(a) (1) Every 3 years, the Office shall develop a Comprehensive Wholesale Energy Markets and Bulk Power System Risk Report.
(2) The purpose of the Risk Report is to:
(i) assess wholesale energy market financial, resource adequacy, and reliability risks associated with serving the State’s long–term energy needs; and
(ii) identify any necessary cost–effective solutions that ensure electric system reliability while meeting the State’s energy policy goals.
(3) The solutions identified in the Risk Report shall seek to:
(i) minimize the growth of the cost of electricity or lower the cost of electricity; and
(ii) minimize energy resource reliability risks.
(b) (1) The Risk Report shall include energy and demand forecasts that contain:
(i) reasonable, 20–year projections for electricity load and energy demands for:
1. transmission zones; and
2. electric service territories; and
(ii) projections for meeting State energy needs and clean energy goals and load forecasts in the PJM region, including:
1. low, average, and high projections of energy demand based on State policies and other reasonable assumptions that impact the provision of electricity in the State; and
2. other projections as necessary.
(2) In collecting the data for the forecasts under paragraph (1) of this subsection, the Office should, but is not required to, use:
(i) historical and projected information from electric companies;
(ii) load forecasts for the PJM region;
(iii) appropriate econometric data for the State; and
(iv) any other information the Office considers appropriate.
(c) (1) The Office shall examine different wholesale energy market and bulk power system scenarios to serve the forecasts under subsection (b) of this section.
(2) Each scenario examined shall:
(i) identify the resulting wholesale energy market and bulk power system financial and resource adequacy impacts of serving the forecasts with the existing electric system, known additions to the electric system, and electric system resource retirements; and
(ii) identify resource and demand–side management solutions that may resolve potential resource adequacy issues at the least cost.
(3) For a subset of scenarios that are primarily relied on within the Risk Report, the Office shall, in addition to the requirements of paragraph (2) of this subsection:
(i) identify the resulting wholesale market and bulk power system reliability impacts of serving the forecasts with the existing electric system, known additions to the electric system, and electric system resource retirements; and
(ii) identify resource and demand–side management solutions that may resolve potential reliability constraints at the least cost.
(4) Each scenario shall also examine:
(i) different energy resource mixes to meet the State’s energy needs, including the use of demand–side management;
(ii) different approaches for meeting the State’s clean energy goals;
(iii) improvements to existing energy resources as opposed to the deployment of new energy resources;
(iv) balancing the use of electricity imported from outside the State with the development of new energy resources in the State;
(v) financial and other risks associated with retiring energy generation resources;
(vi) directional assessing of cost risks to ratepayers; and
(vii) impacts to the wholesale energy market and bulk power system in meeting the State’s policy goals related to electricity.
(5) The scenarios required under paragraph (1) of this subsection shall include:
(i) at least one scenario that examines the achievement of the State’s clean energy goals;
(ii) at least one scenario that examines a least–cost approach to meeting the State’s projected energy needs; and
(iii) at least one scenario that assumes no changes in State energy and climate policies.
(d) (1) The Risk Report shall:
(i) be informed by the forecasts and scenarios required under this section;
(ii) provide information on the risks associated with serving the identified energy forecasts and achievement of the State’s clean energy goals;
(iii) discuss the potential financial impacts of the different scenarios examined under subsection (c) of this section on the State and ratepayers;
(iv) identify the financial, resource adequacy, and reliability risks of the wholesale energy markets and bulk power system on ratepayers; and
(v) specify the inputs and assumptions used in developing the Risk Report.
(2) (i) The Risk Report shall also include any recommendations of the Office regarding short– and long–term solutions to minimize wholesale energy market and bulk power system financial, resource adequacy, and reliability risks, including strategies to implement any recommendations.
(ii) The recommendations may include:
1. energy generation, transmission, or distribution resource deployment or demand–side management solutions;
2. program development, including:
A. altering or adding to existing programs; or
B. proposing new programs;
3. statutory or regulatory changes; and
4. recommendations to the General Assembly to implement short– and long–term recommendations identified in subparagraph (i) of this paragraph, including:
A. utilizing existing or creating new market structures;
B. utilizing existing or creating new State programs;
C. State financing options, including State procurement and multistate procurement;
D. electric company procurement or programs;
E. examining the mix of in–State generation versus relying on imports and demand–side management; and
F. any other recommendations that the Office considers appropriate.
(iii) If the Office determines that the identified risks are acceptable or that existing market designs, processes, or policies will adequately address the risks identified in the Risk Report, the Office may recommend that no actions be taken.
(iv) The Office shall support the recommendations by analyses that balance affordability, reliability, and greenhouse gas emissions reductions.