20180423Annual Net Metering Report.pdf

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An IDACORP Company
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LISA D. NORDSTROM
Lead Counsel
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April 23, 2018
Ms. Diane Hanian
Secretary
ldaho Public Utilities Commission
PO Box 83720
Boise, lD 83720-0074
RE Compliance Filing in Case No. IPC-E-12-27
Annual 2018 Net Metering Status Report
Dear Ms. Hanian
Pursuant to Order Nos. 32846 and 32925 in the above-mentioned case, Idaho
Power Company hereby submits its Annual Net Metering Status Report for 2018.
lf you have any questions regarding this filing, please contact Kristy Patteson at
[phone] or [e-mail].
Very truly yours,
Lisa D. Nordstrom
LDN/KKt
Enclosures
cc: Karl Klein, IPUC
ldaho Power Company
Annual Net Metering Status Report
April 23,2018
ldaho Power Company ("ldaho Power" 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. IPC-E-12-27.1 The report begins with updated
participation levels and groMh rates since the Company's last Net Metering Status Report
filed with the Commission in April 2017. The report then discusses system reliability and
current technological considerations, and concludes with an update on accumulated net
excess energy credits and meter aggregation activity in 2017.
I. EXISTING NET METERING SERVICE
Current Participation and Growth Rates
As of December 31, 2017, ldaho Power's net metering service consisted of 1,821
active systems with a cumulative nameplate capacity ol 14.43 megawatts ("MW"). During
calendar year 2017, participation in net metering service increased by 754 active systems (a
71 percent increase) and incremental nameplate capacity of 6.2 MW. All but one of the new
systems was solar photovoltaic ("PV").
During the first quarter of 2018, growth continued with the Company adding 247 new
active systems with aggregate nameplate capacity of 2.43 MW and 265 pending applications
with an additional 3.01 MW of nameplate capacity. At the end of the first quarter of 2018,
ldaho Power had 2,333 active and pending systems, which represents a 78 percent growth
rate since the same time last year.
I 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."
IDAHO POWER COMPANY'S ANNUAL NET METERING STATUS REPORT - 1
Solar PV Wind Hvdro/Other Total!daho
2,059 40 6 2,105Residential
155 5 4 164Commercial & lndustrial
lrriqation 13 1 0 14
Total ldaho 2,227 46 10 2,283
Oregon
31Residential3010ICommercial & lndustrial I 0 0
10!rrigation 10 0 0
50Total Oregon 49 1 0
Total Companv
2,089 41 6 2,136Residential
164 5 4 173Commercial & lndustrial
lrrigation 23 1 0 24
Total Company 2,276 47 10 2,333
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 Meteri 2 - Pendi and Active as of March 31 2018
Table 2: Name - Pendi and Active as of March 31 2018MW
ldaho Solar PV Wind Hvdro/Other Total
Residential 14.39 0.17 0.06 14.62
Commercial & lndustrial 3.04 0.03 0.09 3.16
lrrigation 0.90 0.04 0 0.94
Total ldaho 18.33 0.24 0.15 18.72
Oreqon
Residential 0.26 0.002 0 0.26
Commercial & lndustrial 0.19 0 0 0.19
lrriqation 0.70 0 0 0.70
Total Oregon 1.15 0.002 0 1.15
Total Gompanv
Residential 14.65 0.17 0.06 14.89
Commercial & lndustrial 3.23 0.03 0.09 3.35
lrrigation 1.60 0.04 0 1.64
Total Gompany 19.48 0.24 0.15 19.87
2 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 ditferent 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 below details the increasing cumulative net metering system counts by
customer class and net metering nameplate capacity grov'rth from 2001 through the first
quarter of 2018 (including pending applications).
Chart 1: Cumulative Net Metering System Gounts and Capacity (by Customer Type)
Chart 2 below shows the number of applications received, by month, for 2017 and
yearto-date 2018.
Chart 2: Net Metering Applications Submitted by Month
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IDAHO POWER COMPANY'S ANNUAL NET METERING STATUS REPORT - 3
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. SYSTEM RELIABILITY CONSIDERATIONS
There are roughly 650 electrical distribution circuits in the Company's service area.
As of March 31, 2018, there were 2,068 active net metering systems totaling
approximately 16 MW on 377 distribution circuits. This compares to 1 ,153 active systems
totaling approximately 8.9 MW across 324 distribution circuits that were reported on
March 31, 2017 . The circuits that contain the greatest number of net metering systems
continue to be located primarily in northeast and east Boise and in the Wood RiverValley.
However, greatest net metering connection capacity tends to be on mostly agricultural
and rural serving circuits. For example, the largest number of net metering systems
connected on a single distribution circuit are 47 which total approximately 244 kilowatts
('kW'). The distribution circuit that leads in connected capacity has only eight solar PV
system that are rated at approximately 667 kW. This circuit serves mostly ruralcustomers
with a calculated summer peak load of approximately 2,100 kW. During minimum load
conditions, the 550 kW of power flows from the circuit into the substation and on to other
circuits. Although growing quickly, the net metered connected kW capacity on the
Company's distribution system continues to remain small relative to the total load and the
Company has been able to manage the minimal 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
IDAHO POWER COMPANY'S ANNUAL NET METERING STATUS REPORT - 4
review may include determining if there is adequate transformation and conductor
capacity as well as a phasing (single- versus three-phase) match. Although some service
transformer upgrades have been required, and further study has been necessary, the
Company has not denied any net metering applications due to system limitations. The
Company continues to carefully monitor requests for connection to ensure ongoing safe
and reliable service is available to both existing and new customers.
The Company continues to monitor the effects of net metering service on its
system, tracks the locations and connected capacities, and compares the 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. The use of smart inverter
technology, with reactive support capability enabled, may mitigate many high penetration
issues and provide additional distributed generation hosting capacity.
III. 2017 EXCESS NET ENERGY GREDIT TRANSFERS
Manua! 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
Meter3 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
3 Schedule 84 states the Designated Meter "is the retail meter physically connected to the Net
Metering System."
IDAHO POWER COMPANY'S ANNUAL NET METERING STATUS REPORT - 5
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;a and
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 transferred 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 transferred to meters taking service under Schedule 9,
Schedule 19, or Schedule 24,
On December 19, 2017 , net metering service customers were sent a letter outlining
the meter aggregation process, 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).s Finally, the Company
posted a message on all net metering service customers' December bills informing them
of the upcoming transfer window.
ln Order No. 32925, the Commission directed ldaho Power to keep it apprised of
the number of customers choosing to transfer excess net energy credits under the meter
aggregation rules. As of the January 31 , 2018, deadline, the Company received 59
applications for transfer and those applications were reviewed during February against
the Schedule 84 criteria.
Based on the criteria, the Company determined that 45 of the requests were
eligible for transfer. The total amount transferred was 613,065 kilowatt-hours ("kWh")
generated from net metering systems taking service under Residential (37 percent), Small
General (17 percent), Large General (24 percent), and lrrigation (22 percent) rate
a 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."
5
https://www.idahopower.com/AboutUs/BusinessToBusiness/GenerationlnterconnecUnetMeterinq.cfm
IDAHO POWER COMPANY'S ANNUAL NET METERING STATUS REPORT - 6
schedules. The 613,065 kWh were transferred to customers taking service under
Residential (54 percent), Large General (21 percent), lrrigation (25 percent), and Small
General (less than 0.5 percent) rate schedules.
The Company received 14 applications that were ultimately found to be ineligible
for transfer based on the following:
. Two applicants did not have excess net energy credits.
o Three applicants requested a transfer to a meter that was not on a compatible
rate schedule.
. One applicant requested a transfer to a meter that was not on contiguous
property.
. Five applicants did not have a second meter to transfer their excess credits to.
. One applicant requested a transfer to a meter that was not for their energy use.
o Two applications were received after the January 31 deadline.
The Company contacted by phone all customers who had requested a transfer but
whose applications were denied to explain the reason the requested transfer could not
be completed.
Accumulated Net Excess Energy Credit Balances
Since the implementation of the kWh crediting for excess net energy authorized by
the Commission in Order Nos. 32846 and 32872 in January 2014, the Company has
accumulated significant unused kWh credit balances.6 The Company had accumulated
6 ln Order No. 32846, the Commission stated, "we find it fair, just, and reasonable for the kWh
credit to indefinitely carry forward 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 forward indefinitely ensures
that customers will be able to use their credits when they need them and thus receive the benefits of their
systems."
IDAHO POWER COMPANY'S ANNUAL NET METERING STATUS REPORT - 7
approximately 0.5million, 1.3million, 2.3million, and 2.6million unused excess net
energy credits by the end of years 2014,2015,2016, and 2017, respectively.
IV. CONCLUSION
ldaho Power continues to experience rapid grov'rth in its net metering service.
Between the first quarters of 2017 and 2018, the capacity of on-site generation taking
service under Schedule 84 in ldaho Power's service area nearly doubled. The Company
will continue to monitor participation and grov'rth in net metering service and keep the
Commission apprised of net metering service provisions and impacts on system reliability.
IDAHO POWER COMPANY'S ANNUAL NET METERING STATUS REPORT - 8