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HomeMy WebLinkAbout20230501Direct Anderson with Exhibits.pdf BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF IDAHO POWER COMPANY’S APPLICATION FOR AUTHORITY TO IMPLEMENT CHANGES TO THE COMPENSATION STRUCTURE APPLICABLE TO CUSTOMER ON-SITE GENERATION UNDER SCHEDULES 6, 8, AND 84 AND TO ESTABLISH AN EXPORT CREDIT RATE METHODOLOGY ) ) ) ) ) ) ) ) ) CASE NO. IPC-E-23-14 IDAHO POWER COMPANY DIRECT TESTIMONY OF GRANT T. ANDERSON RECEIVED 2023 May 1, 4:44PM IDAHO PUBLIC UTILITIES COMMISSION ANDERSON, DI 2 Idaho Power Company Q. Please state your name, business address, and 1 present position with Idaho Power Company (“Idaho Power” or 2 “Company”). 3 A. My name is Grant T. Anderson. My business address 4 is 1221 West Idaho Street, Boise, Idaho, 83702. I am employed by 5 Idaho Power as a Regulatory Consultant in the Regulatory Affairs 6 Department. 7 Q. Please describe your educational background. 8 A. In May of 2013, I received a Bachelor of Science 9 degree in Microbiology from Oregon State University. In May of 10 2015, I earned a Master of Business Administration degree from 11 Boise State University. In addition, I have attended the 12 electric utility ratemaking course The Basics: Practical 13 Regulatory Training for the Electric Industry, a course offered 14 through New Mexico State University’s Center for Public 15 Utilities. 16 Q. Please describe your work experience with Idaho 17 Power. 18 A. In 2018, I was hired as a Regulatory Analyst in the 19 Company’s Regulatory Affairs Department. My primary 20 responsibilities as a Regulatory Analyst included supporting the 21 Company's Commercial and Industrial customer classes’ rate 22 design and general support of tariff rules and regulations. In 23 2021, I was promoted to my current position as a Regulatory 24 Consultant. My responsibilities expanded to include the 25 ANDERSON, DI 3 Idaho Power Company development of complex cost-related studies and support of the 1 Company’s Residential and Small General Service ("R&SGS") and 2 on-site generation customer classes’ rate design. 3 Q. How is your testimony organized? 4 A. My testimony begins with an overview of the 5 Company’s modified project eligibility cap proposal for all non-6 legacy on-site customer generation systems. Next, I will provide 7 an overview of the customer bill impact from the proposed change 8 in the compensation structure. I will then address the Company’s 9 proposal for other implementation considerations, including 10 recovery of export credit expenditures, billing and transfer 11 criteria for net billing financial credits, conversion of 12 accumulated kilowatt-hour (“kWh”) credits to financial credits 13 for customers with non-legacy systems, and customer education 14 and outreach. I also address the Company’s proposed tariff 15 revisions related to the net billing compensation structure and 16 interconnection requirements for systems under a modified 17 project eligibility cap. Last, I will describe the Company’s 18 proposed annual Export Credit Rate (“ECR”) update schedule. 19 Q. Have you prepared any exhibits? 20 A. Yes. My testimony incudes Exhibit Nos. 6 - 8, which 21 calculate the bill impact for non-legacy customer generators for 22 the twelve months ending December 31, 2022, for residential, 23 small commercial, and large commercial, respectively. 24 // 25 ANDERSON, DI 4 Idaho Power Company I. PROJECT ELIGIBILTY CAP 1 Q. What is the current project eligibility cap for 2 Idaho Power customer-generators? 3 A. The current project eligibility cap varies by 4 customer class. Schedule 6, Residential Service On-Site 5 Generation (“Schedule 6”) and Schedule 8, Small General Service 6 On-Site Generation (“Schedule 8”) applicability defines the 7 current project eligibility cap with a total nameplate capacity 8 rating of 25 kilowatts (“kW”). Schedule 84, Customer Energy 9 Production Net Metering Service (“Schedule 84”) is applicable to 10 Schedule 9, Large General Service (“Schedule 9”), Schedule 19, 11 Large Power Service (“Schedule 19”), and Schedule 24, 12 Agricultural Irrigation Service (“Schedule 24”) customers. 13 Schedule 84 defines the current project eligibility cap for 14 customers under Schedule 9, 19, and 24, with a total nameplate 15 capacity rating of 100 kW. 16 Q. What information did the Company consider in 17 evaluating the appropriateness of the existing cap for Schedule 18 6 and 8 non-legacy systems? 19 A. The Company evaluated the potential output from 20 installing rooftop solar up to 25 kW for a residential customer. 21 A 25 kW system could generate approximately 37,000 kWh per year1 22 – equating to around 3,100 kWh per month. In comparison, the 23 average residential customer uses about 930 kWh per month, or 24 1 Assumes a capacity factor of 17 percent. ANDERSON, DI 5 Idaho Power Company less than one-third of the energy a 25 kW system is expected to 1 produce on average. Relative to the 25 kW cap, the average 2 residential customer service point maximum annual hourly demand 3 is approximately 6-7 kW. Additionally, the most commonly 4 installed residential system is about 7.5 kW, or 30 percent of 5 the 25 kW cap. 6 Q. Based on its analysis, is the Company proposing to 7 modify the project eligibility cap for exporting systems under 8 Schedules 6 and 8? 9 A. No. The data suggests the current cap is not 10 limiting for residential and small general service customers and 11 the Company believes the 25 kW cap continues to be reasonable 12 for the administration of interconnection for service under 13 Schedules 6 and 8. 14 Q. What information did the Company rely on to 15 evaluate whether the Schedule 84 cap continues to be reasonable? 16 A. The intent of net metering is to offset one’s 17 energy usage behind the meter. Therefore, the Company evaluated 18 electrical demand by service point for non-solar commercial, 19 industrial, and irrigation (“CI&I”) service points. 20 Figure 1 is a histogram for all non-solar CI&I service 21 points by annual demand. Figures 9.2 and 9.3 in the October 2022 22 // 23 ANDERSON, DI 6 Idaho Power Company VODER Study2 provide a more detailed breakdown of this same data 1 by service point between commercial/industrial and irrigation 2 customer service points. 3 Figure 1 4 Non-Solar Commercial, Industrial, and Irrigation Service Point 5 Histogram 6 7 8 Q. In your opinion, what are the key takeaways from 9 this figure? 10 A. Generally, the cap is not limiting to the majority 11 of customers at a given service point. Approximately six percent 12 of CI&I service points registered an annual demand over 100 kW, 13 with the remaining 94 percent registering a demand of 100 kW or 14 less. While it may not appear to be limiting for the majority of 15 2 See Attachment 1. See also, In the Matter of Idaho Power Company’s Application to Complete the Study Review Phase of the Comprehensive Study of Costs and Benefits of On-Site Customer Generation & For Authority to Implement Changes to Schedules 6, 8, and 84, Case No. IPC-E-22-22, Attachment 1 (October 2022 VODER Study) to Idaho Power Company’s Final Comments (Oct. 26, 2022). 90,781 14 3,473 1,189 557 239 99 63 47 44 181 10 0 o r l e s s 10 0 - 1 9 9 20 0 - 2 9 9 30 0 - 3 9 9 40 0 - 4 9 9 50 0 - 5 9 9 60 0 - 6 9 9 70 0 - 7 9 9 80 0 - 8 9 9 90 0 - 9 9 9 1, 0 0 0 P l u s Nu m b e r o f C u s t o m e r s Annual Peak Demand (kW) ANDERSON, DI 7 Idaho Power Company customers, in the Company’s experience customers who have some 1 of those larger service point demands desire to install larger 2 on-site generation systems. Rather than installing a system 3 sized commensurate with their demand at a given site, those 4 customers have had to rely on the Company’s existing “meter 5 aggregation rules” by installing smaller, disaggregated 100 kW 6 systems. Those customers then apply annually to transfer kWh 7 credits to qualifying service points. 8 Q. Based on its analysis, is the Company proposing to 9 modify the project eligibility cap for Schedule 84? 10 A. Yes. The Company proposes that the project 11 eligibility cap for Schedule 84 be set at the greater of 100 kW 12 or 100 percent of demand at the service point. 13 Q. Please describe the relationship between customer 14 and service point as it relates to administration of Idaho 15 Power’s tariff. 16 A. Often, the Company will refer to “customer” and 17 “service point” synonymously when discussing a request for 18 service. Each of Idaho Power’s service schedules in its tariff – 19 including the on-site generation schedules – are administered 20 according to service point. A service point is akin to the point 21 of delivery which is often the Company’s meter. 22 Q. Did the Company consider a proposal that would have 23 measured aggregate demand at a customer level versus service 24 point? 25 ANDERSON, DI 8 Idaho Power Company A. Yes. The Company considered aggregating demand by 1 customer rather than service point but did not find that to be a 2 feasible approach. 3 As I previously noted, the Company does not administer 4 any of its tariff schedules based on aggregated service point 5 data and the Company is concerned that introducing that 6 requirement for the purpose of determining certain criteria only 7 applicable to its on-site generation service schedules would 8 lead to a burdensome administrative process that could be prone 9 to error. 10 Decoupling the project eligibility cap from the service 11 point will also create the potential for over-sized systems that 12 could lead to distribution circuit upgrades solely to support 13 on-site generation. While the on-site generation customer would 14 be responsible for the initial cost of the upgrades, the ongoing 15 cost, including maintenance, replacement, property taxes, and 16 other ancillary costs will become the responsibility of the 17 Company. These costs are collectively paid for by all customers. 18 Q. How does the Company propose to measure demand for 19 purposes of administering the cap? 20 A. For customers with at least 12 months of historical 21 billing data, the Company proposes using the maximum billing 22 demand from the last 12 months, measured when the customer 23 generation application is submitted - to establish a project 24 eligibility cap. 25 ANDERSON, DI 9 Idaho Power Company For new customers, or those without at least 12 months of 1 historical billing, the Company has identified a few methods for 2 determining demand, depending on the circumstances. In the first 3 instance, the Company will evaluate and rely on available 4 historical billing data at that service location. For example, 5 if a new customer assumes service at a service point that has 6 historical usage, that historical usage could be relied upon. In 7 the absence of that information, or in the case where a new 8 customer believes their demand will exceed that of a past 9 customer, the Company proposes requiring an analysis of the 10 facility’s power needs performed by a professional engineer. 11 For irrigation customers without a full in-season billing 12 history, a conversion factor related to the horsepower of their 13 pump(s) at the service point would determine the maximum demand. 14 Q. Has the Company considered how it would administer 15 a situation where a customer’s demand decreases after the 16 initial installation? 17 A. Yes. The Company plans to determine the cap for the 18 service point at the time of application. If the customer demand 19 at the service point later decreases or a new customer takes 20 over the premise with a lower power requirement, the Company 21 does not propose the Commission require a change or reduction in 22 the existing system size based on their new demand and power 23 needs. Not only would tracking and managing changes be 24 administratively burdensome, but it would have significant 25 ANDERSON, DI 10 Idaho Power Company impacts on the customer – most of which would undoubtedly be 1 costly and would likely result in confusion and frustration. 2 Alternatively, if the customer’s demand increases and 3 they desire to interconnect a system expansion, this could be 4 conducted pursuant to the existing interconnection requirements 5 of Schedule 68, Interconnections to Customer Distributed Energy 6 Resources (“Schedule 68”) by applying for a system modification. 7 Q. Have other parties or customers taken a position on 8 the project eligibility cap in previous dockets? 9 A. Yes. Clean Energy Opportunities for Idaho (“CEO”) 10 filed a petition in Case No. IPC-E-22-12, which proposed setting 11 the project eligibility cap for Schedule 84 customers at 100 12 percent of demand. The Idaho Irrigation Pumpers Association 13 (“IIPA”) did not support a change to the cap until changes to 14 the compensation structure were approved by the Commission.3 In 15 context of discussing the project eligibility cap, the Idaho 16 Public Utility Commission Staff (“Staff”) acknowledged that 17 subsidies exist under the current net energy metering (“NEM”) 18 framework.4 Additionally, Staff stated that if the cap is 19 increased before an avoided-cost-based ECR is implemented, it 20 would result in more customer generation capacity being added 21 with additional cost shifts to non-generating customers.5 The 22 3 Case No. IPC-E-22-22, IIPA Comments at 8 (Sep. 21, 2022). 4 Case No. IPC-E-22-22, Staff Comments at 17 (Sep. 21, 2022). 5 Id. ANDERSON, DI 11 Idaho Power Company Company has also heard anecdotally from its irrigation customers 1 that a demand-based cap would be favorable. 2 Q. Does the Company believe its proposed modification 3 to the project eligibility cap for non-legacy systems addresses 4 concerns raised by customers and other stakeholders? 5 A. Yes. The Company believes this modification to the 6 cap contingent upon the concurrent replacement of the existing 7 NEM with a net billing compensation structure and an ECR based 8 on avoided cost appropriately considers stakeholder feedback and 9 will improve the service offering. 10 Q. Please explain whether the Company continues to 11 have the concerns it raised previously about modifying the 12 project eligibility cap under Schedule 84, and if not what has 13 changed? 14 A. It does; however, these concerns are generally 15 mitigated when evaluating all issues in this docket 16 simultaneously. The primary purpose of the cap was to mitigate 17 safety and reliability concerns. Mr. Jared Ellsworth’s testimony 18 addresses the requirements to ensure that all interconnected 19 systems do not compromise safety and reliability. An additional 20 rationale for the cap was to limit subsidies present as a result 21 of NEM. In this docket, the Company has proposed modifying the 22 measurement interval and ECR - the combination of which I will 23 generally refer to as “compensation structure.” The proposed 24 compensation structure will better align cost recovery with 25 ANDERSON, DI 12 Idaho Power Company system utilization and compensation for excess energy with the 1 costs and values of those activities. For these reasons, the 2 Company proposes changes to both the compensation structure and 3 the project eligibility cap occur coincidentally. 4 Q. Would the Company support a modification to the 5 project eligibility cap under Schedule 84 absent a change to the 6 compensation structure? 7 A. No. For the reasons I just mentioned, the Company 8 believes the existing project eligibility cap mitigates some 9 cost-shifting under the current retail rate NEM compensation 10 structure. Therefore, the Company does not advocate changing the 11 project eligibility cap without an avoided-cost-based rate for 12 excess generation measured under a net billing compensation 13 structure. 14 Q. Is the Company proposing modifications to the 15 administration of how energy storage devices are applied to the 16 project eligibility cap? 17 A. Yes. The Company is aware of limited circumstances 18 where AC-coupled energy storage devices have resulted in a 19 customer’s proposed system to exceed the project eligibility 20 cap. The Company proposes to modify its administration of the 21 cap to only evaluate capacity of an energy storage device for 22 purposes of its Feasibility Review to continue to ensure the 23 interconnection does not impact safety or reliability of Idaho 24 Power’s system. However, for all future applications for 25 ANDERSON, DI 13 Idaho Power Company interconnection, an energy storage device would not count 1 towards the capacity limits for applicability of exporting 2 systems under Schedule 6, 8, and 84.Q. Are there other items 3 that should be considered in relation to the Company’s proposed 4 modification to the project eligibility cap? 5 A. Yes. Mr. Ellsworth’s testimony includes more detail 6 about the interconnection requirements for customer-generators 7 and the considerations associated with modifying the project 8 eligibility cap for Schedule 84. 9 II. COMPENSATION STRUCTURE & BILL IMPACT 10 Q. Did the Company evaluate the impact on customer 11 bills that will result with the change to a real-time net 12 billing compensation structure? 13 A. Yes. Included with my testimony are Exhibit Nos. 6-14 8, which summarize the bill impact for non-legacy on-site 15 generation customers with billing data for the twelve months 16 ending December 31, 2022. 17 Q. Please provide an overview of the results of the 18 bill impact analysis. 19 A. There were approximately 3,750 non-legacy 20 residential customers taking service under Schedule 6 for the 21 twelve months ending December 31, 2022. Exhibit No. 6 summarizes 22 the bill impact calculations for non-legacy Schedule 6 service 23 points. The Company compared base rates under the existing NEM 24 and proposed real-time net billing compensation structure. On an 25 ANDERSON, DI 14 Idaho Power Company average monthly basis, residential customer-generators monthly 1 bill under NEM was $39.63 and under real-time net billing 2 increased to $51.75, an average increase of $12.12 per month. 3 Approximately 50 percent of customers would experience an 4 average monthly bill increase less than $10 and 75 percent would 5 experience a bill increase less than $15 per month. 6 Figure 2 7 Average monthly bill for non-legacy residential customer-8 generators in 2022, by average net monthly energy use 9 10 Figure 2 separates the customer-generators by their 11 average monthly energy consumption in 2022 under a monthly 12 measurement interval. The residential customer-generators have 13 been grouped into six categories to evaluate the average 14 magnitude of bill impacts. Figure 2 does not account for the 15 residential customer-generators average monthly bill before 16 $5 $23 $62 $99 $137 $235 $12 $35 $76 $116 $156 $252 0 kWh (642 customers) 1 ≤ 500 kWh (2,123 customers) 500 ≤ 900 kWh (563 customers) 900 ≤ 1,300 kWh (197 customers) 1,300 ≤ 1,700 kWh (110 customers) 1,700 kWh+ (119 customers) Average Net Monthly kWh Delivered NEM Net Billing ANDERSON, DI 15 Idaho Power Company solar was installed, which, all else held equal, would have been 1 higher than the real-time net billing average monthly bill.6 2 For the twelve months ending December 31, 2022, there 3 were 13 non-legacy small general service customers and 8 non-4 legacy large commercial service customers taking service under 5 Schedule 8 and Schedule 84, respectively. Exhibit Nos. 7 and 8 6 summarize a similar analysis for these customers. There were no 7 non-legacy irrigation customers taking service for the 8 respective 12-month period. 9 Q. Did the Company consider implementing a transition 10 period to mitigate customer impacts associated with a modified 11 ECR? 12 A. Yes. Ms. Aschenbrenner’s testimony addresses the 13 Company’s evaluation of a transition plan, which considered the 14 results of the bill impact analysis. 15 III. IMPLEMENTATION CONSIDERATIONS 16 Q. What implementation considerations and 17 recommendations are included in the Company’s proposal? 18 A. In Order No. 35631, the Commission stated that the 19 October 2022 VODER Study complied with its previous directives 20 and should serve as a basis for the Company’s implementation 21 recommendation in a subsequent case.7 Ms. Aschenbrenner’s 22 testimony addresses the Company’s proposal to utilize a real-23 6 Attachment 1 at 94-95, Figures 6.1 and 6.2. 7 Case No. IPC-E-22-22, Order No. 35631 at 28 (Dec. 19, 2022). ANDERSON, DI 16 Idaho Power Company time measurement interval for the compensation structure and Mr. 1 Ellsworth’s testimony addresses the methods the Company has 2 proposed for the valuation of the ECR. In this section, I will 3 address the following implementation considerations: (1) 4 recovery of ECR expenditures; (2) application of financial 5 credits for billing items and transfer criteria, (3) conversion 6 of accumulated kWh credits to financial credit, and (4) customer 7 education and outreach. 8 Q. Do these implementation considerations impact 9 customers with legacy systems? 10 A. No. The proposed on-site generation compensation 11 structure changes would only apply to customers with non-legacy 12 systems. As a result, customers with legacy systems will 13 continue to take service under the rules of NEM until legacy 14 status terminates. Therefore, these implementation 15 considerations do not impact customers with legacy systems. 16 Recovery of Export Credit Expenditures 17 Q. Please describe the Company’s recommendation 18 related to recovering export credit expenditures. 19 A. For customers with non-legacy systems, the Company 20 proposes to treat the ECR expenditures as a net power supply 21 expense (“NPSE”) subject to 100 percent recovery through the 22 Power Cost Adjustment (“PCA”), similar to the practice for 23 Public Utility Regulatory Policies Act of 1978 (“PURPA”) 24 Qualifying Facilities (“QF”). The October 2022 VODER Study 25 ANDERSON, DI 17 Idaho Power Company evaluates recovering export credit expenditures in Section 8 1 (pages 115-117). 2 Q. Why is it appropriate to recover the cost of ECR 3 expenses through the PCA? 4 A. ECR expenses represent the cost of energy that the 5 Company is purchasing for the benefit of all of its customers. 6 Therefore, it is reasonable for all customers to pay for that 7 energy through the PCA. Prior to 2014, net metering customers 8 were compensated for their net excess generation through 9 financial credits, the cost of which were recovered through the 10 PCA.8 11 Q. Why is it appropriate that ECR expenditures be 12 recovered through the PCA at 100 percent not subject to the 95 13 percent/5 percent sharing mechanism? 14 A. The Energy Policy Act of 2005 amended Section 111 15 of PURPA by adding five new federal ratemaking standards for 16 electric utilities. Notably, however, many of the basic concepts 17 embodied in the “new” federal standards were not new in Idaho. 18 For example, in considering the amendments to PURPA the 19 Commission concluded that the federal net metering standard, 20 which required electric utilities to make available upon request 21 a service offering under which a customer could offset their 22 8 In the Matter of the Application of Idaho Power Company for Authority to Implement a Power Cost Adjustment (PCA) Rate for Electric Service from May 16, 2003 through May 15, 2004, Case No. IPC-E-03-05, Exhibit No. 3 to Direct Testimony of Gregory W. Said (Apr. 15, 2003). ANDERSON, DI 18 Idaho Power Company energy usage with their own generation, had already been 1 implemented in Idaho.9 Regardless, similar to resources a utility 2 is forced to acquire under federal law, which the Commission has 3 allowed the Company 100 percent recovery of since the PCA was 4 established in 1983,10 customer-generator exports have become a 5 must-take resource at the state level and as such 100 percent of 6 ECR expenditures should be recovered through the PCA. In all 7 other instances where the Company is required to make payments 8 at prices consistent with Commission order, such as demand 9 response and PURPA, those payments are recovered at 100 percent. 10 Financial Credits – Billing and Transfer Criteria 11 Q. Please describe the Company’s recommendation for 12 how it proposes to apply financial credits to the bill. 13 A. The Company proposes that financial credits offset 14 all billing components of the bill – not just the energy-related 15 portion of a customer bill. 16 Q. Does the Company propose that financial credits 17 could be transferred to other meters or service points? 18 A. Yes, for customers with non-legacy systems the 19 Company proposes that a customer could transfer financial 20 credits to another account held in their name for their own 21 9 In the Matter of the Commission’s Consideration of the Five Amendments to Section 111 of PURPA Contained in the Energy Policy Act of 2005, Case No. GNR-E-06-02, Order No. 30229 at 3-5 (Jan. 24, 2007). 10 In the Matter of the Application of Idaho Power Company for Authority to Implement a Power Cost Adjustment Tariff for Electric Service to Customers in the State of Idaho and for Approval of New Rates for Service Under the FMC Special Contract, Case No. IPC-E-92-25, Order No. 24806 at 17 (Mar. 29, 1993). ANDERSON, DI 19 Idaho Power Company usage. Financial credits would be non-transferrable in the event 1 the customer relocates and/or discontinues service at the point 2 of delivery associated with the exporting system. Any unused 3 financial credit from discontinued service would be absorbed to 4 the benefit of customers through a credit, or reduction, to the 5 PCA. 6 Q. How would the transfer of excess financial credits 7 be administered? 8 A. Idaho Power proposes that the transfer of excess 9 financial credits be administered similar to its current NEM 10 service offering for customers transferring kWh credits. 11 Customers would submit requests to transfer financial 12 credits by January 31. After reviewing the eligibility of each 13 request, Idaho Power would execute approved transfers no later 14 than March 31. Between the time forms are submitted by the 15 January deadline and the transfers are executed in March, energy 16 generation and consumption will continue to occur, impacting the 17 available balance of financial credits. Therefore, customers 18 would be asked to specify a percent of financial credits to 19 transfer rather than an actual dollar amount. Transfers would be 20 limited to other accounts in the customer’s name and customers 21 would be asked to attest that the account they are transferring 22 credits to is for their own usage. Like the current NEM 23 offering, there would be a $10 charge per meter receiving the 24 credit. 25 ANDERSON, DI 20 Idaho Power Company Q. Did the Company identify any potential concerns 1 with the proposed transfer of financial credits? 2 A. Yes. The Company does not have the ability to 3 validate that the account where credits would be transferred is 4 for the customer’s own usage, and therefore proposes to rely on 5 an attestation from the customer. The potential for gaming 6 exists if a customer were to put accounts in their name where 7 the usage was not for their own use. The same risk factor exists 8 under the Commission-approved rules for legacy transfer of kWh 9 credits and the Company believes this risk is in part mitigated 10 by the adoption of a project eligibility cap based on the demand 11 at the service point. 12 Q. Is the Company proposing to change the 13 transferability of kWh credits for legacy customers? 14 A. No. In Order No. 32925, the Commission granted 15 limited transferability of kWh credits. In part, the Commission 16 found that: 17 As discussed in prior comments and testimony, 18 even with one delivery point, net metering 19 customers may not pay their full fixed costs 20 given the current rate structure. We find that 21 allowing customers to apply credits to offset 22 usage on continuous meters that are served by 23 the same primary feeder is a reasonable means 24 by which to limit the potential under-recovery 25 of fixed costs. 26 To the extent a legacy on-site generation customer wishes 27 to transfer financial credits to service points not eligible 28 under the rules applicable to legacy systems, that customer can 29 ANDERSON, DI 21 Idaho Power Company elect to forfeit legacy status. The Customer will take service 1 under the modified on-site generation offering, which will 2 include the flexibility to transfer credits more broadly than 3 what was allowed under NEM. 4 Accumulated kWh Credit Conversion – Non-Legacy Customers 5 Q. How does the Company propose to treat kWh credits 6 that were accumulated prior to the proposed January 1, 2024, 7 effective date? 8 A. The Company proposes that accumulated kWh credits 9 held at service points with non-legacy systems be converted to 10 financial credits one year after the effective date of a 11 Commission-authorized change in compensation structure. 12 Q. Please describe the Company’s recommendation 13 related to the conversion of accumulated kWh credits for 14 customers with non-legacy systems. 15 A. Customers with non-legacy systems would have had 16 the opportunity to accumulate kWh credits from the time they 17 interconnected their system. If the Company’s proposal is 18 approved, these customers would begin receiving financial 19 credits that could be monetized when they have billable amounts 20 to offset. 21 The Company proposes that these customers have one year 22 after moving to the net billing compensation structure to use 23 ANDERSON, DI 22 Idaho Power Company their pre-existing kWh credit balance from NEM.11 Any remaining 1 kWh credits that have not been used by the customer would be 2 converted to a financial credit on their January 2025 billing 3 cycle. 4 Q. How does the Company propose for kWh credits to 5 convert to a financial credit balance? 6 A. The Company proposes monetization into a financial 7 credit balance at the blended average retail energy rate as of 8 December 31, 2023, for the respective customer class under which 9 they take retail service from Idaho Power. These credits were 10 generated under the NEM compensation structure and to avoid 11 retroactive ratemaking, Idaho Power believes it is reasonable to 12 assume they would have monetized the credits at the applicable 13 blended average energy retail rate in effect while NEM was in 14 place. The final kWh credits will be applied prior to the 15 customer’s January billing cycle. 16 Q. Did the Company consider allowing accumulated kWh 17 credits to continue to be used to offset energy usage beyond one 18 year after implementation of a change in the compensation 19 structure? 20 A. Yes. However, to facilitate the transition from NEM 21 with a one-for-one kWh credit to a net billing financial credit 22 11 Pursuant to the existing Conditions of Purchase and Sale in Schedule 6, 8, and 84, the Company will process Excess Net Energy (kWh) credit transfer requests from non-legacy customer-generators in January 2024 and requests to transfer financial credits will occur December 2024 - January 2025. ANDERSON, DI 23 Idaho Power Company approach, the Company suggests converting the kWh credits to 1 financial credits one year after the effective date of net 2 billing to reduce administrative burden and possible customer 3 confusion associated with carrying two separate credit balances. 4 The Company also believes one year post-implementation of a 5 change in the compensation structure gives customers time to use 6 remaining kWh credit balances. 7 Q. How does the Company propose the cost of these 8 financial credits be recovered? 9 A. Under the existing NEM policy, if the accumulated 10 kWh credits were used to offset usage, the cost to R&SGS 11 customers would primarily be recovered from R&SGS customers 12 through the Fixed Cost Adjustment (“FCA”) mechanism. To maintain 13 consistency with the current recovery method, the Company 14 believes it is reasonable to recover the transition cost of 15 converting the accumulated kWh credits to financial credits from 16 R&SGS customers through a one-time adjustment to the FCA balance 17 as of December 31, 2024, which would then be collected in FCA 18 rates from June 1, 2025, through May 31, 2026. 19 In the event there are any remaining accumulated kWh 20 credits for CI&I customers as of December 31, 2024, the Company 21 believes it is reasonable to recover the transition cost of 22 converting those accumulated kWh credits to financial credits 23 through the PCA. 24 ANDERSON, DI 24 Idaho Power Company For context, as of December 31, 2022, there were 1 approximately 4.7 million non-legacy accumulated kWh credits - 2 the vast majority being residential - which, valued at the then-3 current blended average energy rate was approximately $496,000. 4 Customer Outreach and Education 5 Q. Please explain how the Company will notify 6 customers about its proposal in this docket. 7 A. Coincident with filing this docket, Idaho Power 8 will issue a news release to notify the public of its 9 Application. Additionally, Idaho Power will directly notify its 10 customers of the Application with a bill insert included with 11 their monthly bill. The bill insert will inform all customers 12 that Idaho Power has filed a case requesting changes to the 13 structure and design of its on-site generation offering with a 14 requested effective date of January 1, 2024. A copy of the press 15 release and customer bill insert is included as Attachment 4 to 16 the Application. 17 Q. How will the Company notify existing and pending 18 on-site generation customers of the filing? 19 A. In addition to providing a bill insert to all 20 customers under the major customer classes, the Company will 21 send direct-mail letters to all existing and pending on-site 22 generation customers notifying them that the Company has filed 23 its proposal for changes informed by the Commission-acknowledged 24 VODER Study. The letters that customers with legacy systems 25 ANDERSON, DI 25 Idaho Power Company receive will also remind them of their legacy status, the 1 criteria for legacy systems, and the reasons legacy status may 2 be forfeited. The letter that customers with non-legacy systems 3 receive will advise them on how they may be impacted by the 4 outcome of the case. All existing and pending on-site generation 5 customers, irrespective of the legacy status of their system, 6 will receive information on how they can participate in the 7 proceeding. A copy of the draft customer letters is included as 8 Attachment 5 to the Application. 9 In addition, the Company will have information available 10 on its website, and customers may contact the Customer Service 11 Center with questions about the filing. 12 Q. Has the Company considered how it would educate 13 existing non-legacy customers about the new compensation 14 structure once it is changed? 15 A. Yes. The Company has considered modifications to 16 customer bill presentment for printed and online bills, as well 17 as modifications to usage and billing information presented 18 through the Company’s MyAccount online and mobile app. 19 Implementing bill and usage presentation changes will provide 20 pertinent details to existing customers to help them better 21 understand how they are billed under real-time net billing. 22 Q. What information will Idaho Power make available to 23 prospective on-site generation customers who seek information 24 about how an installation may impact their Idaho Power bill? 25 ANDERSON, DI 26 Idaho Power Company A. Customers can access their historical hourly grid 1 consumption data through an online portal or by calling the 2 Customer Service Center. Additionally, generation system hourly 3 production estimates are publicly available from sources such as 4 the National Renewable Energy Laboratory’s PV Watts® Calculator 5 or the customer’s installer. Customers can pair their grid 6 consumption data from Idaho Power with the generation system 7 production data to evaluate the potential economics of 8 installing on-site generation. 9 Idaho Power also understands that its customers are 10 considering considerable investments and strives to provide 11 tools to them where possible. For residential and small general 12 service customers, Idaho Power plans to provide its customers 13 access to a third-party calculator tool on Idaho Power’s 14 website. The calculator will provide the option to use uploaded 15 hourly consumption data in calculations, or a customer can use 16 an estimate of their monthly electric costs if they don’t have 17 twelve months of billing history, or an average electric bill if 18 they have no billing history. For CI&I customers, Idaho Power’s 19 Energy Advisors, and Agriculture Representatives will continue 20 to make additional information available to its customers. 21 Q. In your opinion, does the Company’s plan for 22 customer communication and outreach position it to successfully 23 implement a net billing compensation structure? 24 ANDERSON, DI 27 Idaho Power Company A. Yes. Idaho Power’s customer relations teams have 1 been thorough and diligent in developing communication 2 strategies and evaluating the option to make a calculator tool 3 available to its customers. Customers can understand real-time 4 net billing, and it is the most accurate and fair measurement of 5 energy flows to and from the customer. 6 The Company endeavors to properly notify all current and 7 prospective on-site generation customers of its proposed changes 8 by sending direct-mail letters and bill inserts. Post-9 implementation, it is also critical to the long-term success of 10 the on-site generation service offering that Idaho Power provide 11 consumption and export information that allows existing 12 customers to understand the bi-directional relationship and 13 impacts on billing. Additionally, prospective on-site generation 14 customers need access to the necessary data and tools to make 15 the most informed and decision based on accurate information – 16 while understanding that the Company’s tariff is subject to 17 change. Idaho Power’s plans for customer communication, billing 18 presentment, and a calculator tool will facilitate a successful 19 shift towards an improved and modernized compensation structure 20 for on-site customer generation. 21 IV. PROPOSED TARIFF REVISIONS 22 Q. What tariff revisions are necessary to implement 23 the Company’s proposal? 24 ANDERSON, DI 28 Idaho Power Company A. Revisions to Schedules 6, 8, 68, and 84 are 1 necessary to implement the proposed changes in this docket. The 2 Company has included its proposed tariff revisions in Attachment 3 2 to the Application in this docket. 4 Q. Please explain what tariff revisions the Company 5 has proposed for Schedules 6 and 8. 6 A. The Company has included tariff revisions to 7 reflect the change in compensation structure for non-legacy 8 systems from NEM to real-time net billing. The tariff revisions 9 lay out the compensation structure that would be separately 10 applicable to customers with legacy and non-legacy systems. The 11 “conditions to purchase and sale” have been separated into three 12 sections. The first are those provisions that only apply to 13 legacy systems under the NEM compensation structure and the 14 second are those provisions that only apply to non-legacy 15 systems under the proposed net billing compensation structure. 16 The third section includes provisions that broadly apply to all 17 customers taking service under Schedule 6 and 8. The revised 18 tariff also includes line items for the ECR applicable to non-19 legacy systems, and specifies the proposed change in the 20 administration of energy storage devices towards the 25 kW cap. 21 Finally, the Company has proposed a few minor operational 22 administrative items. 23 Q. Please summarize the revisions the Company has 24 proposed for Schedule 84. 25 ANDERSON, DI 29 Idaho Power Company A. The proposed revisions to Schedule 84, similar to 1 those for Schedules 6 and 8, account for a modification to the 2 service offering from NEM to real-time net billing for customers 3 with non-legacy systems and the administration of energy storage 4 devices. In addition, the revisions to Schedule 84 define the 5 modification to the project eligibility cap for non-legacy 6 systems. 7 Q. What revisions has the Company proposed for 8 Schedule 68? 9 A. As more fully explained in Mr. Ellsworth’s 10 testimony, the Company has included modifications to update the 11 interconnection requirements for Schedule 84 customers that 12 install systems larger than 100 kW. Schedule 68 also reflects 13 minor administrative updates for the interconnection process. 14 V. PROPOSED SCHEDULE FOR ECR UPDATES 15 Q. Mr. Ellsworth’s testimony describes the Company’s 16 proposed methodology for establishing an ECR and methods the 17 Company is proposing for valuing each of the components of the 18 ECR. What is the Company’s proposed timing and frequency for 19 updating the ECR? 20 A. The Company recommends an annual ECR update filed 21 in April, where Commission-approved updates would take effect 22 June 1 each year, concurrent with other spring filing and 23 seasonal rate changes. The primary driver for the proposed 24 update schedule is to ensure that Energy Imbalance Market Load 25 ANDERSON, DI 30 Idaho Power Company Aggregation Point (“ELAP”) hourly prices have been disputed and 1 reconciled. The Company also believes it is important from a 2 timing perspective to have the effective ECR changes occur in 3 June in advance of the summer season. 4 Q. Please describe the Company’s proposed update cycle 5 for each of the respective methods and components of the ECR. 6 A. The Company has identified updates for the proposed 7 methods as fitting into two general categories: (1) annual 8 updates, and (2) routine updates less frequent than annual. The 9 routine updates that are less frequent than annual are informed 10 by other filings or studies, such as Idaho Power’s Integrated 11 Resource Plan (“IRP”). Table 1 provides a summary of each of the 12 inputs to the ECR and the proposed update cadence. Annual 13 updates will rely on data from the most recent twelve months 14 ending December 31 and routine updates will rely on the most 15 recently available information at the time of its annual filing 16 to update the ECR. 17 // 18 19 20 21 22 23 24 25 ANDERSON, DI 31 Idaho Power Company Table 1 1 ECR Proposed Update Schedule by Input 2 3 Q. How does the Company propose to update the avoided 4 energy component of the ECR? 5 A. The avoided energy value would be updated annually 6 using the most recent 12 months, ending December 31, for both 7 customer-generator exports and ELAP prices. ELAP hourly settled 8 price corrections are typically available within approximately 9 60 days – this timing, in part, drives the Company’s proposed 10 update schedule to file in April of each year. 11 Q. How does the Company propose to update the avoided 12 generation capacity component of the ECR? 13 A. The avoided generation capacity calculation would 14 be updated annually to reflect real-time customer exports and 15 Input ECR Component Type of Update Real-Time Exports 12 months ending Dec 31 Avoided Energy; Avoided Generation Capacity Annual ELAP Hourly Market Prices 12 months ending Dec 31 Avoided Energy Annual Contribution Capacity - ELCC 3-year rolling average Avoided Generation Capacity Annual Peak Annual Exports Total MW Avoided Generation Capacity Annual Levelized Cost of Avoided Resource Cost per kW-year Avoided Generation Capacity Routine - Most recently filed IRP Hours of Capacity Need On-Peak Hours Avoided Energy; Avoided Generation Capacity Routine - Most recently filed IRP Transmission & Distribution Deferral Annual Deferral Value Avoided Transmission & Distribution Capacity Routine - Most recently filed IRP Line Loss Study Loss Coefficients Avoided Line Losses Routine - Updated with periodic line loss study Variable Energy Resource Integration Study Integration Costs Routine - Updated with periodic VER Study ANDERSON, DI 32 Idaho Power Company peak annual export for the most recent calendar year. As 1 described by Mr. Ellsworth, the ECR would utilize a three-year 2 rolling average ELCC calculation to mitigate year-to-year 3 volatility. The annual update would rely on the most-recently 4 filed IRP for defining the on-peak hours and the value of the 5 levelized cost of the avoided resource. 6 Q. Please describe how the Company plans to update the 7 T&D capacity value. 8 A. The annual update for the T&D capacity value 9 component of the ECR will reference the most recently filed IRP. 10 The calculation of the T&D capacity value relies on the same 20 11 years of project data that are used to determine IRP energy 12 efficiency values. This data includes 15 years of historical 13 data and 5 years of projected data. 14 Q. How does the Company propose to update the avoided 15 line loss value to inform the proposed annual ECR updates? 16 A. The annual update for the ECR will rely on the most 17 recently completed line loss study. Line loss studies are 18 comprised of extensive analyses and are not performed on a 19 frequent basis; however, line losses are expressed as 20 percentages, which do not significantly vary over time. 21 Therefore, the periodic update of the input is reasonable and 22 will not negatively impact customer-generators or non-23 participants. 24 ANDERSON, DI 33 Idaho Power Company Q. How does the Company propose to update the 1 integration costs in the ECR annual update? 2 A. The annual ECR update will rely on the most 3 recently completed VER Integration Study. As explained in Mr. 4 Ellsworth’s testimony, integration studies are completed 5 periodically, based on current and expected variable non-6 dispatchable resources on the Company’s system. The annual 7 update would incorporate updated integration costs into the ECR 8 in the annual update subsequent to completion of the next VER 9 Integration Study. 10 VI. CONCLUSION 11 Q. Does the Company’s proposal to modify the Schedule 12 84 project eligibility cap, other implementation considerations, 13 and the proposed schedule for ECR updates meet the Company’s 14 primary objectives in this case? 15 A. Yes. The Company’s objectives provide the 16 foundation for proposing changes to the project eligibility cap 17 and excess energy transfer process that will provide additional 18 flexibility and opportunities for customers to install on-site 19 generation. The proposed schedule for ECR updates is repeatable 20 and will ensure timely recognition of changing conditions on 21 Idaho Power’s system and the broader power markets. Last, the 22 proposed tariff revisions and planned customer education and 23 outreach regarding a change to a net billing compensation 24 structure provide for enhanced customer understandability. 25 ANDERSON, DI 34 Idaho Power Company Q. Does this conclude your testimony? 1 A. Yes. 2 // 3 ANDERSON, DI 35 Idaho Power Company DECLARATION OF Grant T. Anderson 1 I, Grant T. Anderson, declare under penalty of perjury 2 under the laws of the state of Idaho: 3 1. My name is Grant T. Anderson. I am employed by 4 Idaho Power Company as Regulatory Consultant in the Regulatory 5 Affairs Department. 6 2. On behalf of Idaho Power, I present this pre-7 filed direct testimony in this matter. 8 3. To the best of my knowledge, my pre-filed direct 9 testimony and exhibits are true and accurate. 10 I hereby declare that the above statement is true to the 11 best of my knowledge and belief, and that I understand it is 12 made for use as evidence before the Idaho Public Utilities 13 Commission and is subject to penalty for perjury. 14 SIGNED this 1st day of May 2023, at Boise, Idaho. 15 16 17 Signed: _______________________ 18 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION CASE NO. IPC-E-23-14 IDAHO POWER COMPANY ANDERSON, DI TESTIMONY EXHIBIT NO. 6 Schedule 6 - Residential On-Site Generation Non-Le ac Bill Impact Average Energy Delivered/Imported Average Energy Received/Exported Average Bill Impact Energy Delivered Energy Exported Avg. Monthly Bill Category Count NEM Net Billing Category Count NEM Net Billing Category Count NEM Net Billing 0 kWh 642 0 524 0 kWh 642 289 672 0 kWh 642 5.00$ 11.56$ 1 ≤ 500 kWh 2,123 211 686 1 ≤ 500 kWh 2,123 103 475 1 ≤ 500 kWh 2,123 22.50$ 34.88$ 500 ≤ 900 kWh 563 672 1,163 500 ≤ 900 kWh 563 64 491 500 ≤ 900 kWh 563 62.38$ 76.23$ 900 ≤ 1,300 kWh 197 1,078 1,623 900 ≤ 1,300 kWh 197 63 545 900 ≤ 1,300 kWh 197 99.31$ 115.60$ 1,300 ≤ 1,700 kWh 110 1,486 2,060 1,300 ≤ 1,700 kWh 110 57 574 1,300 ≤ 1,700 kWh 110 137.46$ 155.75$ 1,700 kWh+119 2,491 2,964 1,700 kWh+119 20 473 1,700 kWh+119 235.01$ 251.90$ All Customers 3,754 399 891 All Customers 3,754 123 517 All Customers 3,754 39.63$ 51.75$ 399 891 NEM Net Billing Average Energy Delivered/Imported 0 211 672 1,078 1,486 2,491 524 686 1,163 1,623 2,060 2,964 0 kWh(642 customers)1 ≤ 500 kWh (2,123 customers)500 ≤ 900 kWh (563 customers)900 ≤ 1,300 kWh (197 customers)1,300 ≤ 1,700 kWh (110 customers)1,700 kWh+(119 customers) Average Net Monthly kWh Delivered Average Energy Delivered NEM Net Billing 123 517 NEM Net Billing Average Energy Received/Exported $39.63 $51.75 NEM Net Billing Average Bill Impact 289 103 64 63 57 20 672 475 491 545 574 473 0 kWh(642 customers)1 ≤ 500 kWh (2,123 customers)500 ≤ 900 kWh (563 customers)900 ≤ 1,300 kWh (197 customers)1,300 ≤ 1,700 kWh (110 customers)1,700 kWh+(119 customers) Average Net Monthly kWh Delivered Average Energy Received/Exported NEM Net Billing $5 $23 $62 $99 $137 $235 $12 $35 $76 $116 $156 $252 0 kWh(642 customers)1 ≤ 500 kWh (2,123 customers)500 ≤ 900 kWh (563 customers)900 ≤ 1,300 kWh (197 customers)1,300 ≤ 1,700 kWh (110 customers)1,700 kWh+(119 customers) Average Net Monthly kWh Delivered Average Monthly Bill Impact NEM Net Billing Exhibit No. 6 Case No. IPC-E-23-14 G. Anderson, IPC Page 1 of 1 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION CASE NO. IPC-E-23-14 IDAHO POWER COMPANY ANDERSON, DI TESTIMONY EXHIBIT NO. 7 Schedule 8 - Small General Service On-Site Generation Non-Le ac Bill Impact Average Energy Delivered/Imported Average Energy Received/Exported Average Bill Impact Energy Delivered Energy Exported Avg. Monthly Bill Category Count NEM Net Billing Category Count NEM Net Billing Category Count NEM Net Billing 0 kWh 6 - 439 0 kWh 6 652 943 0 kWh 6 5.00$ 10.09$ 1 ≤ 200 kWh 4 100 631 1 ≤ 200 kWh 4 191 532 1 ≤ 200 kWh 4 15.02$ 38.36$ 200 ≤ 400 kWh 1 248 1,248 200 ≤ 400 kWh 1 517 1,000 200 ≤ 400 kWh 1 30.32$ 61.25$ 400 ≤ 600 kWh - - - 400 ≤ 600 kWh - - - 400 ≤ 600 kWh - -$ -$ 600 ≤ 800 kWh - - - 600 ≤ 800 kWh - - - 600 ≤ 800 kWh - -$ -$ 800 kWh+2 989 1,357 800 kWh+2 11 368 800 kWh+2 108.75$ 126.72$ All Customers 13 202 702 All Customers 13 401 732 All Customers 13 25.99$ 40.67$ 202 702 NEM Net Billing Average Energy Delivered/Imported -100 248 - - 989 439 631 1,248 - - 1,357 0 kWh(6 customers)1 ≤ 200 kWh (4 customers)200 ≤ 400 kWh (1 customers)400 ≤ 600 kWh (0 customers)600 ≤ 800 kWh (0 customers)800 kWh+(2 customers) Average Net Monthly kWh Delivered Average Energy Delivered NEM Net Billing 401 732 NEM Net Billing Average Energy Received/Exported $25.99 $40.67 NEM Net Billing Average Bill Impact 652 191 517 - -11 943 532 1,000 - - 368 0 kWh(6 customers)1 ≤ 200 kWh (4 customers)200 ≤ 400 kWh (1 customers)400 ≤ 600 kWh (0 customers)600 ≤ 800 kWh (0 customers)800 kWh+(2 customers) Average Net Monthly kWh Delivered Average Energy Received/Exported NEM Net Billing $5 $15 $30 $- $- $109 $10 $38 $61 $- $- $127 0 kWh(6 customers)1 ≤ 200 kWh (4 customers)200 ≤ 400 kWh (1 customers)400 ≤ 600 kWh (0 customers)600 ≤ 800 kWh (0 customers)800 kWh+(2 customers) Average Net Monthly kWh Delivered Average Bill Impact NEM Net Billing Exhibit No. 7 Case No. IPC-E-23-14 G. Anderson, IPC Page 1 of 1 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION CASE NO. IPC-E-23-14 IDAHO POWER COMPANY ANDERSON, DI TESTIMONY EXHIBIT NO. 8 Schedule 9/84 - Large General Service On-Site Generation Non-Legacy Bill Impact Average Energy Delivered Average Energy Received/Exported Average Bill Impact Energy Delivered Energy Exported Avg. Monthly Bill Category Count NEM Net Billing Category Count NEM Net Billing Category Count NEM Net Billing 0 kWh 2 - 556 0 kWh 2 2,990 3,505 0 kWh 2 16.00$ 16.00$ 1 ≤ 500 kWh 2 299 841 1 ≤ 500 kWh 2 152 542 1 ≤ 500 kWh 2 43.86$ 61.29$ 500 ≤ 900 kWh 2 648 2,349 500 ≤ 900 kWh 2 752 1,701 500 ≤ 900 kWh 2 60.03$ 76.52$ 900 ≤ 1,300 kWh 1 1,209 1,638 900 ≤ 1,300 kWh 1 73 429 900 ≤ 1,300 kWh 1 117.57$ 131.40$ 1,300 ≤ 1,700 kWh 1 1,615 2,684 1,300 ≤ 1,700 kWh 1 231 1,069 1,300 ≤ 1,700 kWh 1 135.77$ 152.49$ 1,700 kWh+- - - 1,700 kWh+- - - 1,700 kWh+- -$ -$ All Customers 8 590 1,477 All Customers 8 1,011 1,624 All Customers 8 61.64$ 73.94$ 590 1,477 NEM Net Billing Average Energy Delivered -299 648 1,209 1,615 - 556 841 2,349 1,638 2,684 - 0 kWh (2 customers)1 ≤ 500 kWh (2 customers)500 ≤ 900 kWh (2 customers)900 ≤ 1,300 kWh (1 customers)1,300 ≤ 1,700 kWh (1 customers) 1,700 kWh+ (0 customers) Average Net Monthly kWh Delivered Average Energy Delivered NEM Net Billing 1,011 1,624 NEM Net Billing Average Energy Received/Exported $61.64 $73.94 NEM Net Billing Average Bill Impact 2,990 152 752 73 231 - 3,505 542 1,701 429 1,069 - 0 kWh(2 customers)1 ≤ 500 kWh (2 customers)500 ≤ 900 kWh (2 customers)900 ≤ 1,300 kWh (1 customers)1,300 ≤ 1,700 kWh (1 customers)1,700 kWh+(0 customers) Average Net Monthly kWh Delivered Average Energy Received/Exported NEM Net Billing $16 $44 $60 $118 $136 $-$16 $61 $77 $131 $152 $- 0 kWh(2 customers)1 ≤ 500 kWh (2 customers)500 ≤ 900 kWh (2 customers)900 ≤ 1,300 kWh (1 customers)1,300 ≤ 1,700 kWh (1 customers)1,700 kWh+(0 customers) Average Net Monthly kWh Delivered Average Bill Impact NEM Net Billing Exhibit No. 8 Case No. IPC-E-23-14 G. Anderson, IPC Page 1 of 1