This paper reports the results of a local integrated resource planning (LIRP) study conducted for the Philippines. Based on the investment plans for serving loads at distribution feeders our key finding is that distributed resources (DR) are cost effective alternatives to supply capacity expansion for Cagayan Electric Power and Light Co. (CEPALCO), an investor-owned power distribution utility company operating in the Southern Philippines. The total cost savings for the selected feeder on which LIRP was performed are about 19 million Pesos (about half a million US dollars, 1998) over a 10-year period. (C) 2003 Elsevier Science Ltd. All rights reserved.