerationbyresource;

iii. Atableofannualemissionsbyresource;

iv. Atableofannualfuelconsumptionbyfueltype;

v. Acash-flowtablecomprisedofannualcostvaluesfor,ataminimum, fuel spending by type of fuel, generationcapital,transmissioncapital,fuelinfrastructurecapital,totalgeneratingunitvariableO&M,totalgeneratingunitfixedO&M;fuelinfrastructureO&M;CO2,NOx,andSO2emissions; fossil power purchase agreements; andrenewablepowerpurchaseagreements.

2) ResourcePlanDevelopmentAnalysis-

a) Resource Plan Development Modeling- The IRP shall use aCapacityExpansionModeltodevelopleast-costResourcePlansthatmeetcustomerneedsunderthereferencecasescenarioandvariousfuturescenarios.PREPAmustseek,andreceive,waiverfrom the Commission to use a Resource Plan DevelopmentmodelotherthanaCapacityExpansionModel,inwhichcasethe

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Commission may adopt through resolution any and allappropriate requirements to ensure reliability of theinformation and conclusions produced and presented byPREPA.

i. TheCapacityExpansionModelshallataminimum:

A. Seek to optimize the present value of revenuerequirementsoverthePlanningPeriod;

B. Considerdemand-sideresourcesinacompetitiveframeworkwithsupply-sideresources;

C. Recognizeallutility-bornecostsassociatedwiththedevelopmentofnewresources;

D. Recognize all utility-borne costs, as well asavoidedcosts,associatedwiththeretirementormodificationofexistingresources.

ii. CoststhatPREPAhasincurredorcommittedpriortothecommencementof thePlanningPeriod (including,butnotlimitedto,existingplantbalances,committedcapitalexpenditures, and rate-based costs) shall not beassessed in theCapacityExpansionModelunless theyare specifically avoidable through the procurement ofnew assets or retirement or modification of existingassets.

iii. PREPA shall use the Capacity Expansion Model todevelop a comprehensive set of Resource Plans toincludeawidevarietyofsupply-side,energyefficiency,anddemandresponseresources.

iv. Supply-sideresourcesshallincludevariousoptionsforearly retirement of existing power plants, forrefurbishmentorrepoweringofexistingpowerplants,andfordeferralofnewpowerplantswherefeasible.

v. Supply-sideresourcesshallalsoincludeanychangesinthe transmission or distribution systems thataccompany generation resources or are necessary forthemaintenanceofsystemreliability.

vi. Energyefficiencyanddemandresponseresourcesshallincludeprogramswithavarietyofdifferentcostlevels,inordertoassistintheidentificationofallcost-effective

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energyanddemandresponseresources.

vii. PREPA shall incorporate anyResourcePlans requiredbytheCommissionasidentifiedinSection3.01(A).

viii. PREPAshallprovideacomprehensivediscussionofanyResource Plans excluded from consideration on thebasisofreliabilityorviability.

ix. Each Resource Plan shall be designed to ensure thatPREPAcomplieswiththerenewableportfoliostandardrequirementsofAct82-2010.

b) ResourcePlanSensitivityAnalyses-EachoftheResourcePlansresultingfromtheResourcePlanDevelopmentModelingshallbe subjected to sensitivity analyses exploring a reasonablerangeofuncertaintyinforecastassumptions.Thepurposeistoexamine the robustness of resource plans created in theoptimization analysis (i.e., how each resource plan would beaffectedbychangesininputassumptions).

i. The sensitivity analyses shall hold the resourcesdevelopedineachResourcePlanconstant,andexaminetheimpactsofchanginguncertainforecasts.

ii. PREPA shall consider the following factors in theuncertaintyanalysis:

A. forward-lookingeconomicconditions;

B. environmentalregulations;

C. changes in customer electricity demand andconsumption;

D. customergeneration;

E. fuelprices;

F. environmentalcostsorrestrictions;

G. constructioncosts;and,

H. combinationsthereofasreasonable.

iii. PREPAmaychoosetouseeitherthedevelopedPlanningScenarios as sensitivities, develop a broader range ofsensitivities, including single-factor sensitivities and

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multiple factor sensitivities, or use a Monte Carloanalysis framework, wherein uncertain forecasts arechosen and combined stochastically. The IRP shalldescribeandjustifythebasisofthesensitivityanalysismade.

iv. The IRP shall present the outcome of each sensitivityanalysis in present value of revenue requirements. IfPREPAutilizesaMonteCarloanalysis,resultsshouldbepresentedasthemedianoutcomeandthefifth(5th)andninety-fifth(95th)percentilecosts.

v. ThesesensitivityanalysesshouldbeusedtoinformtheselectionofthePreferredResourcePlan.

c) HybridizedAlternativeResourcePlans-PREPAmaychoosetomodifyoneormoreoftheoptimizedResourcePlansbasedontheoutcomesofthesensitivityanalysis, ifsuchamodificationresults in a Resource Plan that is of a comparable cost anddemonstrablyrobustinthesensitivityanalysis.

i. PREPAshalljustifythemodificationsithasmadetotheResource Plans used in the Hybridized AlternativeResourcePlan.

ii. The use or analysis of this Hybridized AlternativeResourcePlandoesnotprecludethecompleteanalysisofotherResourcePlansinthesensitivityanalysis.

d) Preferred Resource Plan- PREPA shall select a PreferredResourcePlanfromamongtheResourcePlansdevelopedandevaluatedintheoptimizationandsensitivityanalyses.

i. In selecting the PreferredResourcePlan, PREPA shalluse theminimization of the present value of revenuerequirementsastheprimaryselectioncriterion.

ii. PREPAshallalsoconsiderothercriteria including,butnot limited to, system reliability; short and long-termrisk; environmental impacts; transmission needs andimplications; distribution needs and implications;financial impactsonPREPA;andthepublic interestassetforthinAct57-2014.Wheremeetingtheseneedsisassociatedwithquantifiablecosts, thesecostsshallbeincluded in the calculation of the present value ofrevenuerequirements.

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iii. TheIRPshallincludeadetaileddiscussionofeachoftheabovefactorsinsupportofitsPreferredResourcePlan.PREPAmayopttochooseaplanthatisnotthelowestcost, provided that, in doing so, it presents a detaileddescription of all the criteria and reasoning used toselectthePreferredResourcePlanthatisnotthelowestcost.

I) CaveatsandLimitations-TheIRPshallincludeanannotatedlistofkeycaveatsand limitations of its analysis, including the impact of uncertainty, themodelingmechanism,keyregulatoryandprojectexecutionassumptions,andcosts. The purpose of this section is to illustrate PREPA’s certainty withrespecttothePreferredResourcePlan.

J) TransmissionandDistributionPlanning

1) TransmissionandDistributionSystemDocumentation

a) Existing Transmission Facilities Descriptions- The IRP shallinclude a brief narrative description of the existing electrictransmissionsystemandidentifyanytransmissionconstraintsand critical contingencies. The information shall include at aminimum:

i. A summary of the characteristics of all existingtransmission and subtransmission facilities of thirty-eightkilovolts(38kV)orhigher;

ii. A discussion of whether the transmission systemconstrains the transfer of electricity from existingprojects, potential new projects, or projects underdevelopment or consideration, including a detaileddescription of its ability to interconnect intermittentrenewable generation projects and microgrids, asapplicable;

iii. A schematic map of the transmission andsubtransmissionnetworkshowingtransferlimits;and

iv. A map showing the actual, physical routing of thetransmission and subtransmission lines, geographiclandmarks,majormetropolitanareas,andthelocationof substations and generating plants, andinterconnections with distribution, The IRP shallincludetwocopiesofthismapona1:250,000scale.

b) Existing Distribution Facilities Description- The IRP shall

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characterize the distribution system, including a detaileddescription of its ability to accommodate incrementalpenetration of distributed generation, including intermittentdistributedgeneration,anditsabilitytoreceivenewloadsovertime, such as, for example, increasingpenetrations of electricvehicles.

c) ExistingAdvancedGridTechnologiesDescription-TheIRPshallidentifytheareaswithintheserviceterritorywhereadvancedmeters and other advanced grid technologies have beeninstalled,alongwithanyplanstoexpandtheintegrationofanysuchtechnologiesintoitssystem.TheIRPshallincludeabriefdescriptionoftheinstalledadvancedgridtechnologies.

d) Planned Transmission Facilities Description- The IRP shallprovideadetailednarrativedescriptionofanyplannedelectrictransmissionandsubtransmission facilities,andadescriptionof the plans for development of facilities during the next tenyearsofthePlanningPeriod.Thedescriptionshallinclude,ataminimum,allinformationregarding:

i. Newlines,includinganyrequirementsofnewrights-of-way;

ii. Lines inwhich changes in capacity, either in terms ofcurrent,voltageorboth,arescheduledtotakeplace;and

iii. Other changes in transmission lines or rights-of-way,whichwouldbeconsideredassubstantialadditions.

iv. Alistingofallproposedsubstationsincludingsizeandlocation.

v. The transmission forecast shall include maps of theplannedtransmissionsystemasfollows:

A. Amap showing the planned transmission lines,substation,andgeneratingplantsastheywilltieintotheexistingsystemtoprovideascompleteapictureofthesystemasispossible.

vi. PREPA shall submit a substantiation of transmissiondevelopmentplans,including:

A. Description and transcription diagrams of thebase case load flow studies, one for the currentyearandoneasprojectedfiveandtenyearsinto

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the future, and provide base case load flowstudiesoncomputerdisksinPSSEorPSLFformatalong with transcription diagrams for the basecases.

vii. A tabulation of and transcription diagrams for arepresentative number of contingency cases studiedalongwithbriefstatementsconcerningtheresults.

viii. AdequacyofPREPA’stransmissionsystemtowithstandnaturaldisastersandoverloadconditions.

ix. Analysis of PREPA’s transmission system’s ability topermit power interchange with microgrids and otherindependentpowerproducers.

x. AdiagramshowingPREPA’simportandexporttransfercapabilities and identifying the limiting element(s)during each season of the next ten years. In addition,PREPA will provide a listing of transmission loadingrelief (TLR) procedures called during the last twoseasons for which actual data are available. For eachTLRevent,thelistingshallincludethemaximumlevel,and the duration at the maximum level, and themagnitude(inMW)ofthepowercurtailments.

xi. A description of any studies regarding transmissionsystemimprovement,including,butnotlimitedto,anystudiesofthepotentialforreducinglinelosses,thermalloading, and low voltage, and for improving access toalternativeenergyresources.

xii. Aswitchingdiagramofthetransmissionnetwork.

e) Planned Distribution Facilities Description- The IRP shallprovideadetailednarrativedescriptionofanyplannedchangesin approach, standard practice, or broadly applicablesubstation, circuit, or feeder design for PREPA’s distributionsystemforthenexttenyears.Thisdescriptionshalladdressanychanges in distribution facilities that impact the ability toaccommodate incremental penetration of distributedgeneration, including intermittentdistributedgeneration, andtheabilitytoreceivenewloadsovertime.PREPAshallsubmitasubstantiationofdistributiondevelopmentplans,including:

i. Loadfloworothersystemanalysisbyvoltageclassofthe electric utility's distribution system performance

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thatidentifiesandconsiderseachofthefollowing:

A. Any thermaloverloadingofdistribution circuitsandequipment.

B. Any voltage variations on distribution circuitsthatdonotcomplywiththecurrentversionoftheAmerican National Standard Institute (“ANSI”)Standard C 84.1, electric power systems andequipment voltage ratings or standard as lateramended.

ii. Adequacy of the electric utility distribution system towithstandnaturaldisastersandoverloadconditions.

iii. Analysis and consideration of any studies regardingdistribution system improvement, including, but notlimitedto,anystudiesofthepotentialforreducinglinelosses, thermal loading and low voltage or any otherproblems, and for improving access to alternativeresources.

2) TransmissionandDistributionSystemAnalysis

a) TheIRPshallidentifyPREPA’stransmissionstandardsandshallconfirm that the PREPA transmission standards are incompliancewiththestandardsoftheNorthAmericanElectricReliability Corporation. If any of PREPA’s transmissionstandards are inconsistent with standards from the NorthAmerican Electric Reliability Corporation, then PREPA shallidentify each such inconsistent standard and provide theexplanationandrationalefortheinconsistency.

b) The IRPshall includeaSystemStabilityAnalysis,establishingoperational criteria, definingAncillary Services requirements,anddemonstrating least-costmitigationsolutions tomaintainsystemstability;

c) TheIRPshall identifythermalandvoltagereliability issues inPREPA’stransmissionsystemanddistributionsystems;

d) TheIRPshallidentifytransmission,distribution,andsubstationpotential improvements to increase reliability and meetminimumtransmissionstandards;

e) The IRP shall document the transmission and distributionimplicationsofthePreferredResourcePlan,includingassessing

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if the plan requires incremental transmission or distributionmitigationorchanges.

K) Action Plan- The purpose of the Action Plan is to specify implementationactionsthatneedtobeperformedduringthefirstfiveyearsofthePlanningPeriod as a result of the Preferred Resource Plan. The Action Plan is notintended to replace or modify additional resource certification processesrequiredbystatuteorotherCommissionrulesandorders.

1) ActionPlanDocumentation- TheActionPlanshall includea tableofkeyactionsinthefirstfiveyearsafterapprovaloftheIRPincluding,ata minimum, expected procurement processes for supply-sideresources and energy efficiency, permitting requirements,constructionactivities,requiredstudies,andothersignificantevents.The Action Plan shall cover intended acquisitions of demand-side,supply-side, transmission, distribution, and/or fuel infrastructureresources; retirements and/or retrofits of existing generatingresources;entranceinto,renegotiationorcessationofpowerpurchaseagreements;andanyotherresourcecommitments.

a) Foreachaction,theIRPshallspecifyandprovide:

i. The expected calendar year and quarter inwhich theactionwillbecommenced;

ii. The expected calendar year and quarter inwhich theactionwillbecompleted;

iii. Issuancesofpermitsandotherregulatoryactionsthatare required in order for the resource action to takeplace.

iv. For any major expected resource acquisitions,retirements, retrofits or power purchase agreements,theactionplanshallprovideinformationonthecostoftheoptionchosenandtheplanforfinancingthatoption.

v. The anticipated impact of the resource action on anyrelevant Performance Metrics established by theCommissionasdescribedinSection5.01.

vi. Any other information required by the Commissionthroughresolutionororder.

2) ActionPlanDevelopment.

a) TheActionPlanshallbebasedonthePreferredResourcePlan

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describedinsubsection(H)(2)(d)above.

b) TheActionPlanshallcoveraperiodofnolessthanfive(5)yearsfromthedateoffilingoftheIRP.InformationshallbeprovidedforanyactivitiesthatareorwillbeunderwayorplannedtotakeplacewithintheActionPlanperiod.

c) TheActionPlan shall account for environmental impacts andshall discuss the plans to meet environmental regulatoryrequirements at existing resources subject to suchrequirements.

d) The Action Plan shall comply with all laws and regulationsenactedthataddressrequirementsfordemand-sideresourcesandsupply-sideresources,includingbutnotlimitedtoAct82-2010.

e) AnygivenActionPlanwillremainineffectuntilanewActionPlanisapprovedaspartofasubsequentIRPproceedingoruntiltheCommissionstatesotherwise.

L) Prior Action Plan Implementation Status Update- The IRP shall provide astatusupdateontheimplementationoftheActionPlanineffectatthetimeofthefilingoftheIRP(orthemostrecentActionPlan,ifthefilingofaproposedIRPoccursaftertheexpirationofanypreviousActionPlan).Thisstatusupdateshallincludethefollowing:

1) AnitemizedlistofeachelementofthepriorIRPActionPlan;

2) AdescriptionofPREPAactionstakentoexecuteeachactionitem;

3) Anychangestodateinthetimeframeofexpectedcommencementandcompletion,permittingorregulatoryrequirements,orremovaloftheactionitembasedoninterveningevents;

4) Anychanges topermitting, engineeringor constructionprocessesofMajorProjectsalreadyinprogress;and

5) AdescriptionofthecauseofanychangestothepriorIRPActionPlan.

M) RenewableEnergyProjectStatusUpdate-TheIRPshallincludeanassessmentof new and contracted renewable energy projects, and PREPA’s expectedability to meet renewable portfolio standard targets. This update shall becomprisedofthefollowing:

1) AnitemizedlistofeachnewrenewableenergyprojectundercontractbutnotyetbuiltatthetimeoftheIRPfiling.Foreachproject,theIRP

35

shallidentify:

a) If theprojectwas includedas anexisting resource in the IRPfiling;

b) IftheprojectwasincludedasalikelynewresourceintheIRPfiling,andtheexpectedonlineyear;

c) PREPA’scontractedenergypricefortheproject,includinganyapplicablepriceescalators;

d) Any other expected payments to be made by PREPA for theproject, including renewable energy supplemental payments,capacity payments, or fixed charges, and a description of thepriceandpricestructureforsuchpayments;

e) Thecontracting,permitting,financingandconstructionstageoftheproject;and

f) PREPA’sassessmentofthelikelihoodofprojectcompletion.

2) AnassessmentofPREPA’sexpectedabilitytomeetrenewableportfoliostandard targets, including a table showing PREPA’s anticipatedcompliancepositionforeachyearofthePlanningPeriod.

N) Demand-SideResourcesStatusUpdate-TheIRPshallincludeanassessmentofnewandcontracteddemand-sideenergyandcapacityprojects, includingenergyefficiency,demand-response,distributedgeneration,andloadcontrolprograms. This update shall be comprised of an itemized list of each newdemand-side resourceprogramundercontractbutnotyet implementedorbuiltatthetimeoftheIRPfiling.Foreachproject,theIRPshalllist:

1) IftheprojectwasincludedasanexistingresourceintheIRPfiling;

2) IftheprojectwasincludedasalikelynewresourceintheIRPfiling,andtheexpectedonlineyearorexpectedprogramoperationdate;

3) PREPA’s contracted energy price for the project, including anyapplicablepriceescalators;

4) PREPA’s contracted capacity price for the project, including anyapplicablepriceescalators;

5) AnyotherexpectedpaymentstobemadebyPREPAfortheproject,andadescriptionofthepriceandpricestructureforsuchpayments;

6) Thecontracting,permitting,financingandimplementationstageoftheproject;and

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7) PREPA’sassessmentofthelikelihoodofprojectcompletion.

Section2.04.-ScheduleandFiling.A) AsrequiredbyArticle6.23ofAct57-2014andSection6B(h)ofAct83,every

three(3)yearsfromthedateofapprovalbytheCommissionofanIRP,PREPAshallsubmitforCommissionapprovalanIRPproposalinaccordancewiththeprovisions of this Regulation and applicable Commission resolutions andorders.Inthecaseofasubstantialchangeintheenergydemandorgroupofresources, the Commission may order that the review of the next IRP becarriedoutbeforethethree(3)yearsprovidedinhereintorespondtoand/ormitigatesuchchanges.

B) WhenfilinganIRP,PREPAshallsimultaneouslypublishonitswebsiteatrueand exact copy, subject to applicable confidentiality privileges, of the IRPproposalsubmittedtotheCommission.

ThefilingoftheIRPshallinitiateaproceedingattheCommissionpursuanttotheprovisionsofthisRegulation,andtotheprovisionsofCommissionRegulationNo. 8543. In the event of any discrepancy between the provisions of thisRegulation and the provisions of Regulation 8543, the provisions of thisRegulationshallprevail.

Section2.05.-Update,AmendmentorReviewtoanApprovedIRPA) Atanymomentpriortothe3-yearfilingrequirementfornewIRPproposals,

PREPAmay,submitaproposedupdate,amendmentorreviewtoanapprovedIRP. Reasons that might warrant PREPA to consider proposing an update,amendmentorreviewtoanapprovedIRPinclude,butarenotlimitedto:

1) Itanticipatessubmittinganapplicationforacertificatetoconstruct,purchase or otherwise acquire a long-term supply-side or demand-sideresourcethatwasnotpreviouslyincludedaspartoftheapprovedIRP;

2) It anticipates the need to undertake a procurement process for ademand-sideorsupply-sideresourcethatwasnotpreviouslyincludedaspartofanapprovedIRP;

3) The data used in the formulation of its approved IRP requiressignificant modification that affects the choice of a resourcecontemplatedintheapprovedIRP;

4) ItexpectstomakeaMajorChangetotheActionPlanorCapitalPlansbeforethefilingofthenextIRPproposal.

B) Notwithstandingparagraph(A)ofthisSection,theCommissionshallhavetheauthority to require PREPA to file an update, amendment or review to theapprovedIRP,shoulditdeterminethatconditionswarrantsuchaction.

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C) Inseekinganupdate,amendmentorreviewtoanapprovedIRP,PREPAmustshowthattheproposedupdate,amendmentorreviewisthepreferredoption,takingintoaccounttherequirementssetforthinSection2.03(H)(2)(d)ofthisRegulation.

D) Inseekinganupdate,amendmentorreviewtoanapprovedIRP,PREPAshallpropose for Commission review, the components of Section 2.03 of thisRegulation that should be applied to the analysis of the proposed update,amendmentorreview.TheCommissionwillestablish,throughresolutionororder,thespecificcomponentsofSection2.03thatshallapply.

E) ThefilingofanIRPupdatedoesnotrelievePREPAfromitsobligationtofileanew,completeIRPeverythree(3)yearsfromthedateofapprovalofthemostrecentIRP.

Section2.06.-CertificationofCompliancewithSection6BofAct83The IRP shall include a certification regarding PREPA’s compliance with therequirementsofSection6B(h)(vi)ofAct83.

ARTICLEIII.PROCEDUREBEFORETHECOMMISSION

Section3.01.-IRPPrefilingProcess(Phase1)A) When filing a proposed IRP for Commission approval, the following

proceduresshallbefollowed:

1) NolessthantwoyearsaftertheapprovalofthemostrecentIRP,theCommissionmayscheduleoneormoretechnicalconferencestogatherinformationregardingthemethodologyandcontentscontemplatedbyPREPA for its new IRP proposal. In scheduling these technicalconferences, theCommissionmayrequirePREPAtoprovidespecificinformation regarding the development of the proposed IRP. TheCommission will set forth, in its Orders scheduling the technicalconferences,theprocessfortheorderlypresentationofinformation.

2) The purpose of these technical conferences is to provide anopportunity for the Commission to ensure PREPA’s IRP filing willreasonablycomplywiththerequirementssetforthinthisRegulationandtheanalysisconductedthereinwillbesufficientlyrobustsoastocomplywithpublicpolicygoalsandmeetCommissionexpectationsasto the quality of the analysis and information provided. Theseproceedings will also provide an opportunity for PREPA to seekclarifications from theCommissionwith regards to compliancewiththerequirementssetforthinthisRegulation.

B) During the Phase 1 period, the Commissionmay require PREPA to do thefollowing:

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1) Considercertainplausiblescenarios,includingbutnotlimitedtosuchmatters as changes in environmental regulations, the need fortransmission expansion, and, significant changes to fuel prices orcustomerdemand,and

2) ExcludeorexpandcertainconditionsofSection2.03.

C) TheCommissionmayrequirePREPAtoaddressanyspecialissuesitbelievesshouldbeincludedintheIRPthatarenotspecificallysetforthintheserules.

Section3.02FilingoftheIRP(Phase2)A) Withinthirty(30)daysfromthedateinwhichPREPAfilesitsproposedIRP,

theCommissionshallreviewtheIRPfilingtodeterminewhetheritcompliesinfullwiththerequirementsofthisRegulation.

1) If the Commission finds that the IRP filing complies with therequirementsofthisRegulation,theCommissionwillissuearesolutionindicating that the IRP iscompleteandthat theadjudicativeprocessmaybegin.AdeterminationofcompletenessbytheCommissionshallnotbeconstruedasarulingonthesubstanceoftheIRPfiling.

2) IftheCommissionfindsthattheIRPfilingisnotincompliancewiththisRegulation, the Commissionwill identify the specific areas inwhichPREPA’sfilingisdeficientandtheinformationrequiredtocorrectsuchdeficiency.TheCommissionshallgrantareasonabletermforPREPAtorefileitsproposedIRP.

3) Once PREPA refiles the proposed IRP with the corrections of theidentifieddeficiencies,theCommissionshallevaluatesuchrefilingtodetermine if it complies with this Regulation and shall issue anyappropriateorderorresolution.

4) IftheCommissiondeterminesthatthedeficienciesinPREPA’sfilingareof suchnature that correcting them through theprocessestablishedaboveisnotpractical,theCommissionmayrejectPREPA’sfilinginitsentirety.

Section3.03.-InterveningParties.A) AnypersonmayfileapetitiontointerveneintheIRPproceedingwithinthirty

(30) days after the Commission’s determination that the proposed IRP iscomplete.Nevertheless, theCommissionshall retain thediscretion tograntpetitionstointervenefiledaftertheexpirationofthe30-daytimeperiod.

B) The Commission will address petitions to intervene in accordance withSection5.05ofRegulation8543andSections3.5and3.6ofAct38-2017.

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Section3.04.-InitialTechnicalHearing.Within forty-five (45) days from the date PREPA’s IRP filing is determined to becomplete,theCommissionwillholdaninitialhearinginwhichPREPAwillhavetheopportunity to present its IRP filing and answer initial questions from theCommissionStaff, itsconsultantsandIntervenorsregardingthecontentoftheIRPfiling.Theinitialhearingshallbeopenforthepublictoattend.

Section3.05.-ProceduralCalendar.Within fifteen (15) days from the date PREPA’s IRP filing is determined to becomplete,theCommissionwillissueanOrderdetailingtheproceduralcalendarandanyrulesgoverningtheproceeding,including,butnotlimitedto,discovery,hearingsand,filingsandotherpleadings.

Section3.06.-PrefiledWrittenDirectTestimonyA)TheIRPfilingshallincludealistofeachPREPAwitnessandmustidentifythe

portions,chapters,appendix,workpapers,etc.ofPREPA'sfilingthatarebeingsupportedbythetestimonyofeachofthelistedwitnesses.

B)ConcurrentlywiththeIRPfiling,eachwitnesslistedpursuanttoparagraph(A)of this Section shall filewritten testimony stating his or her qualifications,educational background, work experience, subject matter that is beingaddressed, conclusions and recommendations, and the basis for suchconclusionsandrecommendations.

C)Eachwitness'prefiledwrittentestimonymustbeaccompaniedbyasigned,notarized statement that contains the following declaration: "Affiant,[(witnessname)],beingfirstdulysworn,statesthefollowing:ThepreparedPre-FiledDirectTestimonyandtheinformation,documentsandworkpapersattachedtheretoandtheportionsoftheIRPfilingIamsponsoringconstitutethe direct testimony of Affiant in the above-styled case. Affiant states thathe/shewouldgivetheanswerssetforthinthePre-FiledDirectTestimonyifasked the questions propounded therein at the time of the filing. Affiantfurtherstatesthat,tothebestofhis/herknowledge,his/herstatementsmadearetrueandcorrect."

D) Prefiled written testimony or accompanying work-papers must contain allanalyses, facts and calculationsnecessary for theCommission toperformacomprehensiveanalysisandassignittheappropriateprobativevalue.

E)TheIRPfilingandprefiledwrittentestimonyshallavoidgeneralizedorvaguestatementsthatwouldrequiretime-consumingdiscoverytounderstandthesupportingreasoningortogatherthesupportingfacts.

Section3.07.-PublishingofFinalIRPPlanonPREPA’sWebpagePREPAshallpublishonitswebsiteatrueandexactcopyoftheIRPapprovedbythe

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Commission.Thisplanmustbeaccessibletothepublic,freeofcharge,fromthedateinwhichtheCommissionnotifiesPREPAoftheapproval.

CHAPTERIII–ENERGYEFFICIENCY,DEMANDRESPONSEANDPERFORMANCE

ARTICLEIV.ENERGYEFFICIENCYANDDEMANDRESPONSE

Section4.01.-EnergyEfficiencyandDemandResponsePlanningandReporting.A) Bytheendofthefirstquarterofeachcalendaryear,PREPAshallfilewiththe

Commission any and all EvaluationMeasurement and Verification (EM&V)reports that address the energy efficiency anddemand response programsimplemented during the previous calendar year. PREPA shall file the firstEM&V report upon completion of the first full calendar year of energyefficiency and demand response programs. These EM&V reports shall beconductedbyindependentorganizationswithexpertiseinconductingenergyefficiency and demand response EM&V studies. PREPA shall spendapproximatelyfourtofivepercentofthetotalenergyefficiencyanddemandresponseprogrambudgetsonEM&Vreports.

B) Bytheendofthesecondquarterofeachcalendaryear,PREPAshallfilewiththeCommissionanEnergyEfficiencyandDemandResponseAnnualReport(EE&DR Annual Report), which shall include detailed information on thehistoricalperformanceofenergyefficiencyanddemandresponseprogramsforthemostrecentcompletecalendaryear.PREPAshallfilethefirstEE&DRAnnualReportuponcompletionofthefirstfullyearofenergyefficiencyanddemandresponseprograms.TheseAnnualReportsshallincludeataminimumthefollowinginformationseparatelyforeachenergyefficiencyanddemandresponse program. This information shall also be aggregated by customerclassandfortheportfolioofprogramsasawhole:

1) Costs,brokenoutbyadministrationcosts,marketinganddeliverycosts, program vendor costs, customer financial incentives,technicalor trainingsupportoffered tocustomersorother tradeallies,customerpayments,andothercosts;

2) Costs broken down by customer class: residential, commercial,industrial,andgovernmental.

3) Annual energy savings (measured inMWh) for each year of thePlanningPeriod;

4) Lifetimeenergysavings(measuredinMWh);5) Peak demand savings (measured in MW) for each year of the

PlanningPeriod;6) Annual cost savings, in dollars ($) for each year of the Planning

Period;

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7) Quantifiednon-energybenefits, indollars($)foreachyearofthePlanningPeriod;

8) Adiscussionofqualitativenon-energybenefits;9) Cumulativepresentvalueofprogramcostsandprogramsavings;10) Netsavings,andbenefitcostratio;11) Eligiblecustomers,programparticipants,andparticipationrate,for

thepastfive(5)yearsinwhichefficiencyprogramsweredeliveredandprojectedforthenextthree(3)years;and

12) A description of the program, describing the market sectoraddressed,thecustomersectoraddressed,thedeliverymechanism,financial incentives offered to customers, training and technicalassistanceofferedtocustomers,andotherrelevantinformation.

C) Bytheendofthethirdquarterofeachcalendaryear,PREPAshallfilewiththeCommissionitsEnergyEfficiencyandDemandResponsePlan(EE&DRPlan),which shall include its plan for all energy efficiency and demand responseprogramstobeimplementedoverthenextthree(3)years.PREPAshallfilethefirstEE&DRPlanwiththeCommissionwithin120daysofselectingathird-partyadministratortoimplementtheenergyefficiencyanddemandresponseprograms,asrequiredbySection4.01(D)ofthisRegulation.TheEE&DRPlansshallbeconsistentwiththeActionPlanofthemostrecentlyapprovedIRP.AnydeviationsfromthemostrecentlyapprovedActionPlanshallbejustifiedwithquantitativeanalysesofeconomicandotherimplicationsofthedeviation.TheEE&DRPlansshallbedesignedtoenablePREPAtoidentifyandimplementallcost-effective energy efficiency and demand response programs, consistentwiththemostrecentlyapprovedIRPoranysubsequentcomparableeconomicanalysis.TheEE&DRPlansshallincludeaproposalforthetypeandtheextentofEM&Vreportstoprepareforthenextthree(3)years.Theenergyefficiencyand demand response programs shall conform to best practice programdesignprinciples;ataminimum,programsshall:

1) Passacost-effectivenesstestasdesignatedbytheCommission;2) Address all relevant markets related to efficiency and demand

responsemeasures;3) Serveallcustomertypes;4) Addressallrelevantend-uses;5) Attempttoovercomeallrelevantmarketbarrierstoadoptionofenergy

efficiencyanddemandresponsemeasures;6) Promotecustomerequity,bothbyofferingprogramstoallcustomer

typesandbyachievinghighparticipationratesacrossallcustomers;7) Ensure that low-income and hard-to-reach customers aremarketed

andserved;

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8) Take full advantage of all relevant trade allies to maximizeopportunities to market, deliver and install efficiency and demandresponsemeasures;and

9) Avoidlostopportunities,whichoccurwhenefficiencymeasuresarenotinstalledwhenitismostcost-effectivetodoso.

D) Initially, after the effectivedateof thisRegulation, and thereafter, after thedeterminationbytheCommissionontheIRP,theCommissionshallestablishthroughanOrderthemethodtoselecta third-partyadministratorthatwillplan and implement the energy efficiency anddemand responseprograms.Thethird-partyadministratorshallbecontractedbytheCommissionandshallsubmittoittheirreportsthereon.Thecostsassociatedwiththethird-partyadministrator,includingitscompensation,asapprovedbytheCommission,aswellasthecostsrelatedtothe implementationoftheenergyefficiencyanddemandresponseprograms,willbecoveredthroughtheelectricratestobeapprovedbytheCommission.

E) RegardlessofwhethertheenergyefficiencyanddemandresponseprogramsareimplementedbyPREPAorathird-partyadministrator,thekeyprogramsshallbedeliveredthroughthird-partycontractors.Thesecontractorsshallbechosen through a competitive bidding process run by the programadministrator,orPREPA,ifPREPAisadministeringtheenergyefficiencyanddemand response programs, on a periodic basis and approved by theCommission.

ARTICLEV.PERFORMANCEMETRICSTARGETSANDINDUCEMENTS

Section5.01.-PerformanceMetrics,Targets,andInducements.Section 6B (h)(iv) of Act 83 requires PREPA’s IRP to include typical performancemeasures of the electric power industry, and directs PREPA to measure itsperformanceincomplyingwiththemandatesofAct57-2014intermsofeffectivenessandefficiencyinprovidingelectricservicebyconductingacomparativeanalysisofits performance in relation to the performance of similarly sized and comparableutilities.

TheIRPshallincludeageneralnarrativeofthekeyperformancemetricsrequiredbytheCommissionandalso identified inSection6B(h)(iv)ofAct83, itsperformancewithregardstosuchmetricsandacomparisonofitsresultswiththoseachievedbysimilarly sized and comparable utilities. Furthermore, as described in Section2.03(J)(1)(a)(v),PREPA’sActionPlanshall includeadescriptionof theanticipatedimpactofeachresourceactiononanyapplicableperformancemetrics.

AfterthedeterminationbytheCommissiononthefirstIRP,theCommissionopenedadockettoestablishperformanceinducementmechanisms(PIMs)thatwillapplytoPREPA.ThePIMsshallincludeperformancemetrics,performancetargetsandspecificperformance inducements, in order to monitor and guide key areas related to

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PREPA’sperformance.TheCommissionwill issueaResolutionandOrderaftertheconclusionoftheproceedingandwillreviewperiodicallytheperformancemetricstodeterminewhetheranyupdates,modificationsorrefinementsarewarranted.