Idaho Power requests changes to on-site generation offering 

BOISE, Idaho (KIFI) — Idaho Power is requesting changes to its on-site generation offering that are a step toward ensuring fair prices for all customers. Idaho Power is seeking approval of a compensation structure that accurately measures an on-site generator’s use of the electrical grid and an export credit rate that will result in a fair and accurate valuation of customers’ exported energy.

The proposed changes follow the Idaho Public Utilities Commission’s (IPUC) acknowledgement of a Value of Distributed Energy Resources study (IPC-E-22-22) analyzing the benefits and costs of on-site generation, such as residential rooftop solar, on Idaho Power’s system. The study provides a basis for implementing changes to ensure that customers are paid fair rates for their exports and customers without solar or other on-site generation systems are not subsidizing the rates for self-generating customers. 

Solar power is an important part of Idaho Power’s energy mix, and the company supports customers who choose to participate in their own on-site generation. The company’s goal with this request is to modernize the 20-year-old compensation structure for on-site generation to ensure prices for excess energy are fair and equitable for all customers.

As part of previous cases, the IPUC granted legacy status — sometimes referred to as “grandfathered” — to eligible residential and small general service on-site generation systems as of December 20, 2019, and to eligible commercial, industrial and irrigation systems as of December 1, 2020. The newly requested changes will not affect customers with legacy systems.

For all customers with non-legacy systems, Idaho Power is asking the IPUC to implement changes starting January 1, 2024, including:

• A change from net monthly to real-time net billing, which would better measure customers’ actual reliance on the grid.
• A change in the excess exported energy credit from a kilowatt-hour (kWh) credit ranging in value of 5 to 12 cents, depending on the customer class, to a time differentiated financial bill credit ranging from approximately 5 to 20 cents per kWh that would be updated annually.
• A modification to the eligibility cap for large commercial, industrial and irrigation customers.

Existing and pending non-legacy on-site generation customers will receive a letter with more detailed information about Idaho Power’s proposal and the potential impact to their bill.

To learn more about Idaho Power’s on-site generation offerings, visit idahopower.com/solar.