20191011Customer Notice.pdf

October 11,2OL9
Customer Name
Customer Address
Dear Valued Customer-
Because you have applied to participate in customer generation, we are writing to let you know ldaho
Power and the Staff of the ldaho Public Utilities Commission (IPUC) have filed a settlement agreement
with the IPUC regarding changes to the compensation structure for residential and small general service
customers with on-site generation. As you know, participating customers use rooftop solar panels and
other resources to generate some of their own energy.
This settlement is the result of months of collaborative discussions between ldaho Power and several
parties, including the IPUC Staff, Sierra Club, City of Boise, ldaho Clean Energy Association, ldaho
lrrigation Pumpers Association and others. One of the main goals of these discussions was to evaluate
new compensation structures for customers who export energy to ldaho Power's electrical system using
their own generation, which represents a small but growing segment of our more than 560,000
customers. Accurate pricing for customer generation will lead to a more equitable and sustainable
service offering into the future.
A determination on whether the changes described below will apply to existing customers with on-site
generation will be decided by the IPUC based on arguments provided by parties to the case. lf approved
by the IPUC as filed, the settlement will result in the following changes for residential (Schedule 6) and
small general service (Schedule 8) customers with on-site generation:
1. Energy delivered from, or exported to, ldaho Power's system will now be measured on a net
hourly basis, rather than the current monthly netting process. This will allow the more accurate
measurement of both the energy provided by ldaho Power to the customer and the amount of
customer-generated energy exports.
2. When customers generate more energy than they consume during the hour, they will be
credited at a new rate, rather than the full retail rate they are receiving now. The new rate will
initially be set at approximately 8.7 cents per kilowatt hour (kWh) for Schedule 6 and 10.2 cents
per kWh for Schedule 8, effective January !,2O2O.
3. New and existing (unless exempted by IPUC order) customers with on-site generation will be
transitioned to the new pricing structure in four separate increments over an eight-year period.
These adjustments are expected to occur in 2022,2024,2026 and 2028. The final credit rate to
become effective in 2028 has initially been estimated to be 4.4 cents per kWh for Schedule 6
and 4.9 cents per kWh for Schedule 8 customers. The determination of this final credit rate will
be reviewed and validated in conjunction with ldaho Power's lntegrated Resource Planning
process throughout the transition period and is subject to change after separate IPUC
proceedings.
4. ldaho Power will provide a "non-export option" for customers who wish to interconnect to
ldaho Power's grid without exporting excess energy back to ldaho Power.
ldaho Power believes this settlement will help modernize its compensation structure for customer
generation, which will help keep prices fair and affordable for all customers. More detailed information
about this case and settlement agreement is available on the IPUC website, puc.idaho.gov.
The settlement is a proposalthat is subject to public review and approval by the IPUC. Copies of the
settlement are available to the public at the IPUC offices (11331 W. Chinden Blvd, Bldg 8, Suite 201-A,
Boise, ldaho 8371.4),ldaho Power offices or on ldaho Power's website, idahopower.com, or the IPUC
website, puc.idaho.gov. Customers also may subscribe to the IPUC's RSS feed to receive periodic
updates via email about the case. Written comments regarding the settlement may also be filed with
the IPUC.
More information about these changes will be forthcoming. lf you have questions, you can call our
Customer Care team at [phone] or send us an email at [e-mail].
We appreciate the opportunity to serve you.
Sincerely,
Your ldaho Power Customer Generation Team