20100707final_order_no_32029.pdf

Office of the Secretary
Service Date
July 7 2010
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF AVISTA
CORPORATION'S PROPOSED REVISION
OF TARIFF I.C. NO. 28 FOR SCHEDULE63 CASE NO. A VU-IO-
ORDER NO. 32029
On April 20, 2010, A vista Corporation (hereinafter "A vista" or "Company
submitted, via electronic filing, to the Commission Secretary its First Revision of Tariff Sheet
No. 63 canceling Original Sheet No. 63 of LP.UC. Tariff No. 28 (hereinafter "Filing ). The
Company proposed an effective date for the revised tariff sheet of May 20, 2010.
On May 20, 2010, the Commission issued a Notice of Application and Notice of
Modified Procedure establishing a 28-day comment period and suspending the proposed
effective date of the Company s Filing for a period of thirty (30) days plus five (5) months from
April 20, 2010, or until such time as the Commission enters an Order accepting, rejecting, or
modifying Avista s request. See Order No. 31090. The Commission received Staffs written
comments and three public comments regarding Avista s Filing within the established comment
period.
TARIFF REQUEST
Avista s Filing proposes to alter the maximum generating capacity that Schedule No.
63 (net metering) customers may connect to the system while still being eligible for net metering.
Avista allows customers to emoll as net metering customers on a first-corne, first-served basis
until the cumulative generating capacity of all net metering customers equals 1.52 MW (0.1 %
Avista s retail peak demand in 1996). In order to be eligible for the net metering program
customers must own a facility, located on the customer s premises, that generates electricity and
uses as its fuel either solar, wind, biomass or hydropower, or represents fuel cell technology.
If approved, the allowable generating capacity would increase from its current 25
kilowatt ("kW") maximum to a 100 kW maximum. Avista states that the current average
customer using net metering is in the range of5-10 kW. The proposed change to 100 kW would
allow for larger generating facilities to be considered. A vista believes that the proposed revision
would not impact the distribution system or other customers ' service.
ORDER NO. 32029
The current policy of imputing the costs for service facility upgrades, including the
transformer, if required, to net metering applicants would remain in place. Applications are
evaluated for any potential capacity issues that may be encountered by the customer. If the
applicant's service capacity is deemed insufficient to accommodate the applicant's proposed
generation capacity, Avista provides the applicant with a detailed cost estimate for upgrading the
service.
STAFF COMMENTS AND RECOMMENDATIONS
Staff noted that A vista has received requests from at least one residential and one
commercial customer to lift its maximum generation capacity limit for Schedule 63 customers
and asserted that Avista s request to increase the individual customer limit for net metering from
25 kW to 100 kW was motivated by the Company s desire to "accommodate (these types of)
customers who wish to install larger systems than are currently permitted under Schedule 63.
Staff Comments at 2. A vista would also like to align its "net metering rules in Idaho with the net
metering standard that was established for Avista in Washington in 2008.
In Idaho, Avista s net metering program has attracted only 14 participants, with a
collective generation capacity of only 37 kW, with most of those customers being residential
consumers generating only a few kilowatts. Id Avista s current maximum generation capacity
mirrors both Idaho Power s and Rocky Mountain Power s net metering tariffs for the residential
class. Id However, both Idaho Power and Rocky Mountain Power allow up to 100 kW for all
other customer classes. Id Notwithstanding a few anecdotal examples of customers installing
larger systems
, "
Staff believes that the vast majority of net metering customers will continue
install systems with capacities below 25 kW.Id Nevertheless, customers with larger systems
will still have the option "to sell their excess generation under non-firm tariffs or enter into long-
term fixed rate contracts" if they determine that "PURP A avoided cost rates will be more
attractive than net metering.Id at 3.
Staff believes that one of the chief rationales for restrictions on net metering,
preventing the subsidization of net metering customers by the general body of ratepayers, is no
longer applicable. Id Staff explained that "for many years, retail rates far exceeded the cost of
generation alone, thus creating a subsidy.Id However, retail rates no longer exceed the cost of
generation, thus weakening the justification for limiting the size of net metering systems.
ORDER NO. 32029
Staff asserts that there is little risk of Schedule 63 customers "oversizing" their
systems because, while they can carryover excess generation credits month-to-month, they will
not be compensated for any unused credits at the end of the calendar year. Id Staff maintains
that this policy should help preserve "the intent of the net metering program by encouraging
customers to install systems designed only to offset their usage.
Finally, Staff believes that Avista s proposal is reasonable and recommended that the
Commission approve A vista s request for an increase to the net metering size limitation from its
current 25 kW maximum to 100 kW maximum for all customer classes. Id at 4. Staff believes
that "adoption of the proposed net metering standard for A vista will accommodate. . . larger
systems, still preserve the intent of net metering to offset usage, and recognize the lower number
of solar days in northern Idaho.Id The revised tariff for Schedule No. 63 "should not cause
net metering customers to be subsidized by other ratepayers, nor will it change net metering
customers' responsibility for paying for service upgrades when required.
PUBLIC COMMENTS
The Commission received three separate e-mail submissions from the public
commenting on A vista s Filing. The substance of those comments included the following:
1. A vista should be required to purchase any "excess power generated. . . at
the prevailing wholesale rate
2. A vista should implement and expand its net metering program in order to
encourage more private investment in alternative energy; and
3. There is "no practical reason to limit the generation size to 25 kW.
COMMISSION DECISION AND FINDINGS
The Commission has thoroughly reviewed all the filings associated with Avista
Filing, including Staff and public comments. The Commission finds that Avista s request to
increase the maximum generating capacity that Schedule No. 63 (Net Metering) customers are
permitted to connect to A vista s system, from its current maximum of 25 kW to a maximum of
100 kW and up to an aggregate of 1.52 , is just and reasonable. Therefore, the Commission
approves the aforementioned revisions to Avista s Schedule No. 63 Tariff Sheet of IPUC Tariff
No. 28.
ORDER NO. 32029
CONCLUSIONS OF LAW
A vista Corporation is an electrical corporation as the term is defined in Idaho Code
61-119. The Commission has jurisdiction over A vista Corporation, an electrical corporation, and
the issues presented in this case pursuant to Title 61 of the Idaho Code.
ORDER
IT IS HEREBY ORDERED that Avista Corporation s Filing to increase the
maximum generating capacity that Schedule No. 63 (Net Metering) customers may connect to
Avista s system, from 25 kW to a maximum of 100 kW and up to a cumulative amount of 1.52
, is approved.
IT IS FURTHER ORDERED that Avista shall immediately file a conforming copy of
its new Schedule No. 63 Tariff Sheet of Tariff No. 28 reflecting the changes approved in this
Order.
THIS IS A FINAL ORDER. Any person interested in this Order (or in issues finally
decided by this Order) may petition for reconsideration within twenty-one (21) days of the
service date of this Order with regard to any matter decided in this Order. Within seven (7) days
after any person has petitioned for reconsideration any other person may cross-petition for
reconsideration. See Idaho Code 9 61-626.
ORDER NO. 32029
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 7 +"
day of July 2010.
JI . KEMPTON RES ENT
MARSHA H. SMITH, COMMISSIONER
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MACK A. REDFORD , CO MISSIONER
ATTEST:
O:A VU-IO-np2
ORDER NO. 32029