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Traditional electricity planning processes focus on finding the least-cost generating alternative. Given today’s dynamic and uncertain environment however it is impossible to correctly identify the 30-year "least cost " option, assuming such an option exists. Energy planning represents an investment-decision problem and investors commonly apply portfolio theory to manage risk and maximize portfolio performance under a variety of unpredictable economic outcomes. Energy planning techniques need to focus less on trying to identify the least-cost alternative and more on developing optimal generating portfolios that minimize cost for given levels of risk. This means abandoning traditional stand-alone kWh generating costs measures and instead evaluating conventional and renewable energy sources on the basis of their portfolio cost– – their cost contribution relative to their risk contribution to a portfolio of generating assets. At any given time, some alternatives in the portfolio may have high costs while others have lower costs, yet over time, the astute combination of alternatives serves to minimize overall generation cost relative to the risk. Energy security generally focuses on the threat of abrupt supply disruptions. This paper suggests that it has a more profound aspect: mitigating fossil price volatility. An extensive body of researc