Customer Generation Study Filing

Customer Generation Study Filing

Every customer should have access to reliable, affordable, clean energy – and the ability to generate their own electricity if they want.

Idaho Power has filed a Value of Distributed Energy Resources (VODER) study analyzing the benefits and costs of on-site customer generation within the company’s service area. The study provides information that the Idaho Public Utilities Commission (IPUC), Idaho Power and other stakeholders will use to determine whether changes should be made to Idaho Power’s existing customer generation offering for all customer classes (Schedules 6, Schedule 8, and Schedule 84).

Idaho Power is committed to establishing a customer generation structure that provides consumer certainty going forward while continuing to give customers the flexibility to generate their own energy at their home or business. Next, the IPUC will set a schedule to process the case, and interested stakeholders will have an opportunity to submit public comments on the study. Idaho Power has proposed a schedule that could allow for the IPUC to issue a determination as to the future structure of this service offering by the end of 2022, with implementation no earlier than June 1, 2023.

Why did Idaho Power conduct this study?

The study was prepared at the direction of the IPUC. Currently, customers with on-site generation – such as those who install solar panels – get a kilowatt-hour credit on their bill when they produce more energy than they need. That credit is applied at the full retail rate, which reflects the full cost of generating, transmitting, and delivering reliable electric service to our customers. However, only a portion of that retail rate represents energy generation. The rest pays for building and maintaining the grid, running a customer care center, and other expenses that apply to all customers. We call those “fixed costs.” Idaho Power has prepared this study to determine the full benefits and costs of customer generation to inform important decisions about the appropriate compensation structure going forward.

Idaho Power supports solar energy

Solar is a key part of our energy future. Idaho Power uses it in our energy mix, and we will pair it with battery storage when possible. We know that more solar will help us meet our Clean Today, Cleaner Tomorrow goal of providing 100% clean energy by 2045.

To learn more about this topic, use the links on this page, or visit puc.idaho.gov and reference case No. IPC-E-22-22.

Note: As part of previous rulings, the IPUC granted legacy (grandfathered) status to eligible Schedule 6 and 8 (residential and small general service) on-site generation systems as of December 20, 2019. Eligible Schedule 84 (commercial, industrial and irrigation) systems received legacy status as of December 1, 2020.

Customers who do not have legacy systems are subject to changes to the on-site generation compensation structure, including the value of excess energy. Customers are notified when applying for interconnection that the value of excess energy is subject to change.

While not at issue in this case, all on-site generation customers, regardless of legacy status, are subject to changes in rates (energy prices), billing components, and billing structure.

VODER Study and Supporting Data 

The full study report Idaho Power filed with the IPUC is included below, along with appendices of supporting data. These same documents are also on file with the IPUC.

VODER Study

For assistance with a PDF on this page or to request a PDF in an alternate format, please contact Customer Service at 208-388-2323 or 1-800-488-6151