20020412Decision Memo.doc

DECISION MEMORANDUM

TO: COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMMISSIONER HANSEN
JEAN JEWELL
RON LAW
LOUANN WESTERFIELD
BILL EASTLAKE
TONYA CLARK
DON HOWELL
DAVE SCHUNKE
RICK STERLING
RANDY LOBB
LYNN ANDERSON
GENE FADNESS
WORKING FILE
FROM:
DATE:
APRIL 12, 2002 RE: CASE NO. IPC-E-02-04 (Idaho Power)
SCHEDULE 84—NET METERING—AMENDMENTS

On February 13, 2002 in Order No. 28951 in Case No. IPC-E-01-39, the Commission approved a Schedule 84 net metering tariff for the Company’s Schedule 1—Residential and Schedule 7—Small Commercial Customers. The Commission in its Order directed the Company to 1) file a net metering proposal for the Company’s remaining customers; 2) include provisions to allow larger generating facilities, between 100 kW and 125 kW, to offset their load and energy requirements under a net metering arrangement; 3) propose solutions to any safety, service quality and grid reliability concerns created by the required expansion of the net metering option; and 4) make specific proposals for monitoring program cost, cost recovery and related issues of subsidization.
On March 29, 2002, Idaho Power by way of compliance with Commission Order No. 28951 filed an Application in Case No. IPC-E-02-04 that presents a net metering proposal for the Company’s other customer classes. Under the Company proposed amendments, the Schedule 84 net metering tariff will:
Allow customers receiving retail service under schedules other than Schedule 1 or Schedule 7 to connect a generating resource they own or operate to the Company’s system to offset all or part of their electric consumption by means of a financial credit on their retail billing;
Allow the Company to continue to charge the net-metering customer with a demand component in its retail rates for the electrical demand its load places on Idaho Power‘s system;
Impose only those monthly charges provided for in the Company’s standard service schedule applicable to the net-metering customer;
Credit all energy provided in excess of the customer’s consumption at a price that does not result in a subsidy from other customers;
Permit generating projects with a capacity up to 100 kW to interconnect to the Company’s system in a safe and reliable manner;
Provide for broad-based access to customers to participate in net metering.

By proposing the above amendments to Schedule 84, Idaho Power states that it is making the net-metering option available to customers taking service under all service schedules who own and/or operate a generation facility that is fueled by solar, wind, biomass or hydropower, or represents fuel cell technology, is rated at 100 kW of nameplate capacity or less, and is interconnected to the Company’s system at the same interconnection point where the customer’s retail load is connected.
Under the proposed revisions to Schedule 84, customers taking service under schedules other than Schedule 1 and 7 will continue to utilize a standard utility meter that measures the customer’s demand and energy and a second meter will be installed to measure the energy provided by the customer’s generating facility. The Company will read both meters on a monthly basis and credit the energy generated by the customer’s generation facility against the customer’s energy consumption for retail billing purposes. In other words, the Company states, a customer will pay its normal demand and customer charges each month but all of the customer’s retail energy consumption could be offset by the customer’s generation.
If the customer’s energy generation exceeds its consumption, Idaho Power will pay the customer for such excess generation an amount per kWh equal to eighty-five percent (85%) of the market price for non-firm energy in the Pacific Northwest. By purchasing excess energy at market prices, Idaho Power states that it reduces the subsidy that otherwise might be paid under Schedule 84 if excess energy was purchased at full retail rate prices.
Idaho Power is proposing to make net metering service available under the amended Schedule 84 on a first-come, first-serve basis until the cumulative generation nameplate capacity of net metering systems for all customer classes connected to the Company’s system equals 2.9 MW. The Company is also proposing that no single customer be permitted to connect generation in excess of 580 kW (20% of the 2.9 MW cumulative nameplate capacity limit), and no more than 100 kW nameplate capacity can be installed at each meter point. This, the Company states, will ensure that the net metering option will be available to a wider spectrum of potential customers. If demand for net metering service exceeds the 2.9 MW limit, Idaho Power states that it will advise the Commission and the Commission can take such steps as it deems reasonable and in the public interest.
The Company’s Application is supported by direct testimony.
Idaho Power requests that its Application be processed under Modified Procedure, i.e., by written submission rather than by hearing. Reference Commission Rules of Procedure, IDAPA 31.01.01.201-204..
Commission Decision
Idaho Power has requested that its Application be processed pursuant to Modified Procedure. Does the Commission agree to the proposed procedure? If not, what is the Commission’s preference?

vld/MIPCE0204_sw

DECISION MEMORANDUM 2