Idaho PUC issues reconsideration order in net metering case

The Idaho Public Utilities Commission (PUC) recently issued a final reconsideration order in a net metering case, following a petition filed with the PUC by Vote Solar, one of 10 intervening parties to the case.

The final reconsideration order maintained the decision to separate customers with on-site generation into new customer classes as well as direct Idaho Power and other stakeholders to explore options for customers who generate but do not export energy.

In the order it issued in May, the PUC said that “bi-directionality,” the ability to both import and export energy, is a defining characteristic of customers with on-site generation.

“Because of this bi-directionality, we conclude that … customers with on-site generation present unique load and usage characteristics that lend toward class distinction,” the PUC said.

Vote Solar requested that the Commission reconsider its order to apply only to customers who export energy.

In response to the petition, Idaho Power argued that there were “significant flaws” with this approach and contended that the unique load service and pattern of use should determine whether a customer is included in the new classifications.

The PUC found Idaho Power’s argument unpersuasive and noted that even customers who do not generate their own energy exhibit a broad range of load and service characteristics.

The final reconsideration order reiterates the parameters of the order issued in May, which in addition to creating new customer classifications for on-site generators, directed Idaho Power to conduct a comprehensive study of the costs and benefits of on-site generation on the utility’s system. The order encouraged Idaho Power to collaborate with Commission staff and other stakeholders in conducting the study and determining proper rates, rate design and compensation for generation exported to the grid.

The reconsideration order said that the study should also assess the feasibility of a non-export option for customers with on-site generation.

“For now, all on-site generators should remain in the [newly created customer classes] because there is insufficient evidence in the record for the Commission to make a well-informed determination as to on-site generating customers who may choose to eliminate energy export and the implications of such a choice,” the Commission said. “Further, no harm is caused by, at least temporarily, leaving potential non-exporters in [the new classes] because no changes have yet been implemented to the underlying rate and compensation structure.”