20011207IPC to Staff 1-7.PDF

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BARTON L.KLINE ISB #1 526
Idaho Power Company
P.0.Box 70
Boise,Idaho 83707
Telephone:[phone]
FAX Telephone:[phone]
Attorney for Idaho Power Company
Street Address for Express Mail:
1221 West Idaho Street
Boise,Idaho 83702
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BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF IDAHO POWER COMPANY FOR
APPROVAL OF A NEW SCHEDULE 84--
NET METERING.
)CASE NO.IPC-E-01-39
)
)IDAHO POWER COMPANY’S
)RESPONSETO FIRST
)PRODUCTION REQUEST
OF COMMISSION STAFF
COMES NOW,Idaho Power Company (“Idaho Power”or “the Company”),
and in response to the First Production Request of the Commission Staff dated
November 30,2001,herewith submits the following information:
REQUEST NO.1:Please explain why the Company is proposing to
restrict Schedule 84 eligibility to Schedule 1 and Schedule 7 customers only.
Response to Request No.1:Idaho Power is proposing to continue
restricting net metering service to customers taking service under Schedule 1 and
Schedule 7 for several reasons.First,Schedule 1 and Schedule 7 are the only two
classes of customers that do not utilize meters that measure both demand and energy.
The current technology utilized in the electronic demand meters in place for customers
IDAHO POWER COMPANY’S RESPONSE TO FIRST
PRODUCTION REQUEST OF COMMISSION STAFF,Page 1
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who have a demand component as well as an energy component as part of their retail
rate does not allow the meter to “run backwards”.In order to capture any energy
delivered to Idaho Power’s system by a customer with an electronic retail meter that
registers demand and energy,the energy must be metered separately.This will require
either the installation of an additional meter and/or installation of an electronic meter
with the capability of measuring multiple inputs and outputs.Either of these installations
would require the customer to add and modify the existing customer meter base to
accommodate the new meter.The installation of additional metering to register the
delivery of energy to Idaho Power’s system negates the concept of net metering and
increases the cost of the service.Second,assuming that a meter that registers both
demand and energy could “run backwards”,the demand component of the customer’s
bill could potentially be reduced implying that the non-firm energy delivered to the
Company also provided a capacity component.Such a reduction in demand would be
inappropriate for non-firm energy.
The Response to this Request was prepared by Theresa Drake,Senior
Analyst,Idaho Power Company,in consultation with counsel,Barton L.Kline.
REQUEST NO.2:Would any kWh credits remaining or unused at the end
of a calendar year be granted to the Company without compensation to the customer-
generator,or could kWh credits be carried by the customer-generator indefinitely?
Under what conditions would Idaho Power provide cash compensation for customer
generation?
Response to Request No.2:Any remaining or unused kWh that the
customer generates but does not consume on a monthly basis will be financially
IDAHO POWER COMPANY’S RESPONSE TO FIRST
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compensated for through a credit on the customer’s electric bill.The credit will be equal
to the amount of the unused kWh that the customer generates times the customer’s
retail rate.Any credits applied to the customer’s account will remain on the account
until the customer’s charges from Idaho Power exceed the amount of the credit,or until
the customer requests payment in the form of a check.
The Response to this Request was prepared by Theresa Drake,Senior
Analyst,Idaho Power Company,in consultation with counsel,Barton L.Kline.
REQUEST NO.3:Please explain how kWh credits would be determined
under the current block rate design for Schedule 1 customers.For example,wifI kWh
credits be calculated at the average rate for the residential class or at one or more of
the three rates in the block rate design?Please clarify using examples as appropriate.
Response to Request No.3:A customer taking service under Schedule
84 will be offsetting usage as energy is generated during the billing cycle.At the end of
the billing cycle,if the customer generates more energy than consumed during the,
month,the customer’s account will be financially credited an amount equal to the
quantity of excess kWh delivered to Idaho Power multiplied by the customer’s current
retail rate.If the customer takes service under Schedule 1,the customer will be
monetarily credited at the kWh block rate,beginning at the first block rate.If the
customer is a Schedule 7 customer,the customer will be monetarily credited using the
current rate applicable to Schedule 7 customers.Please see Attachment 1 for
examples.
The Response to this Request was prepared by Theresa Drake,Senior
Analyst,Idaho Power Company,in consultation with counsel,Barton L.Kline.
IDAHO POWER COMPANY’S RESPONSE TO FIRST
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REQUEST NO.4:Please confirm whether existing Schedule 86
customers would be moved to the new Schedule 84.Will Schedule 86 customers be
required to execute a new Schedule 84 contract?
Response to Request No.4:The customers currently taking service
under Schedule 86—Option B will be moved to the new Schedule 84.Any customer
who begins taking service under Schedule 86—Option B from now until the
Commission’s ruling in this case and who qualifies for Schedule 84 will be transferred to
-Schedule 84 upon approval of Schedule 84.No contract is required for SchcduIe 84
customers.
The Response to this Request was prepared by Theresa Drake,Senior
Analyst,Idaho Power Company,in consultation with counsel,Barton L.Kline.
REQUEST NO.5:Because Idaho Power intends to use only one meter
for net metering customers,only the net difference between customer generation and
usage will be read each month.Consequently,for Schedule 1 customers,Staff
assumes that generation will be credited first against usage in the highest rate block
and last against usage in the lowest rate block.Is Staff’s assumption correct?If not,
please explain.
Response to Request No.5:The net usage of Schedule 84 customers
will be the only measurement for the customer’s monthly billing.As such,if the net
amount results in electric usage,the customer will be billed for the net usage at the
customer’s retail rate.For Schedule 1 customers,the net usage will be applied to the
block rate,beginning with the first block rate.If the metered net energy is a credit,
meaning more electricity was generated during the billing month than the customer
IDAHO POWER COMPANY’S RESPONSE TO FIRST
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consumed,the customer will be credited for the excess generation as described in
Response No.3.
The Response to this Request was prepared by Theresa Drake,Senior
Analyst,Idaho Power Company,in consultation with counsel,Barton L.Kline.
REQUEST NO.6:Does Idaho Power believe that by crediting customer
generation at full retail rates,net metering customers will be paid more than the actual
value of their generation?If so,what is the justification for paying full retail rates?
Response to Request No.6:_Depending upon..how the generation is
valued (i.e.embedded cost,avoided cost,or market),it is possible that the retail rate
may be higher.However,the Company believes,at this time,that the benefits gained in
reducing administration costs offset any potential difference.By employing retail rates,
the Company will eliminate a cumbersome,involved process required to calculate the
additional monthly charge currently defined under Schedule 86 —Option B.By
providing a simple mechanism to credit customer generation at retail rates,the
Company will reduce administrative costs and customers will have a methodology that
will be easier to understand and track their account.
The Response to this Request was prepared by Theresa Drake,Senior
Analyst,Idaho Power Company,in consultation with counsel,Barton L.Kline.
REQUEST NO.7:If a net metering customer fully offsets his monthly
usage with his own generation,will Idaho Power be able to fully recover its cost of
providing service with only revenue from the customer charge?
Response to Request No.7:No.
IDAHO POWER COMPANY’S RESPONSE TO FIRST
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The Response to this Request was prepared by Theresa Drake,Senior
Analyst,Idaho Power Company,in consultation with counsel,Barton L.Kline.
DATED at Boise,Idaho,this 7th day of December,2001.
BARTON L.KLINE
Afforney for Idaho Power Company
IDAHO POWER COMPANY’S RESPONSE TO FIRST
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A1TACHMENT 1
TO RESPONSE TO REQUEST NO.3
C)C)
Monthly Billing Example for Net Metering Customer*
Schedule 1
Customer Usage 2,200 kWh
Customer Generation 500 kWh
Net Customer Usage 1,700 kWh
Billing Schedule 84 Customer with Generation
Per kWh for the first 800 kWh 800 $0.061 652 $49.32
Per kWh for the next 1,200 kWh 900 $0.069701 $62.73
Per kWh for all kWh over 2,000 kWh 0 $0.083889 $0.00
1,700kWh $112.05
Schedule 1
Custorriet Usaçje 2,200 kWh
Customer Generation 2,500 kWh
Net Customer Generation 300 kWh Credit
Billing Schedule 84 Customer with Net Generation
Per kWh forthe first 800 kWh (300)$0.061652 ($18.50)
Per kWh for the next 1,200 kWh 0 $0.069701 $0.00
Per kWh for all kWh over 2,000 kWh 0 $0.083889 $0.00
(300)($18.50)
Schedule 7
Customer Usage 2,200 kWh
Customer Generation 500 kWh
Net Customer Usage 1,700 kWh
Billing Schedule 84 Customer with Generation
Per kWh for all kWh 1,700 $0.076890 $130.71
Schedule 7
Customer Usage 2,200 kWh
Customer Generation 2,500 kWh
Net Customer Generation 300 kWh Credit
Billing Schedule 84 Customer with Net Generation
Per kWh for all kWh (300)$0.076890 (S23.07)
*Rate calculation demonstration purposes only.Does not include all monthly customer charges.
0
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on the 7th day of December,2001,I served a
true and correct copy of the within and foregoing RESPONSE OF IDAHO POWER
COMPANY TO FIRST PRODUCTION REQUEST OF COMMISSION STAFF upon the
following named parties by the method indicated below,and addressed to the following:
Scott Woodbury X.Hand Delivered
Deputy Attorney General
____
U.S.Mail
Idaho Public Utilities Commission
____
Overnight Mail
472 W.Washington Street FAX
P.O.Box 83720
Boise,Idaho 83720-0074
(RirQZ
BARTON L.KLINE
CER11FICATE OF SERVICE