Integrated Distribution Planning

Integrated Distribution Planning, (also known as IDP or a distribution system plan), is the process where a utility, the Commission, and stakeholders examine a utility’s current and planned projects and spending for its distribution system. The distribution system connects homes and businesses to the energy supplied by the utility. More recently, the distribution system lets those same homes and businesses send energy back to the utility through things like solar panels or battery storage systems. A well-planned distribution system also allows homes and businesses to use electric vehicle (EV) charging, smart water heaters, and thermostats to conserve energy and decrease stress on the entire system. 

Distribution planning objectives 

• Maintain and enhance the safety, security, reliability, and resilience of the electricity grid, at fair and reasonable costs, consistent with the state’s energy policies 

• Enable greater customer engagement, empowerment, and options for energy services 

• Move toward the creation of efficient, cost-effective, accessible grid platforms for new products, new services, and opportunities for adoption of new distributed technologies 

• Ensure optimized utilization of electricity grid assets and resources to minimize total system costs 

• Provide the Commission with the information necessary to understand utilities’ short-term and long-term distribution system plans, the costs and benefits of specific investments, and a comprehensive analysis of ratepayer cost and value 

IDP filing requirements 

The Commission required rate-regulated utilities (Xcel, Minnesota Power, Otter Tail Power, Dakota Electric Association) to begin filing IDPs in 2018 and 2019. In 2022 the Commission required utilities to combine existing Transportation Electrification Plans (TEP) with IDPs for investor-owned utilities. The Commission reviews and accepts IDPs.  

The Commission requires utilities to include the following information in IDPs: 

• Baseline data on: 

  • Distribution system  

  • Distribution budget and spending 

  • Distributed Energy Resources (DER) and electrification 

• Hosting capacity and interconnection for load and generation 

• Scenario planning for different DER and electrification adoption rates 

• The utility’s long-term distribution system investment plans 

• Non-Wires Alternatives (NWA) analysis 

• Transportation Electrification Plan (investor-owned utilities only—Xcel, Minnesota Power, Otter Tail Power) 

Review process 

Xcel Energy submits their IDP on November 1 of each odd numbered year, while Dakota Electric Association, Minnesota Power, and Otter Tail Power will submit their plans on November 1 of even numbered years starting in 2028. Prior to submitting their IDPs, utilities must hold at least one stakeholder meeting that covers DER forecasts and 5-year investment plans. Members of the public can participate in these meetings to learn more and provide feedback on utilities’ plans. 

After utilities file their IDPs, the Commission will issue a Notice of Comment period. This Notice provides another opportunity for any interested person or organization to weigh in on each utility’s plan. At an Agenda Meeting, the Commission may accept the IDP filing. Acceptance means the Commission agrees that the utility’s filing included all reporting requirements.