PAC Net Billing Workshop Staff Presentation.pdf

Public Workshop
Rocky Mountain Power
Application to Close Net Metering and
Implement Net Billing
Case No. PAC-E-19-08
Idaho Public Utilities Commission Staff
June 18, 2020
Introductions
Stacey Donohue –Technical Analysis Manager
Adam Rush –Public Information Officer
Mike Morrison –Engineer
Ed Jewell –Deputy Attorney General
Rachelle Farnsworth –Utility Analyst
Kevin Keyt –Utility Analyst
Joe Terry –Auditor
Chris Hecht –Consumer Assistance
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Participation
Online:
Type questions and comments in the chat box. Please direct
questions to the panelist.
To speak, click the hand in the lower right corner.
On the phone:
*3 is the command to raise and lower your hand. You’ll hear
two beeps when you are unmuted.
We will present the slides first, take questions/comments
on specific topic areas next, and then ask for additional
feedback on any other issues at the end.
*This workshop is being recorded.*
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Workshop Purpose
Explain case process and timeline.
Explain how to submit comments for the case record.
Outline Rocky Mountain’s Application.
Explain Staff’s preliminary comments filed May 26.
Solicit Feedback on Staff’s preliminary comments.
Solicit ideas for additional issues to be considered
in the study design phase.
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The Idaho Public Utilities Commission
Established in 1913.
The IPUC regulates Idaho’s investor-owned utilities,
ensuring adequate service and reasonable rates.
The Commission is made up of three appointed
commissioners. They make the decisions.
The Commission Staff is conducting this workshop.
We are one of the parties in the case presenting
evidence to the commissioners to help establish the
case record.
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Case Process
Rocky Mountain Power will conduct a comprehensive study
analyzing the costs and benefits of net metering.
The Commission will base decisions about program
changes on the case record and the study.
Phase 1: Study Design & Grandfathering
Customers & parties comment on issues to be studied and if
grandfathering is appropriate.
Commission issues order directing Rocky Mountain Power on the
scope and methods of the study and possibly grandfathering.
Rocky Mountain conducts the study and submits it for review.
Phase 2: Study Review
Customers & parties comment on whether the study addressed their
concerns and share opinions on the study results.
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Phase 1 Timeline
May 26: Staff and intervenors filed preliminary
comments on study design
June 16: Rocky Mountain Power workshop
June 18: Staff workshop
June 22: Public hearing with Commissioners
July 2: Revised comments on study design &
grandfathering due
July 16: Customer and reply comments on
study design & grandfathering due
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Important Note
This workshop is not part of the official case record.
To have comments included in the official record:
Testify at the Commission’s public hearing (telephonic)
on June 22, 2020 at 3pm:
call 1-800-920-7487 and enter passcode 6674832#
File written comments on the study design and
grandfathering by July 16, 2020
Submit written comments on the Commission home page at
www.puc.idaho.gov. Under “Consumers,” click “Case
Comment Form,” and use Case No. PAC-E-19-08.
Or email comments to [e-mail]
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Rocky Mountain Power’s
Application (1 of 3)
RMP states that net metering customers are being
subsidized by non-net metering customers for energy
exported to the grid.
Close Schedule 135 (Net Metering) to new customers
on July 31, 2020.
New customers must apply for service under Schedule
135 by August 1, and then have one year to interconnect.
Existing net metering customers stay on Schedule 135
until July 31, 2030 (10-year grandfathering period).
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Rocky Mountain Power’s
Application (2 of 3)
Open Schedule 136 (Net Billing) on September 1, 2020.
Sch. 136 customers would get Export Credit Rate
(ECR) instead of the retail rate for exported energy.
ECR would be set at the retail rate until a change is
approved by the Commission, based on the
comprehensive study and the record in this case.
$85 application fee for new customer-generators.
Unused Export Credits would expire annually.
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Rocky Mountain Power’s
Export Credit Rate Proposal (3 of 3)
Avoided energy: 1.9 cents/kWh
Based on SAR method with on/off peak pricing
Includes 85% valuation for non-firm energy
Avoided line losses: 0.33 cents/kWh
Based on RMP’s system losses study
Integration costs: <0.025 cents/kWh>
Based on RMP’s Flexible Resource Study (2019 IRP)
Total ECR: 2.23 cents/kWh
Updated annually
ECRs funded by all customers through an annual rate
mechanism (ECAM)
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Staff’s Preliminary Comments
(1 of 3)
Quantify the subsidy from non-net metering customers to
net metering customers under a range of ECR values and
grandfathering terms.
Grandfather existing Sch. 135 customers for 25 years at the
customer site.
aligns with Commission order for Idaho Power
customers
Consider a transition period from retail rate to ECR for new
customers in addition to grandfathering.
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Staff’s Preliminary Comments
(2 of 3)
Verify costs included in the $85 application fee.
Some concern about basing ECR on modeled data.
More fully explain pre-AMI billing system.
Calculate value of annual unused export credit expiration.
Study bi-annual energy credit updates.
Study RMP’s Utah smart inverter policy for use in Idaho.
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Staff’s Preliminary Comments
(3 of 3)
Export Credit Rate study should analyze:
Avoided energy value using IRP energy assumptions
Provide evidence supporting 85% non-firm valuation
Avoided capacity value
Study using LOLP or measure exports during peak events
Avoided line losses
RMP’s method appears reasonable
Integration costs
Study based on residential net metering
Set at zero until Sch. 135/236 export data is available
Avoided transmission and distribution costs
Avoided environmental costs 14
What Do You Think?
Quantify the subsidy from non-net metering
customers to net metering customers under a
range of ECR values and grandfathering terms.
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What Do You Think?
Grandfather existing Sch. 135 customers for 25
years at the customer site.
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What Do You Think?
A transition period from retail rate to ECR for new
net metering customers in addition to
grandfathering for existing customers.
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What Do You Think?
Study costs included in the $85 application fee.
Basing the ECR on modeled data.
More fully explain pre-AMI billing system.
Calculate value of annual unused export credit
expiration.
Study bi-annual energy credit updates.
Study RMP’s Utah smart inverter policy for use in
Idaho. 18
What Do You Think?
Export Credit Rate study should analyze:
Avoided energy value using IRP energy assumptions
Provide evidence supporting 85% non-firm valuation
Avoided capacity value
Study using LOLP or measure exports during peak events
Avoided line losses
Integration costs
Study based on residential net metering.
Set at zero until Sch. 135/236 export data is available.
Avoided transmission and distribution costs
Avoided environmental costs
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What Do You Think?
What else should be included in the
comprehensive study of net metering costs and
benefits?
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Comments for the Official Record
Testify at the Commission’s telephonic public hearing
on June 22, 2020 at 3pm:
call 1-800-920-7487 and enter passcode 6674832#
File written comments on the study design and
grandfathering by July 16, 2020
Submit written comments on the Commission home
page at www.puc.idaho.gov. Under “Consumers,” click
“Case Comment Form,” & use Case No. PAC-E-19-08.
Or email comments to [e-mail]
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Thank You
Idaho Public Utilities Commission
[phone]