20170428Annual Net Metering Report.pdf

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April28,2017
Ms. Diane Hanian
Secretary
ldaho Public Utilities Commission
PO Box 83720
Boise, lO 83720-0074
RE: Compliance Filing in Case No. IPC-E-12-27
Annual2017 Net Metering Status Report
Dear Ms. Hanian:
Pursuant to Order Nos. 32846 and 32925 in the above-mentioned case, ldaho Power
Company hereby submits its Annual Net Metering Status Report tor 2017.
lf you have any questions regarding this filing, please contact Kristy Patteson at (208) 388-
2982 or kpatteson@idahopower. com.
Very truly yours,
Lisa D.
LDN/KKI
Enclosures
cc: Karl KIein, IPUC
ldaho Power Gompany
Annual Net Metering Status Report
April 28,2017
ldaho Power Company ("ldaho Powe/' or "Company") presents its 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-12-27.1 The report begins with a status update as to current
participation levels and growth rates and provides an overview of the customer and stakeholder
workshop held in July 2016. The Company also updates its quantification of current cost shift, its
growth forecast for its net metering customer count, and discusses how residential net metering
customers' use of the system and load profile suggest that it is appropriate to segment these
customers into a class of their own. The report discusses system reliability and modern
technological considerations, and concludes with an update on accumulated net excess energy
credits and 2016 meter aggregation activity.
I. EXISTING NET METERING SERVICE
Gurrent Participation and Growth Rates
As of December 31, 2016, ldaho Power's net metering service consisted of 1,067 active
systems with a cumulative nameplate capacity of 8.23 megawatts ("MW'). During calendar year
2016, participation in net metering service increased by 336 active systems (a 46 percent increase
from the end of 2015) with incremental nameplate capacity totaling 2.92 MW. The additional
systems were entirely comprised of new solar photovoltaic (.P\f') installations.
During the first quarter of 2017, growth continued with the Company adding 86 new active
systems with aggregate nameplate capacity of 0.65 MW and 158 pending applications for a
combined total of an additional 1.66 MW of nameplate capacity.2 At the end of the first quarter of
1 On page 19 of Order No. 32846, the Commission directed ldaho Power to "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."
2 At the end of the first quarter of 20'16, the Company had 77 pending applications. ldaho
Power's experience has been that once an application for a net metering system is submitted, that
sptem will come online within the next year.
IDAHO POWER COMPANY'S ANNUAL NET METERING STATUS REPORT - 1
2017, ldaho Power had 1,311 active and pending systems, which represents a 51 percent growth
rate since the same time last year.
Tables 1 and 2 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 Systems3 - Pending and Active as of March 31,2017
ldaho Solar PV Wind Hydro/Other Total
Residential 1.074 56 7 1,137
Commercial & lndustrial 125 6 4 135
lrrigation 4 1 5
Total ldaho 1,203 63 11 1.277
Oregon
Residential 16 1 17
Commercial & Industrial 8 8
lrrigation 9 I
TotalOreoon 33 1 u
TotalCompany
Residential 1090 57 7 1,154
Commercial & lndustrial 133 6 4 143
lrriqation 13 1 14
TotalCompany 1.236 64 11 1,311
Table 2: Nameplate Capacity (MVU - Pending and Active as of March 31,2017
ldaho Solar PV Wind Hvdro/Other Total
Residential 6.49 0.29 0.07 6.85
Commercial & lndustrial 2.U 0.04 0.09 2.47
lrriqation o.22 0.04 0.26
Total ldaho 9.05 0.37 0.16 9.58
Oreqon
Residential 0.11 0.11
Commercial & lndustrial 0.15 0.15
lrrioation 0.68 0.68
TotalOregon 0.94 0 0 0.94
Total Comoanv
Residential 6.60 0.29 0.07 6.96
Commercial & lndustrial 2.49 0.04 0.09 2.63
lrrioation 0.90 0.04 0.94
Total GomoanY 9.99 0.37 0.16 10.53
3 The Company's net metering database reports a new application as a "system.' Some customers
have increased capacity of an existing system or have installed a second system that is a different resource
type; an expansion or additional system would be counted in Tables 1 and 2 as a separate system. This
allows the Company to report capacity in the year in which it came online. Because an expansion of an
existing system requires the filing of a new application, it is treated separately for tracking purposes.
IDAHO POWER COMPANY'S ANNUAL NET METERING STATUS REPORT. 2
Chart 1 details the increasing cumulative net metering system counts by customer class
and net metering nameplate capacity growth from 2001 through the first quarter of 2017
(including pending applications).
Chart 1: Cumulative Net Metering System Counts and Capacity (by Customer Type)
Residential PV systems continue to make up the majority of groMh in the Company's
net metering service. Since the beginning of 2013, a total of 827 new active residentia! systems
have been installed and only two of those were generation types other than PV. The continued
expansion of the Company's net metering service demonstrates how the Company's grid
continues to evolve, and underscores the need to evaluate 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.
II. UPDATE ON 2016 CUSTOMER AND STAKEHOLDER WORKSHOP
ln the 2016 annual net metering status report ('2016 Reporf) filed with the Commission
on April 29, 2016, the Company indicated that it would be holding a customer and stakeholder
workshop in the summer of 2016 to discuss a potential filing the Company was considering.
After filing the 2016 Report, the Company notified existing net metering customers and those
customers who had applied for net metering service that the 2016 Report was available and that
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IDAHO POWER COMPANY'S ANNUAL NET METERING STATUS REPORT.3
the Company would be holding a workshop to discuss the 2016 Report and a potential filing the
Company was considering. ln addition to reaching out to customers, ldaho Power also invited
intervenors from Case No. !PC-E-12-27, as wellas solar PV installers known to the Company.
The workshop was held at ldaho Power's corporate headquarters building in Boise,
ldaho on July 27 , 2016, and was attended by more than 140 current and potentia! net metering
customers and stakeholders.a The objectives of the workshop were to: (1) share the results of
the cost shifting analysis presented to the Commission in the 2016 Reporl, (2) raise awareness
amongst the Company's residential and small genera! service net metering customers about the
issue of cost shifting and that the Company was considering making a filing that may seek to
modify rate design, and most importantly (3) solicit input, feedback, and concerns from
customers and stakeholders.
At the workshop, the Company presented participants with an overview of how ldaho
Power quantifies the costs associated with providing service (revenue requirement), a brief
explanation of how ldaho Power then assigns those costs to the various customer classes
(class cost-of-service study process), as well as an explanation of how existing residential rates
are established to collect those costs (rate design). The Company also presented the cost shift
findings published in the 2016 Report.
A Company representative then discussed a potential "straw-man" for net metering
residential rate design and the Company's evaluation of a filing that would include: (1)
recognizing how net metering customers use the system differently by segmenting residential
and small general service net metering customers into their own respective classes, and (2)
addressing the cost shift caused by the existing residential rate design by establishing a rate
that would collect more fixed costs through a higher fixed service charge from those classes.
The Company also explained to participants that it was considering different options that could
be proposed to mitigate the impact of the potential filing to existing net metering customers.
a 124 participants attended in person and 18 attended the workshop remotely via WebEx.
IDAHO POWER COMPANY'S ANNUAL NET METERING STATUS REPORT - 4
At that point in the workshop, the Company asked participants for feedback regarding:
(1) how Idaho Power should most fairly collect grid-related (fixed) costs from net metering
customers, and (2) if ldaho Power were to suggest pricing changes, what options should be
proposed to best mitigate the impact to existing customers. The Company received feedback
from approximately 30 participants at the workshop and received six comments via an online
comment submission form created exclusively for workshop participants to provide feedback to
the Company. Generally, customers indicated that they were concerned with potential changes
to rate design for net metering customers and emphasized that there are other factors the
Company should consider, such as the benefits of solar to the grid, before making changes to
pricing for net metering customers.
The feedback the Company received at the workshop and in the weeks following the
workshop has been beneficial in evaluating what changes the Company might propose with
regards to the net metering service. The Company continues to believe modifying the net
metering service provisions and pricing is essentia! to ensure that ldaho Power can continue to
offer reliable and fair-priced electric service now and in the future for all of its customers -
including those who wish to installon-site generation.
III. COST SHIFTING
As discussed in Case No. IPC-E-12-27 and in annual net metering status reports to the
Commission, the current practice of applying standard retail rates to net metering service
creates the potential for inappropriate cost shifting between net metering customers and
standard service customers. The potential for cost shifting is especially large within the
Company's residential and small general service classes because a higher percentage of fixed
costs are collected through a volumetric energy rate from these customers as compared to
other customer classes. ldaho Power's residential and small general service customers are
currently billed through a two-part rate design consisting of a $5.00 monthly service charge with
volumetric energy rates collecting the rest.
IDAHO POWER COMPANY'S ANNUAL NET METERING STATUS REPORT - 5
ln November 2016, the National Association of Regulated Utility Commissioner's
("NARUC') Staff Subcommittee on Rate Design issued the Distributed Energy Resources Rafe
Design and Compensation manua! ('NARUC Manual") and acknowledged that "traditiona! utility
and regulatory models built on the assumption of the utility providing enough electricity to meet
the entire needs of its service territory are under pressure" by the installation of distributed
generation.s The NARUC Manual also acknowledged the presence of cost shifting caused by
traditional net metering stating that in the case of distributed energy resources, 'often the billing
determinants are lowered to mitigate the pressure on revenue collection effected by lower sales.
Thus, the decline in usage would effectively be shifted to other customers when the billing
determinants are reset to account for the decreased revenue received" from distributed energy
resource customers.6
Update on Quantification of Current Gost Shift
ln the 2016 Report, ldaho Power stated that there was an estimated cost shift of
approximately $55,712 per year from residential net metering to residential standard service
customers occuning as of calendar year 2015. This represented 12 percent of the total revenue
requirement for the 366 residential net metering customers who had a full 12 months of billing
data during 2015. Using that same methodology, the Company updated its analysis to quantify
the amount of cost shifting that occurred in 2016 from the 566 residential net metering
customers who had a full 12 months of billing data during 2016. The results of the updated
quantification of cost shift were that those 566 customers represent a $116,682 (18 percent of
the total $665,969 revenue requirement) cost shift.
IV. FUTURE POTENTIAL ADOPTION RATES
The residential customer segment continues to see tremendous growth in the adoption
of net metering. As described in the 2016 Report, the Company used historical groMh trends to
inform the estimation of residential net metering customer counts through the scheduled 2021
s NARUC Manual, p. 16.
6ld. at67.
IDAHO POWER COMPANY'S ANNUAL NET METER]NG STATUS REPORT.6
expiration of the federal investment tax credit flTC").7 Three forecasted growth scenarios were
developed based on the distribution of year-over-year growth rates by month as experienced
over the past 18 months. The "Median' scenario represented the median of the groMh rate
distribution, the "Lovry'' growth scenario was based on the 1Oft percentile of growth rates and the
"High" growth scenario was based on the 70m percentile of groMh rate.
ln the 2016 Report, the Company reported forecasted 2016 year-end residential net
metering counts of the low, median, and high scenarios to range from746 to 873 customers. At
the end of 2016, ldaho Power had 869 active customer agreements for residential net metering,
demonstrating that the Company's Median forecasted customer counts in the 2016 Report
understated the potential growth in the residential net metering service. Given the rapid
increase in the number of residential net metering installations, ldaho Power recalibrated its
residential net metering customer forecast mode! since filing the 2016 Report. The Company
updated the historical collection period through a more recent temn ending January 2017, where
the previous forecast modelwas constructed using customer growth data ending March 2016.
Chart 2: Updated Forecast Growth in Residential Net Metering Customers
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7 A taxpayer may claim a credit of 30 percent of qualified expenditures for a system that serves a
dwelling unit located in the United States that is owned and used as a residence by the taxpayer. The
Consolidated Appropriations Act, signed in December 2O15, extended the expiration date for PV and
solar thermal technologies, and introduced a gradual step down in the credit value for these technologies.
The 30 percent ITC was extended through 2019 and is scheduled to reduce to 26 and 22 gercenlin2020
and 2021, respectively. After 2021, the residential credit will drop to zero while the commercial and utility
credit will drop to a permanent 10 percent.
IDAHO POWER COMPANY'S ANNUAL NET METERING STATUS REPORT - 7
Using these historical groMh trends, the Company projects residential net metering
customer counts to be as high as 7,032 customers or as low as 6,171 customers, with the
median groMh rate resulting in 6,816 net metering customers in2021.
V. CHARACTERISTTCS OF THE AVERAGE RESIDENTIAL NET METERING CUSTOMER
Chart 3 compares the average load profile calculated from the Company's residential
standard service customer class to the average load profile calculated from the Company's
residential net metering customer segment on the day of the 2016 adjusted peak.8 The chart
demonstrates that in addition to peaking two hours later, the Company's residential net metering
customers have a larger demand than the Company's average residential standard service
customers.
Chart 3: 2016 Adjusted System Peak Day (June 29,2016)
Generally, solar generation peaks in the early afternoon, before the residential customer
class peaks and before the residential net metering customer segment peaks; the peak
reduction in killowatts ("kW") provided by the PV system does not align with peak usage of the
residential net metering customers.
8 The adjusted system peak day represents the hour at which the system would have peaked had
the Company not dispatched its demand response programs. This methodology is consistent with the
filed class cost-of-service study from the Company's last general rate case (|PC-E-11-08).
7 2 3 4 5 6 7 8 9 1011L2L3L4751617 18192021222324
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Net Metering
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Standard Service
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IDAHO POWER COMPANY'S ANNUAL NET METERING STATUS REPORT - 8
Because of the cunent pricing structure, some customers may be incented to orient their
systems south-facing, such that they capture the most kilowatt-hours ("kWh") production over
the course of the day; this enables the customer to offset or "net off' the maximum amount of
energy over the course of a billing month. If the customer had a pricing signal that incented
them to orient their system in a way that might better align with the Company's system peak
hours, when there is a higher demand for electricity, the net metering customer may contribute
to a reduction in the system peak. The prevalence of south-facing systems reflects a
misalignment between the retail rate net metering compensation method versus the potential
value the customer's generating system could provide to the grid.
VI. ESTABLISH SEPARATE CUSTOMER CLASSES FOR NET METERING CUSTOMERS
Idaho Power believes it is appropriate to establish a separate class for a segment of
customers who have different costs of service or where the nature or type of load is distinctly
different. This practice is generally accepted in the utility industry for the purpose of cost
analysis and rate-setting because each class is assumed to have different characteristics than
the other class. ln Order No. 26780, the Commission described class differentiating
characteristics identified in ldaho State Homebuilders v. Washinglon Water Powef - "cost of
service, quantity of electricity used, differences in conditions of service, or the time, nature and
pattern of use" as "guidelines the Supreme Court has set for the Commission to use to evaluate
whether there is a reasonable justification for setting different rates and charges for different
classes of customers."
Residential is distinguished from commercial use by the nature of energy use, not by the
amount of energy used. Similarly, the nature and pattern of energy used by residential and
small general service net metering customers is different than the standard residential and smal!
general service customers. The standard service residential customer segment only consumes
e The ldaho legislature authorizes the ldaho Public Utilities Commission in ldaho Code $$ 61-502
and -503 to determine just and reasonable rates, charges, classifications, rules, regulations, practices, or
contracts for utility service in ldaho. This authority is limited by the prohibition against discrimination and
preference in ldaho Code $ 61-315. The ldaho Supreme Court interpreted $ 61-31 5 to identify factors that
lawfully differentiate between classes of customers in ldaho State Homebuilders v. Washington Water
Power,107 ldaho 415,420,690 P.2d 350, 355 (1984).
IDAHO POWER COMPANY'S ANNUAL NET METERING STATUS REPORT - 9
energy from the grid, while the residential net metering customers consume energy from the
grid and deliver excess net energy to the grid when not consuming all generation on-site. That
is, the standard service customer has a one-way relationship with the grid while the net
metering customer has a two-way relationship. Further, while the daily demand requirements of
the two customers may be similar, net metering customer's net monthly energy as a basis for
billing does not reflect their utilization of the grid.
When a net metering customer generates either the same amount or more energy from
their system than they utilize over the course of the month, the customer's use will net to zero;
this is commonly referred to as a "net zero" customer. However, during certain hours of the
month, the net zero customer is a net exporter of energy to the grid, and during other hours of
the month, the customer is a net consumer of energy from the grid. The net-zero customer
utilizes all aspects of ldaho Power's grid during the hours they are consuming energy (including
the generation, transmission, and distribution systems) but then also utilizes the distribution
system during the hours they are exporting energy to the grid. To illustrate this, Chart 4
compares the hourly usage of a net zero residential net metering customer on the Company's
2016 adjusted system peak day to the hourly usage of a standard service customer whose
home is on the same street as the net zero net metering customer. This chart highlights how
the net metering customer uses the grid differently - that is, they use the grid to export excess
net energy in those hours when on-site consumption is less than generation, and they use the
grid to consume energy in those hours when on-site consumption is more than generation.
IDAHO POWER COMPANY'S ANNUAL NET METERING STATUS REPORT - 10
Chart 4: Residential Net Metering Customer vs. Standard Service Residential Customer
Chart 5 demonstrates that the net monthly energy consumed by the net metering
customer is not representative of their utilization of the grid, which is more accurately reflected
by the measured demand (kW). This chart uses the absolute value of the hourly
measurements, which reflects the utilization of the distribution system, regardless of which
direction the energy is flowing. Chart 5 also illustrates that, just like the standard service
residential customer, the residential net zero customer is using the grid during all24 hours of
the day.
Chart 5: Utilization of the Distribution System
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IDAHO POWER COMPANY'S ANNUAL NET METERING STATUS REPORT. 11
While the net zero customer utilizes the grid to a similar degree as the nearby standard
service customer, the current rate design of billing residential net metering customerc a nominal
service charge coupled with the remaining variable and fixed cost recovery through a volumetric
rate does not collect the appropriate amount of costs from that customer. Table 3 below shows
the 2016 base rate revenue received from both customers described above. While the net zero
customer uses the grid every hour of every day of the year, that customer will not be billed for
anv kWh charges (and will avoid paying for fixed costs in excess of $5 per month) so long as
the sum of the hours with excess generation exported to the grid is greater than the sum of the
hours when the customer was consuming from the grid. On the other hand, the neighbor of the
net zero customer, who consumed all of their energy needs from the grid, paid base rates of
$1,22s.
Table 3: Annual Utility Bil! Comparison (net zero customer and nearby residential
customer)
"Net Zero" Residential Nearby Residential
Service Charge
kWh Charges
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L,165
Total $so $1,225
While these two customers look similar from a utilization standpoint, the current pricing
structure was only intended to appropriately collect costs from the standard service customer
who uses the system in one direction, drawing all of their energy needs from ldaho Power's
system.
The Company is not the first to look at addressing the potentia! for cost shift that exists
with net metering customers. Utilities across the country are examining how to best address the
issues created by existing rate designs and the issues created by the historical practice of a
one-for-one kWh credit established at the retail rate. The Company continues to believe that
proper rate design is the appropriate means for addressing the existing cost shift that will
continue to grow with the further adoption of distributed generation in its service area. ldaho
Power has carefully monitored the increasing penetration in its system and believes that
establishing new customer classes for the residential and small general service net metering
IDAHO POWER COMPANY'S ANNUAL NET METERING STATUS REPORT - 12
customers will enable the Company to address what an appropriate pricing and compensation
structure is in a future rate case. The NARUC Manual noted that the "important point is that a
jurisdiction be situated to analyze, plan, and be prepared for its next steps before the market
and customer adoption rates overtake its abitity to respond."10
V!!. SYSTEM RELIABILITY CONSIDERATIONS
System Operations
While the overall customer-sited generation compared to Idaho Power-controlled
generation is relatively small, the Company continues to study the load profile of its residentia!
net metering customer segment to stay cognizant of changing grid conditions with increased
participation in net metering. Chart 6 compares the average load profile calculated from the
Company's residential net metering customer segment on the 2015 adjusted system peak day
(June 29, 2015) to the average load profile calculated from the Company's residential net
metering customer segment on the 2016 adjusted system peak day (June 29,2016). The chart
demonstrates how the 2016 ramp-up caused by decreasing customer-sited generation starting
mid-day combined with increasing loads starting in the early evening, is becoming steeper,
which could eventually cause a challenge for Idaho Power's grid operators. During this period,
the Company must quickly ramp-up or ramp-down ldaho Power-controlled generation resources
to meet an increasing or decreasing electricity demand - sometimes referred to as load
following. Chart 6 also demonstrates that, when the load curve is less than or equal to zero, the
net metering customer is generating more energy than they are using.
10 NARUC Manual, p.62
IDAHO POWER COMPANY'S ANNUAL NET METERING STATUS REPORT. 13
Chart 6: Net Metering Load Profiles for 2015 and 2016
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!n order to achieve system reliability, ldaho Power must continuously match the demand
for electricity with supply on a second-by-second basis. As participation in the Company's net
metering service continues to grow, it may become more challenging to achieve this balance.
Distribution System Reliability
The Company's electrical distribution system continues to experience net metering
system groMh throughout its electrical distribution circuits. Because the current penetration
level on most of the distribution circuits is relatively small as compared to distribution circuit
loads, distributed generation has not had a significant impact on distribution system reliability.
There are approximately 650 electrical distribution circuits in the Company's service
area. As of March 31, 20'17, there were 1,153 active net metering systems totaling
approximately 8,900 kW on 324 distribution circuits. This compares to 790 active systems
across 282 distribution circuits that were reported on March 31,2016. The circuits that contain
the greatest number of net metering systems are largely located in northeast Boise and in the
Wood River Valley area, while the circuits that contain the greatest amount of connected net
metering 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 circuit is 30
IDAHO POWER COMPANY'S ANNUAL NET METERING STATUS REPORT. 14
totaling approximately 139 kW. On another distribution circuit, from a capacity perspective,
seven generators (all solar) rated at approximately 606 kW are located on that single distribution
circuit. That circuit serves mostly rura! customers with a calculated summer peak load of
approximately 1,900 kW. The net metering penetration on the circuit is approximately 32
percent. The net metered connected kW capacity on the Company's distribution system
continues to remain small and the Company has not yet experienced significant operational
impacts on these circuits.
Net metering installations are typically unique in both customer-specific system
attributes, as well as the Company's facilities at a 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 and conductor capacity, as well as
a phasing (single- versus three-phase) match. The Company has not denied any net metering
applications due to system limitations, but continues to carefully monitor requests for connection
to ensure ongoing safe and reliable service is available to both existing and new customers.
The Company will continue to monitor the effects of net metering service on its system
including tracking the locations and connected capacities of net metering customers and
comparing connected capacities to minimum circuit loads. As net metering system penetration
increases, the Company will keep the Commission apprised of experienced or anticipated
system reliability impacts and will propose mitigation as needed. This may include additional
inverter requirements such as smart inverter technology, which can mitigate many high
penetration issues.
VIII. 2016 EXCESS NET ENERGY CREDIT TRANSFERS
Accumulated Net Excess Energy Credit Balances
!n Order No. 32846, the Commission stated:
[W]e find it fair, just, and reasonable for the kWh credit to
indefinitely carry fonrard to offset future bills for so long as
the customer remains on the net metering service at the
same generation site. Allowing the credits to carry foruard
indefinitely ensures that customers will be able to use their
IDAHO POWER COMPANY'S ANNUAL NET METERING STATUS REPORT - 15
credits when they need them and thus receive the benefits
of their systems.
On reconsideration, ldaho Power asked the Commission to clarify that it could
implement excess net energy credit methodology effective with each customer's January 2014
bills, which the Commission authorized in Order No. 32872.11 Since the implementation of the
kWh crediting for excess net energy in January 2014, the Company has accumulated significant
unused kWh credit balances. The Company had accumulated approximately 0.5 million,
1.3 million, and 2.3 million unused excess net energy credits by the end of years 2014, 2015,
and 2016, respectively. This growing accumulation of unused excess net energy credits
represents a potential liability on the Company's financial statements that is both difficult to
assign a value to and has the potential to never be relieved, which may add undue risk to the
Company's financial position. ldaho Power will continue to monitor the accumulation of unused
excess net energy credits and will notify the Commission if it becomes necessary for the
Company to seek a change in how these credits are accounted for.
Manual Meter Aggregation
Schedule 84, Customer Energy Production Net Metering Service ("Schedule 84"),
provides for net metering customers to submit requests to transfer excess net energy credits
between January 1 and January 31 of each year. The Company applies the following criteria
from Schedule 84 to all requests received:
i. The account subject to offset is held by the customer; and
ii. The meter is located on, or contiguous to, the property on which the Designated
Meterl2 is located. For the purposes of Schedule 84, contiguous property includes
property that is separated from the premises of the Designated Meter by public or
railroad rights of way; and
iii. The meter is served by the same primary feeder as the Designated Meter at the time
the customer files the application for the Net Metering System;13 and
11 Order No. 32872, p. 3
12 Schedule 84 states the Designated Meter "is the retail meter physically connected to the Net
Metering System."
13 Schedule 84 states the Net Metering System "is a Customer-owned Generation Facility
interconnected to the Company's system under the applicable terms of Schedule 72 and Schedule 84."
IDAHO POWER COMPANY'S ANNUAL NET METERING STATUS REPORT. 16
iv. The electricity recorded by the meter is for the customer's requirements; and
v. For customers taking service under Schedule 1 or Schedule 7, credits may only be
transfened to meters taking service under Schedule 1 or Schedule 7. For customers
taking service under Schedule 9, Schedule 19, or Schedule 24, credits may only be
transfened to meters taking service under Schedule 9, Schedule 19, or Schedule 24.
On December 6, 2016, net metering service customers were sent a letter outlining the
meter aggregation pro@ss, the requirements, and the deadlines for customers to submit an
application for transfer of eligible excess net energy credits. A copy of the transfer request form
and a Frequently Asked Questions document were sent with the letter (both of which are
available on the Company's website).14 Finally, the Company posted a message on a!! net
metering service customers' December bills informing them of the upcoming transfer window.
Given the costs associated with system customization, the Commission directed ldaho
Power in Order No. 32925 to keep it apprised of the number of customers choosing to transfer
excess net energy credits under the newly-approved meter aggregation rules. As of the
January 31, 2017, deadline, the Company received 41 applications for transfer and those
applications were reviewed during February against the Schedule 84 criteria.
Based on the criteria, the Company determined that 34 of the requests were eligible for
transfer. The total amount transferred was 478,990 kwh generated from net metering systems
taking service under Residential (36 percent), Small General (31 percent), and Large General
(16 percent) and lnigation (17 percent) rate schedules. The 478,990 kwh were transfened to
customers taking service under Residentia! (67 percent) and Large General (16 percent) and
lrrigation (17 percent) rate schedules.
The Company received seven applications that were ultimately found to be ineligible for
transfer based on the following:
o Six applicants did not have excess net energy credits.
. One applicant requested a transfer to a meter on a property that was not on a
compatible rate schedule.
1a httos://www.idahopower.com/AboutUs/BusinessToBusiness/GenerationlnterconnecUnetMeterinq.cfm
IDAHO POWER COMPANY'S ANNUAL NET METERING STATUS REPORT - 17
The Company contacted by phone al! of the customers who had requested a transfer but
whose applications were denied to explain the reason the requested transfer could not be
completed.
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ldaho Power continues to believe that in order to facilitate the expansion of distributed
generation in a safe, reliable, and fair manner, net metering rate design must be addressed
sooner rather than later. Between the first quarters of 2016 and 2017, pending and active net
metering systems in Idaho Power's service area have increased 51 percent. This groMh brings
the potential for significant cost shifting to occur from the Company's net metering customer
segment to the standard service customer classes, most prominently within the residential and
small general service customer classes. Given the real and discernible differences between
residential and small general service net metering customers and standard service residential
and small general service customers, ldaho Power believes it is appropriate to establish new
customer classes for these segments. Establishing new customer classes for the residential
and small general service net metering customer segments wil! enable ldaho Power to better
allocate costs based on how those customers use the Company's grid.
The groMh in net metering service since 2001 demonstrates how the Company's grid is
evolving and underscores the need to evaluate 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. ldaho Power will continue to work with its customers and stakeholders to
inform the timing and scope of any filing that will address the Company's net metering service
provisions or pricing.
IDAHO POWER COMPANY'S ANNUAL NET METERING STATUS REPORT. 18