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HomeMy WebLinkAbout20160623Pengilly DI.pdfREC E IVED ?ili$ JUi{ 22 PH h: 55 1i-:ir::i i-l.jsLlc, ', i-it ., .l0iihtlssl0N BEFORE THE IDAHO PUBLIC UTILTTIES COMMISSION IN THE MATTER OE IDAHO POV{ER COMPANY' S APPLICATION FOR APPROVAL OF NEW TARIEE SCHEDULE 63, A COMMUNTTY SOLAR PrLOT PROGRAM. CASE NO. IPC-E-16_L4 IDAHO POWER COMPANY DIRECT TESTIMONY OF PETER PENGILLY O. Please state your name, address, and present 2 occupation. A. My name is Peter Pengilly. My business 4 address is L22l West Idaho Street, Boise, Idaho. f am 5 employed by Idaho Power Company ("Idaho Power" or 6 "Company") as a Customer Research and Analysis Leader in 7 its Customer Relations and Energy Efficiency group. O. Please describe your work experience with 9 Idaho Power. 10 A. I began employment with ldaho Power in 11 December of L999 as a Senior Pricing Analyst in the Priclng L2 and Regulatory Services Department. My duties as a Senior 13 Pricing Analyst incl-uded the development of alternative L4 pricing structures, management of pricj-ng programs, the l-5 analysis of the impact on customers of rate design changes, L6 and the administration of the Company's tariffs. In that L7 position I helped develop several demand response programs, 18 a time-of-use piJ-ot program, and a critical- peak pricJ-ng 79 program. 20 In 2006 I was promoted to my current position as 21 Customer Research and Anal-ysis Leader in the Customer 22 Relations and Energy Efficiency Department. In this 23 position I am responsi-ble for the research, analysis, 24 forecasting, and reporting associated with Idaho Power's 25 energy efficiency and demand response programs. Part of my PENG]LLY, DI 1 Idaho Power Company 1 2 3 4 5 6 1 8 9 10 11 72 13 74 15 76 71 18 t9 20 27 22 23 24 25 current responsibilities is supervising the Company's Green Energy Purchase Program Rider ("Green Power Program"), net metering service, and the proposed community solar pilot program. O. proceeding? What is the purpose of your testimony in this A. The purpose of my testimony is to present the proposed framework for the Company's Community Solar Pilot Program ("Program"). O. How is your testimony organized? A. My testimony j-s organized as follows: (1) I provi-de a general overview of the proposed Program and a comparison of the Program to the existing Green Power Program. (2) I provide an overview of the customer input the Company has received to offer a community solar pilot program. (3) I provide a detailed description of the Program, as wel-l as the mechanics of the initial enrollment phase. (4) I discuss the ongoing costs of the Program whj-ch j-nclude ongoing administrative costs, marketing, and operatj-ons and maintenance ("O&M") costs. O. Are you sponsoring any exhibits? PENG]LLY, DI 2 Idaho Power Company Yes. I am sponsoring the following exhibits: 2 o Exhibit 3 - Idaho Power Community Solar 3 Pilot Program Participant Agreement 4 o Exhibit 4 - Customer Billing Example 5 I. Comnunity So1ar Pi].ot Program Overview 6 Q. Please describe the general framework of the 7 Program. 8 A. Eor the Program, Idaho Power 1s proposing to 9 construct a 500 kil-owatt ("kW") solar array located j-n 10 southeast Boj-se. The Program j-s open to Residential- 11 Service (Schedules 1 and 5), Sma11 General Service L2 (Schedule 1), Large General- Service (Schedule 9), Large 13 Power Service (Schedule L9), Agricultural Irrigation L4 Service (Schedule 24), Micron Special Contract (Schedule 15 26), Simplot Special Contract (Schedule 29), and the L6 Department of Energy Special Contract (ScheduJ-e 30) 1,1 customers. Participants can elect to purchase one or more 18 subscri-ptions in the solar array, reflecting a proportional L9 share of the generated electricity. Once the solar 20 facility is operational, participants wil-I receive a bill 27 credit (Solar Energy Credit) for their portion of the sol-ar 22 energy generated by the array. Parti-cipation is voluntary 23 and available on a first come first served basis. 24 O. Why is the Company requesting that the Program 25 be offered as a pilot? PENGILLY, DI 3 Idaho Power Company A. 1 2 3 4 5 6 1 8 9 10 11 72 13 t4 15 L6 L7 18 79 20 27 22 23 24 25 A.The Company intends for this initial offering to be treated as a pilot program to al1ow the Company to learn about the complexities associated with offering community solar programs j-ncluding customer commitment, construction, contracting, interconnection, maintenance, and billing. The Program is designed as a new optj-on in response to customers' preference for renewable energy options, and will serve to inform the consideration of potential expanded offerings in the future. o. Program? Is the Program replacing the Green Power A. No. The Program is being offered as a new option for customers who desire to support solar energy development. O. How is the Program different than the Green Power Program? A.The Green Power Program al-l-ows customers to contribute to renewable energy through the purchase of renewable energy certificates (*REC"). The Compdrly, through a broker, purchases and retires RECs on behalf of the program participants who are then able to claim the "green" attributes from the renewable energy sources that generated the REC. In contrast, a customer participating in the Community Solar Pilot Program is subscribing to the energy produced from a specific solar photovoltaic ("PV") PENGILLY, DI 4 Idaho Power Company 1 resource and receiving a bill credit based upon their level- 2 of subscription and the actual generatl-on from their 3 portion of the array. Idaho Power wil-l- retire the RECs 4 from the Program on behalf of the participants. 5 II. Community Solar Outreach 6 Q. What prompted the Company to investigate a 7 community solar project? I A. Customer interest in central station 9 distributed sol-ar generation was the subject of many 2075 10 Integrated Resource Plan (*IRP") discussj-ons, both among 11 Integrated Resource Pl-an Advisory Council (*IRPAC") members t2 and Idaho Power leadership. Late in the 201-5 IRP public 13 process, Idaho Power was approached by several interested L4 parties and asked to consider sponsoring a community solar 15 project. L6 On October t, 2075, Idaho Power hel-d a special fRPAC L7 meeting to discuss and obtain feedback on potential- 18 community solar project possibilities. fn attendance were 1,9 representatives for the environmental communlty, Idaho 20 Public Utilities Commission ("Commissj-on") Staff ("Staff"), 2L industrial customers, irrigation customers, and solar 22 install-ers. The response was generally positive. At this 23 meeting, there was beneficial- discussion which notably 24 incl-uded discussion around the price of solar arrays. 25 PENGILLY, DI 5 Idaho Power Company 1 2 3 4 5 6 1 8 9 10 11 t2 13 74 15 t6 1-7 18 L9 20 2L 22 23 24 25 . On Ylay 26, 20L6, Idaho Power invited the interested parties from the October 20L5 meeting along with Idaho Power customers who had expressed an interest in communlty solar to a meeting to present an outline of the Company's Communj-ty Solar Pil-ot Program design. The feedback from attendees was generally positive while several- questions were addressed. There has been no formal- feedback si-nce the meeting. Additionally, Idaho Power representatives met a number of times with the V'Iood River Va11ey Renewable Energy Working Group ("Group") to better understand the desire for renewable resources and worked col-laboratively to explore the feasibility of creating new energy products to better meet the growj-ng expectations of Idaho Power's customers. The Group dj-scussed many renewable energy options including community solar projects, and was instrumental in providing feedback for the development of the proposed revisions to fdaho Power's Green Power Program. If the Boise-based pitot Program is successful, the Company wilI continue to evaluate the concept and may potentially expand the offering to include community soJ-ar projects in the hlood River Va11ey area and other interested communities. o.Has the Company recej-ved any additional information that demonstrates customer interest i-n a community solar project? PENGILLY, DI 6 Idaho Power Company 1- A. Idaho Power's syndj-cated customer satisfaction 2 research studies have shown that residential customers are 3 more satisfied with their utility when they have choices 4 with regard to pricing, products, and service programs. 5 Additionally, some respondents to the Company's proprietary 6 customer satisfaction research studies have anecdotally 7 indicated a desire for the Company to more actively support 8 renewable energy. 9 Q. What kind of research did the Company perform 10 to determine the desj-gn of the Program? 11 A. The Company investi-gated several other 12 community solar programs, visJ-ted the Avista community 13 solar j-nstallation, and discussed with Avista staff the L4 details of their program. fdaho Power staff also spoke 15 with representatives from Flathead Electric, Rocky Mountain 16 Power, and Madison Gas and Electric. Additionally, the Ll Company reviewed reports and articl-es by Solar Electric 18 Power Association, Solar Electrj-c Industries Association, 19 and National Renewabl-e Energy Laboratory. 20 0. Did Idaho Power conduct any additional 2L outreach prior to filing the Program? 22 A. Yes. Idaho Power staff visited the 23 neighborhood near the planned l-ocation of the proposed 24 array. Company personnel visited 13 resi-dents and one 25 business and left j-nformational- material-s duri-ng each visit PENGILLY, DI 7 Idaho Power Company 1 to customers in the project's view-shed. During these 2 visits, Company personnel spoke to five residents and one 3 business customer. The response was generally positive 4 with one neighbor expressing concern. This customer was 5 informed of the public process for the construction of the 6 array and their opportunity to participate. Additionally, 7 Idaho Power circulated information to the neighborhoods 8 adjacent to the project either through personal hand- 9 delivered letters or through their respective homeowners 10 associations. 11 L2 IIf. Program Details O. How will the Program be admj-nistered by the 13 Company? 74 A. The Program will be avail-abl-e through a 15 separate tariff as a supplement to the customer's otherwise L6 applicable tariff schedule. The proposed Schedule 63, !7 Community Solar Pilot Program is provided as Attachment 1 18 to the Application in this matter. The tariff sets forth 79 the Subscription Eee, Solar Energy Credit, billing 20 provisions, and the terms and condj-tj-ons for participating 21, in the Program. 22 O. How did the Company determine the structure 23 for the Program? 24 A. As descrj-bed earlJ-er, the Company assessed the 25 various program structures of existing community solar PENGILLY, DI 8 Idaho Power Company I 2 3 4 5 6 7 I 9 10 11 t2 13 L4 15 76 77 18 t9 20 2L 22 23 24 25 programs across the country to determine which program structure or combination of program attributes would be the best fit for fdaho Power. The Company determined that the Program structure, as detailed below, is transparent, easy to understand, and protects non-participatinq customers and the Company from the financial risk of an under-subscribed proj ect. Program Terms and Conditions o. A. What are the basic program design components? The key program mechanics are summarized below: 1. Program participants elect to purchase one or more subscriptions in the generation output for the life of the project (25 years). 2. Individual residential- customers can subscribe to as many subscriptions as desired, but expected annual production assocj-ated with their subscription l-eveI cannot exceed 100 percent of their usage for the prior L2 months (on a kwh basis). 3. Nonresidential customers may apply for up to 50 subscriptions each, but the expected annual production associated with their subscri-ption l-evel cannot exceed 100 percent of their usage for the prior 12 months (on a kWh basis). PENGILLY, DI 9 Idaho Power Company 1 2 3 4 5 6 7 I 9 10 11 t2 13 L4 15 76 t1 18 19 20 2t 22 23 24 25 4. fnitially Nonresidential customers will- be l-imited to 47 0 subscriptions j-n aggregate, representing approximately 150 kW of the total 500 kW, and residential customers will be abl-e to subscri-be to 1093 subscriptions or about 350 KW. 5. Subscriptions will be awarded on a first- come, first-served basj-s until Program capacity is reached.The first 60 days of the initial enrollment window wil-l reserve 10 percent of the project for residential customers and 30 percent for nonresidential customers as detail-ed above. After the 60-day ti-meframe, if there is unsubscribed capacity that was reserved for residential customers it may be opened up to nonresi-dential customers and vice versa. 6. Idaho Power employees and net-metering customers wil-l only be abl-e to subscribe after the initial 60-day enrol-l-ment period in order to test other customers' commitment to community sol-ar. 1. If participants move to other points of electric service delivery within the Company's Idaho service area, thej-r subscriptlon will transfer with them at no charge. 8. If a participant moves outside the Company's service area and the participant notifj-es PENGILLY, DI 10 Idaho Power Company I 2 3 4 R 6 1 I 9 10 11 72 13 L4 15 L6 t7 1B 19 20 2L 22 23 24 25 the Company in writing within 60 days of closing their account, the partici-pant may transfer their subscription to another eligible customer for a transfer fee of $25.00. 9. If a parti-cipant moves outside the Company's service area and does not request a subscription transfer as detail-ed above, the subscription will revert to Idaho Power. l-0. Idaho Power wil-I retain ownershj-p of the RECs and aI1 other environmental attributes, including but not limited to, carbon emission reduction credits, and the RECs will be retired by Idaho Power on behalf of subscribers. Enrol-l-ment Process O. When can a customer enroll in the Program? A. Following Commission approval, the Company will begin marketing and enrolling customers in the Program. The Company hopes to have nearly ful-I enrollment L20 days from Commission approval, but may adjust this based on the difficulty of enrol-Iing customers during the holiday season. O. How will customers enrol-l- in the Proqram? A. Customers will be required to fill out the Participant Agreement with Idaho Power, provided as Exhibit PENGILLY, DI 11 Idaho Power Company 7 4, and return the signed agreement along with a check 2 payment in order to be enrol-Ied. 3 Q. What level- of enrollment is necessary for the 4 project to move forward with construction? 5 A. Idaho Power reserves the right to discontinue 6 efforts on the Program if the project is not fully 7 subscribed wj-thin 720 days after the commencement of the 8 enrollment period. However, fdaho Power may at its 9 discretj-on elect to continue the Program even if it is not 10 fully subscrj-bed within that time period, but expects that 11 it would not continue the project if less than 80 percent 72 of the Program is subscribed within L20 days after the 13 commencement of the enrollment period. 74 O. When would the Company need a Commission 15 order to sufficj-ently market and enroll customers in the 1,6 Program? 71 A. Based on the proposed online date of June 18 2077 detailed j-n Mr. Angell's testj-mony, the Company 19 belj-eves that an order by September 15, 2076, would al-Iow 20 sufficient time to market the Program prior to the holiday 27 season. The Company's marketing group has expressed 22 concern that it will be difficul-t to interest customers in 23 this Program during the holidays and w111 make successful 24 marketing more difficult. Receiving an order by September 25 PENGILLY, DI 72 Idaho Power Company 1 2 3 4 5 6 1 B 9 10 11 L2 13 L4 15 76 11 18 19 20 27 22 23 24 25 15 would allow close to 90 days to market and enroll customers prior to the holidays. Customer Billing O. How will participants receive credit for the energy the solar panels actually produce? A.The Solar Energy Credit, described and quantified by Company witness Mr. Larkin, will be applied to each kWh associated with the participant's subscription for a given month; however, participants will see the bill credits for solar production as a dollar offset to the total bill, not as a kWh credit that offsets biIIed kltlh consumption. The solar array's actual loss-adjusted output each month (measured in kwh), will be applied to participant's bil-Is according to the proportional number of subscriptions each participant purchases. o.Pl-ease describe what will happen if a participant's share of monthly production exceeds their monthly usage. A. The Company proposes to l-imit the monthly bj-II credj-t to the participant's monthly kWh usage. Any excess production will be carried forward on a kWh basis to be credited on a participant's bill in a future month. For example: A participant uses 1,000 kwh in a month and their share of the solar production is 1,100 kwh. The biII credit for the month will be the Solar Energy Credit rate PENGILLY, DI 13 Idaho Power Company 1 multipJ-ied by 1,000 kwh. The participant will have 100 kwh 2 that will carry-forward to be credited on a future monthly 3 bill. 4 Q. How will actual loss-adjusted output be 5 measured? 6 A. Actual- loss-adjusted output will be measured 7 on a calendar month basis, with each participant's 8 proportion of the output applied as a credit on the next 9 avaj-Iable monthly bill. The time period between the 10 measurement of production and application to the bill will 11 vary based on each participant's bill cyc1e. 72 O. Are there other J-mpacts to a participant's 13 bill- if they participate in the Program? 74 A. Yes, as described in Mr. Larkin's testimony, 15 the participant's share of the monthly output will also 76 serve as an offset to bi1led kwh subject to the Power Cost 77 Adjustment rate. 18 O. W1II participants have access to the 79 facility's electric production data? 20 A. The array's electric productj-on will be 2L measured with an interval meter and the Company plans to 22 make the array's generation data available on Idaho Power's 23 website as soon as possible after the array is put into 24 service. The output attributed to a specific participant 25 wil-I be shown on their monthJ-y biII. PENGILLY, DI 74 Idaho Power Company 1 2 3 4 5 6 1 I 9 10 11 72 13 T4 15 L6 1-1 18 19 20 27 22 23 24 25 o. participant's A. Have you provided bill ? Yes. Exhibit 4 to an example of a my testimony provides a I customer' s non-summer subscribed to the output of billing example for a residentia bill if they used 1,000 kWh and a single subscriptj-on. o. IV. Ongoing Progra.m Costs Pl-ease describe the ongoing costs associated with the Program. A. The ongoing program costs occur in three main categories: (1) administration, (2) marketing/education, and (3) O&M expense. O. Pl-ease describe the administration costs associated with the Program. While the Company anticipates that the Program wil-1 require approximately 0.5 ful-L-time employees for management and project oversight, there are no incremental administrative expenses included in the cost assumptions for the Program, as the Company expects to rely on its existing workforce to serve the administrative functlon for this Program. The administrative support for the Program will- include monitoring and evaluatlng Program progress, customer servj-ce support with contracts, enrollments, and transfers. Because this is a pilot program, the Company wiII be abl-e to evaluate administrative responsibilities PENGILLY, DI 15 Idaho Power Company A. 1 and determine what changes may be necessary in order to 2 gain efficiencies if the Company chooses to expand the 3 Program. 4 Q. How much did the Company attribute to the 5 Program for expected marketing expense? 6 A. The Company has j-ncluded $50,000 for marketing 7 and ongoj-ng communlcation expenses as part of the total 8 costs of offering the Program. 9 Q. P1ease provide an overview of the Program 10 marketing and ongoing education strategy. 11 A. Marketing tactics during the enrollment perlod 72 may include targeted direct mail, e-mail, social media, and 13 online advertising, as well as mass communications through L4 the Idaho Power bill and website. Idaho Power plans to 15 reach out to local stakeholder groups, including 16 conservation organizations and others that have shown an 1,7 interest in promoting sol-ar energy. Idaho Power will train 18 customer representatives in the Company's customer service 79 center and at the regional field offices so they may 20 promote the offeri-ng to interested customers. 21, The Company recognizes that customers should be 22 aware of a1l renewable energy choices available to t.hem at 23 the time of enrol-l-ment to ensure they choose the one that 24 best f its thelr needs. Therefore, the Company wil-l- market 25 the Community Solar Pilot Program alongslde the Green Power PENGILLY, DI L6 Idaho Power Company 1 Program, leveraging resources and providing both programs 2 additional visibility. After the initial enrollment 3 campaign, the Company anticipates ongoing education and 4 communication to participants as is done with the Green 5 Power Program. 6 Q. How much did the Company attribute to the 1 Program for ongoing O&M expenses? I A. The total Program costs include ongoing O&M 9 expenses of $16 per kW, or approxi-mately $8,000 escalated 10 at 2.61 percent, beginning in year four, to account for 11 inflation. The Company determined the ongoing O&M rate 12 based on the selected contractors bid to provide OeM 13 services for the first three years at $8,064 per year. The t4 O&M rate of $16 per kW was cal-culated by dividing $8,064 by 15 the size of the array, 500 kW. The Company believes this L6 1evel of funding should be sufficient for the panel and 77 array maintenance over the 25-year l-ife of the array. The 18 ongoing O&M requirement is one of the learning objectlves 19 of the Program. 20 O. It'Iho will provide the ongoing O&M activities 2t for the Program? 22 A. The first three years of maintenance will be 23 performed by the sel-ected contractor. After the initial factor. PENGILLY, DI L1 Idaho Power Company llduho Power's lnLernal budget escal-ation 1 2 3 4 5 6 1 I three years, the Company will either assume these duties or contract with a maintenance contractor. o.Please summarize the costs incl-uded in the total Program costs. A.As discussed above, the marketing costs are included as part of the total cost of offering the Program, as are expected ongoing O&M costs. Given the proposed treatment of administrative expenses described above, none 9 of these expenses are included in the expected Program 10 11 \2 13 1,4 15 16 17 18 19 20 2L cost. V. Conclusion O. Please summarize your testimony. A. Idaho Power is proposing a Community Sol-ar PiIot Program to respond to customer and stakeholder preference for support of renewabl-e energy. The Program is voluntary and available on a first-come first-served basis. The Program provides customers wj-th a solar energy alternative for those not interested in owning and operating their own system or for those customers that, due to a variety of reasons, cannot have sol-ar PV installed at thej-r home. Enrollment in and marketing of the Program 22 will- begin immediately fol-lowing Commission approval and 23 continue for 720 days as described above. At that tlme, the 24 Company will decj-de if construction and subscription should PENGILLY, DI 18 Idaho Power Company 25 proceed. 1 2 3 4 5 6 7 8 9 10 11 t2 13 L4 15 16 t1 18 79 20 2L 22 23 24 25 o. A. Does this complete your Yes i-t does. testi-mony? PENGILLY, DI 19 Idaho Power Company t\{" 1 2 3 I 5 6 '7 8 9 10 11 !2 13 74 15 76 t1 18 79 20 2L 22 23 24 25 26 27 ATTESTATION OF TESTNOITY STATE OE IDAHO ) ) ss. County of Ada ) l, Peter Pengi1ly, havj-ng been duly sworn to testify cruthfully, and based upon my personal knowledge, state the following: I am employed by Idaho Power Company as the Customer Research and Analysis Leader in its Customer Relations and Energy Efficiency group and am competent to be a witness in this proceeding. I dec1are under penalty of perjury of the l-aws of the state of Idaho that the foregoing pre-filed testj-mony and exhibits are true and correct to the best of my information and belief. DATED this 22nd day of June, 2016. SUBSCRIBED June, 2016. AND SWORN to before me this 22"d day of otary Residing at: $r." i1,*.; lICl.thCMy commission expires r q-Z / Oq i ZOZ\ PENGILLY, DI 20 Idaho Power Company Pengilly BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION GASE NO. IPC-E-16-14 IDAHO POWER COMPANY PENGILLY, DI TESTIMONY EXHIBIT NO.3 IDAHO POWER COMMUNITY SOI.AR PITOT PROGRAM PARTICIPANT AGREEMENT Thank you for your interest in ldaho Power Company's ("!daho Power") Community Solar Pilot Program ("Program"). lf you rvish tc participate in the Program, please complete this Participant Agreement. Participation in the Program is subject to the terms and concjitions set forth in this Participant Agreement ('Terms and Conditions") and in Schedule 53, Comrnunity Solar Pilot Program ("Schedule 53"). Participant Agreements will be processed on a first-come first-served basis. Participant(s) will receive confirmation of participation as soon as administratively practicable, which ldaho Power expects to generally occur within 10 business days following submission of a completed Participant Agreement. Once completed, please submit this Participant Agreement with your Subscription Fee icheck made payable to ldaho Power Companylto: ldaho Power, Community Solar Pilot Program, PO Box 70, Boise, lD 83707. You should retain a copy of this Participant Agreement for your own personal records. Account tnformation Note: Subscription(s! in the Program will be tied to a specific customer service agreement, which is identified by a Service Agreement Number. The Service Agreement Number can be found on your monthly ldaho Power bill. First Name Last Name Account No.Service Service Address state zip State ZipMailing Address tr I would like my name listed on any Program public recognition pieces (plaques, newsletters, etc.)that ldaho Power may prepare from time to time. Pavment Total Annual Solar Energy, in kilowatt-hours ("kWh"l, may not exceed 100% of the annual energy use of the customer service agreement. lf known, annual energy use at the Service Agreement Number for which the Subscription applies (last 12 months, if available)lsthis amount EActual or E Estimated? The forecast annual energy generation per Subscription is approximately 638 kwh. lwouldliketoapplyfor-Subscriptions(definedbelow)ats740.00eachforatotalofS (Please make the check payable to ldaho Power Company.) Acknowledgement of Terms and Conditions tr I have read, understand, and agree to the Participant Agreement Terms and Conditions and Schedule 53. tr I certify that I meet the eligibility requirements outlined in the Participant Agreement Terms and Conditions and Schedule 53. tr I certify I am the customer listed on the customer service agreement and have the full power and authority to sign this Pa rticipant Agreement. tr I have enclosed a check for my Subscription Fee payable to ldaho Power Company.tr I have made a copy of this Participant Agreement for my records. Participant Signatu Exhibit No. 3 Case No. IPC-E-16-14 P. Pengilly, IPC Page 1 of5 City City Print Name Date PARTICIPANT AGREEMENT - TERMS AND CONDITIONS AvailabiliW and Eligibilitv The Program is available to Residential Service (Schedules 1 and 5), Small General Service (Schedule 7), Large General Service (Schedule 9), Large Power Service (Schedule 19), Agricultural lrrigation Service (Schedule 24), Micron Special Contract (Schedule 26), Simplot Special Contract (Schedule 29), and the Department of Energy Special Contract (Schedule 30) customers ("Eligible Customers"). This voluntary Program is available to Eligible Customers in good standing with electric service accounts with service addresses located within ldaho Powe/s ldaho service territory. Non-metered and lighting accounts may not participate in the Program. lf ldaho Power does not receive a minimum number of total Subscriptions for the Program, ldaho Power may terminate the Program and refund the Subscription Fees, as set forth below under "Refund of Subscription Fee." Subscription Fee A "Subscription" shall mean a proportionate interest in the electricity generated by the community solar array. ldaho Power estimates that 1,563 Subscriptions will be available, though the actual number of available Subscriptions may vary. The upfront payment (Subscription Fee) by a prospective participant of 5740.00 per Subscription is required. Refund of Subscription Fee ldaho Power will have no obligation to refund all or any portion of the Subscription Fee at any time or for any reason, except where (a) ldaho Power does not build the community solar array in which case ldaho Power will refund the Subscription Fee plus annual interest in accordance with ldaho Public Utility Commission Rule 101, or (b) ldaho Power does not accept the prospective participant's application (whether due to ineligibility, oversubscription of the Program, or otherwise). Particioation Participation in the Program is applicable on a first-come, first-served basis to all Eligible Customers who complete a Participant Agreement for this Program ("Participant(s)"). Participant(s) must be 18 years of age or older and have full power and authority to execute this Participant Agreement. Participant must be the customer of record for the service agreement to which the subscription applies. All customers of record on the customer service agreement may make decisions regarding the Subscription. To participate in the Program, Eligible Customers must sign and return the Participant Agreement along with payment of the Subscription Fee. Should an Eligible Customer have more than one customer service agreement, they must designate which customer service agreement and account the Subscription should apply to. Customers that ldaho Power determines are ineligible at its sole discretion will be contacted and the Participant's Subscription Fee check will be returned without interest. Subscription Size Residential customers may apply for multiple Subscriptions; however, the sum of the Subscriptions may not exceed 100 percent of the customer's usage for the prior 12-month period (on a kWh basis) per customer service agreement. Residential customers may apply for one Subscription regardless of usage. Nonresidential customers may apply for up to 50 Subscriptions, however, aggregate annual energy from the elected Subscriptions may not exceed 100 percent of the usage for the prior 12-month period (on a kWh basis) per customer service agreement. Nonresidential customer Subscription limits may be expanded based on total Program enrollment. Exhibit No. 3 Case No.|PC-E-16-14 P. Pengilly, IPC Page 2 of 5 lf 12 months of usage data is not available, a prospective participant may estimate his/her annual usage, using a method that includes, but is not limited to, usage by similarly-sized properties or buiider or architect estimates. All estimates may be reviewed and approved by ldaho Power in its sole discretion. Term The Program term will extend 25 years from the date of first production of solar energy on a non-test basis ("Operation Date"). Service on Schedule 53 will commence with the first regular meter reading following approval of the customer's Participant Agreement by ldaho Power or after the Operation Date. Calculation of Solar Enerw Credit The monthly Solar Energy Credit will be equalto the product of (a) the rate set forth in the rate schedule specified in Schedule 53 and (b) proportional share of the monthly generation from the solar array for that month (as determined by the number of Subscriptions and monthly generation). The month to which the Solar Energy Credit is applicable may not match the billing period for the retail electric service billing which the Solar Energy Credit is applied. The monthly bill credit will be limited to the Participant's monthly billed kWh. Any excess production will be carried forward on a kWh basis. The Power Cost Adjustment rate Schedule 55 will be applied to the net of the Participant's total energy use measured as the Participant's monthly billed kWh less the subscribed share of the monthly solar output measured in kWh. The monthly credit is subject to change to correspond with changes in the average embedded energy cost reflected in retail rates or as otherwise modified by ldaho Public Utilities Commission order. ldaho Power makes no representation or warranty regarding the amount of energy output from the solar array under the Program. Cancellation Participant is not eligible to receive a refund of any portion of the Subscription Fee upon cancellation or termination of its Subscription(s). Participant may elect to transfer the Subscription to another Eligible Customer within 60 days of Participant's cancellation or termination of Participant's applicable customer service agreement with ldaho Power. lf no transfer is made within such 50-day period, Participant's Subscription will revert back to ldaho Power. Subscription transfer terms are discussed below. Subscription Transfer A Participant may elect to transfer the remaining life of his/her Subscription to a new customer service agreement or service location for the same Participant who meets the eligibility requirements. Such transfers are not subject to additionalfees. Participants may transfer the remaining life of a Subscription(s) to another Eligible Custome/s service agreement, including an eligible non-profit, for a 525.00 fee. Participants with more than one Subscription may transfer Subscriptions in whole subscription increments to one or more Eligible Customers for a S2S.00 fee per transfer. A single subscription cannot be split for transfers. Participants must notify ldaho Power in writing of their intent to transfer any Subscription(s) within 60 days of the occurrence of such transfer. Transfers will only be effective if the recipient satisfies the Terms and Conditions applicable to the Subscription and signs the Participant Agreement and assumes all responsibilities associated therewith. No Third ParW Beneficiaries Except as to the recipient(s) of any transferred Subscriptions, the Participant Agreement and these Terms and Conditions are intended solely for the benefit of Participant and ldaho Power. Nothing in this Participant Agreement shall be construed to create any duty to, or standard of care with reference to, or any liability to, any person or business Exhibit No. 3 Case No. IPC-E-16-14 P. Pengilly, IPC Page 3 of 5 entity not a party to this Program; provided, however, that the recipient(s) of any transferred Subscriptions shall be subject to the same obligations as set forth in this Participant Agreement and these Terms and Conditions. No Other Transfer or Pledse of Subscriotion(sl Participant may NOT pledge the Subscriptions(s) as security for any loan. Except as set fonh above, (Subscription Transfer) Participant may not assign, gift, bequeath, or othenuise transfer any Subscription(s) to any other individual or entity. Ownership of FaciliU ldaho Power has sole ownership, possession, and control of the solar array included in the Program and will have the exclusive right to maintain and operate the solar array. Enrollment in the Program does not convey any right, title, or interest in or to any portion of any property (tangible or non-tangible, real improvements or any equipment of ldaho Power). Access to Solar Arrav Participant will not have access to the solar electric'rty generation, interconnection, metering, data acquisition, or other related solar array facilities for any purpose, unless otherurise agreed to in writing in advance by ldaho Power. Such access may be withheld or granted in ldaho Powe/s sole discretion. Ownership of Environmental Attributes To ensure that Renewable Energy Certificates ("REC") associated with the generation output of the solar array are appropriately recorded and tracked, ldaho Power will retain ownership of the RECs and all other environmental attributes generated by the solar array, including but not limited to, carbon emission reduction credits. The RECs will be retired by ldaho Power on behalf of Participants on an annual basis. No Effect on Electric Rates and Tariffs Nothing in this Agreement shall be deemed to alter or modify any rate, charge, or condition of service (including any policies, fees, charges or assessments) established from time to time by ldaho Power for electric service. All such rates and charges shall remain subject to change at any time. Participant acknowledges and agrees that the electric bill to which the Energy Credit is associated with the Participant's Subscription(s), shall reflect those rates and charges established or changed from time to time by ldaho Power. Participation in the Program shall not give Participant any increased or augmented right to contest or otherwise affect the determination of any rates or charges by ldaho Power for electric services. Notice Except for ldaho Power's confirmation of participation in the Program to Participant by email, all notices, requests, consents, and other communications under these Terms and Conditions will be in writing via email or to the mailing address for ldaho Power set forth below and the Participant's Service Address set forth above unless a different mailing address is provided by Participant in the Participant Agreement. Written notice may also be provided by electronic mail, if by ldaho Power, to the most recent electronic mail address on file, and if by Participant, to the following address: ldaho Power, P.O. Box 70, Boise, lD 83707. Binding Effect These Terms and Conditions shall bind and insure to the benefit of Participant and ldaho Power and permitted successors a nd assigns. No Waiver Neither Participant's, nor ldaho Power's failure to enforce any right or obligation with respect to any matter arising in connection with this Program shall constitute a waiver as to that matter or any other matter. lf a party at any time waives its rights with respect to a default under these Terms and Conditions or any other matters arising in connection with this Program, the waiver shall not be effective unless it is set forth in a written notice signed by the waiving party. A waiver with respect to one default or matter shall not be a waiver of any other default or matter. Exhibit No. 3 4 Case No.|PC-E-16-14 P. Pengilly, IPC Page 4 of 5 Disclaimer of Warranties Participant acknowledges that, except to the extent specifically stated herein, ldaho Power has not made any representation, warranty, or promise with respect to any aspect of the performance, condition, value, risks, or likelihood of success of the Program or the Subscriptions fcr which the Participant has applied herein. PARTICIPANT ACKNOWLEDGES AND AGREES THAT EXCEPT AS STATED rN rHrS PARTTCTPANT AGREEMENT, THE SUBSCRIPTION(S) ENROLLED IN ARE MADE AVAIIABLE AS.I5, AND WITIIOUT WARRANW OF ANY KIND. ANY OTHER WARRANTIES, EXPRESS OR IMPLIED, ARISING BY OPERAT]ON OF LAW OR OTHERWISE ARE HEREBY DISCLAIMED, INCLUDING WITHOUT LiMITATION ANY \A/ARRANW OF MERCHANTABILITY, FITNESS FOR ANY PARTICULAR PURPOSE, OR OTHERWISE. Participant has not relied upon any advice from ldaho Power or any representative of ldaho Power as to the prudence of Participant's participation in the Program. Participant understands that any questions or concerns about available tax credits, tax benefits, tax liability, incentives, and any other attributes of Participant's participation in the Program, or any term or condition in this Participant Agreement should be raised with Participant's tax or legal advisers or the appropriate govern mental agencies. Under no circumstances shall any Participant have a right to receive damages, whether compensatory, exemplary, or othenrrise, and whether arising in contract, tort or by other legal theory relating to this Participant Agreement or the Program in an amount that exceeds the amount of his, her, or its Subscription Fee, REDUCED BY the amount of any Solar Energy Credits actually received by such Participant. ln connection with any claims asserted under this Participant Agreement or otherwise in connection with the Program, ldaho Power may, without derogation or limitation of any other defenses available to ldaho Power and without waiver of any rights or claims ldaho Power might otherwise have against any person, terminate this Participant Agreement and the Participant's interest in the Program, and may pay, as the Participant's sole and exclusive remedy, an amount equal to the Subscription Fee of such Participant, less the amount of any and all Solar Energy Credits received by or payable to Participant for his, her, or its participation in the Program from the date of this Participant Agreement until the termination date. Indemnification for Breach of Participant Asreement Participant hereby releases and shall defend, indemnify, and hold harmless, ldaho Power, its successors, and assigns, and the directors, officers, employees, and agents of ldaho Power and its and their successors and assigns from, for, and against any and all claims, losses, costs, liabilities, damages, and expenses (including, but not limited to, reasonable attorney fees) arising out of or in connection with any breach of this Participant Agreement by Participant. Force Maieure Neither Participant nor ldaho Power shall be liable for any failure to fulfill any obligation under this Participant Agreement due to circumstances beyond either part/s reasonable control which circumstances may include, but are not limited to, fire, flood, earthquake, elements of nature, riots, civil disorders, rebellions or revolutions in any country, changes in governmental rules, laws, regulations, ordinances, permits, or licenses, relating to this Participant Agreement or the Program, or any other cause beyond the reasonable control of a party. Governinq Law/Jurisdiction/Venue The Participant Agreement (including these Terms and Conditions) shall be deemed to have been made in, and shall be construed under, the laws of the State of ldaho, without regard to the principles of conflicts of laws thereof. Entire Agreement The Participant Agreement and the Terms and Conditions, together with any regulatory tariffs applicable to the Program, constitute the entire agreement between the parties with respect to the subject matter hereof and supersede all previous proposals, both oral and written, negotiations, representations, commitments, writings, and all other communications between ldaho Power and Participant. Exhibit No. 3 Case No.|PC-E-16-14 P. Pengilly, IPC Page 5 of 5 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION GASE NO. IPC-E-16-14 IDAHO POWER COMPANY PENGILLY, DI TESTIMONY EXHIBIT NO.4 nEUos!Foi,ER.5rcttcorEry wuu.ldahoporrff.com Account Actlvlty Cltrluon!? ConEctuE * PlO 80X 71r, 80iro, lD 8:]707. orclll (208) $!Aa3 O]asu. VtlLy) fi (tO).Ltaltr, 8o hdle ospeltd.Forffirlrvba pLso cdlTllldly - Frt&y, 7:30 e.m. b 0:30 p.m, Cuetomer Narno: Aocount Number: Billing Date: Print Date: Paga I of 2 SOTAR COMMUNIry€AMPLE BILLm2{6ttt unff2016 041252016 Due Date ' Please Pay 0511012016 ! 195.32 Prsvious Balance Payments - Thank You Balance Fonrard Cunent Charges Pla.c ilot : Any unpald balancos may b6 Bsessod e monthly charge ot 1 porcsnt. Any cr€dit on lhe eccount wlll be applled b iJtu,€ bilE or csn be Efund€d upon cuslomBr r€quast. Rsturn€d psyment8 may be la8ubmitbd el€clronically. lbms romainirts unpaid will be ch.Eed a $20 fae. v Plesse de|cfi and ratJm th6 portion below wilh yolr paymant. Ploase bring enilr€ stetemsnt when paying at e pay ststion. y $E6.24 $E6.24 $ o.oo $95.32 s!ffiffih" E3,33lJt.,o, m roAcmp comp.ny (208) 38&2323 (Tlsasure Valley) or (800) '188€1 51 Please wriE y(rrr ec@unt numbor on your ch€ck or money ordor mad€ payable to /d,lp fusr,. ACCOUNT NUTBER 221231567E Amount Enclosed Prol.c{Ellrr pLdgr, notod on roveras sHa. DUEDATE PLEASEPAY 0st10r2016 $95.32 $ l;1l,,lll, g,!1,lll,l, grl.1.1gll,l,llllL,1l,llt,1,1l.lgl.1l,lgll! T20l ocrt37. SOLAR COMMUNITY Og99 MAIN ST BLACKFOOT, rD 83221-3166 ll.lll'.!ll'llllll,t,lll,lt!!1llr.l..l.l,tll,t.hrltll'llltl.'ll PROCESSING CENTER P.O. BOX 34966 SEATTLE, W498124-1966 Addrt.rrPlEn Cofltc{on, notad on Ewrsg Cde. Exhibit No.4 Case No. IPC-E-16-14 P. Pengilly, IPC Page 1 of 2 iilGrax m01t373 r 0002{o8a 3EHM. Ir tilcolP comrny w[u.Hrhopouf.cqn Serulcc Aglromont ilo: @31234567 Reeidential Standard Plan Schedule 0l qr.!0dtr? Cmlrd u! at FO BOX 70, 8oa!., lO 8370. orcall (2(n) tta-zUt (TrllurvalLy)q (t001tll{l!i. s. h.bb csPattot.Faltr !..vicapl.-ocallTtrldly - Fddry, T:30..m. be3O p.m. Gusbmerl.lame: SOIARCOMMUNITY Account Number: AA131[/l7a ElillirB Date: 04,n$m10 Print Dale: o4'nSnAlB Next Rcad Datc: OS2U2O16 Pago 2 of 2 $5.00 $63.74 $18.27 $7.38 $0.94 $3.47 $1.82 CR $1.66 CR Readiry Type BHhg lil i BLC 9i0 Service Charge Non-Summer Energy Charge 800 kwh @ $0.079675 per kWh Non-Summer Energy Charge 208 kwh @ $0.087839 per kWh Annual Adjustment Mechanism Franchise Fae 1.00% Energy Efriciency Services Federal Columbia River Benefits Supplied by BPA Solar Eneroy Credit 55 k\ Jh @ $0.03024627 kwh t s€d t006 Gurrant Charges - Electrlc Service $95.32 CR=Credit kWh=Kiloratt-hour PcA=PowerCostAdjustrrent kW=Kilowatt BLC=BasicloadCapacity G=Generation Your Electrlc Use Pattern EEBOi0- 7lllill3 lf witing information belon, please ched< the appropriate box ofl the re\r€rs€ side. LrF0UEl. NEW coNTACT rNFoRmAnoN:mD^coRPcommv Oo€s ldaho Power have your conect mailing address ad phone number? lf not, please rrrrite any clunges belor: Apt./Suite Telephone Numbsr EmallAddrsss NNGM$ m1t373 / mO2{& Account Number: 2212{5678 PR(UECT SHARE PLEI'GE Please add the amourl indiceted to my mmthlyblll. I woud like io make a ono.lim6 contrlbutlon ln the smount of $ PloeBo round-up my monthly blllamount to lhe n€arcst dollar end contributo lhe dlfier€noo to Proiect Sherc. Thrnk you nrd dilra r.mmbrr to trlck you? t r.d.ductlbL dorull,on.. Exhibit No. 4 Case No. IPC-E-16-14 P. Pengilly, IPC Page2ol2 3r0 City Zip Code