IPCE2314StaffWorkshop.pdf

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Workshop Participation
Online:
To open chat in WebEx, please select the icon.
Type questions and comments in the chat box;
Please use the “Everyone” option when using chat to ensure your message will be seen.
To speak, click on the hand icon in the lower section of your Webex screen. I will send you an invitation to unmute your audio line.
On The Phone:
*3 is the command to raise and lower your hand;
I will send you an invite to un-mute your line. Please press *6 to un- mute your line on your end.
This PowerPoint is available on the commission’s homepage at puc.idaho.gov.
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Purpose of Public Workshop
Informational session to
•Overview the IPUC and its role.
•Describe the related case history.
•Describe the case process.
•Present Idaho Power Company’s application.
•Explain how to submit written comments.
•Provide an opportunity to ask questions on the application.
This Public Workshop is not part of the official case record.
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What is the Idaho Public
Utilities Commission?
 Established in 1913. Idaho Code Sections 61 and 62.
The Commission regulates Idaho’s investor-owned utilities, ensuring adequate service and reasonable rates.
The Commission is made up of three commissioners appointed by the Governor and confirmed by the Senate. The Commissioners make the decisions in each case.
Commission Staff (“Staff”) is made up of Auditors, Consumer Compliance Investigators, Engineers, Technical Analysts, and Admin.
Staff is conducting this workshop. Staff is one of the Parties in the case and providing comments to the Commissioners.
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Progression of the Case
Application
•State law requires that the Commission consider all evidence that is on the record, which includes the Idaho Power Company’s supporting documentation, Comments from Staff & Parties, and customers’ written comments and oral testimony at public customer hearings.
Staff’s Role
• Staff reviews and analyzes the Company’s filing and proposals
• Staff provides recommendations to the Commission based on its analysis.
Final Order
• The Commission will review all evidence and have authority to issue a final order.*
*All Commission decisions must withstand Idaho Supreme Court Appeals from either utility or customer groups 6
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Case No. IPC-E-17-13
Established Schedule 6: Residential Service On-Site
Generation and Schedule 8: Small General Service On-Site
Generation
Commission Order No. 34046
IT IS FURTHER ORDERED that Idaho Power shall initiate a
docket to comprehensively study the costs and benefits of
on-site generation on Idaho Power's system, as well as
proper rates and rate design, transitional rates, and related
issues of compensation for net excess energy provided as a
resource to the Company.
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Case No. IPC-E-18-15
Proposed settlement changes to net metering rejected by the Commission.
Established Grandfathering for legacy systems.
Commission Order No. 34509,
“IT IS FURTHER ORDERED that the Company shall submit a comprehensive study of the costs and benefits of net metering to the Commission before any further proposals to change the Company's net-metering program. This study shall incorporate public feedback and concerns in the design and review of the study, including public workshops and public comments on the record.”
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Case No. IPC-E-21-21
“This study shall incorporate public feedback and concerns in the design and review of the study, including public workshops and public comments on the record.”
Commission Order No. 35284:
IT IS HEREBY ORDERED that the Application is approved as provided above.
“IT IS FURTHER ORDERED that Idaho Power complete the study design for its Comprehensive study on the costs and benefits of on-site generation based on the Commission’s Study Framework findings and conclusions as more specifically defined and explained herein.”
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Case No. IPC-E-22-22
Commission Order No. 35631:
“IT IS HEREBY ORDERED that the Company’s October
VODER Study is acknowledged. “
“IT IS FURTHER ORDERED that the Company shall file a
new case requesting to implement changes to the
structure and design of its NEM program”
The Study is available for public review.
Value of Distributed Energy Resources (“VODER”)
www.puc.idaho.gov (Case Number: IPC-E-22-22)
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Event Date
Case Filed 05/01/2023
Public Workshop 09/06/2023 6:00 PM
Public Workshop 09/07/2023 12:00 PM
Written Public Comments Open until 10/12/2023
Public Customer Hearing TBD
Staff/intervenor Comments 10/12/2023
All Party Reply Comments 11/02/2023
Company Final Reply 11/16/2023
Close of Case Final Order
Proposed Effective Date Proposed Jan 1st, 2024
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Application
Filed May 1st, 2023
The Company’s Requests:
1.Change from “Net Metering” to “Net Billing” for non-legacy systems and use a real-time measurement interval.
2.Pay non-legacy customer-generators for energy exports using an Export Credit Rate (“ECR”).
3.Standardize the method for annually updating the ECR.
4.Modify the Project Eligibility Cap.
5.Other implementation considerations.
Requesting an effective date of January 1, 2024.
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The Company’s Reasons for Filing This
A long history of related cases….
It was directed to file a proposal by the Commission
(Order 35631)
The existing system overvalues exports, which results in cost-shifting between participants and non-participants.
To reasonably balance the interests of participants
and non-participants.
On-site generation customers need more clarity
about the future rate structure.
Need to modernize an outdated service offering.
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Terms & Definitions
Customer-generators: Customers who have a generation system (typically
solar) capable of exporting energy to the grid.
kWh: kilowatt-hour – A standard unit of energy. One kilowatt of power for one
hour.
Export Credit Rate (“ECR”): A monetary value for exported energy. Usually
cents per kWh.
Net Energy Metering (“NEM”): The Company’s current kWh-to-kWh program.
Usually shortened to “Net Metering.”
Net Billing: The Company’s proposed program that includes a monetary
payment for any exported energy.
Legacy / Grandfathered Systems: Systems that are eligible to remain in the
Net Metering program by meeting criteria in Order 34509 and Order 34854.
VODER: The Company’s Value Of Distributed Energy Resources Study.
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Proposal 1: Measurement Interval
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Imports = 33 Exports = -35
Imports = 18 Exports = -20
Imports = 7 Exports = -9
Imports = 0 Exports = -2
Current “Net Energy Metering” method = Monthly Netting
Understanding the Effect of “Netting”
Company’s Proposed Method: “Real-Time” Net Billing
The Company’s Proposal
Imports = 0 Exports = -205
From this…To this…
Imports = 200 Exports = -405
Proposal 1: Measurement Interval
Understanding the ECR
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Avoided
Energy
Costs
Avoided
Capacity
CostsECR=
Includes:
Avoided Energy
Line Losses
Integration Costs
Includes:
Avoided Generation Capacity
Avoided T&D Capacity
Line Losses
Note: Under current environmental and/or legislative requirements, customer-exports do not
provide environmental benefits or avoid costs that are quantifiable, measurable, or affect rates – as
explained in the Application.
See Ellsworth Direct at 24-25.
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Proposal 2: Export Credit Rate
Avoided Energy Costs
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Avoided
Energy
Costs
Energy
Cost=
Weighted average
of the most recent
year’s ELAP* prices
in the time period
Line Loss
Adjustment
Integration
Costx-
2023
Study/Analysis
performed
internally
*ELAP = Energy Imbalance Market Load Aggregation Point
Proposed
time periods
are
On-Peak &
Off-Peak
2020
Study/Analysis
performed
externally
Proposal 2: Export Credit Rate
/Exported kWh
in chosen time
period
Avoided Capacity Costs
Avoided
Capacity
Costs
Avoided
Generation
Capacity Cost=
Contribution
to system
capacity
Line Loss
Adjustment
Avoided T&D
Capacity
Costx+
2023
Study/Analysis
performed
internally
ELCC*
From the
most
recently
filed IRP
2022
Study/Analysis
performed
internally
Cost of
surrogate
generatorx
Nameplate
Capacity
][/Exported kWh
during chosen
time period
3-year
rolling
average
x
Peak
export
hour in
previous
year
Proposal 2: Export Credit Rate
*ELCC = Effective Load Carrying Capability
Exported
kWh during
On-Peak
hours
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The Company’s Proposed On-Peak hours*
3pm to 11pm
June 15 through September 15
Monday through Saturday
Excludes Sundays & Holidays
*Currently identified as the hours of the Company’s greatest system need for
energy and capacity. Ellsworth at 9.
Proposal 2: Export Credit Rate
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The Company’s Proposed ECR
Export Credit Rate by Component (cents/kWh)
Energy On-Peak
Including integration and losses Off-Peak
Annual*
Generation Capacity On-Peak
Off-Peak
Annual*
Transmission & Distribution Capacity On-Peak
Off-Peak
Annual*
Total On-Peak
Off-Peak
Annual*
Current “import” rate ~ 11.2 ₵
(For residential customers, first 800 kWh, with FCA and PCA)
Proposal 2: Export Credit Rate
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Proposal 3: Updating the ECR To be filed in April
To be effective 1 June
The Company’s Proposed ECR Update Schedule
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Schedules 6 & 8:
Continue the existing 25kW cap.
Schedule 84:
Greater of…
a) 100kW, or b) 100% of demand at the service point.
Also, if >100kW, then additional criteria:
Proposal 4: Modify the PEC
Project Eligibility Cap
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Recovery of Export Credit Expenditures
“The Company proposes to treat ECR expenditures as a net power
supply expense (“NPSE”) subject to 100% recovery.”
The recovery of NPSE will be from all customers.
Billing & Transfer Criteria for ECR Financial Credits
“The Company proposes that financial credits offset all billing
components of the bill – not just the energy-related portion of a
customer bill.”
“…the Company proposes that a customer could transfer financial
credits to another account held in their name for their own usage.”
Proposal 5: Other Considerations
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Conversion of kWh Credits to Financial Credits
During the first year, surplus kWh credits would be used to offset
consumption.
“The Company proposes that accumulated kWh credits held at
service points with non-legacy systems be converted to financial
credits one year after the effective date of a Commission-authorized
change in compensation structure.”
Transition Period
“The Company carefully considered whether a transition period was
warranted, …, the Company does not believe it is prudent to continue
to overcompensate customers for their exported energy.”
Proposal 5: Other Considerations
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Rate Schedule Current NEM Proposed Net
Billing
Schedule 6 – Residential $39.63 $51.75
Schedule 8 - Small General Service $25.99 $40.67
Schedule 84 - Large Commercial,
Industrial, and Irrigation
$61.64 $73.94
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Individual bill total charge driven by actual consumption and exports
Does not include PCA, FCA, rider surcharge/credit as these change year to year
Average Monthly Bill Impact
Rate Schedule Current NEM Proposed Net
Billing
Combined
Impact of ECR
& GRC
Proposals
Schedule 6 – Residential $39.63 $51.75 $78.53
Schedule 8 - Small General Service $25.99 $40.67 $43.92
Schedule 84 - Large Commercial,
Industrial, and Irrigation
$61.64 $73.94 $124.10
ECR and GRC Filing Proposals
Export Credit Rate Filing General Rate Case Filing
Case No. IPC-E-23-14
1.Implement to real-time “Net
Billing”
2.Establish an export credit rate
(“ECR”)
3.Set method for updating the ECR
4.Modify the Project Eligibility Cap
5.Other considerations related to
implementing an ECR
Case No. IPC-E-23-11
1.Consumption rate increase
2.Rate modernization plan
•Service charge and energy
rates
3.PCA, FCA, Rider adjustments
4.Other secondary requests
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•Exports •Consumption
General Rate Case
Case No. IPC-E-23-11
•Company has requested a change in rates
•IPUC Virtual Workshops were previously
held on 8/14/23 and 8/15/23
•Customer hearings are TBD
•Go to PUC web page for more information
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Consumer Assistance
•Utility Compliance Investigators assist customers to
resolve issues and/or disputes with the Company.
•Investigators monitor compliance with laws,
commission rules, and the Company’s tariff.
•Investigators review issues from previous cases,
review previous complaints, review submitted
comments from customers, and investigate
consumer issues raised in the case.
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Consumer Issues
As of this week, the PUC has received 209
Customer Comments
•No changes or keep Net Metering;
•Grandfather all existing systems;
•Customer incentives and;
•Environmental impact.
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CUSTOMER COMMENTS
Customer written comments are due October 12, 2023.
(Reference Case Number IPC-E-23-14)
•Internet Website Address – puc.idaho.gov
•Select - Case Comment Form (once comments are submitted, they become part of public record)
•Email – Address: [e-mail]
•Mail – IPUC, PO Box 83720, Boise, ID 83720-0074oBlank Customer Comments sheets are available here tonight to be mailed in or left with Staff.
•Public Customer Hearing – TBD
COMMENTS ONLY
(QUESTIONS WILL NOT BE ADDRESSED)
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Idaho Public Utilities Homepage
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Comments Form Page
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PUC Home Page
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Electric Page
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Open Electric Cases Page
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Case Summary Page
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•Customers can subscribe to the Commission’s RSS feed to receive updates about all cases via email.
•Continue submitting your comments.
•Public Customer Hearing, date is TBD.
•The Commission will issue a final order which will close the case.
Where do we go from here?
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Workshop Participation
Online:
To open chat in WebEx, please select the icon.
Type questions and comments in the chat box;
Please use the “Everyone” option when using chat to ensure your message will be seen.
To speak, click on the hand icon in the lower section of your Webex screen. I will send you an invitation to unmute your audio line.
On The Phone:
*3 is the command to raise and lower your hand;
I will send you an invite to un-mute your line. Please press *6 to un- mute your line on your end.
This PowerPoint is available on the commission’s homepage at puc.idaho.gov.
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