20191203Comments_(69).pdf

IDAHO PUBLIC
UT!LITIES COMMISSION
rPc-E-18-15
Boise, ldaho
t2l03.lre
COMMENT TORM
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IPUC, PO Box 83720, Boise, lD 83720-0074
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Click on the "Case Comment Form" link
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COMMENT FORM
Please use the space below to file a comment in this case. Add extra sheets as needed.
You may either hand this sheet to a commission staff member or mail it to:
IPUC, PO Box 83720, Boise, lD 83720-0074
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Click on the "Case Comment Form" link
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IDAHO PUBLIC
UTILITIES COMMISSION
rPc-E-18-15
Boise, ldaho
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COMMENT FORM
Please use the space below to file a comment in this case- Add extra sheets as needed.
You may either hand this sheet to a commission staff member or mail it to:
IPUC, PO Box 83720, Boise, lD 83720-0074
You may also post comments on our website
https://www.puc.idaho.gov/
Click on the "Case Comment Form" link.\
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IDAHO PUBLIC
UTITITIES COMMISSION
rPc-E-18-15
Boise, ldaho
t2/01lt9
COMMENT FORM
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You may either hand this sheet to a commission staff member or mail it to:
IPUC, PO Box83720, Boise, lD 83720-0074
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https://www.puc.ida ho.gov/
Click on the "Case Comment Form" link
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UTILITIES COMMISSION
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tPc-E-18-15
Boise, ldaho
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COMMENT FORM
Please use the space below to file a comment in this case. Add extra sheets as needed
You may either hand this sheet to a commission staff member or mail it to:
IPUC, PO Box 83720, Boise, lD 83720-0074
You may also post comments on our website
https://www.puc.idaho.gov/
Click on the "Case Comment Form" link
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Boise, ldaho
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COMMENT FORM
Please use the space below to file a comment in this case. Add extra sheets as needed
You may either hand this sheet to a commission staff member or mail it to:
IPUC, PO Box 83720, Boise, lD 83720-0074
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You may also post comments on our website:
https://www.puc.idaho.govl
Click on the "Case Comment Form" link
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IDAHO PUBLIC
UTILIT!ES COMMISS!ON
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lPc-E-18-15
Boise, ldaho
t2loslte
COMMENT FORM
Please use the space below to file a comment in this case. Add extra sheets as needed
You may either hand this sheet to a commission staff member or mail it to:
IPUC, PO Box 83720,8oise, lD 83720-0074
You may also post comments on our website
https://www.puc.ida ho.gov/
Click on the "Case Comment Form" link
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Idaho Public Utilities Commission December 3,2019
I 1331 W. Chinden Boulevard
Building 8, Suite 201-A
Boise, Idaho 83714
Re Case No. IPC-E-18-15
Study of Costs, Benefits, and Compensation of Net Excess
Energy Supplied by Customer On-Site Generation
Dear Commissioners:
We are both long-term shareholders of Idaho Power Co. stock and folks
who, in 2019, invested $34,000 (less 10,200 tax credit) in our residential
solar photovoltaic system. We are an all-electric home, and our system now
provides - 40oh of our electric power usage. During some summer months,
during daytime summer peak demand we will produce a small amount of
excess power, and we expect to be credited by the net-metering agreement at
the same rate we are charged (-S0.086/kWh), including foreseeable future
rate increases.
We point out that the residential solar investment is expensive to us, but
provides the utility company with sustainable "clean energy" without a
capital investment by Idaho Power Co. or need for more transmission
facilities.
For this simple reason, we ask that the commission reject the proposed
settlement of a reduced rate for our exported power.
Sincerelv vours.- iW i /,,"a /don
Speficer and LayllWood
421 E. Crestline Dr.
Boise, Idaho 83702
cell: 208-860-9410
email : [e-mail]
IDAHO PUBLIC
UTILITIES COMMISSION
lPc-E-18-15
Boise, ldaho
Lzl03lLe
COMMENT FORM
Please use the space below to file a comment in this case. Add extra sheets as needed.
You may either hand this sheet to a commission staff member or mail it to:
IPUC, PO Box 83720, Boise, lD 83720-0074
You may also post comments on our websit€
https://www.puc.idaho.gov/
Click on the "Case Comment Form" link
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Zip Code frL37
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December 3,2019
ldaho Public Utilities Commission,
As committed voters, consumers, ldaho Power investors, and long-time residents,
we have observed ldaho Power to have slim interest in alternate forms of energy
production. While it is fortunate that hydroelectric production is a good option
for ldaho, we have seen that threatened by a couple years of drought. We firmly
believe individual citizens can contribute significantly to the generation of
electricity for the Treasure Valley, saving costs for ldaho Power to generate it,
and helping reduce climate change.
Years ago, lP wanted to charge a huge monthly fee to solar users. Now they want
to stiff them. While they claim they are solar friendly and use solar to power
their offices, this move to reduce compensation to solar producers indicates
otherwise. On their website they proudly claim to have enough power to serve
customers through 2028. LAUGHABLE! Given the influx of people, and that 8
years from now is short range planning at best, that statement alone motivated
us to add solar. Compensation to citizens who, at their own expense, are willing
to be energy producers and support a greener community should be done fairly,
with deliberate, independent analysis.
We appreciate past efforts of the Utilities Commission to hold lP accountable and
supporting the broader view when profits clash with responsibility to maintain
this beautiful state of ldaho.
Lee and Judy Klosterman
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IDAHO PUBLIC
UTILITIES COMMISSION
lPc-E-18-15
Boise, ldaho
L2/03lLs
COMMENT FORM
Please use the space below to file a comment in this case. Add extra sheets as needed.
You may either hand this sheet to a commission staff member or mail it to:
IPUC, PO Box 83720, Boise, lD 83720-0074
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You may also post comments on our website:
https://www.puc .idaho.gov /
Click on the "Case Comment Form" link
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UTILITIES COMMISSION
tPc-E-18-15
Boise, ldaho
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COMMENT FORM
Please use the space below to file a comment in this case. Add extra sheets as needed
You may either hand this sheet to a commission staff member or mail it to:
IPUC, PO Box 83720, Boise, lD 83720-0074
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https://www.puc.ida ho.govl
Click on the "Case Comment Form" link
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lPc-E-18-15
Boise, ldaho
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COMMENT FORM
Please use the space below to file a comment in this case. Add extra sheets as needed
You may either hand this sheet to a commission staff member or mail it to:
IPUC, PO Box 83720, Boise, lD 83720-0074
You may also post comments on our website:
https://www.puc.idaho.gov/
Click on the "Case Comment Form" link
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UTILITIES COMMISSION
tPc-E-18-15
Boise, ldaho
L2/03lts
COMMENT FORM
Please use the space below to file a comment in this case. Add extra sheets as needed
You may either hand this sheet to a commission staff member or mail it to:
IPUC, PO Box 83720, Boise, lD 83720-0074
You may also post comments on our website:
https://www.puc,idaho.govl
Click on the "Case Comment Form" link
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Boise, ldaho
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COMMENT FORM
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You may either hand this sheet to a commission staff member or mail it to:
IPUC, PO Box 83720, Boise, lD 83720-0074
You may also post comments on our website:
https://www.puc.idaho.gov/
Click on the "Case Comment Form" link
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IDAHO PUBLIC
UTILITIES COMMISSION
tPc-E-18-15
Boise, ldaho
t2l03lt9
COMMENT FORM
Please use the space below to file a comment in this case. Add extra sheets as needed
You may either hand this sheet to a commission staff member or mail it to:
IPUC, PO Box 83720, Boise, lD 83720-0074
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https://www.puc. idaho.govl
Click on the "Case Comment Form" link
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tPc-E-18-15
Boise, ldaho
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You may also post comments on our website
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Click on the "Case Comment Form" link
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IPUC, PO Box 83720, Boise, lD 83720-0074
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COMMENT FORM
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IPUC, PO Box 83720, Boise, lD 83720-0074
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UTILITIES COMMISSION
tPc-E-18-15
Boise, ldaho
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COMMENT FORM
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IPUC, PO Box 83720, Boise, lD 83720-0074
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Click on the "Case Comment Form" link
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Boise, ldaho
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COMMENT FORM
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IPUC, PO Box 83720, Boise, lD 83720-0074
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Click on the "Case Comment Form" link
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COMMENT FORM
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IPUC, PO Box 83720, Boise, lD 83720-007 4
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IPUC, PO Box 83720, Boise, lD 83120-007 4
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IPUC, PO Box 83720, Boise, lD 83720-0074
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IPUC, PO Box 83720, Boise, lD 83720-0074
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Click on the "Case Comment Form" link
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IPUC, PO Box 83720, Boise, lD 83720-007 4
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Click on the "Case Comment Form" link
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Click on the "Case Comment Form" link
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Click on the "Case Comment Form" link
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IPUC, PO Box 83720, Boise, lD 83720-007 4
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Click on the "Case Comment Form" linkrtt\S \-s\
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IPUC, PO Box 83720, Boise, lD 81720-OO7 4
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lPc-E-18-15
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COMMENT FORM
Please use the space below to file a comment in this case. Add extra sheets as needed
You may either hand this sheet to a commission staff member or mail it to:
IPUC, PO Box 83720, Boise, lD 83720-007 4
You may also post comments on our website:
https://www.puc.idaho.gov/
Click on the "Case Comment Form" link
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Please use the space below to file a comment in this case. Add extra sheets as needed
You may either hand this sheet to a commission staff member or mail it to:
IPUC, PO Box 83720, Boise, lD 83720-0074
You may also post comments on our website
https;//www.puc.idaho.gov/
Click on the "Case Comment Form" link
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You may either hand this sheet to a commission staff member or mail it to:
IPUC, PO Box 83720, Boise, lD 83720-0074
You may also post comments on our website:
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Click on the "Case Comment Form" link
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Please use the space below to file a comment in this case. Add extra sheets as needed
You may either hand this sheet to a commission staff member or mail it to:
IPUC, PO gox83720, Boise, lD 83720-0074
You may also post comments on our website:
https://www.puc.ida ho,gov/
Click on the "Case Comment Form" link
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UTILITIES COMMISSION
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Boise, ldaho
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COMMENT FORM
Please use the space below to file a comment in this case. Add extra sheets as needed.
You may either hand this sheet to a commission staff member or mail at to:
IPUC, PO Box 83720, Boise, lD 83720-0074
You may also post comments on our website:
https://www.puc.idaho.gov/
Click on the "Case Comment Form" link
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Boise, ldaho
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COMMENT FORM
Please use the space below to file a comment in this case. Add extra sheets as needed
You may either hand this sheet to a commission staff member or mail it to:
IPUC, PO Box 83720, Boise, lD 83720-0074
You may also post comments on our website:
https://www.puc.ida ho.gov/
Click on the "Case Comment Form" link
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lPc-E-18-15
Boise, ldaho
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COMMENT FORM
Please use the space below to file a comment in this case. Add extra sheets as needed.
You may either hand this sheet to a commission staff member or mail it to:
IPUC, PO Box 83720, Boise, lD 83720-0074
You may also post comments on our website:
https://www.puc. idaho.gov/
Click on the "Case Comment Form" link
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UTIL!T!ES COMMISSTON
tPc-E-18-15
Boise, ldaho
t2l03/L9
You may also post comments on our website:
https://www.puc.idaho.govl
Click on the "Case Comment Form" link
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COMMENT FORM
Please use the space below to file a comment in this case. Add extra sheets as needed.
You may either hand this sheet to a commission staff member or mail it to:
IPUC, PO Box 83720, Boise, lD 83720-0074
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IDAHO PUBTIC
UTILITIES COMMISSION
lPc-E-18-15
8oise, ldaho
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COMMENT FORM
Please use the space below to file a comment in this case. Add extra sheets as needed.
You may either hand this sheet to a commission staff member or mail it to:
IPUC, PO Box 83720, Boise, lD 83720-007 4
You may also post comments on our website:
https://www.puc.idaho.gov/
Click on the "Case Comment Form" link
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Please use the space below to file a comment in this case. Add extra sheets as needed.
You may either hand this sheet to a commission staff member or mail it to:
IPUC, PO Box 83720, 8oise, lD 83720-0074
You may also post comments on our website:
https://www.puc, idaho.govl
Click on the "Case Comment Form" link
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UTILITIES COMMISSION
tPc-E-18-15
Boise, ldaho
Lzloslts
COMMENT FORM
Please use the space below to file a comment in this case. Add extra sheets as needed
You may either hand this sheet to a commission staff member or mail it to:
IPUC, PO Box83720, Boise, lD 83720-0074
You may also post comments on our website
https://www.puc.ida ho.gov/
Click on the "Case Comment Form" link
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UTILlTIES COMMISSION
tPc-E-18-15
Boise, ldaho
12loslLs
COMMENT FORM
Please use the space below to file a comment in this case. Add extra sheets as needed
You may either hand this sheet to a commission staff member or mail it to:
IPUC, PO Box 83720, Boise, lD 83720-0074
You may also post comments on our website
https://www.puc.ida ho.gov/
Click on the "Case Comment Form" link
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Oral Testimony to IPUC 120319 case IPC-E-18-15
My name is Terry Maret and a resident at 4083 Argonaut in Ada County. I have been an ldaho
Power customer for over 30 years.
I have submitted written comments regarding the ldaho Power settlement proposal and would
like to take this opportunity to emphasize a few important highlights of that letter.
We installed a roof-top 9 kW solar system back in the spring of 2017.This was a significant
long-term (25yr) capital investment for our family based on a design of daily net metering.
As designed, it will take about 12 years before we realize any return on our investment. The
proposed hourly rate metering and 5070 reduction in net metering credit will most certainly
extend the number of years until we see a return, if any, on our investment.
ldaho Power did not help fund any of our aolar installation so why should they be allowed
to change the rules to profit off our investment? An expected increase in home value was
also a major factor in our solar investment decision. ln order to protect these investments,
systems should be grandfathered along with the meter number attached to the residence so
when selling the home net metering benefits will be realized by new home owners.
Where is the comprehensive study of cost and benefits of on-site generation that ldaho
Power was ordered to produce? Until such study has been completed and evaluated by all
affected parties, the settlement proposal is arbitrary and capricious.
ldaho Power's proposal is unfairly singling out solar customers which only make up less
than 1% of their 560,000 total customers. ldaho Power contends that because net-metering
solar customers reduce the number of kilowatt-hours they purchase from the utility they avoid
paying their fair share of fixed costs. Net-metering solar customers provide power to their
neighbors and can help reduce the need for expensive transmission and distribution
infrastructure necessary to move electricity from power plants that may be hundreds of miles
away. This is especially true during summer when peak power demand is highest, which
coincides with peak output from solar systems that can supplement our local power needs.
Every ldaho family, school and businees ahould have the right to go solar on thelr own
property if they so choose, and they deserve fair net metering compensation and
predictability from their utllity for making that inv€tment. This settlement clearly indicates
that ldaho power is attempting to discourage rooftop solar and monopolize profits. Traditional
ways of doing business will certainly not address climate change impacts. lnstitutions and
utilities should be encouraging the development of altemative energy sources and not penalizing
those who feel we can do better to sustain our planet and way of life.
ldaho Power has a goa! of 100% clean energy by 2045...so why are they attempting to
penallze thoae who are doing their fair share to reach such a goal? For your information,
solar now employs more people in the U.S. electric power sector than oil, coal and gas
combined. ldaho needs to pass legislation to offer more incentives to encourage solar systems
that will provide new job opportunities. The settlement proposals willjeopardize this growing
industry in ldaho and cast a shadow of uncertainty in the marketplace. What will happen to
warranty work for existing solar systems if solar companies leave the Treasure Valley because
of lack ofjobs.
IDAHO PUBLIC
UTILITIES COMMISSION
rPc-E-18-1S
Boise, ldaho
Lzl03l19
COMMENT FORM
Please use the space below to file a comment in this case. Add extra sheets as needed
You may either hand this sheet to a commission staff member or mail it to:
IPUC, PO Box 83720, Boise, lD 83720-0074
You may also post comments on our website
https://www.puc.idaho.gov/
Click on the "Case Comment Form" link
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IDAHO PUBLIC
UT!LITIES COMMISS!ON
tPc-E-18-15
Boise, ldaho
t2l03lt9
You may also post comments on our website:
https://www.puc.ida ho.gov/
Click on the "Case Comment Form" link
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COMMENT IORM
Please use the space below to file a comment in this case. Add extra sheets as needed.
You may either hand this sheet to a commission staff member or mail it to:
IPUC, PO Box 83720, Boise, lD 83720-0074
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UTILITIES COMMISSION
tPc-E-18-15
Boise, ldaho
12l03lL9
COMMENT FORM
Please use the space below to file a comment in this case. Add extra sheets as needed
You may either hand this sheet to a commission staff member or mail it to:
IPUC, PO Box 83720, Boise, lD 83720-007 4
You may also post comments on our website
https://www.puc.ida ho.gov/
Click on the "Case Comment Form" link/t L --un )t4/-;-
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IDAHO PUBLIC
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tPc-E-18-15
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.leff Fereday and Kay Hummel
420 E. Crestline Drive
Boise. ID 83702
December 2,2019
ldaho Public Utilities Commission
1 133 I W. Chinden Boulevard
Building 8, Suite 201-A
Boise, Idaho 83714
Re: Case No. IPC-E-18-15
Study of Costs, Benefits, and Compensation of Net Excess Energy
Supplied by Customer On-Site Generation
Dear Commissioners:
We respectfully request that the Commission not adopt or approve the
October 11,2019 Settlement Agreement entered by IPCo and others (the
"Settlement"), not impose the Settlement's proposed new rate structure applicable
to DG resources, and hold the matter in abeyance pending further study. Rooftop
solar in Idaho is in its infancy, and this proposal by Idaho Power Company likely
will throttle it. Rooltop solar today has been adopted by some 5,000 of the
lThe total cost ofthe system, which was paid to AltEneryy, lnc. as supplier and installer, was $28,707,00. With the
federal tax credit and a state tax deduction, the cost to us (after a five-year amortization) will be approximately
$ 18.000. In evaluating the costs of IPCo's proposal, it would appear that the higher number would be appropriate
because that is what went into Idaho's economy. [n evaluating the cost to our investment posture, the lower number.
adjusted for the timing oftax savings, would be appropriate.
1
We are residential customers of Idaho Power Company ("IPCo" or the
"Company). Beginning in2016, with additional panels and a new inverter in 2018,
we have invested over $28,000 in a solar photovoltaic system at our Boise home.l
The Company's proposed changes to its net metering program in this proceeding
would substantially undercut our expected retum on this investment and, we
believe, constitute an unjustified windfall to the Company and its shareholders. But
beyond that, and more important as a public policy matter, is the fact that the
Company's proposal would have a severe chilling effect on the development in
Idaho of distributed solar and other customer-owned distributed generation C'DG")
resources.
Company's customers-about 0.01% of its customer base-and it accounts for a
miniscule portion of the Company's installed capacity. The eff'ect, flnancial or
otherwise, of private rooftop solar on the other 99.99 percent ofratepayers cannot
be significant. On the other hand, distributed solar is a step in the right direction for
the environment and, we submit, for IPCo's customer base generally; it certainly
carries part of the Ioad toward the Company's "100% clean energy" aspiration. The
Commission should take no steps to thwart the development of customer-
sponsored rooftop solar in Idaho.
DG's effect on other ratepayers is typically based on the argument that the
revenues they pay for the electricity they still purchase from the utility may not be
covering an adequate share of fixed costs, such as transmission-in other words,
"that net metering customers are not purchasing sufficient kWh to cover fixed
costs," and that "an additional measure is needed to prevent a cost shift from
occurring."2 Presumably, this is IPCo's argument, even though the Company has
not yet made a case for this, much less a convincing one. In any event, studies by
the Brookings Institution and others have concluded that such impacts become
meaningful only when the penetration of rooftop solar approaches an installed
capacity ofaround ten percent. In Idaho, the current number reportedly is no more
than about 3.5 percent. As stated in an exhaustive analysis ofthis issue by the
economists at Lawrence Berkeley Lab, "for the overwhelming majority of utilities,
current PV penetration levels are far too low to result in any discemible effect on
retail electricity prices, even under the most pessimistic assumptions about the
value of solar and generous assumptions about compensation provided to solar
customers (e.g., full NEM [net metering] with volumetric rates)."1
Furthermore, even if DG in the Company's service area were causing
increased costs to other ratepayers, any rate structure change to address this should
compensate these ratepayers for these exact costs, not the Company's shareholders.
There is no indication that the structure proposed here, which plainly would
penalize the solar power generators to the point ofbeing confiscatory of their
investments, would be tailored to compensate for such effects and would not
simply enrich shareholders.
We contend that neither the Company nor the Commission has enough
information yet to make such a momentous decision. IPCo has not completed the
2https:/,'wwrv.infrastructureusa.ors,'lyp:gottqr@Dbadt2 Ol4/|2!ffp?Ol4finalreport- I4 I I 13033 126-conversion-
1
sat€ot- l.pdf
3http:i/eta-oublications.lbl.govisites/default/files/lbnl- 1007060.pd f
study the Commission ordered, and has not released any analysis it may have done
for public review and comment. In sum, there is no need to rush into this decision,
especially absent a thorough cost-benefit study such as the one the Company is
obligated to produce. We believe that any analysis the Company or the
Commission ultimately engages in on this subject should be available for review
and should cover all relevant issues, such as those set forth below.
To summarize our central requests, we urge the Commission to:
I ) reject the proposed Settlement and hold this matter in abeyance;
2) order the Company to complete and make available to the public the
study specified in the Commission's June 1, 2018 Order 34604, Case No.
IPC-E-17-13, which study is to evaluate the costs and benefits, both to
the Company and to other customers, of net metering relative to DG, and
particularly residential on-site generation;
3) ensure that the study includes, in addition to the above, at least the
following analyses:
a. the value of DG over the next 25 years, to the Company and its
ratepayers, in helping to meet Company's stated goal of achieving
100% "clean energy" by 2045;a
c. the actual transmission and other fixed costs incurred by the
Company or ratepayers arising from DG-produced electricity;
4The Agreement expressly avoids assigning any "environrnental benefit" to rooftop solar. This is unacceptable,
particularly where the Company itself claims to be putting resources into clean energy, presumably to gain their
environmental benefils. Existing DG resources should not be hamstrung, and future DG resources effectively
blocked. by this proposed nerv rate schedule while the Company supposedly figures out how to bring on line cost-
effective clean energy resources. These clean energy resources are here today. delivering an environmental benefit
that the Company, we contend, should be compelled to value in this process.
b. the current value of the investment in generating plant represented
by all the DG involved in the Company's net metering plan, and the
Company's cost of replicating this amount of installed capacity
with solar or other energy sources;
3
d. the relative firmness, and the relative interruptibility, of DG in the
Company's system as compared to the energy from generation
sources from which IPCo might be able to purchase on the retail or
wholesale rnarkets;
f. the benefit to the Company arising from those DG owners who
annually produce and provide to IPCo more electrical power than
they consume-thus producing excess electrical energy that cannot
be used by the producer and for which, under the present system,
there will be no credit or compensation from IPCo-including an
explanation of whether this benefit will accrue to other ratepayers
or to Company shareholders, and in what amounts;
g. the revenues that will accrue to the Company from reducing the net
metering credit by some fifty percent, including an explanation of
whether these revenues will accrue to the benefit other ratepayers or
to Company shareholders, and in what amounts;
h. an explication of the reasons fbr, and implications of, calculating
the net metering credit on an hourly basis rather than a monthly
basis;s
losses to investment-backed expectations accruing to existing DG
owners who currently provide net metered electricity to IPCo
should their net meter credits be reduced to approximately 50% of
what they now are;
5The Agreement calls for "net hourly billing" as follows: "At the end of each hour, consumption and exports within
the hour will be netted and net hourly exports will be compensated al the Export Credit Rate," which is proposed to
be calculated by a method involving such elements as the avoided energy, capacity and transmission and distribution
costs; avoided line losses. The Export Credit Rate does not factor in environmental benefits or integration costs. The
Agreement also states that "Schedule 6 and Schedule 8 customers will be compensated for net hourly exported
energy at the Blended Base Energy Rate tbr their respective customer classes." The Blended Base Energy Rate is
described as "the total reyenue to be collected through the base energy charges for each respective class divided by
thc total forecasted annual enerry for each respective class." These calculations are difficult to parse, and we urge
the Commission to insist that they be made clear with specific examples and formulae. And above all, we need to
know how these rates and the hourly billing schedule will affect the economics of rooftop solar. tPCo should be
required to answer this question fully and fairly.
4
I
e. the higher costs, if any, borne by non-DG lPCo customers as a
result of having DG systems producing power for the Company's
grid under the current, one-for-one net metering arrangement;
j. the economic impact, including the loss of commerce and jobs in
the Company's service area, of a diminished solar equipment sales
and installation industry that will result should the Company be
permitted to reduce net metering credits by some fifty percent; and
k. the economic impact on home values if the net-metering credit now
in place, and therefore the current value ofa rooftop solar system,
cannot be passed on to a purchaser of the home.
The public, including lPCo's ratepayers, will benefit from any meaningful
effort to reduce carbon emissions and speed the transition to clean energy, The
effort to make this transition is in the public interest, which is another reason the
Commission should not adopt the Settlement and, before making a decision, insist
on a full display of ail costs and all benefits of net metering and DG energy
production (including, without limitation, each of the above items). Uncertainties
should be resolved in favor of encouraging development ofsolar and other carbon-
free energy sources. The current proposal, particularly the idea that IPCo would
begin the process ofsubstantially devaluing credits, is going in the opposite
direction.
While our home's full system has been functioning for just over a year, it
appears we will be generating and sending into the grid slightly more electricity
than our annual consumption. We designed it to produce enough to cover all ofour
electrical demand, but recent upgrades to our air conditioning system and other
efficiency measures have contributed to this situation. In any event, it stands to
reason that at least some residential solar systems that are designed to meet all of
the home's annual electrical demand in fact will, like ours, produce more than
100% every year, thus generating credits we never actually use.
We are not asking the Commission to compensate rooftop system owners for
this unusable, extra energy credit (even though the Company receives this energy
for free, with little or no transmission cost6 and sells it at retail rates); their decision
to aim for a"100oh system" was their choice, taking a chance that they would
overshoot somewhat. But we are asking that you address this situation and devise a
way to calculate the revenue IPCo is eaming from this overage represented by
unusable credits. Such a benefit should be factored into the overall analysis ofthe
6lt is our understanding that elecricity pushed to the grid from a home's photovoltaic system is used at the nearest
location needing supply-that is, the neighboring homes.
5
impact of rooftop solar on the Company and its customers, and its financial benefit
should accrue to other customers.
The Company's approach dodges other important questions, such as the
actual fixed costs (if any) accruing to the Company or other customers involved in
receiving otherwise fiee electrical supply from private solar systems, the revenues
the Company receives from selling excess power from these systems, and the role
these systems play in reducing both generating and fixed costs associated with
meeting peak summer demand. Idaho Power's answer to whatever problem it
perceives here is to ask this Commission to impose conditions that appear to be a
windfall to lPCo and its shareholders while delivering a crushing blow to future
development of distributed energy sources. There is no faimess or public interest in
this approach. Before entering any order in this matter, the Commission should
ensure there are answers to such questions.
IPCo began this proceeding by asking the Commission to establish a
separate rate class for net-metered customers, ostensibly to address the question of
unfair cross-subsidy. The Commission obliged, and now we see what the Company
wants to do with this customer class, which is to reduce its relevance essentially to
extinction-to make the installation of rooftop solar so outlandishly expensive that
few, if any, IPCo customers will opt for it in the future. Such a policy is not in the
public interest or the interests of other Idaho Power customers. Nor, of course, is it
consistent with the Company's stated goal to become a100Yo "clean energy"
enterprise in the next twenty-five years.
We recognize that the Company likely sees this as a simple rate-making
matter, in which a utility is seeking to protect the rate base on which it earns a
return; private rooftop solar systems are not in its rate base. However, we ask the
Commission to consider the impact that adopting the Company's position will have
on the continued development of solar energy in our state. Here we have customers
making substantial investments that will carry nowhere near the rate of retum on
investment the Company enjoys as a matter of law and IPUC policy. We believe
most of these consumers made these investments in significant part because they
see them as a small but meaningful step in what should, and we hope will, become
a nationwide effort to transition from carbon emitting energy sources. We ask that
the Commission initiate a process to classily DG in a way that does not discourage
solar power development. It may be that this will entail a new way of structuring
the relationship between the utility and its customers, or a new way of evaluating a
utility's rate base, or its rate of retum. But surely there is a way to allow the utility
6
to remain viable while still encouraging----or at least not undermining-the
emerging energy sector consisting of voluntary, customer-financed rooftop solar.
We ask the Commission to deny the Settlement and direct IPCo to complete
a rigorous and transparent analysis, which includes input from all stakeholders, to
address the issue ofwhat the Company should pay for excess power from rooftop
solar, and how independently-financed solar can be encouraged to be a part ofthe
Company's energy production portfolio.
Respectfully submitted,
JeffFereday Kay ummel
cc: Govemor Brad Little
7
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