20220512Comments.pdf

IPC-E-21-40 1 May 12, 2022
ICL COMMENTS
Benjamin J. Otto (ISB No. 8292)
Emma E. Sperry
710 N. 6th Street
Boise, ID 83701
Ph: [phone] x 112
[e-mail]
[e-mail]

Attorneys for the Idaho Conservation League

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF IDAHO
POWER COMPANY’S
APPLICATION TO EXPAND
OPTIONAL CUSTOMER CLEAN
ENERGY OPTIONS THROUGH THE
CLEAN ENERGY YOUR WAY
PROGRAM
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)
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CASE NO. IPC-E-21-40

IDAHO CONSERVATION LEAGUE

COMMENTS

The Idaho Conservation League (ICL) submits the following formal comments regarding
Idaho Power’s proposed Clean Energy Your Way (CEYW) Program. ICL submits these
comments pursuant to Rule 203 of the Commission’s Rules of Procedure1 and pursuant to the
Notice of Modified Procedure2 issued in this case by the Commission on December 21, 2021.
ICL appreciates the steps that Idaho Power has taken to improve clean energy options for
its customers. However, Idaho Power’s proposal misses key opportunities to increase distributed
and clean generation resources which will improve the resiliency of Idaho’s electric grid, save
customers money, and accelerate the clean energy transition. In addition, we are concerned that
Idaho Power’s Clean Energy Your Way Subscription proposal (CEYW-Subscription) does not
provide sufficient access to local, clean energy for all customers, regardless of wealth. We
outline these concerns in Part I of these comments.

1 IDAPA 31.01.01.203
2 Notice of Modified Procedure: Order No. 35266, Case No. IPC-E-21-32, 1-2 (Dec. 21, 2021).
RECEIVED
2022 May 12, PM 2:53
IDAHO PUBLIC
UTILITIES COMMISSION
IPC-E-21-40 2 May 12, 2022
ICL COMMENTS
While we support the efforts that the utility and stakeholders have committed to the
development of the CEYW program, and we do not ask the Commission to deny Idaho Power’s
application, we do ask that the Commission direct Idaho Power to make modifications to the
CEYW-Subscription program that will protect customer-participants before approving the
program. We also ask the Commission to direct Idaho Power to begin working with community
stakeholders to develop a community owned solar program that will address the issues we raise
in Part I. A framework for this program is outlined in Part II.
I. ICL’s Concerns with Idaho Power’s Clean Energy Your Way Proposal
A. Idaho Power’s CEYW proposal does not go far enough to accelerate the
construction of distributed generation.
Distributed generation, or the siting of renewable resources within communities and close
to the end-users of the power, is critical for the reliability and resiliency of our electric grid.
Distributed generation produces environmental benefits, reduces line losses from long-distance
power transmission, and protects communities against blackouts in the case of transmission line
failure.3 In addition, a recent report by Vibrant Clean Energy found that while increasing
distributed energy buildout raises overall costs in the short term, high levels of distributed
generation result in significant cost savings to both customers and utilities in the long term.4
Distributed generation also helps reduce demand peak variability which both lowers costs to the
grid overall and increases the profitability and feasibility of large, utility-scale renewable energy
projects.5

3 Denholm, P., et al., Methods for Analyzing the Benefits and Costs of Distributed Photovoltaic Generation to the
U.S. Electric Utility System, Nat’l Renewable Energy Lab., 3-4 (Sep. 2014).
4 Clack, C., et al., Why Local Solar for All Costs Less: A New Roadmap for the Lowest Cost Grid, Vibrant Clean
Energy, 33 (Dec. 2020).
5 Id. at 48.
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ICL COMMENTS
Idaho Power’s CEYW proposal may result in the development of some distributed
resources, particularly for large customers under the Construction program, but it is unlikely to
result in distributed generation for residential communities. Idaho Power implied in their
application materials that the Subscription program will likely only build one new resource in the
near future, and there is no information about the siting location of this resource.6 Even if the
resource is sited within or near a community, customers who are not in the vicinity of that
resource will not receive the benefits of distributed generation. With only one (or possibly two)
new resources, the program will also not result in rapid deployment of distributed generation
resources.
B. Idaho Power’s CEYW-Subscription proposal will not result in a rapid deployment
of clean energy resources.
In setting its goal of 100% clean energy by 2045, Idaho Power recognizes that a transition
to clean energy is critical for our economy, health, and environment. Although the CEYW-
Subscription proposal could play a significant role in helping Idaho Power achieve its 2045 goal
quickly, Idaho Power stated in response to discovery that the program will likely not be
operational until the end of 2024, a full three years after it was first proposed.7 If Idaho Power
wishes to add additional renewable resources to the program, we can anticipate similarly
prolonged timelines. ICL fully supports the regulatory process that Idaho Power must follow in
order to construct new generation resources. However, new renewable generation can be
implemented more quickly if it is built at a smaller scale, and it is not owned or controlled by the
utility. As described more fully below, ICL asks the Commission and Idaho Power to begin

6 Application, Case No. IPC-E-21-41, 12 (Dec. 2, 2021).
7 Idaho Power Company’s Response to Second Production Request of the Commission Staff to Idaho Power
Company, Case No. IPC-E-21-40, 21 (Mar. 4, 2022).
IPC-E-21-40 4 May 12, 2022
ICL COMMENTS
development of a program mechanism by which customers can own and control small-scale
subscription solar in order to increase the speed at which we add new renewable generation to
the grid.
C. Idaho Power’s CEYW-Subscription proposal will generate unnecessary and
uncertain costs to participants.

In response to discovery requests, Idaho Power stated that the Program Credit for
participation in the CEYW-Subscription program cannot exceed the cost to participate in the
program, and that there is “no scenario in which the cost of a dedicated Subscription resource
will be less than the value that the resource brings to Idaho Power’s system.”8 However, there is
increasing evidence that renewable energy generation is comparable in cost or cheaper than other
forms of energy production (see Figure 1 below).9 In addition, Idaho Power’s most recent IRP
plans to build significantly more solar in the next 20 years, indicating that solar is increasingly
financially beneficial for the utility.10 It is unclear why the new subscription resource could never
provide the utility with more value than the cost of the program, or why Idaho Power is
expecting customers to pay additional money for access to renewable generation that is already
in the utility’s best interest to build.

8 Idaho Power Response to First Production Request of the Idaho Conservation League, Case No. IPC-E-21-40, 7
(May 10, 2022).
9 Idaho Power, 2021 Integrated Resource Plan: Appendix C, 46 (Dec. 2021).
10 Idaho Power, 2021 Integrated Resource Plan, 152 (Dec. 2021).
IPC-E-21-40 5 May 12, 2022
ICL COMMENTS
Figure 1. Project Costs of Gas, Wind, and Solar for Idaho Power11

In addition, Idaho Power’s application raises uncertainty about how customers will be
compensated for the energy produced as well as how much customers will be expected to pay in
program fees. In response to discovery, Idaho Power stated that it has not yet determined how it
will value the renewable energy produced by the new resource, leading ICL to worry that it will
not compensate customers fairly for the resource.12 In addition, Idaho Power states that it will
charge customers multiple forms of marketing and advertising costs, but the utility has not
identified how much those costs will be.13 ICL understands that this proceeding is only the first
step in Idaho Power’s approval process for this program, and that the utility will provide greater
detail in future proceedings. However, even though Idaho Power has declined to provide any
concrete details about the size, placement, and cost of the new resource, it has already decided
that participation costs will always be greater than participation credits. ICL is concerned that no

11 Data for this graph was pulled from Idaho Power’s 2021 IRP.
12 Idaho Power Response to First Production Request of the Idaho Conservation League, Case No. IPC-E-21-40, 6
(May 10, 2022).
13 Id. at 2-5.
$0.00
$50.00
$100.00
$150.00
$200.00
2022 2023 2024 2025 2026 2027 2028 2029 2030
20
2
1
$
/
M
W
h
Year
Projected Costs of Future Energy Resources
Gas CCCT Gas SCCT Wind Solar
IPC-E-21-40 6 May 12, 2022
ICL COMMENTS
matter the economics of the new resource, the utility will fix program costs and fees to ensure
that it profits from this program.
Other forms of renewable energy generation, such as rooftop solar or customer-owned
community solar as described in part II of these comments, would allow customers to take
advantage of the true cost savings associated with renewable energy. If designed well, these
programs could also have limited marketing costs, saving customers money overall while
increasing equitable access to renewable energy generation.
D. Idaho Power’s CEYW-Subscription proposal does not provide a comprehensive
low-income customer program that will improve access to clean energy for all
customers.

Many Idahoans struggle to pay monthly electric bills. According to data from the Home
Energy Affordability Gap project, around 33,000 Idaho households live at or below 50% of the
Federal Poverty Level ($27,750 for a family of four) and pay an average of 20% of their monthly
income on energy bills.14 Overall, around 11% of Idaho households live in poverty with some
counties in Idaho Power’s service territory experiencing much higher rates of poverty at 13-
15%.15
While Idaho Power customers have been fortunate in the recent past to enjoy relatively
low electric costs, evolving economic, environmental, and demographic conditions will result in
higher electric prices in the coming years. For example, Idaho Power recently asked for an
8.27% ($103.4 million) power cost adjustment to compensate for unexpected expenses in the

14 Fisher, Sheehan, and Colton, Home Energy Affordability Gap: Idaho (2021),
http://www.homeenergyaffordabilitygap.com/03a_affordabilityData.html (last visited May 11, 2022).
15 USDA, Economic Research Service, Poverty (Jan. 2021),
https://data.ers.usda.gov/reports.aspx?ID=17826#P48e489c3ae9f4212b2747db60118db5c_2_229iT3 (last visited
May 11, 2022).
IPC-E-21-40 7 May 12, 2022
ICL COMMENTS
past year due to low hydro generation and volatile gas prices.16 We can expect similar cost
increases in future years.
Despite this demonstrated need for low-income assistance in Idaho Power’s service
territory, Idaho Power’s CEYW-Subscription program requires customers to pay a monthly
premium to participate17 and is thus functionally unavailable to low-income customers. Even if
Idaho Power were to create a low-income program for the CEYW-Subscription program, such as
a mechanism by which participants can subsidize low-income household subscriptions, few
customers would be incentivized to participate because the overall program’s design does not
permit customers to take advantage of the cost savings associated with renewable energy.
Furthermore, although lower income customers would likely feel more comfortable agreeing to a
month-to-month subscription rather than a 10- or 20-year subscription, the cost of a subscription
increases as the term of the subscription decreases. This cost structure presents yet another
barrier to low-income participation and ensures that this program will be utilized primarily by
customers with significant and stable financial means.
Subscription solar can bring enormous benefits to low-income customers if the program
is designed to allow customers to take advantage of the energy cost savings associated with solar
as well as the financial benefits associated with solar ownership. Idaho Power should begin
development of a subscription solar program that permits customer ownership of solar in order to
provide relief to low-income customers on their monthly energy bills.

16 Application, Case No. IPC-E-22-11, 1 (Apr. 15, 2022).
17 Idaho Power Response to First Production Request of the Idaho Conservation League, Case No. IPC-E-21-40, 7
(May 10, 2022).
IPC-E-21-40 8 May 12, 2022
ICL COMMENTS
E. Idaho Power’s CEYW-Subscription proposal does not permit customer ownership
of the renewable resource.

Customer ownership of solar and other renewable energy generation infrastructure brings
significant financial benefits to both rural and urban communities in Idaho. Local solar
ownership creates long-term local Idaho jobs and generates investment income that stays within
Idaho communities rather than benefiting out-of-state companies and investors.18 Local solar
ownership can also increase local political support for siting renewable energy projects which
can save local developers time and money in the development process.19 In addition, solar
ownership helps stabilize owners’ energy costs and provides additional income in the form of
energy credits once the initial capital costs are paid. These financial benefits can come from
rooftop solar which is owned and utilized by a single utility customer, but the benefits can also
come from community solar in which customers receive energy credits from a solar array that is
not owned or controlled by the utility.
The renewable resource in the CEYW-Subscription program will either be owned by
Idaho Power or controlled by the utility via a Power Purchase Agreement. Although ICL does
not oppose all utility-controlled renewable generation, Idaho customers should be given more
options to own renewable generation resources so that they may take advantage of the local
financial benefits of this ownership.
II. Framework for a Customer-Owned Community Solar Program.
Given the concerns with the CEYW program identified above as well as the financial and
environmental potential of customer-owned solar, the Commission should require Idaho Power
to begin development of a customer-owned community solar program. In this program,

18 Farrell, J., Advantage Local: Why Local Ownership Matters, Institute for Local Self-Reliance, 2-3 (Sep. 2014).
19 Id.
IPC-E-21-40 9 May 12, 2022
ICL COMMENTS
customers (individuals, business entities, or nonprofits) can purchase and install solar panels, and
other customers can subscribe to the solar array and receive a portion of their power from that
array. Functionally, a customer-owned solar program is identical to Idaho Power’s proposed
CEYW-Subscription program except that customers, rather than the utility, own and control the
renewable resource.
The mechanics of this program could work as follows. Customers (or customer entities)
who own a solar array would register their project with Idaho Power as a community solar
project.20 Individuals in the community would sign up as subscribers to the array, and the solar
owner would notify Idaho Power of the identity of the customer-subscribers. Once the array
starts producing power, Idaho Power would add the solar credit (equal to the value of solar
produced by the customer’s portion of the solar array) to the customer’s electric bill, exactly as it
does with rooftop solar customers.
We encourage Idaho Power to work with community groups and individuals when
designing a customer-owned community solar program. As Idaho Power knows from its
experience designing the previous proposed subscription solar program, community involvement
and buy-in is necessary to ensure the success of a utility program. There is support from
nonprofits, individuals, and municipalities for a customer-owned solar program like the one we
describe here, but the ultimate success of the program will depend on whether the program meets
the specific needs of interested customers.
A customer-owned community solar program addresses all of the concerns that we
described in Part I of these comments.

20 Size requirements could be placed on arrays before they qualify as community solar projects.
IPC-E-21-40 10 May 12, 2022
ICL COMMENTS
A. Distributed generation
Customer-owned community solar is generally smaller than utility-scale solar and can be
developed within both urban and rural communities in Idaho. Because a customer-owned
community solar program will permit the construction of multiple new solar projects,
communities throughout Idaho Power’s service territory can benefit from this distributed
generation.
B. Rapid deployment of clean energy
Because customer-owned solar is not beholden to regulatory approval, new projects can
be developed and built quickly. In addition, customer-owned solar is generally easier to site
because it can be located on private property. This speeds up the deployment of new clean power
generation.
C. Reduction of unnecessary and uncertain costs
Individuals who subscribe to customer-owned community solar will not pay additional
fees to the utility, such as fees associated with marketing. In addition, they will receive full credit
for the value of the solar produced by their portion of the community solar array. The
owners/developers of community solar will be incentivized to keep construction costs and other
fees low so as to attract as many subscribers as possible.
D. Expansion of access to solar ownership for all customers, including low-income
customers

As described above, solar ownership brings significant financial benefits both to
individuals and communities. Rooftop solar ownership is not available to everyone - individuals
who rent their homes, individuals who do not have sunny rooftops, and individuals who cannot
afford an entire solar system are unable to take advantage of these financial benefits. A
customer-owned community solar program will expand access to solar for all Idahoans. In
IPC-E-21-40 11 May 12, 2022
ICL COMMENTS
addition, customer-owned community solar programs can be designed specifically to provide
financial benefits to low-income customers.
III. ICL’s Request to the Commission
A. The Commission should require Idaho Power to make certain modifications to the
CEYW-Subscription program before approving it.
The Commission should require Idaho Power to make a few modifications to the CEYW-
Subscription program before approval.
1. Idaho Power should at least allow for the possibility that the participation credit in the
CEYW-Subscription program is larger than the participation fee. In this scenario,
participants would receive a net gain on their electric bill from participating in the
program.
2. Idaho Power should work to minimize any administrative and marketing costs associated
with the CEYW-Subscription program.
3. If the CEYW-Subscription program uses a solar array as its renewable resource, Idaho
Power should compensate CEYW-Subscription participants for the energy production of
the resource using the value of solar that it calculates in the solar study that is completed
in Summer, 2022.
4. Idaho Power should consider how the CEYW-Subscription program can be used to
increase distributed generation and how the program can be modified to benefit low-
income customers.
B. The Commission should require Idaho Power to begin development of a customer-
owned community solar program.

For the reasons stated above, Idaho Power should begin development of a customer-
owned community solar program. ICL also asks that the Commission create an exception to the
IPC-E-21-40 12 May 12, 2022
ICL COMMENTS
meter aggregation rule created in Order No. 32925 in order to facilitate the development of a
customer-owned community solar program.21 This exception would permit customers who own
part of a community solar array on a property that is not contiguous to the property on which
their meter is located to still receive credit for the energy produced on the solar array.

ICL appreciates the opportunity to submit comments on Idaho Power’s Clean Energy
Your Way proposal. We look forward to working with the utility to ensure equitable access to
renewable energy and its associated financial and environmental benefits for all of Idaho
Power’s customers.
Respectfully submitted this 12th day of May, 2022.
_/s/ Emma E. Sperry____________
Emma E. Sperry
(Assisted by Benjamin Otto)

21 Order No. 32925, Case No. IPC-E-12-17, 6 (Nov. 19, 2013).
IPC-E-21-40 13 May 12, 2022
ICL COMMENTS
CERTIFICATE OF SERVICE
I hereby certify that on this 12th day of May, 2022, I delivered true and correct copies of
the foregoing COMMENTS to the following persons via the method of service noted:
/s/ Benjamin J.Otto
Electronic mail only (See Order 35058)

Idaho Public Utilities Commission
Jan Noriyuki, Secretary
[e-mail]

Dayn Hardie,
Deputy Attorney General
[e-mail]

Idaho Power
Lisa D. Nordstrom
Allison Williams
[e-mail]
[e-mail]
[e-mail]
[e-mail]

Industrial Customers of Idaho Power
Peter J. Richardson
Richardson, Adams, PLLC
[e-mail]

Dr. Don Reading
[e-mail]

Clean Energy Opportunity for Idaho
Michael Heckler
Courtney White
[e-mail]
[e-mail]

Kelsey Jae
Law for Conscious Leadership
[e-mail]

City of Boise
Ed Jewell
Wil Gehl
[e-mail]
[e-mail]
[e-mail]

Walmart
Norman M. Semanko
Vicki M. Baldwin
Parsons Behle & Latimer
[e-mail]
[e-mail]

Steve W. Chriss, Director Energy Services
Walmart, Inc.
[e-mail]