20160701Decision Memo.pdf

TO:
DECISION MEMORANDUM
COMMISSIONER ICIELLAIIDER
COMNIISSIONER RAPER
COMIVIISSIONER AIIDERSON
COMNIISSION SECRETARY
COMN{ISSION STAFF
DAPITNE HUAI\G
DEPUTY ATTORNEY GENERAL
FROM:
DATE: JIILY 1,2016
SUBJECT: IDAHO POWER'S APPLICATION TO MODIF"Y OPTIONAL
SCHEDULE 62, GREEN ENERGY PURCHASE PROGRAM RIDER,
CASE NO.IPC-E.16.13
On June 22,2016,Idaho Power Company filed an Application with the Commission
to modify its Schedule 62,the Green Energy Purchase Program. The proposed modifications do
not change customer rates associated with the ongoing funding of the Program, but change the
Program's pricing structure, Renewable Energy Credits (REC) sourcing and certification, and the
treatment of certain program expenses. Idaho Power asks that the case be processed by Modified
Procedure, and that the proposed modifications become effective 60 days after Commission
approval, to allow adequate time to reprogram and test its billing system in accordance with the
Commission's Order.
BACKGROUNI)
The Commission approved Idaho Power's Schedule 62 Green Power Program in
February 2001, as an optional program to allow customers and non-customer participants to
participate in the purchase of new environmentally friendly green energy." Order No. 28655;
Application at 2 (footnote omitted). Participants' contributions to the Program go towards the
purchase of Green-e certified Renewable Energy Credits (RECs). Application at 2. "A REC is
created when a megawatt-hour (MlVh) of renewable energy is produced and delivered to the
gid." Id. It is "a tradable, non-tangible commodity that represents the environmental attributes
associated with one MWh of electricity generated from a renewable energy resource and can be
sold separately from the electricity commodity." Id. According to the Application, "Green-e
DECISION MEMORANDUM
Energy is the nation's leading independent certification and verification program for renewable
energy." Id.
THE APPLICATION
Idaho Power's proposed modifications are in response to customer input, received
dwing meetings with the Company from February 2014 to early 2016. Id. at 3. The Company
states that the proposed changes are intended to "satis$ changes in customer preference . . .
[and] align the Green Power Program with the best practices of other green programs in the
industry." Id.
The proposed modifications include: (l) existing Dollar Contribution Method would
be replaced with both a block option and a 100 percent of usage option; (2) the Bonneville
Environmental Foundation (BEF), which facilitates the purchase of green energy for the
Program, would give preference to RECs from sources located closest to within Idaho Power's
service territory, when possible; (3) Idaho Power would seek Green-e certification of the RECs
purchased through BEF; (a) up to 15 percent of the total Program funds would be used for
Program marketing expenses, to allow the Company to reach more customers. Id. at2-5.
STAFF RECOMMENDATION
Staff recommends that the Commission issue a Notice of Application and Notice of
Modified Procedure with a 28-day comment period.
COMI/flSSION DECISION
Does the Commission wish to issue a Notice of Application and Notice of Modified
Procedure with a 28-day comment period?
M:IPC-E-16-13_djh
DECISION MEMORANDUM