20130531Larkin Rebuttal.pdf

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BEFORE THE TDAHO PUB],IC UTILITIES COMMISSION
IN THE MATTER OF THE APPL]CATION
OF IDAHO POWER COMPANY FOR
AUTHORITY TO MOD]FY ITS NET
METERING SERVICE AND TO INCREASE
THE GENERATION CAPACTTY LIMIT.
CASE NO. IPC-E-L2-27
IDAHO POWER COMPANY
REBUTTAL TESTIMONY
OE
MATTHEI/'I T. LARKIN
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o.
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Please
My name
Are you
state your name.
is Matthew T. Larkin
the same Matthew T.
direct testimony?
Larki-n that
previously presented
Have you had the opportunity to review the
pre-fi1ed direct t.estimony of the City of Boise's witnesses
Ms. Gassner, Mr. Woods, and Mr. Gill-iam; the Idaho Clean
Energy Association, Inc.'s ("ICEA") witnesses Mr. Dunay,
Mr. Elgethun, and Ms. White; the Idaho Conservation
League's ("ICL") witness Mr. Beach; Pioneer Power, LLC's
witness Ms. Cardwel-1; and the Idaho Public UtiLities
Commission ("Commission") Staff's ("Staff") witness Mr.
EIam?
Yes
Yes, I have.
What is the scope of your rebutta1 testimony?
My rebuttal testimony will begin with a
discussion of technical- issues raised by each party related
to the various components of Idaho Power Company's ("Idaho
Power" or "Company") proposed rate design and the use of
the class cost-of -servj-ce study in devel-oping these rates.
I wiII then discuss the parties' proposals related to the
treatment of excess net energy, and describe the Company's
proposed modifications to the kilowatt-hour (*kwh") credit
system detai1ed in its initial filing. My testimony will
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close with a description of proposed interconnection tariff
language resulting from settlement discussions between the
Company, Staff, and ICEA, and address the disputes raised
by the City of Boise's witness Mr. Gilliam.
I. RATE DESIGN A}ID COSE-OF.SERVICE
Commission Staff
0. Does Staff support the Company's proposed rate
design?
A.No. On page 4 Staff states five reasons why
it does not support the Company's rate design proposal:
(1) it singles out one small group of customers within
broader rate classes with similar customers, (2) it
includes a Basic Load Capacity ('BLC") charge which is new
for Residential and Smal1 General Service customers, (3) it
incents high usage standard service customers to install
sma11 generation facilities to qualify for more favorable
net metering rates, (4) it is based on a class cost-of-
servj-ce study that was never intended to be used for
changing base rates, and (5) the current overall dollar
impact of net metering is smal-l-.
O. Do you believe the Company's rate deslgn
unfai-rly singles out a small group of customers within a
broader rate class?
A. No. As discussed in the rebuttal testimony of
Mr. Gregory W. Said, state law indicates that different
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rates may be justifi-ed by factors such as cost of service
and the nature and pattern of electrical use. As Mr. Said
discusses in detail, the Company believes that net metering
customers should be considered a separate and distinct rate
class from standard Residential and Smal-1 General Service
customers, and shoul-d therefore be subject to different
rates.
O. Do you bel-ieve it is inappropriate for the
Commission to make a determination on the proposed BLC
charge because such a charge has never been i-mplemented for
Residential or Sma1l General- Service customers?
A.No. The BLC charge has been a billing
component for other rate classes for many years, and does
not present a new concept to the Commission. Prior to the
implementation of Advanced Metering Infrastructure ("AMf") r
more costly demand meters would have been required for
Residential and Smalf General Service customers to
implement demand-related charges. With the implementation
of AMI complete, the Company now has the ability to
implement these charges at minimal incremental cost. A1so,
as I will discuss l-ater in my testimony, the Company has
provided the Commission with the fuI1 class cost-of-servj-ce
study that details the fixed costs proposed for recovery
through the new BLC charges. With the necessary
infrastructure in place and the proposed costs clearly
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delineated, the Company believes the Commission has been
presented wlth all necessary information to make an
informed declsion regarding the proposed BLC charge.
o.Several parties in addition to the Staff
discuss the potential- for large energy users to take
advantage of the proposed lower energy charges for net
metering service through the installation of a minimal
generation resource. P1ease describe these concerns as you
understand them.
A. Under the proposed rates, costs associated
with the distributi-on system and customer services are
removed from volumetric energy rates and placed into the
Service Charge and BLC charge. Because the Company's
proposal is intended to be revenue neutral, energy rates
are lowered to reflect the shifting of costs to the new
proposed billing components. Because there is no minj-mum
system size associated with net metering service, several
parties have raised the concern that large energy users
could take advantage of the l-ower net metering energy rates
by installing a minimal renewable generation system and
moving to the proposed Schedule 6 or Schedule 8.
o.Did the Company identify this as a potential
concern prior to filing?
A. Yes. However, the Company decided it was
better to actively monj.tor new install-ations for such
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activity if the Company's proposed rates are approved
rather than propose a new restriction on the types of
systems allowed under net metering service. As many
parties have stated in this case, the Company is not
prohibited from making a filing if it feels 1ts tariffs are
in need of adjustment. In the event that an unintended
transfer between rate schedules is identified, the Company
could file to address any necessary changes at that time.
The Company bel-ieves this ability, coupled with the
proposed cap of 5.8 megawatts, provides adequate protection
from the situation described by the parties.
A1so, while the Company acknowledges that its
proposal does not currently contain a minj-mum system size,
lowering bil1s through the installatj-on of distributed
generation and shifting to a rate schedu.l-e that more
accurately reflects the cost of service is not necessarily
inappropriate.
O. Is the Company open to implementing tariff
language that would address the parties' concern regarding
large users?
A. Yes. In liqht of the parties' concern the
Company would not be opposed to the addition of new
language that would require systems to be of a minimum sLze
in order to be eligible for Schedule 6 or Schedule 8 rates.
Net metering customers with generation units that do not
LARKIN, REB 5
Idaho Power Company
1 meet this threshol-d would be required to remain on Schedule
2 84.
3 Q. Does the Company believe the parties' concern
4 related to large energy users is reason to reject its
5 comprehensive pricing proposal?
6 A. No. As described above, the unj-ntended
7 transfer between standard service rates and net meterj-ng
8 service rates could be addressed through the addition of
9 language to Schedules 6 and 8, and does not indicate a
10 systemic flaw in the comprehensive pricing proposal that
11 warrants rejection in its entirety.
12 0. Do you agree with Staff that the class cost-
13 of-service study utilized in this case is inappropriate for
t4 use in developing rates specific to net metering customers?
15 A. No. For Residential and Small General net
76 metering customers, the Company is proposing to shift
!7 recovery of fixed costs associated with the distribution
18 system and customer services from volumetric energy rates
L9 to the proposed BLC and Service Charge. Because the
20 Company is not suggestJ-ng that net meterJ-ng customers
27 currently impose more costs related to these components of
22 revenue requirement than standard service customers, the
23 corresponding fixed costs assocj-ated with net metering
24 service are appropriately reflected in the Residential and
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Small General Service classes within the Company's most
recently revj-ewed class cost-of-servj-ce study.
Further, as Mr. El-am states on page 18 of his
testimony, the Commission determined in Case No. IPC-E-11-
08 that the class cost-of-service study reviewed in that
case was appropriate to set fixed cost rates for over
400,000 Residential and Small- General- Service customers
through the Company's Fixed Cost Adjustment (*FCA")
mechanism. While the Company acknowledges that the parties
did not explicitly state that t.his study was appropriate
for broad rate design applications, the Company believes
its current proposal pertains to the same portion of the
study that was deemed fit for use in developing rates for
over 400r 000 Residential- and Small General- Service
customers. If the study was sufficient for such widespread
application, the Company believes it is sufficient to set
rates in this case utilizing the same approved fixed costs.
O. Do you agree with the parties' contention that
the potential for inequity resulting from current net
metering customers is smal-1, therefore no pricing changes
should be made at this time?
A. No. Several parties have suggested that
because the Company's net metering service is currently
smaIl, the issues identified by the Company should not be
addressed at this time. As Mr. Said discusses more fu1Iy
LARK]N, REB 1
Idaho Power Company
1 in his rebuttal testimony, the Company believes that
2 current net meterlng provislons are not scalable or
3 sustainable, and the delay of necessary changes would
4 likely create larger scale problems for all parties in the
5 future.
6 Q. In additj-on to the five reasons dj-scussed
7 above, Staff states on page 13 of its testimony that it
8 does not support the Company's rate design proposal because
9 it is being addressed outside of a general rate case. Do
10 you agree that the Company's proposed changes. should only
11 be consj-dered within the context of a general rate case?
12 A. No. As stated above, the Commj-ssion
13 determj-ned that the class cost-of-service study utilized by
L4 the Company in this filing was appropriate for determining
15 fixed costs for all Residential and Smal-I General Service
16 customers in the most recent general rate case. Because
l7 the Company's proposed pricing changes are specific to
18 fixed costs at the distribution and customer IeveI, and
19 because these costs are not materially different between
20 standard service and net meterj-ng customers, a general rate
2L case would provi-de the Commission with no additional cost
22 information that would contribute to a more i-nformed
23 decision regarding the proposed rate design.
24 Additlonally, due to the breadth of issues addressed
25 in a general rate case, the Company bel-leves the current
LARKIN, REB 8
Idaho Power Company
I case enhances the parties' and the Commission's ability to
2 thoroughly examine the vari-ous aspects of the Company's net
3 metering service without the distraction of a broad gamut
4 of issues unrelated to net metering. To illustrate, since
5 the initial filing of Case No. IPC-E-12-21 at the close of
6 November 2012, six parties have intervened aside from Staff
7 and the Company, hundreds of public comments have been
8 fiIed, and nine sets of testimony have been submitted not
9 counting the Company's initial filing or rebuttal. The
10 Company is concerned that the evaluation of its net
11 metering service within the context of a broad general rate
12 case will not realistically al1ow for a full vetting of all
l-3 related issues despite Staff's belief to the contrary.
t4 O. Mr. EIam states on page 20, line 4, that "the
15 proposal does not impact standard servj-ce customers, and
L6 consequently does nothing to address the potential inequity
L7 between net metering customers and standard service
18 customers." Do you agree with this statement?
19 A. No. While Mr. El-am is correct in stating that
20 standard servj-ce rates witl- not change as a result of this
2\ case, his contention that the Company's proposed rates do
22 nothing to address the potential for lnequity is incorrect.
23 O. Please explai-n.
24 A. As the Company discussed at the April 25
25 public workshop, the potential for inequity exists under
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the current net metering rate structure as it allows net
metering customers to avoid certain fixed costs through the
offset of billed energy at the fulI retail- rate, resulting
in the eventual- shifting of these costs to standard service
customers. The Company's proposed pricing structure limits
the ability of net metering customers to offset
distribution-related and customer-related fixed costs, thus
reducing the level of potential cost shifting to standard
service customers.
Mr. Elam's logj-c incorrectly assumes that because
standard service rates are not impacted immediately, the
Company's pricing proposal does nothing to address the
potential for inequity. This logic fails to recognize that
by eliminating the ability of net metering customers to
avoid certain costs, those costs wil-I not be shifted to
standard service customers in the future. The Company's
proposal addresses the potential impact of net metering
service on standard service customers before it becomes
Iarge enough to impact rates. If the Commission chooses to
adopt the Company's proposal in the current proceeding, the
potential for cost shifting to standard service customers
will be addressed immediately, negating the need to correct
rates in the future. The lack of an immediate impact to
standard service rates does not suggest that the inequity
is not addressed, j-t simply means the inequity is not
LARKIN, REB 10
Idaho Power Company
1 currently of a magnitude that impacts standard service
2 rates.
3 Idaho Clean Energry Association
4 Q. On page 9, Iine 20, of Ms. White's testimony
5 she states, "The inequity claimed by the Company is driven
6 by a few customers with excess generation; there is no need
7 for a new rate structure for net metering. " Do you have
8 any concerns with Ms. White's statement, or the analysis
9 she performed to arrive at this conclusion?
10 A. Yes. I believe Ms. White mischaracterizes
11 data provided by the Company to speculate that this filing
12 is motivated by payments to customers who generate excess
13 net energy. This data is presented by Ms. White in Exhibit
L4 Nos. 701 and 703.
15 O. Please describe Ms. White's Exhibit No. 701.
t6 A. Ms. White's Exhibit No. 701" contains an
L7 analysi-s provided by the Company in response to Staff's
18 Request No. 9. In this analysis, the Company utilized
19 actual billinq data from 2012 to estimate the overall bill
20 impacts to each current net metering customer if all
27 proposed changes had been implemented throughout 2012.
22 According to Exhibit No. 701, if applied throughout the
23 201,2 calendar year, the Company's proposed changes would
24 have resulted in an aggregate bill increase to net metering
25 customers of approximately $74,000. Ms. White identifies
LARKIN, REB 11
Idaho Power Company
1 this figure as the inequity the Company's filing j-s
2 intended to address.l
3 Q. Please describe Ms. White's Exhibit No. 703.
4 A. Utilizing the data presented in Exhibit No.
5 701, Exhibit No. 703 presents two charts that Ms. White
6 characterizes as representing "the degree to whlch the
7 issues raised by the Company were related to (1) customers
8 who use net metering only to offset their power bi1Is,
9 relative to (2) issues raj-sed by the Company related to
1O excess generation."2
11 O. What conclusions does Ms. V[hite draw from the
12 information presented in Exhibit Nos. 701 and 703?
13 A. On page 12, Iines 4 through 6, Ms. White
74 states, in bo1d, "The facts are, regardless of whether one
15 ag:rc!€ts or disagrees with the Company's concerns, those
16 concerns are driven by the treatnent of annual excess
1,7 generation." Whil-e not explicitly stated, I believe Ms.
18 White arrived at this conclusion by comparing the
79 approximate $61 000 she attributes to customers who only use
20 the system to offset usage to the remainder of the $74,000
2! she identlfies as the total potential for inequity. Based
22 on my reading of Ms. White's testimony, because the doll-ar
1 Case No. IPC-E-12-27, Direct Testimony of Ms. Courtney R. White, p.10, 11 . 9-19.
2 Case No. IPC-E-12-21, Direct Testimony of11, 11, 16-18.
Ms. Courtney R. White,
LARKIN, REB t2
fdaho Power Company
p.
1 amount she attributes to customers with excess net energy
2 Ls larger than that attributed to other net metering
3 customers, she believes the Company's concerns are driven
4 by customers responsible for the larger dollar figure.
5 Q. Do you believe Ms. White's conclusions
6 accurately reflect the Company's concerns?
1 A. No. Ms. White first mischaracterizes the root
8 cause of the potential for inequity, citl-ng excess net
9 energy rather than the pricing issues discussed in my
10 direct testimony. Then, based on this mischaracterization,
11 Ms. White inaccurately identifies the $74,000 figure as
t2 being representative of the inequity the Company's filing
13 is intended to correct.
14 O. Pl-ease explain.
15 A. As stated in my direct testimony, the
L6 potential for inequity is due to the application of
L7 standard retail rates to each kWh produced by a net
18 metering system, which is not directly related to the
L9 amount of excess net energy a customer may produce. While
20 the treatment of excess net energy can exacerbate this
21 problem by allowing customers to recej-ve additional
22 compensation at the full- retail rate if they generate more
23 than they consume, pricing is the root cause.
24 Ms. White's failure to recognize the root cause of
25 this inequity results in an incorrect characterization of
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the doll-ar figures presented in Exhibit No. '707, as these
figures reflect not only the proposed pricing changes
intended to correct the potential for inequity, but a.l-so
the replacement of financial- excess net energy credits with
kwh credits, the December expiration of unused kwh credits,
and the application of weather-normalized rates to actual
billing data from a single year. Because the potential for
inequity is driven by pricing, and because the values
contaj-ned in Exhibit No. 701 do not effectively isolate the
impact of the Company's pricing proposal, I do not believe
the $74,000 figure represents the potential for inequity as
Ms. White contends.
Even if Ms. White had correctly quantified the
potential inequity, however, the resulting do1lar figure
would provide little insight into the motivation behind the
Company's proposal. Attached as Exhibit No. 6 is a sl-ide
from the Company's presentation given at the public
workshop on April 25. This slide dj-scusses the rationale
for the Company's pricing proposal as fo1lows, "the company
does not believe the current o350 net metering customers
are impacting rates. The company's proposal is intended to
put in place pricing that can facilitate widespread
expansion." More speciflcally, the Company acknowledges
that pricing issues associated with net metering service
are not materially impacting standard service customers
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based on current particlpation. As stated in the Company, s
initial filing and the above-referenced presentation, the
Company's pricj-ng proposal is designed to accommodate the
growth of net metering servj-ce and address the shifting of
costs from net metering customers to standard service
customers before it grows to the point at which corrections
or rate j-nequities impact larger numbers of customers. The
Company maintains that its primary objectivesr ds stated in
its initial filing, are intended to accommodate growth, and
cannot be evaluated according to the aggregate impact of
the proposed filing on current net metering customers.
City of Boise
a. In regard to the proposed charges contained in
Schedules 6 and 8, Mr. Gilliam states, "fn addition to not
knowing which costs (by FERC account or otherwise) are
being proposed for recovery by these new charg€S, no
analyses have been provided to support the assignment of
these costs to new collection parameters. "3 Do you agree
with this statement?
A.No. f believe the Company has clearly
delineated which costs are proposed to be recovered through
the charges l-lsted in Schedules 6 and 8.
0.Please explain.
3 Case No. IPC-E-L2-21, Direct Testimony ofrt_. 1-3.
Mr. Rick GiJ-1iam, p. 24 ,
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A.In my direct testimony I described the use of
the Company's most recently reviewed class cost-of-service
study from Case No. IPC-E-11-08 as the basis for the
proposed rates in Schedules 6 and 8. This study is
publicly available on the Commj-ssion's website and was
reviewed by a number of parties 1n Case No. IPC-E-11-08.
More importantly, in response to Staff's Request No. 1-, the
Company provi-ded to al-1 parties the fu1l class cost-of-
service model in electronic Exce1 format, with l-inks and
formul-as intactr ds well as an additional working
spreadsheet detailing how the study results were used to
calculate the proposed rates in Schedules 5 and 8. This
response also included a written description of the
functions served by each Exce1 file in the cost allocation
and rate design process. These models listed each and
every component of the Company's Idaho revenue requirement
by Federal Energy Regulatory Commission (*FERC") account,
and stepped through the class al-location and rate design
process in its entirety. I have again provided the class
cost-of-service study from Case No. IPC-E-11-08 as Exhibit
No. 7 to my rebuttal testimony, with all workpapers
provided i-n response to Staf f Request No. 1.
II. EXCESS NET EIIERGY
O. Have you read the parties' proposals in regard
to the treatment of excess net energy?
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A. Yes.
0. Please summarize these proposals as you
understand them.
A.Pioneer Power, LLC: Ms
with the Company's proposal to expire
the end of December, citing the impact
Cardwell disagrees
unused kWh credlts at
it would have on
irrigation cust.omers who consume relatively less energy
beyond the month of September. Under such a scenario, Ms.
Cardwell contends, irrigation customers with accrued
credits in September and beyond would be very limited in
their ability to offset future bills prior to expiration.
Ms. Cardwel-l- also descrj-bes an alternative approach in
which excess energy credits would be carried forward
indefinitely. When a customer moves or sells the
generation facility, the customer would have the ability to
enter into a one-time contract to seIl excess credits to
Idaho Power at the then-prevai-ling avoided cost rate.
City of Boise: Mr. Gilliam proposes to carry
forward energy credits for net excess generation in lieu of
financial payments, with an annuaf true-up date of March
31. At the annual true-up date, customers would be
financially compensated for net excess generation at an
avoided cost rate. Mr. Gilliam also proposes the
continuous rollover of excess generatj-on credits at the
customer' s discretion.
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ICEA: Mr. Elgethun proposes that a financial value
be applied to excess net energy on a monthly basis
accordj-ng to the highest rate tier for the month in which
the excess energy is generated. Mr. Elgethun also believes
the financial credit should include all rate speclfic
adjustments applied in each month. Mr. Elgethun proposes
an indefinite carryover of fj-nancial credits, or a minimum
of three years should the Commission determine that a time
limit is appropriate. If such a limit is established, Mr.
Elgethun believes that unused excess generation credits
should be sold to Idaho Power at the current avoided cost
rate. Mr. Elgethun al-so believes customers should be able
to sell their power to the Company at any time at the
current avoided cost rate.
Commission Staff: Mr. El-am believes the Company
should continue crediting customers on a financial basis
utilizing the full- retail- rate. He believes financial
qredits should carry forward indefinitely, but Idaho Power
shoul-d never reconcile the excess net energy baLance with
financial payments. Staff also believes there are
reasonable approaches to establishing a limited timeframe
over which credits can accumulate, but does not detail a
specific proposal.
O. Please provide your thoughts on the proposed
indefinite carryover of credits.
LARKIN, REB 18
Idaho Power Company
1 A. As Mr. Said describes more ful1y in his
2 rebuttal testimony, the intent of net metering service is
3 to all-ow customers the ability to offset all- or a portion
4 of their usage through sel-f-owned generation. The
5 indefinite carryover of credits, however, does not align
6 with this intent. As Staff witness Mr. Elam acknowledges
7 on page 28, line 19, of his testimony:
I Because the purpose of net metering is9 to allow customers to offset their10 usage, net metering customers should11 theoretically not accrue substantial-72 credits over the Iong term. Customers
13 who do accumulate substantial credits74 should arguably not be on the net
15 metering tarlff but should instead be
16 on Schedul-e 86l'l
18 The Company agrees with this statement and believes
19 the current net metering tariff l-acks any provision that
20 preserves the intent of this service as an avenue to offset
2L consumption. The Company believes that any proposal that
22 a1lows substantial generation to accrue in excess of
23 consumption misaligns the provisions of net metering
24 service with its intent, and is therefore inappropriate.
25 O. Has Idaho Power reconsidered its proposed
26 December cutoff date for unused excess net energy credits?
21 A. Yes. While the Company's initial proposal was
28 modeled after currently-approved billing practices applied
29 within the state of Idaho, it bel-ieves the concerns voiced
30 by customers and lntervening parties warrant a modification
LARKIN, REB 19
Idaho Power Company
1 to address this j-ssue. Rather than a December expiration
2 of credits, the Company proposes to all-ow customers to
3 self-select their annual anniversary date for credit
4 expiration to coincide with the monthly billing cycle of
5 their choice. This would al-low customers to choose an
6 annual accumulation cycle that would provide for maxj-mum
7 utilization of excess net energy credits, while preserving
8 the intent of net metering service as an avenue to offset
9 consumpti-on. The Company has discussed this revised
10 proposal with its Customer Service department and believes
11 its new billing system wil-l- be able to adequately bill in
1,2 this manner.
13 O. Does Idaho Power support the proposal to
L4 convert excess net energy credj-ts to payments at avoj-ded
15 cost rates?
1,6 A. No. The Company does not believe it is
11 appropriate to pay customers at avoided cost rates for
18 excess net energy for two primary reasons. First, the
L9 Company believes that Iega1Iy it cannot fi-nancially
20 compensate net metering customers without subjecting both
27 parties to federal regulation. These Iega1 concerns are
22 addressed in more detail in Mr. Said's rebuttal testimony.
23 Second, the ability to exchange excess generation for
24 payments at avoided cost rates misaligns compensation under
25 net metering service with its intent, blurring the line
LARKIN, REB 20
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between retail customers who wi-sh to offset usage and
wholesale sellers seeking compensation at avoided cost
rates. Owners of smaII renewable generation can gain
access to avoided cost rates, but net metering 1s not the
appropriate avenue. Allowing customers to access avoided
cost rates through net metering would circumvent the
Commission's established regul-ations for wholesale
projects, and al-low customers to take advantage of rates
that were not intended for application to net metering
service.
O. Does the proposal to maintain a financial
crediting system alleviate the Company's concerns in regard
to the costs that net metering customers are able to
offset ?
A. No. In effect, financial credits allow
customers who generate more than they consume to reduce
their bitls to zero (or less than zero), thus aIlowi-ng them
to avoid paying for equipment and services they utilize.
Alternatively, a kWh credit system only allows net metering
customers to offset the portion of their bills associated
with per-kWh energy charges.
Even if the Commission approves the Company's
proposed pricing, under a financial crediting system
customers would stilI be able to offset the proposed
Service Charge and BLC charge that are designed to ensure
LARKTN, REB 27
Idaho Power Company
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that net metering customers pay a share of the costs
assocj-ated with equipment and services they utilize.
Further, the Company's Energy Efflciency Rider, which is
utilized to fund energy efficiency programs, and franchise
fees, which are fees imposed by various municipalities, are
both collected as a percentage of base revenue.
Consequently, customers who reduce their base charges to
zero through financial- credlts can avoj-d contributing to
energy efficiency programs and municipal fees, in addition
to avoiding the costs of distribution infrastructure and
customer services. For these reasons, the Company believes
that a kwh credit system should be implemented to ensure
that customers are only able to offset the portion of their
bills associated with per-kWh energy charges.
o.Please summarize the Company's revised
proposal in light of the counter proposals made by the
intervening parties and comments from the public.
A.The Company proposes to revise the excess net
energy credit system described in its initial- application
to a1low customers to self-select the annual expiration
date of unused kWh credits. However , for reasons stated
above, the Company maintains that a kWh credit system
shoul-d be implemented in lieu of the existing financial
credit system, and that only per-kWh energy charges should
be eligible for offset.
LARKIN, REB 22
Idaho Power Company
rII. INTERCO}INECTION
O. What was the intent of the Company's proposed
3 modifications to the interconnection components of its net
4 metering tariff schedul-es?
A. As stated on pages 29 and 30 of my direct
6 testimony, the proposed administrative tariff changes were
7 intended to, "improve clarity, customer understanding, and
I the Company's ability to provide net metering service j-n an
9 efficient, safe, and reliable manner."
10 O. Did any partj-es voice concern over the
11 Company's proposed lnterconnection modifications prior to
L2 the filing of direct testimony on May 10, 20\3?
13 A. Yes. At the public workshop on April 25, a
L4 member of the ICEA voiced concerns regarding the Company's
15 proposed modifications. It is my recol1ection that his
L6 concerns were related to increased complexity and
L7 administrative burdens for installers and customers, among
18 other issues.
19 O. Were these issues discussed among parties
20 following the public workshop?
2L A. Yes. On Monday, April 29, 20!3, a settl-ement
22 conference was held among all parties to this case.
23 Although a comprehensive settlement was not reached, the
24 parties agreed to discuss interconnectj-on concerns at a
25 separate conference in order to work toward agreement on
LARKIN, REB 23
Idaho Power Company
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these issues prior to the May 10 deadline for Staff and
intervener testimony.
O. Who chose to participate in this j-nformal-
conference?
A.Representatives from Staff, ICEA, and fdaho
Power participated in this discussion.
testimony, parties were abl-e to reach a number of
resolutions on the technical- details of i-nterconnection and
the proposed language for Schedul-e 72, as outlined in
Exhibit No. 8. Idaho Power concurs with ICEA's
recoflrmendation that the Commj-ssion approve the proposed
modified interconnection provisions negotj-ated with input
from ICEA as detailed in this exhibit.
What was the outcome of this di-scusslon?
As stated on page 11 of Mr. Elgethun's
Please describe Exhibit No. 8.
Exhibit No. 8 contains a document distributed
to Staff and ICEA on May 8, 2013, detailing the outcome of
the settlement conference regarding the Company's proposed
interconnection provisions. This document describes the
issues addressed by participating parties at this
conference, and details specific resolutions that were
reached for many of these issues. Eor some issues,
resolutions were reached in principle while the specific
detail-s were not finalized by the testimony deadlj-ne, while
LARKIN, REB 24
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for other issues it was determined that no further
modifications are necessary. To provide the Commission
with the complete context of the proposed resolutions, the
Company has provided the document distributed between
parties in its entirety. Should the Commission choose to
approve the Company's proposed interconnection language and
incorporate the resolutions presented in Exhibit No. 8 as
the Company and ICEA suggest, the Company will work with
interested parties to finalize the details of these
resolutions and file conforming tariff language.
o.Did any parties raise interconnectlon issues
in testimony filed May 10?
A.Yes. Surprisingfy, Mr. Gilliam raised a
number of concerns with the Company's proposed
interconnection issues, and recommends that the Commission
reject the Company's proposal and open a new docket to
further discuss the j-nterconnection process.
Why is this surprising?
The City of Boise and Mr. Gilliam participated
in both the public workshop on April 25 and the settl-ement
conference on April 29. They did not, however, choose to
participate in the discussion specifically intended to
address parties' concerns with the proposed interconnection
language. It is surprising that ICEA, Idaho Power, and
Staff, were abl-e to come to agreement on these issues,
LARKIN, REB 25
Idaho Power Company
1 while the City of Boise opted to recommend comprehensive
2 reSection of this component of the Company's filing through
3 written testimony.
O. Vfhat is Mr. Gilliam's concern regarding the
5 feasibllity study required of net metering installations?
A. Mr. Gilliam's concern references page L2,
7 paragraph 2, of the proposed Schedule 72, which describes
8 the applicability of FERC-approved Large Generator
9 Interconnection Procedures and Smal1 Generator
10 Interconnection Procedures. In this di-scussion of Schedule
11 12, Mr. Gilliam addresses the lack of a fast track
12 screening process, stating, "Schedule 12 has no
13 screening process and subjects all interconnecting systems,
L4 no matter how smal-I, to a feasibility study, generally
15 costing thousands of d.oIl-ars. "a
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O. Do you share Mr. Gilliam's concern?
A. No. The paragraph referenced by Mr. Gilliam
18 has no applicability to net meterJ-ng systems.
O. Pl-ease explain.
A. As stated above, one of the objectives of the
19
20
2l Company's proposed interconnection modifications was to
22 improve clarity and understanding. As, the Company was
23 revising Schedule 72, one of the concerns that was
24 identified was confusion regarding which portions of
4 Case No. IPC-E-12-27, Direct Testimony of Mr. Rick Gilliam, p. 29,r1. 8-10.
LARKIN, REB 26
Idaho Power Company
1 Schedule 12 were applicable to net metering systems and
2 which portions were not. Within the currently-approved
3 Schedule 72, requirements of net metering systems are
4 interspersed throughout the entire 29-page tariff, and are
5 comingled with requirements that are only applicable to
6 non-net metering systems. To enhance clarlty and simplify
7 the tariff for customers, Staff, i-nstallers, and Company
8 personnel, the Company's proposed Schedule 12 was divided
9 into three sections: (1) General Interconnection
10 Requirements; (2) Interconnection of Net Metering
11 Generation Facil-ities; and (3) fnterconnection of Non-Net
12 Metering Generation Facilities. Through this
13 reorganJ-zation, all requirements applicable to net metering
14 systems were consol-idated to the first ten pages of the
15 tariff . The paragraph referenced by Mr. Gil-l-iam is located
16 on page 1,2 of the proposed tariff, within Section 3,
1,7 Interconnection of Non-Net Metering Generation Facilities.
18 This section is outside the realm of provisions governing
L9 net metering and the scope of this case.
20 O. Are net metering customers subject to "a
2l feasibil-i-ty analysis, generally costing thousands of
22 dol-1ars"?s
23 A. No. Mr. Gilliam is correct in stating that
24 al-l net metering customers are subject to a Net Meterlng
s Case No. IPC-E-12-2'7, Direct Testimony of Mr. Rick Gilliam, p.
29, Il_ . 9-10.
LARKIN, REB 21
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Feasibility Review, which must be performed "to ensure that
the Company's system is sufficiently equipped to
incorporate proposed Net Metering Systems in a manner that
conforms with good utility practices and the National
Electric Safety Code."6 This review, however, does not
generally cost thousands of dofl-ars, and is separate and
distinct from the requirements of non-net metering systems.
Although it is uncfear if Mr. Gilliam believes that net
metering customers may potentially be charged thousands of
dollars for a feasibility review, customers are currently
charged a flat fee of $100 for the net metering application
process, which j-ncludes the Net Metering EeasibiJ-ity
Review.
o.Does Mr. Gilliam ralse a number of concerns
and Idaho Power 1n thethat were addressed by ICEA, Staff,
agreement outlined in Exhibit No. 8?
A. Yes. Mr. Gilliam expresses concern regarding
time requirements for various components of the application
process, the requirement for visual conductor separation,
circumstances in which a customer may be disconnected, and
the $100 fee for system modifications. AII of these issues
were discussed between ICEA, Staff, and Idaho Power, and
were resolved to the participating parties' satisfaction,
resulting in the agreement provl-ded in Exhibit No. 8.
Case No. IPC-E-12-27, Larkin Exhibit 4, p. 72-2.
LARKTN, REB 28
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O. Does the Company be1ieve the Commission should
reject the Company's proposed changes to Schedule 72 based
on Mr. Gilliam's recommendation?
A.No. Idaho Power be]ieves Mr. Gill-iam's
concerns were either not applicable or addressed through
productive discussions with Staff and ICEA, resulting in an
agreement that is satisfactory to parties representing the
Company, the public, and commercial installers of net
metering systems. Mr. Gil-l-iam's and the City of Boise's
decision to not participate in these discussj-ons should not
be cause to reject this agreement.
o.Do you believe the Commission shoul-d open a
new docket to address issues associated with
i-nterconnection?
A.No. The Company believes its discussions with
ICEA and Staff were noticed to the parties and productive
in formj-ng a mutually agreeable sol-ution to identified
areas of concern associated with interconnection. Whil-e
the partles to this case may disagree in principle
regarding a number of other issues surrounding net metering
service, the Company believes that issues associated with
interconnection are best addressed through informal-
discussions and col-laboration. The Company believes that
all parties share the common goal of implementing an
interconnection process that is streamlj-ned, customer-
LARKfN, REB 29
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friendly, and efficient for all parties involved, J-n a
manner that does not compromise safety or reliability.
Given these shared goaIs, the Company believes informal
collaboration is the proper arena in which to address these
issues. The Company is always open to discussj-on with ICEA
and other interested parties if concerns arise surrounding
its interconnection procedures.
Does this concLude your rebuttal- testimony?
Yes, it does.
LARKIN, REB 30
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ATTESTATION OE TESTIMONY
srArE oF rDAHo i _^,l DD'
County of Ada )
7, Matthew T. Larkin, having been duly sworn to
testify truthfully, and based upon my personal knowledge,
state the followl-ng:
I am employed by Idaho Power Company as a Regulatory
Analyst in the Regulatory affairs Department and am
competent to be a witness in this proceeding.
I declare under penalty of perjury of the laws of
the state of ldaho that the foregoing rebuttal testimony
and exhibits are true and correct to the best of my
information and belief.
DATED this 31"t day of May, 2073.
SUBSCRTBED AND
May, 2073.
Matthew T. Larkin
SWORN to before me this 31=t day of
for Idaho
My commission expires:
LARKIN, REB 31
fdaho Power Company
INotary Pub)z{c
Residing aE:rror4f,.r.
.-a-
etrp;1C
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on this 31"t day of May 2013 I served a true and correct
copy of the within and REBUTTAL TESTIMONY OF MATTHEW T. LARKIN, upon the
following named parties by the method indicated below, and addressed to the following:
Commission Staff
Karl T. Klein
Deputy Attomey General
ldaho Public Utilities Commission
472 W est Washington (83702)
P.O. Box 83720
Boise, ldaho 83720-007 4
ldaho Conservation League
Benjamin J. Otto
ldaho Conservation League
710 North Sixth Street (83702)
P.O. Box 844
Boise, ldaho 83701
PowerWorks LLC
Chris Aepelbacher, Project Engineer
PowerWorks LLC
5420 West Wicher Road
Glenns Ferry, ldaho 83623
Pioneer Power, LLC
Peter J. Richardson
RICHARDSON & O'LEARY, PLLC
515 North 27h Street (83702)
P.O. Box 7218
Boise, ldaho 83707
John Steiner
24597 Collett Road
Oreana, ldaho 83650-5070
City of Boise
R. Stephen Rutherford
Chief Deputy City Attorney
Boise City Attomey's Office
150 North Capita! Boulevard
P.O. Box 500
Boise, ldaho 83701 -0500
CERTIFICATE OF SERVICE
Hand Delivered
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John R. Hammond, Jr.
BATT FISHER PUSCH & ALDERMAN, LLP
U.S. Bank Plaza, Tth Floor
101 South Capitol Boulevard, Suite 701
P.O. Box 1308
Boise, ldaho 83701
ldaho Clean Energy Association lnc.
Dean J. Miller
McDEVITT & MILLER LLP
420 West Bannock Street (83702)
P.O. Box 2564
Boise, ldaho 83701
Board of Directors
ldaho Clean Energy Association lnc.
P.O. Box 1212
Boise, ldaho 83701
Snake River Alliance
Ken Miller, Clean Energy Program Director
Snake River Alliance
P.O. Box 1731
Boise, ldaho 83701
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CERTIFICATE OF SERVICE
BEFORE THE
IDAHO PUBLIC UTILITIES GOMMISSION
GASE NO. IPC-E-12-27
IDAHO POWER COMPANY
LARKIN, REB
TESTIMONY
EXHIBIT NO.6
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Exhibit No. 6
Case No. IPC-E-',2-27 lo
M. Larkin, IPC N
Page 1 of 1
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BEFORE THE
IDAHO PUBLIC UTILITIES GOMMISSION
GASE NO. IPG-E-12-27
IDAHO POWER COMPANY
LARKIN, REB
TESTIMONY
EXHIBIT NO.7
REQUEST NO. 1: On pages 18-19 of Matt Larkin's testimony, he says "utilizing
the results of the Company's most current class cost-of-service study that was reviewed
in Case No. IPC-E-11-08, Schedule 6 and Schedule 8 reflect three primary
modifications to the collection of revenue requirement from Residential and Small
General Service net metering customers." Please provide the cost-of-service study
used to develop the proposed modifications. As part of your response, please explain
how the results of this study were specifically used to design rates.
RESPONSE TO REQUEST NO. 1: The Excel files AS Model- SI/P IPC-E-11-
08.xls ("AS Model") and FC Model- SI/P IPC-E-I1-08.xls ("FC Model") provided on the
enclosed CD represent the class cost-of-service study reflecting the stipulated results of
the Company's last genera! rate filing, Case No. !PC-E-11-08. The entire study is
summarized on the "Unit Cost by Schedule' worksheet of the FC Model, which was
utilized to design the Company's proposed rates. The "Unit Cost by Schedule"
worksheet contains the Company's overall revenue requirement by customer class,
subdivided into the various operating functions (production, transmission, distribution)
and classifications (demand-related, energy-related, customer-related).
The utilization of the class cost-of-service study to design the Company's
proposed rates is demonstrated in the Excelfile Nef Meter Rate Development.xlsx, also
provided on the enclosed CD. The first worksheet in this file, '!PC-E-11-08," contains a
summary of the functionalized classified revenue requirement from the class eost-of-
service study contained in the "Unit Cost by Schedule" worksheet of the FC Model.
Column 1 of the "IPC-E-11-08" worksheet indicates the corresponding row numbers
IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY.2 Exhibit No. 7
Case No. IPC-E-12-27
M. Larkin, IPC
Page 1 of235
from the detailed "Unit Cost by Schedule" worksheet that were summed to arrive at the
revenue requirement amounts listed in column 2 of the "lPC-E-1 1-08" worksheet.
Columns 3 and 4 of the'IPC-E-11-08" worksheet adjust the cost-of-service
results to reflect the final approved revenue requirement by rate class from the ldaho
Public Utilities Commission's Final Order No. 32426 in Case No. IPC-E-11-08. Because
the settlement stipulation in Case No. !PC-E-11-08 resulted in a uniform percentage
increase to all rate classes, final approved revenue requirement amounts did not sum to
the class cost-of-service totals contained in the FC Model. Therefore, to properly
calculate rates in a manner consistent with the Company's approved revenue
requirement, columns 3 and 4 uniformly adjust the functionalized classified components
of the cost-of-service revenue requirement to reflect the final approved revenue
requirement that was ultimately used to set rates. Through this calculation, the
Company was able to determine the level of customer-related and demand-related
revenue requirement associated with the distribution system that is embedded in energy
rates currently in effect.
The 'Rate Design" worksheet in the Net Meter Rate Development.xlsx Excel file
calculates the Company's proposed Schedule 6 and Schedule 8 rates based on the
values contained in column 4 of the "IPC-E-11-08" worksheet. Column 1 of this
worksheet reflects billing units used to set the Company's currently-approved base rates
established in Case No. IPC-E-12-14. Column 2 contains current residential and small
general service rates, while column 3 calculates the Company's currently approved
revenue requirement by applying current rates to the billing units contained in column 1.
IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 3 Exhibit No. 7
Case No. IPC-E-12-27
M. Larkin, IPC
Page 2 of 235
Column 4 details the adjustments made to the current revenue requirement to
calculate rates for the proposed Schedules 6 and 8 by shifting customer-related and
demand-related revenue requirement associated with the distribution system from the
per kilowatt-hour ("kwh') energy charges into the proposed service charge and basic
load capacity ("BLC') charge, respectively. As detailed in column 4, revenue
requirement associated with the Service Charge and Basic Load Capacity charge was
adjusted upward, while revenue requirement associated with the per kWh energy
charges was adjusted downward, resulting in (1) a service charge that reflects the full
customer-related cost-of-service, (2) a BLC charge that reflects the full demand-related
cost-of-service associated with the distribution system, and (3) energy charges that
reflect the remaining components of revenue requirement. As detailed on lines 17 and
38 of column 4, this adjustment resulted in zero net impact to the overall revenue
requirement associated with each rate class.
Column 5 contains the final revenue requirement reflecting the adjustments
described above, while column 6 contains the Company's final proposed rates.
The response to this Request was prepared by Matthew T. Larkin, Regulatory
Analyst ll, ldaho Power Company, in consultation with Lisa D. Nordstrom, Lead
Counsel, ldaho Power Company.
IDAHO POWER COMPANY'S RESPONSE TO THE FIRST PRODUCTION
REQUEST OF THE COMMISSION STAFF TO IDAHO POWER COMPANY - 4 Exhibit No. 7
Case No. IPC-E-12-27
M. Larkin, IPC
Page 3 of 235
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Case No. IPC-E-12-27
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Page 4 of 235
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Page 5 of 235
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Page 33 of 235
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M. Larkin, IPC
Page 34 of 235
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Page 35 of235
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Case No. IPC-E-12-27
M. Larkin, IPC
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M. Larkin, IPC
Page 46 of 235
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M. Larkin, IPC
Page 47 ol 235
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Case No. IPC-E-12-27
M. Larkin, IPC
Page 48 of 235
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M. Larkin, IPC
Page 49 of 235
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Case No. IPC-E-12-27
M. Larkin, IPC
Page 50 of 235
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Case No. IPC-E-12-27
M. Laftin, IPC
Page 51 of235
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Page 65 of 235
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Page 67 of 235
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M. Larkin, IPC
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M. Larkin, IPC
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Case No. IPC-E-12-27
M. Larkin, IPC
Page 71 of 235
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Case No. IPC-E-12-27
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Case No. IPC-E-12-27
M. Larkin, IPC
Page 73 of235
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Case No. IPC-E-12-27
M. Larkin, IPC
Page 74 of 235
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Case No. IPC-?-12-27
M. Larkin, IPC
Page 75 of 235
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Case No. IPQ-E-12-27
M. Larkin, IPC
Page 76 of 235
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Case No. IPC-E-12-27
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Case No. IPC-E-12-27
M. Larkin, IPC
Page 78 of 235
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M. Larkin, IPC
Page 79 of 235
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M. Larkin, IPC
Page 80 of 235
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M. Larkin, IPC
Page 81 of 235
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Case No. IPC-E-12-27
M. Larkin, IPC
Page 82 of 235
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Case No. IPC-E-12-27
M. Larkin, IPC
Page 83 of 235
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Case No. IPC-E-12-27
M. Larkin, IPC
Page 84 of235
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M. Larkin, IPC
Page 89 of 235
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Page 92 of 235
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M. Larkin, IPC
Page 93 of 235
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Case No. IPC-E-12-27
M. Larftin, IPC
Page 94 of 235
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Page 95 of 235
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Case No. IPC-E-12-27
M. Larkin, IPC
Page 96 of 235
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Case No. IPC-E-12-27
M. Larkin, IPC
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Case No. IPC-E-12-27
M. Larkin, IPC
Page 99 of 235
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Case No. IPC-E-12-27
M. Larkin, IPC
Page 100 of 235
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Case No. IPC-E-12-27
M. Larkin, IPC
Page 101 of235
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Case No. IPC-E-12-27
M. Larkin, IPC
Page 102 of 235
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Case No. IPC-E-12-27
M. Larkin, IPC
Page 1 03 of 235
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M. Larkin, IPC
Page 1 04 of 235
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Case No. IPC-E-12-27
M. Larkin, IPC
Page 1 05 of 235
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M. Larkin, IPC
Page 1 06 of 235
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Case No. IPC-E-12-27
M. Larldn, IPC
Page 1 07 of 235
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Case No. IPC-E-12-27
M. Larkin, IPC
Page 1 08 of 235
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Case No. IPC-E-12-27
M. Larkin, IPC
Page 1 09 of 235
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Case No. IPC-E-12-27
M. Larkin, IPC
Page 1 10 of 235
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Case No. IPC-E-12-27
M. Larkin, IPC
Page 111 of235
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Case No. IPC-E-12-27
M. Larkin, IPC
Page 1'12 o1235
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Case No. IPC-E-12-27
M. Larftin, IPC
Page113of235
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Case No. IPC-E-12-27
M. Lartin, IPC
Page 114 of235
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Case No. IPC-E-12-27
M. Larkin, IPC
Page 1 '15 of 235
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Case No. IPC-E-12-27
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Page 1 16 of 235
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Case No. IPC-E-'12-27
M. Larkin, IPC
Page I17of235
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Case No. IPC-E-12-27
M. Larkin, IPC
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M. Larkin, IPC
Page 119 of235
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Case No. IPC-E-12-27
M. Larkin, IPC
Page 1 20 of 235
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Case No. IPC-E-12-27
M. Larkin, IPC
Page 121 of235
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M. Larkin, IPC
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Case No. IPC-E-12-27
M. Larkin, IPC
Page 1 23 of 235
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M. Larkin, IPC
Page 124 of 235
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M. Larkin, IPC
Page 125 of 235
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Case No. IPC-E-12-27
M. Larkin, IPC
Page 126 of235
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Case No. IPC-E-12-27
M. Larkin, IPC
Page127 ot235
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M. Larkin, IPC
Page 128 ol 235
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Case No. IPC-E-12-27
M. Larkin, IPC
Page '130 of 235
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M. Larkin, IPC
Page 13'l of 235
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Case No. IPC-E-12-27
M. Larkin, IPC
Page 1 32 of 235
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Case No. IPC-E 12-27
M. Larkin, IPC
Page 133 of 235
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Case No. IPC-E-'12-27
M. Larkin, IPC
Page 1 34 of 235
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Case No. IPC-E-12-27
M. Larkin, IPC
Page 135 of 235
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Case No. IPC-E-'12-27
M. Larkin, IPC
Page 136 of 235
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Case No. IPC-E-12-27
M. Larkin, IPC
Page 137 of235
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Case No. IPC-E-12-27
M. Larkin, IPC
Page '138 of 235
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Case No. IPC-E-12-27
M. Larkin, IPC
Page '139 of 235
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Case No. IPC-E-12-27
M. Larkin, IPC
Page 1 40 of 235
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Case No. IPC-E:12-27
M. Larkin, IPC
Page 141 of235
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Case No. IPC-E-12-27
M. Larkin, IPC
Page 142 ot 235
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Case No. IPC-E-12-27
M. Larkin, IPC
Page'143 of 235
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Case No. IPC-E-12-27
M. Larkin, IPC
Page'144 ot235
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Case No. IPC-E-12-27
M. Larkin, IPC
Page 145 of235
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Case No. IPC-E-12-27
M. Larkin, IPC
Page 1 46 of 235
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Case No. IPC-E-12-27
M. Larkin, IPC
Page 147 of 235
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Exhibit No. 7
Case No. IPC-E-12-27
M. Larkin, IPC
Page '148 of 235
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Case No. IPC-E-12-27
M. Larkin, IPC
Page 149 of235
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Exhibit No. 7
Case No. IPC-E-12-27
M. Larkin, IPC
Page 150 of 235
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Exhibit No. 7
Case No. IPC-E-12-27
M. Larkin, IPC
Page 151 of235
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Case No. IPC-E-12-27
M. Larkin, IPC
Page 1 52 of 235
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Exhibit No. 7
Case No. IPC-E-12-27
M. Larkin, IPC
Page 1 53 of 235
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Case No. IPC-E-'12-27
M. Larkin, IPC
Page 1 54 of 235
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Case No. IPC-E-12-27
M. Larkin, IPC
Page 1 55 of 235
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Page 1 56 of 235
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M. Larkin, IPC
Page 1 57 of 235
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Page 1 58 of 235
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Case No. IPC-E:12-27
M. Larkin, IPC
Page 1 59 of 235
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Page 160 of 235
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Case No. IPC-E-12-27
M. Larkin, IPC
Page 16'l of 235
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Case No. IPC-E-12-27
M. Larkin, IPC
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Case No. IPC-E-12-27
M. Larkin, IPC
Page 163 of235
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Case No. IPC-E-12-27
M. Larkin, IPC
Page 164 of235
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Exhibit No. 7
Case No. IPC-E-'12-27
M. Larkin, IPC
Page 165 of 235
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Exhibit No. 7
Case No. IPC-E-12-27
M. Larkin, IPC
Page 1 66 of 235
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Case No. IPC-E-12-27
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B E E E 8 Case No. IPC-E-12-27
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Case No. IPC-E-12-27
M. Larkin, IPC
Page 174 of 235
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Case No. IPC-E-12-27
M. Larkin, IPC
Page 1 75 of 235
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Case No. IPC-E-12-27
M. Larkin, IPC
Page 1 76 of 235
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Case No. IPC-E-12-27
M. Larkin, IPC
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Case No. IPC-E-12-27
M. Larkin, IPC
Page 1 78 of 235
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Case No. IPC-E-12-27
M. Larkin, IPC
Page 1 79 of 235
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Case No. IPC-E-12-27
M. Larkin, IPC
Page 1 80 of 235
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Case No. IPC-E-12-27
M. Larkin, IPC
Page '181 of 235
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Case No. IPC-E-12-27
M. Larkin, IPC
Page 182 of 235
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M. Larkin, IPC
Page 1 83 of 235
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Case No. IPC-E-12-27
M. Larkin, IPC
Page 1 84 of 235
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Case No. IPC-E-12-27
M. Larkin, IPC
Page 1 85 of 235
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Case No. IPC-E-12-27
M. Larkin, IPC
Page 1 86 of 235
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Case No. IPC-E-12-27
M. Larkin, IPC
Page 1 87 of 235
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Case No. IPC-E-12-27
M. Larkin, IPC
Page 188 of 235
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Case No. IPC-E-12-27
M. Larkin, IPC
Page 189 of235
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Case No. IPC-E-12-27
M. Larkin, IPC
Page 1 90 of 235
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Case No. IPC-E-12-27
M. Larkin, IPC
Page 1 91 of 235
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Case No. IPC-E-12-27
M. Larkin, IPC
Page 1 95 of 235
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Page I 96 of 235
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M. Larkin, IPC
Page 197 of235
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Page 1 98 of 235
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Case No. IPC-E-12-27
M. Larkin, IPC
Page 200 of 235
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M. Larkin, IPC
Page 20'1 of 235
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Case No. IPC-E-12-27
M. Larkin, IPC
Page 202 ot 235
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Case No. IPC-E-12-27
M. Larkin, IPC
Page 203 of 235
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Page 204 of 235
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M. Larkin, IPC
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Case No. IPC-E-12-27
M. Larkin, IPC
Page 206 of 235
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Case No. IPC-E-12-27
M. Larkin, IPC
Page2OT ot235
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Case No. IPC-E-12-27
M. Larkin, IPC
Page 208 of 235
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Case No. IPC-E-12-27
M. Larkin, IPC
Page 209 of 235
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Case No. IPC-E-12-27
M. Larkin, IPC
Page 21 0 of 235
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Page 212 ol 235
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Case No. IPC-E-'12-27
M. Larkin, IPC
Page 21 3 of 235
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M. Larkin, IPC
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Case No. IPC-E-12-27
M. Larkin, IPC
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Case No. IPC-E-12-27
M. Larkin, IPC
Page 2'19 of 235
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M. Larkin, IPC
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M. Larkin, IPC
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M. Larkin, IPC
Page 225 ot 235
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M. Larkin, IPC
Page 226 of 235
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Case No. IPC-E-12-27
M. Larkin, IPC
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Exhibit No. 7
Case No. IPC-E-12-27
M. Larkin, IPC
Page 228 of 235
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Case No. IPC-E-12-27
M. Larkin, IPC
Page 229 ol 235
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Case No. IPC-E]12-27
M. Larkin, IPC
Page 230 of 235
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Exhibit No. 7
Case No. IPC-E-12-27
M. Larkin, IPC
Page 231 of235
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Exhibit No. 7
Case No. IPC-E-12-27
M. Larkin, IPC
Page 232 ol 235
Exhibit No. 7
Case No. IPC-E-12-27
M. Larkin, IPC
Page 233 of 235
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Development of Pricing Proposal
Residential and Small GGneral Net Metering Service
GOS Revenue Requirement
lzt(r)
Line
No.
'Unit Cost by Schedule" Class COS Results
Row Numbers per Stipulation
from FC Model Gase No. IPC-E-Il-08
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Uniform
Adiustment
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Cap and Spread
Adjusted
Renenue Requirement
1
2
3
4
5
b
7I
9
10
11
12
13
14
15
16
17
18
't9
20
21
22
23
24
25
26
27
28
29
30
31
32
33u
35
Residential Service
Production
Demand
Energy
Transmission
Demand
Distribution
Demand
Customer
Other
Customer
Energy
Total
Small General Service
Production
Demand
Energy
Transmission
Demand
Distribution
Demand
Customer
Other
Customer
Energy
Total
9-1'l
13-14
't8
23,25,28,31,33
26,29,32,34-36,38
4'l-43,47,56-58
54
69-71
73-74
78
83,85,88,91,93
86,89,92,94-96,98
101-103,107,1 16-1 18
114
$88,687,817
$107,046,094
$39,491,942
$48,916,636
$65,207,031
$31,384,630
$720,999
$381,455,'r50
$2,079,774
$3,237,974
$9s6,095
$1,332,639
$5,701,529
$2,1 75,483
$21,432
$15,504,927
3.77o/o
3.77o/o
3.77o/o
3.77o/o
3.77Yo
3.77o/o
3.77o/o
395,848,470
$92,034,245
$111,085,229
$40,982,079
$50,762,391
$67,667,466
$32,568,8s6
$748,20s
s395.848,470
$2,006,983
$3,124,647
$g22,632
$1,285,998
$5,501,979
$2,099,343
$20,682
$14,962,264
-3.50%
-3.50o/o
-3.50%
-3.50%
-3.50%
-3.50%
-3.50%
14,962,264
Exhibit No. 7
Case No. IPC-E-12-27
M. Larkin, IPC
Page 234 ot 235
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Exhibit No. 7
Case No. IPC-E-12-27
M. Larkin, IPC
Page 235 of 235
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
cAsE NO. IPC-E-12-27
IDAHO POWER COMPANY
LARKIN, REB
TESTIMONY
EXHIBIT NO.8
ldaho Power Company
Case No. IPC-E;,2-27
Resolution of Net Metering lnterconnection lssues
PART I.
ISSUES IDENTIFIED BY IDAHO CLEAN ENERGYASSOGIATION
F Schedule 72-7. Section 2. APPLICATION PROCESS. Paraoraph 4
Upon completion the Customer must provide all forms of documentation outlined in Section 1-1
aboveverifyingthatallFederal,state,andlocalrequirementshavebeenmet. Customersmustalso
provide the Company with final invoices for all installed components of the completed Net Metering
System.
Resolution:
Upon completion the Customer must provide all forms of documentation outlined in Section 1-1
aboveverifyingthatall Federal,state,andlocal requirementshavebeenmet. customersmustalso
provide the Company with,a comoleted Svstem Verification qr!,ri Cetailing the specificatlons of ail
installed components of the completed Net Metering System. Svstem Verif ication forrrrs can be
four:d crr the Comcanv's website crwill be orovided upon reouest.
D Schedule 72-7. Section 2. APPLICATION PROCESS. Paraoraph 5b
As Filed:
Verification that the disconnect is functional and reconnection time is no less than five (5) minutes
Resolution:
Verification that the disconnect is functional and reconnection time comolies with IEEE Standard
1547
Schedule 72-8. Section 2. RECERTIFICATION. Paraoraoh 1
As Filed:
The Company will perform full recertification inspections of all Net Metering Systems once every
three years. Recertification inspections will be performed in the same manner as new Net Metering
i*ELeqlr:!1lh"ry9llry,.I
Exhibit No. 8
Case No. IPC-E-12-27
M. Larkin, IPC
Page 1 of7
System inspections described above. The Company reserves the ri8ht to inspect any Net Metering
System at any time.
ffi:
The Company will perform full recertification inspections of all Net Metering Systems once every
three years. Recertification inspections will be performed in the same manner as new Net Metering
System inspections described above. arstonrers fnay airacse to.venf'r .aa r?suiti of ine Cif,Toanyl
inspection through an lndeoendent insoection performed bv a certified third-oartv at the
Custcmer's exoense. The Company reserves the right to inspect any Net Metering System at any
time.
Schedule 72-8. Section 2. NET METERING SYSTEM EXPANSIONS. Paraqraph 2
As Filed:
2. Customers wishing to install system expansions must submit a new application and S10O
application fee, and complete the applicatlon process according to the procedures required of a new
installation.
Resolution:
2. Customers wishing to install system expansions must submit a0, application forin and a S10O
Jglsibilitv review and insoection fee, and complete the application process according to the
procedures required of a new installation.
Schedule 72-10. Section 2. UNAUTHORIZED INSTALLATIONS AND EXPANSIONS.
Paraqraph 3a
As Filed:
a. Customers may choose to disconnect Net Metering Systems from service. Customers choosing
to do so must receive confirmation from a State electrical inspector that the Net Metering System is
nolongeroperational andinterconnectedtotheCompany'ssystem. Theresultsof thisinspection
must be provided to the Company prior to restoration of service.
Resolution:
a. *ISSUE PENDING FOLLOW-UP WITH THE STATE OF IDAHO.
r Deleted: new
I D€l€Ed: application
Exhibit No. 8
Case No. IPC-E-12-27
M. Larkin, IPC
Page2 of 7
Schedule 72-5. Section 1. first paraqraph followinq "Ooeration of Disconnect
Equipment"
As Filed:
lf, in the reasonable opinion of the Company, the Seller's operation or maintenance of the
Generation Facility or lnterconnection Facilities is unsafe or may otherwise adversely affect the
company's equipment, personnel, or service to its customert the company may physically
disconnect the Selle/s Generation Facility or lnterconnection Facilities by operation of the
disconnection device or by any other means the Company deems necessary to adequately
disconnect the Seller's Generation and lnterconnection Facilities from the Company's system. At
such time as the unsafe condition is remedied or other condition adversely affecting the Company is
resolved to the Company's satisfaction, the interconnection will be restored.
Gompany Position:
While it was suggested that a requirement be added to the end of this paragraph indicating a
specific timeframe for restoration of interconnection, the Company does not believe such an
addition is appropriate. Restoration of service and/or interconnection has not been an issue with
the current tariff, and the Company is concerned that including a specific timeframe for restoration
would implement a service standard that is not present in any other service tariff. The Company
feels that the value added is less than the risk of setting an undesired precedent of committing to
specific time requirements for restoration of service.
PART I!.
ISSUES IDENTIFIED BY IDAHO PUBLIG UTILITIES GOMMISSION STAFF
F Schedule 72-5. Section 1. DISCONNECTION EQUIPMENT. Operation of Disconnection
Equipment. Paraqraph 4
As Filed:
All expenses of disconnection and reconnection incurred by the Company will be billed to the Seller.
Staff Proposal:
All expenses of disconnection and reconnection incurred by the Company as a result of a Crst*fierj
Net Metering Svstem and/or the Custorler's faiiure ic airiC:. bv il.r* provisrons contained in Schedule
72 will be billed to the Seller.
Exhibit No. 8
Case No. IPC-E-12-27
M. Larkin, IPC
Page 3 of 7
Company Position:
All expenses of disconnection and reconnection incurred by the Company will be billed to the Seller.
Net Llqtedns Customers will onlv be subiect to disconnection and recqnleEljq! lharpes if the
expenses cccuf.ed as ihe .esu,i cl a aijjac;]]er'r Net Melering Svstec] and,/or a a*strmer's iaiiure io
abide bv the provisions of Scheduie 72.
Schedule 72-6. Section 2. APPLIGATION PROCESS. Paraoraph I
As Filed:
1. Customers must submit a completed application form and 5100 application fee to the Company.
Applications are available on the Company's website.
Staff Proposal / Company Position:
1. Customers must submit a completed application form and S100 application fee to the Company.
Applications are available on the Company's website cr will be prov;ded to the Customer uoon
Schedule 72-7. Section 2. APPLICATION PROCESS. Paraqraph 3
As Filed:
3. The Company will perform within a reasonable timeframe the Net Metering Feasibility Review
based on project information provided in the application.
Staff Proposal:
3. The Company will perform within !ve-15i tfilless davs the Net Metering Feasibility Review
based on project information provided in the application.
Company Position:
The Company is not opposed to a specific timeframe for performing the Net Metering Feasibility
Review. However, further internal discussion is needed to ensure that the timeframe is achievable
on a consistent basis.
Schedule 72-7. Section 2. APPLICATION PROCESS. Paraqraph 5
As Filed:
5. Once all required documentation has been submitted, the Company will complete an on-site
inspection wlthin ten (10) business days, subject to work constraints.
: DeleEd: a rearcnable timefEme
Exhibit No. 8
Case No. IPC-E-12-27
M. Larkin, IPC
Page 4 of 7
Staff Proposal:
5. Once all required documentation has been submitted, the Company will complete an on-site
inspection within ten (10) business day5,
Company Position:
5. Once all required documentation has been submitted and the Comoanv has
apolicable Federal, state, and local reouirements have been met, the Company will complete an on-
site inspection within ten (10) business dayq
Schedule 72-8. Section 2. APPLICATION PROCESS. Paraoraph 6
As Filed:
6. Successful completion of the Company on-site inspection constitutes the conclusion of the
application process. The Customer will be moved to the appropriate Net Metering Service rate
schedule with!n three (3) business days, subject to work constraints.
Staff Proposal:
6. Successful completion of the Company on-site inspection constitutes the conclusion of the
application process. The Customer will be moved to the appropriate Net Metering Service rate
schedule within three (3) business days,
Company Position:
The Company is not opposed to a set timeframe for the transfer of rate schedules, but needs more
time to discuss internally the appropriate timeframe for this portion of the interconnection process.
D Schedule 72-8. Section 2. APPLICATION PROCESS. lnsoection Failure Process. Add
New Paraqraph 7
Staff Proposal / Company Position:
7. ln the event that a Net Metering System fails inspection, the system will be locked and a tag
providing Company contact information will be placed on the device. A Company representative will
then follow up via telephone with the Customer regarding the reason(s) for failure, and assist the
Customer in steps needed to bring the system into compliance with inspection requirements. Once
all issues have been addressed and the Customer indicates that the system has passed all applicable
Federal, state, and local requirements, ldaho Power will re-inspect the system.
-l DeleEd: , subFct to work consrainb
I!€l€ted: , subiect to work constrainb
Exhibit No. 8
Case No. IPC-E-12-27
M. Larkin, IPC
Page 5 of 7
Schedule 72-8. Sec-tion 2. RECERTIFICATION. Paraqraph I
As Filed:
The Company will perform full recertification inspections of all Net Metering Systems once every
three years. Recertification inspections will be performed in the same manner as new Net Metering
Systeminspectionsdescribedabove. TheCompanyreservestherighttoinspectanyNetMetering
System at any time.
Staff Proposal I Company Position:
The Company will perform full recertification inspections of all Net Metering Systems once every
three years at no charge to the Custon, e.. Tne Companv will orovide the Customer with w1t!el:
notlce at least fourteen ti&calendar days prior to 0e.iqrming a recertification insoecio!r-
Recertification inspections will be performed in the same manner as new Net Metering System
inspections described above. The Company reserves the right to inspect any Net Metering System
at anytime l; a.aCjt;llns a:e ,;n>afe r:. lnay olher'ir;sa aC:;:i:ei! aiie.t i:1e aoi.:rarvls eeuipr:::li,
personnel. or service ro its {&itiiiti&,i.
F Schedule 72-9. Section 2. UNAUTHORIZED INSTALLATIONS AND EXPANSIONS.
Paraqraph2a
As Filed:
a. lf proper disconnection equipment is present, the Company will open and lock the disconnect
and provide written notice that the Net Metering System has been disconnected from the
Company's system. The Company will contact the Customer either in person or via telephone and
make the Customer aware of necessary steps to bring the system into compliance according to the
provisions of this Schedule. Upon completion of the full application process the system will be
reinstated.
Staff Proposal / Company Position:
a. lf proper disconnection equipment is present, the Company will open and lock the disconnecL
When the svsternis dilcon ,Gg}gff
fel disccnBection and Comoanv coniact Dfcl"mation. A door ha4gercIreIllutilalio be leit at thC
tr ns-urs_d!be-di5got1Sg-,o!-1|C
Cusiomer wiil be called and written notilication wiil be sgllvia-J.S. Maii. Upon completion of the
full application process the system will be reinstated.
Deleted: and provide wriften notice that the Net
Metering Syiem has been disconneded from the
c_._T11v':y:i:I
lleletsd: The company willcontad the
Customer either in per$n or via telephooe and
makethe Cusomer aware ofnecessary steps to
bringthe sy*em into compliance ac€ordingto the
provisions of this schedule.
Exhibit No. 8
Case No. IPC-E-12-27
M. Larkin,lPC
Page 6 of 7
SYSTEM VERIFICATION FORM FIELDS
Project lnfo
Account Holder
Project Name
Acrount Number
Project Address
Phone Number
Electrical Permit Number
Technology Type: PV, Wind, etc.
Total q6tem SizeName Plate Rating: (Should match the watts/modules etc. below)
lf Solan
Number of Modules
Size of Modules (watts)
TrackeP (Y/N)
Battery Backup? (Y/N)
Panel Orientation
Degrees from Horizontal
lf Othen
Wind: Number of Turbines; Turbine Capacity (watts)
Hydro: Number of Generators; Capacity (watb)
I nverter Type/Brand/Model
ls inverter UL1741 or IEEE1547 listed?
lf not, what protBction type.
Certification Requirements: Form must be completed by a licensed electrician, solar
company/installer, NABCEP certified individual or an engineer or other qualified persons as
accepted by ldaho Power. ln lieu of professional certification, documentation must be
provided including cut sheets and/or invoices for installed components. lf invoices are
provided, financial information (e.9. purchase price) is not required and can be redacted ff
desired.
,li,: -
Exhibit No. I
Case No. IPC-E-12-27
M. Larkin, IPC
PageT ol7