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HomeMy WebLinkAbout20170727Tatum Direct.pdfBEEORE THE IDAHO PUBLIC UTILITTES COMMISSION i:i,i:ttlVL$ :;ll -rij,. 2i Pl4 3: 35 (-, SSi0ltj CASE NO. IPC-E-17_13 IN THE MATTER OF IDAHO POWER COMPANY' S APPLICATION FOR AUTHORITY TO ESTABLISH NEW SCHEDULES FOR RESTDENTIAL AND SMALL GENERAL SERVICE CUSTOMERS WITH ON-STTE GENERATION IDAHO POWER COMPANY DIRECT TESTIMONY OE' TIMOTHY E. TATUM 1 2 3 4 5 6 1 I 9 O. Please state your name, business address, and present position with Idaho Power Company ("Idaho Power" or "Company"). A. My name is Ti-mothy E. Tatum. My business address is I22l West Idaho Street, Boise, Idaho 83702. I am employed by Idaho Power as the Vice President of Regulatory Affairs in the Regulatory Affairs Department. O. Please describe your educational background. A. I earned a Bachelor of Business Administration degree in Economics and a Master of Business Administration degree from Boise State University. I have also attended electric utility ratemaking courses, includj-ng "Practical SkilIs for The Changing Electrical Industry, " a course offered through New Mexico State University's Center for Public Utilities, "Introduction to Rate Design and Cost of Service Concepts and Techniques" presented by El-ectric Utilities Consul-tants, Inc., and Edison Electric Institute's "Electri-c Rates Advanced Course." In 20L2, T attended the Utility Executj-ve Course (UEC) at the Universlty of Idaho, and subsequently became a member of the UEC faculty in 2075. O. Please describe your work experi-ence with Idaho Power. A. I began my employment wlth Idaho Power in 1996 in the Company's Customer Servlce Center where I handled TATUM, DI Idaho Power t_ Company 10 11 t2 13 74 15 16 L1 18 19 20 2L 22 23 24 25 1 customer phone caIls and other customer-rel-ated 2 transactions. In 1-999, T began working in the Customer 3 Account Management Center where I was responsibJ-e for 4 customer account maintenance in the areas of billing and 5 metering. 6 In June of 2003, I began working as an Economic 7 Analyst on the Energy Efficiency Team. As an Economic 8 Analyst, I was responsible for ensuring that the demand- 9 side management ("DSM") expenses were accounted for 10 properly, preparing and reporting DSM program costs and 11 activities to management and various external stakeholders, 1,2 conducting cost-benefit analyses of DSM programs, and 13 providing DSM analysi-s support for the Company's Integrated 1,4 Resource P1an. 15 In August of 2004, T accepted a position as a 76 Regulatory Analyst in the Regulatory Affairs Department. l7 As a Regulatory Analyst, I provided support for the 18 Company's various regulatory activities, incJ-uding tarlff 19 administratj-on, regulatory ratemaking and compJ-iance 20 filings, and the development of various pricing strategies 2L and policies. 22 In August of 2006, I was promoted to Senior 23 Regulatory Analyst. As a Senior Regulatory Analyst, my 24 responsibilities expanded to include the development of 25 complex financial studies to determine revenue recovery and TATUM, DI 2 Idaho Power Company 1 pricing strategj-es, including the preparation of the 2 Company's cost-of-service studies. 3 In September of 2008, I was promoted to Manager of 4 Cost of Service and, in April of 2071, T was promoted to 5 Senior Manager of Cost of Service and oversaw the Company's 6 cost-of-service activities, such as power supply modeling, 7 )urisdictional separatj-on studies, class cost-of-service 8 studies, and marginal cost studies. In March 2076, I was 9 promoted to Vice President of Regulatory Affairs. As Vice 10 President of Regulatory Affairs, I am responsible for the 1l- overall coordination and direction of the Regulatory 72 Affairs Department, including development of jurj-sdictional 13 revenue requirements and cl-ass cost-of-service studies, 74 preparation of rate design analyses, and administratj-on of 15 tariffs and customer contracts. 1,6 O. What is the scope of this docket? L1 A. With this case, the Company intends to inform 18 the Idaho Public Utilities Commission ("Commission") that I9 offering has matured to a point 20 21 its net metering service where certain aspects of review and modification. offering warrant the information Idaho Company wil-l- request customers the service 22 Power will- present in this 23 that the Commission initiate certain near-term steps to 24 transition from current net metering practices to an In light of case, the 25 eventual pricing and compensation structure for TATUM, Idaho DI Power 3 Company 1 with on-site generation that is both fair and sustainabl-e 2 ::ri-o the future. In support of this eventual transition, 3 the Company wiII also recommend the Commission establish a 4 formal process by which a comprehensive review of the 5 compensation structure for customers with on-site 6 generation can be analyzed and vetted collaboratively with 7 j.nterested parties I Q. What aspects of the current net metering 9 service does Idaho Power believe warrant review and 10 modification? 11 A. Idaho Power is required to maintain a network 72 of interconnected power plants, transmission poles/wires, 13 substations, and distribution poles/wires to balance the t4 supply of and demand for el-ectricity in its service area. 15 This complex system of infrastructure, people, and L6 integrated systems is sometimes referred to as our "power L1 grid" or "the grid. " Existing retail rate designs 18 currently applicable to residential and smal-1 general 19 service (*R&SGS") net metering customers were structured to 20 collect the costs associated with the grid under the 2l assumption that customers woul-d only need one-way services 22 provided soleJ-y by the utility. Whil-e this pricing 23 structure does not perfectly align costs incurred with 24 prices paid for each individual customer, overall this rate 25 TATUM, DI Idaho Power 4 Company 1 structure has worked for R&SGS customers who receive one- 2 way services from ldaho Power. 3 However, this pricing structure does not work Eor 4 customers with on-site generation who require some services 5 from Idaho Power (use of the grid and some of their 6 energy), but who also meet some of their own energy needs 7 with an on-site generation system (e.9., rooftop solar). 8 Many within this growing customer segment use the grid 9 every hour of the month, but when the existing rate 10 structure is applied against monthly net consumption, 11 customers with on-site generation may pay l-ess than their 72 fair share for the grid-related services they require whil-e 13 receiving credit for their respective kilowatt-hours 14 (*kwh") of production at the full retail rate energy rates; 15 rates reflective of the cost of utility-provided energy and 16 grid services and not the benefits and costs associated L7 with customer-owned energy productJ-on. The existing R&SGS 18 rate design does not reflect the costs and benefits of the L9 transaction between Idaho Power and its customers with on- 20 site generation. 27 O. Why is Idaho Power proposing the Commission 22 review and consider modifylng net metering service 23 practices at this time? 24 A. Net metering is was implemented in 1983 when a non-cost based policy that residential- rate designs were TATUM, Dr 5 Idaho Power Company 25 1 2 3 4 q 6 7 8 9 Iimited by meters that could only track 1nf1ow and outflow, and distributed energy resources ("DER") were an expensive and nascent technology. The circumstances that existed when net metering policies and practices were originally established have changed dramatically across the nation, and more specifically, in Idaho Power's service area. First, Idaho Power has deployed Advanced Metering fnfrastructure (AMI) in its service area, enabling the Company to achieve more precise usage measurement and facil-itate more sophisticated, cost-based rate designs. SecondJ-y, the cost of sol-ar photovoltaic (*PV") has contj-nued to decline resulting in increased adoption. Thirdly, and arguably most importantly, the Company believes its net metering service has reached a pivotal point; that is, Idaho Power has witnessed rapid growth in its net metering service in recent years and has identified a quantifiabl-e cost shift occurring between its residential net metering customers and residential standard service customers. Considering recent growth, the Company bel-ieves it can reasonably predict that future cost shifting between these customer groups will j-ncrease substantially in the next few years if left unaddressed. 10 11 L2 13 74 15 16 l7 1B 79 20 2t 22 23 24 longer Incentj-vizing net needed and resul-ts metering through in inappropriate rate design is no cost shifting. must position the TATUM, DI 6 Idaho Power Company 25 Furthermore, our customers teII us we 1 2 3 4 5 6 '7 B 9 Company to meet changing customer preferences and offer services that are going forward as and lmprove. For the time has come toward establishing rate structures for customers fair and sustainable into O. this fiJ-ing? A. with on-slte qeneration establishment of two new fair and sustainable for al-l- customers sol-ar panel technology continues to evol-ve reasons described later in my testimony, gradual, yet meaningful, steps designs and compensation with on-site generation that are the future. to take What specifically is the Company requesting in 10 The Company is requesting that the Commission 12 issue an order authorizing the following: (1) closure of 13 Schedule 84, Customer Energy Production Net Metering, R&SGS customers14 ("Schedule 84") to new service for Idaho 15 after December 31, 2011 , (2) 11 t6 L1 1B 79 20 21 22 cl-assifications of customers 23 24 applicable request to to R&SGS customers with on-site generation that interconnect to Idaho Power's system on or after January l, 20L8, with no pricing changes at this time, (3) acknowledgement that smart inverters provide functionali-ty that is necessary to support the ongoing stabil-ity and reliability of the distribution system by ordering the Company to amend its appJ-icable tariff schedul-es to require the instal-l-atj-on and operation of smart inverters for all new customer-owned generator interconnections within 60 TATUM, DI Idaho Power 7 Company 25 1 2 3 4 5 6 7 8 9 days fol-l-owing the adoption of an industry standard definition of smart inverters as defined by the Institute of El-ectrical and Electronic Engineers (*IEEE"), (4) conrmencement of a generic docket at the conclusi-on of this case with the purpose of establ-ishing a compensation structure for customer-owned DERs that reflects both the benefits and costs that DER interconnecti-on brings to the electric system. O. Is the Company 10 the customers that woul-d be suggesting pricing changes for placed in the newly established No, not at this time. At this time, the requesting authority to implement two new tariff Schedule 6, Residential Service On-Site ("Schedul-e 6") and Schedule 8, Smal1 General 15 Service On-Site Generation, 11 L2 13 t4 1_5 20 2t 22 classes ? A. Company is schedules, Generation, Residential- Service, and respectively. Under this Schedule 6 and Schedu]e 8 proposal, the rates under would continue to mirror the to serve new The newly initially to Schedule 7, General Service, based L] R&SGS customers with on-si-te ("Schedule 8") generation. 18 established Schedule 6 and Schedule 8 would 19 contain rates that mi-rror those appllcable Schedule l, Small 23 rates contained in Schedule I and Schedule 7 until the 24 Commission determines the proper rate design and/or and Schedule I TATUM, DI fdaho Power vU Company 25 compensation structures for Schedule 6 1 2 3 4 5 6 1 I 9 upon appropriate cost of service studies and other applicable generation valuation studies. O. How is the Company's case organized? A. My testimony will- begin with an overview of how the continued evolution of customer preferences and technological advances require that Idaho Power evaluate and modify the servj-ces it provJ-des to customers. I will then discuss the cost shifting that exj-sts with current net metering practices, the need for establishing separate customer classes, and important considerations related to existing net metering customers. Company witness Connie Aschenbrenner wil-l- review the history of the an overview of Company's net metering service and provide 10 11 L2 13 L4 15 Commission. Ms the associated cases brought . Aschenbrenner will provide before the an update on and wil-lt6 11 net metering participation and growth discuss the Company's ef forts rel-ated rates, to customer and 1B stakeholder engagement prior to 1,9 1n this case. Ms. Aschenbrenner the Company's will discuss application the Company's R&SGS20 27 22 request to customers new tariff establish new customer classes for 23 wil-l discuss the Company's efforts related to customer 24 communication of this filing. 25 with on-site generation and the implementation of Schedul-es 5 and 8. Lastly, Ms. Aschenbrenner TATUM, DI 9 Idaho Power Company I 2 3 4 5 6 7 8 9 and how the Company's distribution system. He will generation util-ize the then address the questi-on of DER contribute to the deferralwhether increasing l-evel-s of of future investment in distri-bution infrastructure. Lastly, Mr. Angell will present the benefits provided by smart inverters and explaj-n the Company's request relative to a smart inverter requirement for customers who interconnect on-site generati-on to Idaho Power's system. I. EVOLVTNG CUSTOMER PREFERENCES AIID TECTINOLOGICAI. AD\IA}ICES o.Has the Company experienced a change in r with regard to how they take13 customer needs and preferences L4 service? 15 A. Yes. As technology has evolved, so have customer preferences and expectations with regard to where and how their energy 1s produced. Innovation, particularly advances in sol-ar PV technology and personal views on solar power, has resul-ted in larger numbers of customers choosing to install on-site generation. O. General-Iy, what types of solar PV innovation has the utility industry witnessed? 16 L1 18 23 A Advances in solar energy, specifically technology, have 1ed to24 discoveries in the solar panel Company explanation of R&SGS customers witness Dave Ange11 the electrical grid with on-site will provide an 10 11 t2 19 20 2t 22 An articl-e written TATUM, DI Idaho Power 1n 10 Company 25 j-ncreased solar panel efficiency. 1 2 3 4 5 6 1 I 9 20L1 by EnergySage, attached as Exhibit No. 7, stated that: "A number of achi-evements by various panel current recordhave brought us to today's manufacturers for sol-ar panel claimsefficiency: that, "The could also 23.5 percent . ." solar ceII types used The article also in mainstream markets metric that compares improvements in cost per watt a rel-ative affordabitity of solar panels." These reductions in cost have led to growth in the development of non-utility-owned power. fn fact, ofl May 10, 2017, USA Today reported that Tesla, best known for its electric cars, "wi11 begin selling and installing sol-ar roof tiles for U.S. customers this summer." The article, attached as Exhibit No. 2, went on to explain that "g1ass solar roof tiles with embedded solar col-l-ectors" woul-d be of see major 10 11 L2 13 L4 15 "more durabl-e than a typical roof, a third lighter and L6 cheaper when electricity savings and tax credj-ts are l7 included. " Developments in power technology in the form 18 on-site or self-generation are becomJ-ng more readily 19 available, affordable, and attractive to customers. 20 O. What type of growth rate has the solar 27 industry witnessed? 22 A. The So1ar Bnergy Industries Association 23 ("SEIA") reports that the solar industry j-s growing at a 24 record pace. In the article attached as Exhibit No. 3, 25 TATUM, Idaho DI Power 11 Company 1 2 3 4 5 6 7 8 9 SEIA claims that: "In the last decade, solar has experienced an average annual growth rate of 682." O. Has Idaho Power experienced growth in 1ts net metering service conrmensurate with the growth experienced across the industry? A. Yes. As more fulJ-y described in Ms. Aschenbrenner's testimony, the Company has seen similar growth in its net metering service, most notably in the last few years. Idaho Power j-nterconnected j-ts f irst residential customer-owned sol-ar PV system in 1983, and this remained the only residential customer with self- generati-on for almost 20 years. fn 2002, the net metering service was expanded to accommodate two additional requests for servj-ce. As of the end of June 2011, Idaho Power has L,287 net metering systems in Idaho taking service under Schedule 84 and has received 181 applications from 11 customers who intend to i-nstall a system and take service an artj-cIe pubJ-ished on 10 11 l2 13 74 15 t6 20 18 under Schedule 84. 79 2017, by the Press, a weekly newspaper Idaho solar market is attached as Exhibit No. 4 According Meridian to May 5, serving Meridi-an f daho: "The 2l exploding." Thls article is 22 II. IIET METERIIIG COST SHTFT 23 O Please describe what is meant by the term 24 "cost shift" i-n the context of this case. TATUM, Idaho DI Power 1,2 Company 25 1 2 3 4 5 6 1 8 9 A. Currently, the Company's R&SGS customers are billed two types of charges: (1) a flat monthly service charge of $5.00 and (2) per kWh energy charges that vary by season and total- monthly consumption. Due to the limited billing most of through the associated from investment volumetric energy with all components in generation requirement is col-l-ected rates. This includes costs of the electrical system, resources to the meters components associated with these rates classes, the Company's revenue 10 instal-Ied on customers' premises. Consequently, energy 11 rates for R&SGS customers refl-ect not only the energy- 72 related components of the revenue requirement, but fixed 13 costs associated with generation, transmlssion, and L4 distribution as wel-l-. 15 For this type of rate design, recovery of fixed 76 costs from an individua] customer declines with any 1,7 reductj-on in net energy usage. This creates a potential 18 inequity between net metering customers and standard L9 service customers as net metering customers, who stil-I rely 20 heavily upon the grid to both purchase power and transfer 2t excess generation, are provided the opportunity to unduly 22 reduce col-l-ection of class revenue requirement by reducing 23 a portion or even all of their net kWh usage while other 24 residential- customers are left to compensate for the fixed 25 costs that transfer to them through this revenue shortfall-. TATUM, Dr 13 Idaho Power Company 1 2 3 4 5 6 1 I 9 o. cost shifting that collects How does the industry perceive the concept of caused by net metering under a rate design the majority of fixed costs through a volumetric rate? A. Cost shifting is generally accepted and regulators nationwide have attempted to address it. In November 20L6, the National Association of Regulatory Utility Commissioners (*NARUC") Staff Subcommittee on Rate Design lssued the Distributed Energy Resources Rate Design and Compensation manual ('NARUC Manual"). The NARUC Manual states "DER customers who supply most, if not all, of their own needs annually, but not necessarlly daiIy, may be undercompensating the utility under certain [Net Energy Meteringl rate designs for the generation, transmlssion, and distribution investments that were made on behal-f of the customer. "1 Others in the industry have concluded that the net metering policy is also regressive j-n nature. An October 2016 Public Utilities Fortnightly article, "Rethinking Ratj-onale for Net Metering, Quantifying Subsidy from Non- Solar to Solar Customers" (attached as Exhibj-t No. 5) TATUM, DI Idaho Power 10 11 L2 13 74 15 15 L7 18 t9 20 2t 22 stated: "The subsidy, in aggregate, constitutes a 23 regressive wealth transfer from l-ower-income customers to 1 NARUC Manual, P. 89. http: / /pubs.naruc.orq/pub/19FDE48B-AA57- 5 1 6 O - DBA1 -BE2E9C2F7 EAO t4 Company 1 2 3 4 5 6 1 I 9 higher-income customers." Idaho Power shares this concern. The Company does not believe it is fair for its customers without the financial ability or desire to install solar to subsidize those who do. 0. Has the potential for cost shifting caused by rate design been discussed in a case in front of this Commission? A. Yes. As explained more fu11y in Ms. Aschenbrenner's testimofly, the potential for cost shifting was acknowledged by this Commission as earJ-y as 2002 and in subsequent cases in front of the Commission. In a 2002 order, the Commission stated it recognized that in the net metering program it approved for R&SGS customers, "the ful1 cost of the program may not be borne by participants."2 In a 20L2 order, the Commission acknowledged, "net metering customers do escape a portion of the fixed costs and shift the cost burden to other customers in their class. "3 In that same order, the Commj-ssion stated, "dramatic changes . should not be examined i-n isolation but shoul-d be fully vetted in a general rate case proceedirlg."4 O. Does the Company bel-ieve, in light of the Commission language cited above, that the Commission shoul-d 2 Case No. IPC-E-01-39, 3 Case No. IPC-E-1,2-21 , 4 rd. aL 72. 10 11 L2 13 74 15 t6 L1 18 t9 20 2t 22 Order No. Order No. 28951, p 32846, p 72. 13. TATUM, Idaho DI Power 15 Company 1 2 3 4 5 6 7 I 9 authorizel the Company to establish separate customer classes for R&SGS customers with on-sj-te generation at this time? Yes. The Commission's statement from Order No. 32846 was made in reference to the Company's proposed pricing modifications in that case, which were specific to R&SGS net metering customers, and included a request to increase the service charge, introduce a new basic load capacity (*BLC") charge, and reduce the energy charge. In the current proceeding, Idaho Power i-s only requesting that the Cornmission approve the formation of two new rate schedul-es on a prospective basj-s with no proposed modifications to rate design or compensation. The Company belie'zes its relatively limited request in this case does not contradict the Commisslon's order issued i-n Case No. IPC-E-72-27. Establishing separate customer classes now will position the Company to utilize its class cost-of- servj"ce process to allocate revenue requi-rement to the newly established customer classes and also inform the Company as to what rate design makes sense for the residential customer class in a future rate proceeding absent the inclusion of the net metering customers. Eurtherr dS described more fully in Ms. Aschenbrenner's testimony, the level of adoption of net 25 metering in Idaho Power's service area has grown TATUM, DI 16 Idaho Power Company 10 1t_ t2 13 14 15 L6 t7 18 t9 20 2L 22 23 24 1 2 3 4 substantially since the conclusion of IPC-E-L2-21 and does not show si-gns of slowing. As stated in the NARUC Manual, rate design incentive may not be necessary as adoption rates increase: 5 Rate design and compensation decisj-ons made in one year will lj-kely need to be reviewed, modified, or changed over time as technologies continue to develop, as customers adopt DER at greater (cr slower) rates, and as needed to support economics. Eor example, a decision to adopt net energy meteri-ng (NEM) as the compensation methodology may be appropriate if a regulator decides to incentivize adoption rates of solar PV; however, dS adoption rates increase, it may not be necessary to continue to provide such an incentive. O. trlhy does the Company believe it should address cost shifting now rather than waiting untj-I the number of DER install-ations reach higher levels? A. The Company believes that the most appropriate time for the Commission to begin to address cost shifting caused by the combination of net metering and current rate design j-s now, before DER penetration reaches higher leve1s. Many state utility regulatory commissions have recently faced challenges when addressing modifications to net metering policy at higher levels of DER penetration. Customer dissatisfaction has been a significant driver in high profile, contentious proceedings across the high DER TATUM, Dr l7 Idaho Power Company 5 6 7 8 9 t-0 11 72 13 1,4 15 L6 L1 18 19 20 28 29 30 2L 22 23 24 25 26 21 31 5 NARUC Manual, p. 61. 1 2 3 penetration and Utah. stakeholders to states of California, Arizona, Hawail, Nevada, Idaho Power believes that positioning address the cost shift with separate 4 customer classes, coupled with customer education from DER 5 providers and utilities alike, wiII provide j-ncreased 6 transparency and certainty for a greater number of 7 customers as they consj-der investments and will likely lead 8 to increased customer satisfaction in the Iong run. 9 Consistent with this notion, the NARUC Manual emphasized 10 the lmportance of price signals:6 11 t2 13 74 15 L6 71 18 19 20 A very important factor in customers' decisions on DER installation is theprice signals sent by the rate design. If those price signals do not appropriately reflect a jurisdiction's policies on cost-causation, the result will like1y be an economically or socially inefficient amount of DER. Whil-e the Company provides its customers with information that rates are subject to change, some customers may be investing 1n DER systems under the assumption that rate design changes or compensation for excess net energy will- never occur; that misunderstanding may negatively impact the economics of their investment. 27 22 23 24 25 21 26 TATUM, DI Idaho Power 1B Company 28 o ld. at 155. 1 2 3 4 5 6 7 8 9 III. ESTABLISHMENT OF SEPAR;ATE CUSTOMER CI,ASSES o. why customer classes generati-on? A. The customer classes generation between net customers. o. is the Company proposing to establish new for R&SGS customers with on-site Company believes that establ-ishing new for R&SGS customers wi-th on-site is a first step toward addressing the cost shift metering customers and standard service 10 Why not wait to create new customer classes 11 for R&SGS customers with on-site generation until the 12 future rate proceeding that considers or evaluates pricing 13 changes? 14 A. The establishment of similarly situated 15 customers or customer classes has been a long-standing and 16 j-mportant first step in the ratemaking process. Taking 1,'l this important first ratemaking step now will position the 18 Company to study this segment of customers, provl-ding the 19 data necessary to understand how this customer segment 20 utilizes the Company's system. The data quantifying the 2L usage of the system will j-nform what costs (revenue 22 requirement) are approprlately al-Iocated to the newly 23 established customer classes in a future rate proceeding 24 (cl-ass cost-of-service process) . 25 TATUM, DI Idaho Power t9 Company 1 This approach will limit the j-ssues presented in a 2 future rate proceeding to the evaluation of what an 3 appropriate rate design and compensation structure is for 4 R&SGS customers with on-site generation. In addition, 5 establishing new customer cl-asses will provlde increased 6 transparency for customers as they consider making 7 investments in self-generation systems. 8 The Company believes thls first step is also 9 consistent with guidance contained in the NARUC Manual 10 which acknowledges that the "important point is that a 11 jurisdiction be situated to analyze, p1an, and be prepared 12 for its next steps before the market and customer adoption 13 rates overtake 1ts ability to respond. "T 74 The Company's filing is intended to facilltate the 15 expansion of on-site generation in a way that is both 16 scalable and sustainable into the future. The current net 11 metering rate design and service provisions are neither 18 scalable nor sustainable. t9 o What do you believe the cost shift should be the next step 20 toward addressing standard service between net metering and 22 Idaho Power believes that the next step would 23 be to determine the benefits and costs of an on-site 2t customers? A TATUM, Idaho D] Power 20 Company 7 rd. at 62 1 2 3 4 tr 6 7 I 9 generation system through a collaborative process where stakeholders and other utilities can participate. Before the Company can propose an appropriate rate structure or compensation methodology for R&SGS customers with on-site generation, the Company would need to understand the unique benefits and costs these customers may add to the overall system. o Why doesn't costs before Idaho Power first establish those benefits and proposing to establish separate net metering customers? separate customer classes for 10 customer classes for R&SGS 11 A.Establishing 1,2 R&SGS customers with on-sj-te generation is not dependent on 13 what benefits of DER may exist. Idaho Power bel-ieves that L4 the logical first step is to ask the Commission to decide 15 whether the nature or type of load for a customer with on- !6 site generation is distinctly different from their current l7 customer classification. Then, it is appropriate to study 18 this segment of customers to determine what utility costs 79 are appropriately assigned to them (c1ass cost-of-service 20 process) and what benefits these unique customers may bring 21 to the system that a customer wj-thout on-slte generation 22 doesn't. 23 O. Please describe the Company's request of the 24 Commission in this proceeding as it relates to determining 25 the benefits and costs of DER. TATUM, Idaho DI Power 2t Company 1 2 3 4 5 6 1 I 9 A. The Company requests that the Commission open a generic docket at the conclusion of this case with the purpose of establishing a compensation structure for customer-owned DERs that reflects both the benefits and costs that DER interconnection brings to the electric system. as the Because the Company bel-ieves that decisions such determlnation of appropriate benefits and costs are 10 forum to determj-ne what those impacts docket, that could most appropriate would be. 72 O. When does the Company anticipate it will propose pricing changes for the newly established Schedul-es 6 and 8? A. The Company anticipates that j-t will request to modify the pricing structure and compensation methodology as part of a future rate proceeding. The Company believes this approach also aligns with previous Order No. 32846, where the Commission stated:8 13 L4 15 76 t1 18 not unique to include other 11 Idaho Power, a generic utilities, would be the To the extent the Company wishes to increase the monthly customer charge, ox implement a BLC for the residential and small general service customer classes, it shall raise that issue 1n a general rate case. 8 Case No. IPC-E-12-27, Order No. 32846, p. 19. 19 20 21 22 23 24 25 TATUM, Dr 22 Idaho Power Company 7 2 3 4 5 6 a 8 9 o.Does the Company currently communicate to its prospective net metering customers that the current rate structure and change? A. application, af f irmativeJ-y rates do not (included as the Company acknowledge represent a Exhibit No. interconnection requJ-rements are subject to Yes. When a customer submits a net metering 10 reminds customers of this requires that customers an understanding that the current guarantee of future pricing 6). In addition, the Company provision when Idaho Power 11 notifies them via email or letter that their on-site 72 13 74 15 1,6 77 1B 79 20 2t 22 23 generation system has met all- service will be transferred to requj-rements and their a net meterj-ng account. as Exhibit No. 1. The A copy of the Company al-so Idaho Power l-etter is attached distributes a brochure at trade shows where is represented that incl-udes information about net metering and the potential for future price changes. This brochure is attached as Exhibit No. 8. Eurther, the Company maintains a l-ist of Frequently Asked Questions (FAQs) on Idaho Power's net metering landing page that includes information about net meteri-ng and the potential for future price changes. IV. IMPACT TO EXISTING NET METERING CUSTOMERS 24 O. Will the Company's filing impact existing 25 R&SGS net metering customers? TATUM, Dr 23 Idaho Power Company 1 2 3 4 5 6 7 8 9 A. No, not immediatefy. The Company's request to establish new customer cl-asses in this proceeding will not impact existing R&SGS net metering customers. The Company proposes that existi-ng R&SGS net metering customers remaj-n on Schedule 84 for a period of time, under the same rate structure and compensation method, and transition in the future to the proposed new schedules over some perj-od of years. O. Has the Company calculated what the payback period for an average residential net metering customer is? A. Yes. While the payback period for an individual customer can vary depending on variabl-es such as cost to instal1, customer usage, and system orlentation, using the normal-j-zed average monthly usage per residential- customer (954 kwh) for 201,6, the payback period is approximately 15 years for a customer living in Boise, Idaho who instal-l-s a 6 kW PV system. O. Is the Company proposing to establ-ish the time 10 11 t2 13 t4 15 L6 77 1B L9 frame over which 20 customers as part 27 A. No. 22 transition period 23 the part that of a future rate 24 to transition existing R&SGS net metering of this case? The Company recommends that the term of be determined by the Commission as proceeding. The Company belleves informed in the context of a general TATUM, DI Idaho Power 24 Company 25 decision is best 1 rate case when it is also known what rate design changes 2 3 4 5 6 1 8 9 will- be taking pIace. O. What does this mean for existing R&SGS net metering customers? ^Under the Company's proposal, wil-l- remai-n on Schedul-e the existing net metering customers 84 and their rates will conti-nue to mirror those in Schedule 1 for residential net metering customers and Schedule 7 for small 10 general proposes Schedule service net meterj-ng customers. that the length of time these The Company customers remain on 11 84 be determj-ned by the Commission as part of a are proposedL2 future rate proceeding, when dj-fferent rates 13 for R&SGS customers with on-sj-te generation taking servj-ce 14 under Schedul-es 6 and 8. 15 O. Please summarize the Company's request in this l6 proceeding. l7 A. The Company i-s requesting that the Commission 18 lssue an order authorizing the following: (1) closure of 19 Schedule 84, Customer Energy Production Net Meterj-ng, to 20 new service for R&SGS customers with on-sj-te generation 2l after December 31, 2077, (2) establlshment of two new 22 classifications of customers applicable to R&SGS customers 23 with on-site generation that request to interconnect to 24 Idaho Power's system on or after January 7, 2018, with no 25 pricing changes at this time, (3) acknowledgement that TATUM, Dr 25 Idaho Power Company 1 smart inverters provide functionality that is necessary to 2 support the ongoing stability and reliabil-ity of the 3 distribution system by ordering the Company to amend its 4 applicable tariff schedules to requi-re the installation and 5 operatj-on of smart inverters for all new customer-owned 6 generator interconnections within 60 days foll-owj-ng the 7 adoption of an industry standard definition of smart 8 inverters as defined by the IEEE, (4) commencement of a 9 generic docket at the conclusion of thls case with the 10 purpose of establishing a compensatj-on structure for 11 customer-owned DERs that reflects both the benefits and 72 costs that DER interconnection brj-ngs to the electric 13 system. L4 O. When is the Company requesting a Commission 15 determination regarding its proposal 1n this filing? 16 A. The Company is requesting that the Commission L7 issue an order approving its proposal by December 31, 2017. 18 O. Does this conclude your testimony? 79 A. Yes. 20 2t 22 23 it tt'n .ti t iI t i-I..\ tlaa ,rt]t.S 24 ';i"oaa TATUM, DI Idaho Power 26 Company 25 ) ) ) 1 2 3 4 5 6 7 U 9 ATTESTATION OF TESTIMONY STATE OE IDAHO SS. County of Ada I, Timothy E. Tatum, having been duly sworn to testify truthfully, and based upon my personal knowledge, state the following: I am employed by Idaho Power Company as the Vice President of Regulatory Affairs j-n the Regulatory Affairs Department and am competent to be a witness in this proceeding. I decl-are under penalty of perjury of the laws of the state of Idaho that the foregoing pre-filed testimony and exhibj-ts are true and correct to the best of my information and belief. DATED this 27th day of July 2011. Timothy Tatum SUBSCRIBED AND SWORN to before me this 27th day of JuIy 2017. 10 L2 13 74 15 16 L1 18 79 20 27 22 11 23 24 25 26 21 28 29 30 31 r.aaart YK. No ry Publ-l or Idaho s€, IdahoResidlng at l_ My commission expires:L2/20/2020 TATUM, Dr 21 fdaho Power Company $oTatr r-a- Pug11c 4 op tD { BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION GASE NO. IPC-E-17-13 IDAHO POWER COMPANY TATUM, DI TESTIMONY EXHIBIT NO. 1 Solar Panel Technology: What's the Latest Breakttrough? | EnergySage Sign In Page I of7 < NEWS FEED New solar panel technology: learn about advances in solar energy The Newest Technologies in Solar -ai- Solor power wos in o constont stote of innovotion in 2016, with new odvonces in solor ponel technology onnounced olmost every week. ln the post yeor olone, there hove been milestones in solor efficiency, solor energy storoge, weoroble solor technology ond solor design tech. Reod on to get the complete updote on oll the breokthroughs you should know obout in the world of new solor ponel technology. Ready to compare solar quotes now? Click to find installers near you Solar panel technology: what's new in2O17? Exhibit No. 1 Case No.|PC-E-17-13 T. Tatum,IPC Page 1 of4 7lt4l20r7http://news.energysage.com/solar-panel-technology-advances-solar-energy/ Solar Panel Technology: Whafs the Latest Breakthrough? | EnergySage There ore two moin types of solor technology: photovoltoics (PV) ond concentroted solor power (CSP). Solor PV technology coptures sunlight to generote electric power, ond CSP hornesses the sun's heot ond uses it to generote thermol energy thot powers heoters or turbines. With these two forms of solor energy comes o wide ronge of opportunities for technicol innovotion. Here ore some of the lotest emerging solor ponel technologies for 2OL7: Solar skin design One mojor borrier for the solor industry is the foct thot o high percentoge of homeowners consider solor ponels to be on unsightly home oddition. Luckily, one new venture hos o Page2 of7 f o o o solution. Sistine Solor, o Boston-bosed design firm, is moking mojor strides with the concept of oesthetic enhoncement thot ollow solor ponels to hove o customized look. The MIT stortup hos creoted o "solor skin" product thot mokes it possible for solor ponels to motch the oppeoronce of o roof without interfering with ponel efficiency or production. Sistine Solor's skin product is expected to hit U.S. morkets in 2077 ond will help to rebrond solor ponels os o luxury product, not just o home efficiency upgrode. Solar powered roads This post summer poved the woy for tests of on exciting new PV technology - solor powered roods. The sidewolks olong Route 66. Americo's historic interstote highwoy, were chosen os the testing locotion for solor-powered povement tech. These roodwoys ore herolded for their obility to generote cleon energy. but they olso include LED bulbs thot con light roods ot night ond hove the thermol heoting copocity to melt snow during winter weother. The next stop following sidewolk tests is to instoll these roodwoys on designoted segments of Route 66. Wearable solar Though weoroble solor devices ore nothing new (solor-powered wotches ond other godgets hove been on the morket for severol yeors), 2016 sqw on innovotion in solor textiles: tiny solor ponels con now be stitched into the fobric of clothing. The weoroble solor products of the post, like solor-powered wotches, hove typicolly been mode with hord plostic moteriol. This new textile concept mokes it possible for solor to expond into home products like window curtoins ond dynomic consumer cleon tech like heoted cor seots. This emerging solor technology is credited to textile designer Morionne Foirbonks ond chemist Trisho Andrew. Solar batteries: innovation in solar storage The concepts of off-grid solor ond solor plus storoge hove goined populority in U.S. morkets, ond solor monufocturers hove token notice. The industry-fomous Teslo Powerwoll, o rechorgeoble lithium ion bottery product lounched in 2015, continues to leod the pock with regord to morket shore ond brond recognition for solor botteries. Teslo offers two storoge products, the Powennroll for residentiol use ond the Powerpock for commerciol use, ond the cleon outo behemoth is expected to lounch its Powerwoll 2.0 product in weeks to come. Solor storoge is still o foirly expensive product in 2016, but o surge in demond from solor shoppers is expected to bring Exhibit No. 1 significontly more efficient ond offordoble botteries to morket in2OL7. Case No. tpC-E-17-13 T. Tatum, IPC Page 2 ot 4 htB://news.energysage.com/solar-panel-technology-advances-solar-energy/ 7ll4l20l7 Solar Panel Technology: Whafs the Latest Breakthrough? | EnergySage Page 3 of7 The latest solar tcchnology helps homeowners save even more money Try our Solar Calculator and see for yorrrself -ffi Advances in solar energy: the latest solar panel technology breakthroughs Solar tracking mounts As solor storts to reoch moinstreom stotus, more ond more homeowners ore considering solor - even those who hove roofs thot ore less thon ideol for ponels. Becouse of this e o exponsion, ground mounted solor is becoming o vioble cleon energy option, thonks in port to trocking mount technology. Trockers ollow solor ponels to moximize electricity production by following the sun os it moves ocross the sky. PV trocking systems tilt ond shift the ongle of o solor orroy os the doy goes by to best motch the locotion of the sun. Though this ponel odd-on hos been ovoiloble for some time, solor monufocturers ore truly embrocing the technology in 2016. GTM Reseorch recently unveiled o recent report thot shows o mojor upword trend in the populority of trocking systems. GTM projects o 254 percent yeor-over-yeor increose for the PV trocking morket this yeor. The report stoted thot by 2021, olmost holf of oll ground mount orroys will include solor trocking copobility. Advances in solar panel efficiency The post few yeors in the solor industry hove been o roce to the top in terms of solor cell efficiency, ond 2016 wos no different. A number of ochievements by vorious ponel monufocturers hove brought us to todoy's current record for solor ponel efficiency: 23.5 percent, held by premium ponel monufocturer SunPower. The solor cell types used in moinstreom morkets could olso see mojor improvements in cost per wott - o metric thot compores relotive offordobility of solor ponels. Thonks to Swiss ond Americon reseorchers, Perovskite solor cells (os compored to the silicon cells thot ore used predominontly todoy) hove seen some mojor breokthroughs in the post two yeors. The result will be o solor ponel thot con generote 20+ percent efficiency while sfil/being one of the lowest cost options on the morket. Exhibit No. 1 Case No. IPC-E-17-13 T. Tatum, IPC Page 3 of4 7tr4D0t7htp://news.energysage.com/solar-panel-technology-advances-solar-energy/ C.f l.-'-: i.t:. : - ";,: .., --ir.,.Ir.-l = Solar Panel Technology: What's the Latest Breakthrough? | EnergySage Page 4 of7 Of course, the work doesn't stop there, os MIT reseorchers reminded us in Moy when they onnounced new technology thot could doublethe efficiency of solor cells overoll. The MIT lob teqm reveoled o new tech concept thot coptures ond utilizes the woste heot thot is usuolly emitted by solor ponels. This typicolly releosed ond non-hornessed thermol energy is o setbock ond opportunity for improvement for solor technology, which meons this innovotion could help the cost of solor to plummet even further. Solar thermal fuel (STF) There is little debote when it comes to solor power's ultimote drowbock os on energy source: storoge. While the post decode hos seen incredible growth of the PV industry, the 3 a poth forword for solor involves on offordoble storoge solution thot will moke solor o truly sustoinoble energy source 24 hours o doy. Though solor botteries (mentioned obove) ore o storoge option, they ore still not economicolly vioble for the moinstreom. Luckily, MIT Professor Jeffrey Grossmon ond his teom of reseorchers hove spent much of the post few yeors developing olternotive storoge solutions for solor, the best one oppeors to be solor thermol fuels (STFs). The technology ond process behind STFs is comporoble to o typicol bottery. The STF con horness sunlight energy, store it os o chorge ond then releose it when prompted. The issue with storing solor os heot, occording to the teom's findings, is thot heot will olwoys dissipote over time, which is why it is cruciol thot solor storoge tech con chorge energy rother thon copture heot. For Grossmon's teom, the lotest STF prototype is simply on improvement of o prior design thot ollowed solor power to be stored os o liquid substonce. 2016 sow the invention of o solid stote STF opplicotion thot could be implemented in windows, windshields. cor tops, ond other surfoces exposed to sunlight. Solar water purifiers Stonford University reseorchers colloboroted with the Deportment of Energy this yeor to develop o new solor device thot con purify woter when exposed to sunlight. The minuscule toblet (roughly holf the size of o postoge stomp) is not the first solor device to filter woter, but it hos mode mojor strides in efficiency compored to post inventions. Prior purifier designs needed to horness UV roys ond required hours of sun exposure to fully purify woter. By controst, Stonford's new product con occess visiblelighl ond only requires o few minutes to produce relioble drinking woter. As the technology behind solor purifiers continues to improve, expect these chiclet-sized devices to come to morket with hikers ond compers in mind os on ideol consumer oudience. What new solar panel technology means for homeowner$ in2Afl For those considering solor ponels systems, this long list of solor ponel technology innovotions from 2016 is nothing but good news. Efficiency upgrodes, storoge improvements ond equipment copobilities oll contribute to more effective power output for solor ponels ond lower costs for systems. Mony of the products mentioned in this orticle, such os trocking mounts ond solor botteries, ore ovoiloble in the EnergySoge Solor lrlarketploce - oll you hove to do is indicote your preference for porticulor equipment options when you register your property. To get on instont estimote for your home's potentiol solor costs ond sovings, try our free Solor Colculotor. Exhibit No. 1 Case No. IPC-E-17-13 T. Tatum, IPC Page 4 of 4 7n412017http://news.energysage.com/solar-panel-technology-advances-solar-energy/ BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION cAsE NO. IPC-E-17-13 IDAHO POWER COMPANY TATUM, DI TESTIMONY EXHIBIT NO.2 .9 o- J aD!,co E Eooo oooFpoo .Yofip.9, o oog-Co69oE9EE9(E= --YE8 8E o ->.5P OLo':-;eEoOE EOOEoocD _o€Boosbo-co-5 9o) P;6EE> AH!cLooE() =o)LEoEsr !u.cdE'Ccc)ocDOgooE6>r(, =c)8i'-o *El'E :E =b8s'E c,(LN .1,, co oCLoo =E .c fd) >.E iE.c o .c c(5 o =o)c E'co)xo)o oo) E(E =EocoE oEpo art c)E foo oc.c C) o-l .oE' oaio.Eoa5qratt Ea =-i. 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N xd F; dt-- ^. o & A F 0)p >lol EIol ral cl6lEl 6lzl q oo g an P oo € a -9II*,ItsooL Lsoa E')tr fI I6o .= E)o -cl I I'= sooF a Go .YaIJ =Co ]U Exhibit No. 2 Case No. IPC-E-17-'13 T. Tatum, IPC Paoe 1 of2 L. '.1*r2 q ol EIdmlCIGI-cl (trl =IEIdolilol '=l \l::t -g -ClJ>lol EIolmlcl(UI -cl 16lzlo o .E =F COc -(Et o,'EEEE*<.o(It CoEoEz*bsEoo-oL eooF a =3 -9o LL CLf.Yooltoop o CL GE.YooCLio) o-oEoc =o EJ(o:3=oo-Eoo=oEOoo)oc $Eo#ob >FPEOLco9;drocqhoFE oCo-cL.ooF --Y.=ool,o- Pe;ggo E5b9.E .E o.=o>\LgE oE ! -ogeOEo-= E8 EP=o)E5oo E(;Lo-bo=EOFcL No{ lr)N(f) @o s L0) o of o (o o?(r)q o. J E0)ooo .Yooooo P o tfl .EE oooo .f,c Lf C)(! fco Eco .9cooocoo- .c.= =o)c ([Loo -ooo .o =oL o)E =iz -9(u fo .s c -go (E o c.ooJEo CLo o E '= c(u CL EoooE <jo LoiEEDo.E-:Roa! j Loo(E i=oo +tco Eo TLo=o .Eo)q) -oa, fo =CDc.E Joo co EIo- o.c. o,.siE C.oo.o E Eo() oEDco-co l!9 L9oLfocrUl-.oE=o=o:id')uor/)o)_co -r;(ELEOl,c)P .crEr-gE>EPoO=OO>' c) --Y6oo-EE=Rc) oq)EEF} Exhibit No. 2 Case No. IPC-E-'|7-'13 T. Tatum, IPC Paoe2 ol 2 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION GASE NO. IPC.E.17.13 IDAHO POWER COMPANY TATUM, DI TESTIMONY EXHIBIT NO.3 II Solar Industry Data I SEIA Page I of8 S,:lcrr Energy lndustr ies Assc.:ciolionCI Research I Resources Solar Industry Data Solar Industry Growing at a Record Pace Solar energy in the United States is booming (http://www.seia.org/smi) . Along with our partners at GTM Research and The Solar Foundation, SEIA tracks trends and trajectories in the solar industry that demonstrate the diverse and sustained growth acrcss the country. Below you will find charts and factoids that summarize the state of solar in the U.S. SEIA Members have access to presentation slide decks ftttp://www.seia.org/membership/member-benefits/members-only- presentations) that contain this data and much more. Not a SEIA Member? Join today! (http ://www2. seia.or gl ll 13923 I 120 I 6 -02 -23 I n%z) Solar Growth and the ITC The Solar Investment Tax Credit (ITC) has provided industry stability and growth since its initial passage in 2006. In the last decade, solar has experienced an average annual growth rate of 68%. To learn more about the ITC and its impact on the solar industry, visit our ITC Policy Page (http://www.seia.orglpolicy/finance-ta:rilsolar-investment-tax-credit) . Exhibit No. 3 Case No. IPC-E-17-'13 T. Tatum, IPC Page 1 of8 7n4/2017http : //www.seia.org/research-resources/solar-industry -data Solar Industry Data I SEIA Page 2 of8 t6.qD ta,m l2,qD r0,(m &@ 6(m t,(m T,fiD T I I IIII Ycarly U.S. Solar lnstallations ITC Ertcndcd !: I 2016 \ rllmrr l0l. lort;,;l ITC Crcrtcd ITC Extended & Exprnded rta ITC Extendcd t0[ \/ ;; nutyllVl o zq)l l(Dl x)ot 2ilL :g)5 lo5 lo0, hrmEt rbtilal(lYf rl{ur{.d.nrl{?a}la*w*a n Credrnah3 Solr Pry., ICSP) e 2017 gtmresearch SEnH (http://www.seia.org/sites/default/fi1es/Figl-SolarGrowthWithlTC-20l7YIR.png) Solar as an Economic Engine Nearly 260,000 Americans work in solar (http://www.thesolarfoundation.org/solar-jobs-census/) - more than double the number in20L2 - at more than 9,000 companies in every U.S. state. W &E D.6 rt,!9,m r@@ $_& o ;I DU rrdll- Elt t01! - -ltEt! nla o 2017 i9!^? sEtA (http://www.seia.org/sites/defaulUfiles/Fig2-SolarEconomicEngine-20l7YIR.png) Growth in Solar is led by Falling Prices The cost to install solar has dropped by more than70o/o since 2010, leading the industry to expand into new markets and deploy thousands of systems nationwide. Exhibit No. 3 Case No. IPC-E-17-13 T. Tatum, IPC Page 2 of 8 http://www.seia.org/research-resources/solar-industry-data 7ll4l20l7 \ Solar tndustry Data I SEIA 3t.o 3r,(D t5.o 35.O 9..ql $.0 32.q) 9r.m 9.;;I 2010 I 2dr9 B 3 I a t II ! 16,@ la,q) u,@ to.@ tm 5d, a.qD UN' Page 3 of8 Exhibit No. 3 Case No. IPC-E-17-13 T. Tatum, IPC Page 3 of 8 7n4t20r7 o lo11 lot{l0r5 2016 o20t7 gtfirffiarch ltnmx: (http://www.seia.org/sites/default/filesffi93-GrowthSolarFallingPrices-2017YIR.png) Solarrs Share of New Capacity has Grown Rapidly In 2016, Solar installed39Yo of all new electric generating capacity, topping all other technologies for the first time. Solar's increasing competitiveness against other technologies has allowed it to quickly increase its share of total U.S, electrical generation- from just 0.lo/oin20l0 to l.4Yotoday. By 2020 solar should surpass 3Yo oftolal generation is expected tohit5yoby 2022. lrnrl AddtloB d lf.sELcllcC.FdtV ,0to t0rl E IItt !a i6 ,00x 90ra tox ,OT 60ta stlt a0* ,ora t0* l(}'a ix 2011 l0ll t01rl rLf a].arrdcr.CoJ rShd rdi.t l0r6 g(mresearsh $nEs (http://www.seia.org/sitesidefaulUfilesffi94-SolarShareofNewCapacity-2017June.png) q 2017 E http ://www. seia.org/research-resources/solar-industrydata rhLnrhdfilort :I t2!, J Solar Industry Data I SEIA Page 4 of8 U.S. Solar Market Through Ql 2017: Key Takeaways . 2,044 MW installed in Ql 2017. 6th consecutive quarter over 2 GW. Down ZYofromQl 2016. Nearly 45 GW of total solar capacity now installed o Average Annual Growth Rate of 68% over last l0 years " Generates enough electricity to power 8.7 million homes. Solar accounted for 307o of all new capacity installed in Ql 20f 7 " Second to only Natural Cas which accounted for 4l%o " Builds upon strong 201 6 in which Solar accounted for 39o/o of all new capacity, ranking I st. Solar prices dropped l9o/o oyer the last 12 months. Price drop is seen across all market segments, led by reduced hardware costs. Prices have dropped 63% over the last 5 years. Utility-scale PPAs now signed for $0.03 - $0.05/kWh. There are now nearly 1.4 million solar installations in the U.S. " After reaching I million in2016,2 million should be hit in 2018 and 4 million by 2022 Solar PV Price Breakdown The biggest cost-decline opportunity in the solar industry exists in soft costs, including labor, supply chain and overhead considerations. The U.S. Department of Energy (http://energy,gov/eerelsunshot/sunshot- initiative) is leading the charge on reducing soft costs, and SEIA and The Solar Foundation are working with cities and counties (http://www.seiaorg/act-now/help-your-community-become-solsmart) to streamline permitting processes and reduce local barriers to going solar. (H 2015 Quoted PV Prlc:s { I it.oo tr,s 9t.s ,l.to tr.s lo.s Sdt Cd.(.l't ol uldaddlnt l.ilon dtl bl..dlj Cffi(La tarad rhi.fr . thfrI E atkuj E! .hd & .a[h.i{ arinr lilllQ-l.d. rqrt fr.. O'tr.q u.t. ill r irgs€orch sEtA (http://www.seia.org/sites/default/files/Fig5-SolarPVPriceBreakdown-2017June.png) t : .'r)l 7 The U.S Solar Industry is a 50 State Market While Califomia has traditionally dominated the U.S. solar market - with 35o/oma*et share in 2016 - other markets are continuing to expand, including Minnesota, Utah, Florida and Texas. As the price of solar continues to fall, new markets will grab an increasingly large share of the market. Exhibit No. 3 Case No. IPC-E-17-13 T. Tatum, IPC Page 4 of 8 http ://www. seia.org/research-resources/solar-industry-data 7lt4/2017 I L___l Solar Industry Data I SEIA 201. lolt tor6 lot?f Page 5 of8 Exhibit No. 3 Case No. IPC-E-17-13 T. Tatum, IPC Page 5 of 8 g 20t7 Cumulrtive Solrr Crpacity by Stctc, through 0l 201? |.....1 II1.000. > t8.m0 MtY< 20 MW 20- tm t00 - 999 MWMlrv {,000 lvIW gtnuesearch 'sGtA:.*: (http://www.seia.org/sites/defaulUfilesffig6-SolarGrowingCoasttoCoast-20l7June.png) New Market Opportunities for Distributed Solar After years of 50o/o+ annual growth, the residential market $owth has slowed in a handful of mature markets as installers trial new sales techniques. But growth in emerging markets like Utah, Texas, South Carolina and Florida should help the national residential market grow in 2017. Meanwhile, the rapid rise of community solar has boosted the non-residential segment in20l6 md20l7, coupled with increasing numbers of both off-site and rooftop corporate procurement by such companies as Walmart, Apple, Target and Amazon (http://www.seia.org/solarmeansbiz) . Yearly U.S. lolar Photovohak (PVl lnstallatlonl 1,000 t.ffi l-lxro 1.900 LOC t00 2m9 2010 ,0ll lort l01r altaurltvl *n*l.6rldtvl t20lI 2006 too, 2008 qtrluesearch SEIA,,,' (http://www,se ia.org/sites/default/files/Fig7-NewMarketOppsforDG-20 l TJune.png) http ://www. seia.org/research-resources/solar-industry-data 7n4t20t7 t_l L t -(t 5 -1,.'. 1 CA: 18,963 MW 2. NC: 3,288 MW 3 AZ: 3.151 MW 4 NV: 2,269 MW 5, NJ 2.1l4 MW 5 MA: 1.592 Mw 7 UT: I,527 MW 8 GA: 1,478 MW 9 TX, 1,228 MW 10. NY:1,0I2 MW I 0 Solar Industry Data I SEIA Page 6 of8 Utility-Scale Solar Pipeline ln2016,72Yo of all solar capacity installed was utility-scale, and this segment should account for at least two-thirds of all solar capacity again in 2017. While more than a third of the contracted pipeline will be completed in2017, procurement is again ramping up and will lead to a resumption of utility- scale growth by 2019. U.S UUllty-Scah PV Plpcllnc tlo,000 3s,(xD 10.000 25p00 rc,mo l5,oo r0,(I0 5,otx) 0 Ogcrarlnl Cmract.d (PPA rBned) Anraned {Pre-Csrrr(t) * h Cmtrlrliql e2or7 gtnuesearch SEIA,::::. (http://www.seia.orglsites/default/files/Fig8-USUtilityScalePipeline-2017June.png) U.S. Solar PV Growth Forecast While 2017 installations are expected drop slightly from a record-shattering 2016, the 12.6 GW expected still almost doubles 2015, the second largest year on record. After rapidly completing a record buildout in 2016 and20l7, developers will be looking to procure new projects with completion targets moving into the next decade.By 2021there will be over 100 GW of solar installed in the U.S., with annual totals approaching l8 GW in2022. sIIIt Exhibit No. 3 Case No. IPC-E-17-13 T. Tatum, IPC Page 6 of 8 7lt4l20l7http ://www. seia. org/research-resources/solar-industry-data ..ESl Solar Industry Data I SEIA grrmlBsesrch '5A= Page 7 of8 Exhibit No. 3 Case No. IPC-E-17-13 T. Tatum, IPC Page 7 of 8 7tr4l20t7 I U,S. Solar PV Deployncnt Forecfft ILr5.lrtallwl rtacr.tld.rtld(Wl .U|llv(n) I 3I s It aII, r0,000 tt,qD 15,(m [4.(m 11,(t lo,0oo t,IID 6,(m 4,(m t,(n0 0 ;,;;;;;lllll 2mrE lo22a o?o17 (httpr//www.seia.org/sites/defaulUfiles/Fi99-Solarcrowthtocontinue-2017lune.png) Solar Helps Fortune 500 Companies Save Money Data from SEIA's annual Solar Means Business (http://www.seia.org/solarmeansbiz) report show that major U.S. corporations, including Target, Walmart and Apple are going solar at an incredible rate. The top 25 corporate solar users in America have installed nearly 1,100 MW of capacity at 2,000 different facilities across the country as ofOctober 2016. Other key takeaways: . The amount of solar installed at U.S. corporations and businesses is enough to offset I .l million metric tons of carbon dioxide emissions each year. Commercial prices have fallen by 58% since 2012 and by l6Yo in the last year http ://www. sei a. org/research-resources/solar-industry-data Solar Industry Data I SEIA (http://www.seia.org/map/corporate-solar-projects. php) Click on the image above to view the map full screen. Zoom in to view the projects via satellite imagery Topics Tags Page 8 of8 Solar Energy Industries Association 2A2-6t2-0556 1600 l4th Street, N\il, Suite 400, Washington, DC 20005 Exhibit No. 3 Case No. IPC-E-17-13 T. Tatum, IPC Page 8 of 8 7lr4l20t7http //www. seia. or g/re search-resources/solar- industy-data Irh lAA Edntirns&ld,roo IESHI t o"\[ t'1;t nn .t) F! ,"t..*" [-r .i CK,AY \ t*$aauil a, BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION GASE NO. IPC-E-17-13 IDAHO POWER COMPANY TATUM, DI TESTIMONY EXHIBIT NO.4 Auric Solar movcs from Boisc to largcr Meridian spoce I Ncws I mymcridianpress.corn Pagc I of 2 trttp:ll*rru.mymcridianprcs.com/ncm/auric-toaar+norcg"from{oir+{olargcr-meritlian- 3pdarlkh_d6E5E0dd-d6cd-56d-9aab553ec6l51 a8 I .hm Auric Solar moves from Boise to larger Meridian space Company CEO says the rolar irdustry in l&bo ir exploding By Moidlan Pcaa *att norr(omlmsidspratc.com ttlay 5.2017 Aric Sdtr h3trb .oh pafiir! on honaa. erch ar tiL on ln ilortdl$. and qnrurdd lic$Uts. Tho co.npdt o{fic. tun &i!. b M.rid.n sd pa.m to grw itr rl.ll by 10 b t2 anpbyccc h 2017. C,owlay d Leign Glnon Auric Sobr has moved into a new 14,(M-squarc,foot o6ns in Meridian * a building moro tlrran 10 Xmes tha sizc of the company's frst o'ffrce in thc Treasure Valley, The new ofrce ie at 3568 E. Lanart St. The solar company was founded in Utah in 2010 and expanded to ldaho wilh a residential 6i2612017hrp:#www, Exhibit No. 4 Case No. IPC-E-17-13 T. Tatum, IPC Page'l ol2 t L- - *;3.'I C: ,-.. '" "1' Auric Solsr moves from Boise to larger Meridian space I News I mymeridianpress.com Pagc 2 of 2 solar sales division in ?014, amptoying threa people. Noltr, Auric has 39 ldaho employees and plans to add 10 to 12 more this year, acoording to company spokeswornan Leigh Gibson. Along with expanding its office spaca in ldaho, Auric ie also atarting a commercial sales division here. The expansion reflecE the grflrlh of the solar indusfy overall in ldaho, according to a press release, ln the first quarter of 2A17 , Auric Solar sold rnore kilowatts of energy than all of 2016. 'The ldaho solar market is exploding,'A*lric Solar CEO Jass Phillips said in a pross release. That's because people see how afiordable solar really is. Home and business ownerE sec the value in producing thair orvn power, inslead of paying a local power company to rent energy.' Auric installa solar panels lor customara ranging from srnall medical offcas to massive operations. The company installed a Z.l-megawatt system on Major League Socce/s Rio Tinto Stadium in Utah. according to a pres$ release. http:li www.mymcridianprc*s"com/nclvs/auric-.golar-moves-liom-boise-to-largcr-meridian-... 6i26l20lV Exhibit No. 4 Case No. IPC-E-17-13 T. Tatum, IPC Page2of 2 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION GASE NO. IPC-E-17-13 IDAHO POWER COMPANY TATUM, DI TESTIMONY EXHIBIT NO.5 t ntn n a n M r nt Quantifyr"g Subsidy from Non-Solar to Solar Customers Exhibit No. 5 Case No. IPC-E-17-'13 T. Tatum, IPC Page 1 of5 Bv BensnRe A AsHr-Ev BnowN RNo AuuRo 28 PulucUflurrEs Fonililellrtv 0croBEB 2016 e have written this anide to make the case that the net metering policy that many sates adopted to support and subsidize rooftop and community solar programs is, in today's contoft, too expensive. It's unfair to most consumers who are compelled to pay more than their fair share of costs, and socially regressive. 'We are not opposed to renewable energy or solar enerry.'We support the need to pursue them to rhe ortent that they are a cost-effecdve me:ms of mitigating the impact of climate change. These resources are impomant to the nationt future energy supply and they should be encouraged by appropriate federal and sate policies. Howwer, net metering is now causing an unfair shift ofcosts to non-solar customers. This policy is unfair because it is too expensive, because it shifts essential elecricity service costs to rhose who cannot afford or install solar on their roofs, and because its justificadon to jumpsart a nascent industry is no longer applicable. Initially, most states capped the amount of solar capacity available for the net metering subsidy. These caps are no\il being expanded and increased, to the detriment of non-solar customers. Net metering gives solar customers a credit on their bill when their rooftop panels generate orcess po\Mer and sell it back to the udliry. This subsidy means that solar customers pay a tiny electric bill to their electric utiliry or none at dl. This subsidy primarily supports the solar industry and obvi- ously provides an important marketing tool for these companies. But there is no free lunch, since these subsidies to solar customers are paid for by other non-solar customers. The end result is that it burdens non-solar cusromers with higher electric bills. That creates an avoidable but often invisible inequity. As shown below, subsidies per net metering customer range from several hundred dollars a year to values in excess offif- teen hundred dollars a year. There is a median value of some eight hundred dollars a year in the publicly-available studies we summarize below. fu rooftop solar penetration continues, these subsidies are projected to run into the billions of dollars a year in the U.S. These numbers do not include tax-based subsidies, nor are they refective of all of subsidies inherent in net metering. Rather, they are derived only from the specific rate impacts we have identified in the article. Net metering is not only too expensive. It is unfair. Under net metering, solar customers avoid paying their share of the costs of operating and maintaining the electric grid. Non-solar owners pick up the tab. Under current rate designs, which are largely volumetric in nature, net metering essentially credits solar cusromers for each unit of power that they produce at the full retail electric rate. Barbara R. Alexander is an independent consultant who repre- sents state and nationalconsumer advocates. Ashley Brown is the executive director of the Harvard Electricity Policy Group. Ahmad Faruqui is an economist and principle with the Brattle Group. The views expressed in this article are those of the authors and not of the organizations of which they are affiliated of, or of their clients. Subsidies per net metering customer range from several hundred dollars a year to values in excess of fitteen hundred dollars a year. Thus, non-solar customers are obliged to pay retail prices for energy that is readily available at substandally lower wholesale prices. This includes more effi- cient or less expensive large-scale solar and wind generation. The utility's retail rates include the cost ofgenerating electricity. They also include the cost of the transmission and distribudon lines that deliver that electriciry to customers. Finally, these rates reflect the metering and billing system that solar customers as well as all customers rely on, including call centers and customer services performed by utilities for all customers. 'W'hen a customer installs solar panels on their rooftop, this reduces the utiliryt cost of generating electricity. The customer should be compensated for the value ofthat avoided energy. However, the customer still requires a connection to the grid for those hours when the solar panels are not generating all ofthe electricity required on premises. An example of this is at night, or on cloudy days. The connection is also required to export and sell any excess energy that the cusromer may produce. Solar customers benefit from having enough power plants being built to provide adequate backup when the sun is not shining. It is important to note that often the customert demand for electriciry exceeds the capaciry of the solar panels. That makes solar energy an intermittent and unpredictable power source. Additionally, its energy production is generally not coincident with peak demand of most utilities in the United Srates. The customer still requires a meter, a call center to answer questions about monthly bills, and other vital services. It is only Exhibit No. 5 Case No. IPC-E-17-13 ocroBER 2016 PuBLrc UfluflEs FoBrr{rcrrry ,rt I:lP 5: Nrr MrrrRms Susslov EsrrmnrrsFre. 1 $2,000 $1,800 $1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 $0 PG&E- E3-NV lowerrange estirnale $1,600 (2016) $1,7s2 (2020) SDG&E PG&E_ upper range $1,m0 (201 6)$1,(E1 (2020]| 6o oo6 .goct $471 (201 5) $51 1 (2015) NV Energy (sPPC) $620 (201 s) NV PUC (NPC) $661 (201 s) NV Energy (NPC) E3_CA estimate $865 (201 5) Arizona $958 (201 s) Hawaiian ElectricPublic NV PUC (sPPC) ldaho Power Service Notes: Year indicates date of cost-shift estimate, which is sometimes a forecast. ln some cases, reported estimates were connected to annual dollars per net metering customer for comparison purposes. The PG&E ranges are calculated using assumptionsfrom the California Public Utilities Commission's Public Modeling Tool. SPPC and NPC refer to Sierra Pacific Power company and Nevada Power Company service territories respectively. equitable that the solar customer should pay the utility for a share of those services. However, net metering policy prevents this from happening. Net metering is also regressive in nature. The subsidy, in the aggregate, consdtutes a regressive wealth transfer from lower- income customers to higher-income customers. Solar power is rypically installed by higher-income customers. customers. This contributes to the dangpr ofunaffordable electric- iry for those most in need. It is not the udlities that pay for this ffansaction, but the customers who don't have solar equipment. Quantifying the Subsidy To illustrate the magnitude of the subsidy to solar customers, it might be helpful to consider a hypothetical utiliry This utility has a residential retail rate of ten cents per kilowatt-hour. This includes generation supply costs ofsix cents per kilowatt-hour. And delivery or distribution system costs offour cents per kilowatt-hour. 2 A solar customer receiving full retail rate compensation of ten cents per kilo- watt-hour for generation sold back to the grid would receive a subsidy of four cents per kilowatt-hour. \Jf'hen the solar customer sells energy back to the grid, it allows the utiliry to avoid incurring variable costs related to ggneration supply. However, the utiliry still incurs fixed and variable costs related to maintaining the electric grid, ensur- ing reliability of service, providing customer services, and more. A four cents per kilowatt-hour subsidy can translate to an annual subsidy of two hundred fony dollars per solar customer. This is assuming a retail rate of ten cents per kilowatt-hour, and a monthly average offive hundred kilowatt-hours ofexcess generation sold back to grid' ."." *". =,JllJl,l):i3 T. Tatum, IPC Page 3 of 5 They can afford to buy the system outright, or have the credit ratings to finance it or lease it. They also own their homes. It is not available to those who rent or reside in multi-unit housing. It's also not available to those who do not have the disposable income or credit ratings to enter into loans, leases or purchase agreements. I As a result, net metering typically transfers the cost of the unpaid utility services from solar customers to lower-income customers can afford to buy a solar system outright, or have the credit ratings to finance it or lease it. 55 Higner-income I E - Barbara R. Al.exander 30 PuBrrc UiluflEs FoRTilTGHTLv ocroBER 201 6 $740 (201 5)Iw4 (201s)I ))I This subsidy is in addition to the lack of revenues from a solar customer using less electricty when the solar system is gpnerating power for the customert own use. Of course, the total amount of a net metering subsidy will vary according to how many solar customers are on the system. It will also vary according to the volume of excess kilowatt- hours exported by the solar customer. Finally, it will vary due to the differendal berween the utilityt fixed distribution service costs and the generation supply costs avoided. Several utilities, regulators, and consultants have quantified the subsidy per net metering customer in dollars per year. These subsidy estimates have been derived through different methodologies. They apply to different service areas, and assume billion dollars in net present value terms for all s,ptems installed in the 2017 -2025 timeframe. { Path Forward Solar customers are a distinct class of residential customers that should be treated separately from other non- solar residential customers. Theywill have an obligation to pay their fair share. This will mean that their payments for the electricity they are selling back to the grid under net metering should reflect the market price for their gpneration supply service. These should not be arbitrarily-determined high prices, and certainly not the full retail rate. There are a variety of ways to ensure that solar customers pay their fair share of the costs ofboth back up generation capacity and the grid, and dont end up being overly subsidized by non-solar customers. However, the fundamental poliry should require solar customers to pay their share of the common costs. These costs are necessary to support and maintain the distribu- tion or delivery systems and to ensure that adequate capaciry is available when needed for all customers. This payment can be structured as a higher 6xed charge, a demand charge, or a combination of both. It will pay for the cost of being connected to the grid, along with a time-oFuse rate for the energy consumed.different forecasts of solar penetration. '$7ith those caveats, a summary of net metering subsidies is presented in Figure l. Even the lower numbers amount to several hundred dollars a year. The higher numbers exceed fifteen hundred dollars a year. The median is around eight hundred dollars a year. Additionally, there are rwo studies that did not lend themselves to inclusion in the figure. In New York, the investor-owned electric utilities filed comments with the New York Public Service Commission. These com- ments sought to either end or make significant changes to the current policy. The utilities included a graphical presentation of the impact of net metering penetration on residential customer bills. Theystated, "ln fact, atjust a l0 percent residential kilowatt- hour penetration level, the average subsidy paid by a non-partici- pating customer increases their delivery bill by about 6.9 percent and their total bill by about 3.6 percent." t In January 2016, Southern California Edison estimated that net metering would result in a total lifetime subsidy of seventeen The end goal of pricing is that solar customers pay for the essential system-wide services that are being provided to them. These are vital to the essential nature of electric service that is provided to all customers. Furthermore, the compensation for excess generation by solar customers could vary by time-of-day. These costs are higher than average during the afternoon and evening hours, and lower than average during nighttime hours' case No. t,JiT):ii T. Tatum, IPC Page 4 of 5 55 tnvestment in centralized r,i.,, utility-scale solar could lower cost and without - Athlry Brown IL ubsidv. 2g !l achieve the same mental benelits T I LT,e 32 Pu8uc UilunEs Fonrilcflrry ocroBER 2016 g,"1 6e;1P .r' 1 (( ttis time to bring net metering in Iine with sound ratemaking and consumer-0riented policies. )) - Altmad Faruqui r Subscribe today: fortni ghtly. com/su bscri be or sign up for a no obligation trial at fortn i g htly. co m/f ree-trial or call 1-800-368-5001. PUBLIC UTILITIES FORTNIGHTLY Your best source lor unbiased and insightlul coverage ol the critical issues lacing the energy industry. ght "ln the Public lnterest" S NS and ana ys PUErn UT|IrTES t s FORTNIGHTLY E: I I^,k*mcrs assocraiioilgoaru'[teer[gl This time-of-use differentiation would provide rooftop solar owners with a fairer compensation for their contribution to the system needs. Unfortunately, such distinctions are almost never made in prevailing net metering pricing schemes. Some energy experts have argued that solar, as a clean source ofelectric- ity, should be compensated for avoid- ing harmful emissions associated with conventional generation sources. Vhile this might be a legitimate benefit, current net metering policy is overly generous in this regard. If this was the key purpose of the policy, it is unfair to create rooftop and community solar as a most favored form of renewable and clean energy. Other renewable energy resources are less expensive, with often more cost- effective non-polluting results. These include wind and energy efficiency. In fact, investment in centralized utility- scale solar could potentially achieve the same environmental benefits. These options will come at a lower cost and without the cross-subsidy penalty to non-participants. Further- more, there are also very substantial economic risks associated with imposing technology-specific hedges against future environmental mandates as refected in net metering. Two important issues have been lost in the debate. First, there has to be a care- ful accounting ofthe true costs ofthe current policy and its impact on other customers. Second, it is time to bring net metering in line with sound ratemaking and consumer-oriented policies. Net metering should not be pursued to support the solar industry and its ability to make a profit. Rather, policymakers and regulators should focus on ensuring that solar customers pay their share of the grid costs. Non-solar customers should not end up paying the solar customers' share of grid costs. Renewable energy policies should be designed to allow all forms of non-polluting resources to compete on a level playing field. EE Endnotes: l. A report for the Louisiana Public Service Commission found thar net merering custom- ers within the commissiont jurisdiction had median household income of60,460 dollars rclative to the statewide median household income of only 44,673 dollars. David Dis- mukes, Estimating the Impact of Net Metering on LPSC Jurisdictional Customers, Draft, Feb- rvry 27,2015. Other studies in Arizona, Nwada, and California have con- 6rmed this result. 2. While electriciry prices and mtes ury widely in the U.S., this retio berween genemtion supply and distribution seryie is typicd. 3. Commens of theJoint Utilitia, Reforming Encrgy Vision, Case 14-M-1010, Track Two Commcns. The New York commission lifud the six percent peak encrgy ep on net metoing 6r all New York utilities in December 2014, in Cuc 15-E-0407. 4. Southun California Edison Companyt U 338-E Amended Comments on Propored Drcision Adopting Successor to Net Enagy Metering TariffJanuary 11, 2016,R14-07-002. Exhibit No. 5 Case No. IPC-E-17-13 T. Tatum, IPC ocToBER 2016 PuBUcUfluflEsFonrucllTry 33 page 5 of s I Ii n t a Ex every rssue \ L"- BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION cAsE NO. IPG-E-17-13 IDAHO POWER COMPANY TATUM, DI TESTIMONY EXHIBIT NO.6 Net Meter Application Maximum Size:25 kW Residential/1@ kW Commercial This Net Metering application is an interconnection request for existing accounts to apply for Net Mct€ring Jt- tJ; Idaho Power Conrpany's Rate Schedule 84 within the States ofldaho and Oregon.A complaed application and deposit will initiate thc procass for ldaho Power to review the physicat location and existing ldaho Power facilitics to deliver the customer's excess energy (wind" solar, hydro, biomass and fuel cell tcchnologics) from the customer met€r. For additional information, go to lrtto://wrvw.idatrooower.cornlnc*net$ing.* Requircd Fields 1.lnformatlon ,r:llDu0 N!FO'I'ER" a. Account Holdef h. Project Size kW' b. Account Numbed c. Project Name d. Pnoposed ln-Service Date (mm/dd/yyyy)' e. Total Name-Plate Rating (in kW) of Existing Projects at this Site, if any:* i. Proiec{ Type' fl Sotar EIwino E other(describe): EN ENE EIs EsE Esw Ee Ew tf fixed, apprcimate tilt fom hodzontal _ Tracker? [Ves [Ho lf wlnd: Number of Turbines: _ Turbine Manufacturer: lf solar: Number of Modules: Orientation: f. Existing Meter Numbef lnverter Model Number: lnverter Size (watts): ls inverterUL 1741or lEEEl54T listBd? EIyes E ruo lf no, what prctection type j. lnvertef lnverter Manufacturer: g. Please indicate if proposed system is single phase or three phase:' 2.Location 3. EIO0 non-refundable appllcatlon fee enclosed. E 4.Contact 5. Aceount Holder City-zlP*Slate* Company* lContact' Mailing Address City State zlP Phone (xxr) xxx-xxxx* lraxtxlm-uxx ]e-ruair - E I ertiry that the information provided in this application is conecl to the best of my knowledge. * E I underEtand lhat the net metering service - including the curent rate structure and interconnection requircments - is subjec{ to change and that cunent rates do not represent a guarentee of future pricing. ' fl I give my permission br ldaho Power to disctss my project with the Project Contact listed above. flype or Print)r Phone (xru) xxx-xxxxr E-Mailt loate {mmluaryryvY Once completed, please mail thls form and tlre non-rofundable 3't00 appllcatlon feo to: U.S. Postal delivery: ldaho Power Company Attn: lnterconnection Application Load Serving Operatlons P.O. Box 70 Boise, lD 83707 Express delivery: ldaho Power Company Attn: lnteronnection Application Load SeMng Operations 1221 West ldaho Street Boise, lD 83702 lf you have any queetions, please call 20&38&2559 or e-mail nsltletstlpg&f{.hgpqr.{rcom. oEL 326 (12lr8) Exhibit No. 6 Case No. IPC-E-17-13 T. Tatum, IPC Page 1 of 1 rPc lSiSnatue' BEFORE THE IDAHO PUBLIG UTILITIES COMMISSION GASE NO. IPG.E.17.13 IDAHO POWER COMPANY TATUM, DI TESTIMONY EXHIBIT NO.7 From: NetMeterine@idahooower.com Imailto:NetMeterinE@idahooower.coml Sent: To: Cc: Net Mete ring <NetMeterine@idahopower.con!> Subject: Net Metering lnstallation ldaho Power is providing written confirmation of your compliance with the current applicable requirements of Schedule, 84, Schedule 72 and the Generation lnterconnection Process. As of 6/6/2017, ldaho Power Company confirms the Net Metering installation located at _ has completed the cunent requirements of these schedules and is authorized to begin operations. Please check with your installer for instructions on how to energize your system. Within Schedule 84 and T2there are various ongoing requirements that must be maintained. These include:. Providing access to ldaho Power for ongoing inspections. Notifoing ldaho Power of any system changes or closure.. Submitting a new application for system expansions or relocation. These schedules can be found at idahopower.com/netmetering. Any lapse in these ongoing requirements may result ldaho Power exercising its right to disconnect the Net Metering lnstallation as specified within these schedules. Schedules 84 and 72have been approved by the ldaho Public Utilities Commission and the Oregon Public Utility Commission (Commissions). Tariff schedules (including rates and system requirements) are subject to change pursuant to a Commission order. ldaho Power will notify the customer of record of any future modifications to the schedules that may impact the customer. lf you have any questions, please contact us at (208) 388-2559 or email us at netmeterinq@idahopower. com. Sincerely, ldaho Power Net Metering Team 1 Exhibit No. 7 Case No. IPC-E-17-'13 T. Tatum, IPC Page 1 of 1 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION GASE NO. IPC-E-17-13 IDAHO POWER COMPANY TATUM, DI TESTIMONY EXHIBIT NO.8 Net tvletering What You Need to Know Exhibit No. 8 Case No. IPC-E-17-13 T. Tatum, IPC Page 1 of6 / ,/ ,/ / /.r'/ rr t.t ,/ t I rI i u t ! ldaho Power welcomes your interest in solar and renewable generation. Under our net metering tariff, customers can install their own renewable generation source" (commonly solar panels)to offset their use. When customers generate more than they consume, the electric meter "spins" backwards, providing a kilowatt-hour (kWh)credit for energy produced, offsetting energy consumed. Systems connected to the grid are referred to as "interconnected." Whp Can Apply? Residential (Schedule 1) and small commercial (Schedule 7) customers may connect up to 25 kilowatts (kW) of generation. All other rate classes may connect up to 100 kW of generation. ResidentialTime Of Day customers (Schedule 5) may not participate in net metering. ,t 'T T. Tatum, IPC Page 2 of 6 I Under net metering, customers generate their ovrin electricity, com monly with solar. Wind, hydropower, geothermal and fuel cells may also be used. The power is first consumed by the home. Any excess is fed back to ldaho Porrver s electrical grid. lf your home requires more electricity than your system is generating, you'll still draw electricity from ldaho Power. For customers that generate more than they use in a given month, a kWh credit will appear as a line item on their bill. Credits do not expire and can be rolled over month to month. Even if you eam a credit, you will still receive a bill for monthly service fees and other charges not tied to energy use. Please note, the rules for net metering, credits and rates are subject to change. Any changes to the tariff require approval from the state public utilities commission. The nameplate capacity of your system - multiplied times the hours pu expect it to operate - will give pu a rough idea how much the s)6tem can produce. The chart below gives you approximate annual outputs for various sized s)6tems. For comparison, register for myAccount at idahopower.com to find out horru many kWh your home uses in a year. lkW 3kW 4,366 kWh/year 5kw 7kW 10 kw *Data shown for Boisg lD based on PVWatts using default parameters. Assumes ideal conditions forfixed anay, anaytilt 20'; Anay Azimuth 180", system losses 14%; lnverter efficiency 96%; DC to AC Size Ratio 1.1. To understand horyour home uses energy, visit myAccount, ldaho Power's online portalto manage your energy [Ise. Wth myAccountyou can payyour bill, get account information and under- stand your use. A benchmarking tool allous pu to enter information about pur home and compare itto similar homes throughout our service area. Tip are prwided on ways to save. We encounge you to registertoday. l 1,455 kWh/year 7,276 kWhlyear 10,187 kWh/year 14,552 kWh/year System Size Solar Output Exhibit No. 8 How Does it Work?How Much Will I Produce? I e t b ! -1 T. Tatum, IPC Page 3 of 6idahopower.com/netmeteri ng I Step 1: Although not required, a great first step is to find an installer familiar with ldaho Powe/s processes to help you determine what type and size of system you want and what the best configuration for it is. ldaho Power recommends getting at least three bids. A good installer should be able to help you: o Estimate your annual energy needs and select a system to meet those needs. . Explain what to expect from your system in terms of output throughout the year. . Understand ldaho Poruer's process for interconnection including the set up, paperuvork and timelines. Step 2: Submit a net metering application and $100 application fee. This application asks for details about your proposed system, including system size and inverter type. ldaho Porruer will review it within 10 business days and let you know if any service upgrades are needed to accommodate your system. Any upgrades are at the expense of the customer. Step 3: lnstallyour system. Systems must be installed according to all applicable codes and rules, and they must pass a state electrical inspection. Step 4: Submit final papenruork to ldaho Power. Once received, within 10 business days, ldaho Power will conduct a site visit to ensure the system meets the company's tariff requirements. After the inspection, ldaho Pornrer will install a new meter and change your account over to a net metering rate within 15 business days. Exhibit No. I What are the Steps? T. Tatum, IPC Page 4 of 6 I { I II II,IVEIIER USCONNKT BRTAKER MEIER The rules for net metering have been designed for your safety and the safety of ldaho Porruert crews and equipment. They indude: . An inverter that meets the IEEE 1547 standards. lnverters with a UL 174'l generally meet this standard. . A disconnect on the customer side of the meter. This disconnect must be accessiblg visible and lockable. . Successful completion of a state electrical inspection. For complete rules, applications and more, visit idahopower.com/netmeteri n g. PV ARRAY General Requirements a r Green Power _..r.1i,:,1,,.., ,.'Ao solar lalnlschools Whether you're ready to install solar or not, you can still support renewable energy. ldaho Power's Green Power program is a voluntary program for customers wishing to offset their electrical use with renewable energy. Participants designate a monthly purchase amount, which is used to buy certified renewable energy certificates (RECs)from large norfrwest wind farms. RECs represent one megawatt hour of renewable energy delivered to the regional porrver pool (the grid) on your behalf. For the average customer using 1,000 kwh a month, it costs just $8.50 to purchase 1,000 kwh of Green Power. This reduces green- house gas emissions equivalent to 1.54 cars driven for one year. The Green Power funds are also used to support Solar 4R Schools. ln partnership with the Bonne- ville Environmental Foundation, Solar 4R Schools is designed to educate K-12 students about renewable energy by placing solar PV installations on school properties throughout our service area. The installa- tions come with a weather station, data monitoring and classroom cuniculum designed to meet state education standards. As of April 2016, lTschools in ldaho Powert service area have been awarded installations. For more information about the Green Power program, visit our website. nr l5-nr lttlL*r-ir @FY"-"r- fU| I -l=rtllire<rsrr T. Tatum, IPCidahopower.com/g reenpovuer Page 6 of 6