20140228Annual Net Metering Report.pdf

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An IDACORP CompanY
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LISA D. NORDSTROM
Lead Counsel
February 28,2014
Ms. Jean D. Jewell
Secretary
ldaho Public Utilities Commission
PO Box 83720
Boise, lD 83720-0074
RE: Compliance Filing in Case No. !PC-E-12-27 - Annual Net Metering Report
Dear Ms. Jewell:
ln Order Nos. 32846 and 32925, the ldaho Public Utilities Commission ('Commission')
directed ldaho Power Company ('ldaho Power') to file an annual status report with the Commission
discussing net metering service provisions and pricing and how distributed generation may be
impacting system reliability.
ln consultation with the Commission Staff, ldaho Power has based its annual status report
on data as of December 31, 2013. ln future years, ldaho Power will continue to target the end of
February as the filing date for this report, reflecting data as of December 31 of the prior year.
lf you have any questions regarding this filing, please contact me at [phone] or
I no rdstrom @ ida ho power. com.
Very truly yours,
Lisa D. Nordstrom
LDN/KKt
Enclosures
cc Mencl: Greg Said
RA Files
Legal Files
ldaho Power Company
Annual Net Metering Status Report
February 28,2014
The following document contains ldaho Power Company's ("ldaho Powe/' or "Company") first
annual net metering status report to the ldaho Public Utilities Commission ("Commission') as
required by Order Nos. 32846 and 32925 in Case No. !PC-E-12-27. The report begins with a
brief description of the procedural history leading to the Company's current reporting
requirement, and provides updated participation and groMh data since the Company's last
update to the Commission in June 2013. The report then details key issues specifically
requested by the Commission, including potential cost shifting associated with pricing, the ability
of the Company's billing system to accommodate net metering transactions, and the impact of
distributed generation on system reliability. The report concludes with a description of the
Company's efforts to communicate the new net metering service provisions to impacted
stakeholders, as well as plans for stakeholder communication for the remaining months of 2Q14.
l. BackEround
ln November 2012 ldaho Power filed an application in Case No. IPC-E-12-27 requesting
authority to modify the provisions of its net metering service to facilitate expansion in a fair, safe,
and reliable manner. On July 3,2013, the Commission issued final Order No. 32846 approving
in part and denying in part the Company's application. On page 19 of Order No. 32846, the
Commission ordered:
the Company shall file an annual status report with the
Commission discussing the net metering service. The report shall
discuss, without limitation, the net metering service provisions and
pricing and how distributed generation may be impacting system
reliability.
Upon reconsideration in that same case, the Commission issued final Order No. 32925,
expanding the scope of the Company's annual reporting requirements. !n this order, the
Commission addressed the issue of meter aggregation, which ldaho Power defines as the
ability to use generation at one meter to offset consumption at one or more separate meters.
The Commission's additional reporting requirement stemmed from supplemental comments filed
by ldaho Power on September 30, 2013, that described the estimated costs and limitations
associated with modifying its billing system to accommodate aggregated meter transactions.
On page 7 of Order No. 32925, the Commission directed that:
when the Company files its net metering status report as directed
in Order No. 32846, the Company shall explain in detail: (1) the
basis for its $60,000 initial-cost estimate for customization; (2) the
expected total costs of customization, including without limitation
any updates to the Company's original $60,000 estimate, and the
ongoing costs to upgrade and maintain the customized system
over and above what the Company would incur to upgrade and
maintain the billing system without customization; and (3) the
number of customers for whom the Company is manually billing
aggregated net metering accounts; and (4) the Company's
projections for when switching to automated billing of aggregated
net metering accounts would be cost-justified.
The sections that follow are intended to update the Commission as required by Order Nos.
32846 and 32925. Because Case No. IPC-E-12-27 concluded less than six months prior to the
preparation of this report, the Company's intent is to provide the Commission with a general
update on the status of its net metering service without revisiting in detail the analyses recently
reviewed by the Commission during 2013.
ll. Current Participation and Growth
As of December 31, 2013, tdaho Power's net metering service consisted of 408 active systems,
with applications pending for an additional 20 systems. Cumulative nameplate capacity from
active systems totaled 2.86 megawatts ("MW"), with an additional 0.11 MW associated with
pending applications, for a grand total of 2.97 MW. The majority of net metering systems are
solar photovoltaic ("PV') at 2.24 MW, followed by wind at 0.58 MW, and small hydro/other at
0.15 MW.
The tables below provide the total number of active and pending net metering systems and
nameplate capacity by resource type, jurisdiction, and customer class.
Table 1: Number of Net Metering Systems - Pending and Active as of December 31,2013
ldaho Solar PV Wind HydrolQther Total
Residential 260 61 b 327
Commercial & !ndustrial 75 I 4 88
lrrigation 1 1
Total ldaho 335 71 10 416
OreEon
Residential 4 2 6
Commercial & lndustrial 5 5
lrriqation 1 1
TotalOreqon 10 2 12
Total Company
Residential 264 63 6 333
Commercial & lndustrial 80 9 4 93
lrriqation 1 1 2
TotalCompanv 345 73 10 428
2
ldaho Solar PV Wind Hvdro/Other Total
Residential 1.03 0.36 0.06 1.45
Commercial & lndustrial 1.05 0.18 0.09 1.32
lrriqation 0.04 0.04
Total ldaho 2.O8 0.58 0.15 2.81
Oregon
Residential 0.01 0.00 0.01
Commercial & lndustrial 0.14 0.14
lrrioation 0.01 0.01
TotalOreoon 0.16 0.00 0.16
TotalCompdny
Residential 1.04 0.36 0.06 1.46
Commercial & lndustrial 1.19 0.18 0.09 1.46
lrriqation 0.01 0.04 0.05
TotalCompanv 2.24 0.58 0.15 2.97
Table 2: Nameplate Capacity (MW) - Pending and Active as of December 31,2013
ln terms of growth, ldaho Power's net metering service continued to expand over the last year.
When ldaho Power filed its initial case, the Company's net metering service consisted of 353
active and pending systems as of November 1 ,2012. At the technical hearing in June 2013,
ldaho Power provided the Commission with an updated system count of 386 as of June 1,2013,
representing a 9 percent increase in seven months. ln the seven months between the technical
hearing and year-end 2013, system counts increased an additional 11 percent, totaling 428
active and pending systems. The chart below details cumulative net metering system counts
from 2002 to year-end 2013 (including pending applications).
Cumulative Net Metering System Gounts
2002 to YE 2013
450
400
350
300
250
200
150
100
50
0
""e ".& tr"" ""e ".." tr$ """t ""e "e'"d) "dP ^..&
"*u'
3
From a capacity perspective, interconnected net metering generation expanded in accordance
with the increasing system counts described above. At the time the Company filed its
application in Case No. IPC-E-12-27, the Company's net metering service totaled 2.52MW of
capacity as of November 1, 2012, including both active and pending projects. When the
Company provided updated capacity levels at the technical hearing in June 2013, this figure had
grown to 2.76 MW as of June 1, 2013, reflecting a 10 percent increase in seven months. Year-
end 2013 active and pending capacitytotaled 2.97 MW, reflecting an I percent increase in the
final seven months of 2013. The chart below details cumulative capacity groMh from 2002 to
year-end 201 3 (including pending applications).
Gumulative lnstalled Net Metering Gapacity
2002 to YE 2013 (Mw)
3.50
3.00
2.50
2.00
1.50
1.00
0.50
0.00
".e ".e ""$ ".e ".& ""$ ".e ".e "e'"d) "dP $'&
"c'
Overall, ldaho Power's net metering service demonstrated steady growth before, during, and
after the conclusion of Case No. IPC-E-12-27, and shows no signs of slowing in the foreseeable
future. The exponential groMh in net metering service since 2002 demonstrates how the
Company's grid is evolving, and underscores the importance of ongoing evaluation of the
associated service provisions and pricing to ensure that ldaho Power can continue to offer safe,
reliable, fair-priced electrical service now and in the future.
!!1. PricinE and Cost ShiftinE
As net metering continues to expand, it is important to apply pricing policies that minimize cross-
subsidies and allow for equitable and sustainable groMh. While ldaho Power recognizes the
desire of certain customers to offset their electrical use through the interconnection of self-
owned generation, it is vital that the underlying pricing policies ensure that the expansion of net
metering service does not occur at the expense of the Company's standard service customers.
As discuss'ed in Case No. IPC-E-12-27, the current practice of applying standard retail rates to
net metering service creates the potential for cost shifting between net metering customers and
standard service customers. The problem of cost shifting is especially predominant within the
Company's Residential and Small General Service classes, which are currently billed through a
flat $5.00 monthly service charge and volumetric energy rates. As detailed in Case No. IPC-E-
12-27, the Company's most recently reviewed class cost-of-service study from Case No. IPC-E-
11-08 indicates that fixed customer-related costs associated with serving a Residential
customer total $20.92 per month, with additional fixed distribution capacity costs of $1.48 per
kilowatt ('kW') per month. For a Small General Service customer, fixed customer-related costs
total $22.49 per month, with additional fixed distribution capacity costs of $1.37 per kW per
month. With a flat monthly service charge of $5.00, the majority of fixed costs are recovered
through volumetric energy rates for these customer classes. Under this rate design, a cross-
subsidy may exist when net metering customers offset energy consumption through self-
generation, enabling them to avoid paying for the majority of the fixed costs they impose on the
Company's system. This may result in cost shifting to standard service customers who lack the
resources or desire to install net metering systems.
With 408 active net metering systems, Idaho Power does not purport that cost shifting is
currently impacting customer rates. However, as the Company discussed throughout Case No.
IPC-E-12-27 and further emphasizes in this report, the potential for cost shifting renders the
current rate design for net metering service unsustainable. Current retail rates were not
designed to recover the cost of providing net metering service, and if rate structures are not
corrected as the grid continues to evolve, cost shifting will inevitably have an adverse financial
impact on the Company's customers.
lV. Billinq Svstem Gapabilities
While the Company believes its current rate designs cannot sustainably support the widespread
expansion of net metering, it is important to consider billing system capabilities when evaluating
proposed changes to the pricing of net metering service. As described in detail below, changes
in net metering billing practices often require resource-intensive customization of the billing
system that not only results in up-front costs, but requires additional ongoing maintenance costs
as well. As net metering continues to expand, any modifications to billing practices should
consider the ability of the Company's billing system to practically incorporate the changes.
ln general, utility billing systems are not initially configured to accommodate net metering
transactions. Within the context of the Company's Customer Relationship and Billing ("CR&B')
system, the billing engine is inherently robust with checks and controls that are not designed to
accommodate negative readings or kilowatt-hour ('kwh') transfers between meters. Because
these checks and controls are largely driven by the data structure and defined by typical
relationships between technical data (such as a service point) and customer data (such as an
account), kWh transfers between meters and/or negative meter readings result in system errors
that require manual intervention. This manual process includes an override of the controls,
manual entry of billing data, and additional testing to ensure that the transaction billed properly.
Due to this manual process, introducing negative readings and kWh transfers increases the cost
of customization and has the potential to create vulnerabilities that risk the integrity of the entire
billing system and its controls.
One area in which the Company expects additional costs related to a change in net metering
billing practices is through the implementation of excess kWh credits with meter aggregation
approved by the Commission in Order Nos. 32846 and 32925. !n comments filed September
30, 2013, ldaho Power calculated a preliminary up-front customization estimate of $60,000.
Given existing system controls and the fact that net metering service is available to all of the
Company's major customer classes, ldaho Power determined that nearly all existing retail rate
schedules, invoicing, and invoice printing would require modification to accommodate kWh
credits and transfers between meters. Based on this expected process, the Company
estimated that consultant costs for system modifications and additional resources required for
testing would total $60,000.
When the billing rules for meter aggregation were finalized in Order No. 32925, the Company
was able to identify additional system modifications necessary to accommodate the new
provisions. These additional modifications include flags to identify aggregated meters,
additional operational reporting for billing reversals, manual transaction creation for aggregation
activity, custom security role changes, Sarbanes-Oxley compliance report changes, and
operational report changes. Based on information at this time, the Company's revised estimate
for total up-front customization costs ranges from $120,000 to $200,000. This revised estimate
replaces the preliminary $60,000 estimate provided in the Company's comments in Case No.
IPC-E-12-27. Because the design process has not yet been completed to identify in detail the
specific work to be done, actual costs may vary from this estimate.
ln addition to up-front customization costs associated with system modifications and testing,
ongoing costs will be incurred to maintain the customized system above and beyond what would
have been required to maintain the system without customization. Several ongoing maintenance
requirements will be complicated by the addition of the customized configuration, including
maintaining rates in accordance with tariff changes, billing corrections, invoice processing, line
item display and messaging, and monitoring of system activity related to aggregation. Because
these processes have not yet been fully implemented, a comprehensive cost estimate cannot
be provided at this time. As the Company continues to work through the approved billing
changes it will be able to provide more cost detail in future reports.
It is important to note that the cost estimates described above reflect the estimated cost to
modify the billing system to accommodate a manual meter aggregation process. On page 7 of
Order No. 32925, the Commission directed the Company to provide an estimated timeframe for
when the automated billing of meter aggregation would be technically feasible and cost-justified.
After examining the potential for automation within the current version of CR&B, the Company's
lnformation Technology department and third-party consultants determined that the system
cannot be customized to accommodate automated meter aggregation. Automation of these
processes would compromise the billing system and its controls as described above, making
this a non-viable option for the foreseeable future. The Company will continue to monitor
potential opportunities to streamline its processes as the system is updated and ldaho Power
continues to gain more experience in utilizing CR&B.
Given the costs associated with system customization, the Commission also directed ldaho
Power in Order No. 32925 to keep it apprised of the number of customers choosing to transfer
credits under the newly-approved meter aggregation rules. Of the 408 active net metering
systems, ldaho Power estimates that the maximum number of aggregation requests will total
36, though the actual figure will most likely be less. This estimate was calculated by first
identifying 22 net metering systems with available financial credits at the close of 2013. After
these systems were identified, the Company's Net Metering Specialists reviewed the history of
excess energy production for each of the remaining systems, and through this process identified
an additional 14 systems with the potential to benefit from meter aggregation. The decision to
transfer credits, however, will ultimately be up to the customer, and will be based on the level of
excess kwh credits, the availability of eligible transfer meters, and the availability of
consumption eligible for offset. Given these limitations, ldaho Power believes the number of
transfer requests will be less than the 36 systems identified as potential beneficiaries of meter
aggregation. Because the first opportunity for meter aggregation will not occur until the first
quarter of 2015, ldaho Power can only provide an estimated number of kWh transfer requests at
this time. ln future reports, the Company will be able to provide the Commission with the exact
number of requested kwh transfers in a given year.
!n light of the difficulties described above, incorporating new billing practices into CR&B can
potentially be time-intensive and costly. However, given the growth in the Company's net
metering service and the cost shifting issues described in Section !!l of this report, the Company
recognizes that billing changes will likely be necessary to accommodate the expansion of this
service in an equitable and sustainable manner. Consequently, ldaho Power will continue to
monitor the ability of CR&B to accommodate new net metering billing practices, and will keep
the Commission apprised of new possibilities and its expanding knowledge base as it continues
to gain experience with this relatively new system.
V. Svstem Reliabilitv Considerations
Net metering systems in ldaho Power's service area ate dispersed across hundreds of feeders.
Because the current penetration level is relatively small compared to distribution feeder loads,
as of the end of 2013 there was no significant impact on distribution system reliability attributed
to net metering system operation.
The Company's 408 active net metering systems are dispersed across 206 of its approximately
650 distribution feeders. The feeders that contain the greatest number of net metering systems
are largely located in northeast Boise and in the Wood River area, while the feeders that contain
the greatest amount of connected capacity tend to be located in mostly agricultural and rural
areas. The greatest number of active net metering systems that currently exist on a single
distribution feeder is eight. From a capacity perspective, five generators (two solar and three
wind) rated at 204 kW are located on a single distribution feeder with a peak load of 6,100 kW
(2013) and a minimum load of 200 kW (2013). The resulting ratio of net metering generation on
this feeder to minimum feeder load is 1.02 (102 percent). At these penetration levels, the
Company has not yet experienced any significant operational impacts.
Because all net metering installations are unique in both customer-specific system attributes as
well as the Company's facilities in a particular location, the Company reviews several factors
when determining the feasibility of connecting a new net metering system. This review may
include determining if there is adequate transformation at the point of connection, if the existing
service conductor has adequate capacity to serve the total connected capacity of the
generators, and if the phasing (single- versus three-phase) of the system matches the service
infrastructure. To date, the Company has not had to turn away any net metering applications
due to system limitations, but continues to carefully monitor requests for connection to ensure
ongoing reliable service is available to both existing and new customers.
Although the Company has not yet experienced negative system reliability issues as a result of
current net metering penetration, it will continue to monitor the effects of net metering service on
its system. This monitoring includes tracking the locations and connected capacities of net
metering customers and comparing connected capacities to minimum feeder loads. As net
metering system penetration continues to expand, ldaho Power will keep the Commission
apprised of any changes that may impact system reliability in the future.
Vl. Stakeholder Communication
Following the issuance of final Order Nos. 32846 and 32925, ldaho Power worked diligently to
inform impacted stakeholders of the final approved changes to the Company's net metering
service provisions. To accomplish this objective, the Company contacted customers and net
metering system installers in its service area through a number of avenues.
ln December 2013, ldaho Power contacted all existing net metering customers, all potential net
metering customers, and any known system dealers and installers in its service area through a
direct mailing. The final mailing list included all individuals and businesses that ldaho Power
could reasonably identify as being potentially impacted by the new service provisions. This
letter provided a two-page overview of the final approved changes, complete with a bulleted list
of modifications and corresponding effective dates. The letter also included an updated
Frequently Asked Questions ('FAQ") document and links to the Company's website for more
information. For customers wishing to speak to ldaho Power directly, the Company included
phone contact information for both its Customer Service Center and the direct line to its Net
Metering Specialists. The timing of the mailing ensured that customers would be aware of
billing changes prior to the changes becoming effective with each customer's January 2014
billing cycle.
Another important channel through which ldaho Power worked to educate customers regarding
the new service provisions was direct discussions. All written communication described above
listed a direct phone line and email address for the Company's Net Metering Specialists, giving
customers or installers an avenue to ask questions directly to the Company's experts. Since the
direct mailing was issued in December 2013, ldaho Power's Net Metering Specialists have
communicated directly with customers and installers through phone calls, emails, and on-site
visits to help them gain a better understanding of the new service provisions.
ln addition to direct contact with customers and installers, the Company revised its website,
www.idahopower.com/netmeterinq, to reflect the new service provisions and provide additional
information based on the Company's interaction with stakeholders in Case No. IPC-E-12-27.
The website now includes the new Schedule 72 and Schedule 84 tariff schedules, a revised net
metering application form, and the newly-implemented "System Verification Form" required for
new or upgraded systems. ln addition to the newly-approved tariff schedules and forms, ldaho
Power revised two informational documents to provide potential and existing customers with
more information regarding the interconnection of renewable generation. The first document
"Renewable Generation at Your Home or Business" provides an overview of renewable
generation for ldaho Power's customers, outlining the various options for interconnection and
listing additional resources to enable customers to make an informed decision when evaluating
these options. The second document "Net Metering FAQs" is a net metering-specific document
designed to provide additional detail for customers who are exploring the Company's net
metering service option. This is the same document the Company included in its direct mailing
to net metering stakeholders described above. For the Commission's reference, the Company
has included the communication documents discussed above as Appendix A to this report.
ln 2014,ldaho Power will work to inform its net metering customers of the approved changes to
the billing treatment of excess energy credits for customers with multiple meters. Per
Commission Order Nos. 32846 and 32925, effective with each customer's January 2014 billing
cycle, customers who generate more than they consume over the course of a billing period will
receive a kWh credit for the amount of energy generated in excess. lf customers have any
unused credits at the end of the calendar year they may request to transfer the credits to offset
consumption at separate meters that meet Commission-approved criteria for meter aggregation.
Because January 2015 will be the first opportunity to transfer credits, ldaho Power plans to
communicate with all net metering customers directly during the fourth quarter of 2014 to ensure
that they are aware of the new provisions and understand the procedure for transferring credits.
While ldaho Power has not yet finalized this communication, the development of an effective
strategy for educating customers will be a priority for the Company's Net Metering Specialists in
the coming months.
Vll. Summarv
ldaho Power is committed to carefully analyzing the impacts of growth in distributed generation
and the issues that must be addressed to accommodate the expansion of the Company's net
metering service. The Company acknowledges that there are many issues related to the
expansion of distributed generation on its system, and does not contend that this report is an all-
encompassing view of the potential impacts of this technology on ldaho Power and its
customers. Rather, in this first report the Company has focused primarily on the issues and
impacts as ordered by the Commission in Order Nos. 32846 and 32925, recognizing that the
Commission recently performed an in-depth analysis of the Company's net metering service
that concluded less than six months ago.
As with all services provided by ldaho Power, the Company will continue to monitor the status of
net metering and keep the Commission apprised of any changes it feels are necessary to offer
this service in a fair, safe, and reliable manner- From establishing appropriate pricing to
ensuring the reliability of the grid, distributed generation presents a number of challenges that
must be addressed as penetration continues to increase. ldaho Power appreciates the
opportunity to provide the Commission with an update on the status of its net metering service,
and looks forward to working through these issues as the nature of the electrical grid continues
to evolve.
10
IDAHO POWER GOMPANY
2014 ANNUAL NET METERING
STATUS REPORT
Appendix A
Gustomer Letter SIffi**
An IDACORP Company
Insert Date]
Insert Recipient Name]
Insert Recipient Title]
Insert Recipient Company]
Insert Recipient Street Address]
finsert City, State Zip]
Subject: Approved Changes to Net Metering Service
Dear Insert Recipient] :
In November 20L2,ldaho Power filed a request with the Idaho Public Utilities Commission (IPUC)
to modiff the provisions of its net metering service. After several months of discussions, hearings,
and deliberation, the IPUC recently issued its final order in this matter. I hope you'll take a few
minutes to read this letter in its entirety, as it details the aspects of ldaho Power's net metering
service that will change as a result of this order. Certain modifications may have a direct impact
on your electricity bill.
The list below provides a brief summary of changes. Each item is described in more detail in the
paragraphs that follow.
Effective October 1. 2013o Elimination of the previous 2.9 megawatt (MV\D cap on total net metering generation capacity.o Revised application process, application forms, and interconnection requirements.e Clariffing language within Idaho Power's net metering tariffschedules.
Effective with each Customer's lanuary 2014 Billing Cycle
o Discontinuance of financial payments for customers who generate more electricity than they
consume over a billing month.o Implementation of an energy credit system that allows customers to carry forward excess
eners/ generation to offset future energy consumption.
On October L,2013,ldaho Power's previous cap of 2.9 MW for total installed net metering capacity
was lifted. Also on that date, new tariffprovisions went into effect governing the net metering
application process and interconnection requirements. Idaho Power's Schedule 72,
Interconnections to Non-Utility Generation, and Schedule 84, Customer Enerry Production Net
Metering, have been reorganized in a more user-friendly manner to clearly detail the service
provisions specific to net metering customers. Copies of the new application forms and tariff
schedules are available online at www.idahopower.com/netmetering.
The IPUC's order also approved a billing change that will impact customers who generate more
electricity than they consume over the course of a billing month. Effective with each customer's
fanuary 2014 billing cycle, the practice of issuing financial credits/payments for excess generation
'122'l W. ldaho 5t. (83702)
P.O. Box 70
Boise. lD 83707
[Insert Recipient's Name]Page2 of2 [Insert Date]
will be discontinued. In lieu of financial crediting ldaho Power will be implementing an enerry
crediting system that allows customers to carry forward excess generation to offset enerry usage in
subsequent months. Under this system, if a customer produces more enerry than he or she
consumes over the course of a billing month, the number of kilowatt-hours (kWh) produced in
excess of consumption will be carried forward as a credit to reduce kWh usage on future bills.
Please note that under the new system credits are only used to reduce kWh usage. Unlike a financial
credit, this new system does not allow for the offset of non-kWh-related charges such as the Service
Charge and Billing Demand charges (if applicable). Net metering customers will notice a new
message on their monthly electricity bills beginning in fanuary 2014 indicating the number of kWh
credits that have accumulated under this new system.
For net metering customers who take service from Idaho Power at multiple service points, the new
enerry crediting system allows for the transfer of unused excess net energy credits to eligible
meters on an annual basis. Meters are eligible to receive credit transfers if they meet the criteria
listed in ldaho Power's Schedule 84, available online at www.idahopower.com/netmetering.
Eligible credit transfer requests will be fully executed by March 31of each year and will be subject
to a fee of $10.00 per transaction per meter. Idaho Power is currently working through a detailed
implementation plan for this year-end process and will provide more information regarding credit
transfers later in 2014. The first opportunity to transfer credits will occur in March 2015.
For your reference I have enclosed a Frequently Asked Questions document that provides an
overview of Idaho Power's net metering service under the new provisions. For additional
information please visit www.idahopower.com/netmetering. Idaho Power representatives are also
available via telephone to provide furcher information and discuss any questions you may have. For
questions regarding your net metering bill, please contact our Customer Service Center at (208)
3BB-2323, or [phone] from outside the Treasure Valley. For questions specific to the net
metering service provisions, please contact our Net Metering Specialists at (208) 3BB-2559.
In closing, I would like to take this opportunity to thank those customers who actively participated
in ldaho Power's filing. Customer input provided through the regulatory process was carefully
considered by Idaho Power and the IPUC, contributing valuable insight that helped shape the final
net metering service provisions approved in this case.
Ifyou have any questions or concerns please contact us through the avenues detailed above.
Sincerely,
-/t',rrrr*-D/t-Theresa Drake
Customer Relations and Energr Efficiency Manager
Enclosure
Dealer / lnstaller Letter 7!lml0
NPEi,lrER=
An IDACORP Company
flnsert Date]
finsert Recipient Name]
finsert Recipient Title]
Insert Recipient Company]
Insert Recipient Street Address]
finsert City, State Zip]
Subject: Approved Changes to Net Metering Service
Dear Insert Recipient] :
In November 2012,ldaho Power filed a request with the Idaho Public Utilities Commission (IPUC)
to modifii the provisions of its net metering service. After several months of discussions, hearings,
and deliberation, the IPUC recently issued its final order in this matter. I hope you'll take a few
minutes to read this letter in its entirety, as it details the aspects of ldaho Power's net metering
service that will change as a result of this order.
The Iist below provides a brief summary of changes. Each item is described in more detail in the
paragraphs that follow.
Effective October 1. 2013o Elimination of the previous 2.9 megawatt (MW) cap on total net metering generation capacity.o Revised application process, application forms, and interconnection requirements.o Clarifying language within ldaho Power's net metering tariff schedules.
Effective with each Customer's January 2014 Billing Cycleo Discontinuance of financial payments for customers who generate more electricity than they
consume over a billing month.. Implementation of an energy credit system that allows customers to carry forward excess
enerry generation to offset future energy consumption.
On October L,z0t3,ldaho Powefs previous cap of 2.9 MW for total installed net metering capacity
was lifted. AIso on that date, new tariffprovisions went into effect governing the net metering
application process and interconnection requirements. Changes to the application process include a
revamped online application form, as well as a new System Verification Form that must be
submitted by the system installer or customer prior to ldaho Powe/s on-site inspection. This new
process also applies to net metering customers who wish to expand existing systems. Idaho Power's
Schedule 72, Interconnections to Non-Utility Generation, and Schedule 84, Customer Enerry
Production Net Metering have been reorganized in a more user-friendly manner to clearly detail
the service provisions specific to net metering customers. Copies of the new application forms and
tariffs are available online at www.idahopower.com/netmetering.
1221 W. ldaho 5t. (83702)
PO. Box 70
8oise, lD 83707
[Insert Recipient's Name]Page2 of2 [Insert Date]
The IPUC's order also approved a billing change that will impact customers who generate more
electricity than they consume over the course of a billing month. Effective with each customer's
fanuary 2014 billing cycle, the practice of issuing financial credis/payments for excess generation
will be discontinued. In lieu of financial crediting Idaho Power will be implementing an energy
crediting system that allows customers to carry forward excess generation to offset ener$/ usage in
subsequent months. Under this system, if a customer produces more enerry than he or she
consumes over the course of a billing month, the number of kilowatt-hours (kWh) produced in
excess of consumption will be carried forward as a credit to reduce kWh usage on future bills.
Please note that under the new system credits are only used to reduce kWh usage. Unlike a financial
credit, this new system does not allow for the offset of non-kWh-related charges such as the Service
Charge and Billing Demand charges (if applicable). Net metering customers will notice a new
message on their monthly electricity bills beginning in fanuary 2014 indicating the number of kWh
credits that have accumulated under this new system.
For net metering customers who take service from Idaho Power at multiple service points, the new
eners/ crediting system allows for the transfer of unused excess net energy credits to eligible
meters on an annual basis. Meters are eligible to receive credit transfers if they meet the criteria
listed in ldaho Power's Schedule 84, available online at www.idahopower.com/netmetering.
Eligible credit transfer requests will be fully executed by March 31of each year and will be subject
to a fee of $10.00 per transaction per meter. Idaho Power is currently working through a detailed
implementation plan for this year-end process and will provide more information regarding credit
transfers Iater in 2014. The first opportunity to transfer credits will occur in March 2015.
For your reference I have enclosed a Frequently Asked Questions document that provides an
overview of ldaho Power's net metering service under the new provisions. For additional
information please visit www.idahopower.com/netmetering. Idaho Power representatives are also
available via telephone to provide further information and discuss any questions you may have. For
questions regarding a customer's net metering bill, please contact our Customer Service Center at
(208) 3BB-2323, or [phone] from outside the Treasure Valley. For questions specific to the
net metering service provisions, please contact our Net Metering Specialists at [phone].
In closing, I would like to take this opportunity to thank those individuals who actively participated
in Idaho Power's filing. Public input provided through the regulatory process was carefully
considered by Idaho Power and the IPUC, contributing valuable insight that helped shape the final
net metering service provisions approved in this case.
Ifyou have any questions or concerns please contact us through the avenues detailed above.
Sincerely,
-//,r/-r^-Drt-Theresa Drake
Customer Relations and Enerry Efficiency Manager
Enclosure
SEHM
An loAcoRP company
Net Metering
Frequently Asked Questions
What is net metering?
Net metering allows customers to offset their energy use by generating power on their property and connecting it to
a utility's grid. When customers generate more than they consume, the electric meter "spins" backwards, providing
a kilowatt-hour (kwh) credit for energy produced to offset energy consumed. Systems connected to the grid are
referred to as "interconnested."
How does net metering work?
Net metering customers install renewable sources of generation at their homes or businesses. Energy generated is
consumed at the premise first and any excess flows from the meter to Idaho Power's lines. Production is credited
against consumption, and the customer is billed at the end of the month based on "nef'overall usage (kWh
consumed minus kWh produced).
How much do I pay for the power I use?
Net metering customers pay the same retail rates for power they use as ldaho Power's standard service customers.
However, the net metering tariff - including the current rate structure and interconnection requirements - is
subject to change and does not represent a guarantee offuture pricing.
What happens if I generate more electricity than I consume?
Beginning with each customer's January 2014 billing cycle, customers who generate more electricity than they
consume over the course of a month will receive a kWh credit carried forward to offset consumption in future
months. Excess energy credits carry forward indefinitely until they are entirely used to offset consumption or a
customer discontinues service at the applicable home or business, whichever comes first.
Can I transfer excess generation between accounts?
ln some cases, it may be possible to transfer excess generation between meters among accounts held by the same
customer provided the meters are on the same primary feeder, the meters are located on the same contigtrous
prop€rty and the electricity is for the Customer's requirements. Credits may only be transferred between Schedules
I and 7 or between Schedules 9, 19, and 24. Transfers happen one time per year and fees apply. Call the net
metering line at 208-388-2559 for more information.
What type of generation is allowed under net metering?
Idaho Power's net metering tariffis available to wind, solar, hydro, biomass, geothermal and fuel cell technologies.
Who is eligible for net metering service?
Residential (Schedule l) and small commercial (Schedule 7) customers may connect up to 25 kW of generation. All
other rate classes can connect up to 100 kW of generation. Residential Time Of Day customers (Schedule 5) may
not participate in net metering.
PO. Box 70 (83707)
1221 W. ldaho 5t.
Boise, lD 83702
What is the basic process for interconnecting a net metering system? How long will it take?
a
a
The process begins when a customer submits a completed application form and $100 application fee to
Idaho Power. Applications are available at www.idahopower.corn/netmetering or mailed upon request.
Once a complete application is received, Idaho Power provides the customer with a completed application
acknowledganent stating all application requirements have been received.
Idaho Power then conducts a feasibility review based on information provided in the application. During
this review a planning engineer checks the lines and tansformers serving the customer's property to ensure
Idaho Power's equipment can accommodate the proposed system.
Within seven business days of the completed application acknowledgment, Idaho Power provides the
customer with the results of the feasibility review.
If approved, the customer may continue with the installation.
If upgrades are needed, Idaho Power works with the customer to determine the costs of upgrading the grid
to accommodate the proposed system. If the customer chooses to proceed, grid upgrades are made by Idaho
Power at the customer's expense. Once the required upgrades have been completed, Idaho Power provides
notification that the customer may proceed with installation of the project.
Once the system has been completely installed and passed the state electrical inspection, the customer must
submit a System Verification Form detailing the final installed components of the net metering system.
Upon receipt of the Systern Verification Form and passage of the state electrical inspection, Idaho Power
conducts its own inspection within l0 business days. At this inspection, Idaho Power tests the disconnect,
visually inspects the system and places utility required signs on the system. These sigrrs alert Idaho Power
crews that on-site generation occurs at that property and helps crews locate the disconnect in case ofan
emergency.
Once the net metering system has passed Idaho Power's inspection, Idaho Power installs a new meter
programmed for net metering within 15 business days.
Does Idaho Power have any specific interconnection equipment requirements?
Idaho Power requires a grid+ied inverter. lnverters with either theULlT4l or IEEEI547 listings meet Idaho
Power's requirements for interconnection. Inverters without these listings require additional testing. Idaho Power
also requires a disconnect switch on the customer side of the meter. For complete rules, visit
www. idahopower. com,/netmetering.
What does it cost to become a net metering customer?
Aside from the cost of the system itself, Idaho Power requires a $100 application fee to cover costs such as
processing, project review, on-site inspection, and review of the lines and transformers. If the project requires
upgrades to Idaho Power equipment, the applicant also must pay those costs.
What if I want to start small and increase my system size over time?
You may install your system a little at a time; however, each expansion will require an application and a $100
feasibility review and inspection fee.
Is there a limit to how many Idaho Power customers can participate in net metering?
No, there is currently no cap on Idaho Power's net metering service.
Does ldaho Power sell and/or install net metering systems?
No. There are a number of qualified dealers that provide sales and installation services within Idaho Power's
service area.
Whet lf I don't went to be on the net metering tariff?
Onsite renewable generation interconnected to Idaho Power's electrical grid must comply with the rules for net
metering. These requirernents help ensure the safety of Idaho Power crews working in the area and to protect the
reliability of the system. Systerns found to be interconnected without completing the net metering application
process will be asked to do so or risk being permanently disconnected from the electric grid.
Where can I learn more?
To learn more about net metering, rules and application process:
r Visit: www.idahopower.conn/netmetering.o Call 208-388-2323 or 800488-6151 outside the Treasure Valley.o Email [e-mail].
Other Links:
www.energy.idaho.gov/renewableenergy - Idaho Office of Energy Resources
Information on renewable resources in Idaho including technologies, financing options and resources.
www.oregon.gov/ENERGY/index.shtnl - Oregon Deparbnent of Energy:
lnformation on renewable resources in Oregon including technologies and financing options.
KtHm*
An loAcoRP company
Renewable Generation at
Your Home or Business
Are you interested in generating power from solar, wind or another renewable energy source at your home
or business? Leam more below.
I want to put renewable generation (solar panels, small wind-turbine, etc.) on my house or business.
Does ldaho Power allow this?
Yes. There are three options for interconnecting renewable generation to [daho Power's grid:
Option 1: Net Meterine: Net Metering is the most common avenue for ldaho Power's customers to
interconnect renewable generation to offset their own energy consumption. tdaho Power's Net Metering
tariff allows customers to install small-scale renewable generation projects on their property and connect
to ldaho Power's electrical grid.
Option 2: Schedule 86: Schedule 86 is available to generators who wish to receive financial payment for
their production at market-based rates. Under Schedule 86, generation from installed renewable systems is
separately metered, and sellers receive financial payment for each kilowatt-hour (kwh) of energy
produced. The price paid per kWh is based on market prices recorded within the same month.
Option 3: Enerey Sales Asreement: Generators who wish to sell electricity to Idaho Power under a long-
term contract can procure an Energy Sales Agreement, or *ESA." Under the terms of an ESA, sellers are
paid for each kWh of energy produced according to avoided-cost rates set by the ldaho Public Utilities
Commission. ln order to receive payment at avoided-cost rates, a generation unit is subject to strict
performance requirements on a monthly basis. Due to the more stringent requirements, this option is not
typically utilized by ldaho Poweros residential or business customers.
Does Idaho Power offer any financial incentives or rebates for installing small-scale renewable
energy systems on my property?
No. However, there are federal and state tax incentives and loan programs that can help with financing
on-site renewable energy sources. The ldaho Office of Energy Resources has information on financing
options at energy.idaho.gov/renewableenergy. For Oregon customers, visit the Oregon Energy
Departrnent at www.oregon.gov/ENERGY/index.shtrnl. The Database of State Incentives for Renewable
Energy (DSIRD, funded by the U.S. Departnnent of Energy, also lists incentives for renewable resources
by state at www.dsireusa.org.
What is the cost of a small-scale renewable system?
The cost of a system depends on many factors including the type and size. To get an estimate, contact a
local dealer familiar with the type of system you are interested in.
How much energy does a system generate?
Energy generated varies by project depending on such factors as technology, weather, location and
orientation. Your dealer can help estimate potential generation from the different systems.
PO. Box 70 (83707)
1221 W. ldaho St.
Boise, lD 83702
How much space do I need?
For a solar anay, each kW of solar photovoltaic generation capacity requires about 100 to 200 square feet
ofroofor ground area depending on the effrciency ofthe panels.
For a wind turbine, the space depends on the tlpe and height of the systern installed. A general rule of
thumb is the turbine generator should be 20 feet above the top of anything within 300 feet of the system.
Turbines should be erected away from structures to minimize the risk of falling on buildings during strong
winds. The minimum distance between turbines and structures is typically equal to the combined height
of the tower and blades, known as the "fall distance."
What other restrictions apply?
Check with your homeowners association and local planning and zoning commission to see if local
ordinances or nrles prohibit or limit the installation of renewable resources on your property. Also, ask
your dealer about other considerations you may encounter.
What size system should I get?
The size of the system depends on many factors including the type of technology, the available space and
how much energy your home or business uses. Your monthly electric bill documents your usage over the
past 12 months. Work with a dealer to evaluate your needs to determine the proper size and system.
Don't forget to take advantage of ldaho Power's energy effrciency programs to help lower your overall
energy use. Information can be found at www.idahopower.com/energyeffiency.
How can I find a dealer?
The Idaho OfIice of Energy Resources posts a list of contractors that serve Idaho and Eastern Oregon.
Visit www.energy.idaho.gov/renewableenergy for more information.
What is my first step?
First, you must select the system you want that will work on your property. Then, contact a dealer to
evaluate technology options, cost and site considerations. The Idaho Office of Energy Resources has
information on dealers, financing options and generation systems at
www.energy.idaho.gov/renewableenergy. Oregon customers, visit the Oregon Energy Deparhnent at
www.oregon. gov/ENERGYiindex.shtnl.
Once you've selected a system or to learn more about connecting to ldaho Power lines, visit
www. idahopower. conr/netueterine.
On-site generation is not an option for me. How can I still offset my use with renewable energy?
Idaho Power's Green Power Program allows customers to offset their use with renewable energy.
Participants voluntarily contribute an extra dollar amount on their monthly bill. Contributions are used to
purchase green power for the region's power grid from renewable generation sources in Idaho, Oregon
and surounding states. For more information, visit www.idahopower.com/gteenpower.