20200110Petition for Reconsideration.pdf

Benjamin J. otto (sB No. 8292)
710 N 6tl' Street
Boise, ID 83701
Ph: [phone] x t2
Fa.x: [phone]
[e-mail]
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
RECEIVED
0?0JiH l0 pfi tr t6
-:i.
IN THE MATTER OF THE )
APPLICATION OF IDAHO POWER )
COMPANYTOSTUDYTHE COSTS, )
BENEFITS,ANDCOMPENSATION )
OFNET EXCESSENERGY )SUPPLIEDBYCUSTOMERON- )
SITE GENERATION )
CASE NO. IPC-E-I8.15
IDAHO CONSERVATION LEACUE
AND VOTE SOLAR
PETITION FOR
RECONSIDE,RATION
The Idaho Conservation League (ICL) and Vote Solar respectfully request the
Commission reconsider the eligibility date for a distributed energy system owner to remain on
existing Schedules 6 and 8. As the Commission recognized, the existing Schedules 6 and 8
dictate the design of distributed energy systems in which customers invest substantial sums.r The
Commission found "the reasonableness of the payback period for on-site generation is extremely
sensitive to program changes."2 But while the Commission did not find the current Schedules 6
and 8 were unjust or unfair, the Commission did explain "programmatic changes are at least
being strongly contemplated" and outlined a series of further proceedings to examine the
distributed energy program.3
We appreciate the Commission recognizing that it has legal authority to distinguish
between existing and neu' customers based on "the customers' reasonable expectations when
making significant personal investments in onsite-generation systems."a This sound reasoning
also recognizes that customers make decisions based on the facts known to them at the time,
including the structures and rates that comprise the net metering program. Our concern is that
I Order No 34509 at 5.
2 order No 34509 at 12.
r order No 34509 at l2- 13.
' order No 34509 at 10.
January 10,2020
Attomey for the Idaho Conservation League
IPC-E-18-15
ICL-VS Petition to Reconsider
l
closing eligibility for Schedules 6 and 8 as ofDecember 20, 2019, without having a successor
program in place, does not allow customers to know the "facts" ofwhat structures and rates will
be at the time they make a decision whether to invest in distributed generation. That creates
untenable uncertainty for customers, cannot make any informed projections by which to design a
system. All they know is that the ultimate program will likely not reJlect either the current net
metering program or the rejected settlement agreement. There is no indication of what the
program wil/ look like.
Following the Commission's decision, the only economically reasonable option for
customers is to make no investments unless and until a successor program is in place. That
benefits the utility-which sees customer-owned generation as a competitive threat-at the
expense of customers. Thus, the Commission's decision to end Schedule 6 and 8 now, instead of
when new rates are applied, also provides the perverse incentive to the utility to delay the
required study ofcosts and benefits, development ofnew rates, and delay filing a generate rate
case in order to use the interim uncertainty placed on potential distributed generation customers
to suppress customer adoption. Moreover, suppressing customer adoption of distributed
generation pending studies and new rates undermines the broad public support and appetite for
more distributed generation in Idaho. As the Commission admonished the parties in Order
34509: "The Company, Commission Staff, and all other stakeholders to the case would do well
to listen to and understand the public sentiment regarding the importance of distributed on-site
generation to Idaho Power's customers."5 The Commission should not undermine customers'
ability to make informed decisions by cutting them oflfrom one program before the replacement
program is in place.
We are also concemed this level of uncertainty makes it very difficult for distributed
energy system providers to give accurate inlormation to the public. As the Commission
recognizes, Idaho Code 48-1805 requires distributed energy system providers to make various
disclosures to potential customers. These disclosures about potential system designs, costs, and
paybacks require a billing system in place. Now with eligibility for existing Schedules 6 and 8
effectively closed, and no successor program in place, providers are unable to make informed
disclosures. That deprives the public ofthe information the Legislature sought to provide them
through ldaho Code 48- l 805.
5 Order No 34509 at 10.
IPC-E- 18- l s
ICL-VS Petition to Rcconsider January 10, 2020
2
The simplest solution to this untenable level ofuncertainty and attendant inability of
customers to make informed investments in distributed generation is to set the eligibility date for
remaining in Schedules 6 and 8 at such a time that the Commission approves a successor
program. Using the date of any future program aligns with the Commission's legal authority to
distinguish customers based on their reasonable expectations when considering an investrnent
and incentivizes the utility to work towards timely resolution of the issues. Without knowing the
tariff structure and rates that dictate the value of their investment, a customer cannot form a
reasonable expectation about whether distributed energy is for them. Setting the eligibility date
to when the Commission approves a new program also respects Idahoans clearly expressed
desires to continue to invest their own money into their own distributed energy systems. It is
unreasonable to expect a customer to make a decision without knowing what the future holds or
when it will be decided. Establishing the approval ofa new program as the eligibility date also
provides a clear incentive for all stakeholders to work effrciently and transparently towards a
future policy framework.
Because it aligns with the Commission's legal authority, allows Idahoans to make
decisions about personal investments, and incents efficient resolution ofthe larger issues, we
encourage the Commission to establish the eligibility date for remaining on Schedules 6 and 8 as
the date upon which the Commission approves a successor program.
Respectfully submitted this 101h day ofJanuary 2020,6-*+--
IPC-E- l8- 15
ICL-VS Petition to Reconsider
Benjamin J. Otto
Idaho Conservation League
Local Council - Vote Solar
January 10,2020
3
I hereby certiry that on this 101h day ol January 2020 I delivered true and correct copies of
the foregoing PETITION TO RECONSIDER to the following via the me-thod of service noted:E" 4--
Hand Deliven lvlail:
Diane Hanian
Commission Secretary (Original and seven copies provided)
ldaho Public Utilities Commission
11331 W. Chinden Blvd
Building 8, Suite 201-A.
Boise, ID 93714
Electronic Mail Onlv:
IPUC
Ed Jewell
Deputy Attorney General
Idaho Public Utilities Commission
Edward j [e-mail]. gov
Beniamin J. Otto
RoclE Mountain Power
Yvonne R. Hogle
Ted Weston
Yvonne.hogle@pacifi corp.com
Ted.weston@pacifi corp.com
Vote Solar
Briana Kobor, Vote Solar
[e-mail]
David Bender, Earthjustice
dbender@earthj ustice.org
Al Luna, Earthj ustice
aluna@earthj ustice.org
Nick Thorpe, Earthj ustice
nthorpe@earthj ustice.org
City of Boise
Abigail R. Germaine
Deputy City Attomey
Boise City's Attorney's Office
[e-mail]
Idaho Sierra Club
Kelsey Jae Nunez
Kelsey Jae Nunez LLC
[e-mail]
January 10,2020
Idaho Power
Lisa D. Nordstrom
Timothy E. Tatum
Connie Aschenbrenner
[e-mail]
[e-mail]
[e-mail]
dockets@idahopo\ ,er.com
Idaho lrrigation Pumpers Association
Eric L. Olsen
Echo Hawk & Olsen PLLC
[e-mail]
Anthony Yankle
tony@ynake[.net
IDAHYDRO
C. Tom Arkoosh
Arkoosh Law Offices
[e-mail]
[e-mail]
IPC-E- l8- l5
ICL and Vote Solar
Certificate of Service
CERTIFICATE OF SERVICE
Zack Waterman, Siena Club
Mike Heckler, Sierra Club
[e-mail]
M ic heal.p. hec kler[g] gmai l. co m
Idaho Clean Energt Association
Preston N. Carter
Givens Pursley LLP
prestoncarter@gi venspursely.com
Industlial Customers of ldaho Power
Peter J. Richardson
Richardson Adams, PLLC
[e-mail]
Dr. Don Reading
[e-mail]
Micron Technolopg,,, Inc.
Austin Rueschholl
Thon'ald A. Nelson
Holland & Hart, LLP
[e-mail]
[e-mail]
[e-mail]
[e-mail]
Jim Swier. Micron
j su'[e-mail]
Intlividual
Russell Schiermeier
[e-mail]
IPC-E-18-15
ICL and Vote Solar
Certificate of Service January 10, 2020