20190614Customer Letter and News Release.pdf

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New net metering tariff proposed for ldaho customers
BOISE,Idaho, june 14,2019-Rocky Mountain Power is proposing closing the company's net
metering program to new applicants for Idaho customers. The proposal includes creating a
successor program for new residential customers who choose to generate their own electricity while
continuing to use Rocky Mountain Powet's network.
Rocky Mountain Power also requests that the Idaho Public Utilities Commission determine the
value of excess energy provided to the company from customers who choose to own their own
generating facilities. Further, the company proposes that the commission approve a lO-year
transition period for existing customers on Schedule 135, Net Metering Service, to move to the new
tarrtf, Schedule 136, Net Billing Service.
"Rocky Mountain Power's analysis demonstrates that the current treatment of net metering
customers unfairly shifts costs to non-net metering customers," said Joelle Steward, vice president.
"The present retail rate design collects 89 percent of the fixed costs to serve customers through the
kilowatt-hour or energy charge, resulting in a net metering progam that fails to cover the true costs
of providing the service. These costs include maintaining and operating the electric network, billing
and other customer service functions separate from the energy provided. As a result, those costs are
shifted to other customers who have not chosen to generate their own power. Compensation at the
retail rate for generation exported to the grid is significantly more expensive than other sources of
power available for our customers."
Rocky Mountain Power stated in its pre-filed testimony that the existing net metering pro$am
pays custorners the fuIl retail rate for power they generate and provide back onto the grid. Current
energy policy has designed rates to create incentives for energy efficienry, so average retail energy
charges for net metering customers range fuom'1,4.94 cents per-kilowatt hour to 3.99 cents per
kilowatt-hour. However, the actual value of the energy from customer onsite generation is only
2.48 cents per kilowatt-hour.
The company estimates the total compensation for customer-generated energy under the current
Net Metering progam is 12.5 cents per kilowatt-hour. Under the proposed Net Billing program, the
total compensation for generated energy for the typical residential customer generator would be
8.5 cents per kilowatt-hour. Under the current prograrn, a typical residential customer generator
could have a simple payback on their system in about 9.6 years. Under the proposed program, the
same system could have a simple payback period of about 74.4years.
Any changes to existing rates or programs must be approved by the Idaho Public Utilities
Commission before taking effect. The company proposes that the current prograrn/ Schedule 135,
Net Metering Service, would be closed to new applications after December 37,2079; and that the a
new prograrn, Schedule 136, Net Billing Service, could become effective February 1,2020.
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For residential and smaller customers, most of the fixed costs to pay for and maintain the utility
grid for everyone are induded in the basic kilowatt-hour energy drarge. Because residential net
metering customers generate much of their own energ.y, but still use the utility grid most of the
time, their total billing no longer covers the true cost to provide these services to them. A cost-of-
service study presented as part of the request shows that every residential customer who
intercormects a customer generation system shifts approximately $378 of costs per year to other
customers. With no change to the net metering program, the level of subsidy will continue to
increase with each new system installed. The potential for a subsidy flowing from residential
customers to net metering customers was anticipated by the Idaho Commission staff in 2003, who
asked the company to monitor and provide periodic reporting on the cost-shifting.
The public will have an opportunity to comment on the proposal during the coming months as the
commission studies the company's request. The commission must approve the proposed dranges
before they can take effect. A copy of the company's application is available for public review on
the commission's website. Customers may also subscribe to the commission's RSS feed to receive
periodic updates via email. The request also is available at the company's offices in Rexburg,
Prestoru Shelley and Montpelier as noted below; and on the company's website at:
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Idaho Public Utilities Commission
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472W. Washington
Boise, ID 83702
Rockv Mountain Power offices
. Rexburg- 127 East Main
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CUSTOMER LETTER
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1407W*st NorthTemple
Salr Lake Ciq., Utah 841 16
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<<Mail date>>
<<Customer name>>
<<Mailing AddresP>
<<City, State, Zip>>
Dear <<Customer name)),
Thank you for your interest in renewable energy and for participating in our net metering program. Our
company shares your commitment to maintaining a sustainable environment for fufure generations. This
letter is to inform you that Rocky Mountain Por.ver is proposing changes to the company's net metering
progrrm for Idaho customers. The proposal includes creating a successor program for new customer
generators who choose to generate their own electricity while continuing to use Rocky Mountain Poler's
network.
Rocky Mountain Power is proposing that existing customer generators such as you rvould be able to stay
on the existing net metering program for a roughly ten year period until June I - 2029. Ultimately, the
Idaho Public Utilities Commission could approve a different period of time under which the net metering
program remains available.
Rocky Mountain Power's proposal must be approved by the Idaho Public Utilities Commission before
taking effect. The net metering prograrn is subject to the Idaho Public Utilities Commission's public
processes. For more information on the filing. visit rockymountainpower.net/regulation.
Sincerely,
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Gary Hoogeveen
President and CEO