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Home My WebLink About20200116Answer to Kluckhohns Reconsideration.pdfftffi*. an loAcoRP company LISA D. NORDSTROM Lead Counsel I nordstrom@idahopower.com RECEIVED l0?0 JiH 15 Ptl 2: 26 January '16,2020 VIA HAND DELIVERY Diane Hanian, Secretary ldaho Public Utilities Commission 11331 W. Chinden Boulevard Building 8, Suite 201-A Boise, ldaho 83714 Dear Ms. Hanian Enclosed for filing in the above matter please find an original and seven (7) copies of ldaho Power Company's Answer/Cross-Petition to Richard Kluckhohn's Request for Reconsideration in the above matter. lf you have any questions about the enclosed documents, please do not hesitate to contact me. Very truly yours, (.r^-,(--*1",*- Lisa D. Nordstrom LDN:kkt Enclosures Re: Case No. IPC-E-18-15 Study of Costs, Benefits, and Compensation of Net Excess Energy Supplied by Customer On-Site Generation ldaho Power Company's Answer/Cross-Petition to Richard Kluckhohn's Request for Reconsideration LISA D. NORDSTROM (lSB No. 5733) ldaho Power Company '1221 West ldaho Street (83702) P.O. Box 70 Boise, ldaho 83707 Telephone: (208) 388-5825 Facsimile: (208) 388-6936 lnordstrom@ida hooower.com Attorney for ldaho Power Company BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION RECEIVEI) ,:c?0 Jrlll l6 Pll 2: 26 . r--iL'i IN THE MATTER OF THE PETITION OF IDAHO POWER COMPANY TO STUDY THE COSTS, BENEFITS, AND COMPENSATION OF NET EXCESS ENERGY SUPPLIED BY CUSTOMER ON-SITE GENERATION CASE NO. IPC.E-18-15 IDAHO POWER COMPANY'S ANSWER/CROSS-PETITION TO RICHARD KLUCKHOHN'S REQUEST FOR RECONSIDERATION On January 9, 2020, Richard Kluckhohn, a customer of ldaho Power Company ("ldaho Power" or "Company"), requested reconsideration of Order No. 34509. Mr. Kluckhohn asks the ldaho Public Utilities Commission ("Commission") to amend its order to "grandfather the [on-site generator's] system for the life of the system or a reasonable time frame of not less than the standard warranty period of the system," rather than the customer, into ldaho Power's existing net metering program.l ldaho Power, in accordance 1 Richard Kluckhohn's Request for Reconsideration of Order No. 34509 at 5 (January 9, 2020) IDAHO POWER COMPANY'S ANSWER/CROSS-PETITION TO RICHARD KLUCKHOHN'S REQUEST FOR RECONSIDERATION - ,I ) ) ) ) ) ) ) with ldaho Code $ 61-626 and RP 331.02 and -05, files this Answer/Cross-Petition, to Richard Kluckhohn's request. ldaho Power does not oppose Mr. Kluckhohn's request to amend the Commission's order to grandfather the on-site generation system by location rather than by customer. Several other states have grandfathered net metered customers by system location, which appears to be the predominant regulatory approach thus far. ln this Answer/Cross-Petition, ldaho Power presents certain recommended criteria for the Commission's consideration if it grants reconsideration and determines that grandfathering should apply to the system at a given location rather than the customer. I. STATES GRANDFATHERING NET METERED SYSTEMS A survey of states that eliminated, revised, or otherwise modified retail rate net metering reveals that the predominant regulatory practice is to apply grandfathering by system location rather than by customer. That is, grandfathering of net metering is associated with the premises on which the on-site generation was installed, not with the specific customer that purchased or installed the system. Arizona, Utah, Louisiana, and California have each revised or adjusted their net metering compensation structure in recent years, and in each case the applicability of grandfathering was established at the system location: o Arizona. The Arizona Corporation Commission, in its 2017 order on the Value of Distributed Generation, specifically addressed grandfathering status based on location: [O]ur grandfathering concepts are intended to apply to the location where DG equipment is located, as opposed to any specific customer. For example, if a customer with a grandfathered , RP 331.05 describes Answers to Petitions for Reconsideration as "pleadings that disagree with a petition for reconsideration, but do not ask for affirmative relief from the Commission's orders . . . ." Because the Company neither opposes Mr. Kluckhohn's request nor itself requests "affirmative relief," ldaho Power has characterized this pleading as an "Answer/Cross-Petition" to facilitate its consideration as the Commission finds appropriate, recognizing that the Commission may also clarify Order No. 34492 on its own motion under RP 325. IDAHO POWER COMPANY'S ANSWER/CROSS.PETITION TO RICHARD KLUCKHOHN'S REQUEST FOR RECONSIOERATION .2 a DG system moves to a different home, that customer forfeits his grandfathered status. A customer who moves into a home that has a grandfathered DG system may "inherit" that grandfathered status.3 Utah. A net metering stipulation in Utah signed by Rocky Mountain Power and parties, and fully approved by the Public Service Commission of Utah, provided clear language on the transferability of grandfathering: "lf a [net energy metering] customer transfers ownership of the applicable property, the transferee will be a NEM customer throughout the grandfathering period.'1 Louisrana.By adopting Distributed Generation Rule 7.1.4, the Louisiana Public Service Commission similarly clarified that grandfathering remains with the system at the original premises in a recent order revising net metering rules.5 California. California has completed two revisions to net metering over the past decade for its three electric investor-owned utilities, Pacific Gas & Electric, Southern California Edison, and San Diego Gas & Electric. The California Public Utility Commission found that: "Renewable generation systems eligible for the 20-year transition period adopted in this decision 3 Arizona Corporation Commission, ln the Mafter of the Commission's lnvestigation of Value and Cost of Distibuted Generation, Docket No. E-00000J-14-0023, Order No. 75859, p. 156 (January 3, 2017). 4 Public Service Commission of Utah, /n the Matter of the lnvestigation of lne Cosfs and Benefits of Pacificorp's Net Metering Program, Docket No. 14-035-114, Settlement Stlpulation, p. 4 (filed on August 28,2017 , and approved in its entirety on September 29, 2017). 5 Louisiana Public Service Commission, ln re: Review of Policies Related to Customer-Owned Solar Generation and Possible Modification of the Commission's Current Net Metering Rules, Docket No. R- 33929, General Order 2009-19-2019 (November 27 , 2019). ("7.1 .4. lf the Distributed Generation Facility is transferred to another owner other than the owner on the Effective Date, Section 7.1 (Grandfathering Provision) will apply for the new owner until December 3'1, 2034.") IDAHO POWER COMPANY'S ANSWER/CROSS-PETITION TO RICHARD KLUCKHOHN'S REQUEST FOR RECONSIDERATION - 3 a shall not lose eligibility if transfened to a new owner, operator, or utility account at the original location."6 We are persuaded that it is reasonable for the full transition period to apply to generation systems installed prior to July 1, 2017 or the attainment of the trigger level, whether or not those systems are transferred to new owners. This treatment preserves the value of these systems, and ensures that the cost of system installation may be recovered on the terms expected when the system is purchased. As a result, systems that qualify to remain on their pre-existing NEM tariff for the transition period will remain eligible for the complete transition period if transferred to a new owner, operator, or utility account at the original location.T Like these states, ldaho Power believes it is logical to grandfather the system location rather than a specific customer. Grandfathering the system location simplifies the administration of grandfathering for the utility and, likewise, for the customer. Additionally, bestowing grandfathering at the system premises allows customers more opportunity to recoup their investment by retaining the economic value of the system at the location for which it was initially assessed and built. II. CRITERIA FOR GRANDFATHERING BY SYSTEM LOCATION lf the Commission grants reconsideration and applies grandfathering to the system location rather than the customer, ldaho Power recommends the following criteria to administer it 5 California Public Utilities Commission, Order lnstituting Rulemaking Regarding Policies, Procedures and Rules for the California Solar lnitiative, the Self-Generation lncentive Program and Other Distributed Generation lssues, R.12-11-005, Decision 14-03-041, p. 39 (issued April 4, 2014). 7 ld. al29 IDAHO POWER COMPANY'S ANSWER/CROSS-PETITION TO RICHARD KLUCKHOHN'S REOUEST FOR RECONSIDERATION . 4 a a a A customer who moves into a premises that has a grandfathered generation system may "inherit" the grandfathered status attached to the system. Likewise, if a customer moves from a premises with a system that has grandfathered status, that customer forfeits the grandfathered status of the system. lf the customer's generation system is removed, moved to another site, or is offline for more than six months,8 the grandfathered status of the system is forfeited. Recognizing that panels replaced during the warranty period may not exactly correspond to the original rating, the customer may increase the capacity of the grandfathered system by no more than a total of 10 percent or 1 kilowatt, whichever is greater. Preferential treatment of all grandfathered generation systems, including the 1:1 monthly kilowatt-hour offset, will end no later than December 20,2045. il!. coNcLustoN a The Company does not oppose grandfathering by system location rather than customer, finding that Mr. Kluckhohn's request is consistent with other state practices on grandfathering net metered customers. lf the Commission grants Mr. Kluckhohn's reconsideration request to grandfather system locations rather than customers, ldaho Power respectfully recommends implementing the foregoing criteria to administer it. Respectfully submitted this 16th day of January 2020. LI D, NORDST M Attorney for ldaho Power Company I This is consistent with Schedules 6 and 8, Conditions of Purchase and Sale, paragraph 9, which states: "The Customer shall notify the Company immediately if a Small On-Site Generation System is permanently removed or disabled. Permanent removal or disablement for the purposes of this Schedule is any removal or disablement of a Small On-Site Generation System lasting longer than six (6) months. Customers with permanently removed or disabled systems will be removed from service under this schedule and placed on the appropriate standard service schedule." IDAHO POWER COMPANY'S ANSWER/CROSS-PETITION TO RICHARD KLUCKHOHN'S REQUEST FOR RECONSIDERATION - 5 CERTIFICATE OF SERVICE I HEREBY CERTIFY that on the 16th day of January 2020 I served a true and correct copy of IDAHO POWER COMPANY'S ANSWER/CROSS-PETITION TO RICHARD KLUCKHOHN'S REQUEST FOR RECONSIDERATION upon the following named parties by the method indicated below, and addressed to the following: Commission Staff Edward Jewell Deputy Attorney General ldaho Public Utilities Commission 472 West Washington Street (83702) P.O. Box 83720 Boise, ldaho 837 2O-OO7 4 ldaHydro C. Tom Arkoosh ARKOOSH LAW OFFICES 802 West Bannock Street, Suite LP 103 P.O. Box 2900 Boise, ldaho 83701 ldaho Gonservation League and NW Energy Coalition Benjamin J. Otto ldaho Conservation League 710 North 6th Street Boise, ldaho 83702 NW Energy Coalition F. Diego Rivas NW Energy Coalition 1 101 8th Avenue Helena, Montana 59601 ldaho lrrigation Pumpers Association, lnc. 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 FTP SiteX Email edward.iewell ouc.idaho.oov _Hand Delivered _ U.S. Mail _Overnight Mail _FAXX FTP SiteX Email tom.arkoosh arkoosh.com tavlor. pestell arkoosh.com _Hand Delivered _ U.S. Mail _Overnight Mail _FAXX FTP SiteX Email botto@idahoconservation.orq _Hand Delivered _ U.S. Mail _Overnight Mail _FAXX FTP SiteX Email d ieoo@nwenerqv.orq IDAHO POWER COMPANY'S ANSWER/CROSS.PETITION TO RICHARD KLUCKHOHN'S REQUEST FOR RECONSIDERATION - 6 _Hand Delivered _ U.S. Mail _Overnight Mail _FAXX FTP SiteX Email elo@echohawk.com Anthony Yankel 12700 Lake Avenue, Unit 2505 Lakewood, Ohio44107 Vote Solar Briana Kobor Vote Solar 358 South 700 East, Suite 8206 Salt Lake City, Utah 84102 David Bender Earthjustice 3916 Nakoma Road Madison, Wisconsin 5371 1 Al Luna Nick Thorpe 1625 Massachusetts Avenue, NW, Suite 702 Washington, DC 20036 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 GIVENS PURSLEY LLP 601 West Bannock Street Boise, ldaho 83702 _Hand Delivered _ U.S. Mail _Overnight Mail _FAXX FTP Site x Email tonv@vankel.net _Hand Delivered_ U.S. Mail _Overnight Mail _FAXX FTP SiteX Email prestoncarter@q ivensou rslev. com IDAHO POWER COIVIPANY'S ANSWER/CROSS-PETITION TO RICHARD KLUCKHOHN'S REQUEST FOR RECONSIDERATION - 7 _Hand Delivered _ U.S. Mail _Overnight Mail_FAXX FTP SiteX Email briana@votesolar.orq _Hand Delivered _ U.S. Mail _Overnight Mail _FAXX FTP SiteX Email dbender@earthiustice.orq _Hand Delivered _ U.S. Mail _Overnight Mail _FAXX FTP SiteX Email aluna@earthiustice.orq nthorpe@earthiustice.oro _Hand Delivered _ U.S. Mail _Overnight Mail _FAXX FTP SiteX Email aqermaine@citvofboise.orq ldaho Sierra Club Kelsey Jae Nunez KELSEY JAE NUNEZ LLC 920 North Clover Drive Boise, ldaho 83703 Zack Waterman Michael Heckler ldaho Sierra Club 503 West Franklin Street Boise, ldaho 83702 PacifiCorp d/b/a Rocky Mountain Power Yvonne R. Hogle Rocky Mountain Power 1407 West North Temple, Suite 320 Salt Lake City, Utah 84116 Ted Weston Rocky Mountain Power 1407 West North Temple, Suite 330 Salt Lake City, Utah 84116 lndustrial Customers of ldaho Power Peter J. Richardson RICHARDSON ADAMS, PLLC 515 North 27th Street (83702) P,O. Box 7218 Boise, ldaho 83707 Dr. Don Reading 6070 Hill Road Boise, ldaho 83703 _Hand Delivered _ U.S. Mail _Overnight Mail _FAXX FTP SiteX Email wonne.hoqle oacificoro.com _Hand Delivered _U.S Mail _Overnight Mail _FAXX FTP SiteX Email peter@richardsonada ms.com IDAHO POWER COMPANY'S ANSWER/CROSS-PETITION TO RICHARD KLUCKHOHN'S REOUEST FOR RECONSIDERATION - 8 _Hand Delivered _ U.S. Mail _Overnight Mail _FAXX FTP SiteX Email kelsev@kelseviaen unez. com _Hand Delivered _ U.S. Mail _Overnight Mail _FAXX FTP SrteX Email zack.waterman@sierraclub.orq michael.p.heckler@omail.com _Hand Delivered _ U.S. Mail _Overnight Mail _FAXX FTP SiteX Email ted.weston@pacificorp.com _Hand Delivered -U.S. Mail _Overnight Mail _FAXX FTP SiteX Email dread inq@mindsorinq.com Micron Technology, lnc. Austin Rueschhoff Thorvald A. Nelson Holland & Hart, LLP 555 Seventeenth Street, Suite 3200 Denver, Colorado 80202 Jim Swier Micron Technology, lnc. 8000 South Federal Way Boise, ldaho 83707 lndividual Russell Schiermeier 29393 Davis Road Bruneau, ldaho 83604 lndivid ual Richard E. Kluckhohn 2564 W. Parkstone Drive Meridian, ldaho 83646 o Ki rly T , Executive Assistant IDAHO POWER COMPANY'S ANSWER/CROSS.PETITION TO RICHARD KLUCKHOHN'S REQUEST FOR RECONSIDERATION - 9 _ Hand Delivered _ U.S. Mail _ Overnight Mail _ FAXX FTP SiteX Email darueschhoff@hollandhart.com tnelson@hollandhart. com aclee@holland hart. com q lqarqa n o-a mari@ ho lland ha rt. com _ Hand Delivered _ U.S. Mail _ Overnight Mail _ FAXX FTP SiteX Email iswier@micron.com _ Hand Delivered - U.S. Mail _ Overnight Mail _ FAXX FTP SiteX Email buvhav@omail.com _ Hand Delivered _ U.S. Mail _ Overnight Mail _ FAX _ FTP SiteX Email kluckhohn@qmail. com