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Home My WebLink About20030227Sonja Ling Direct.pdfWilliam M. Eddie ISB#5800 ADVOCATES FOR THE WEST O. Box 1612 Boise ID 83701 (208) 342-7024 fax: (208) 342-8286 billeddie~rmci.net Express mail address: 1320 W. Franklin St. Boise ID 83702 ,-' r- r. r 1\ i\ C. L. (,1 '( ...--. l!J 7f11l') ~p ? 'I""u\.;.) !....,) '- ;n" :!~ :,,!C UTIliTIES COi-'jf"HSSION BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF THE PETITION OF NW ENERGY COALITION AND RENEWABLE NORTHWEST PROJECT TO ESTABLISH NET METERING SCHEDULES FOR PACIFICORP. Case No. P;jt:/:.-::tt j-rP DIRECT TESTIMONY OF SONJA LING FEBRUARY 27 2003 PLEASE STATE YOUR NAME, ADDRESS , AND EMPLOYMENT. My name is Sonja Ling. I have been a policy associate for the Renewable Northwest Project since March 2001. RNP is located at 917 SW Oak, Suite 303 , Portland Oregon, 97205. Established in 1994, the Renewable Northwest Project is a unique coalition of environmental groups, consumer groups, and energy companies promoting the implementation of new renewable resources in the Pacific Northwest. We have three strategic objectives: getting renewable projects in the ground, developing and promoting renewable energy policies, and marketing green power. PLEASE OUTLINE YOUR EDUCATIONAL BACKGROUND AND PROFESSIONAL EXPERIENCE. I received a Masters of Science in Environmental Change and Management from the Oxford University in 2000. I have expertise in off-grid solar photovoltaic applications in developing countries. My responsibilities at RNP are to: participate in proceedings to site new renewable facilities in the region, represent RNP in proceedings before state regulatory commissions, and write testimony and reports on critical energy and environmental issues related to renewable resources. Proj ect. ON WHOSE BEHALF ARE YOU TESTIFYING? I am testifying on behalf ofNW Energy Coalition and Renewable NOlihwest WHAT IS THE PURPOSE OF YOUR TESTIMONY IN THIS PROCEEDING? Ling, Sonj NW Energy Coalition, et al. The purpose of my testimony is to address certain policy and regulatory issues regarding the regulation of net metering for customers ofPacifiCorp s Utah Power & Light territory in eastern Idaho. WHA T MATERIALS HAVE YOU REVIEWED IN PREP ARA TION FOR THIS TESTIMONY? I reviewed Idaho Power Company s "Schedule 84 " which was approved by the Commission in 2002. PLEASE DESCRIBE NET METERING. Net metering is the installation, and interconnection to the electric grid, of small renewable energy systems (i.e. solar, wind, or micro hydroelectric) by customers of an electric utility. Through net metering, customers are able to offset their own energy uses and receive credit from their electric utility for any excess power they generate beyond what they consume. Although net metered energy systems in the United States account for only a tiny fraction of total energy produced, net metering should be encouraged by regulators and utilities for several reasons. First, net metering is an "energy solution" for customers faced with rising energy prices, and allows customers to take advantage of the renewable energy resources on thei own property. Second, technological improvements have made net metering equipment safe and reliable for interconnection to the electric grid. Placement of net metered and other distributed generation systems at or near loads enhances grid efficiency and reliability. Net metering is thus a "win win" for both customers and utilities. Thirty-six states have adopted some form of net metering law. In the western region, Oregon, Washington, Montana, Nevada, Wyoming, California, and Utah, legislatures have passed net metering laws. Ling, Sonj NW Energy Coalition, et al. WHY IS IT IMPORTANT TO ESTABLISH CLEAR AND SIMPLE STANDARDS TO REGULA TE NET METERING? In key respects, small-scale renewable systems act much like energy conservation to reduce a household', farm , or business s reliance on outside sources of power. But small- scale renewable energy systems are often treated far differently and less fairly. Some utilities have created barriers that make it prohibitive to install them, or some have simply treated consumers on a case-by-case basis for contract negotiation, which is a daunting prospect for many consumers. In short, consumers often find it administratively and financially prohibitive to connect solar panels, small wind turbines, or micro-hydro systems to the grid. These barriers discourage private investment in clean energy resources and impede early adoption of distributed technologies. Differing standards from utility to utility make the potential economies of standardization impossible to achieve. Market growth sufficient to create economies of scale and lower prices for small renewable systems is being constrained. It is critical that all utilities offer simplified standards to encourage private investments in small-scale renewable resources by homeowners and businesses.Net metering standards should: (1) Create simple, standardized protocols for connecting solar, small wind or micro hydroelectric systems into the electricity grid that ensure safety, reliability and power quality; (2) Allow consumers to apply the excess generation credit against the next month's power bill from the utility; (3) Encourage investments in small systems by giving the consumer credit for any excess generation at the same rate the utility charges the consumers; and, (4) Simplify metering issues to avoid accounting costs for utilities and consumers. DO YOU BELIEVE THAT IDAHO POWER COMPANY'S SCHEDULE 84 PRESENTS A SOUND MODEL FOR P ACIFICORP? PLEASE EXPLAIN YOUR ANSWER. Ling, Sonj NW Energy Coalition, et al. 02/27/2003 13: 25 5032234554 RENEWABLENW PAGE 01 Page 2/2Sent By: ADVOCATES FOR THE WESTj 208 342 B266;Feb.27-03 1 :31PM; Ai For smaller customers, yes. With respect to net metering for residential and smal business i~stomers Idaho Power s Schedule 84 ~vjdes for adequate system size (up to 25 kW) and create!s an economically viable billing system ~lIowjng customcr~ to carryover a financial credil for ~xcess kilowatt-hours from moT1th-to-m~nth at thc customer s retail rate. For larger customers, Idaho Power s Schc~\lle 84 hItS advantagef'i and disaclvanlage~. sigl1i1icani positive aspect oflhe Schedule is its a110wance for installation of systems up to 100 kW in siz~. Th;s size limitation allows for most l~rge customers of the utility to take advantage of net me~ring and meaningfully offset their consjumption. However, the billing system set out in Schcdu~c 84 for larger customers is disadvanta,Jeous. Becau::;c: (he Schedule credits customers:' excess monthly generation at 85% of ~voided cost - all extremely low rate - jrrigation fustomers arc unlikely to be able to fina~oe net metered generation systems. in ~eekjng to establish a net metering prot~col for PacifiCorp, I bcli~vc it is imporwnL that the C~mmission seek comment on this issue ~om th~ ilTigation community. Rural lalldownei's -- inchlding rancheni, f!l.rmcrs, and other irrigators - ure most likely to benefit from an ~bun~cc of sun, wind, and other resources that can be harnessed and converted to clean, rencwabl~ electricity. DOES THAT CONCLUDE YO~ TESTIMONY? Yes, it does. r thank the Commissi~n for the opponunity to submit this testimon . .22 Ling, Son NW Energy CoRlitio)1, et For smaller customers, yes. With respect to net metering for residential and small business customers Idaho Power s Schedule 84 provides for adequate system size (up to 25 kW) and creates an economically viable billing system allowing customers to carryover a financial credit for excess kilowatt-hours from month-to-month at the customer s retail rate. For larger customers, Idaho Power s Schedule 84 has advantages and disadvantages. On significant positive aspect of the Schedule is its allowance for installation of systems up to 100 kW in size. This size limitation allows for most large customers of the utility to take advantage of net metering and meaningfully offset their consumption. However, the billing system set out in Schedule 84 for larger customers is disadvantageous. Because the Schedule credits customers' excess monthly generation at 85% of avoided cost - an extremely low rate- irrigation customers are unlikely to be able to finance net metered generation systems. In seeking to establish a net metering protocol for PacifiCorp, I believe it is important that the Commission seek comment on this issue from the irrigation community. Rural landowners -- including ranchers, farmers , and other irrigators -- are most likely to benefit from an abundance of sun, wind, and other resources that can be harnessed and converted to clean renewable electricity. DOES THAT CONCLUDE YOUR TESTIMONY? Yes, it does. I thank the Commission for the opportunity to submit this testimony. Dated this 27th day of February, 2003 Sonja Ling Ling, Sonj NW Energy Coalition, et al.