Idaho Public Utilities Commission approves creation of separate customer class for rooftop solar customers
The Idaho Public Utilities Commission (PUC) recently ordered the creation of two new customer classes for those with on-site generation, Residential and Small General Service, along with the closure of Idaho Power’s current net metering classification.
Idaho Power proposed the new compensation scheme in July 2017.
The commission’s order also directed Idaho Power to conduct a study of the costs and benefits of net metering on Idaho Power’s system. The utility will now determine new rates, rate design, and compensation for excess generation for its net-metering customers.
The order also directs the utility to work with Commission staff to establish a requirement for on-site generation customers to install smart inverters within 60 days of the adoption of an industry standard by the Institute of Electrical and Electronic Engineers.
“The Commission recognizes the intractability these issues have created around the region and the country generally and would prefer that interested Idaho stakeholders work together in compromise,” the PUC said. “All parties, to varying degrees, admit that on-site generation customers both cause costs and create potential benefits to the company’s system(s). Again, we agree, and acknowledge that the costs of serving on-site generation customers, when the true value of their interconnection is realized, may be less than the cost of serving standard service customers.”
As of June 2017, fewer than 1,500 net metering customers of Idaho Power’s approximately 535,000 customers had on-site generation. The utility expects that number to grow, however, as the affordability of on-site generation increases.
The commission received more than 400 comments on the case, most of which were in opposition to the proposal, the PUC said. The commission acknowledged concerns about the lack of analysis by Idaho Power of the costs and benefits of on-site generation.
“We can also assure the Company’s customers that discriminatory rates will not follow from the outcome of this case, as the prevention of discriminatory rates by the utility is the main purpose of this Commission’s oversight, Commission Staff’s public service, and the many intervenors’ and public participants’ involvement in these important cases,” the PUC said. “We also share with commenters the concern about the future of on-site generation. This Commission views onsite generation as an inevitable part of any utility’s future resource portfolio.”
