20190430Annual Net Metering Report.pdf

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An roAcoRP company
LISA D. NORDSTROM
Lead Counsel
I nordstrom @ida hopower.com
RECEIVED
I0l9 APR 30 Pll h: 33
TOAHO PUBLIO
tI I LtTi [S CoMl'{lssloN
April 30, 2019
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 2019 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 for 2019.
lf you have any questions regarding this filing, please contact Kristy Patteson at
[phone] or [e-mail].
Very truly yours,
Lisa D. No
LDN/KKt
Enclosures
cc: Karl Klein, IPUC
IDAHO POWER COMPANY
ANNUAL NET METERING STATUS REPORT
April 30,2019
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 an update
on regulatory activity related to small on-site generation and net metering service followed
by an update on participation levels and groMh rates since the Company's last Net Metering
Status Report filed with the Commission in April 2018. The report then discusses system
reliability and concludes with an update on accumulated net excess energy credits and meter
aggregation activity in 2018.
I. UPDATE ON REGULATORY ACTIVITY
On May 9,2018, the Commission issued Order No. 34046 directing ldaho Power
to close Schedule 84, Customer Energy Production Net Metering Service ("Net Metering
Service") to ldaho Residential and Small General Service ("R&SGS") customers and to
establish new Schedule 6, Residential Service On-Site Generation ("Schedule 6"), and
Schedule 8, Small General Service On-Site Generation ("Schedule 8") (collectively
referred to as "Small On-Site Generation Service").
!n its order, the Commission also directed ldaho Power to initiate two new dockets:
(1) to comprehensively study the costs and benefits of on-site generation on ldaho
Power's system, as well as proper rates and rate design, transitional rates, and related
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."
IDAHO POWER COMPANY'S ANNUAL NET METERING STATUS REPORT - 1
issues of compensation for net excess energy provided as a resource to ldaho Power,
and (2) where the Company would, with input from interested parties, undertake a
comprehensive study of fixed costs.2 ln compliance with those directives, on October 19,
2018, the Company petitioned the Commission to initiate Case Nos. IPC-E-18-15 ("18-15
Case") and IPC-E-18-16 ("18-16 Case") to comprehensively study the costs and benefits
of on-site generation and fixed cost recovery, respectively.
To date, parties have met in the 18-15 Case for one prehearing conference and
four settlement meetings, and parties have met in the 18-16 Case for one prehearing
conference and three settlement meetings.
On April 5,2019, ldaho Power filed Case No. IPC-E-19-15 ('19-15 Case")
requesting to explore modifications to the compensation structure and excess energy
value applied under Schedule 84 (currently available to commercial, industrial, and
irrigation customers) and to temporarily suspend service under Schedule 84 until a
decision is reached in the case. The Commission asked interested parties to submit
written comments by May 2, 2019, for the Commission's consideration regarding the
Company's request.3
II. EXISTING SMALL ON.SITE GENERATION SERVICE
AND NET METERING SERVICE
A. Current Participation and Growth Rates
As of December 31,2018, ldaho Power's Small On-Site Generation Service and Net
Metering Service consisted of 3,212 total active systems with a cumulative nameplate
capacity of 25.84 megawatts ("MW") in its ldaho service area. During calendar year 2018,
participation in Small On-Site Generation Service and Net Metering Service increased by
2 Order No.34045 at22-23.
3 Order No. 34315
IDAHO POWER COMPANY'S ANNUAL NET METERING STATUS REPORT - 2
1,391 active systems (a76 percent increase) and incremental nameplate capacity of 11.41
MW. Allthe new systems were solar photovoltaic ("PV").
During the first quarter of 2019, grovrrth continued with the Company adding 377 new
active systems with aggregate nameplate capacity of 3.69 MW and 429 pending applications
with an additional 7.13 MW of nameplate capacity. At the end of the first quarter of 2019,
ldaho Power had 4,018 active and pending systems, which represents a 76 percent growth
rate since the same time last year.
Table 1 provides the total number of active and pending Small On-Site Generation
Service and Net Metering Service systems in the Company's ldaho jurisdiction by resource
type and customer class.
Table 1: Active and Pending Small On-Site Generation Service and Net Metering
Service Systems as of March 31,20194
Table 2 provides the total nameplate capacity of active and pending Small On-
Site Generation Service and Net Metering Service systems in the Company's ldaho
jurisdiction by resource type and customer class.
4 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 and2 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.
Solar PV Wind Hydro/Other Total
Schedule 6
Residential On-Site Generation 3,756 35 7 3,798
Schedule 8
Small General On-Site Generation 45 1 4 50
Schedule 84
Commercial & lndustrial 114 1 0 115
lrrigation 54 1 0 55
Total ldaho 3,969 38 11 4,018
IDAHO POWER COMPANY'S ANNUAL NET METERING STATUS REPORT - 3
Table 2: Active and Pending Small On-Site Generation Service and Net Metering
Service Nameplate Capacity (MW) as of March 31, 2019
Chart 1 below details the increasing cumulative Small On-site Generation Service
and Net Metering Service system counts by customer class and nameplate capacity
groMh from 2001 through the first quarter of 2019 (including pending applications).
Chart 1: Gumulative System Counts and Capacity (by Gustomer Type)
Chart 2 below shows the number of Small On-Site Generation Service and Net
Metering Service applications received, by month , for 2018 and yearto-date 2019.
Solar PV Wind Hydro/Other Total
Schedule 6
Residential On-Site Generation 27.52 0.14 0.07 27.73
Schedule 8
Small General On-Site Generation 0.33 o.o2 0.09 0.44
Schedule 84
Commercial & lndustrial 3.43 0.002 0 3.43
!rrigation 5.02 0.04 0 5.06
Total ldaho 36.30 0.20 0.16 36.66
4,500
4,000
3,500
3,000
2,50O
2,000
1,500
L,000
500
0
2001 2003 200s 2007 2009 20LL 2013 201s 2077 2079
(1a)
: Residential I Commercial & lndustrial I lrrigatiop rfsp36lty
cfou
Eo
.i
.a
40
5
0
35
30
,a9
20E
IJoLs*(J
10
IDAHO POWER COMPANY'S ANNUAL NET METERING STATUS REPORT - 4
Chart 2: Applications Submitted by Month
200
150
100
50
L7L
rllI
o"a,t $"- ,""t t)-
L72
ililil
193
I[III0
."-:..r""""."'irsi""""o
r 2018 r 2019
ln addition to the active and pending applications described above, the Company
is aware of an additional 5.79 MW of capacity from irrigation customers who have
requested the Company provide detailed information on their meter data points, including
geographic information system ("GlS") data flagging contiguous property, names of
distribution feeders for each meter, with an interest in installing Net Metering Service
systems on their properties. Chart 3 represents active and pending growth between 2012
and March 31,2019, for only the irrigation class and includes the capacity associated with
the informal inquiries described above.
Chart 3: Applications Submifted by Month
ldaho Schedule 84 (lrrgiation Only)
Total Nameplate Capacity
2012 - 2019 Q1 YTD12 MW
10 MW
8MW
6MW
4MW
2MW
-MW
1.09 MW
0.04 Mw 0.04 MW 0.04 MW 0.09 MW 0.12 MW 0.13 MW I
2072 2013 20t4 2015 20t6 2017 2018
I Cumulative Capacity I Pending Capacity : lnformal lnquiry Capacity
2019 Q1
YTD
s.79 MW
3.29 MW
1.77 MW
IDAHO POWER COMPANY'S ANNUAL NET METERING STATUS REPORT - 5
The continued expansion of the Company's Small On-Site Generation Service and
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 electricalservice now and
in the future.
III. SYSTEM RELIABILITY CONSIDERATIONS
There are 706 electrical distribution circuits in the Company's service area.
Considering all customer-owned on-site generation installations across all jurisdictions,
all rate classes and all resources, as of March 31, 2019, there were 3,293 active
operational customer-owned on-site generation systems. These systems total
approximately 27.11 MW on 413 distribution circuits. This compares to 2,068 active
operationa! systems totaling approximately 16 MW across 377 distribution circuits on
March 31,2017.
The circuits that contain the greatest number of customer-owned on-site
generation systems are in the ldaho Power capital region, primarily in Ada County. The
densest concentrations are primarily in east, southeast, and south Boise. However, the
greatest customer-owned on-site generation connected capacity is on agricultural and
rural serving circuits. For example, the largest number of customer-owned on-site
generation systems connected on a single distribution circuit is 57 with a total rated
capacity of 310.60 kilowatts ("kW"). The distribution circuit in ldaho with the greatest
customer-owned on-site generation connection capacity has 41 solar PV systems with a
total rated capacity of 325.02 kW. This circuit serves mostly rural customers with a
summer peak load of approximately 2,500 kW.
During 2018, three ldaho irrigation customers submitted multiple applications for
100 kW customer-owned on-site generation systems. The Company studied the potential
impacts from each proposed system to assure acceptable distribution circuit voltage. The
IDAHO POWER COMPANY'S ANNUAL NET METERING STATUS REPORT - 6
studies indicated that certain customer-funded upgrades, pursuant to Rule H, including
transformer capacity increases, voltage regulatorsetting changes, and a voltage regulator
controller upgrade, were required to avoid adverse effects.
ln March 2019, an ldaho irrigation customer submitted 13 applications for a total
of 1212 kW of customer-owned on-site solar generation on two distribution circuits. The
applications are presently being studied for distribution circuit impact. Four of the
applications totaling 400 kW are on a distribution circuit that currently hosts a 21 MW
Public Utility Regulatory Policies Act of 1978 (.PURPA') wind facility. Significant upgrades
may be necessary to support the additional customer-owned on-site generation. Other
distribution circuits with PURPA generation will be evaluated as customer-owned on-site
generation applications are received. Although growing quickly, the customer-owned on-
site generation 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
impacts on these circuits with infrequent upgrades as described above.
IV. 2018 EXCESS NET ENERGY CREDIT TRANSFERS
A. Manual Meter Aggregation
Schedule 6, Schedule 8, and Schedule 84 provide for customers with Small On-
Site Generation Service or Net Metering Service systems 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 Schedules 6, 8, and 84 (collectively referred
to as "aggregation criteria") 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
Meters is located. For the purposes of the tariff, contiguous property includes
s Schedules 6, 8, and 84 state the Designated Meter is the retail meter physically connected to the
Small On-Site Generation System (Schedules 6 and 8) or the Net Metering System (Schedule 84).
IDAHO POWER COMPANY'S ANNUAL NET METERING STATUS REPORT - 7
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 Small On-Site Generation
System6 or Net Metering System;7 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 1 1, 2018, Net Metering Service customers were sent a postcard
reminding them of the meter aggregation process and directing them to a website with
the requirements, an on-line form, and the deadlines for customers to submit an
application for transfer of eligible excess net energy credits. The Company also 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 , 2019, deadline, the Company received 81
applications for transfer and those applications were reviewed during February against
the aggregation criteria.
Based on the aggregation criteria, the Company determined that 66 of the requests
were eligible for transfer. The total amount transferred was 874,493 kilowatt-hours
6 Schedules 6 and 8 state the Small On-Site Generation System "is a Customer-owned Generation
Facility, with a total nameplate capacity rating of 25 kW or less, interconnected to the Company's system
under the applicable terms of Schedule 72 and this Schedule."
7 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 - 8
("kwh') generated from Small On-Site Generation Service or Net Metering Service
systems taking service under Residential (33 percent), Small General (12 percent), Large
General (14 percent), and lrrigation (41 percent) rate schedules. The 874,493 kWh were
transferred to customers taking service under Residential (45 percent), Large General
(14 percent), lrrigation (41 percent), and Small General (less than 0.5 percent) rate
schedules.
The Company received 15 applications that were ultimately found to be ineligible
for transfer based on the following:
. One applicant did not have excess net energy credits.
. One applicant requested a transfer to a meter that was not on a compatible rate
schedule.
. Three applicants requested a transfer to a meter that was not on contiguous
property, one of these also did not have excess generation credits.
o Ten applicants did not have a second meter to transfer their excess credits to.
The Company contacted by phone and/or mail all customers who had requested
a transfer but whose applications were denied to explain the reason the requested
transfer could not be completed.
The annual meter aggregation process is still a manual process; however, the
Company has implemented certain internal processes to aid in the determination of
eligibility under the aggregation criteria. For example, when evaluating the 2018
aggregation eligibility to determine whether a Designated Meter was on a contiguous
property to a meter where a customer was requesting a transfer to, the Company utilized
the county assessor's map to evaluate property boundaries and overlaid this map with
internally availably facility location maps (generated from the Company's GIS system) to
determine whether the meters are contiguous. This modification to the prior practice of a
IDAHO POWER COMPANY'S ANNUAL NET METERING STATUS REPORT - 9
representative reviewing only ldaho Power's internal GIS maps has improved the
Company's ability to objectively apply the meter aggregation criteria.
B. 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.8 The Company had accumulated
approximately 0.5 million, 1.3 million, 2.3 million, 2.6 million, and 4.3 million unused
excess net energy credits by the end of years 2014,2015,2016,2017, and 2018,
respectively. At the rate of growth for these unused net energy credits, ldaho Power
foresees a potentially significant liability that may never be resolved under the current
program.
V. CONCLUSION
ldaho Power continues to experience rapid grovuth in its Small On-Site Generation
Service and Net Metering Service. As with previous years, the capacity of on-site
generation taking service under Schedules 6, 8, or 84 in ldaho Power's service area
nearly doubled during the past year. The Company will continue to monitor participation
and growth in Small On-Site Generation Service and Net Metering Service and keep the
Commission apprised of Net Metering Service provisions and impacts on system
reliability.
8 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 fonltrard 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 - 1O