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HomeMy WebLinkAbout20130628Public Hearing Volume IV.pdfAL Fii !: S3o o o BEFoRE THE rDAHo puBr,rc urrlrrrES coMMrssiorrfllll JUil 2-n IN THE MATTER OF IDAHO POWER COMPANYIS APPLICATION FOR AUTHORITY TO MODIEY ITS NET METER]NG SERVICE AND TO INCREASE THE GENERATION CAPACTTY LIMIT i-i,'. i:,".ll;,.ii :-CASE NO. rPc-E-12-21 PUBLIC HEAR]NG HEARING BEEORE COMMISSIONER MARSHA H. SMITH (Presiding) COMMISS]ONER PAUL KJELLANDER COMMISSIONER MACK A. REDFORD PLACE: Commission Hearing Room 472 West Washj-ngton Street Boj-se, Idaho DATE: ,-June 11, 2073 VOLUME IV - Pages 460 - 51 4 r- POST OFFICE BOX 578 BOtSE, TDAHO 8370.1 208-336-9208 HEIIRIGK COURT REPORTING ,9rr'r',i,,y tl" fina/wra,rrfy, ehao lfl6 1 2 ? 4 5 6 7 I 9 10 11 72 13 74 15 t6 l7 18 1,9 20 21, 22 23 24 25 HEDRICK COURT REPORTING P. O. BOX 578, BOTSE, rD APPEARANCES Eor the Staff:KARL KLEIN, EsQ. Deputy Attorney General 412 West Washington Boise, Idaho 83702 LISA D. NORDSTROM, Esq. and JULIA A. HfLTON, Esq. Idaho Power Company I22l West Idaho Street Boise, Idaho 83702 KEN MILLER Clean Energy Program Dj-rector Snake River Al]iance Post Office Box L73t Boise, fdaho 83701 For Idaho Power Company: For Snake River AII-iance: 83701 APPEARANCES 1 2 3 4 tr 6 1 B 9 10 11 t2 13 L4 15 L6 L1 1B t9 20 27 22 23 24 25 HEDRICK COURT REPORTING P. O. BOX 518, BOTSE, fD .fohn Weber (Publ-ic) KeIJ-y Hogan ( Public) Reed Burkholder ( Public ) Michael- Heckler ( Public ) Robert Blurton (Publ-ic) Scott Moore ( PubIic) Marianne Baer ( PubIic) Haro1d Ori-en ( Public ) Kenneth Jensen ( Publ-ic ) Bifl Robison ( PubIic) Barbara Loeding ( PubIic ) Mike Medberry (Publ-ic) Doug Buell-(PubIic telephonic) Laura Reynolds(Public telephonic) Mr. Klein Statement Mr. Klein Statement Commissioner Smith Mr. Kl-ein Statement Mr. Klein Statement Mr. Klein Statement Mr. Kleln Statement Mr. Klein Statement Commissioner Smith Mr. KIein Statement Mr. Klein Statement Mr. Klein Statement Mr. Kl-ei-n Statement Mr. Klein Statement Mr. Kl-ein Statement Mr. Kl-ein Statement 462 463 466 466 417 413 413 476 477 419 480 482 483 49L 49L 494 495 496 499 s00 s05 506 508 509 572 5]-2 5]-1 517 523 524 WITNESS INDEX EXAMINATION BY PAGE 83701 INDEX 1 2 3 4 q 6 7 B 9 10 11 L2 13 l4 15 1,6 l7 1B 19 20 27 22 23 24 25 HEDRICK COURT REPORTING P. O. BOX 578, BOTSE, rD INDEX EXHIBITS Peter Eitzsimmons(Publ-ic telephonic) Wal-ter Rowntree(PubIic - telephonic) Mary McGown ( PubIic) Anne Hausrath ( Public) David Monsees (Publ-ic) Alan Hausrath ( Public) ,Joanie Fauci ( PubIic) Ke1Iey Dagley ( Public) Steve White ( PubIic) Greg Olson ( Public) John Ryan ( Public) Sienna White ( Public) (No exhibj-ts were marked. ) Mr. Klein Statement Statement Mr. Kl-ein Statement Mr. KIein Statement Mr. Klein Statement Mr. KIein Statement Mr. Kl-ein Statement Mr. Kl-ein Statement Mr. Kl-ein Statement Sworn Mr. Kl-ein Statement Mr. Kl-ein Statement Mr. KIein Statement EXH]BTTS 527 528 532 536 s36 s39 s39 542 542 544 545 547 548 550 550 554 554 560 s61 s61 564 s65 569 569 83701 1 2 3 4 5 6 7 B 9 10 11 t2 13 L4 15 t6 71 1B 19 20 21, 22 23 24 25 HEDRICK COURT REPORTING P. O. BOX 5'78, BOTSE, rD BOISE IDAHO TUESDAY JUNE 11 20]-3 7:00 P.M COMMISSIONER SMITH: Good evening, ladies and gentlemen, and welcome to the public hearing before the Idaho PubIj-c Util-ities Commission in Case No. TPC-E-1,2-27, further identified as In the matter of Idaho Power Company's Application for authority to modify its net metering servj-ce and to increase the generation capacity l-imit. We welcome you. I'm goj-ng to describe the process briefly, and our purpose tonight is to hear from you and that's how we'l1 use our time. My name is Marsha Smith; f'm one of your three Commissioners, and f wil-l chair tonightrs hearing. On my left is Commissioner Paul- Kjellander, who is also president of the Commission,' and on my right 1s Commissioner Mack Redford. The three of us are the Publ-ic Utilities Commission and will- be making a Decj-sion in this matter. We spent the day having technical hearings with the parties. I woul-d like to acknowledge representation for Idaho Power Company, Ms. Nordstromi representation for the Staff , Mr. Klein; and for Snake River Al-l-iance, Mr. Mil-l-er. Are there any other parties present who wish to be acknowl-edged? Seeing noner ds I stated earlier, the purpose of tonj-ghtrs hearj-ng is to take public testimony. We deeply 460 83701 COLLOQUY 1 2 3 4 5 6 1 B 9 10 11 1,2 13 l4 15 76 17 18 79 20 27 22 23 24 25 HEDRICK COURT REPORTTNG P. O. BOX 578, BOTSE, ID appreciate the written comments that have already been filed. They are part of our record, the Commissioners have read them, and they wil-l- be consi-dered when we del-iberate and make our Decision. So we hope that tonight's hearing, if you have fil-ed written comments, it's not necessary to repeat what you said in them because we do have those. If you have new or addltional information to add, we'd be pleased to receive that. For those people who are testifying in person here at the Commission, I have the l-ist of those who have signed up. I wil-l cal-l your name. You wil-l- come forward. Commissioner Kjellander wil-l- ask you to raise your right hand and gj-ve you the oath so when you sit in the stand, then Staff attorney Mr. Kl-ein will ask you some questions to identify yourself so you will be clearly on the record. And after that, you will be free to make your statement. There will be the opportunity for the Commissioners and the parties who are present to ask you questions if they need to to clarify your testimony. So then we will- l-et' s see. I sj-gned up so far to testify here j-n our hearing think we'fl- take those people; then we will- go the telephone and take them; and then if there people who sign up in the interim, we can take The first person I have signed up Mr. John Webber (phonetic) or Weber (phonetic). 46]- have L2 people room, and I to the people on are further them after that. to testify is Sorry. 83701 COLLOQUY I 2 3 4 5 6 7 B 9 10 11 72 13 t4 15 L6 t7 1B t9 20 21 22 23 24 25 HEDRICK COURT P. O. BOX 578, REPORTING BOTSE, rD WEBER Public Whichever. JOHN WEBER, appearing as a publj-c witness, being first duly sworn, was examined and testified as follows: EXAMINATION BY MR. KLE]N: O. Good even j-ng. I I m Karl Klein, I 'm the attorney for the Commission Staff, and I'm just going to ask you a few preliminary questj-ons to get you on the record. Would you please state your full- name and spe1I your l-ast name for the record? A. John Weber, W-E-B-E-R. O. What's your maili-ng address? A. 6508 West Everett Street, 83704, in Boise. O. Are you an Idaho Power customer? A. Yes. O. And have you previously submitted written comments or testimony in this case? A. Yes, I have. O. Okay. Do you have a statement you'd like to make tonight as wel-l-? A. Yes. 462 83701 1 2 3 4 5 6 1 B 9 10 11 L2 13 t4 15 76 l7 18 t9 20 27 22 23 24 25 HEDRICK COURT REPORTING P. O. BOX 578, BOTSE, rD WEBER Public O. If you coul-d please l-imit that to new new matters, not rehashing what you've prevj-ousIy written, that would help. A. Exactly. It's all- new information. O. Okay, thank you. Go ahead. THE WITNESS: I wou1d l-ike to say that Staff comments regarding this case are some of the best and most thoughtful f have ever read. I agree with each point of the comments, including that an j-ncreased service charge and a basic load charge be brought up in a general rate. These should apply to all customers, not just net metering customers. f al-so agree that checks should not be i-ssued to net metering customers, and doll-ar credj-ts shoul-d carry over for as long as a customer is receiving service. Customers wanti-ng to receive checks should sign power purchase agreements, as this is not the i-ntent of net metering. The intent is to reduce or el-iminate electric bi1ls using a renewable resource. I ask the Commission to foll-ow the Staff's recommendati-ons . I would l-ike college textbooks regarding submitting this case. The regardless. History shows customers angry don't fair exception. At my job, if a to ask Idaho Power if they revj-ewed sal-es and marketing before customer 1s always right, that companies that make their wel-l- in the long term. This is no customer is upset, the flrst thing 463 83701 1 2 3 4 5 6 7 B 9 10 11 L2 13 74 15 t6 l1 18 19 20 2t 22 23 24 25 HEDRICK COURTP. O. BOX 578, REPORTING BOISE, ID WEBER PubIic I do is publicly apologize to them.The second thing I do is make them sati-sfled however I need to. f recommend to Idaho Power publicly apologize to the Commissioners and Staff of the PUC, the renewable energy installers, the Intervenors, and their net metering customers for wasting their time and money. If this is truly a revenue neutral- proposal and a1l- of the customers are agaj-nst the proposal, I ask that Idaho Power withdraw the case. Lastly, I would like to bring up that regulated investor-owned utility model- will no longer work in the future, as discussed on a Commonwealth Club forum this year. fOUs were compared to the Kodak company. I cal-l- it the electrica1 utility death spiral-, and it works l-ike this: Because of efficiency in sol-ar, customers use less power. To make up for the revenue l-oss, utilities raise its rates, which encourages more customers to increase their use of efficiency and solar, which causes util-ities to further increase rates, and on and on. Many cities and countj-es are providing electricity to their citizens. because the stakeholders and sharehol-ders Another model that may work Company only manage the grid and does not generati-on. They would make their revenue charges and tiny commissj-ons on all power 464 now working on This model works are the same people. would be the Utility own any of its own in monthly service that is bought and 83701 sol-d, l-ike the New York Stock Exchange. If Idaho Power were to have its proposal approved and make it uneconomical for customers to net meter, they woul-d be making it more economical for customers to get off the grid. One main reason for the dramatic decrease in the price of solar was the feed-in tariff Germany adopted a decade ago. Germany now has subsidies for residential storage which will brj-ng about a decrease in the cost of residential- storage in the future. In the US, only utilities can sell electricity to customers, but everyone on the planet has the right to generate their own el-ectricity. Thank you for your thoughtful considerations of my comments. COMMISSIONER SMITH: Ms. Nordstrom. Let's see if there are any questions. questions. MS. NORDSTROM: None from the Company. COMMISSIONER SMITH: Mr. Klein. MR. KLEIN: None from Staff. COMMISSIONER REDFORD: No. COMMISSIONER SMITH: Looks l-ike we don't have any We appreciate your testimony. THE WITNESS: Thank you. (The witness left the stand. ) COMMfSSIONER SMITH: Thank you. Ke11y Hogan. 465 3 4 5 6 7 B 9 10 1t- t2 13 74 15 t6 L7 1_8 19 20 2! 22 23 24 25 HEDRICK COURT P. O. BOX 578, REPORTING BOISE, ID WEBER Publ-ic83701 KELLY HOGAN, appearing as a pub1ic witness, being first duly sworn, was examined and testified as follows: EXAMINATION BY MR. KLEIN: O. Would you please state your ful-I name and spell your l-ast name for the record? A. Kel1y Hogan, H-O-G-A-N. O. What's your mailing address? A. 943 West Overland Road, Meridian, 83642. O. Are you an Idaho Power customer? A. I am. O. And have you prevj-ousIy submitted written comments or testimony in this case? A. I have submitted no written comments at this poj-nt. O. Okay. If you have a statement you'd like to make, please go ahead. A. Okay. THE WITNESS: Agaln, ily name 1s Ke1ly Hogan, and I am the owner of one of the largest solar arrays in the state. ft's l-ocated at 943 West Overland Road. It was instal-led about 18 months ago. Itrs on a gold LEED certified building, and we 466 2 3 4 5 6 7 I 9 10 11 1"2 13 74 15 16 l1 18 1,9 20 2t 22 23 24 25 HEDRICK COURT P. O. BOX 578, REPORTING BOTSE, ID HOGAN PubIic83701 1 2 3 4 ( 6 7 8 9 10 11 1,2 13 L4 15 t6 77 18 t9 20 2L 22 23 24 25 HEDRICK COURT REPORTING P. O. BOX 578, BOTSE, rD HOGAN PubIic made the investment in the solar array to improve our efficiency of our business but also to reduce our carbon footprint. In the last 18 months, we've produced 58,885 kj-l-owatt hours put back into the Idaho Power grid. That has averted approximately 41,500 kilograms of carbon dioxide lnto our atmosphere in the Treasure Va11ey. Basically, using the 201-7 lndustry standards, we've provided the energy necessary for six households in the Treasure Va11ey at no cost to Tdaho Power. My investment is augmented by the regular arrival of Chevy Volts to charge and a zero motorcycle commute from Idaho City for 25 cents each w&y, of which we provide the electricity for the return trip free of charge because they are an employee in our building. AIl of this was installed and done at no cost to the Idaho Power, but we do provide that energy back into the grid. The system is operational and run to generate one meter for generation and one meter for consumption. In some of the j-nformation that Irve recently revj-ewed, it showed me as one of the examples of large amounts of money that were being paid by Idaho Power to justify the change in this proposed sj-tuation. What was that is the farthest from the truth, because the facts are this: 467 83701 1 2 3 4 5 6 1 B 9 10 11 72 13 74 15 16 L't 1B L9 20 27 22 23 24 25 HEDRICK COURT REPORT]NG P. O. BOX 578, BOTSE, rD HOGAN Public I have two meters: One generation meter and one consumption meter. By design, I put that in there for an accounting reason, not necessarily anything el-se. I like to see checks as opposed to see credits. It also a1lows me to see j-t on a running basis. The facts are that we've been paid over the l-ast 18 months $5,095 by Idaho Power on our generation meter, including the $S service fee each month. The meter that is eight feet away has accrued bil-Is of $20,266. Doing the math, I have provided approxj-mately 25 percent of my own energy requirements, and thus me being used as an example that is gaming the system or potentially benefiting from the net metering program is out of l-ine. Considering the proposed approach frve had a chance to review some of it the current net metering system seems fair to busj-nesses l-ike myself that seek to improve the future whll-e reducing costs. ft allows easy accounting for consumption and for generati-on by having dedicated meters if the venue decides to do that. In my opinion, the proposed system would convolute an a.l-ready complex process with speculation, making the business owner decide when they will use energy and how J-ong that energy and credits will- Iast, forcing time.l-j-nes of which they must consume more energy in order to not l-ose their credits. 468 83701 1 2 3 4 5 6 1 I 9 10 11 L2 13 t4 15 L6 L7 18 19 20 2t 22 23 24 25 HEDRICK COURT P. O. BOX 518, REPORTING BOTSE, rD HOGAN Publ-ic I think that the proposed system woul-d open the system up for people gaming the business side of it by putting smal-I panels on the roof with a single microi-nverter that now makes them a business that is providing for it, even though the generation is smal-f and minute and reaLly not an advantage to the grid over all. It complicates the accounting processes for businesses to have to bank up and use credits to avoid losi-ng them, and I donrt think that that's a burden that we should be burdened with as a business. It also sfams the door on people that have invested in good faith on a program they were abl-e to develop an ROI business deci-sion with based off of the previous situation that was in place. In my mind, a meter is a meter and I see no significant cost difference in associating a bill with it, whether it is a credit or a debit. We do it every day in our accountj-ng systems. The quantity is so few that this seems l-ike a smoke screen for me. And for people like me, Irm paying two meter charges anyway, so under the new proposal, I wou1d only have one. The bottom l-ine, in my opinion, is the PUC shoul-d deny the changes to rates but al-low unl-imited kilowatts for the current net metering program. When we made the business decj-sj-on to move in this dj-rection, it was of substantial- 469 83701 1 2 3 4 5 6 I B 9 10 11 72 13 t4 15 t6 L7 18 1,9 20 2L 22 23 24 25 HEDRICK COURT P. O. BOX 578, REPORTING BOISE, ID HOGAN Publ-ic investment. We ran an ROI like any other investment, and that ROI made sense based off of what the policies were that were i-n place. Idaho Power I think should embrace alternative energy productlon and factor it into a long-term vision that they are to be a long-term provider. Unbeknownst to me, the first person that testified made the same exact point that I have here, is the future will- be one of improved production capabilities in sofar and wind equi-pment. Werre seeing a logarithmic improvement in these technol-ogies every year. Improved efficiencies in homes and business energy needs, and the option of localized storage allowing people to easily manage their own energy needs and reguirements, will change the pace of what the grid does i-n the very near future. Idaho Power should lead the nation by embracing these technol-ogies and be a pj-oneer in adapting the changj-ng energy environment that awaits us that j-s going to be solved by technology. I wish to thank Idaho Power for designing the original net metering program of which we took advantage of. I encourage them to consider that businesses owners l-ike myself that will make substantial- investments in the solar grid will- continue to do so if the ROI makes sense and has a viable return on investment. I al-so l-ike to thank the PUC for the oversight and objectiveness in this process. As a public CommJ-ssion, it 4'7 0 83701 1 2 3 4 q 6 7 B 9 10 11 1,2 13 l4 15 t6 71 1B L9 20 2L 22 23 24 25 HEDRICK COURT REPORTING P. O. BOX 578, BOTSE, rD HOGAN (Com) Publ-ic is imperative that both the objectives of the public and the util-ities are met. I appreciate the opportunity to present this information, and I l-ook forward to your reconrmendatlons. Thank you. COMMISSIONER SMITH: Let's see if there are any questJ-ons. Any questions from the parties? MS. NORDSTROM: No. COMMISSIONER SMITH: How about from the Commissi-oners ? COMMISSIONER REDEORD: No. EXAMTNAT]ON BY COMMISSIONER SMITH: O. f want to be sure that I understood the figures that you gave at the beginning. So, you have two meters, and if I understood correctly, there was 5,000 and some dollars that you were paid? A. That's correct. O. And then there was another meter where there was 20,000 and some dol-Iars that you would have been biIled but you weren I t ? A. No, that's not correct. O. Okay, so okay. 47L 83701 1 2 3 4 5 6 7 I 9 10 11 t2 13 L4 15 16 t7 1B 1,9 20 27 22 23 24 25 HEDRICK COURT REPORTING P. O. BOX 578, BOTSE, rD HOGAN (Com) Publ-ic A. V[e have two meters. One is just the generation orr the consumption of our building. O. Right. Okay. A. So over the course of the last 18 months, we've paid $18,000 to Idaho Power. O. Okay. So those are the bil1s you've paid? A. Those are the normal bills just like any other business that our business accrues for the energy use. To offset that, our generation meter runs backwards most of the time. O. Right. A. And we received $5,095 over that same 18 months. Result is that about 25 percent of our bill is being offset by our solar generation. 0. A11 right. A. But from an accounting standpoint, it makes it very easy. O. So there's been no time in which your generation exceeded your consumption? A. There has never been a time like that, and we knew that going in, but it was ironj-c that we were number four on the list of the payouts by Idaho Power in some of the information that f saw. O. Okay. Thank you. I appreciate that clarification. 412 83701 (The witness l-eft the stand.) COMMISSIONER SMITH: Reed Burkhol-der. REED BURKHOLDER, appearing as a public witness, being first duly sworn, was examined and testif ied as foll-ows: EXAMINATION BY MR. KLEIN: O. Mr. Burkholder, woul-d you please state your full- name and spell your l-ast name for the record? A. Reed Burkholder, B-U-R-K-H-O-L-D-E-R. O. What's your residence address? A. 6105 Twj-n Springs Drj-ve in Boise, 83709. O. Are you an Idaho Power customer? A. I am. O. And have you prevlously submitted written testimony or comments in this case? A. I have. O. And, with that, if you have a statement to make, would you please Limit it to new information? A. Okay. O. Thank you. THE WITNESS: I have a 3.7 kil-owatt photovoltaic 473 2 3 4 5 6 7 8 9 10 11 t2 13 l4 l-5 16 l7 1B 1,9 20 2L 22 23 24 25 HEDRICK COURT REPORT]NG P. O. BOX 5'78, BOTSE, rD BURKHOLDER Publ-ic83701 1 2 3 4 5 6 7 I 9 10 11 !2 13 L4 15 76 L7 18 19 20 2t 22 23 24 25 HEDRICK COURT P. O. BOX 5'7I , REPORTING BOISE, ID BURKHOLDERPublic array on my residential- roof that cost $18,375 recelpt here if anyone would like to see that. I have the I'm deeply disappointed in Idaho Power for proposing to discourage solar by adding fees and raj-sing the service charges for net metering customers. You see, we have a serious problem that sooner or l-ater we need to deal- with: This j-s a graph of CO2 concentrations measured at the NOAA station in Hawaii. This is when Al- Gore wrote his book Earth in the Bafance. This graph was in there, but it ended right there, in L992. And look what we've done since then. Wel-l-, the graph has not only gone up, j-t's accelerated. So, our concentratj-ons of CO2 in the atmosphere are rising and rising and rising. I heard recently that they have gone to 400 parts per million. Now, Idaho Power is part of this problem. They have three coal--fired plants Va1my, Boardman, and Jim Bridger and three nature gas-fired plants Danskj-n, Bennett Mountain, and LangJ-ey Gu1ch. Net metering customers, on the other hand, are part of the sol-ution with our sol-ar arrays, our wind turbines, and our hydro facilities. Let me ill-ustrate this. If I were an average Idaho Power customer, I woul-d have purchased 22,000 kilowatt hours of electricity in the nearly two years sj-nce my panels went up on the roof. But since I have 27 solar panels and since I have tried to reduce 474 83701 1 2 3 4 5 6 1 B 9 10 11 L2 13 l4 15 16 77 1B 19 20 2I 22 23 24 25 HEDRICK COURT REPORT]NG P. O. BOX 518, BOTSE, fD BURKHOLDER Publ-ic my power consumption, my purchases from Idaho Power have been reduced to zero point zero zero. Rooftop I'm telling you, roof top sol-ar is a really cool- ef f iciency measure. This rea1ly works. So, we've got this problem; this big, big, big, big, big problem: Our oceans are becoming more acidic; our j-ce packs are melting in the Arctic, Antarctic, and Greenland; the cl-j-mate is becoming j-ncreasingfy warm, unpredictable, and viol-ent; sea levels are rising. Who would have guessed, who could possibly have guessed, that the subways of New York City would be flooded with sea water during Hurricane Sandy? I'm just going to suggest to this group and to our Commj-ssioners that, you know, it might be a good j-dea to face this problem and deal- wlth it. So I urge you to foll-ow the Staff's recommendation recommendations and deny Idaho Power's requests for policy changes for net metering customers. I also urge that you double the rate paid to net metering customers from the current ful-f retail rate to two times the current ful-l retail- rate. If you make policy decisions that encourage renewab1e energy development in Idaho, you will become part of the solution. Thank you for the opportunity to ta1k. COMMISSIONER SMITH: Thank you, Mr. Burkholder. Let's see if there are any questions. I won't cal-l- on you anymore. If you have a. 415 83701 1 2 3 4 5 6 1 I 9 10 11 t2 13 L4 15 t6 t7 1B 1,9 20 2L 22 23 24 25 HEDRICK COURT P. O. BOX 578, REPORTING BOISE, TD HECKLER Public question, just indicate to me. Thank you very much for appearing. (The witness left the stand. ) COMMISSIONER SMITH: Michael Heckler. MICHAEL HECKLER, appearing as a public witness, being first duly sworn, was examined and testif ied as foll-ows: EXAMINATTON BY MR. KLE]N: O. Good evening. A. Good evening. A. Would you please state your fuIl name and speI1 your last name for the record? A. My name is Michael Heckler. The last name is H-E-C-K-L-E_R. a. What is your mailing address? A. f live in Bolse, 2245 Roanoke Drj-ve, 83'7L2. O. Are you an Idaho Power customer? A. Yes. O. And have you previously submitted a written statement or comments in this case? A. Yes, on May 3rd. 476 83701 1 2 3 4 5 6 1 B 9 10 11 L2 13 L4 15 16 l1 1B 79 20 27 22 Z5 24 25 HEDR]CK COURT REPORTING P. O. BOX 578, BOTSE, rD HECKLER PubIic O. So if you have a statement to make, please limit it to new information. Thanks. A. I wil-1 do that. THE WfTNESS: I'd like to talk to you about a potential- win-win outcome from this docket, and one that would leverage the existing substantial investment in smart meters. To harness that leverage, I propose that Idaho Power purchase solar inverters and provlde them to new at no cost to new solar net metering customers. Sol-ar j-nverters are now avail-able that can provj-de power support on the distribution system. Those are the types of inverters that I propose that the Company purchase. If the Company control-Ied the AC output at some substantial- number of net metering sites, they could potentially reduce power losses on the distribution system. Such a reduction in operating .l-osses provides a win for all ratepayers. So.l-ar net metering customers provide other benef its to al-l- ratepayers. Solar net metering customers produce power on those hot, sunny summer days when the Company faces its highest system l-oads. That power reduces the Company's need to access peak generation and firm transmi-ssion. Today, both of the Company's wj-tnesses testified that Idaho Power hasn't analyzed the value of solar net metering in reducing the Company's transmission and generation costs. In contrast, Mr. Beach's unrebutted testimony 477 83701 1 2 3 4 5 6 1 B 9 10 11 72 13 L4 15 t6 L7 18 19 20 27 22 23 24 25 HEDRICK COURT REPORTING P. O. BOX 578, BOTSE, rD HECKLER PubIic quantifies the substantial cross-subsidy that soLar net metering customers provide to nonsolar net metering ratepayers. His analysis shows that non-net metering customers have a provide a potential win have a potential win everytime a new sofar net metering customer comes online. Future solar net metering customers would also win. They woul-d obviousl-y benefit by having an essential component of their systems that being the j-nverter supplied to them at no cost. They might al-so reap some benefits of easier permittlng. Some jurisdictions might be more comfortabl-e permitting a solar system if the component that l-inks the solar panels to the grid has Idaho Power's stamp of approval. Idaho Power could win in a couple of ways: In operatJ-ng these so.Iar inverter controls, the Company woul-d have an opportunity to further develop and enhance its operational excell-ence at the distribution l-evel-. Assuming an appropriate regulatory approach could be developed, the Company cou.l-d afso win by having an opportunity to earn a rate of return on the va1ue of the i-nverters. f nverters cost about as much as other soluti-ons the customer the Company is looking at to meet its future energy and capacity needs. Buildj-ng transmisslon like B to H to access energy and capacity is estimated to cost about $430 per kiLowatt. Depending on the quantity purchased and the features 418 83701 desired, inverters priced j-n the 400 to $500 per-kilowatt range coul-d access energy and capacity from Idaho rooftops. It's not appropriate to go into more detail- now, but I stand ready to work with Staff, the Company, other parties if the Commission desires to further examine this idea. Thank you. COMMISSIONER SMf TH: Thank you, Mr. Heckl-er. We appreciate your comments. Are there any questions? Nor 7, but thank you for being creative and thoughtful. (The witness l-eft the stand.) COMMISSIONER SMITH: Robert Blurton. ROBERT BLURTON, appearj-ng as a public witness, being first duly sworn, was examined and testif ied as foll-ows: EXAMINATION BY MR. KLEIN: o. Hi. A. Hel]o . 0. Wou1d you please state your ful-l- name and spe11 your last name for the record? 479 2 3 4 5 6 7 B 9 10 11 t2 13 t4 15 t6 t1 t_8 1,9 20 2t 22 23 24 25 HEDRICK COURT REPORT]NG P. O. BOX 5'7I , BOTSE, rD BLURTON Publ-ic83701 1 2 3 4 5 6 7 B 9 10 11 72 1_3 t4 15 16 L'7 1B \9 20 21, 22 23 24 25 HEDRICK COURT P. O. BOX 578, REPORTING BOTSE, ID BLURTON Public A. Robert Blurton, B-L-U-R-T-O-N. O. And what is your mailing address? A. 2100 South Virginia Avenue, Bolse. a. Are you a customer of Idaho Power? A. I am. O. Have you previously submitted written comments or testj-mony in this case? A. f havenrt. O. If you have a statement you'd l-ike to make, please go ahead. A. Thank you. THE WITNESS: About nine years d9o, I started studying energy and I started reading every credibl-e book that came out on oiI, natural gas, coal, hydropower, and sofar. And f've heard that you fol-ks understand that our resources are dwindling, and itrs cal1ed peak oi1 theory, or peak oiI. That covers it. But what we're looking at across al-l- forms of energy is depletion. Our dams are filling in with silt. Our oil is getting more expensive and harder to find. Our natural- gas is now the fracking is putting the supply out there but it's a Ponzi scheme. So we're producing fracked gas now at $Z a therm and selling it at $4, so that is somethj-ng that's not going to last. 480 83701 1 2 3 4 5 6 7 8 9 10 11 L2 13 L4 15 16 L7 18 t9 20 2t 22 23 24 25 HEDRICK COURT P. O. BOX 518, REPORTING BOISE, ID BLURTON PubIic Our coa1, the last credibl-e book on coaf said that we have about ten years of economically viable coaL left i-n Ameri-ca. The next place we're going wj-th this j-s biomass. We're kind of burning the forests, ds I understand. So, we have no future with fossil fuels. V{e have no future with the dams. It's all- headed off a cliff. In fact, there's a concept known as the net energy cl-iff where these things that we're burnj-ng now to create the power that Idaho Power is sending to us, those things are going to be too precj-ous to burn. And we don't know exactly when that's going to happen, but it's going to come in the next few years. So if we want electricity in the future, we're going to have to have soIar, we're going to have to have wind, because al-1 of those other things are going away. And I'm a particular fan of the concept called a feebate. You want to take money from the thing you don't want -- which is a reliance on fossil- fuels,'and dams which are going to f ilI in with silt and we'l-l- never be abl-e to dredge those dams, it's not going to be economical-Iy viable,'w€ do not want to burn the forests so we want to take money that's now being generated from those dirty things that are no longer going to be here and we want to put that into something that's goi-ng to have a future. And we have a very short window. And I have 481 83701 1 2 3 4 5 6 7 B 9 10 11 l2 13 t4 15 1,6 !7 1B 19 20 2t 22 23 24 25 HEDRICK COURT P. O. BOX 578, REPORTING BOISE, ID MOORE Publ-ic friends within the PUC and they say that everyone within the Public Utilities Commission understands peak oi1 theory; they understand that applies to oi1, coal-, natural gas, everything you mine. There's no future in that stuff. If we want to be able to flip the lights onr if we want hospital-s that function, we're totally dependent on refrigerationr so many things from electricity, that we're not going to have that unless we start right now converting to so1ar, wind, things that are not dependent on burnJ-ng something. Thank you. COMMISSIONER SMITH: Thank you for your comments. Is there any questions? Thank you very much, Mr. Blurton; appreciate your com]-ng. (The witness left the stand. ) COMMISSIONER SMITH: Scott Moore. SCOTT MOORE, appearing as a public wltness, being first duly sworn, was examined and testif ied as fol-l-ows: EXAMINATION BY MR. KLE]N: A. Mr. Moore, could you please state your full name 482 83701 1 2 3 4 5 6 7 I 9 10 11 L2 13 t4 15 L6 77 18 t9 20 2! 22 23 24 25 HEDRICK COURT REPORTING P. O. BOX 578, BOTSE, rD MOORE Public and spell your last name for the record? A. Yes. Scott Moore, M-O-O-R-E. 0. And what is your mailing address? A. 1840 East Mary Lane, Meridian, Idaho. O. Are you an fdaho Power customer? A. Yes, I am. O. And have you previously submitted written comments or testj-mony j-n this case? A. Yes, I have. O. So if you have a statement to make, please go ahead and do that, and limit it to new information if you would. A. Okay. O. Thank you. THE WITNESS: So I'd l-ike to begi-n that f am a residential sol-ar net metering customer. And I also have a business account under a newly-formed start-up business for developing al-ternate energy and currently that business is located in Lowman, Idaho, where we recently, the end of l-ast year, designed a test model- of a small- hydro project for generating some power that was attractive to other people in rural communitj-es that had that resource avail-abl-e with the i-ntent to move forward but developing that business into somethj-ng viable, and no sooner had we got the system online and were starting to work on the 483 83701 1 2 3 4 5 6 7 I 9 10 11 72 13 l4 15 76 t7 18 l9 20 2L 22 23 24 25 HEDRICK COURT P. O. BOX 578, REPORTING BOISE, ID MOORE PubIic business plan that we were notifj-ed of this proposed change to net metering, which virtually at this poj-nt put the business venture completely on hold and brought into question the even contj-nued operatj-on of the hydro plant since that busj-ness right now doesn't have a Iot of power demands and will- recej-ve some credit under the net metering program. So and then al-so 1n addition, I had recently instal-l-ed a seven kW system at my home resldence in Meridj-an to offset some of the lrrigation needs and normal- power usage. Knowing that system was al-ready underdesigned and most of the components had been purchased before, if f was notified of these changes, if I had become aware of the proposed changes and the impact that it woul-d have on me, the return on investment would have been something that I would not have al-located resources to do that with. So along those lines that after reviewing the proposed changes from Idaho Power and attending many of the meetj-ngs and being j-nvol-ved in talking to other customers that are on sofar or other energy sources, I can't find reaIIy anything in Idaho Power's Request that f coul-d support. And even what appeared to be attractive of doubJ-ing the cdp, once I real-ized that from a business point of view and trying to tal-k to customers, the first thing that's come up several times is with the uncertainty in the cap maybe as short as three years away, the potential for significant 484 83701 1 2 3 4 5 6 7 B 9 10 11 t2 13 L4 15 t6 L7 1B 1,9 20 2L 22 23 24 25 HEDRICK COURT P. O. BOX 5'l B , REPORTING BOTSE, rD MOORE Publ-ic changes, most people aren't interested in investing in energy. So, I would actually like to see the cap el-imi-nated regardless of what's decided on the other matters, and as suggested in earlier testimony today, other mechani-sms be put in place to monitor the effectiveness of the net meterlng program. And one of the things that has been reoccurring from the beginning from Idaho Power's point of view is that this is all about fai-rness, and it seems that it only appears to be fairness on a certain subgroup of customers that realIy aren't different than other residential. And the first example that personally comes to me is that I use a cabin up in the Lowman area occasionally and we were looking at putting a couple smal-l- sofar panels on that, but in I guess regardless of whether they're sol-ar panels, what I hear from Idaho Power is that because solar customers are effectively low-usage customers from a power consumption, if they offset their kil-owatt energy bill, that that l-evels them not paying their ful-l- f ixed cost. Wel-l- in the cabin situati-on, primarily the energy usage in that is when we visit it a few times j-n the winter months and go up there and turn on the electric furnace and it runs for a couple hours heating the cabin up. Wel1 under the new proposals for the net meterJ-ng customers -- which one could infer that Idaho Power, tf they're al-l- about fairness, would l-ike to see that on norma1 485 83701 B 9 10 11 1 2 3 4 5 6 1 72 13 L4 15 L6 L1 1B 19 20 21 22 23 24 25 HEDRICK COURT REPORTTNG P. O. BOX 578, BOTSE, rD MOORE Public residential customers -- that's an example where if I set a basic l-oad charge of 20, 24 kilowatts and establish that two months of the year, and that's average and that turns out to be the average peak, that would effectively put a $30-a-month basic load charge on the bil-I. Times 12 months, that's $360 for running the furnace two or three times a year, which I don't agree that that's in l-ine with average power usage and distributing the cost of distribution amongst al-l the customers, in that case a small usage customer. So I have an issue with that whol-e direction of going over to trying to absolutely recover what is projected to be fixed costs of every customer, and if you're not doing it, [e, as a low usage customer, somehow unfairly gaming the system or recei-ving cross-subsidies from other customers, so disagree with that. And then in part of my investigatj-on, Mr. Hogland (phonetic) took time out of his busy schedule to speak to and possibly a couple other customers that may appear to testify, is that in the representationr ds he stated from Idaho Power, that it's unacceptabl-e to make payments for excess power. I found that it's been represented in those high-use power payments is that that's not as it appears, ds he stated; that some of the customers have separate meters for the generation that may offset al-I or just a partiaf amount of the power, so it doesn't quite reflect what's truJ-y going on. And that seems 486 83701 1 2 3 4 5 6 7 B 9 10 11 t2 13 L4 15 t6 l'l 18 t9 20 2t 22 23 24 25 HEDRICK COURT P. O. BOX 578, REPORTING BOTSE, rD MOORE Public like a point that Idaho Power could have clearly addressed in being transparent in what the circumstances are. And so along with the power excess power generation, in several tj-mes throughout the proceedj-ngs and the meetings it's been suggested by the Power Company that excess power is not appropriate for net metering, and that it's only used to zero out your power consumption. And, you know, I've never really clearly found anyplace in the documentatj-on that you coul-dnrt go below zero. It's, you know, not referred to as "net zero metering, " just "net metering. " And what's been referred to is that a customer like myself with my hydro or any other customers that may have excess either continuously or from periodically year to year should go under Schedule 86 for purchasing that, and I haven't heard anybody tal-k about the details of Schedule 86. And when you get into just the primary details of 86 as it woul-d appfy to this, even the heading of it for purchases, ten megawatt systems and sma1ler, there is a sectj-on for energy that's in the one megawatt and 1ess. And one of the requirements right off the bat that is would certaj-nl-y be a problem for me or most other people I know is the requirement of a mi11ion-do11ar per-incident insurance policy, which in the case of a small- generation would exceed the vaLue of the power. In addition, it's a contract, whi-ch, you know, 487 83701 1 2 3 4 5 6 1 B 9 10 11 L2 13 t4 15 t6 77 1B 19 20 2L 22 23 24 25 HEDRICK COURT REPORTING P. O. BOX 5'7I , BOTSE, rD MOORE Publ-ic wise person would employ an attorney to be involved j-n contract negotiation. Last time I checked, attorneys aren't generally inexpensive. And so that would exceed the value of that. And then looking into Schedule B6 further, there's a l-ot of sections in there that the sel-Ier would be requj-red to incur all- expenses related to the Power Company from studies to any monitoringr ds wel-l- as that the se11er would have to provide independent l-icense certj-fication at their expense on inltial start-up and then periodically once every year. And this is for a system that might be, for example, two or three kilowatts. In case of a hydro that runs 24/1 that does generate excess power, when you get to the practical matter, Schedule B6 wou1d reaIly not be appropriate for that. It appears that it's more appropriate for medium-sized wj-nd farms that produce megawatts of power or several hundred kilowatts that the val-ue of power does accumulate to a signi-f icant amount. So I think that leaves a huge gap and a question out there that if net metering is not appropriate for small excess generation, how can that generation exist within fdaho Power and yet not get involved in Schedu1e 86 with all- of its requirements. f've also seen testimony from experts saying an analysis that the power particularly generated from sol-ar at 488 83701 1 2 3 4 5 6 1 8 9 10 11 72 13 L4 15 l6 1_-t 18 t9 20 27 22 23 24 25 HEDRICK COURT P. O. BOX 578, REPORTING BOTSE, rD MOORE Public peak demands l-ine up with Idaho Power's peak demand and expensive power purchase, which is refl-ected in their newly-introduced time of day metering service which gj-ves customers a lower power rate at offpeak in return for reducing their demand during peak time. I would like to see the PUC somehow get involved or direct Idaho Power to impJ-ement in their new AMI metering system when they have the capability of doing that to offer that to net metering customers. Currently right now, they say their billing system does not al-l-ow net metering billing combj-ned wlth time of day generation or consumption, yet a customer can look at their own power bill- and see what tj-me of day in at least an hourl-y or subhourly increment of when that power is generated, so they could easily credit solar producers at a higher rate durJ-ng those peak times. Which brings back the point that it is vaIuab1e to have any kind of credit, whether j-t's an ongoing or day-to-day credit, be based on a monetary system rather than a kilowatt system, since kil-owatts have been determined that they're not all equal dependent upon what time of day and time of year they may be produced or consumed. And as a closing statement, I woul-d l-ike to say that one of the unmentioned val-ues of net metering customers which I was informed several- years ago when I was looking into doing this is that trying to justify the return on investment, 489 83701 1 2 3 4 5 6 1 I 9 10 11 L2 13 L4 15 16 L1 1B 19 20 2L 22 23 24 25 HEDR]CK COURT REPORTING P. O. BOX 5-78, BOTSE, fD MOORE PubIic it was mentioned that net metering people try very hard to get their meter to slow down or run backwards. And once I instal-l-ed my solar system last December on my residence, I immediately become aware of where power is going, you know, why it's being consumed in the middl-e of the night, and I finally started listening to my wife and shut off the lights when I feft the room. So it does bring a pretty good point that the val-ue in encouraging people to have al-ternate energy makes them more aware of where their power is going and they do things to consume ot, reduce their consumption, which seems like it's exactly in l-ine with Idaho Power's proactive energy efficiency service where they feel so strongly about it they're wil-l-ing to tax us four percent on our everybody's power bil-I to pay for other people to benefit from it, whereas a solar or a net metering customer, they get that same benefit, possibly even more, without having to spend any of Idaho Power or the other ratepayers ' money. So that's my conclusion. COMMISSIONER SMITH: Let's see if there are any questions for you. Apprecj-ate your comments. THE WITNESS: A11 rj-ght. Thank you. (The witness l-eft the stand.) COMMISSIONER SMITH: Mari-anne Baer. 490 83701 1 2 3 4 5 6 7 I 9 10 11 L2 13 1.4 15 16 t7 18 t9 20 2t 22 23 24 25 HEDRICK COURT REPORTING P. O. BOX 578, BOTSE, rD BAER Publ-ic MARIANNE BAER, appearing as a public witness, being fj-rst duly sworn, was examined and testif ied as foll-ows: EXAMINATION BY MR. KLEIN: 0. Good evening. A. Hi. O. Hi. Would you please state your full- name and speIl your last name for the record? A. Marianne Baer, B-A-E-R. O. And what is your mailing address? A. 5200 Murphy Road, Kuna, Idaho. O. Are you an Idaho Power customer? A. I am. O. And have you previously submitted written comments or testimony in this case? A. I have. O. So if you have a statement, please go ahead and make it, and limit your comments to new information if you woul-d. A. Thank you. THE WITNESS: I don't have charts, I don't have statistics. I'm just a frustrated solar homeowner with just a 491. 83701 1 2 3 4 ( 6 7 B 9 10 11 72 13 t4 15 \6 L1 18 1,9 20 2L 22 23 24 25 HEDRICK COURT REPORTING P. O. BOX 578, BOTSE, rD BAER Public lot of questj-ons for Idaho Power I guess the irony of this entire situation hit me about two weeks ago when I had my furnace and air conditioning people come out to give me estimates on a new system to replace my agi-ng system, and they very kindly put together the most energy efficient system and the prices for that, and I had to go back and say, Coul-d you please give me the prices for the l-east energy efficient system so I can -- because I don't know if it's going to penalize me for being more energy efficient. I have a new roof that I have to put on in two weeks and I'm l-ooking at the same thing, where I wanted so1ar, the Energy Star panels, and now I'm thinking, wellr drn I going to be penalized for having the Energy Star panels on my roof? Do I need to just go with the plain-o1d, non-energy efflcient panels ? And I feel- you know, I think most al-1 of us in this room who have solar or wind were wanti-ng to be part of the solution and we're trying to individually help our energy needs; and I think none of us, because of the expense that went into building a system, did this liqhtIy. I know I spent several years thinking about it and debating it, looking at the numbers, and, you know, it was only after talking with Idaho Power and looking at the numbers where j-t seemed like it was a wise f i-nancial decislon to make. And now it seems l-ike and Idaho Power seemed in favor of it. But with in light of a1l 492 83701 1 2 3 4 5 6 7 I 9 10 11 t2 13 t4 15 t6 l7 1B 19 20 27 22 23 24 25 HEDRICK COURT REPORT]NG P. O. BOX 578, BOTSE, rD BAER Public of this that's going on, it seems, to me, that Idaho Power wants us to be energy efficient but only a little bit. And if Idaho Power had, you know, when we I had been looking at numbers and if I had gone to Idaho Power and if they'd said, Yes, we want you to be energy efficient and you can have solar panels, but you can only generate this much or we're going to penalize you, I might have thought something differently. It just doesn't I don't think it's fair for all of us who have systems to now have them rethinkj-ng thej-r policy because of the financial commitments that all of us made, and I'm sure for many of us it was money out af, you know, nest eggs and savings that we determined to use to be part of the solution for our energy needs. And I think for most of us and people that I've talked to, we al-l wanted it to benefit everyone. We wanted our needs to be met. I have the securj-ty of knowi-ng if power goes down that I can supply anj-mal-s to my farm -- supply water to my farm and energy to my home. I thought it was going to be benefiting the community: I woul-d be generati-ng power during peak hours where Idaho Power is saying that they theyrre telling everyone to conserve energy then. I think we all did this in good faith, that it was going to benefit everybody. And the State believes in it: I get a tax benefit from having had a system. The Federal government bel-ieves in it: They provided me money f or having instal-Ied 493 83701 1 2 3 4 ( 6 7 B 9 10 11 t2 13 t4 15 L6 77 18 t_9 20 27 22 23 24 25 HEDRICK COURT REPORTING P. O. BOX 578, BOTSE, rD BAER (Com) Public the system. The only one who seems to having a system now is Idaho Power. And I think they just which side of the fence they're on. If green expo promoting energy efflciency, energy efficiency and support those of not be happy with me they need to decide you're going to be at a be on the side of us who are wanting that so many people haveand get j-nto the game. I mean, I think talked about we know where the future is going. It's not a mystery. We've got to do something to change our energy consumption habits and how we're generating energy. And if Idaho Power rea1Iy wants to position itsel-f as a company that's concerned about energy efficiency, then jump on board. Other states are doing it. And we certainl-y have the opportunity here with sunshine and wind to make a difference and to be a l-eader instead of being bottom of the pack. And I think with this kind of rate proposal that's reaIly going to discourage people from wanting to be energy efficient, that moves us to the bottom of the pack. COMM]SSIONER SMITH:Let's see if there are any questions EXAMINAT]ON BY COMMISSIONER SMITH: just had one 494 o 83701 1 2 3 4 5 6 1 B 9 10 11 t2 13 t4 15 L6 L1 1B 19 20 27 22 23 24 25 HEDRICK COURT REPORTING P. O. BOX 578, BOTSE, rD A. Yes. O. Does your system generate more than you use or consume? A. During the summer months, a littl-e bit, and I get a credj-t on my bill. During the winter monthsr rro, because of the farm needs and -- O. Right. okay. A. Yeah. O. Thank you. A. You're welcome. (The witness left the stand. ) COMMISSIONER SMITH: Harol-d Orien. HAROLD OR]EN, appearing as a public witness, being fj-rst duly sworn, was examined and testif ied as fol-lows: EXAM]NAT]ON BY MR. KLEIN: O. Would you please state your name and speIl your Iast name? A. Harold Orien, O-R-I-E-N. 0. And what is your mai-ling address? A. 4416 Quail- Ridge Drive, in Boise. 495 OR]EN Publ-ic83701 1 2 3 4 5 6 7 I 9 10 11 L2 13 t4 15 1,6 77 18 19 20 2t 22 23 24 25 HEDRICK COURT REPORTING P. O. BOX 578, BOTSE, rD ORIEN Publ-ic O. Are you an Idaho Power customer? A. I am. O. And have you previously written testimony or comments in this case? A. I have, but I have additional comments tonight. O. If you would make those, that would be great. A. Thank you very much. COMMISSIONER SMITH: I apologize for your name. THE WITNESS: ft's okay. It's Norwegian not Irish, but it usually gets pronounced "O'rien." Commj-ssioners, thank you for the time tonight. I am a retired businessman. I have four properties in Southwest fdaho. And with the recent reductj-on in the cost of installing sofar powers sol-ar power panels, excuse me, on homes, I've been looking at it as a good investment for these properties. However, when I talked with some instal-l-ers here 1ocaI1y and became aware of some increased fees that are being proposed, I became concerned that it may not be such a good investment, basically. So, I want to gi-ve you some numbers tonight that I would be looking at j-n terms of home sol-ar instal-lation before the fees and after, if that makes sense, and f rve rounded them just a l-ittl-e bit, they're not the exact numbers, but just to make the case simpler for everybody to foll-ow. In theory, I should be abl-e to, per home, expend 496 83701 5 6 1 1 2 3 4 B 9 10 11 L2 13 74 15 L6 L1 18 79 20 2L 22 23 24 25 HEDR]CK COURT P. O. BOX 578, REPORT]NG BOISE, ID OR]EN Public $10,000, receive some credits so my out-of-pocket expense is $7,000, and with that, I should be able to reduce my power bill by about 50 percent, so a $200 average monthly bill should go down to $100. So again, in theory, under the current fee structure, I shoul-d be abl-e to save about $L,200 a year, have a sj-x-year payback, and over a ten-year period of investment have a seven percent return. That's not bad. I l-ooked at it and thought, that's pretty good. If we go with the new fees, fly understanding is my savings now per year will- only be $800 per month, I'Il- have a nine-year payback time, and my ten-year return on j-nvestment is only L.4 percent. Huh, just isn't that exciting anymore. I think Treasury bil-ls are running around one point five, six, I don't know. VOICES: (Laughter. ) THE WfTNESS: And f'm not trying to be funny about it. COMMISSIONER SMITH: They have gone up. THE WITNESS: They have gone up. I just think, why bother, you know, al-l- of the effort to put it in. I'd just put my money in Treasury bi11s. Now, that al-one should be enough incentive to sdy, Yeah, I don't think these fees are a good idea. They really wil-I kil-I jobs and kil1 people like me from putting panels on their properties, both I have a home, a vacation 491 83701 1 2 3 4 tr 6 1 B 9 10 11 t2 13 14 15 16 77 18 1,9 20 21_ 22 23 24 25 HEDRICK COURT REPORTING P. O. BOX 578, BOTSE, rD ORIEN Public home, and f have two rental properties. But there's something I think thatrs even more important and concerning to me is that these fees seem, to me I'm not a power expert, I've never worked for Idaho Power or really done much j-n terms of investigating it but they seem a Iittle bit arbitrary, because if I were to taker sdyr that same money and put it into better insulation, maybe improved take off a roof and put on a roof and stuff and then reduce my power bill by 50 percent that wdy, Idaho Power woul-dn't be charging me to do that, would they? So it seems l-ike they're kind of focused on just this method of saving power, and that seems to be, again, arbitrary. And it concerns me because in the future then if I were to j-nstall this, would we have some arbitrary and capricious rate hikes in the future that are targeted at me because I choose to do it this way? So it concerns me, as a buslnessman, that I don't think I'd want to put my money out there. So I do appreciate your ti-me. I think there's only one and I've already mentioned 1n my written comments so I won't reiterate them, but I think there's a l-ot of jobs at stake too for people that woul-d be servicing my homes to put on panels, and thls I think will have an impact on them. I think it wil-l hurt that industry. So, again, I think there j-s just one good choice for our economy in Idaho, and Southwest Idaho especially where 498 83701 1 2 3 4 q 6 7 8 9 10 11 t2 13 74 15 16 L't 18 1,9 20 2L 22 23 24 25 HEDRICK COURT REPORTING P. O. BOX 578, BOTSE, ID 83701 therers a lot more sun, and also just for energy choice for people like myself, and that is to relect the fees and flnd some win-win maybe that would be good for both fdaho Power and consumers to make home solar a real1y good thing. Thank you very much. COMMISSIONER SMITH: Thank you for your comments. Letrs see if there are questions. No questions. Thank you very much. V[e appreciate your time. (The witness l-eft the stand.) COMMfSSIONER SMITH: Kenneth,.Jensen. KENNETH JENSEN, appearing as a public wj-tness, being first duly sworn, was examined and testif ied as fol-1ows: EXAMINATION BY MR. KLEIN: 0. Hi. A. Hel1o. O. Could you please state your name and speI1 your l-ast name for the record? A. Kenneth Jensen, ,J-E-N-S-E-N. A. And what is your mailing address? 499 .JENSEN PubIic A. 2436 Eleventh Avenue East, Vale, Oregon, 979L8. 0. Are you an Idaho Power customer? A. Yes, $100r 000-a-year customer. O. Have you previously submitted written comments or testimony in this case? A. Yes, I have. O. So if you have your statement, go ahead and make it and add new information. A. Yes. THE WITNESS: This, f'm here to come about from being at the workshop that was here in May. I am a large irrigator, produce farms, and f currently have a few pilot programs where I have sofar panels on the farm, and I had some questions about the program for irrigators. The net meteri-ng program is broke down in different categories, different rate structures: Some for residentlal, some for sma1l commercial, and there's irrigation class. And there's a number of concerns. Therers three actually three concerns that I have as well as the Oregon Irrigators Pumpers Association, Inc., that I am a board member of. It's a group that got together to irrigators that are -- we fight rate increases that come on irrigation, find out what we can do to reduce our demands, and so forth. So, I came to the workshop, I had some questions regarding to some of the limits specifically to the irri-gation program, and the 500 3 4 q 6 1 B 9 10 11_ 72 13 74 15 L6 t1 18 l9 20 2L 22 23 24 25 HEDRICK COURT REPORT]NG P. O. BOX 578, BOTSE, rD JENSEN PubIic83701 1 2 3 4 5 6 7 B 9 10 11 t2 13 t4 15 1,6 L1 18 1,9 20 2t 22 23 24 25 HEDRICK COURT REPORTING P. O. BOX 5'78, BOTSE, rD JENSEN Publ-ic Commj-ssion here sugqested that I write these down, so I got together with the Irrigation Pumpers Association and we came up with three reconrmendations that we have on this net metering program. The first concern that we have has to do with the change that Idaho Power is proposing to have a yearly cycle to December 31. With an lrrigation season, putting sol-ar panels in irrigation pump, when the irrigation season is over we don't use any power during the winter, and December 31 deadline, w€ woul-d lose al-1 our generation in October, November, December, so that will be a huge l-oss. So if there is going to be an arbj-trary date cycle, each irrigator needs to be able to pick that date. COMMISSIONER SMITH: And were you aware that the Company actually made that proposal, that each customer pick their own 12 months? THE WITNESS: No, I had not I had not seen that update. COMMISSIONER SMITH: Yeah, they I think fil-ed that with their rebuttal. MS. NORDSTROM: Correct. THE WITNESS: Okay. I hadn't read the rebuttal-s. I read some of the other arguments, but I hadn't read that. So, okay, that's good to hear. AIso, if there is a yearly date, because of 501 83701 1 2 3 4 q 6 1 9 10 11 t2 13 L4 15 t6 77 18 19 20 2t 22 23 24 25 HEDRICK COURT REPORTING P. O. BOX 578, BOTSE, rD .]ENSEN Public irrigation l-oads, depending upon the year sometimes we have wet years, sometimes we have dry years,' three years ago we had extremefy wet year, we didn't turn our pumps on until- June, this year they were on in March our l-oads vary. So trying to size a solar system to match that at three years, being abl,e to carry excess generatj-on j-f we do have a wet year for the three years would all-ow for if there is a hot, dry year, to be able to use our own energy back up without losing that. So just a yearly cycIe, there's quite a bit of variability in irrigation loads. The second concern we have is not actually a part of the proposal of Idaho Power to change, it's part of their original net metering program where there's a 100 ki1owatt limit. One hundred kilowatts seems l-ike a Iot, but 100 kil-owatt solar array will only generate enough power to run one 4O-horsepower irrigation motor for the irrigatj-on season. A lot of farmers have 100 horse, 400 horse, 500 horse motors that they're needing a bigger system. They're needing half megawatt systems, one megawatts systems if they wj-sh to even get close to producing a substantial share of their power. So, the Oregon Irrigation Pumpers Association is suggesting that there be no l-imit other than the fact that the threat of losing excess generation on a three-year cycle would be the threat to not put in an oversj-zed system. When I was here at the hearing, I asked 502 83701 6 1 1 2 3 4 5 I 9 10 11 t2 13 I4 15 1,6 1,1 18 1,9 20 2! 22 23 24 25 HEDRICK COURT REPORTING P. O. BOX 578, BOTSE, rD JENSEN PubIic Scott Gates Scott Gates from Idaho Power, net metering 9uy, said that l-00 k was just kind of an arbitrary number. ff we need an arbitrary number, why not a megawatt? That's a nice, simple number too. So, you know, thatrs in l-ine with a 1ot of irrigation pumpers. And the other one is the second meter required. Having to have a generation meter as wel-l- as a usage meter for the irrigator if he wants to do net metering adds cost to everybody. If we're putting a system in, you have to pay the cost of instal-l-ing a second meter. You're going to get a second meter monthly charge. Idaho Power has to deal- with a second meter, they have to provide that. And the worst problem is the bi1ling. They only have to take and do additlon and subtraction. You'd think that'd be pretty simple. I currently have several- two-meter solar systems out there, and I think I get four or five errors a year where I have to sj-t on the phone and figure out the problem. lt woul-d be a l-ot simpler if it's one meter. So by having two meters sometimes it miqht require additional wire and distances being done if the pump is not exactly right at the meter. Sometimes you want to put the sol-ar panels where the pump is so you reduce transmission losses. If you required a second meter, you'd have to string another who1e set of cables, which is often quarter mil-e or hal-f a mil-e or so forth. So by having one meter, you coul-d 503 83701 1 2 3 4 5 6 1 I 9 10 11 L2 13 t4 15 L6 t7 1B 79 20 2I 22 23 24 25 HEDRICK COURT P. O. BOX 578, REPORTING BOTSE, rD .JENSEN Publ1c eliminate some costs of wire as wel-I as some transmission losses internally to the farmer. So, that's al-l- the comments that I have. There's a lot of us farmers out here who woul-d l-ike to be more sustainable, produce more of our power, reduce our carbon footprint, and provide food for everybody, so werd -- and the economics are there that we can start to put solar up. We have the l-and to be abl-e to do that. The corners, dead ground that' s not being used, sol-ar panels would f it nj-cely on it. And that's my testimony. COMMISSIONER SMITH: And we thank you very much, Mr. Jensen AUDIENCE MEMBERS: (Applause. ) COMMISSIONER SMITH: -- for your thoughtful comments and for coordj-nating with your colJ-eagues in order to give us these suggestions. THE WITNESS: I have a written copy, if the Commj-ssioners would like a written copy. COMMISSIONER SMfTH: That would be perfect, if you give it to the court reporter. I guess I neglected to mention at the beginning that we have a court reporter here, because we have a transcript and our Decj-sion must be based upon the record that is created through our hearing process in case the Supreme Court has to review it. 504 83701 1 2 3 4 5 6 7 B 9 10 11 1,2 13 !4 15 t6 t7 18 19 20 2L 22 23 24 25 HEDRICK COURT REPORTING P . O. BOX 5'18 , BOTSE, rD ROBISON Publ-ic Anyway, thank you very much for your time. THE WITNESS: Thank you. (The witness l-eft the stand.) COMMISSIONER SMITH: Bill- Roberson (phonetic). BILL ROBISON, appearing as a public witness, being first duly sworn, was examined and testif ied as fol-l-ows: COMMISSIONER SMITH: Robison. THE WITNESS: Yes, thank you. Very wel-l-. Not ttRobinson. tt EXAMINAT]ON BY MR. KLEIN: O. Woul-d you please state your name and spe1I your last name for the record? A. Bill Robison, R-O-B-I-S-O-N. O. What is your mailing address? A. 2165 Springwood Drive, Meridian. O. Are you an Idaho Power customer? A. f am. O. Have you previously submitted written testimony or comments in this case? 505 83701 1 2 3 4 5 6 7 B 9 10 11 t2 13 t4 15 t6 t7 18 l9 20 27 22 23 24 25 HEDRICK COURT REPORT]NG P. O. BOX 578, BOTSE, rD A. I have. a. So if you wil-l- go ahead and make your statement, Iimiting it to new informati-on, that would be great. A. Okay. Thank you. THE WITNESS: First of all, f want to thank you for hearing us today, and I appreciate al-l of the work that you do on Idahors behalf. My testimony comes after I already submitted comments and I wil-l- not cross over on those. I have been j-nterested in PV as a regeneratj-ve means for many years, and so three years ago when we had -- when the time seemed right because of pricing of some components, we instal-Ied 10.8 ki1owatt system consisting of 48 sol-ar panels on our home's south-facj-ng roof structures. We did this to generate electrical- power to provide and to provide some shade, both of which reduce our electrical needs from fdaho Power Company. We have always tried to control and reduce our Idaho Power electrical- bills as much as we can by using avail-abIe means such as insulation, more efficient appJ-iances, as well- as heat pumps and so forth. Our home is an all-electric home, incidentally. We became involved with net metering as another tool to control costs, and by doing so we invested 36,000 over $36,000 that's a net cost lnto fdaho's el-ectrical system. Our investment has successfully reduced our yearly average Idaho Power el-ectrical- consumption 506 ROBISON Public83701 1 2 3 4 5 6 1 B 9 10 11 L2 13 t4 15 76 1,1 1B 19 20 21 22 23 24 25 HEDRICK COURT REPORTING P. O. BOX 5'7I , BOTSE, rD ROB]SON Public from something over 20,000 kilowatt hours to about 5,000 kilowatt hours based on averages from the past three years. Our yearly production of something on the order of 161 000 kilowatt hours results in credits worth approximately $1,100. The new proposal would cost, according to the estimate from Idaho Power, approximately $339, and that $339 compared to the 7,L49 credit that we get is a significant loss of control-. So, we now have significant control over our power costs but it takes a lot of years to recoup that investment, and I think that some of the times for investment and problems therein have been mentioned. Under my -- Idaho or r the proposal -- my original investment estimated about a 15-year break-even point; and with the new proposal, that time would probably stretch in around 20 years. For somebody that's in the retlrement part of the senior citizen group and there are others of us here in the audience here tonight, the same situatlon we need a better opportunity to recoup that investment rather than IPC- IPC-E-72-21. So, we have a net metering tool, it is a good too1, and we thank both Idaho Power and the PUC for making that available,'but we need your help to improve it, not to diminish it for our use, and we need that heJ-p to use it to pay for our investment. And something on the order of Mr. Burkholder mentioned that I would just throw out as a possibility was 507 83701 somethj-ng like a bonus for peak demand wou1d he1p, and that's again allaying the cost that Idaho Power has to pay for that summertime energy is when we're developing at our peak. Thank you f or your t j-me. COMMISSIONER SMITH: Thank you very much. Let's see if there are questions. COMMISSIONER REDEORD: No. COMMISSIONER SMITH: Thank you. THE WITNESS: You're welcome. (The wi-tness l-eft the stand.) COMMISSIONER SMITH: Barbara Loeding. BARBARA LOEDING, appearing as a public witness, being fj-rst duly sworn, was examlned and testif ied as fol-l-ows: EXAM]NAT]ON BY MR. KLEIN: a. Good evening. A. Good evening. O. Wou1d you please state your name and speII your last name for the record? A. Sure. Barbara Loeding, L-O-E-D-I-N-G. O. What is your mailing address? 508 2 3 4 5 6 1 B 9 10 11 L2 13 t4 15 !6 !7 1B L9 20 2t 22 23 24 25 HEDRICK COURT REPORT]NG P. O. BOX 578, BOTSE, rD LOEDING Publ-ic83701 1 2 3 4 5 6 1 B 9 10 11 72 13 74 15 t6 L1 1B 1,9 20 2! 22 23 24 25 HEDRTCK COURT REPORTING P. O. BOX 578, BOTSE, rD LOEDING Public A. 10640 Col-umbia Road in Bolse. O. Are you an Idaho Power customer? A. My husband is, so I guess I am. I just recently got married, so O. Have you previously submitted testimony or comments in this case? A. No, f havenft. O. Please go ahead and make your statement. A. Okay. THE WITNESS: I only recently heard about the hearing last nightr so I apologJ-ze, I haven't had as much tlme to immerse myself in the Web sj-te and the documents as others, but I knew that I had to come to the hearing today and to Ij-sten and learn and share my views, because I speak as a potential net metering customer for Idaho. Being from Fl-orida, somehow I recently married one of your f inest f rom Boise. And my son and I have a smal-l- aquaponics farm in Fl-orlda where I put a solar PV system on that farm because I care deeply about the environment and f'm trying to be a good steward, as other people have mentioned. I applied for a grant from the USDA to help run our farm using a 6.4 kilowatt system, and they awarded us the very fj-rst USDA grant f or a sol-ar system in El-orj-da. We're part of the Mill-ion -- Mill-ion Sol-ar Roof j-nitiative. And we have a good net metering agreement where we get ful1 retail- value and none 509 83701 1 2 3 4 5 6 7 B 9 10 11 72 13 74 15 1,6 77 1B 79 20 2t 22 23 24 25 HEDRICK COURT REPORTING P. O. BOX 578, BOTSE, rD LOEDING Public of these fees that peopJ-e are talking about; although we do have to give our credits back at the end of the year if we generate more than we use, but that doesn't happen in our case because we our system supplies about a third of our energy needs. So, naturally, now that I'm l-iving here in Idaho, I brought that phllosophy with me. I wanted to add sol-ar to our house in Boise to reduce our carbon footprint and be part of the solution, but I have to say that after listening very intently today, I'm reafly not at afl sure that I wil-l- proceed unless the Commission denies some of those onerous proposals that I've heard about. The gentleman from Idaho Power kept saying that the proposals were not meant to discourage renewable energy production, but it doesn't seem, to me I agree with some of the other speakers: It doesn't seem, to me, that it would be a good return on my lnvestment here j-n Idaho. And I wanted to share a quote before I closed from my faith: The betterment of the world can be the betterment of the worl-d is due to pure and goodly deeds, commendable and seemingly conduct. So, I urge you, as trustees of our public utilities, to act in a pure and objective and commendabl-e wdy, and protect the rights of the homeowners to choose these alternatJ-ve ways to generate el-ectricity to be part of the 510 83701 1 2 3 4 5 6 7 8 9 10 11 L2 13 !4 15 1,6 1,7 18 19 20 21 22 23 24 25 HEDRICK COURT REPORTING P. O. BOX 518, BOTSE, rD LOEDING Public sol-utj-on, and act in a way that encourages the increase of those renewable power sources. These proposals did not seem neutra] to me. Thank you very much. COMMISSIONER SMITH: Thank you, and I appreciate hearing of your Fl-orida experience. fs there any questions? THE WITNESS: Oh, can I add one more teeny point? COMMISSIONER SMITH: Certainly. THE WITNESS: I was listening to one of the people that said that Idaho Power coufdn't seem to figure out a way to do time of use with the net metering. Florida has figured that out, so maybe Idaho Power could talk to Florida. COMMISSIONER SMITH: f've been you know, I've been doing utility work since 1981, and it's been my experience over these years that utility billing systems are rarely capable of doing what you reaI1y want them to. Anyway, it's an ongoing problem. Thank you for your comments. THE WITNESS: Thank you. (The witness left the stand. ) COMMISSIONER SMITH: We have Mike Medberry who will- testify here, and then we'll go to the people on the telephone. Mike I think I'm saying it correctly -- 511 83701 1 2 3 4 5 6 7 B 9 10 11 t2 13 t4 15 t6 L1 18 L9 20 2t 22 23 24 25 HEDRICK COURT P. O. BOX 518, REPORTING BOTSE, rD MEDBERRY Publ-ic Medberry? MR. MEDBERRY: Yeah. COMMISSIONER SMITH: Thank you. MIKE MEDBERRY, appeari-ng as a public witness, being first duly sworn, was examined and testif ied as fol-lows: EXAM]NATION BY MR. KLEIN: O. Hi. Can you please state your name and spe1l your last name for the record? A. ft's Mike Medberry, M-E-D-B-E-R-R-Y. O. And what is your mailing address? A. It's 2209 Heron Street in Boise. O. And are you an Idaho Power customer? A. I guess I am, yes. O. Have you previously submitted written comments or testimony in this case? A. Irm embarrassed, but I haven't. O. Please go ahead and make your statement. A. Thank you. THE WITNESS: Thank you, Commissioners, for the opportunity to comment on Idaho Power's proposed modification 5L2 83701 1 2 3 4 5 6 7 B 9 10 11 t2 13 1,4 15 76 1_7 18 19 20 2l 22 23 24 25 HEDRICK COURT REPORTING P. O. BOX 518, BOTSE, rD MEDBERRYPublic to the net metering service I have installed roughly 650 ki-l-owatts of solar electric panels in New Mexj-co, CaLifornia, and Idaho; built and sold three passive sol-ar homes; and have seen the price of electric panels drop to about $f per watt. The projected decrease in the price of sol-ar el-ectric panels is absolutely mind-boggling. I had a smal-l sol-ar busj-ness for five years in McCal-l- at which I designed systems, purchased supplj-es, hired el-ectriclans and plumbers, install-ed and maintained sofar thermal and electric systems. I was a member of the Office of Energy Resources task force, which wrote a legi-slative report on renewabl-e energy. And f went out of buslness l-ast year, but I still- retaln my business and I hope that sometime it wil-I again be vj-able and I will have a prof itabl-e business. I think the key to operatj-ng a viable sol-ar business is the price of electricity, and in Idaho it remains pretty low. So1ar water heating is now viabl-e with a roughly five year. Solar el-ectrj-c is not reaIIy currently economically vj-able in Idaho, but in California and elsewhere it is closer, where the price of electricity is much higher and there are substantial subsidies. In Idaho, solar energy reaI1y is part of the sol-ution,' however however, excuse me, there are many complex factors in raising the viabil-ity of solar electric systems: Number one, as I sald, is the price of 513 83701 1 2 3 4 trJ 6 7 B 9 10 11 t2 13 74 15 76 71 18 19 20 2t 22 23 24 25 HEDRICK COURT REPORT]NG P. O. BOX 578, BOTSE, rD MEDBERRY Public electricity, which is sure to rise. Second is the price of panels, inverters, and rel-ated equipment. Favorabl-e trade with China and other countries has made it certain that we will continue to have significant competition from overseas producers. The Internet is a great equalizer, but should we tax all the products purchased there? Probably, as I would hope domestic businesses survive. Third is the way 1n which the util-ities deal with electricity: Are they hostil-e or supportive on renewabl-e energy? fs PURPA going to be challenged and al-I subsidies cut? Probably not. Fourth is the price of labor and the quality of material-s, things like can one person instal-l- ten 200-watt panels in one day with one helper. That really is a key thing that I have to work on. How many people are going to going to have to be there to install the panels. Here tonight we are only dealj-ng with one variable: The policies of Idaho Power Company. IPC has been nibbling like a swarm of piranhas in dealing with my ability to operate economically. Idaho Power Company has proposed to add costs here and there, hither and yon, bit by bit by bit, to make my business more expensive and theirs more profitable. True, this is only one piece of business survlval, but it is on the vanj-shing edge, on the increment of continuj-ng to operate. 514 83701 1 ) 3 4 5 6 1 B 9 10 11 72 13 l4 15 t6 !7 1B L9 20 2t 22 23 24 25 HEDRICK COURT P. O. BOX 518, REPORTING BOISE, ID MEDBERRY Public But I guess they have their corporate reasons for making this process. What Idaho Power Company says and what the effects of these proposals may be may seem a l-ittle like incidental- costs, but they wil-l- cause more consternatj-on than good. It wil-l only take a smal-l- amount of costs to crush an industry. The Public Utilities Commission and their Staff response is better than the IPC proposal. Gj-ven the uncertaln outcome of the prices paj-d by IPC for power generated by the sun, the regulatory climate in Idaho and please note that Hoku, the company that was selling sllicon in Pocatello, has just gone be11y up and the competition in buying materials and labor, given these things, why would anyone want to come to fdaho to util-ize the sun? I ask the Commission to please gi-ve me some certainty about what 1s going to happen. This is a great sunny cl-imate. Perhaps we should be content burning coal and running dams, but I think not. And you can imagine why we shoul-dnrt. I hope that we will contj-nue to foster sofar bus j-nesses and do it with unrelent j-ng fairness. Without a supportive PUC on the side of people who have no other voi-ce, a1l- that sunshine wiLl do us is give us a suntan. That's a nice thing, but please give us your support. Thank you. COMMISSIONER SMITH: Okay, thank you. Let's see if there are quest j-ons. 515 83701 1 2 3 4 5 6 1 I 9 10 11 L2 13 1,4 15 t6 t7 1B t9 20 2L 22 23 24 25 HEDRICK COURT REPORTING P. O. BOX 5'78, BOTSE, rD BUELL Public No questions. Thank you very much for your comments. (The witness l-eft the stand.) COMMISSIONER SMITH: We'l-f now turn to those wishing to testify who are on the telephone, Mr. Eadness. MR. GENE FADNESS: Thank you, Commissioner. We have four people in l-ine to testify. There are several others on the participant 1ist, and I woul-d just remind them that if they want to get in the line to testify, to press star one on your telephone. So we'11- take the first one now. RECORDED VOICE: Participant line unmuted. DOUG BUELL, appearing telephonj-ca11y as a public witness, was examined and testi-f ied as f ollows: THE WITNESS: Okay, my name is Doug Buell-. I live in Jerome, Idaho, 418 West 215 South. COMMISSIONER SMITH: And, Dougr we need you to spe1l your l-ast name, please. THE WITNESS: Sure. It's B for boy, U for unj-form, E for elephant, L-L two Ls. 516 83701 1 2 3 4 5 6 7 I 9 10 11 72 13 L4 15 16 t7 18 19 20 21 22 23 24 25 HEDRICK COURT REPORTTNG P. O. BOX 578, BOTSE, rD BUELL Publ-ic EXAM]NATION BY MR. KLEIN: O. And this is Karl Klein, the attorney for the Commissi-on Staff. Are you an Idaho Power customer? A. I am. O. And have you previously submitted a written comment or testimony in this case? A. No, I have not. O. Okay. Go ahead, make your statement. A. First of all-, I'd like to thank everybody for the time O. Pardon me. Could you restate your address? A. 418 West 275 South, Jerome J-E-R-O-M-E fdaho. O. Thank you. THE WITNESS: I'd like to thank the Commission for having this evening meeting. I have been out of state during this process, so I apologj-ze for not submitting written comments. I got home about six o'clock this mornj-ng and have spent my day trying to sift through the hundreds of pages of documents to try and make sense of this. So, bear with me if I'm not as prepared as I would like to be. My wife and I purchased our home here in Jerome in the fall of 2009 it was a foreclosure and at that 517 83701 1 2 3 4 5 6 '7 B 9 10 11 t2 13 L4 15 1,6 l1 1B L9 20 2L 22 23 24 25 HEDRICK COURT REPORTING P. O. BOX 518, BOTSE, rD BUELL Publ-ic time, Idaho Power did not have any records of the electric bills for this home because it had not been occupied for two years. So, w€ don't normally make buying decisj-ons like that, that's not our business modus operandir so we were goj-ng in a little bit blind. We had never owned a home before that was al-l- el-ectric heat wj-th no access to natural 9ds, so we were a littl-e bit bowled over when we had our first chil-d in late October and keeping the house a littIe warmer for an infant, our bill that January and February came j-n at $550. We do not own a large house and we were putting my wife through nursing school at the timer so that bill was pretty crippling for us and certainly got our attention. My career history is f worked for water departments both as a supervisor and consultant project manager. We currentl-y have excuse me as I jump around here a little bit we have ten sol-ar panels on our rooftop now. We spent a great deal- of time. The market was not doing that wel-I, so we took some of our investment money and put into new windows, window coverings, we have a solar panel array, insul-ation. And f think what bothers me about Idaho Power's current proposal is Idaho Power has no problem writing partial checks for easy upgrades, both for residential for peop1e who want to put more insul-ation in a roof. They wil-l- pay them -- I believe, and I may be wrong on this -- but at the time it 518 83701 1 2 3 4 5 6 7 B 9 10 11 72 13 T4 15 76 71 1B 19 20 2t 22 23 24 25 HEDRICK COURT REPORTING P. O. BOX 578, BOTSE, rD BUELL Public seemed like 30 cents a square foot to insulate their roof. Or there was another easy upgrade for a newer furnace system, things l-ike that. So they will pay for those programs, but those of us that have spent big money in sol-ar array systems with no help are now bej-ng asked to pay more. I am not really a subscriber to the whole environmental- movement, but f am a subscri-ber to sound business. And the gentleman that testified earlier about his payback, when I ran my payback under Idaho Powerrs new proposals, I don't have as many panels as he was talking about, I donrt have as many homes or as many power bills, so my payback was actually going to be 1ower, about . B percent over ten years. So I have taken a big risk with Idaho Power and now the rules are changing, and it feels kind of like a gotcha game. You know, I've been to severa1 public events where Scott Gates, the net metering fdaho representative, has come and provi-ded a trail-er that Idaho Power has put together with a sofar panel array and a demonstration on how solar works, and then they usually provide the el-ectrj-city to power up the PA system -- the public address system. And so in one hand, they're out there al-most promoting sol-ar and encouraging people to go sofar with their demonstration at these public functions; but on the other hand, it feels like they're gouging us. As a project manager for some of these cj-ties, I 519 83701 1 2 3 4 5 6 1 U 9 10 11 t2 13 74 15 1,6 71 18 19 20 2t 22 23 24 25 HEDR]CK COURT REPORTING P. O. BOX 578, BOTSE, rD BUELL Publ-ic have worked with Idaho Power. Idaho Power's paid 70 percent of the cost of easy upgrades for lighting, for things like that, that on the other hand we're expected to pay. It just seems like, bej-ng a project manager and having worked with Idaho Power on public right-of-way projects where we were working with water, sewer, and electricity, f've seen Idaho Power waste more than $100,000 even in a residential area, where here they're trying to get 83 to $1001000 out of a few solar panel customers, it just it seems l-ike there's a lot of other areas where Idaho Power coul-d address 1n their daily operatJ-ons. And going back to f was reading in the report and I apologize, I was not able to open the rebutta1 today online on PUC's Web slte. f was abl-e to open all of the other documents but not the rebuttal. But as far as the distribution system, when we do a rate study for a water department, one of the things the water department and the entire rate base and the heating is fire suppression water. Water departments have to put in these massive fire pumps, all of the distribution lj-nes, usually separate distribution l-ines for big businesses and things l-ike that. There's no fear of cost recovery for water departments. And when I compare a public utility such as a water department that I have spent several years consul-tj-ng with to the operations of Idaho Power, many of our water companies in Idaho 520 83701 1 2 3 4 5 6 1 I 9 10 11 l2 13 t4 15 1,6 71 1B 19 20 2t 22 23 24 25 HEDRICK COURT REPORTING P. O. BOX 5lB, BOTSE, rD BUELL PubIic are driving ten- and 15- and 2O-year o1d pickups, and Idaho Power is runnJ-ng around in new pickups. There lust seems to be a big difference between Idaho Power and some of the other smal-I, publicly-owned utilities as far as operation. And to be ni-ckel--and-diming 1j-ttIe solar people, I mean, my total array j-s a two ki-l-owatt system; it's not very biq. At this point, I don't have a credit, but in the future we have -- we're planning on buildi-ng a garage and we've already spent money with an architect to maximize the layout of the roofline for future solar panels. We put that entire project on hold because we don't the instability We have a monopoly that the PUC control-s but they get to change the rules midstream on us, and it totally changes our investment future. And if this is something Idaho Power really thinks they need to do, I think there needs to be a lot longer ti-me frame, a lot longer l-ook into the future on Idaho Power's part as to a plan on how to give us enough time to adj ust . Things l-ike this, a l-ot of us, this was our l-ife savings to cut down on our bilI, because it was either pay the power bill and not have my wife go to school-, or do something drastic to keep her in school-. And so for us, this wasn't spare money. V[e had to do something. We don't have natural gas. We don't have an alternati-ve energy source as far as putting the furnace on natural 9as, putting the heat system on 521 83701 1 2 3 4 5 6 7 8 9 10 11 t2 13 l4 15 L6 1,1 18 L9 20 27 22 23 24 25 HEDRICK COURT REPORTTNG P. O. BOX 578, BOTSE, rD BUELL Public natural gas. We're tied to the monopoly of Idaho Power whether we want to or not and our only option is to sell- the house and go to something else, and that's not somethi-ng that a lot of people can do, especially in thls economy. So when you compare I guess my point is compared to the easy upgrade system, I don't understand what Idaho Power's philosophy is. Everytime f've talked to Idaho Power they justify the easy upgrade system by saying, WelI, if we save this much power across the across the grid, that we don't have to buil-d an additional power plant and so it saves us a hundred billion dol-Iars. And I quote I've heard that quote from several- of Idaho Power employees that it saves us building a $100 bil-lion power plant. Wel-l-, rf it saves you a $100 bil-l-lon power plant and they can afford upgrades both on commercial- and residential- but they can't afford to keep 83 to $100,000 on something that they haven't had to pay for, I am confused. COMMISSIONER SMITH: Thank you, Mister THE WITNESS: I have one other COMMISSIONER SMITH: Okay. THE WITNESS: f was going to comment on the you know what? I'm not in the market to try and make money off of Idaho Power, that's not my purpose, so I'm okay with the credit. I'm not interested in a check, but I am interested in having some control over controfl-ing my bil-ls, and this is 522 83701 1 2 3 4 5 6 7 I 9 10 11 72 13 L4 15 !6 t7 1B 19 20 2L 22 23 24 25 one. 523 HEDRICK COURT REPORTING P. O. BOX 578, BOTSE, rD BUELL PubIic83701 1 2 3 4 5 6 7 I 9 10 11 L2 13 T4 15 t6 71 18 1,9 20 2t 22 23 24 25 HEDRICK COURT REPORTING P. O. BOX 518, BOTSE, rD REYNOLDS Publ-ic of those ways that I get to control it with a little bit of investment; but the way theyrre changing the ru1es, I will not be able to afford to add any more solar. COMMISSIONER SMITH: Okay. Thank you, Mr. Buell-. Let's see if there are any questi-ons for you. Do we have any questions? Nor w€ don't. I apprecj-ate your thoughtful comments and participating tonight. Thank you. (The witness was excused. ) RECORDED VOICE: Participant l-ine unmuted. MS. REYNOLDS: Al-l- right. Can you hear me? COMMf SSIONER SMITH: Yes. Mr. Kl-ej-n will ask you a few questions to get you started. LAURA REYNOLDS, appearing telephonically as a publi-c witness, was examined and testified as follows: BY MR. KLEIN: O. Hi. Would you please state your name and spel1 your last name for the record? A. Hi. My name is Laura Reynolds, and the l-ast name is R-E-Y-N-O-L-D-S. O. What is your mailing address? A. Rural- Route 2, Box 83C, Pocatello, Idaho, 83- 524 83701 1 2 3 4 5 6 7 B 9 10 11 t2 13 14 15 16 L1 1B l9 20 2t 22 23 24 25 HEDRICK COURT REPORTTNG P. O. BOX 5'18 , BOTSE, rD REYNOLDS Public O. Are you an Idaho Power customer? A. Yes, f am. A. And have you previously submitted wrj-tten testimony or comments in this case? A. No. O. Please go ahead and make your statement. THE WITNESS: I recently bought a new car.f t's a Chevy Volt. Itrs a wonderful car I and we love it. And we built a little nest for it in the garage where it can suck up its power, but we would l-ike to put up a photovol-taic system on our farm so that we can make power to power up the car. Anyway, just this very day, thls very afternoon, f was out mowing the grass 1n the place where the "you dig" guys are going to come so we can determine where to put the poles for this solar power array, and we're quite excited about putting this system together, but obviousl-y we are very concerned about the Decision that the Utility Commissj-on is going to make. The up side of this system is that we're expecting this photovoltaic system will mitigate for the power that the car is taking. This is a new kind of power use for electricity, it's, you know, previously been taken by oi1 and 9ds, so making transportation fuel out of electricity is a new use. But if we didn't have net metering and we tried to charge up our car with the sol-ar panels, that wou1dn't work very well- because the car is at work j-n the daytime. It's parked in the 525 83701 1 2 3 5 6 1 I 9 10 11 L2 13 74 15 t5 L7 1B 19 20 2t 22 23 24 25 HEDRICK COURT P. O. BOX 5'7 B , REPORTING BOISE, ID REYNOLDS Publ-i-c garage at night when it needs its power. So our plan is to put up panels. The panels will- feed into the grid, and we would want to charge our car, we'l-l- get the power out of it. Anyway, we're very excited about this, but you can i-magine the chilling effect of the change in the ruIes. Pretty soon j-t's bye-bye Mr. Sol-ar Panel Installer, we're not going to use your services after al-l-. And, you know, I want to polnt out the up side is if the rul-es are beneficial to photovol-taic customers, it creates a vibrant economy of 1ts own. It creates jobs j-n terms of install-ing panels, making systems, even research and deveJ-opment on new systems, and even a data pool of how wel-l these type of systems are working at various points around the state. So it's a it's a reaIly beneficial, positive type of economy. But to take that away, thatrs a chilling effect to say that we just have to take what kind of power we can get and just suck it up and do what we are to1d. That's a very negative approach to take. So I just wanted to point that out, and I think I'm done now. COMMISSIONER SMITH: We appreclate your comments, Mrs. Reynolds. Let's see if there are any questions for you. COMMISSIONER KJELLANDER: NO. COMMISSIONER SMITH: No. None from here. And I wish you l-uck and enjoy your new car. 526 83701 1 2 3 4 5 6 7 I 9 10 11 1,2 13 74 15 t6 77 18 19 20 27 22 23 24 25 HEDRICK COURT P. O. BOX 578, REPORTING BOTSE, rD EITZSIMMONSPublic THE WITNESS: Thank you. (The witness was excused. ) RECORDED VOICE: Participant l-ine unmuted. MR. FITZSIMMONS: Hel1o. COMMISSIONER SMITH: Yes. We have -- Mr. K1ein will ask you a few questions to get you started. MR. FITZSIMMONS: Okay. PETER EITZSIMMONS, appearing telephonically as a public witness, was examined and testif ied as fol-l-ows: EXAMINATTON BY MR. KLEIN: O. Would you please state your name and spel1 your last name for the record? A. Peter Fitzsimmons, F-I-T-Z-S-I-M-M-O-N-S. O. What's your mailing address? A. 21,00 Northeast Wapiti Lane, Mountain Home, fdaho, 83647 . Wapiti is W-A-P-I-T-I. Wapiti Lane. O. Are you an Idaho Power customer? A. I am. O. And have you previously submitted written comments or testimony in this case? 521 83701 1 2 3 4 5 6 7 I 9 10 11 L2 13 1,4 15 1,6 L7 18 t9 20 2L 22 23 24 25 HEDRICK COURT REPORTING P. O. BOX 578, BOTSE, rD F]TZSIMMONS PubLic A. f have not. O. Please go ahead and make your statement. A. Okay. THE WITNESS: I just wanted to thank the Commj-ssioners for the opportunity to speak tonight, especially it's very convenient to be able to just call in for this. We built our house out here in about 2007, being very conscious about trying to save energy as best we can. Designed it j-nto the higher insul-ation standards, put the investment in for a geothermal heat pump. Tn effect, it is a 100 percent el-ectric house, knowing that further down the road we were going to do some addj-tional- things to help us out as far as being energy conscious for this. What we did, we put in one of these smal-l- wind turbj-nes, and then followed that up with a l-lttl-e over four kilowatts worth of dual- tracking sol-ar arrays which actually take care of the bul-k of our energy. Over the course of the last yearr we managed to manufacture or whatever you want to cal-l it approximately 75 to B0 percent of our total- usage for the year from renewabfe sources. I want to thank Idaho Power for the way the net metering program has been structured up to this point. A couple of the people have mentioned Scott Gates. Scott Gates was exceptional throughout all- of the instal-Is we did, so a big thank you to him. Eor our own purposesr w€ dj-dn't really do this 528 83701 1 2 3 4 5 6 7 I 9 10 11 1,2 13 L4 15 76 t7 1B t9 20 21 22 23 24 25 HEDRICK COURTP. O. BOX 5781 REPORTING BOTSE, rD EITZSIMMONS PubIic obviously, we understand that energy here in Idaho is probably one of the l-east expensive places across the United Statesr so from the fiscal- payback, that wasn't rea11y the point. I w1l-l- l-eave the climate debate to the folks that are much more wel,l- versed in that than f am. We reaIly only looked at it more from the energy security standpoint. The less we're using renewabl-e energy that we are paying for from governments that may not be ones that we really want to be friends with, the less we pay them, the more we keep Ioca11y, we thought we would be better off. f find it somewhat i-ronic if we track some of the news releases we've seen from Idaho Power over the last few months. We know that they just got a rate increase. We know that they are predicting l-ow f1ows, especially this yearr ds far as being abl-e to produce hydroelectric. I believe another recent news articl-e discussed some of the coal-fired power plants: They are paying to actually have coal--fired power plants that are actually out of state upgraded to meet standards. We note that the Gateway West transmission l-ine 1s under work to meet the future proposed energy demands of the region. Yet whil-e they're doing al-l of these same things, they seem to be wanting to penallze those of us that are actually trying to do the right thing on the l-ocal and the small-er scale. What is in effect happening here is with 529 83701 1 2 3 4 5 6 7 8 9 10 11 L2 13 l4 15 16 L'7 18 19 20 27 22 23 24 25 HEDRICK COURT REPORTING P. O. BOX 578, BOTSE, rD EITZSIMMONS Public Gateway West and some of the other types of things where we're trying to get energy to meet peak demand, j-n our case, our sol-ar is helping meet that peak demand because obvj-ousl-y the hottest part of the year is when it's providing most of its power. We are helping to power some of the houses just right next door to us. You know, I really doubt our excess power makes it more than one, two, three houses away. So instead of having to pu11 power from those coal--fired power plants, longer distances, long haulr w€ are actually provj-ding an efficiency here that allows them to not have to pull it over those long haul-s, and yet at the same tlme we are being penalized for that. As I discussed earlier, we produce about 15, B0 percent of our power throughout the year. The carryover won't affect us. For the other fofks, you know, I think it would go on that as aIl-owed carryover to continue. Whether they get paid out, we don't have a dog in that fight, ds they would say. So each one of those things that we see from Idaho Power seems to be in direct conflict with al-l- of our goals and what we're tryj-ng to do with renewable energy. And the l-ast point that I want to bring up, and we talked about another gentleman discussed some of the public rel-ations that Idaho Power has presented as far as renewable energy and varj-ous and sundry: Back when I first got the notification of the proposed changes to what they wanted to 530 83701 do with net metering agreements and such, probably wlthin two weeks of that, our next Idaho Power biII arrived. The Connecti-ons magazine is dated March 2013. If you l-ook in the front of that, the lead story happens to be Idaho Power marking a decade of solar for our schools, tel1ing us about the grants and the education that they provide for, you know, discussing within our school- system the benefits of solar power, renewable energy, each one of those types of things; while at the same time trying to penalize those of us that are trying to reach those goals. COMMISSIONER SMITH: So does that conclude your statement? THE WITNESS: That does. COMMISSIONER SMITH: Al-l- right. Let's see if there are any quest j-ons. COMMISSIONER REDEORD: No. COMMISSIONER SMITH: A11 right, and there are none, so we appreciate your participatj-on tonight. Thank you. THE VIITNESS: Okay, thank you. (The witness was excused. ) RECORDED VOICE: Participant line unmuted. 531 3 4 5 6 1 B 9 10 11 72 13 74 15 t6 L1 1B 19 20 27 22 23 24 25 HEDRICK COURT REPORTING P. O. BOX 578, BOTSE, rD FTTZSIMMONS Public83701 1 2 3 4 5 6 1 B 9 10 11 t2 13 74 15 L6 77 1B 19 20 2L 22 23 24 25 HEDRICK COURT REPORT]NG P. O. BOX 578, BOTSE, rD ROWNTREE Public WALTER ROWNTREE, appearing telephonically as a public witness, was examined and testif ied as fol-l-ows: THE WITNESS: Hi. My name is Wal-ter Rowntree, R-O-W-N-T-R-E-E. f live at Rural- Route 2, Box B3C, Pocatello, Idaho. I'm an Idaho Power Company customer both at home and my business, and I have not made any comments in this matter, wrj-tten or otherwi-se, prevj-ousIy. COMMISSIONER SMITH: Thank you, Mr. Rowntree. P1ease proceed. THE WITNESS: Wel-l, it looks like I get to be the l-ast commenter. That's got some reaf advantages, I get the last word, but some disadvantages too in that a lot of my comments were already made by previous people, including my wj-fe, who's sitting right next to me. COMMISSIONER SMITH: Mr. Rowntree, there are ten more people signed up herer sor oo, you're not 1ast. THE WITNESS: Oh, excellent. Okay. Well, I'l-L pretend it's the last word anyway. About a month ago, I attended a presentation in town here by Reed Burkhol-der where he described his net meteri-ng system at his resj-dence and how it works, and this was very exciting because f put pencil to paper and it looked like things pencj-1ed out real wel-l for my business. And I decj-ded 532 83701 1 2 3 4 5 6 1 B 9 10 11 L2 13 t4 15 1,6 L1 1B L9 20 27 22 23 24 25 HEDRICK COURT P. O. BOX 518, REPORTING BO]SE, ID ROWNTREE Publ-ic to put up 12,000 watts of photovol-taics out there, which would provide about 25 percent of the total- energy that my business uses. And then I looked into the matter a littl-e further and found out that the rules for net metering for residences and small- business were different than those for large commerciaf instal-lations, which I am one af, and when I put the pencil to the rules that apply to large commercj-aI, I found that it did not pencil out. It's a real- disappointment to me. So I decided to put some panels in at home so I cou1d take advantage of the residential- rules, and then when I looked into that a l-ittle more, I found out that Idaho Power Company had what it's requesting f rom the Commiss j-on rul-e changes that make residential and small business rules for net metering a l-ittl-e more l-ike the large commercj-al. And we have decided, although we're doing some preliminary work, we've decided to wait and see what the Publ-ic Utility Commlssion decides before we rea11y commit to actually putting the panels in or not. So this is a real-wor1d, real-time example of someone -- me who had decided to put in photovol-taics based on the oId rules but who will decj-de not to put those photovoltaics in if the new rul-es are adopted. The people at the PUC need to ask themselves is do we want to have rul-es in place and policies that encourage people to put in smal-I generation, or if they want to discourage people from putting 533 83701 1 2 3 4 5 6 '7 B 9 10 11 1,2 13 74 15 L6 L7 1B 19 20 27 22 23 24 25 HEDRICK COURT P. O. BOX 518, REPORTTNG BOISE, ID ROWNTREE Publ-ic in smal-l- generation. And I think if we l-ook at the big picture, the more smal-l generation that is put in p1ace, especially photovoltaics that produce the power during peak demand times, then the longer it will- put off the day when Idaho Power requests from the Publ-ic Utility Commj-ssion a new natural gas generation plant. And you can bet that when they decide that, based on peak demand, they need to build a new power plant, You can bet that they're going to be asking for a rate increase to cover those costs. So, you know, as fat as the help for what's best for the people of Idaho, it 1s clearly best to put off the day when they have to when they will request a new power p1ant. I'd l-ike to remind the Commi-ssion that not in my plans for the business and the house, not neither plan was to produce more power than we would use. We wil-l- def initely be above net zero. And in looking at some of the other comments, the numbers, the number of net meters out there now who are being net zero 1s l-ess than ten percent of the total. You realIy have to be kind of a fanatic to want to go that far in it. And that seems to be Idaho Powerrs biggest worries is that if these net zero people out there, and I just I just don't f think 90 percent of us are not going to be that way. Anyway, I would l-ike to very much thank the Commission for letting me make these comments, and I would ask 534 83701 1 2 3 4 5 6 7 B 9 10 11 t2 13 \4 15 1,6 !7 1_8 79 20 2L 22 23 24 25 HEDR]CK COURT REPORTING P. O. BOX 578, BOTSE, rD ROWNTREE Publ-ic you to please l-ook towards the future. Those are the end of my comments. COMMISSIONER SMITH: Thank you very much. Let's see if there are questions. I see no questions. We appreciate your participatj-on tonight. (The witness was excused. ) MR. GENE FADNESS: He is the last cal-Ier. We still- have nj-ne people listening in, and so you can maybe go to your other people and I'11- just remind them to hit star one if they want to get in the l-ine to testify. COMMISSIONER SMITH: What we're going to do right now, because I rea11y need a break, is we're going to take a ten-minute break, and I think our court reporter probably needs a break too. There are ten more people on the l-ist. f notice some family duplications. And I always hate to impose time limits on folks because I want to hear what they have to say if they made the effort to get here, it's probably pretty important and I should listen -- but I woul-d ask you to think about being as succinct as you coul-d be. So we will take a break for ten minutes. (Recess. ) COMMISSIONER SMfTH: Okay, we'11 go back on the record now, and our next witness will be Mary McGown. 535 83701 1 2 3 4 5 6 1 I 9 10 11 72 13 l4 15 t6 77 1B t9 20 27 22 23 24 25 HEDRICK COURT REPORTING P. O. BOX 578, BOISE, fD McGOWN Publ-ic MARY McGOWN, appearing as a public witness, being first duly sworn, was examined and testif ied as fol-l-ows: EXAMINATION BY MR. KLE]N: A. Good evening. TELEPHONIC VOICES: (Inaudible. ) COMMISSIONER SMITH: And, Do, therers no pudding here either. O. BY MR. KLEIN: Would you please state your ful-1 name and spell your last name for the record? A. My name is Mary McGown, M-C, capital G-O-W-N. 0. What is your mailing address? A. 282 South Mobley Lane, Boise. O. Are you an Idaho Power customer? A. Yes. O. And have you previously submitted written testimony or comments in this case? A. No. O. Please go ahead with your statement. THE WITNESS: Ditto. Actually, that's kind of what I feel like saying, because reaI1y a l-ot of these points are the same. 536 83701 1 2 3 4 5 6 7 I 9 10 11 t2 13 14 15 76 t7 18 t9 20 2t 22 23 24 25 HEDRICK COURT REPORTING P. O. BOX 518, BOTSE, rD McGOWN Public I'm representing the League of Women Voters of Idaho tonight, and the League of Women Voters of Idaho opposes the changes that Idaho Power is proposing in its net metering program. The League takes positions it has studied and on which its members have reached consensus. In part, the energy position supports energy conservation and development of renewable resources which we bel-i-eve wil-1 help grow a renewable energy industry in our communities and across the region. The proposed changes we believe woul-d negatively affect the opportunities to generate renewabl-e energy from residential and smal-l- busj-nesses' rooftops, farmsteads, and other decentral-ized facilities. Like investing in better windows or more insulation to conserve energy and l-ower electric bil-l-s, net metering is a way that customers can exercise some control- over their energy bill-s. In doing so, they are generati-ng electricity that has value to the Utility and the other customers. The electrj-c utility industry has been and 1s undergoing radical- changes in how electricity 1s generated, how it is conserved, how rates are structured, even what services a utility provides. Idaho Power Company's net metering proposal is backward-looking when a forward-looking approach woul-d benefit customers. About 20 years dgo, Idaho Power Company had a program to help customers design and instal-l- off-the-grid sol-ar 537 83701 1 2 3 4 5 6 '7 B 9 10 11 L2 13 t4 15 1,6 77 1B t9 20 2L 22 23 24 25 HEDRICK COURT REPORTING P. O. BOX 578, BOTSE, rD McGOWN Publ-ic systems j-f a distribution fine extension beyond a certain length would be required to provide electricity to those residences. Maybe the Company should consider revj-ving and updatj-ng a rooftop solar program. What woul-d be the energy outcome of investing even hal-f the amount of money in distributed generation as it proposes to spend updating a coal-fired plant? As ratepayers, we support responsible, fair, and forward-looking approaches by our electric util-ities. Thank you. COMMISSIONER SMITH: Thank you. Do you have that in wrj-tten form? That would be very good to get that. Just are there any other questions? Is Stephanie Mil-l-er stil-1 working with THE WITNESS: She shows up once in a whil-e, when she's not baby-sitting or, you know COMMISSIONER SMITH: Sounds l-ike she's having fun. THE WITNESS: Yep, she is. COMMISSIONER SMITH: Thank you very much. (The witness left the stand. ) COMMISSIONER SMITH: Anne Hausrath. 538 83701 1 2 3 4 5 6 7 8 9 10 11 t2 13 74 15 1,6 t7 18 79 20 27 22 23 24 25 HEDRTCK COURT P. O. BOX 578, REPORT]NG BOISE, ID ANNE HAUSRATH Publ-ic ANNE HAUSRATH, appearing as a public witness, being first duly sworn, was examined and testified as follows: EXAMINATION BY MR. KLEIN: O. Good evening. Would you please state your fulL name and spe11 your last name for the record? A. Yes. My name is Anne Stites Hausrath, H-A-U-S-R-A-T-H . O. And what is your mailing address? A. lB20 North Seventh Street, Boise , 83'102. O. Are you an Idaho Power customer? A. Yes. O. Have you previously submitted written testimony or comments in this case? A. Yes. My husband and I did. ft was quite lengthy. f'm goj-ng to give you a very succinct version of what f have come to think based on what's happened since we submitted. O. Okay, go ahead. Thank you. THE WITNESS: Members of the Commission, thank you for allowing me to testlfy. I encourage you to follow Staff recommendations and raj-se the cap but deny all other s39 83701 1 2 3 4 tr 6 1 B 9 10 11 L2 13 !4 15 16 t1 18 19 20 27 22 23 24 25 HEDRICK COURTP. O. BOX 518, REPORTING BO]SE, ID ANNE HAUSRATH Publ-ic changes to net metering requested by Idaho Power. fn order for you to make a fair and reasonabl-e Decision, you wou1d need adequate data to weigh the real- costs and also the benefits provided by net metering customers. Idaho Power is asking for si-gnificant rate and rul-e changes without providing evi-dence for their so-called costs of net metering, and they have not addressed any of the significant benefits to all customers from the net meteri-ng system. Some of these benefits include and you've heard many of these, but I thlnk it's very important because you have not been presented this by the proposal at hand: Small sol-ar rooftop installations are a prJ-vate investment -- a private investment in infrastructure at no cost to the general ratepayer; Again, solar generation is most abundant during the summer peak, thus foregoing costs to al-l- ratepayers for additional- gas or coal- generation; And, when a net metering customer j-s generating their own electricity, they're not putting a drain on other generation facilities,' And, solar generated on rooftops does not use Iong-distance transmj-ssion l-ines,' And, distribution of any excess solar electricity is to nearest neighbors, thus providing the most efficient type of local distribution. 540 83701 1 2 3 4 5 6 7 I 9 10 1l_ t2 13 t4 15 1,6 t1 1B 19 20 2L 22 23 24 25 HEDRICK COURT REPORTING P. O. BOX 518, BOTSE, rD ANNE HAUSRATH Publ-ic My husband and I installed we believed it was the right thing to do. pay back our expenditure in our J-ifetime, recoup some of our expenses. We did not out for additional- monthly charges. We, in Southern Idaho, best conditions for generating solar the country. If you were to approve that would effectively shut down our effectively depriving all ratepayers and wind generation. Thank you. COMMISSIONER SMITH: there are any questions. No questions. Thank (The witness COMMISSIONER SMITH: are bl-essed by some of the and wlnd electricity in Idaho Powerts Request, solar industry here, of the benefits of sol-ar Thank you Letrs see if you very much. left the stand. ) David Monsees. solar panels We did not but we di-d expect to be because expect to expect to singled Net metering is not a drain on the system; it is a safety valve. During periods of low stream f1ow, sofar can provide a valuabl-e supplement during periods of greatest need. The changes being proposed by Idaho Power are not fair and they are not reasonable. I urge you to deny their Request at this time and to except to increase the cap or maybe eliminate it. 541 83701 1 2 3 4 5 6 1 B 9 10 11 t2 13 74 15 T6 L7 1B L9 20 2t 22 23 24 25 HEDRICK COURT REPORTING P. O. BOX 578, BOTSE, rD MONSEES Publ-ic DAVID MONSEES, appearing as a public witness, being first duly sworn, was examined and testif ied as fol-Iows: EXAMINATION BY MR. KLE]N: O. Would you please state your full- name and spell your last name for the record? A. David Monsees. Thatrs M-O-N, ds i-n Nancy, S, as in Sam, E-E-S, ds in Sam. O. What's your mailing address? A. 1341 West Parkhill Drive, Boise. O. Are you an ldaho Power customer? A. I am. 0. And have you previously submitted written comment or testimony in this case? A. I am not sure. f was on a medication for two weeks and I kind of l-ost those two weeks. What f intend to say tonight is something f know I would not have saj-d j-n anything f said. O. Go ahead. Okay. THE WITNESS: You've already heard facts from a number of people; I wil-l- not go into that. 542 83701 1 2 3 4 5 6 1 8 9 10 11 L2 13 74 15 L6 71 18 79 20 2t 22 23 24 25 HEDRICK COURT REPORTING P. O. BOX 5'7 B , BOTSE, rD MONSEES Public But what we need to reallze is this is a moral- issue. We have passed the tipping point on carbon monoxide and dioxide content j-n the aj-r. This has happened on our watch. Our parents may have had a littl-e something to do with it, but we are the heavy guilty people. Our children will face severe droughts, hurricanes, tornadoes, floods, and bl.izzards, which wj-l1 get worse if we do not wake up and do somethj-ng about them. We can't count on our deadlocked federal- system; we have to do it on the state and Iocal l-evel. If this trend and the climate contj-nues, we are going to face starvatj-on, war, and disease, and we wil-I see rioting in the streets of America. Net metering is part of the sol-ution that we need to take to get off of carbon. Idaho Power woul-d try and hold back progress. Their proposal, effectively, has butchered the solar business in this state. LaMont Keen, last time I heard, was still saying that he was agnostic on c1imate change. We can not l-et short-term corporate profits keep us away from our moral duty to get off carbon. Over 150 coa1-fired plants have closed to date in the Unlted States.Idaho Power seems to not, you know, realj-ze they need to get on the bandwagon. If we don't embrace green energy, we'fl be revil-ed by our descendents and, frankly f have a science background and this is weird for me to be talking this wdy, but human civilization as we know it will- cease to exist somewhere down the road and if we don't do something soonr w€ are to blame. 543 83701 1 2 3 4 5 6 1 8 9 10 11 L2 13 L4 15 t6 t7 1B 79 20 2L 22 23 24 25 HEDRICK COURT REPORTING P. O. BOX 5'78, BOTSE, rD ALAN HAUSRATH Public I therefore request that you deny Idaho Power's plan to do what they're doing to net metering, and I thank you very much for the opportunity to speak tonight, and I hope you make the moral deci-sion. Thank you. COMMISSIONER SMITH: We appreciate your attendance. Let's see if there are any questions. Thank you very much. (The witness l-eft the stand.) COMMISSIONER SMITH: Al-an Hausrath. ALAN HAUSRATH, appearing as a public witness, being fj-rst duly sworn, was exami-ned and testif ied as follows: EXAMTNATION BY MR. KLEIN: O. Woul-d you please state your name and speI1 your last name for the record? A. My name is Al-an Hausrath, and it's spelled H-A-U-S-R_A-T_H . O. And what is your mailing address? A. tB20 North Seventh Street, Boise, fdaho, 83102. O. Are you an Idaho Power customer? 544 83701 1 2 3 4 5 6 7 B 9 10 11 72 13 1,4 15 16 L1 1B 19 20 27 22 23 24 25 HEDRICK COURT REPORT]NG P. O. BOX 518, BOTSE, fD ALAN HAUSRATH Public A. Yes, I am. O. And have you previously submitted written testj-mony or comments in this case? A. I have, but this is a new poJ-nt that I didn't make before. O. Please go ahead. A. Thank you. THE VIITNESS: Commissioners, thank you. f'm -- ] realize you're probably -- Irm certainly tired, so I'1I try to keep this COMMISSIONER SMITH: We've only been here since 9:30 this morning. THE VIITNESS: I understand, yeah. It's a long and hard day. Basj-ca11y, I am an Idaho Power customer. I'm a net metering customer. Despite al-l- of the conservatlon efforts we've taken and adding the sol-ar panels to try to control our electricity costs, we haven't reached net zero, so we're not in that fearsome category of asking for money to be sent to us or anything Iike that. The main poi-nt I'd like to make is that I don't believe that net metering customers shoul-d be put in a separate class for tari-ff purpose. So why do I say that? First of all, there aren't very many: 350 out of however many Idaho Power has 9ot, 450,000 I think I've read. 545 83701 1 2 3 4 5 6 7 B 9 10 11 72 13 74 15 t6 77 1B 79 20 2L 22 23 24 25 HEDRICK COURT REPORTING P. O. BOX 578, BOTSE, rD ALAN HAUSRATH Public It's l-ess than a tenth of a percent. We're an inf initesimal- group. And I'm sure if Idaho Power wanted, they could find another group of 350 peopl-e who are different in some way and another group who are different in some wdy, maybe all the all-electric homes, all of the people who have put in insulation, I don't know. But it doesn't seem reasonable, to frer that such a smal-1 group be put into a tariff of its own. AIso, if the tariff were reasonable, 1t wouldn't have weird effects. So what do I mean by a "weird effects"? If I'm a homeowner and I take conservation measures and get down to 400 kilowatt hours per month, I'11- pay actually 20 to $30 l-ess a month than a person who gets down to 400 ki1owatt hours by installj-ng so1ar. That doesn't make any sense to me. At the other end, if f'm a big user of electricity, say around 2,500 kilowatt hours , if I put a tiny panel on my roof and go to net metering, I'11 save money. So this is a very weird and bizarre effect. A reasonable tari-ff wouldn't have these wei-rd effects. So, in conclusion, I don't believe that a rate structure with such bizarre quirks is fair, reasonable, or in the public interest. I agree with the conclusions of Staff that IPC-E-12-21 or however you're supposed to say it is a step in exactly the wrong direction and should be rejected except for doubling the cap. I'm in favor of that because I don't quite see why there shoul-d be a cap. 546 83701 o 1 2 3 4 5 6 7 B 9 10 11 t2 13 L4 15 t6 L1 1B t9 20 27 22 23 24 25 HEDRICK COURT REPORTING P. O. BOX 578, BOTSE, rD FAUCI Public Thank you very much for the opportunity to speak to you. COMMISSIONER SMITH: I appreciate your succi-nctness. Are there any questions? Appreciate it very much. (The witness l-eft the stand.) COMMISSIONER SMITH: Joani-e I'11 l-et Joanie say her own last name. JOANIE FAUCI, appearJ-ng as a public witness, being first duly sworn, was examined and testif ied as fol-l-ows: EXAMINATION BY MR. KLE]N: O. Woul-d you please state your ful-l- name and speII your last name for the record? A. Joanie Eauci, F-A-U-C-I. 0. What's your mailing address? A. 2944 Hillway Drive, Boise, 83702. O. Are you an fdaho Power customer? A. Yes. 0. Have you previously submitted written comments or 547 83701 1_ 2 3 4 5 6 7 8 9 10 11 L2 13 t4 15 1,6 l1 18 19 20 2L 22 23 24 25 HEDRICK COURT REPORTING P. O. BOX 518, BOTSE, rD FAUCI PubIic testimony in thi-s case? A. I have not. O. Pfease go ahead. THE WITNESS: Thank you, Commissioners, for taking public comment after such a long day today. I was here earlier this morning, but I couldn't stay all day. f agree with al-l- of the previous speakers tonight, so I wil-l- not repeat their points. In 1931, Thomas Edison stated: f hope we don't wait until we are out of coal and oil before we find an al-ternative energy source. And since the early 1900s, there has been the recognition of the threat of cl-imate change and an understandj-ng of the radical- reduction in fossj-1 fuel- use required to address it. As a society, we need energy efficiency and demand response. We need distributed renewable energy. We need to cancel- out future power plants and transmlss j-on l-ines. AI1 of those things are to the good economically and ecologJ-ca11y. Yet, utilities have every incentive to oppose them. They are direct threats to their familiar, comfortable business model, which has survived nearly a century unchanged. So I thi-nk we need to do more than fiddle with rate structures. We need a ground-up rethink of how utilitj-es work, how they are structured, and how they can be reformed in a way that enab1es 548 83701 1 2 3 5 6 7 B 9 10 11 t2 13 74 15 L6 l7 1B 79 20 27 22 23 24 25 HEDRICK COURTP. O. BOX 578, REPORTING BOTSE, fD FAUCT Public and accel-erates long overdue innovation j-n the electricity space. Eor example, 20 years dgo, who woul-d have thought we'd al-l- give up traditional telephone lines and go cel-l-ul-ar? Times change. The PUC has a history of supporting tools for customers to control their energy bills 11ke energy efficiency and air conditioning cool- credit program. Net metering is another important tool. But let's not have a 5.8 megawatt cdp, which could be reached in the next three to five years, nor any no caps, nor any new fees on current and future sol-ar customers or net metering customers. I hope that Idaho Power and the PUC can come up wj-th new innovative methods to make money, integrate dj-stributed resources such as solar power, and .l-ead the way for an empowered customer base in the future. COMMISSIONER SMITH: Thank you very much. Are there any questions? Appreciate your patience j-n enduring. (The witness left the stand. ) COMMISSIONER SMITH: Kelley Dugley (phonetic). MR. DAGLEY: Cl-ose . Dagley. COMMISSIONER SMfTH: Dagley. Thank you. 549 83701 1 2 3 4 5 6 1 B 9 10 11 t2 13 L4 15 16 !7 1B 79 20 2L 22 23 24 25 HEDRICK COURT REPORTING P. O. BOX 578, BOTSE, rD DAGLEYPublic KELLEY DAGLEY, appearing as a public witness, being first duly sworn, was examined and testified as follows: EXAM]NATION BY MR. KLETN: O. Pl-ease say your name and spell your l-ast name for the record. A. Name is Ke11ey Dagley, D, as in deIta, A-G-L-E-Y. O. And what is your mailing address? A. 30 Pine Cone Way, Boj-se, Idaho, 83116. 0. Are you an Idaho Power customer? A. I am. O. Have you previously submitted written testimony or comments in this case? A. I have, but this will be new materlal. O. Thank you. A. Thank you. THE WfTNESS: First, I want to thank the Commission. f sat through aJ-1 of the hearings as weLl- and read every single piece of testj-mony that you have onl-ine, and I know it ' s a l-ot to go through. And I want to thank everybody here too. The 550 83701 1 2 3 4 5 6 7 B 9 10 7t L2 13 74 15 L6 77 18 L9 20 27 22 23 24 25 HEDRICK COURT REPORTING P. O. BOX 5'78, BOTSE, ID speakers here have been great. I think it's been reaI1y informative. I know I've l-earned a 1ot just even after everything I've been through so far. I have a 25,000 watt system, resj-dential-, that I just finished building about two months ago. It had been in the planni-ng phases for several years. It is a net zero system. ft's an all-electric house. ftrs l-ocated in the mountains near Idaho City. So I wasnrt trying to make any money off of the system. When I designed it, I tried to design it so that it would be abl-e to meet all of our needs and nothi-ng extra. After looking at what Idaho Power has proposed, if I were to do that same analysis today with the new proposal, I would put in exactly one panel rather than 100, I would put 1n 250 watts, because every additional panel would be essentially lost money. I'm kind of in that weird situation where I'm a net zero situation right now, which means this is a very disadvantageous situation to me when Idaho Power gets this proposal; but I'm al-so a large consumer, which means if I hadn't put the system in, it would be very advantageous to me because I coul-d just go out and buy one paneI, throw it ofl, and save a lot of money on my rates wj-thout actually doing anything good for the environment or bei-ng net zero or helping out fdaho Power or helping out my neighbors by sending el-ectrj-city over to them. 551 DAGLEY Public83701 1 2 3 4 ( 6 7 8 9 10 11 72 13 L4 15 L6 t7 18 19 20 21 22 23 24 25 HEDRICK COURT REPORTING P. O. BOX 578, BOTSE, rD DAGLEY Publi-c So that's my story. Everybody here has covered pretty much everything f think very wel1. The only thing that I want to say is that I think Idaho Power has done -- wel-I, they have done a job of covering the costs very wel-}, it seems, for distributed generation. They don't seem to have covered any of the benefits. And other people have spoken to this as well-. It seems that what we're al-l- trying to do here is talk about the benef its because j-t's not being covered by Idaho Power, you know, and it's a hard thing to value properly. It's not just something you can just you can't pick a number out of the air. Is it worth the exact, you know, flip side of the retail rate? Maybe 1t is, maybe it's not. Probably not, you know, it probably isn't worth that; it's probably worth a lot more, in my opinion. I wou1d just l-ike to suggest that we should have -- maybe the Commission, I don't know how this exactly works, but maybe we cou.l-d fund a fu11y independent study to determine what is the value of the distributed generation in Idaho. That seems reaIIy critical to this. I mean, until you can figure out what the va.l-ue reaIly is I mean, you can't rea11y rely on Idaho Power to tell- us what the value is. You know, they did great figuring out what the costs are, but we real-Iy need to know what the benefit is. So, you know, until- that can be done I understand these surveys, these analyses, can be very expensive. You know, maybe, you know, until the 552 83701 1 2 3 4 5 6 7 B 9 10 11 !2 13 !4 15 16 77 1B 1,9 20 21 22 23 24 25 HEDRICK COURT REPORTING P. O. BOX 57Bt BOTSE, rD DAGLEY Public time comes when maybe we can use time of use metering, you know, get a better grip on how people are usj-ng the power and putting it back on the grid, until the time comes when we can actually afford to commissi-on a fu1ly exhaustive study and study of the val-ue of distributed generation so1ar, for example -- we should probably just hold off . f mean, j-trs not rea1ly that big of an issue right now. It's really not an issue right now. So, that's my comment. Thank you very much. COMMISSIONER SMITH: AlI right. Letrs see if there are questions. No? Appreciate your time and appreciate your interest in staying all day. THE WITNESS: Yeah. (The witness left the stand. ) COMMISSIONER SMITH: Steve White. 553 83701 1 2 3 4 5 6 1 B 9 10 11 72 13 74 15 76 t7 1B t9 20 27 22 23 24 25 HEDRICK COURT P. O. BOX 578, REPORTING BOISE, ID STEVE WHITE Public STEVE WH]TE, appearing as a public wj-tness, being first duly sworn, was examined and testif ied as foll-ows: EXAMINATION BY MR. KLEIN: O. Please state your name and spell your last name for the record. A. Stephen White, W-H-I-T-E. a. What is your mailing address? A. Would you l-ike both sites that we have sol-ar instal-Ied? O. Sure. A. We are a net current net metering customer. I'11 give you both. 1518 Knights Drive, Boise, and 3778 Plantation River Drive, Boise. O. So I take it you're an Idaho Power customer? A. That is correct. O. Have you previously submitted testimony in this case ? A. Yes, I have, but these are new points. O. Thank you. THE WITNESS: Irm sure that by now that the PUC has heard of numerous fl-aws and logical shortfalls in IP 554 83701 1 2 3 4 trJ 6 7 B 9 10 11 L2 13 74 15 16 l1 1B 1,9 20 2t 22 23 24 25 HEDRICK COURT REPORTING P. O. BOX 578, BOTSE, rD STEVE WHITE Publ-ic Idaho Power's rate case. Rather than going through al-I of them, I've chosen to focus on a select few. Let me start with a simple story. We've been havi-ng some rea11y awkward conversations around the home. Recentf y, an el-ectricj-an was doing some maintenance on our home and when he l-ooked around and saJ-d, Hum, you guys coul-d probably benefit from installing some of these next generation LEDs. Sounded good. But then my wife and I reflected: We're net metering customers. Under this new proposalr we would no longer have an incentj-ve to conserve energy. My family scal-ed our solar PV system at home to be net zero, to provide enough power to meet our current needs. Accordj-ng to the terms that Idaho Power proposes, however, we will never be able to benefit or save money from conservation efforts going forward. Idaho Power alleges that we are fundamentally different, and if we generate an extra kil-owatt hour of powerr w€ need to apply to FERC for permj-ssion to be a PURPA whol-esal-er. This assertion is so ridiculous, it's laughable. Having to tel-l- my daughters, You know, we've always encouraged you to turn off your lights when yourre not in your room or turn off your computers when you're not using them. It doesn't matter anymore. Now, when youtre over at your friends that are not net metering customers, yeah, you 555 83701 1 2 3 4 5 6 1 U 9 10 11 72 13 74 15 \6 l1 1B L9 20 2t 22 23 24 25 HEDRICK COURT REPORTING P. O. BOX 578, BOTSE, rD STEVE WHITE Public shoul-d abide by their rul-es and be responsible, but here at our home, it wonrt matter anymore. Because we're fundamentally different. f'm sure that outcomes l1ke this are not what the PUC wants to support. Taking a long-term perspective is vital- to our state's interests. Over time, technology improves and there are opportunities to conserve power, ones that were not present before. We have seen the benefits of this i-n the innovative structure the PUC bu1lt with util-ities I1ke Idaho Power to encourage utility customers to continually l-ook for ways to conserve power. We personally have always sought to conserve power and I'm sure my daughter can attest to that and look for more active ways to reduce our power consumption, both at home and at work. The PUC should only approve a structure that supports the rights of net metering customers to benefit from future conservation efforts. The second point is is the proposal- discrlminates in favor of large customers. I have an undergraduate degree in finance, an MBA from the Harvard Business School-, and am a CFA charter holder as a chartered financial analyst. In my rol-e as a financial advisor, a good proportion of my time i-s spent advising our customers to make solid financial decisions. After being quoted in the WalI Street Journal- on advising clients on energy efficiency and 556 83701 1 2 3 4 5 6 7 B 9 10 11 t2 13 L4 15 t6 L7 1B 19 20 27 22 23 24 25 HEDR]CK COURT REPORT]NG P. O. BOX 5'7I , BOTSE, rD STEVE WHITE Public renewable energy issues, I've been contacted by many people in Iearni-ng more about energy efficiency and those types of topics throughout the Northwest. Under the current rul-es, the financial analysis process is logical and equitabl-e. A system with the same production and the same cost produces the same financial- return regardless of the size of customer you are, regardless of your level of consumption. Under the proposed rul-es, net metering will no longer make sense for the smal-l- consumer. The fixed fees represent a penalty that will- ruin the economics for that consumer. Conversely, the big consumer wil-l uniquely benefj-t regardless of the system sj-ze because of the move to a l-ower per-kilowatt rate schedule.I would have to tell- my customers that if they're liqht energy users, then renewable energy won't make sense for them, but, hey, if you're a big energy user, absolutely, you shou1d do this, because you'11 be abl-e to move to a new rate system -- a new rate structure. Why shoul-d all of a sudden the go/no-go decision be based on how much power that person consumes? This rate case was poorly conceived and clearly discriminates in favor of the large consumer. Small customers will have no place in this system and few, if dDy, new ones will connect. We shoul-d not build a structure like this, one that dj-scriminates in favor of the large energy user and against the light energy user. It 557 83701 1 2 3 4 5 6 1 I 9 10 11 L2 13 t4 15 t6 t7 1B 19 20 2L 22 23 24 25 HEDRICK COURT REPORT]NG P. O. BOX 578, BOTSE, rD STEVE WH]TE Publ-ic doesn' t make f inancial- sense, it ' s not equitabJ-e, and i-t ' s not fair. Point three: Customer-produced power has a monetary val-ue. The current system is equitable because the monetary val-ue of my excess generation j-s exchanged for the monetary val-ue of the servj-ces provided by Idaho Power. In Matthew Larkin's rebuttal, and I quote: In effect, financial credits al-low customers who generate more than they consume to reduce their power bil-ls to zero or less than zero, thus allowing them to avoid paying for equipment and services they utilize. Here he's asserting that net metering customers shoul-d not receive monetary val-ue for their power, because if they do, then they are not paying for their share of the system's fixed cost. As a financlal professional-, this makes absolutely no sense. The excess power we upload to the grid has real-, tangible value, and net meterers should receive a financial- credit for this power. Additionally, if I exchange $20 worth of power for their $20 worth of services, how am I not paying? That's a fair, legitimate transaction. Both sides are receiving benefits. The current system is equitable as net meterers' excess power is sol-d back to Idaho Power at the then-applicable rate, which is the same rate Idaho Power charges them. Idaho Power insists that we al-l- must pay our share of the fixed costs 558 83701 1 2 3 4 trJ 6 1 B 9 10 11 t2 13 l4 15 76 t7 18 1,9 20 2t 22 23 24 -)trLJ HEDRICK COURT P. O. BOX 578, REPORT]NG BO]SE, ID STEVE WHITE Public and of course they are happy to assign a dollar va1ue to that cost, yet in thls rate case they do not want to assign a monetary value to the excess power that net metering customers put back on the grid. Both our excess power and Idaho Power's services have economic value, yet they are proposing to treat it dj-fferently. The bottom l-ine: We shoul-d be able to exchange the monetary val-ue of our excess power generation for the monetary val-ue of their services. This is the only equitable sol-ution for both sides. Point four: Monetary value must be reconcil-ed. Idaho Power alleges in its testimony that it is unique from other states with net metering programs. Other states reconcile with their net metering customers annually. To the best of my knowledge, FERC has not pursued any of these states with a viol-ation under PURPA regulations. They understand that net metering customers have provided a valuabl-e service in uploading excess power to the grid, which has a monetary va1ue. If other states are reconciling with their net metering customers on a monetary basis, then so shoul-d fdaho; otherwise, taking excess power wi-thout paying for it is effectively stealing. In conclusion, I am confident that you, the Commissloners of the PUC, wi-11- make the right Decision/ one that supports future efforts to conserve power by net metering customers; is nondi-scriminatory, allowing consumers to make 559 83701 1 2 3 4 5 6 7 B 9 10 11 72 13 t4 15 L6 L7 18 1,9 20 21, 22 23 24 25 HEDRICK COURT P. O. BOX 578, REPORTING BOTSE, rD OLSON Public investment decisions based on the sj-ze of the system's production and its cost and not the level of a consumer's energy consumption; it recognizes that the excess power we generate has monetary val-ue and that it may be exchanged for utility servj-ces; and it recognizes that util-ities must reconcile with their net metering customers on an annual basis. COMMISSIONER SMITH: Does that conclude your statement? THE WITNESS: That is correct. COMMISSIONER SMITH: Are there any questions? We thank you very much for your time and thoughtful comments. THE WITNESS: Thank you. (The witness l-eft the stand.) COMMISSIONER SMITH: Greg Olson. GREG OLSON, appearing as a publlc witness, being first duly sworn, was examined and testif ied as foll-ows: THE WITNESS: So, I want to thank you again for 550 83701 EXAMINATTON BY MR. KLEIN: 0. Cou1d you please state your name and spell your l-ast name for the record? A. My name is Greg Olson, O-L-S-O-N. O. And what is your mailing address? A. It is 8399 West Hill Road, Boise, 8371"4. O. Are you an Idaho Power customer? A. I am. 0. Have you previously submitted testimony or comments in this case? A. I have. O. And so if you have a statement, please limit it to new material. A. I shaIl. O. Thank you. THE WITNESS: So, thanks again for doing this. It's reaIly important that you guys hear all of these things, and I'l-l- try and summarj-ze things that apply to me directly and basicalJ-y kind of bring in a l-ot of the points that have already been brought up. One that I wanted to make clear is ldaho Power has stated that they already have the billing software and the hardware out there to be abl-e to continue net metering in a way 561 2 3 4 5 6 7 B 9 10 11 t2 13 t4 15 !6 l7 1B 79 20 2t 22 23 24 25 HEDRICK COURT REPORTING P. O. BOX 578, BOTSE, rD OLSON PubIic83701 1 2 3 4 tr 6 7 B 9 10 11 72 13 t4 15 76 L7 18 1,9 20 2L 22 23 24 25 HEDRTCK COURT REPORTING P. O. BOX 578, BOTSE, rD OLSON PubIic that would not be onerous to small energy producers. Other states have already done this, and there's mechanisms in this state to be able to monetize that electricity both internally within the state and the possibility to be abl-e to seII it to other grids during peak loads outside of the state. I own BIue Lightning Renewable Energy Solutions, and f do a large number of both smal-l- and large sol-ar installations here in the valley. I was in the Navy in aviation electronJ-cs, I worked for Hewl-ett-Packard for almost 20 years, along with other subsidiary industries. And the reason I bring that up is that skill set, that ability to work with DC electricity, initially from the mil-itary and then bringing that j-nto everything from computers, networking, phone, cable TV, e.l-ectric vehicl-e operations, all of these skill- sets I have the ability to go into. I was tired of obsol-ete in three and broken i-n five; that's why I chose solar. My busj-ness is based on doing a large install but starting at a smal-I instal-l. In other words, I'11 put j-n one or two kll-owatts and have the ability to upgrade to five kilowatts at some point in the future. This change in net metering basically shuts down any of those future install-s that I'l-I have, and I'l-I have to find a lot of peak oi1 peopl-e that are living up in the mountai-ns to do stand-alone systems, which really isn't a good basis for a business. Basically, I woul-d l-ike to see where we do a 562 83701 1 2 3 Ll 5 6 7 I 9 10 11 72 13 L4 15 76 l7 18 19 20 2t 22 23 24 25 HEDRICK COURT REPORTING P. O. BOX 5'l B , BOTSE, rD OLSON Public reasonable format where electricity is monetized in a way that Idaho Power can continue to function; everybody in the state gets a good deal on electrj-ci-ty; and we have a distributed grid where people are making power throughout the state; we have multj-ple different energy sources which can incl-ude coal or natural 9ds, but al-so have people making energy; we are dj-stributing the costs of those upgrades to the grid between all of the different customers; we are giving each of these people the ability to bring some of that money back to themselves, either in a cost savings or, as some other states have done, potentially even maki-ng some money, less money than Idaho Power would make but yet monetizing it so it's win-win for everybody, and thus making the economy in this state stronger. We have as much sun as Phoenix, Arizona. We shoul-d use that. We shoul-d use that to bring more money into this state, and to bal-ance and strengthen our entire ecosystem and the economy here. As far as any of the other specJ-fic issues that people have brought up, I agree with them in general, but I think that we have the potential- here to help everybody out a lot by removi-ng the cap and not penalizing small- producers, because a lot of those small producers wj-l-l eventually become larger producers. That's my comments. 553 83701 1 2 3 4 5 6 1 B 9 l_0 11 l2 13 t4 15 1,6 L7 18 1,9 20 27 22 23 24 25 HEDRICK COURT REPORTING P. O. BOX 578, BOTSE, rD RYAN Publ-ic COMMISSIONER SMITH: Thank you very much. Any questions? COMMISSIONER REDFORD: No. COMMISSIONER SMITH: Appreciate your time. (The witness l-eft the stand.) COMMISSIONER SMITH: .fohn Ryan. JOHN RYAN, appearj-ng as a public witness, being first duly sworn, was examined and testif ied as fol-lows: EXAMINAT]ON BY MR. KLEIN: O. Wou1d you please state your full- name and spe1I your last name for the record? A. Yes. It's John Ryan, R-Y-A-N. My address is 2499 East Herbert Drive. f am an Idaho Power customer. O. Have you previously submitted testimony in this case ? A. I have, and this will be new. O. New stuff? A. Yes. O. A11 right. Go ahead. A. Okay. 564 83701 1 2 3 4 5 6 7 I 9 10 11 72 13 t4 15 76 71 1B L9 20 21 22 23 24 25 HEDRICK COURT REPORTING P. O. BOX 5"78, BOTSE, rD RYAN Publ-ic THE WITNESS: Yeah, I'm John Ryan. I am a net metering customer here j-n Boise, and I have a few comments on the proposal. Eirst, I just wanted to say I was a littl-e bit stunned by the testj-mony from Matt Larkin, the Idaho Power analyst. I did read the whol-e testimony. You know, I found it surprising that his testimony unfortunately attempted to pit nearly hal-f a mil-lion ratepayers against me by accusing me of increasing their electrj-c rates, saying, you know, basically standard service customers are l-eft to compensate for the shortfall due to what he cal-led inequities in the system. In the same testi-mony, he failed to provide even the most basic analysis regarding the rational-e for these accusations; and he al,so fail-ed to provide any rational-e for IPCo's proposal to increase fixed monthly fees by 300 percent to ratepayers who, by definition, use the system l-ess than the average ratepayer. With that said, as a net metering customer, I al-so do recognize some of the challenges net metering presents to Idaho Power. New, cleaner, and 1ow-cost technol-ogies are now availabl-e to their customers, so I want to be reasonable and I am wi-11ing to compromj-se. Of course it's true, I benefit from their power distrlbution system, and I bel-ieve Idaho Power shoul-d be fairly compensated for my use of that system. So along those lines, these are two things which 56s 83701 I could agree to, I think, which wou1d help Idaho Power: First, Ird say I am willing to forfeit the potential for actual financial payments, you know, for my excess energy production in return for a continuous, nonexpiri-ng ro1lover of my excess energy production credits. I real-ize that's not the feeling amongst everybody in the group here, but I think, you know, most of us got into this probably for other reasons. It's not just necessarily the financial checks to receive. And from my personal point of view, I, you know, was not looking to actually receive a check; a rollover would be adequate. Two, I am actually willing to pay an j-ncreased fixed fee on a monthl-y basis to cover Idaho Power's fixed costs; however, I believe these fixed monthly fees should be applied evenly and without punitive design to address the fixed cost of servJ-ng al-l residential customers and not applied specifically just to net metering customers. I think if there are fixed costs in the system, you know, it's fair that we pay for them, but our flxed costs are not higher than my nelghbors. Lastly, I'd just l-ike to say that f regret very much how Idaho Power's proposal was l-aunched in late 20L2 without any prior input from stakeholders. Instead of seeking mutua1 solutions, Idaho Power chose to take an aggressive adversarial- stance against its ratepayers. Perhaps a better 566 2 3 4 q 6 7 B 9 10 11 L2 13 74 15 16 17 1B t9 20 27 22 23 24 25 HEDRICK COURT REPORT]NG P. O. BOX 578, BOTSE, rD RYAN Publ-ic83701 1 2 3 4 5 6 7 B 9 10 11 \2 13 74 15 76 77 1B 1,9 20 27 22 23 24 25 HEDRICK COURT P. O. BOX 578, REPORTING BOTSE, rD RYAN Public outcome would result if Idaho Power chose to act in good faith as the provider in the community which benefits from j-ts status as a protected, regulated monopoly. I ask that the Commission consider this in thei-r Decision. Thank you. COMMISSIONER SMITH: Thank you. Any questions? COMMISSIONER REDFORD: No- COMMISSIONER SMITH: If it weren't so l-ate and I wasn't so brain dead I would l-ike to have a conversation with you, because I am appreciative of your recognj-tion of the fixed cost issue and your willingness to pay an increased fee, because, in my experi-ence, most utility customers do not like the customer charge and they feel- it's unfair and they don't understand what they're paying for. THE WITNESS: I'I1 give you my phone number if you'd like to talk more. COMMISSIONER SMITH: Thanks. THE WITNESS: One thing, if I could say one thing just on that, just to make my point cfear if I can: I mean, I think, you know, that that fixed fee, again, I think we've got to pay it and, you know, the Company deserves to get that reimbursed, but I donrt think there shoul-d be two classes on that just for net metering customers. COMMISSIONER SMITH: I understand that. 561 83701 5 6 1 1 2 3 4 B 9 10 11 t2 l-3 t4 15 16 L1 1B 19 20 2L 22 23 24 25 HEDRICK COURT REPORTING P. O. BOX 578t BOTSE, rD RYAN PubIic THE VIITNESS : You did. Okay. COMMISSIONER SMITH: I understand your point there. THE WITNESS: Thank you. COMMISSIONER SMITH: That it's an issue across the board. THE WITNESS: Yes. COMMISSIONER SMITH: And it's a broad i-ssue of collecting fixed costs in a commodity charge that varies with usage. THE WITNESS: Yep. COMMISSIONER SMITH: And, therefore, people who use more pay more, and people who donrt use a lot aren't coveri-ng. I understand. THE WITNESS: Right. COMMISSIONER SMITH: Thank you. Appreciate your time. THE WITNESS: Thank you. (The witness left the stand. ) COMMISSIONER SMITH: I l-ost my 1j-st. Let's see. Senna (phonetic) White. 568 83701 1 2 3 4 5 6 1 B 9 10 11 72 13 t4 15 t6 t1 1B 19 20 2L 22 23 24 25 HEDRTCK COURT REPORTING P. O. BOX 578, BOTSE, rD SIENNA WHITE PubLic SIENNA WHITE, appearing as a public witness, being first duly sworn, was examined and testified as follows: EXAMINATION BY MR. KLE]N: 0. Would you please state your name and spe1l your last name? A. Sienna White, W-H-I-T-E. O. And what's your mailing address? A. 1518 Knights Drive, Boise, ID, 837L2. O. Are you an Idaho Power customer? A. I think so. I don't pay the bills, but COMMISSIONER SMITH: Lucky you. THE WITNESS: In theory, yeah. O. BY MR. KLEIN: Have you previously submitted any testimony in this case? A. Yeah, an onl-ine comment. O. An onl-ine comment. So if you'11 just keep your comments tonight to something that's A. New, yeah. O. Great. A. Okay. THE WITNESS: So, I attend Boise High, right 569 83701 1 2 3 4 5 6 7 B 9 10 11 t2 13 t4 15 16 71 1B L9 20 2t 22 23 24 25 HEDRTCK COURTP. O. BOX 578, REPORTING BOISE, ID SIENNA WHITE Public around there. My family COMMISSIONER SMITH: That way. THE WITNESS: Oh, that way. My family and I, we're al-l- really passlonate about renewable energy. For example, whenever we drive somewhere my dad al-ways points out all the solar and wind farms, which can get rea11y scary when he's driving. He doesn't drive when we go to Washington. Our family I think is rea1ly excited because we see it as the right path for the future. Recently, we invested j-n solar panels, we've got them on our roof, and they are predicted to repay their val-ue in 12 years. rt seemed l-ike a good investment when we got it; however, with the changes being proposed, this prevj-ous1y logical and good investment doesn't make financial- sense. These proposed changes destroy many of the original incentives to lnstaIl solar. Natural gas and coaf are not going to last forever and I think this is obviously a fact, so, therefore, basing our state's energy source on natural gas and coal just doesn't make logical sense. Sol-ar panel is always going to be around, we're always going to be abl-e to harvest energy from our sun, in ten years, in 50 years, in 500 years. So it seems, to me, that net metering and solar panels shoul-d be encouraged and endorsed, and not hindered by our state's power company. Passing this Application sets a precedent of inhibiting renewable energy, and when you l-ook into Idaho's 570 83701 1 2 3 4 5 6 7 B 9 10 11 72 13 l4 15 76 L7 1B 19 20 27 22 23 24 25 HEDRICK COURTP. O. BOX 518, REPORTING BOISE, ID future, whj-ch is your future but it afso is my future and the future of my peers who are growing up in this state, I do not belj-eve that the precedent of inhibiting sol-ar energy is a precedent that we can 1ogicaI1y, ethically, or responsibly afford to set. Thank you. COMMISSIONER SMITH: Thank you very much. AUDIENCE MEMBERS: (Applause. ) (The witness left the stand. ) COMMISSIONER SMITH: Are there any questions? No? That's good, because she's already gone. MS. WHITE: Oh. COMMISSIONER SMITH: That brings us to I think the end of people who have signed up to testify, unless, Daniel-, there are any more. MR. DANIEL KLEIN: No more. COMMISSfONER SMITH: I said it earlier today and I will say it now, that I appreciate the Company actually bringing this Application because I think these are j-ssues that shou]d be explored and discussed; and I'm very pleased with the public participation, both in the written comments online and paper copies, and in your participates here tonight. And I think j-t's important for the Commission to hear and understand your concerns and your goalsr so I rea1Iy do appreciate that. The other important thing that I think probably 571 83701 COLLOQUY 5 6 1 1 2 3 4 B 9 10 11 72 13 L4 15 t6 t7 1B 79 20 2L 22 23 24 25 HEDRICK COURT REPORTING P. O. BOX 5-18, BOTSE, rD al-l- of us have gotten out of this is the j-mportance of a timely Decision. Earlier today, w€ had someone who bemoaned the fact that this has taken six months to get here and, you know, I told him in the regulatory world, six months is the speed of Iight. But I -- you have our conrmitment I think for the most speedy Decision we can possibly do and give it the justice it deserves, because I think these are important issues. Any comments from the other Commissioners? Wendy, thank you for lasting to the end. As I said, the technical hearing was earlier today, so that part of our process is finj-shed. There was some concern expressed by members who wanted to send in further written comments and they couldn't get it in by the end of today, which would be the time we wou1d normally cl-ose the record. And once the record is cl-osed in a case, then the Commj-ssion views the evidence that's been presented and nothj-ng el-se. So with that in mind, I was going to suggest that if there are those who haven't commented who have thought of somethj-ng new that they need to add, that we wil-I keep the record open until Eriday for any further written or e-mail comments; and then on Friday, the record will be cl-osed and the Commission, when it gets the transcript, will be free to del-iberate and we wil-l- issue our Decision as soon as possible, because we do understand that people are making deci-sions and they need they need that Decision as part of their 512 83701 COLLOQUY 1 2 3 4 5 6 7 B 9 10 11 L2 13 1,4 15 !6 L7 18 19 20 21, 22 23 24 25 decision-making process . So we appreciate you and thank you for coming, and the hearing is adjourned. (The hearing adjourned. ) 573 HEDRICK COURT REPORTING P. O. BOX 578, BOTSE, rD 83701 COLLOQUY 1 2 3 4 q 6 1 8 9 10 11 !2 13 L4 15 76 t1 1B 19 20 2L 22 23 24 25 HEDRICK COURT REPORTING P. O. BOX 5'7I , BOTSE, rD AUTHENTICATION This is to certify that the foregoing Volumes II through IV are a true and correct transcript to the best of my ability of the proceedings held in the matter of Idaho Power Company's Application for authority to modify its net metering service and to increase the generatj-on capacity limit, Case No. IPC-E-72-27, commencing on Tuesday, June 11-, 2013, dL the Commission Hearj-ng Room, 412 West Washington, Boise, Idaho, and the original thereof for the fil-e of the Commissi-on. Accuracy of aIl- preflled testimony as originally submitted to this Reporter and incorporated hereln at the direction of the Commj-ssion is the sofe responsibility of the submitting part j-es. WENDY J. MUR ot ry Publ-ic in and for th ate of Idaho,residing at Meridi-an, Idaho. My Commlssion expires 2-8-2074. Idaho CSR No. 475 574 83701 AUTHENTICATION