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HomeMy WebLinkAbout20250515Comments.pdf RECEIVED May 15, 2025 IDAHO PUBLIC Kevin Dickey UTILITIES COMMISSION 2953 Honey Lane PO Box 337 Emmett, ID 83617 208.841.5354 Bellefourche0l@gmail.com BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF IDAHO POWER ) COMPANY'S APPLICATION FOR ITS ) CASE NO. IPC-E-25-15 FIRST ANNUAL UPDATE TO THE EXPORT ) CREDIT RATE FOR NON-LEGACY ON- ) KEVIN DICKEY'S INITIAL COMMENTS SITE GENERATION CUSTOMERS FROM ) June 1, 2025 THROUGH MAY 31, 2026 IN ) COMPLIANCE WITH ORDER NO. 36048 ) Kevin Dickey, pro se, hereby submits his initial comments with respect to Idaho Power's ECR Update. 1 KEVIN DICKEY'S INITIAL COMMENTS IPC-E-25-15 The Mission Statement of the Idaho Public Utilities Commission begins "The Commission serves the citizens and utilities of Idaho by ensuring that the rates and policies established for utility services are fair,just, reasonable..." 1 With respect to allowing Idaho Power to unilaterally determine the Export Credit Rate (ECR) that is used to compensate Idaho's small capacity solar generators, the Commission's policy is neither fair,just, nor reasonable. The Commission stated in Order 35284: "The Commission finds that the Company is best positioned to access and study the extensive data and issues specific to the Idaho Power system at a reasonable cost. We understand the argument that third-party evaluators have a different perspective and the results may be believed to be more credible by some customers. However, third-party studies may be more generic and not fully reflect the environmental requirements in Idaho or the peculiarities and/or particulars of the Company's system. Studies conducted in other states provide insight but are not determinative of what is most reasonable for Idaho Power's customers."2 By effectively stating that no one but Idaho Power can determine the ECR, the Commission put the fox in charge of the henhouse. The ECR determines the price that Idaho Power pays for the solar energy produced by Idaho's small capacity generators. It is in Idaho Power's interest to keep costs low, so naturally they have a preference for minimizing the ECR. But their conflict of interest goes beyond minimizing costs. Through its Clean Energy Your Way—Construction offering, Idaho Power stated in a March 22, 2022 news release that in partnership with Micron, they were "enabling large customers to partner with Idaho Power on new, dedicated renewable energy resources to meet business sustainability goals, while simultaneously adding new renewable resources to Idaho Power's system"3 (emphasis mine). This program established by Idaho Power provides renewable energy to the grid which is in competition with Idaho's small capacity generators. As the recent blackouts in Spain have shown', all electrical systems have a limit on how much renewable energy, as a percentage of total energy, a system can safely handle. A low ECR disincentivizes additional small generator capacity leaving more room for Idaho Power and its large company partners to monopolize the renewable energy on the grid. 1 IPUC 2024 to 2027 Strategic Plan. Page 2. z https://If-puc.idaho.gov/WebLink/DocView.aspx?dbid=0&id=71011. Page 11. 3 https://www.idahopower.com/news/idaho-power-and-micron-technology-partner-to-advance-solar-powered-renewable- energy-in-idaho/ n https://theconversation.com/spain-portugal-blackouts-what-actually-happened-and-what-can-iberia-and-europe-learn-from- it-255666 2 KEVIN DICKEY'S INITIAL COMMENTS IPC-E-25-15 As the Chart 1 points out, the only thing that is decreasing under Idaho Power's stewardship is the ECR. In the last four years, consumer residential rates are up 18%.5 This increase, while large, is less than half the increase in compensation for Idaho Power's top four executives.' From an average of under $10 million dollars per annum ($2.4 million/executive) in 2021-2022, Idaho Power's top four executives' compensation increased 39%to an average of$13.5 million dollars per annum ($3.4 million/executive) in 2022-2023. While Idaho Power was increasing residential rates and significantly increasing their executive compensation, the compensation Idaho Power plans on paying its small capacity generators will plummet nearly 80% if their proposed ECR Update is allowed to move forward.' Idacorp (Idaho Power) Change in Residential Average Power Bill, 1.50 Big4 EO Pay & Idaho Power Determined ECR Idaho Power Big4 EO total annual $14.37 1.40 compensation in millions of dollars 1.30 $12.72 1.20 1.10 $10.68 1.00 0.90 $8.74 p 0.80 N 0 0.70 0.60 0.50 $Ratio to 2021-Avg Bill,$/mn 0.40 Ratio to 2021-Idaho Power Big4 EO Compensation 0.30 -*-Ratio to 2021-ECR Compensation 0.20 0.10 0.00 2021 2022 2023 2024 2025 Chart 1 Calendar Year Kevin Dickey's Comments in IPC-E-25-15 5 https://findenergy.com/providers/idaho-power/. 2025 estimate applies the PUC approved pricing increase. 6 Idacorp DEF14A filed 2001-03-30 and Idacorp DEF14A filed 2025-04-01. https://Puc.idaho.gov/Fileroom/PublicFiles/Press/Workshop/Idaho%20Power%2OWorkshop%2OFinal%2007.pdf. Page 22. 3 KEVIN DICKEY'S INITIAL COMMENTS IPC-E-25-15 Table 1 summarizes this discrepancy. Changes in the Last Four Years Average Idaho Power Small Capacity Residential Big4 Execs Generators Power Bill Compensation Compensation 18% it 39% -79% It Table 1 Kevin Dickey's Comments in IPC-E-25-15 While correlation does not necessarily imply causation, the $4 million/year in increase compensation to just four Idaho Power executives eats up approximately 50% of the savings Idaho Power would realize from their 79% decrease in the ECR rates in comparison to the Legacy 1:1 payment structure. In Order 35631, the Commission stated: "We want to make clear that our decision in this case is whether to acknowledge that the Study complied with our previous directives. Our decision is not a determination that a specific method or value within the Study is superior to another" $(emphasis mine). So, after admitting that the Commission did not find Idaho Power's ECR establishing VODER study'to be superior, the Commission still allowed a conflicted party to determine the method for obtaining the ECR even when there was an alternate study presented that showed, even using Idaho Power's determined VODER components, that Idaho Power was underestimating the ECR by nearly four times, Table 2.11 s https://If-puc.idaho.gov/WebLink/DocView.aspx?dbid=0&id=71906. Page 28. s https://puc.idaho.gov/Fileroom/PublicFiles/ELEC/IPC/IPCE2222/CaseFiles/20221026 Voder%20Study Clean.pdf 10 https://puc.idaho.gov/Fileroom/PublicFiles/ELEC/IPC/IPCE2222/Intervenor/ICL/20220921Comments.pdf Independent Review of the Idaho Power Company's Value of Distributed Energy Resources Study. Beach & McGuire. September 20, 2021. Page 9. 4 KEVIN DICKEY'S INITIAL COMMENTS IPC-E-25-15 Critique of the IPC VODER Study Crossborder Energy September 20. 2022 Table ECR ReColllll end ation.S (S per lUfflo Component IPC VODER Study Crossborder Avoided Energy 28.24 47.30 Avoided Generation Capacity 10.60 35.00 T&D Deferral 0.26 49.80 Avoided Line Losses 1.64 9.50 Integration Costs (2.93) (0.64) Total 37.81 140.96 Table 2 Kevin Dickey's Comments in IPC-E-25-15 In summary, if there was an organization called the Solar Installers of Idaho that had monopoly control on all solar panel installations in Idaho and they were given the ability to come up with an ECR that "complied with the (Commission's) previous directives", the ECR would be a very large number. Similarly, when the Commission gave the monopoly utility the ability to come up with an ECR that "complied with the (Commission's) previous directives" it should be no surprise that they came up with an ECR that was minimized. A perfect example of this is that Idaho Power even managed to use negative rates in their calculation of the 2024 Energy Value as shown in Table 3.1112 "https://Puc.idaho.gov/Fileroom/PublicFiles/Press/Workshop/Idaho%2OPower/`20workshop/`2OFinal%2007.pdf. Page 20. 12 Unfortunately, Idaho Power abrogated it's responsibilities and refused to answer KEVIN DICKEY'S SECOND PRODUCTION REQUEST TO IDAHO POWER COMPANY. The eight part question was specifically asked to determine the relevance of Idaho Power's choice of the pricing inputs(including the negative pricing) in Table 3. By refusing to answer the simple request, Idaho Power is admitting that the pricing used in the Energy Value portion of the VOIDER calculation is not realistic, nor relevant, but clearly the pricing does help to minimize the calculated ECR,which seems to be the goal. 5 KEVIN DICKEY'S INITIAL COMMENTS IPC-E-25-15 . • • • • • • Table l Nevin Dickey's Comments m tOC•f QS•15 Month Value Energy SAI%%,h Month Value Energy S/MWh 1 S 102,879 3.144 S 32.72 1 S 245.051 3913 S 62.63 2 $ 167.545 6362 S 26.33 2 S 136.706 7,016 S 19.49 S 233,461 8973 $ 26.02 3 S 141.922 12,802 S 11.09 4 S 436204 9977 $ 43.72 5 $ 445,602 11.077 S 40.23 5 S (12,752) 20240 $ (0.63) 6 $ 320,466 10,728 $ 29.87 7 $ 574,323 8,850 S 64.90 7 S 416.881 13,686 S 30.46 8 S 567.746 7,962 S 71.30 8 S 361,978 14,319 S 25.28 9 S 592,657 8.543 S 69.37 9 $ 351.963 13988 S 25.16 10 $ 516,061 9.157 $ 56.36 10 $ 434.150 12,701 $ 34.18 11 $ 332.075 4,809 $ 69.06 II $ 241.687 6,853 $ 35.27 12 S 517.249 2,494 $ 207.40 12 $ 150.126 4.311 S 34.82 S 4,806,268 92.076 $ 52.20 S 2,769,787 145.879 S 18.99 $2,055,192 36,084 S 56.960 $ 1.401.205 59.339 S 23.61 $2.751.076 55.993 S 56.13 $ 1.368.582 86.539 S 15.81 What would be a "fair,just, and reasonable" way to establish the ECR? Neither the fictional "Solar Installers of Idaho", nor nonfictional Idaho Power should be allowed to establish the ECR. They should both be conflicted out. An independent firm should be hired to help establish a "fair,just, and reasonable" solution. Allowing Idaho Power to set the ECR is an abrogation of the Idaho PUC's responsibilities. The first question that will be asked is "who will pay for it?" The answer is "whoever determined that the Legacy 1:1 system of renumeration needed to be replaced". By my calculation, the initial reduced ECR in 2024 saved Idaho Power approximately$4 million which they turned around and paid out to four executives. 14,000 small capacity solar generators were shorted so that four executives could take home an extra $1 million each on average. There is nothing "fair,just, or reasonable" about that. If Idaho Power believes that the Legacy 1:1 payment system is unfair, then they should prove it by paying for an unbiased independent evaluation. 6 KEVIN DICKEY'S INITIAL COMMENTS IPC-E-25-15 Per Order 36558 1 hereby request that a hearing be held with the purpose of finding an unbiased independent evaluator that can help determine what is "fair,just, and reasonable" in determining an ECR. Such a step is unlikely to be fulfilled through written comments as witnesses will need to be called and consultants evaluated. DATED this 151" day of May, 2025. R Kevin Dickey V 7 KEVIN DICKEY'S INITIAL COMMENTS IPC-E-25-15 CERTIFICATION OF SERVICE I hereby certify that on May 15, 2025, a true and correct copy of the within and foregoing KEVIN DICKEY'S INITIAL COMMENTS was served in the manner shown to: Electronic Mail (see Order 35375) Idaho Power Company Megan Goicoecha Allen Connie Achenbrenner Donovan E. Walker Mary Alice Taylor Idaho Power Company Idaho Power Company mgoicoeacheaallen@idahopower.com (filing) caschenbrenner@idahopower.com mgoicoecheaallen@idahopower.com (name) mtaylor@idahopower.com dwalker@idahopower.com dockets@idahopower.com Commission Staff Clean Energy Opportunities for Idaho Monica Barrios-Sanchez Kelsey Jae Commission Secretary Kelsey@kelseyiae.com secretary@puc.idaho.gov Erika K. Melanson Erika.melanson@puc.idaho.gov Sierra Club and Vote Solar City of Boise Gregory M. Adams Jessica Harrison Rose Monahan Katie O'Neil greg@richardsonadams.com BoiseCityAttorney@cityofboise.org rose.monahan@sierraclub.or iharrison@cityofboise.or koneil@citvofboise.org Individual Intervenor Individual Intervenor Martha S. Bibb Scott Pinizzotto marthasbibb@gmail.com s.pinizzotto@gmail.com s/Kevin Dickey 8 KEVIN DICKEY'S INITIAL COMMENTS IPC-E-25-15