20160707notice_of_application_order_no_33552.pdf

Office of the Secretary
Service Date
July 7,2016
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF IDAHO POWER )
COMPANY’S APPLICATION TO )CASE NO.IPC-E-16-14
APPROVE NEW TARIFF SCHEDULE 63,A )
COMMUNITY SOLAR PILOT PROGRAM )NOTICE OF APPLICATION
)
)NOTICE OF
)INTERVENTION DEADLINE
)
______________________________
)ORDER NO.33552
On June 22,2016,Idaho Power Company filed an Application with the Commission
to authorize it to implement an optional program,Schedule 63,Community Solar Pilot Program.
Under the Program,the Company proposes to build a 500 kilowatt (kW)single-axis tracking
community solar array in southeast Boise that will allow a limited number of Idaho Power
customers to subscribe to the generation output.Idaho Power asked that the case be processed
by Modified Procedure.The Commission now issues the following notice of Idaho Power’s
Application and Order setting a deadline for interested parties to intervene.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that,with Idaho Power’s Application to approve its
Community Solar Pilot Program,the Company also filed the proposed Tariff Schedule 63,and
Direct Testimonies by David Angell,Matthew Larkin,and Peter Pengilly.
YOU ARE FURTHER NOTIFIED that,according to Idaho Power,the proposed
Program enables customers to invest or participate in the “operation of solar resources”without
“requir[ing]upfront capital costs ...[and]long-term expenses and liabilities associated with
system operation and maintenance.”Application at 2-3.The Company’s proposal also permits
participation in a solar power program by those for whom “rooftop or ground-mounted solar
installations”are not feasible.Id.at 2.
YOU ARE FURTHER NOTIFIED that Idaho Power states the Program is being
offered in response to customer input.Id.The program is separate from Idaho Power’s existing
Green Energy Purchase Program Rider,for which Idaho Power has filed an Application to make
modifications,in Case No.IPC-E-16-13.
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO.33552 1
YOU ARE FURTHER NOTIFIED that the proposed Community Solar Program
would be open to the following customer service classes on a first-come,first-served basis:
residential,small general,large general,large power,agricultural irrigation,Micron special
contract,Simplot special contract,and Department of Energy special contract.Application at 3-
4.Under the Program,individual customer subscriptions would allow expected annual
production up to 100%of a participant’s usage for the prior 12 months on a kilowatt-hour (kWh)
basis.Id.at 4.The Application sets forth the number of subscriptions and kWs to which
customers are limited,as well as the transferability of subscriptions in the event a participant
moves within Idaho Power’s service area.Id.at 4-5.Idaho Power proposes to retain ownership
of renewable energy credits (RECs)associated with the Program.Id.at 5.
YOU ARE FURTHER NOTIFIED that,if the Program is approved,participants’
monthly energy production would be calculated as per kWh “Solar Energy Credits”(SEC)that
participants receive for their share of the solar production each month.Application at 5-6;
Larkin Direct at 12.The Company proposes calculating its per kWh SEC as the product of the
rate specified in tariff Schedule 63,and the participant’s share of the total monthly production for
the month.Application at 10.The Company would base the SEC on “its embedded energy-
related costs recovered through base rates,”and would update them as needed.Id.Participation
in the Program would be reflected in participants’bills “as a dollar offset to the total bill,not as a
kWh credit that offsets billed kWh consumption.”Application at 6;Pengilly Direct at 13.
“[Ejxcess production [wouldJ be carried forward on a kWh basis to be credited on a participant’s
bill in a future month.”Id.
YOU ARE FURTHER NOTIFIED that the Company proposes ongoing operations
and maintenance (O&M)expenses of $16 per kW.Application at 6.If approved,the Program’s
facility would be built adjacent to Idaho Power’s Boise Bench substation.Id.at 7.Testimony by
David Angell,attached to the Application,describes the request for bid (RFB)process that the
Company used to secure a contractor for the design,procurement,and construction of the solar
photovoltaic (PV)system.Id.;see Angell Direct at 4-8.The successful bidder gave a cost
estimate for the project of $1,158,769.Application at 7;Angell Direct at 6.
YOU ARE FURTHER NOTIFIED that,in April 2016,Idaho Power completed the
facility study—required in order for the facility to interconnect with the Company—consistent
with Idaho Power’s Open Access Transmission Tariff with the Federal Energy Regulatory
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO.33552 2
Commission.Application at 7-8.According to the study,the preliminary interconnection costs
for the Program’s facility are about $81,000.Id.
YOU ARE FURTHER NOTIFIED that the Company states that the Program is
designed to “ensure that [its]costs ...are borne by customers who choose to participate .
while holding non-participating customers harmless.”Id.at 9.A participant’s subscription fee
would reflect “the cost to construct and interconnect the solar PV facility and market the
program,less an IDACORP,Inc.shareholder contribution of 15 percent,as well as ongoing costs
such as O&M expenses and property tax.”Id.The Company proposes the shareholder-funded
contribution of 15%of construction costs because the project is smaller than the industry
standard for a “utility scale”solar project,and because “construction of a larger facility would
likely result in cost savings due to economies of scale estimated at 15 percent.”Id.According to
Idaho Power,the Company would not earn a return on the Program.Id.
YOU ARE FURTHER NOTIFIED that,if its Application is approved,the Company
expects to receive federal investment tax credits (ITCs)of 30%for the Program.Id.The
Company would pass the ITC benefits to the Program participants,calculated into the upfront
subscription fee.Id.The proposed subscription fee,based on anticipated costs,is $740,“the
equivalent of a 320-watt panel.”Id.Idaho Power would treat the project facility as “utility
plant.”Application at 11.Using accounting methods set forth in the Application,the project’s
costs would be zero on the Company’s books,thus “any future change in base rates will exclude
any community solar plant-related costs.”Id.
NOTICE OF DEADLINE TO INTERVENE
YOU ARE FURTHER NOTIFIED that persons desiring to intervene in this matter
must file a Petition to Intervene with the Commission pursuant to this Commissions Rules of
Procedure 72 and 73,IAPA 31.01.01.072 and -.073.All Petitions to Intervene must be filed
no later than fourteen days from the service date of this order.Persons desiring to present
their views without parties rights of participation and cross-examination are not required to
intervene and may present their comments without prior notification to the Commission or the
parties.
NOTICE OF PARTIES
YOU ARE FURTHER NOTIFIED that the following person is designated as Idaho
Power’s representative in this matter:
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO.33552 3
Lisa D.Nordstrom
Idaho Power Company
1221 West Idaho Street
P.O.Box 70
Boise,ID 83707
E-Mail:[e-mail]
YOU ARE FURTHER NOTIFIED that the Idaho Conservation League (ICL)has
filed a Petition to Intervene in this case pursuant to Rules of Procedure 71 through 75 of the
Idaho Public Utilities Commission,IDAPA 31.0l.01.071-.075.Idaho Power has indicated it
does not object to ICL’s intervention.
YOU ARE FURTHER NOTIFIED that,once the deadline for intervention has
passed,the Commission Secretary shall prepare a Notice of Parties.Staff counsel will then
confer with the parties regarding a procedural schedule for this matter.
YOU ARE FURTHER NOTIFIED that the Application,attachment,and testimonies
have been filed with the Commission and are available for public inspection during regular
business hours at the Commission offices.The Application,exhibits,and testimonies are also
available on the Commission’s web site at www.puc.idaho.gov.Click on the “File Room”tab at
the top of the page,scroll down to “Open Electric Cases,”then click on either case number as
shown on the front of this document.
COMMISSION FINDINGS
As to ICL’s Petition to Intervene,we note that Idaho Power has indicated it does not
oppose.We find,based on ICL’s Petition,that ICL’s intervention would serve the purposes of
intervention as described by Rule 74 of the Rules of Procedure and should be granted.
ORDER
IT IS HEREBY ORDERED that the Petition to Intervene filed by Idaho Conservation
League is granted.
IT IS FURTHER ORDERED that additional persons desiring to intervene in this
matter shall file a Petition to Intervene no later than fourteen days from the service date of this
order.Once the deadline for Petitions to Intervene has passed,the Commission Secretary shall
prepare and issue a Notice of Parties.
IT IS FURTHER ORDERED that,after the Notice of Parties has issued,Staff counsel
shall confer with the parties regarding a procedural schedule for this matter.
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO.33552 4
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of July 2016.
ATTEST:
in D.Jewell
commission Secretary
KRI INE RAPER,COMMISSIONER
O:IPC-E-I 6-I 4_djh
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO.33552
ERIC ANDERSON,COMMISSIONER
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