PURPOSE: This rule sets minimum standards for the maintenance and updating of historical data, the level of detail required in analyzing loads, and the purposes to be accomplished by load analysis and by load forecast models. The load analysis discussed in this rule is intended to support both demand-side management efforts of 4 CSR 240-22.050 and the load forecast models of this rule. This rule also sets the minimum standards for the documentation of the inputs, components, and methods used to derive the load forecasts.

1. (1) Selecting Load Analysis Methods. The utility may choose multiple methods of load analysis if it deems doing so is necessary to achieve all of the purposes of load analysis and if the methods are consistent with, and calibrated to, one another. The utility shall describe and document its intended purposes for load analysis methods, why the selected load analysis methods best fulfill those purposes, and how the load analysis methods are consistent with one another and with the enduse consumption data used in the demandside analysis as described in 4 CSR 240- 22.050. At a minimum, the load analysis methods shall be selected to achieve the following purposes:

   1. (A) To identify end-use measures that may be potential demand-side resources, generally, those end-use measures with an opportunity for energy and/or demand savings;
   2. (B) To derive a data set of historical values from load research data that can be used as dependent and independent variables in the load forecasts;
   3. (C) To facilitate the analysis of impacts of implemented demand-side programs and demand-side rates on the load forecasts and to augment measurement of the effectiveness of demand-side resources necessary for 4 CSR 240-22.070(8) in the evaluation of the performance of the demand-side programs or rates after they are implemented; and
   4. (D) To preserve, in a historical database, the results of the load analysis used to perform the demand-side analysis as described in 4 CSR 240-22.050, and the load forecasting described in 4 CSR 240-22.030.

2. (2) Historical Database for Load Analysis. The utility shall develop and maintain data on the actual historical patterns of energy usage within its service territory. The following information shall be maintained and updated on an ongoing basis and described and documented in the triennial compliance filings:

   1. (A) Customer Class Detail. At a minimum, the historical database shall be maintained for each of the major classes;

   2. (B) Load Data Detail. The historical load database shall contain the following data:

      1. 1. For each jurisdiction for which it pre-

pares customer and energy and demand forecasts, for each major class, to the actual monthly energy usage and number of customers and weather-normalized monthly energy usage;

1. 2. For each jurisdiction and major class,

estimated actual and weather-normalized demands at the time of monthly system peaks; and

1. 3. For the system, actual and weather-

normalized hourly net system load;

1. (C) Load Component Detail. The historical database for major class monthly energy usage and demands at time of monthly peaks shall be disaggregated into a number-of-units component and a use-per-unit component, for both actual and weather-normalized loads.

   1. 1. The number-of-units component shall

be the number of customers, square feet, devices, or other units as appropriate to the customer class and the load analysis method selected by the utility. The utility shall select the units component with the intent of providing meaningful load analysis for demandside analysis and maintaining the integrity of the database over time.

1. 2. The utility shall develop and imple-

ment a procedure to routinely measure and regularly update estimates of the effect of departures from normal weather on class and system electric loads. The estimates of the effect of weather on historical major class and system loads shall incorporate the nonlinear response of loads to daily weather and seasonal variations in loads.

1. 3. The utility shall describe and docu-

ment the methods used to develop weather measures and the methods used to estimate the effect of weather on electric loads. If statistical models are used, the documentation shall include at least: the functional form of the models; the estimation techniques employed; and the relevant statistical results of the models, including parameter estimates and tests of statistical significance. The data used to estimate the models, including the development of model input data from basic data, shall be included in the workpapers supplied at the time the compliance report is filed;

1. (D) For each major class specified pursuant to subsection (2)(A), the utility shall provide, on a seasonal and annual basis for each year of the historical period—

   1. 1. Its assessment of the historical end-

use drivers of energy usage and peak demand, including trends in numbers of units and energy consumption per unit;

1. 2. Its assessment of the weather sensi-

tivity of energy and peak demand; and

1. 3. Plots illustrating trends materially

affecting electricity consumption over the historical period;

1. (E) The utility shall describe and document any adjustments that it made to historical data prior to using it in its development or interpretation of the forecasting models; and
2. (F) Length of Historical Database. The utility shall develop and retain the historical database over the historical period.

1. (3) Analysis of Number of Units. For each major class, the utility shall describe and document its analysis of the historical relationship between the number of units and the economic and/or demographic factors (explanatory variables) that affect the number of units for that major class. The analysis may incorporate or substitute the results of secondary analyses, with the proviso that the utility analyze and verify the applicability of those results to its service territory. If the utility develops primary analyses, or to the extent they are available from secondary analyses, these relationships shall be specified as statistical or mathematical models that relate the number of units to the explanatory variables.

   1. (A) Choice of Explanatory Variables. The utility shall identify appropriate explanatory variables as predictors of the number of units for each major class. The critical assumptions that influence the explanatory variables shall also be identified and documented.
   2. (B) Documentation of statistical models shall include the elements specified in subsection (2)(C) of this rule. Documentation of mathematical models shall include a specification of the functional form of the equations if the utility develops primary analyses, or to the extent they are available if the utility incorporates secondary analyses.

2. (4) Analysis of Use Per Unit. For each major class, the utility shall describe and document its analysis of historical use per unit by end use.

   1. (A) End-Use Load Detail. For each major class, use per unit shall be disaggregated, where information permits, by end-uses that contribute significantly to energy use or peak demand.

      1. 1. The utility shall consider developing

information on at least the following end-use loads:

1. A. For the residential sector: lighting,

space cooling, space heating, ventilation, water heating, refrigerators, freezers, cooking, clothes washers, clothes dryers, television, personal computers, furnace fans, plug loads, and other uses;

1. B. For the commercial sector: space

heat, space cooling, ventilation, water heat, refrigeration, lighting, office equipment, cooking equipment, and other uses; and

1. C. For the industrial sector: machine

drives, space heat, space cooling, ventilation, lighting, process heating, and other uses.

1. 2. The utility may modify the end-use

loads specified in paragraph (4)(A)1.

1. A. The utility may remove or consol-

idate the specified end-use loads if it determines that a specified end-use load is not contributing, and is not likely to contribute in the future, significantly to energy use or peak demand in a major class.

1. B. The utility shall add to the speci-

fied end-use loads if it determines that an end-use load currently not specified is likely to contribute significantly to energy use or peak demand in a major class.

1. C. The utility shall provide documen-

tation of its decision to modify the specified end-use loads for which information is developed, as well as an assessment of how the modifications can be made to best preserve the continuity and integrity of the end-use load database.

1. 3. For each major class and each end-

use load, including those listed in paragraph (4)(A)1., if information is not available, the utility shall provide a schedule for acquiring this end-use load information or demonstrate that either the expected costs of acquisition were found to outweigh the expected benefits over the planning horizon or that gathering the end-use load information has proven to be infeasible.

1. 4. The utility shall determine the effect

that weather has on the total load of each major class by disaggregating the load into its cooling, heating, and non-weather-sensitive components. If the cooling or heating components are a significant portion of the total load of the major class, then the cooling or heating components of that load shall be designated as end uses for that major class.

1. (B) The database and historical analysis required for each end use shall be developed from a utility-specific survey or other primary data. The database and analysis may incorporate or substitute the results of secondary data, with the proviso that the utility analyze and verify the applicability of those results to its service territory. The database and historical analysis required for each end use shall include at least the following:

   1. 1. Measures of the stock of energy-using

capital goods. For each major class and enduse load identified in subsection (4)(A), the 20 CSR 4240-22

utility shall implement a procedure to develop and maintain adequate data on the energyrelated characteristics of the building, appliance, and equipment stock including saturation levels, efficiency levels, and sizes, where applicable. The utility shall update the data before each triennial compliance filing; and

1. 2. Estimates of end-use energy and

demand. For the end-use loads identified in subsection (4)(A), the utility shall estimate monthly energies and demands at the time of monthly system peaks and shall calibrate these energies and demands to equal the weather-normalized monthly energies and demands at the time of monthly peaks for each major class for the most recently available data.

1. (5) Selecting Load Forecasting Models. The utility shall select load forecast models and develop the historical database needed to support the selected models. The selected load forecast models will include a method of enduse load analysis for at least the residential and small commercial classes, unless the utility demonstrates that end-use load methods are not practicable and provides documentation that other methods are at a minimum comparable to end-use methods. The utility may choose multiple models and methods if it deems doing so is necessary to achieve all of the purposes of load forecasting and if the methods and models are consistent with, and calibrated to, one another. The utility shall describe and document its intended purposes for load forecast models, why the selected load forecast models best fulfill those purposes, and how the load forecast models are consistent with one another and with the enduse usage data used in the demand-side analysis as described in 4 CSR 240-22.050. As a minimum, the load forecast models shall be selected to achieve the following purposes:

   1. (A) Assessment of consumption drivers and customer usage patterns—to better understand customer preferences and their impacts on future energy and demand requirements, including weather sensitivity of load;
   2. (B) Long-term load forecasts—to serve as a basis for planning capacity and energy service needs. This can be served by any forecasting method or methods that produce reasonable projections (based on comparing model projections of loads to actual loads) of future demand and energy loads;
   3. (C) Policy analysis—to assess the impact of legal mandates, economic policies, and rate designs on future energy and demand requirements. The utility may use any load forecasting method or methods that it demonstrates AND INSURANCE

can adequately analyze the impacts of legal mandates, economic policies, and rate designs.

1. (6) Load Forecasting Model Specifications.

   1. (A) For each load forecasting model selected by the utility pursuant to section 4 CSR 240-22.030(5), the utility shall describe and document its—

      1. 1. Determination of appropriate inde-

pendent variables as predictors of energy and peak demand for each major class. The critical assumptions that influence the independent variables shall also be identified.

1. A. The utility shall assess the appli-

cability of the historical explanatory variables pursuant to subsection (3)(A) to its selected forecast model.

1. B. To the extent that the independent

variables selected by the utility differ from the historical explanatory variables, the utility shall describe and document those differences;

1. 2. Development of any mathematical or

statistical equations comprising the load forecast models, including a specification of the functional form of the equations; and

1. 3. Assessment of the applicability of any

load forecast models or portions of models that were utilized by the utility but developed by others, including a specification of the functional forms of any equations or models, to the extent they are available.

1. (B) If the utility selects load forecast models that include end-use load methods, the utility shall describe and document any deviations in the independent variables or functional forms of the equations from those derived from load analysis in sections (3) and (4).

2. (C) Historical Database for Load Forecasting. In addition to the load analysis database, the utility shall develop and maintain a database consistent with and as needed to run each forecast model utilized by the utility. The utility shall describe and document its load forecasting historical database in the triennial compliance filings. As a minimum, the utility shall—

   1. 1. Develop and maintain a data set of

historical values for each independent variable of each forecast model. The historical values for each independent variable shall be collected for a period of ten (10) years, or such period deemed sufficient to allow the independent variables to be accurately forecasted over the entire planning horizon;

1. 2. Explain any adjustments that it made

to historical data prior to using it in its development of the forecasting models;

1. 3. Archive previous projections of all

independent variables used in the energy usage and peak load forecasts made in at least the past ten (10) years and provide a comparison of the historical projected values in prior plan filings to actual historical values and to projected values in the current compliance filing; and

1. 4. Archive all previous forecasts of ener-

gy and peak demand, including the final data sets used to develop the forecasts, made in at least the past ten (10) years. Provide a comparison of the historical final forecasts to the actual historical energy and peak demands and to the current forecasts in the current triennial compliance filing.

1. (7) Base-Case Load Forecast. The utility’s base-case load forecast shall be based on projections of the independent variables that utility decision-makers believe to be most likely. All components of the base-case load forecast shall assume normal weather conditions. The load impacts of implemented demand-side programs and rates shall be incorporated in the base-case load forecast, but the load impacts of proposed demand-side programs and rates shall not be included in the basecase forecast.

   1. (A) Major Class and Total Load Detail. The utility shall produce forecasts of monthly energy usage and demands at the time of the summer and winter system peaks by major class for each year of the planning horizon, and shall describe and document those forecasts in its triennial compliance filings. Where applicable, these major class forecasts shall be separated into their jurisdictional components.

      1. 1. The utility shall describe and docu-

ment how the base-case forecasts of energy usage and demands have taken into account the effects of real prices of electricity, real prices of competitive energy sources, real incomes, and any other relevant economic and demographic factors. If the methodology does not incorporate economic and demographic factors, the utility shall explain how it accounted for the effects of these factors.

1. 2. The utility shall describe and docu-

ment how the forecasts of energy usage and demands have taken into account the effects of legal mandates affecting the consumption of electricity.

1. 3. The utility shall describe and docu-

ment how the forecasts of energy usage and demands are consistent with trends in historical consumption patterns, end uses, and enduse efficiency in the utility’s service area as identified pursuant to sections 4 CSR 240- 22.030(2), (3), and (4).

1. 4. For at least the base year of the fore-

cast, the utility shall describe and document its estimates of the monthly cooling, heating, and non-weather-sensitive components of the weather-normalized major class loads.

1. 5. Where judgment has been applied to

modify the results of its energy and peak forecast models, the utility shall describe and document the factors which caused the modification and how those factors were quantified.

1. 6. For each major class specified pur-

suant to subsection (2)(A), the utility shall provide plots of class monthly energy and coincident peak demand at the time of summer and winter system peaks. The plots shall cover the historical database period and the forecast period of at least twenty (20) years. The plots of coincident peak demands for the historical period shall include both actual and weather-normalized peak demands at the time of summer and winter system peaks. The plots of coincident peak demand for the forecast period shall show the class coincident demands for the base-case forecast at the time of summer and winter system peaks.

1. 7. The utility shall provide plots of the

net system load profiles for the summer peak day and the winter peak day showing the contribution of each major class. The plots shall be provided in the triennial filing for the base year of the forecast and for the fifth, tenth, and twentieth years of the forecast. Plots for all years shall be included in the workpapers supplied at the time of the triennial filing.

1. (B) Forecasts of Independent Variables. The forecasts of independent variables shall be specified, described, and documented.

   1. 1. Documentation of mathematical mod-

els developed by the utility to forecast the independent variables shall include the reasons the utility selected the models as well as specification of the functional form of the equations.

1. 2. If the utility adopted forecasts of

independent variables developed by another entity, documentation shall include the reasons the utility selected those forecasts, an analysis showing that the forecasts are applicable to the utility’s service territory, and, if available, a specification of the functional form of the equations used to forecast the independent variables.

1. 3. These forecasts of independent vari-

ables shall be compared to historical trends in the variables, and significant differences between the forecasts and long-term and recent trends shall be analyzed and explained.

1. 4. Where judgment has been applied to

modify the results of a statistical or mathematical model, the utility shall specify the factors which caused the modification and shall explain how those factors were quantified.

1. (C) Net System Load Forecast. The utility shall produce a forecast of net system load profiles for each year of the planning horizon. The net system load forecast shall be consistent with the utility’s forecasts of monthly energy and peak demands at time of summer and winter system peaks for each major class.

1. (8) Load Forecast Sensitivity Analysis. The utility shall describe and document its analysis of the sensitivity of the dependent variables of the base-case forecast for each major class to variations in the independent variables identified in subsection 4 CSR 240- 22.030(6)(A).

   1. (A) The utility shall produce at least two

2. (2) additional normal weather load forecasts (a high-growth case and a low-growth case) that bracket the base-case load forecast. Subjective probabilities shall be assigned to each of the load forecast cases. These forecasts and associated subjective probabilities shall be used as inputs to the risk analysis required by 4 CSR 240-22.060.

   1. (B) The utility shall estimate the sensitivity of system peak load forecasts to extreme weather conditions. This information shall be considered by utility decision-makers to assess the ability of alternative resource plans to serve load under extreme weather conditions when selecting the preferred resource plan pursuant to 4 CSR 240-22.070(1).

   2. (C) The utility shall provide plots of energy usage and peak demand covering the historical database period and the forecast period of at least twenty (20) years.

      1. 1. The energy plots shall include the

summer, non-summer, and total energy usage for each calendar year. The peak demand plots shall include the summer and winter peak demands.

1. 2. The historical period shall include

both actual and weather-normalized values. The forecast period shall include the basecase, low-case, and high-case forecasts.

AUTHORITY: sections 386.040, 386.250, 386.610, and 393.140, RSMo 2000.* This rule originally filed as 4 CSR 240-22.030. Original rule filed June 12, 1992, effective May 6, 1993. Amended: Filed Oct. 25, 2010, effective June 30, 2011. Moved to 20 CSR 4240-22.030, effective Aug. 28, 2019. *Original authority: 386.040, RSMo 1939; 386.250, RSMo 1939, amended 1963, 1967, 1977, 1980, 1987, 1988, 1991, 1993, 1995, 1996; 386.610, RSMo 1939; and 393.140, RSMo 1939, amended 1949, 1967.