(1) Competitive resource solicitation is important to the overall least cost planning process in general and efficient resource acquisition in particular. Competitive solicitations provide utilities valuable information on available demand- and supply-side resources and the costs of those resources. Utilities should implement competitive solicitations as follows.

(a) Before acquiring any new resources, utilities should thoroughly test the market for cost effective resource alternatives.

(b) Need for new or alternative resources should not be assessed in terms of capacity deficit only, but also in terms of the avoidable societal costs of existing resources compared to alternative resources.

(c) Competitive resource solicitation and acquisition should not be seen as a substitute for least cost planning or any utility program encompassed by the least cost planning process.

(d) Resources identified through competitive solicitations should be evaluated with respect to the planning principles outlined in the guidelines.

(e) An all-source solicitation means requests for proposals are issued to the broadest practical group of potential demand- and supply-side resource providers, including, but not limited to: PURPA qualifying facilities (QFs) , nonutility independent power producers, publicly- and investor-owned utilities, power marketing agencies, international suppliers, and organizations capable of providing demand-side resources, including efficiency improvements to the utility's system. Further, an all-source solicitation should also place utility resources selected in the least cost planning process in competition with solicited resources.

(f) Bid proposals which involve demand-side resources should not be allowed to develop only the least expensive and most readily obtainable resource potential while stranding other measures which would be cost effective only if acquired in conjunction with those higher return resources.