Idaho Public Utilities Commission Denies Majority of Plan for Modification Compensation

Although finding that an electric utility had raised valid issues about net metering policies that should be more closely examined, the Idaho Public Utilities Commission has denied most of the utility’s plan for modifying compensation schedules applicable to net-metering customers. The utility, Idaho Power Company, had proposed that residential and small commercial customers who net meter by generating their own power be moved into new customer classes and be paid differently for the energy they generate. The commission found that many of the changes recommended by the utility would discourage investment in distributed generation, in contravention of state policies promoting the installation and development of such equipment.  Nevertheless, the commission did adopt certain limited changes proffered by the company, including those relating to the treatment of credits a net metering customer might accrue when producing net energy. It held that the other matters brought up by the utility, especially those pertaining to the rates to be paid for power supplied by smaller users, could be addressed more appropriately within the context of a general rate case. The commission also agreed that net metering customers do escape a portion of the utility’s fixed costs and shift that cost burden to other customers in their class. (Case No. IPC-E-12-27, Order No. 32846, Idaho P.U.C.). For more analysis, subscribe to URN. http://www.fortnightly.com/utility-regulatory-news-0

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