Under the proposed program, the same system could have a simple payback period of about 14.4 years.Īny changes to existing rates or programs must be approved by the Idaho Public Utilities Commission before taking effect.
ROCKY MOUNTAIN POWER NET METERING RATES GENERATOR
Under the current program, a typical residential customer generator could have a simple payback on their system in about 9.6 years. 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. The company estimates the total compensation for customer-generated energy under the current Net Metering program is 12.5 cents per kilowatt-hour.
However, the actual value of the energy from customer onsite generation is only 2.48 cents per kilowatt-hour. Current energy policy has designed rates to create incentives for energy efficiency, so average retail energy charges for net metering customers range from 14.94 cents per-kilowatt hour to 3.99 cents per kilowatt-hour.
ROCKY MOUNTAIN POWER NET METERING RATES FULL
Rocky Mountain Power stated in its pre-filed testimony that the existing net metering program pays customers the full retail rate for power they generate and provide back onto the grid. Compensation at the retail rate for generation exported to the grid is significantly more expensive than other sources of power available for our customers." As a result, those costs are shifted to other customers who have not chosen to generate their own power. These costs include maintaining and operating the electric network, billing and other customer service functions separate from the energy provided. "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 program that fails to cover the true costs of providing the 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. Further, the company proposes that the commission approve a 10-year transition period for existing customers on Schedule 135, Net Metering Service, to move to the new tariff, Schedule 136, Net Billing Service. 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. The proposal includes creating a successor program for new residential customers who choose to generate their own electricity while continuing to use Rocky Mountain Power's network.
Rocky Mountain Power is proposing closing the company's net metering program to new applicants for Idaho customers.
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