20170817notice_of_application_order_no_33843.pdf

Office of the Secretary
Service Date
August 17.2017
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )CASE NO.IPC-E-17-13
OF IDAHO POWER COMPANY FOR )
AUTHORITY TO ESTABLISH NEW )NOTICE OF APPLICATION
SCHEDULES FOR RESIDENTIAL AND )
SMALL GENERAL SERVICE )NOTICE OF
CUSTOMERS WITH ON-SITE )INTERVENTION DEADLINE
GENERATION )
______________________________
)ORDER NO.33843
On July 27,2017,Idaho Power Company (“Idaho Power”of the Cornpany”)applied
for authority to establish new schedules for residential and small general service customers
(‘R&SGS”)with on-site generation (“Application”).Idaho Power contends that its existing
retail pricing structure does not accurately reflect the cost to serve its customers with on-site
generation who require services from Idaho Power,hut who also meet some of their own energy
needs with on-site.customer-owned systems such as rooftop solar.
With this Order the Commission notifies interested persons that the Company has
filed the Application,and sets deadlines by which interested persons may intervene.
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that the Company is a public utility providing net
metering service to its Idaho customers.The Company’s Application states that “[n]et metering
service is offered by the Company ...to provide for the transfer of electricity to the Company
from customer-owned generation facilities with the intent of offsetting all or a portion of a
customer’s energy usage.”
YOU ARE FURTHER NOTIFIED that the Company states that in recent years the
number of its customers choosing on-site generation and,therefore,taking bi-directional
electricity services,has outpaced the Company’s extant net metering rates,leading to unfair cost
shifting between certain customer classes.The Company further maintains that due to this value
imbalance and related pricing inaccuracies,it is time,in line with the electric utility industry
nationwide,to reassess the appropriateness of net metering policies established decades ago,
when nearly all Idaho Power customers received one-way power service.
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO.33843 1
YOU ARE FURTHER NOTIFIED that the Company states that its existing net
metering rate structure creates inequity between standard service customers and net metering
customers because net metering customers decrease some or all of their net usage while still
heavily relying on the Company’s grid to purchase and transfer electricity.The Company states
this reduces its ability to collect class revenue requirement.leaving other residential customers to
pay the fixed costs that transfer to them through the claimed net metering revenue shortfall.The
Company also believes that the current net metering rate design subsidizes,by wealth transfer,
those with the financial ability to install solar by those without the ability to do so.
YOU ARE FURTHER NOTIFIED that the Company proposes to correct this claimed
unfair cost shifting by amending its net metering rate design to remove rate design based
incentives for net metering and help expand scalable and sustainable on-site generation.The
Company believes its proposed amendments will correctly signal to customers that changes in
rate design or compensation for excess net energy could negatively impact the economics of their
investment in on-site generation.
YOU ARE FURTHER NOTIFIED that,specifically,Idaho Power asks the
Commission to:
I.Close Schedule 84 to new service for R&SGS customers with on-site
generation after December 31,2017;
2.Establish two new classes and implement two new tariff schedules,for
R&SGS customers with on-site generation that ask to connect to Idaho
Power’s system on or after January 1,2018,with no pricing changes at
this time;
3.Amend all applicable Company tariff schedules to require the installation
and operation of smart inverters for all new customer-owned generator
interconnection within 60 days following the Institute of Electrical and
Electronic Engineers adopting of an industry standard definition of smart
inverters;and
4.Open a generic case to establish a compensation structure for customer-
owned distributed energy resources when this case ends.
YOU ARE FURTHER NOTIFIED that the Company requests that the Commission
convene a prehearing conference to establish proper procedure for this case and issue a final
Order by December 29,2017.
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO.33843 2
YOU ARE FURTHER NOTIFIED that the Company attached its clean and proposed
Tariff 101,Schedules 6,8,Rule H-i,54,55,63,66,72,81,84,91,98,and Direct Testimonies
by David M.Angell,Connie 0,Aschenbrenner,and Timothy E.Tatum to its Application.
YOU ARE FURTHER NOTIFIED that the Application and supporting workpapers,
testimonies and exhibits have been filed with the Commission and are available for public
inspection during regular business hours at the Commission offices.The Application and
testimonies are also available on the Commission’s web site at www.puc.idaho.gov.Click on the
“File Room”tab at the top of the page,scroll down to “Electric Cases,”and then click on the
case number as shown on the front of this document.
NOTICE OF INTERVENTION DEADLINE
YOU ARE FURTHER NOTIFIED that persons desiring to intervene in this matter
must file a Petition to Intervene with the Commission pursuant to this Commission’s Rules of
Procedure 72 and 73,IDAPA 3 1.01.01.072 and -.073.Persons intending to participate in this
matter must file a Petition to Intervene no later than twenty-one (21)days from the service date
of this Order.Persons desiring to present their views without parties’rights of participation and
cross-examination are not required to intervene and may present their comments without prior
notification to the Commission or the parties.
YOU ARE FURTHER NOTIFIED that once the intervention deadline has passed,the
Commission Secretary will issue a Notice of Parties listing all parties to the case and assigning
exhibit numbers to each party in this proceeding.The Commission Staff will then informally
confer with the parties about a proposed schedule and other matters.The Staff will then report
back to the Commission with a proposed schedule,and the Commission will issue additional
orders or notices setting further procedure,including a public hearing for customers.
YOU ARE FURTHER NOTIFIED that the following persons are designated as Idaho
Power’s representatives in this matter:
Lisa D.Nordstrom Timothy E.Tatum
Idaho Power Company Connie Aschenbrenner
1221 W.Idaho Street (83702)Idaho Power Company
P0 Box 70 1221 W.Idaho Street (83702)
Boise,ID 83707-0070 P0 Box 70
E-mail:[e-mail] Boise,ID 83707-0070
[e-mail] E-mail:[e-mail]
caschenbrenner4idahopower.corn
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO.33843
YOU ARE FURTHER NOTIFIED that the Commission has jurisdiction over this
matter under Title 61 of the Idaho Code.The Commission may enter any final order consistent
with its authority under Title 61.
YOU ARE FURTHER NOTIFIED that the Commission will conduct all proceedings
under the Commission’s Rules of Procedure,IDAPA 31.01.01.000 etseq.
ORDER
IT IS HEREBY ORDERED that persons desiring to intervene in this matter shall file
a Petition to Intervene with the Commission no later than twenty-one (21)days from the service
date of this Order.
IT IS FURTHER ORDERED that after the intervention deadline has passed,a Notice
of Parties shall issue and Staff shall informally confer with the parties and report back to the
Commission with a proposed schedule.The Commission then will issue further orders or notices
setting a case schedule,including a public hearing for customers.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of August 2017.
PAUL KJEL A ER,PRESIDENT
S lONER
ERIC ANDERSON,COMMISSIONER
ATTEST:
Diane Hanian
Commission Secretary
O:IPC-E-17-13_sc
NOTICE OF APPLICATION
NOTICE OF INTERVENTION DEADLINE
ORDER NO.33843 4