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HomeMy WebLinkAbout20180810Brief on Reconsideration.pdf3Effi*. Fif;ilEIVED I#ifi $,iiG l0 Pl'l h: l0 Lisa D. Nordstrom An IDACORP Company P.O. 8ox 70 (83707) 1221 W. ldaho St. Boise, lD 83702 LISA D. NORDSTROM Lead Counsel ; :, lnordstrom@idahooower.com :_. _,r lirl lni:.-; i-",_]DLlL,* C0iiql'{lSSl0N August 10,2018 VlA HAND DELIVERY Diane Hanian, Secretary ldaho Public Utilities Commission 472 West Washington Street Boise, Idaho 83702 Re: Case No. IPC-E-17-13 New Schedules for Residential and Small General Service Customers with On-Site Generation - ldaho Power Company's Opening Brief on Reconsideration Dear Ms. Hanian Enclosed for filing in the above matter please find an original and seven (7) copies of ldaho Power Company's Opening Brief on Reconsideration. lf you have any questions about the enclosed documents, please do not hesitate to contact me. Very truly yours, ,fl-C7^u,"* LDN:kkt Enclosures LISA D. NORDSTROM (lSB No. 5733) ldaho Power Company 1221West ldaho Street (83702) P.O. Box 70 Boise, ldaho 83707 Telephone: (208) 388-5825 Facsimile: (208) 388-6936 IN THE MATTER OF IDAHO POWER COMPANY'S APPLICATION FOR AUTHORITY TO ESTABLISH NEW SCHEDULES FOR RESIDENTIAL AND SMALL GENERAL SERVICE CUSTOMERS WITH ON-SITE GENERATION RECIIVED ?0l8AUG l0 PH h: l0 ,l r'--,qivi : :; . :, lCi,il'iiSSiOli lnordstrom@id ahopower.com Attorney for ldaho Power Company BEFORE THE !DAHO PUBLIC UTILITIES COMMISSION ) ) ) ) ) ) ) CASE NO. IPC-E-17-13 IDAHO POWER COMPANY'S OPENING BRIEF ON RECONSIDERATION ldaho Public Utilities Commission ("Commission") Order No. 34098 asked the parties in this matter for "briefing related to whether a customer's ability to export energy should determine if the customer should be included in new Schedules 6 and 8."t The ability to export has several significant flaws as a criterion for exclusion from Schedules 6 and 8. First, all self-generators, regardless of what other technology may be coupled with the generation, are partial requirements customers. The load service requirements and pattern of use for these partial requirements customers are much different than those of I Order No. 34098 at 2. The Commission approved the creation of Schedule 6, Residential Service On-Site Generation, and Schedule 8, Small General Service On-Site Generation ("Schedules 6 and 8"), in Order No. 34046 issued on May 9, 2018. IDAHO POWER COMPANY'S OPENING BRIEF ON RECONSIDERATION - 1 standard customers -- even if the partial requirements customer limits their ability to export energy. The load service requirements of those customers are consistent with those of other exporting self-generating customers in Schedules 6 and 8. Carving out a subset of partial requirements customers, as Vote Solar suggests, would simply provide that subset with an opportunity to continue the cost shifting between customers with on-site generation and those without. ln Order No. 34046, the Commission cited "evidence of cost shifting, or subsidization, and load and usage characteristics" as to what informed its decision and went on to describe that "the history of the Company's on-site generation program reveals an unfairness in how current and future on-site generation customers avoid fixed costs. The ability these customers have to 'net out' or net to zero their electricity use causes them to underpay their share of the Company's fixed costs . . . ."2 A customer with on-site generation operating in parallel who limits exports has the same ability to offset consumption which, under a largely volumetric-based rate design, creates an opportunity for that customer to avoid paying the full fixed cost to serve them. Second, the parallel connection of an on-site generation system is the appropriate criteria to determine inclusion in the new customer classes. Self-generation systems connected in parallel to the grid, even those with battery storage or export limiting devices, use grid services to operate. An export limiting device only limits energy senf to the utility; these devices do not limit the customer's ability to receive energy or other grid services. Consequently, self-generating customers who operate in parallel but limit the export of 2 Order No. 34046 at 16-17 IDAHO POWER COMPANY'S OPENING BRIEF ON RECONSIDERATION - 2 energy to the utility take the same services as other self-generators in Schedules 6 and 8 who do export. Lastly, even if the Commission were to explore options for creating a subset of customers with on-site generation without energy export in the standard rate classes, there are several operational and safety considerations that would make enforceability of that impractical and unadvisable, particularly given the limitations of ldaho Power's net hourly consumption meters. For these reasons, which are described in greater detail in the pages that follow, the Commission should reject Vote Solar's request to require the Company to revise new Schedules 6 and 8 to apply only to customers who export electricity. t. LOAD SERVICE REOUIREMENTS D PATTERN OF USE BY PARTIAL REQUIREMENTS CUSTOMERS ARE DIFFERENT THAN STANDARD SERVICE CUSTOMERS. REGARDLESS OF WHAT OTHER TECHNOLOGIES ARE PRESENT ln its case-in-chief, ldaho Power provided evidence to demonstrate the difference between the load service requirements and the pattern of uses of customers with on-site generation as compared to residential customers who take standard service from ldaho Power. The evidencer included comparisons of load factor, load profile, system- coincident demand ('SCD"), and non-coincident demand ("NCD"); the bi-directional flow of energy was only one component of the usage characteristics of a customer with on- site generation. Likewise, customers with on-site generation who either prevent the 3 ldaho State Homebuilders v. Washington Water Power,107 ldaho 415, 690 P.2d 350 (1984). Differences in rates charged to classes of customers are not per se unreasonable or unlavtrful under /daho Code $ 61-315. The ldaho Supreme Court interpreted this statute in the Homebuilders decision and explained that the setting of different rates may be justified by factors such as cost-of-service, quantity of electricity used, differences and conditions of service, or the time, nature, and pattern of use. a Tr. at 598-618. IDAHO POWER COMPANY'S OPENING BRIEF ON RECONSIDERATION - 3 export of excess energy via an export limiting device, or who use battery storage to eliminate the export to the grid, continue to have different load service requirements than standa rd service customers. To study the effects of preventing the export of excess energy, the Company produced a Limited Export Simulation to simulate a residential customer before and after the installation of on-site generation without the capability to export excess energy.s A simulation was necessary because the Company is not aware of any residential or small general service customers with parallel-connected on-site generation system that uses an export limiting device to prevent the export of excess energy to the grid. The methodology used by the Company to create the Limited Export Simulation is described in Attachment 1. The Limited Export Simulation demonstrates how the load service requirements and usage characteristics differ for a customer before and after the installation of on-site generation without the capability to export excess energy. lmportantly, even in the absence of energy exports, the customer with on-site generation still has the ability to offset their usage on an hourly basis; this reduction in energy consumption, coupled with a rate design that collects fixed costs through a volumetric rate, creates the opportunity for shifting costs from customers with on-site generation to standard service customers. 5 For the simulation, the Company used the hourly load data for 272 sample customers in the Boise metro area from the 2016 load research sample as the reference load profiles. An additional data set was created from this data set by offsetting the load with an annual production profile of a photovoltaic ("PV") system appropriately sized for each customer. All hourly energy exports were replaced with zero. The 2016 load research data used for the Limited Export Simulation was previously provided to all parties in response to Vote Solar's Data Request No. 27. IDAHO POWER COMPANY'S OPENING BRIEF ON RECONSIDERATION - 4 A. Load Service Requirements Load factor analysis is an important measure to compare the load service requirements of one segment of customers to another. The Ioad factor is the average load divided by the maximum load for a specified time period.6 lt is a computation that captures the degree of demand variation; a load factor approaching one hundred percent represents less variation in the demand pattern, and a load factor near zero portrays more demand variation. Over the period of measurement, a low load factor identifies a customer with infrequent maximum demand and the capacity required to serve that peak demand is idle for long periods. Under a rate design that collects most fixed costs for system capacity through volumetric kilowatt-hour charges, customers with a lower load factor are subsidized by customers with higher load factors. Using the Limited Export Simulation, the Company calculated the load factor for each sample customer before and after the installation of on-site generation without the capability to export excess energy. The average of the monthly load factors of the sample customers before and after the installation of on-site generation without the capability to export excess energy are shown in Figure 1. 6 Tr. at 601, ll. 1-15. IDAHO POWER COMPANY'S OPENING BRIEF ON RECONSIDERATION - 5 Figure 1. Load Factor - Simulated for No Energy Exports Load Factor 28% 26% 24o/o 22% 20% 18% 16% 14% L2% L0% Feb Mar Apr r Before On-Site Generation r After On-site Generation with No Energy Exports The Company's load factor analysis of each sample customer before and after the installation of on-site generation without the capability to export excess energy demonstrates that load factor is notably lower in all 12 months after the installation of on- site generation -- even without the capability to export excess energy. For the months of April through September, the load factor is reduced by roughly 33 percent after the installation of on-site generation without the capability to export excess energy. B. Pattern of Use 1. Load Profile - Simulated for No Enerqv Exports The load profile portrays the pattern of demand through a particular period of time. Using the Limited Export Simulation, the Company developed the load profile for each sample customer before and after the installation of on-site generation without the capability to export excess energy. The average load profile of the sample customers for a winter month, a spring month, and a summer month are shown in Figures 2,3, and 4, respectively. For the three graphs, each hour data point is the average for that hour throughout the month. IDAHO POWER COMPANY'S OPENING BRIEF ON RECONSIDERATION - 6 ll,l,l, May Jun DecNovOctsepAugJulJan Figure 2. January 2016 Simulated Load Profiles January Load Profiles 2.50 2.00 1.50 1.00 0.s0 0.00 I.40 L.20 1.00 0.80 0.60 0.40 0.20 0.00 2.50 2.00 1.50 1.00 0.50 0.00 12345678 9 10 11 12 13 74 15 16 t7 18 19 20 2t 22 23 24 -trf1s1On-site Generation with No Energy Exports - $sf6r.s On-Site Generation Figure 3. April 2016 Simulated Load Profiles April Load Profiles t2345678 9 10 11 L2 t3 t4 Ls L6 77 18 19 20 21 22 23 24 -trfts1 On-site Generation with No Energy Exports - ggf61s On-Site Generation Figure 4. June 2016 Simulated Load Profiles June Load Profiles 72345678 9 10 11 L2 t3 14 t5 L6 r7 18 19 20 2t 22 23 24 -trftgp On-site Generation with No Energy Exports - $6fe1s On-Site Generation IDAHO POWER COMPANY'S OPENING BRIEF ON RECONSIDERATION - 7 The Company's load profile analysis of each sample customer before and after the installation of on-site generation without the capability to export excess energy demonstrates that the load profile changes significantly after the installation of on-site generation -- even without the ability to export excess energy. The on-site generation causes a downward ramp after the sun rises and generation from the utility is replaced by the on-site generation for several hours. Then, as the sun sets and solar generation ends, a significant upward ramp occurs. This is vastly different than the load curve before the installation of on-site generation, where the transition from hour-to-hour is smoother with significantly lower rate of change in usage during the morning and evening hours. The results of the load profile analysis illustrate the additional requirements of the Company to meet the ramping needs of these customers, when the Company must reliably forecast load and efficiently dispatch the generation fleet to maintain the balance between production and forecasted use.7 The Limited Export Simulation's load profile analysis also illustrates that, while customers with on-site generation who limit their export energy consume less volumetric energy from the utility, the maximum demand over the course of a day is not necessarily reduced. This load service characteristic is consistent with customers who export energy.s Consequently, it is appropriate to include customers with on-site generation who limit their exports in Schedules 6 and 8 which will provide the Company an opportunity to apply a rate design that will not shift the collection of costs through the standard service's current volumetric rate design. 7 Tr. at 568, ll. 14-25. 8 Tr. at 614,11.5-7. IDAHO POWER COMPANY'S OPENING BRIEF ON RECONSIDERATION - 8 2. Svstem-Coincident Demand - Simulated for No Enerqv Exports The SCD is the average demand for a segment of customers at the time of ldaho Power's system peak.s The analysis of SCD is important for cost allocation purposes because: (1) production plant costs associated with serving base and intermediate load are allocated using an average of the 12 monthly SCDs, (2) production plant costs associated with serving peak load are allocated using an average of the three monthly SCDs occurring in June, July, and August, and (3) transmission costs are allocated using an average of the 12 monthly SCDs. Using the Limited Export Simulation, the Company calculated the SCD for the group of sample customers before and after the installation of on-site generation without the capability to export excess energy. The monthly SCDs for the group of sample customers before and after the installation of on-site generation without the capability to export excess energy are shown in Figure 5. Figure 5. System-Goincident Demands - Simulated for No Energy Exports System-Coincident Dema nd 4.00 3.50 3.00 2.50 2.00 1.s0 1.00 0.50 0.00 Jan Feb Mar r Before On-Site Generation r After On-site Generation with No Energy Exports s Tr. at 715, ll. 3-5. llil I' Apr llllililrr Aug Sep Oct Nov DecJulJunMay IDAHO POWER COMPANY'S OPENING BRIEF ON RECONSIDERATION - 9 The Company's SCD analysis of the group of sample customers before and after the installation of on-site generation without the capability to export excess energy demonstrates that the SCD is lower in nine out of 12 months after the installation of on- site generation - even without the capability to export excess energy. The results of this analysis suggest that the allocation of production plant costs associated with serving peak load would decrease after the installation of on-site generation without the capability to export excess energy because these costs are allocated using an average of the three monthly SCDs occurring in June, July, and August. Consequently, the resulting different allocation of costs supports the argument that it is appropriate for all customers who install on-site generation -- even without the capability to export excess energy -- to be included in Schedules 6 and 8. 3. Non-Coincident Demand - Si ated for No Enerov Exports The NCD is the maximum average demand for a segment of customers in any given hour, regardless of when it happens.lo Similar to SCD, the analysis of NCD is important for cost allocation purposes because NCDs are used to allocate ldaho Power's d istribution system costs. Using the Limited Export Simulation, the Company calculated the NCD for the group of sample customers before and after the installation of on-site generation without the capability to export excess energy. The monthly NCDs for the group of sample customers before and after the installation of on-site generation without the capability to export excess energy are shown in Figure 6. 1o Tr. at 614,1l.7-9 IDAHO POWER COMPANY'S OPENING BRIEF ON RECONSIDERATION - 1O Figure 6. Non-Coincident Demands - Simulated for No Energy Exports Non-Coincident Demand 3.50 3.00 2.s0 2.00 1.50 1.00 0.s0 0.00 llllil Jan Feb Mar May Jun Jul !r Apr ll llil Aug Sep llll Oct Nov Dec r Before On-Site Generation I After On-site Generation with No Energy Exports The Company's NCD analysis of the group of sample customers before and after the installation of on-site generation without the capability to export excess energy demonstrates that the installation of on-site generation has very little impact on the NCD; that is, a customer's monthly peak is not necessarily reduced by the installation of on-site generation -- even without the capability to export excess energy. The customers load over the course of the month will continue to place the same level of peak demand on the system. This is an important observation because NCDs are used to allocate distribution costs. While customers who install on-site generation without the capability to export excess energy contribute to distribution costs in a similar manner, the collection of these costs through the volumetric charge for standard service customers will result in cost shifting if customers with on-site generation were to remain in the standard service schedules. To mitigate this impact, all customers with on-site generation -- even those who have no ability to export energy - should be included in new Schedules 6 and 8 to appropriately assign and collect costs and address cost shifting. IDAHO POWER COMPANY'S OPENING BRIEF ON RECONSIDERATION - 11 C. Validation of the Limited Export Simulation Using Actual Gustomer Data To verify and validate the results of the Company's Limited Export Simulation, the Company performed a supplementary analysis on the effects of preventing the export of excess energy. For the supplementary analysis, the Company obtained actual data from a segment of 18 residential solar customers in ldaho Power's Oregon service area who participate in a Solar Photovoltaic Pilot Program ("Pilo1";.,, The metering requirements for the Pilot require the Company to record separately the amount of generation produced by the solar PV system, the amount of energy consumed from the utility, and the amount of excess energy exported to the grid. Because the amount of excess energy exported to the grid was recorded separately, the Company was able to set the energy exports to zero. The same analyses were performed on the load service requirements and pattern of use to determine if the results differ for a residential customer who installs on-site generation and then prevents the export of excess energy. The results of the supplementary analyses were consistent with the results of the Limited Export Simulation, validating the results of the Company's Limited Export Simulation. The Company's resulting analysis, "Pilot Customer Load Shapes With No Energy Exports," can be found in Attachment 2. 11 On July 22,2009, Oregon House Bill (.HB') 3039 was signed into law. This legislation required the Public Utility Commission of Oregon to establish a pilot program for each investor-owned electric company to demonstrate the use and effectiveness of volumetric incentive rate payments for electricity delivered from solar PV energy systems. The pilots were intended to apply to solar PV energy systems permanently installed in the state of Oregon by retail electricity consumers and first became operational on or after July 1 , 2010. HB 2893, enacted in 2013, revised the cumulative nameplate capacity from 25 megawatts ("MW") to 27 .5 MW. Each electric utility was assigned a share of the capacity goal based upon their individual retail sales; ldaho Power's share of the pilot program's capacity is 0.450 MW. IDAHO POWER COMPANY'S OPENING BRIEF ON RECONSIDERATION - 12 D. Cost Shifting and Subsidization ln its case-in-chief, the Company argued that the outdated volumetric rate structure intended for residential and small general service ("R&SGS") customers who take standard full-requirements service from Idaho Power, does not provide a reasonable opportunity for the utility to recover grid-related fixed costs of serving R&SGS customers with on-site generation.tz Customers who install on-site generation do so with the intent to offset their own usage and reduce or eliminate the volume of energy they consume from ldaho Power. These customers, or "prosurners,"ts both produce their own energy and consume energy from the utility. The Company's consumption-based rates were intended for customers who take fully-bundled service from the utility and are designed to collect generation, transmission, distribution and customer-related costs primarily through a volumetric rate. That is, the services used by these customers are not priced individually. Because the R&SGS customer classes both have a two-part rate design with most of the customer-related fixed costs and all the demand-related fixed costs being recovered through a volumetric charge, the current rate design has the potentialto create a cost shift between self-generators and those that do not self-generate, as well as under collect fixed costs. Vote Solar's recommendation to exclude non-exporting customers would only perpetuate the cost shift by sustaining a financial carve out for self-generating customers. From a policy standpoint, regardless of energy exports, the load service requirements and the usage characteristics of any R&SGS customer who installs on-site 12 Aschenbrenner REB at 18, ll. 1-9. 13 Tr. at 780 and 1068-1088. IDAHO POWER COMPANY'S OPENING BRIEF ON RECONSIDERATION - 13 generation justify a separate and unique rate structure. The usage characteristics of customers with on-site generation are not based on volumes of energy but rather on capacity. Customer classes are determined by grouping customers with similar usage patterns because customers with similar usage characteristics impose similar costs on the utility. When customers impose similar costs on the utility, rates can be designed for that segment of customer to recover the costs of providing utility service. As demonstrated in the Company's case-in-chief,ta R&SGS customers who install on-site generation are different than R&SGS standard service customers - this is true regardless if the on-site generation system is coupled with battery storage or an export limiting device to prevent the export of excess energy. Nevertheless, the Commission orderedts the Company to provide additional information about the effects of battery storage and export limiting devices for its consideration in this matter. 1. Batterv Storaqe The addition of battery storage to a customer's parallel-connected on-site generation system will further reduce the volume of energy they consume from the utility and cause an even greater under collection of fixed costs. This under collection of fixed costs will perpetuate the cost shifting between customers with on-site generation and those without that the Commission seeks to avoid.ro 1a Tr. at 598, l. 6 - Tr. at 618, l. 2 15 Order No. 34098 at 3. 16 Order No. 34046 at 16-17. "The ability these customers have to 'net out' or net to zero their electricity use causes them to underpay their share of the Company's fixed costs to serve customers, and this inequity will only increase as more customers choose on-site generation." IDAHO POWER COMPANY'S OPENING BRIEF ON RECONSIDERATION - 14 To study the effects of battery storage as a means to eliminate the export of excess energy, the Brattle Group performed a simulation of the net load shapes of such customers.tz A simulation was used because ldaho Power is not aware of any residential customers with an on-site generation system connected in parallel with the addition of a battery storage system to eliminate the export of excess energy. The Brattle Group's resulting analysis, "The Effect of Storage on Customer Load Shapes when Coupled with Distributed Generation," can be found in Attachment 3. The analysis performed by the Brattle Group finds that coupling battery storage with on-site generation to eliminate the export of excess energy results in similar reliance on the utility infrastructure to that of a customer with on-site generation that does export excess energy to the grid.ts The key takeawaystg from the Brattle Group's analysis of customers that combine distributed generation and battery storage are: o the installation of battery storage moderately flattens the average daily load shape; o the customer's maximum demand remains high relative to the customers'total usage; . the median load factor is still 50 percent lower than that of the standard service residential customer class; and 17 The Brattle Group used the same net metering customer data that was previously provided to all parties in response to Vote Solar's Data Request No. 90 to simulate the net load shape of a customer that combines distributed generation and battery storage. 18 Brattle Group, The Effect of Storage on Customer Load Shapes when Coupled with Distributed Generation at 1 (August 8, 2018). 1s /d. at 9. IDAHO POWER COMPANY'S OPENING BRIEF ON RECONSIDERATION - 15 o customers who combine distributed generation and battery storage and continue to take service under the current rate structure for standard service customers will pay less than their share of the cost of using the grid. o Without an alternative rate design, customers who combine distributed generation and battery storage would not have a financial incentive to operate their battery in a way that would significantly reduce their reliance on the power grid. Regardless of whether a customer with on-site generation stores their excess energy in a battery, because they generate some or all of their own energy, they continue to be a partial requirements customer who offsets the volume of energy they consume from the utility. !t is appropriate to include all customers with parallel-connected on-site generation in the newly established Schedules 6 and 8 customer classes, for which a rate structure can be developed that will provide customers flexibility in meeting some of their own energy needs while allowing the utility a reasonable opportunity to appropriately assign and collect costs without cost shifting to standard service customers. 2. Export Limitinq Devices Available technology, in the form of an export limiting device, can be used to prevent the intentional export of energy to the grid.zo Such devices include dynamically controlled inverters and reverse power relays. A dynamically controlled inverter continually monitors the customer load and adjusts the on-site generation production 20 While ldaho Power is not aware of any existing residential or small general service customers with an export limiting device to prevent exporting energy to the grid, other utilities serve such customers. For instance, Hawaiian Electric's Customer Self-Supply (CSS) program enables customers to only install private rooftop solar systems that do not export power to the utility grid. All power produced by the customer either must be used as it is produced or stored in energy storage devices for later use. Credits are not available for CSS systems and minimum billing requirements apply. IDAHO POWER COMPANY'S OPENING BRIEF ON RECONSIDERATION - 16 down if the load drops below a specific threshold. A reverse power relay is installed at the meter location and will disconnect the generation system if power flows toward the utility. Even if customers with on-site generation prevent the export of excess energy with an export limiting device, they continue to be partial requirements customers who offset the volume of energy they consume from the utility by generating some or all of their own energy. ln order to develop a rate structure that will provide customers flexibility in meeting their own energy needs, yet allow the utility a reasonable opportunity to appropriately assign and collect costs without cost shifting to standard service customers, all customers with parallel-connected on-site generation should be included in the newly established Schedules 6 and 8 customer classes. il. PARALLEL CONNECTION IS THE APPROPRIATE CRITERIA FOR INCLUSION IN SCHEDULES 6 AND 8 Establishing the parallel connection as the criteria for a different service offering is not a new concept. Since 1983, when the Company began offering net metering service under Schedule 86, Cogeneration and Small Power Production Non-Firm Energy,zt the Company has required customers with parallel-connected on-site generation systems to take service under a different tariff schedule in addition to the standard service tariff schedule. Prior to the establishment of Schedules 6 and 8 on June 1 ,2018, all customers with an on-site generation system connected in parallel with Idaho Power's system were 21 ln the Matter of the Application of ldaho Power Company for Approval of Revised Rates fo Be Paid for Power and Energy So/d to ldaho Power Pursuant to Section 210 of the Public Utility Regulatory Policies Act of 1978, Case No. U-1006-200, Order No. 18358. IDAHO POWER COMPANY'S OPENING BRIEF ON RECONSIDERATION - 17 required to take service under Schedule 84, Customer Energy Production Net Metering Service.22 A. Parallel Connection "Parallel connection" means the customer's on-site generation system is connected to, and operating in conjunction with, the utility's electric grid. A generation system that is connected in parallelto the utility's electric grid is commonly referred to as a "grid-tied" system or an "on-grid" system. A customer with an on-grid system uses electricity from their on-site generation system, as well as from the utility's electric grid. The customer can draw energy from the grid at times when their system is not generating enough to meet their energy demand or when their system is not generating energy at all due to maintenance or a lack of resource. A parallel-connected on-site generation system is connected to the utility's electric grid through a gridtie inverter. ln the case of a PV generation system, the grid-tie inverter converts the direct current electricity generated by the PV solar panels into alternating current electricity required by customer electrical appliances. ln order for the on-site generation system to operate in parallel with the electric grid, the on-site generation system must synchronize with the grid. To synchronize the two systems, the alternating current waveforms of the on-site generator and grid must match in time, voltage magnitude, and frequency. Connecting an on-site generator 22 ln the Matter of the Application of ldaho Power Company for Approval of a New Schedule 84 -Net Metering, Case No. IPC-E-O1-39, Order No. 28951. IDAHO POWER COMPANY'S OPENING BRIEF ON RECONSIDERATION - 18 without matching these parameters may result in significant on-site generator mechanical damage as the power grid suddenly enforces alignment.zs The grid-tie inverter relies on the grid voltage and frequency to produce power that is synchronized with the grid. As a result, the parallel-connected system cannot operate without the grid, and therefore, when the utility experiences an outage, the parallel- connected system will also experience an outage. Per ldaho Power's Schedule 72, lnterconnections to Non-Utility Generation ("Schedule 72"), a generation disconnect switch is required to provide isolation of the on- site generation from the customer's load service.z+ Figure 7 illustrates an on-site solar PV connected in parallel to the utility's electric grid. Figure 7. On-Grid lnstallation Gonnected in Parallel: The inverter delivers energy when synchronized and the solar panels are producing direct current power Grid-tie lnverter + Disconnect Switch Closed Meter Solar Produces power when the grid provides ac voltage and frequency for synchronized operation Power Grid Power Flow t-- Customer E lectrica I Loa d Power Flow 23 The 2007 ldaho National Lab's Aurora Generator Test demonstrated how a cyberattack could destroy physical components of the electric system. When a computer program opened and closed a generator's circuit breakers out of phase from the rest of the grid, the torque from the forced system synchronization caused the generator to explode apart. www.cnn.com/2007/US/09/26lpower.at.risk or https://en. wiki ped ia. oro/wi ki/Au rora Generator Test 2a "Disconnection Equipment is required for all Seller Generation Facilities. The Disconnection Equipment shall be installed at an electrical location to allow complete isolation of Seller's Generation and lnterconnection Facilities from the Company's system. Disconnection Equipment for Net Metering Systems or Small On-Site Generation Systems will be installed at an electrical location on the Seller's side of the Company's retail metering point to allow complete isolation of the Seller's Generation and lnterconnection Facilities from the Seller's other electrical load and service." Schedule 72, Sheet No. 72-5. 1"dc IDAHO POWER COMPANY'S OPENING BRIEF ON RECONSIDERATION - 19 The gridtie inverter is not able to supply power independent from the power grid, thus, the disconnect switch location isolating the solar PV system from the grid and customer load allows the customer to service the PV solar system without adversely impacting the customer load service, as shown in Figure 8. Figure 8. On-Grid lnstallation: No energy is produced untilthe inverter is synchronized with the power grid Grid-tie lnverter Disconnect Switch Meter i Solar PV No energy output until synchronized with the grid Open Customer Electri ca I Load 1. Essential Grid Services The grid provides many benefits to the customers who choose to connect their on- site generation in parallel to the utility's electric grid. These services include reliability, voltage reference and voltage control, frequency reference and frequency control, motor starting current, and reactive power support.2s All customers currently taking services under Schedules 6 and 8 are connected in parallel to ldaho Power's electric grid. lt is that parallel connection that allows these customers to enjoy the essential services offered by the grid. While benefiting from the essential grid services listed above, these customers can both consume energy generated from their own on-site generation system and consume energy from the utility when their system is not generating sufficient energy to meet their energy demands. 2s Tr. at 566, l. 6 - Tr. at 574,1. 8; Tr. at 60, ll. 3-1 1 IDAHO POWER COMPANY'S OPENING BRIEF ON RECONSIDERATION - 20 Power Grid Power Flow dc 1" 2. Backup and Standbv Service The grid also acts as backup generation for customer systems in the event their system fails. The grid also stands ready to provide standby service when the customer's system is not large enough to meet the customer's demand or when, in the case of a PV system, the sun is not shining. The electric power grid is in many ways like a battery to customers with on-site generation, but at a much lower cost to the customer than installing and maintaining their own battery. B. Parallel Connection with Backup Capability As discussed in Mr. David Angell's testimony, there are "off-grid" inverters which produce alternating current voltage and frequency for operation independent of the grid.zs Additionally, "grid-forming" inverters exist that may operate in parallel with the grid and yet have the ability to regulate alternating current voltage and frequency and supply power independent of the grid. Grid-forming inverters are often used in conjunction with batteries and on-site generation. When operating in parallel with the grid, these grid- forming inverters synchronize to the grid alternating current voltage and frequency as shown in Figure 9. 26 Tr. at 572,11. 3-10. IDAHO POWER COMPANY'S OPENING BRIEF ON RECONSIDERATION - 21 dc 1" Figure 9. Grid-Forming lnstallation Connected in Parallel: The inverter delivers energy from the solar PV and battery when synchronized to the grid Batterv G rid-forming I nverter Disconnect Switch Closed Disconnect Switch Closed Meter Power Flow Meter i Solar PV i +Produces power in synchronism with the grid ac voltage and freq uency Grid-formine lnverter Disconnect Switch Closed Customer Electri ca I Load Customer Electri ca I Load Disconnect Switch Open Power Grid Power Grid T When grid supply ceases, the grid-forming inverter senses the loss of supply and automatically disconnects from the grid at which time the grid-forming inverter develops, regulates, and supplies voltage and power to the customer load as shown in Figure 10. Figure 10. Grid-Forming lnstallation Off-Grid Operation: The inverter delivers energy from the solar PV and battery when the grid is disconnected Power Flow Power Flow Batterv +Produces power, ac voltage and frequenry independent of the grid Solar T During this off-grid operating mode, the customer will not experience the parallel operation grid benefits of energy balancing, voltage and frequency regulation, and motor starting capacity. The on-site generation system must supply energy to the largest combination of customer loads, which may be reduced through a well-planned load management system. Additionally, the customer will need to size the system for motor starting currents or replace larger motors with electronically commutated motors to reduce IDAHO POWER COMPANY'S OPENING BRIEF ON RECONSIDERATION -22 dc 1" the starting currents. ln summary, configuring and managing a system to operate in the off-grid mode can be difficult and costly. C. Non-Parallel Connection Unlike the prior on-site generation configurations, a generation system that is not connected in parallel to the utility's electric grid is completely independent of the utility grid. A generation system that is not connected in parallelto the electric grid is commonly referred to as an "off-grid," or a "standalone" system. An off-grid system may be required to provide backup supply for critical customer systems in the event the grid service is interrupted. Because there is no connection between the off-grid system and the utility's grid, an off-grid system is incapable of providing excess energy to the grid and it is also incapable of receiving energy from the utility. Because an off-grid system is not connected to ldaho Power's electric grid, the customer load is not served by ldaho Power, and is therefore not required to take service under new Schedules 6 and 8. Figures 11 and 12 illustrate the installation of an off-grid system that is not connected to the utility's electric grid. Note that the switch is designed to automatically transfer the load from the grid, during the loss of grid supply to the on-site generator to supply the customer load independent of the power grid. IDAHO POWER COMPANY'S OPENING BRIEF ON RECONSIDERATION - 23 Figure 11. Backup "Off-Grid" lnstallation: Normal Operation - the grid supplies the customer load Meter Power Grid Power Flow Figure 12. Backup "Off-Grid" lnstallation: Backup Operation .- the on-site generator supplies the customer load Meter Power Grid Power Flow Tra nsfer Equipment Normal mode- grid supply ln standby mode Customer E lectrica I Load Tra nsfer Equipment Backup mode- self supply Customer E lectrica I Load Produces power, ac voltage and independent of ncy grid IDAHO POWER COMPANY'S OPENING BRIEF ON RECONSIDERATION .24 Backu o Generator Backu p Generator An example of a standalone, off-grid system would be a hospital with a backup generation system that is not intended to offset consumption. The hospital's automatic transfer switch is configured to isolate the hospital's load from the electric distribution system when it senses very low or no voltage. ilt. EXCLUDING ANY ON.SITE GENE FROM SCHEDULES 6 AND 8 CREATES OPERATIONAL AND SAFETY CONCERNS A. lntra-Hour Usage Not Detectable in Net Hourly Consumption Finally, ldaho Power explained in its Answer to Vote Solar's Petition for Reconsideration that: "Even if the Commission granted Vote Solar's request, using the export of electricity as the criterion to determine the applicability of Schedules 6 and 8 is not enforceable because intra-hour usage is not detectable."zT Because ldaho Power measures the hourly net consumption with one meter, the Company cannot measure the total of energy exported to the grid separately from how much energy the customer consumes from the Company. To determine net consumption, the amount of energy exported to the grid is deducted from the amount of energy from the utility consumed by the same customer. lf the sum at the end of the hour is greater than zero, the customer consumed more energy from the utility than they exported to the grid. lf the sum at the end of the hour is less than zero, the customer exported more energy to the grid than they consumed from the utility. As a result, there is no way to know if any energy has been exported to the grid within the hour if the customer always consumes more energy from the utility on an hourly basis. 27 ldaho Power Company's Answer to Vote Solar's Petition for Reconsideration at 4 IDAHO POWER COMPANY'S OPENING BRIEF ON RECONSIDERATION - 25 To illustrate this, ldaho Power obtained the data for a single customer from March 2016 where a power quality meter was temporarily installed at the customer's request to record data on a 30-second basis. Figure 13 illustrates the net hourly consumption over a 24-hour period at the customer's premise. Figure 13. Net Hourly Consumption for lndividual Customer 2.50 2.00 1.50 r..00 0.50 0.00 -0.50 -1.00 r,.llr 10 LL t2 13 14 15 16 llr 678 ll 34 ll I llro2t222324 Note that the net consumption in hour 16:00 is just barely positive -- the net consumption is 22 watt-hours. However, what is not obvious by looking at the total net energy consumption for the hour is that the customer did export excess energy to the grid during that hour. To understand what happens on a moment-by-moment basis, the Company plotted hour 16:00 using 3O-second intervals. The intra-hour usage for hour 16:00 is shown in Figure 14. The usage for each 30-second interval is plotted over the course of the hour. IDAHO POWER COMPANY'S OPENING BRIEF ON RECONSIDERATION - 26 Figure 14. lntra-Hour Gonsumption for lndividual Customer 5.00 4.00 3.00 2.00 =-v. 1.00 0.00 +'0 300 L800 2700 3000 3300 -1.00 -2.00 Seconds The blue area of the graph indicates intervals where the customer consumed energy from the utility - totaling 251 watt-hours. The red area indicates intervals where the customer generated more energy than they could consume and the excess energy was exported to the grid - totaling 229 watt-hours. As indicated previously, the total net energy consumption for the hour was22 watt-hours - this is the value ldaho Power would receive from the net meter for hour 16:00. ldaho Power would have no way to detect that this customer had in fact exported energy to the grid within the hour. Given that intra-hour exports cannot be detected using current metering configurations, Vote Solar's request to use energy exports as the criteria for inclusion in new Schedules 6 and 8 is not enforceable. IDAHO POWER COMPANY'S OPENING BRIEF ON RECONSIDERATION - 27 12AO B. Safety Since 2002, Schedule 72 has required that all customers with on-site generation notify ldaho Power when a net metering system and small on-site generation system is interconnected (in parallel) to the Company's system. Net metering systems and small on-site generation systems interconnected to the Company's system without Company approval are considered unauthorized installations that jeopardize the reliability of ldaho Power's system and the safety of its employees.2s This includes, but is not limited to, newly installed systems and unapproved expansions of approved systems. The utility must be aware of any system connected in parallel to its electric grid to ensure that all systems have passed the proper electrical inspections and include the proper safety equipment to disconnect the system from the grid. Once ldaho Power is notified of a newly installed system or of an expansion of an approved system, the Company then has the opportunity to perform a feasibility reviewze to determine the capability of the Company's electricalsystem to incorporate the on-site generation system and determine if upgrades are necessary. Upon installation of its on-site generation system, the customer must provide documentation to the Company verifying that all federal, state, and local requirements have been met.30 The customer must also provide the Company with a System Verification Form detailing the specifications of all installed components of the system. The Company will then perform an on-site inspection to verify all requirements have been 28 Schedule 72, Sheet No. 72-10 2s ld. at Sheet No.72-7. 30 ld. at Sheet No. 72-8. IDAHO POWER COMPANY'S OPENING BRIEF ON RECONSIDERATION - 28 met.31 Upon successful completion of the on-site inspection, the Company will move the customer to either the net metering service or small on-site generation service rate schedule.sz lf the Commission were to grant Vote Solar's request to allow customers who do not export to continue to take service undertheir standard service schedule, the Company would not have an opportunity to verify those systems are interconnected in a manner that would not jeopardize reliability of ldaho Power's system or the safety of its employees. The Commission should require all on-site generation systems operating in parallel with the grid to continue to be subject to the interconnection requirements contained in ScheduleT2 as set forth by Schedules 6 and 8. tv. CONCLUSION It is imperative that the Commission establish the appropriate application of Schedules 6 and 8 now so that as technology evolves, one definitive criteria exists that makes sense for all forms of distributed energy resources. The Company believes the Commission's Order in this matter, and the tariff schedules approved in this case, appropriately establish the scope of the customers to be included in Schedules 6 and 8 as all customers whose on-site generation systems are connected in parallel to ldaho Power's system. Eligibility for Schedules 6 and 8 should be based upon the existence of on-site generation that is connected in parallel with ldaho Power's system. This classification 31 ld. 32 ld. at Sheet Nos. 72-7 and72-8. IDAHO POWER COMPANY'S OPENING BRIEF ON RECONSIDERATION - 29 approach will establish two unique groups of self-generating customers with load service requirements that are distinctly different than customers without on-site generation. The ability to export, or lack thereof, does not significantly impact the load service requirements of these "prosumers." Separate classification for R&SGS customers with on-site generation connected in parallel with ldaho Power's system will best position the Commission to establish fair, just, and reasonable rates and compensation structures for these groups of customers into the future. ldaho Power recommends the Commission reject Vote Solar's request to require the Company to revise new Schedules 6 and 8 to apply only to customers who export electricity. While there are several cost-of-service, operational, and safety benefits to including self-generating customers without exports in Schedules 6 and 8, there is no downside -- except perhaps for those self-generators who could benefit from continued access to the cross-subsidy that exists in volumetric standard service rates. Respectfully submitted this 1Oth day of August 2018. LISA D. NOR Attorney for ldaho Power Company IDAHO POWER COMPANY'S OPENING BRIEF ON RECONSIDERATION - 30 GERTIFICATE OF SERVICE I HEREBY CERTIFY that on the 1Oth day of August 2018 I served a true and correct copy of IDAHO POWER COMPANY'S OPENING BRIEF ON RECONSIDERATION upon the following named parties by the method indicated below, and addressed to the following: Commission Staff Sean Costello Deputy Attorney General ldaho Public Utilities Commission 472 West Washington (83702) P.O. Box 83720 Boise, ldaho 83720-0074 ldahydro C. Tom Arkoosh ARKOOSH LAW OFFICES 802 West Bannock Street, Suite 900 P.O. Box 2900 Boise, ldaho 83701 ldaho Conservation League Matthew A. Nykiel ldaho Conservation League 102 South Euclid #207 P.O. Box 2308 Sandpoint, ldaho 83864 Benjamin J. Otto Idaho Conservation League 710 North 6th Street Boise, ldaho 83702 Idaho lrrigation Pumpers Association, Inc. Eric L. Olsen ECHO HAWK & OLSEN, PLLC 505 Pershing Avenue, Suite 100 P.O. Box 6119 Pocatello, ldaho 83205 _Hand Delivered _U.S. Mail _Overnight Mail _FAXX Email sean.costello@puc.idaho.qov _Hand Delivered _U.S. Mail _Overnight Mail _FAXX Email tom.arkoosh@arkoosh.com erin.cecil@arkoosh.com _Hand Delivered _U.S. Mail _Overnight Mail _FAXX Email mnvkiel@idahoconservation.orq _Hand Delivered _U.S. Mail _Overnight Mail _FAXX Email botto@idahoconservation.orq _Hand Delivered _U.S. Mail _Overnight Mail _FAXX Email elo@echohawk.com Anthony Yankel 12700 Lake Avenue, Unit 2505 Lakewood, Ohio 44107 _Hand Delivered _U.S. Mail _Overnight Mail _FAXX Email tonv@vankel.net IDAHO POWER COMPANY'S OPENING BRIEF ON RECONSIDERATION.3l Auric Solar, LLC Preston N. Carter Deborah E. Nelson GIVENS PURSLEY LLP 601 West Bannock Street Boise, ldaho 83702 Elias Bishop Auric Solar, LLC 2310 South 1300 West West Valley City, Utah 841'19 Vote Solar David Bender Earthjustice 3916 Nakoma Road Madison, Wisconsin 537 11 Briana Kobor Vote Solar 986 Princeton Avenue S Salt Lake City, Utah 84105 City of Boise Abigail R. Germaine Deputy City Attorney Boise City Attorney's Office 150 North Capitol Boulevard P.O. Box 500 Boise, ldaho 83701-0500 ldaho Clean Energy Association Preston N. Carter Deborah E. Nelson GIVENS PURSLEY LLP 601 West Bannock Street Boise, ldaho 83702 Sierra Glub Kelsey Jae Nunez KELSEY JAE NUNEZLLC 920 North Clover Drive Boise, Idaho 83703 _Hand Delivered _U.S. Mail _Overnight Mail _FAXX Email prestoncarter@qivenspurslev.com den@qivenspu rslev.com _Hand Delivered _U.S. Mail _Overnight Mail _FAXX Email elias.bishop@auricsolar.com _Hand Delivered _U.S. Mail _Overnight Mail _FAXX Email dbender@earthjustice.oro _Hand Delivered _U.S. Mail _Overnight Mail _FAXX Email briana@votesolar.orq _Hand Delivered _U.S. Mail _Overnight Mail_FAXX Email aqermaine@cityofboise.orq _Hand Delivered _U.S. Mail _Overnight Mail _FAXX Email prestoncarter@qivenspurslev.com den@g ivenspu rsley. com _Hand Delivered _U.S. Mail _Overnight Mail _FAXX Email kelsey@kelseyjaenunez.com IDAHO POWER COMPANY'S OPENING BRIEF ON RECONSIDERATION - 32 Tom Beach Crossborder Energy 2560 9th Street, Suite 213A Berkeley,CA 94710 Zack Waterman Director, Idaho Sierra Club 503 West Franklin Street Boise, ldaho 83702 Michae! Heckler 3606 North Prospect Way Garden City, ldaho 83714 Snake River Alliance NW Energy Goalition John R. Hammond, Jr. FISHER PUSCH LLP 101 South Capito! Boulevard, Suite 701 P.O. Box 1308 Boise, ldaho 83701 lntermountain Wind and Solar, LLC Ryan B. Frazier Brian W. Burnett KIRTON McCONKIE 50 East South Temple, Suite 400 P.O. Box 45120 Salt Lake City, Utah 84111 Doug Shipley lntermountain Wind and Solar, LLC 1953 West2425 South Woods Cross, Utah 84087 _Hand Delivered _U.S. Mail _Overnight Mail _FAXX Email tomb@crossborderenerqv.com _Hand Delivered _U.S. Mail _Overnight Mail _FAXX Email zack.waterman@sierraclub.orq _Hand Delivered _U.S. Mail _Overnight Mail _FAXX Email michae!.p.heckler@qmail.com _Hand Delivered _U.S. Mail _Overnight Mail _FAXX Email irh@fisherpusch.com wwi lson @ s nakerivera I I ia nce. oro dieoo@nwenerov.oro _Hand Delivered _U.S. Mail _Overnight Mail _FAXX Email rfrazier@kmclaw.com bburnett@kmclaw.com _Hand Delivered _U.S. Mail _Overnight Mail _FAXX Email douq@imwindandsolar.com o , Executive Assistant IDAHO POWER COMPANY'S OPENING BRIEF ON RECONSIDERATION .33 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION CASE NO. IPC-E-17-13 IDAHO POWER COMPANY ATTACHMENT 1 ATTACHMENT 1 Methodology for Limited Export Simulation ldaho Power Company ("ldaho Power" or "Company") developed a methodology, described herein, to simulate a residential customer net load profile that assumes the implementation of an export limiting device on a parallel-connected on-site generation system. A simulation was necessary because the Company is not aware of any application of an export limiting device on residential or small general service customer's parallel-connected on-site generation system within its service area that could be analyzed. The simulation methodology encompassed selecting a sampling of residential customers, creating a photovoltaic ("PV") generation profile, scaling the PV generation profile per customer, producing the annual net hourly load profile for each sample customer by subtracting the PV generation from the customer load, and calculating monthly load factor, load shapes, system-coincident demand and non-coincident demand for the segment of customers analyzed. 1. Selectinq a Sample of Residential Customers The 2016 hourly load data from ldaho Power's residential load research sample was used as the reference load profiles for the simulation.l The ldaho residential sample is a stratified random sample that was designed using Oracle Utilities' LodeStar sampling package. A multidimensional stratified sample was utilized, using the Delanius/Hodges methodology to identify stratum breakpoints, and the Neyman allocation methodology was used to determine sample size. The sample design target statistics were based on 1 The 2016 load research sample data was previously provided to all parties in response to Vote Solar's Data Request No. 27. 1 10 percent reliability with 90 percent confidence. The sample consists of four usage strata combined with six demographic strata resulting in 24 total strata (four usage by six demographic). The usage stratifying variable was the average 30-day normalized billed kilowatt-hour ("kWh"). The following usage stratum breakpoints were identified: 0-700 kwh,701-1,250 kwh, 1,251-2,150 kwh, and2,150+ kWh. The demographic stratifying variable was based on the six weather stations across ldaho Power's service area. They include the following weather stations: Boise, Ketchum, McCall, Ontario, Pocatello, and Twin Falls. The simulation was limited to the 272 sample customers from the Boise weather station. An additional data set was created from this data set by offsetting the load with an annual production profile of a PV system appropriately sized for each customer. All hourly energy exports were replaced with zero. 2. Establishinq a Normalized PV Generation Profile A normalized PV generation profile was created for a PV system in Boise, ldaho. ldaho Power chose the National Solar Radiation Data Base, Typical Meteorological Year 3, Boise Air Terminal data set for the PV irradiance data. These data were applied to the most common system configuration of 5.6kWdc/5kWac, with a due south azimuth and a 25 degree tilt. Each simulation production hour was divided by the maximum annual production value to obtain a normalized annual PV generation profile. 3. Determininq an Export Limited PV Svstem Size While the Company has found that a 6k\M system is the most commonly installed residentialon-site generation size on ldaho Power's system, a customerthat limits energy 2 ldaho Power Company's 2016 Annual Net Metering Status Report at 9 2 exports will likely install a smaller PV system than those who export excess energy. This is because a customer who can net their annual energy needs to zero through monthly net metering is incented to size their system to generate enough energy credits in the higher radiation months to cover the customer's energy requirements that exceed the self-generation through the remainder of the year. On the other hand, a customer with an export limiting device will size their PV system to limit most generation in excess of the customer's hourly energy needs. To determine the size of the simulated PV systems, the Company first scaled the normalized annual PVgeneration profile by each sample customer's annual consumption. Then the PV generation system size was optimized for reduction of grid energy consumption while minimizing excess energy generation. A distribution of the resulting PV system sizes is provided in Figure 1. Figure 1. Distribution of Simulated PV Generation System Sizes 10 15 PV Size (kW) 60 50a E #oo a Eso o -oE20 z 01 5 3 0 20 25 The distribution of PV system sizes illustrates that a majority of simulated PV systems were between 3 kW and 4 kW. A scatterplot was used to illustrate the association between the PV system size and the annual energy consumption for each sample customer. The relationship between the PV system size and the annual energy consumption for each sample customer is shown in Figure 2. Figure 2. Relationship Between Simulated PV System Size and Annual Energy Use 25 20 5 0 0 10,000 20,000 30,000 40,000 50,000 60,000 Annual Energy (kwh) The scatterplot shows a strong, positive, linear association between the PV system size and the annual energy use. 4. Creatinq Zero-Export Load Shape for Each Sample Customer The normalized PV production profile was scaled per sample customer by multiplying the normalized PV load shape by the size of each sample customer's PV 1 1 F5 o .N U) o- 5 0 4 system. The net hourly load shape was then created by subtracting the sample customer's PV production from their load. Finally, the zero-export load shape was created for each sample customer by taking the net hourly load shape and setting all negative net usage hours to zero. 5. Calculatinq Load Factor and Load Shapes The monthly load factors and monthly load shapes were calculated for both the group of reference sample customers and for the simulated group of customers. The average monthly load factor was generated by calculating the weighted average of the monthly load factor for each month for both groups.3 The average monthly load shape was generated by calculating the weighted average of the hourly energy consumption for each hour for both groups.a 6. CalculatinqSvstem-CoincidentandNon-CoincideotDemand The monthly system-coincident demand and non-coincident demand were calculated for both the group of reference sample customers and for the group of simulated customers. The monthly system-coincident demand was determined by finding the monthly weighted average of hourly energy consumption at the time of the system peak for both groups.s The monthly non-coincident demand was determined by finding the monthly maximum weighted average of hourly energy consumption for both groups.6 3 ldaho Power Company's Opening Brief on Reconsideration, Figure 1 4 /d., Figures 2, 3, and 4. s /d., Figure 5. 6 /d., Figure 6. 5 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION GASE NO. !PG-E-17-13 IDAHO POWER COMPANY ATTACHMENT 2 ATTACHMENT 2 Pilot Customer Load Shapes With No Enerqv Exports To study the effects of preventing the export of excess energy and to verify the results of ldaho Power Company's ("ldaho Power" or "Company") Limited Export Simulation of a residential customer who installs on-site generation and then prevents the export of excess energy, the Company performed the same load factor, load profile, system-coincident demand (.SCD") and non-coincident demand ('NCD') analyses on a segment of 18 residential solar customers who participate in a Solar Photovoltaic ("PV") Pilot Program ("Pilot") in ldaho Power's Oregon service area. The metering requirements for the Pilot are such that the customer must have a second, Company-owned, meter that measures only the net solar PV generation. The meter must be placed at a location designated by the Company on the customer load side of the retail meter and on the alternating current side of the inverter. Due to the required meter configuration, the Company records separately the amount of excess energy exported to the grid. This enabled the Company to set the energy exports to zero for these analyses in order to determine if the results differ for a residential customer who installs on-site generation and then prevents the export of excess energy, and without the installation of the on-site generation. The Company analyzed the data for these 18 residential customers for all 12 months of 2016. The following results of the Company's supplementary analysis confirms that the load service requirements and usage characteristics differ for a customer when they do not have on-site generation as compared to when they do have on-site generation and prevent the export of excess energy. Load Service Requirements Load Factor - Residential Pilot Participants with No Enerov Exports Using the data from residential Pilot participants, the Company calculated the load factor for each Pilot participant before and after the installation of on-site generation without 1 the capability to export excess energy. The average monthly load factors of the Pilot participants before and after the installation of on-site generation without the capability to export excess energy are shown in Figure 1. Figure 1. Load Factor - No Energy Exports for Residential Pilot Participants Load Factor tllll 40% 35% 30% 25% 20% t5% LO% 5% o%ffilw lw 3 r Without On-Site Generation .. On-Site Generation - No Energy Exports The Company's load factor analysis of the Pilot participants demonstrates that load factor is notably lower after the installation of on-site generation -- even without the capability to export excess energy. This result is consistent with the Limited Export Simulation performed by the Company. Pattern of Use Load Profile - Residential Pilot Participants with No Enerqv Exports Using data from residential Pilot participants, the Company developed the load profile for each Pilot participant before and after the installation of on-site generation without the capability to export excess energy. The average load profile of the Pilot participant for a winter month, a spring month, and a summer month are shown in Figures 2, 3, and 4, respectively. For the three graphs, each hour data point is the average for that hour throughout the month. L2111098765421 2 r Figure 2. January Load Shape - No Energy Exports for Residential Pilot Participants January Load Profiles 5.00 4.00 3.00 2.00 1.00 0.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00 s.00 4.00 3.00 2.00 1.00 0.00 L23456789 L0 11 t2 L3 L4 15 L6 t7 t8 t9 20 21 22 23 24 -On-Site Gen with No Energy Exports -$t3nfl31d Service Figure 3. April Load Shape - No Energy Exports for Residential Pilot Participants April Load Profiles 123456789 10 1L t2 73 14 75 76 L7 18 19 20 2t 22 23 24 On-Site Gen with No Energy Exports -standard service Figure 4. June Load Shape - No Energy Exports for Residential Pilot Participants June Load Profiles 723456789 LO Lt L2 13 14 15 76 77 18 L9 20 27 22 23 24 -On-Site Gen with No Energy Exports 3 -gt6nd31d Service \_ The Company's load profile analysis of the Pilot participants demonstrates that the load profile changes significantly after the installation of on-site generation -- even without the ability to export excess energy. The on-site generation causes a downward ramp after the sun rises and generation from the utility is replaced by the on-site generation for several hours. Then, as the sun sets and solar generation ends, a significant upward ramp occurs. This is vastly different than the load curve of a standard service customer, where the transition from hour-to-hour is smoother with significantly lower rate of change in usage during the morning and evening hours. This result is consistent with the Limited Export Simulation performed by the Company. Svstem-Coincident Demand - Residential Pilot Participants with No Enerov Exports The SCD is the average demand for a segment of customers at the time of ldaho Power's system peak. The analysis of SCD is important for cost allocation purposes because: (1) production plant costs associated with serving base and intermediate load are allocated using an average of the 12 monthly SCDs, (2) production plant costs associated with serving peak load are allocated using an average of the three monthly SCDs occurring in June, July, and August, and (3) transmission costs are allocated using an average of the 12 monthly SCDs. Using data from residential Pilot participants, the Company calculated the SCD for the group of Pilot participants before and after the installation of on-site generation without the capability to export excess energy. The monthly SCDs for the group of Pilot participants before and after the installation of on-site generation without the capability to export excess energy are shown in Figure 5. 4 Figure 5. System-Coincident Demand - No Energy Exports for Residential Pilot Participants System-Coincident Dema nd 7.00 6.00 s.00 4.00 3.00 2.00 1.00 0.00 rercr l*I rerere Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec r Without On-Site Generation " On-Site Generation - No Energy Exports The Company's SCD analysis demonstrates that the SCD of the group of Pilot participants is lower for several months after the installation of on-site generation -- even without the capability to export excess energy. This result is consistent with the Limited Export Simulation performed by the Company. The results of this analysis suggest that production plant costs associated with serving peak load would decrease because these costs are allocated using an average of the three monthly SCDs occurring in June, July, and August, and transmission costs increased because they are allocated using an average of 12 monthly SCDs. Consequently, the resulting different allocation of costs supports the argument that it is appropriate for all customers who install on-site generation -- even without the capability to export excess energy -- be included in Schedules 6 and 8. Non-Coincident Demand - Residential Pilot Participants with No Enerqv Exports The NCD is the maximum average demand for a segment of customers in any given hour, regardless of when it happens. Similar to SCD, the analysis of NCD is important for cost allocation purposes because NCDs are used to allocate ldaho Power's distribution system costs. 5 TIt Using data from residential Pilot participants, the Company calculated the NCD for the group of Pilot participants before and after the installation of on-site generation without the capability to export excess energy. The monthly NCDs for the group of Pilot participants before and after the installation of on-site generation without the capability to export excess energy are shown in Figure 6. Figure 6. Non-Coincident Demand - No Energy Exports for Residential Pilot Participants Non-Coincident Demand 10.00 9.00 8.00 7.00 6.00 5.00 4.00 3.00 2.00 1.00 0.00 llIrilr Jan Feb Mar Apr May r Without On-Site Generation lrrllll Nov DecJun Jul Aug Sep Oct & On-Site Generation - No Energy Exports The result of the Company's NCD analysis is consistent with the Limited Export Simulation performed by the Company and continues to demonstrate that the installation of on-site generation has very little impact on the NCD of the average residential customer who installs on-site generation -- even with no energy exports. The customers load over the course of the month will continue to place the same level of peak demand on the system. This is an important observation because NCDs are used to allocate distribution costs. While customers who install on-site generation without the capability to export excess energy contribute to distribution costs in a similar manner, the collection of these costs through the volumetric charge for standard service customers will result in cost shifting. To minimize this, all customers with on-site generation -- even those who have no ability to export energy - should be included in Schedules 6 and I to appropriately assign and collect costs and address cost shifting. 6 r BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION GASE NO. 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