181107 onsite generation IPC.pdf

Case No. IPC-E-18-15 and IPC-E-18-16
Contact: Matt Evans
Office: [phone]
Cell: [phone]
[e-mail]
Intervenor deadline set in Idaho Power case
involving on-site generation, written
comments accepted
BOISE (Nov. 7, 2018) – State regulators have set a deadline for parties to intervene in an
Idaho Power case involving the study of on-site generation.
The study is intended to identify the costs and benefits of on-site generation – primarily
rooftop solar but any customer-owned generation source – on Idaho Power’s system, and
to determine how those factors should be reflected in rates, rate design and compensation
for excess energy.
The deadline to intervene is Nov. 26.
The Idaho Public Utilities Commission directed Idaho Power to undertake the study in a
decision issued in May that also made changes to Idaho Power’s net metering program, for
customers who generate their own energy.
In its order in that case, IPC-E-17-13, the Commission found that Idaho Power customers
with on-site generation have significantly different load and usage characteristics than
customers who are unable to export energy back to Idaho Power’s system.
As a result, the Commission directed the utility to reclassify customers with on-site
generation, creating new classifications that distinguish these customers from those with
standard service.
The Commission’s order did not impact rates.
Instead, the Commission directed Idaho Power, along with Commission staff and all
interested parties and stakeholders, to conduct a comprehensive cost-based analysis of on-
site generation, with a focus on the usage characteristics of on-site generators and their
impact on the company’s system, rates and rate design, and the how these customers
should be compensated for excess generation.
“The Commission recognizes the intractability these issues have created around the region
and country generally, and would prefer that interested Idaho stakeholders work together
in compromise,” the Commission said in its order.
The order also directed Idaho Power to conduct a study examining the recovery of the fixed
costs it incurs providing service to all of its customers.
Since a substantial amount of Idaho Power’s fixed costs are recovered through volumetric
rates, or the rate its customers pay per kilowatt-hour used, the utility said its net metering
customers were essentially being subsidized by standard-service customers.
This “regressive wealth transfer” will be exacerbated as the net metering program grows,
the company said, adding that the number of participants was expected to increase from
1,468 as of June 30, 2017, to as many as 7,032 customers by 2021.
The Commission received more than 400 comments in the case, and heard oral testimony
from dozens of Idaho Power customers at two public hearings, in Boise and Pocatello.
The Commission’s order called for Idaho Power to initiate two utility-specific dockets to
conduct comprehensive studies of the costs and benefits of on-site generation and on the
recovery of fixed costs.
One of 10 intervening parties to the case, Vote Solar, petitioned the Commission to
reconsider its order, arguing that the order should apply only to customers who export
energy to Idaho Power’s system.
The Commission granted reconsideration and modified its order, expanding the
comprehensive study to explore the feasibility of a non-export option for customers with
on-site generation.
To intervene in either case, a party must submit a petition to intervene with the
Commission. The petition should state the direct and substantial interest of the petitioner
in the proceeding. For more information about the intervention process, go here and scroll
down to Rules 71-80. Or go to the Commission’s web site, www.puc.idaho.gov, and click on
the “Laws & Rules” tab near the top of the page. Then click on “Rules of Procedure” and
scroll down to Rules 71-80.
The Commission is accepting comments on both cases. A comment deadline has not been
set. Go here to submit a comment electronically. Or go to the Commission’s web site,
www.puc.idaho.gov and click on “Case Comment Form” under the “Electric” heading.
Please be sure to include the case number – IPC-E-18-15 for the case involving the study of
the costs and benefits of on-site generation, and IPC-E-18-16 for the fixed cost recovery
case.
Comments can also be submitted via fax to [phone] or by mail to P.O. Box 83720,
Boise, ID 83720-0074.
All documents related to the on-site generation docket, including Idaho Power’s
application, are available here. For documents related to the fixed cost study docket, go
here.
Or go to the Commission’s web site, www.puc.idaho.gov, click on “Open Cases” under the
“Electric” heading and scroll down to the appropriate case number.