20200428Annual Net Metering Report.pdf

LISA D. NORDSTROM
Lead Counsel
[e-mail]
ELECTRONIC FILING
April 28, 2020
Ms. Diane Hanian, Secretary
Idaho Public Utilities Commission
PO Box 83720
Boise, ID 83720-0074
RE: Compliance Filing in Case No. IPC-E-12-27
Annual 2020 Net Metering Status Report
Dear Ms. Hanian:
Pursuant to Order Nos. 32846 and 32925 in the above-mentioned case, attached for
electronic filing is Idaho Power Company’s Annual Net Metering Status Report for 2020.
If you have any questions regarding this filing, please contact Regulatory Analyst
Kristy Patteson at [phone] or [e-mail].
Very truly yours,
Lisa D. Nordstrom
LDN/kkt
Enclosure
cc: Karl Klein, IPUC
RECEIVED
2020 April 28,PM2:57
IDAHO PUBLIC
UTILITIES COMMISSION

IDAHO POWER COMPANY’S ANNUAL NET METERING STATUS REPORT - 1
Idaho Power Company
Annual Net Metering Status Report
April 28, 2020

Idaho Power Company (“Idaho Power” or “Company”) presents its annual Net
Metering Status Report to the Idaho 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 participation levels and growth rates since the Company’s last Net
Metering Status Report filed with the Commission in April 2019. The report then
discusses system reliability and concludes with an update on accumulated net excess
energy credits and meter aggregation activity in 2019.
I. EXISTING SMALL ON-SITE GENERATION AND NET METERING SERVICE
A. Current Participation and Growth Rates
As of December 31, 2019, Idaho Power’s Small On-Site Generation and Net
Metering service consisted of 5,483 total active systems with a cumulative nameplate
capacity of 46.03 megawatts (“MW”) in its Idaho service area. During calendar year 2019,
participation in Small On-Site Generation and Net Metering service increased by 2,271
active systems (a 71 percent increase) and incremental nameplate capacity of 20.19 MW.
All new systems that were interconnected during 2019 were solar photovoltaic (“PV”).
During the first quarter of 2020, growth continued with the Company adding 113
new active systems with aggregate nameplate capacity of 0.86 MW and 496 pending
applications with an additional 19.0 MW of nameplate capacity. At the end of the first
quarter of 2020, Idaho Power had 6,092 active and pending systems, which represents a
52 percent growth rate since the same time last year.

1 On page 19 of Order No. 32846, the Commission directed Idaho 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 - 2
Table 1 provides the total number of active and pending Small On-Site Generation
Service and Net Metering systems in the Company’s Idaho jurisdiction by resource type
and customer class.
Table 1: Active and Pending Small On-Site Generation Service and Net Metering
Systems as of March 31, 20202
Solar PV Wind Hydro/Other Total
Schedule 6
Residential On-Site Generation 5,644 34 7 5,685
Schedule 8
Small General On-Site Generation 57 1 4 62
Schedule 84
Commercial & Industrial 150 1 0 151
Irrigation 193 1 0 194
Total Idaho 6,044 37 11 6,092

Table 2 provides the total nameplate capacity of active and pending Small On-Site
Generation Service and Net Metering systems in the Company’s Idaho jurisdiction by
resource type and customer class.
Table 2: Active and Pending Small On-Site Generation Service and Net Metering
Nameplate Capacity (MW) as of March 31, 2020
Solar PV Wind Hydro/Other Total
Schedule 6
Residential On-Site Generation 42.34 0.13 0.07 42.55
Schedule 8
Small General On-Site Generation 0.49 0.02 0.09 0.60
Schedule 84
Commercial & Industrial 5.46 0.00 0 5.46
Irrigation 17.23 0.04 0 17.27
Total Idaho 65.51 0.19 0.16 65.87

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 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 - 3
Chart 1 below details the increasing cumulative Small On-site Generation Service
and Net Metering system counts by customer class and nameplate capacity growth from
2010 through the first quarter of 2020 (including pending applications).
Chart 1: Cumulative System Counts and Capacity (by Customer Type)

Idaho Power has experienced significant growth in the net metering capacity
occurring in Schedule 84, specifically the irrigation class. In the last year, from March 31,
2019, to March 31, 2020, active and pending capacity in the irrigation class has grown
243 percent, from 5.02 MW to 17.23 MW. Chart 2 represents active and pending growth
between 2012 and March 31, 2020, for only the irrigation class.

IDAHO POWER COMPANY’S ANNUAL NET METERING STATUS REPORT - 4
Chart 2: Irrigation Total Nameplate Capacity, 2012 – 2020 Q1 YTD

Idaho Power also continues to receive requests from irrigation customers asking for
detailed information on their meter data points, including geographic information systems
data flagging contiguous property, names of distribution feeders for each meter, with an
interest in installing Net Metering Systems on their properties.
II. SYSTEM RELIABILITY CONSIDERATIONS
There are 678 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, 2020, there were 5,596 active
operational customer-owned on-site generation systems. These systems total
approximately 46.88 MW on 449 distribution circuits. This compares to 3,293 active
operational systems totaling approximately 27 MW across 413 distribution circuits on
March 31, 2019.
The circuits that contain the greatest number of customer-owned on-site
generation systems continue to be in Ada County, with the densest concentrations
primarily in east, southeast, and south Boise. However, the greatest customer-owned

IDAHO POWER COMPANY’S ANNUAL NET METERING STATUS REPORT - 5
on-site generation connected capacity is on circuits with both agricultural and rural
customers. The largest number of customer-owned on-site generation systems
connected on a single distribution circuit is 84 with a total rated capacity of 545.39
kilowatts (“kW”). The distribution circuit in Idaho with the greatest customer-owned on-
site generation connection capacity has 19 solar PV systems with a total rated capacity
of 781.29 kW. This circuit also serves both agriculture and rural customers with a summer
peak load of approximately 10,800 kW.
Although growing quickly, the customer-owned on-site generation connected kW
capacity on the Company’s distribution system continues to remain small at 1.5 percent
of the total system peak load. The Company has been able to manage the impacts on
these circuits, when necessary, with requiring customer-funded upgrades pursuant to
Rule H. The Company anticipates the future use of smart inverters will support the
ongoing stability and reliability of the distribution system.
III. 2019 EXCESS NET ENERGY CREDIT TRANSFERS
A. Manual Meter Aggregation
Schedule 6, Schedule 8, and Schedule 84 provide for customers with Small On-
Site Generation or Net Metering 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
Meter3 is located. For the purposes of the tariff, contiguous property includes
property that is separated from the premises of the Designated Meter by public
or railroad rights of way; and

3 Schedules 6, 8, and 84 define the Designated Meter as 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 - 6

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
System4 or Net Metering System;5 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 30, 2020, 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.
In Order No. 32925, the Commission directed Idaho 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, 2020, deadline, the Company received 125
applications for transfer and those applications were reviewed during February against
the aggregation criteria.
Based on the aggregation criteria, the Company determined that 102 of the
requests were eligible for transfer. The total amount transferred was 2,118,709 kilowatt-
hours (“kWh”) generated from Small On-Site Generation Service or Net Metering systems

4 Schedules 6 and 8 define the Small On-Site Generation System as “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.”

5 Schedule 84 defines the Net Metering System as “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 - 7
taking service under Residential (17 percent), Small General (3 percent), Large General
(16 percent), and Irrigation (64 percent) rate schedules. The 2,118,709 kWh were
transferred to customers taking service under Residential (20 percent), Large General
(16 percent), Irrigation (64 percent), and Small General (<1 percent) rate schedules.
The Company received 22 applications that were ultimately found to be ineligible
for transfer based on the following:
• Four applicants did not have excess net energy credits.
• One applicant requested a transfer to a meter that was not on a compatible rate
schedule.
• Thirteen applicants did not have a second meter to which their excess credits
could be transferred.
• One applicant withdrew their application.
• Two applicants submitted duplicate applications.
• One applicant submitted a request to transfer from an account that was not on
a customer generation rate.
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.
Since the implementation of the excess net energy credit transfers authorized by
the Commission in Order No. 32925, the Company has witnessed significant growth in
the magnitude of excess net energy transfers, specifically the irrigation class. In total, the
Company has transferred approximately 200 thousand, 250 thousand, 500 thousand,
600 thousand, 900 thousand, and 2 million excess net energy credits as for years 2014,

IDAHO POWER COMPANY’S ANNUAL NET METERING STATUS REPORT - 8
2015, 2016, 2017, 2018, and 2019, respectively. The following chart shows the total kWh
transfer for years 2015 through 2019 by customer class.

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.6 The Company had accumulated
approximately 0.5 million, 1.3 million, 2.3 million, 2.6 million, 4.3 million, and 7.6 million
unused excess net energy credits by the end of years 2014, 2015, 2016, 2017, 2018, and
2019, respectively. At the current rate of growth for these unused net energy credits,
Idaho Power recognizes there will likely be a need for some future regulatory action to
resolve this increasing liability that will not otherwise naturally be resolved under the
current regulatory treatment.

6 In 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.”
172,436 226,834 288,583 360,181202,665
225,125 251,357 227,368
402,555 81,428 134,874
358,542
1,355,974
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
2014 2015 2016 2017 2018 2019
Residential Commercial Irrigation

IDAHO POWER COMPANY’S ANNUAL NET METERING STATUS REPORT - 9
IV. CONCLUSION
Idaho Power continues to experience rapid growth in its Small On-Site Generation
and Net Metering Service. 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 Idaho Power can continue to offer safe, reliable, fair-
priced electrical service now and in the future. 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.