The order revised PURPA in the following ways: Supporters of the NOPR have largely highlighted the longstanding need to modify the rule in the interest of protecting end-use customers by moving away from long-term fixed prices for renewables.Īfter reviewing comments, FERC issued Order No.
#Rocky mountain power cost per kwh generator#
Some concerned parties expressed issues relating to small generator access to RTO markets, while others questioned FERC’s authority to make the proposed changes. Stakeholders submitted comments that represented a broad spectrum of reactions. the legally enforceable obligation (LEO) and 5. the obligation to purchase (rebuttable presumption) 4. This has resulted in questions regarding the need to revisit the application of PURPA.įERC responded to these concerns in late-2019, by issuing a PURPA Notice of Proposed Rule Making (NOPR), primarily examining the four subsets of the act: 1.
Prices for new renewable sources have also fallen over the last decade and several developers have attempted to leverage QF status for new projects – particularly for solar developers. During the last four decades, there have been substantial changes in the electric industry, including a rapid shift away from mostly “vertically integrated” utilities, the development of wholesale energy and capacity markets for most of the country, the adoption of renewable portfolio standards or goals in many states, and FERC policies mandating transmission access to non-utility providers. The act gave QFs special rate and regulatory treatment for power production from non-utility sources, cogeneration facilities, small dams, and other resources that met the specified parameters. PURPA was designed to accomplish this by creating a new class of electric generating facilities called “qualifying facilities” (QFs). The Commission updated its platform subscription to allow more participants and updated log-in and dial-in credentials to be more user friendly.In 1978, Congress passed the Public Utility Regulatory Policies Act (PURPA) to encourage electric energy conservation, increase utility efficiency, increase fairness in retail rates for electric consumers, expand the use of hydroelectric production, and conserve the use of natural gas in electric power generation. Compensation at the retail rate for generation exported to the grid is significantly more expensive than other sources of power available for our customers.”Ī workshop on the proposed changes to the net metering program will be held today (June 18) from 6:00 p.m. 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,” said Rocky Mountain Power Vice-President Joelle Steward. In earlier testimony, Rocky Mountain Power claimed the current net metering system unfairly shifts costs to non-net metering customers in Idaho. The study process will be conducted in two steps: a study design phase and study review phase, with opportunities for public input during both phases. The changes to the net metering program, including the proposed export credit rate, will be analyzed by the company in a comprehensive study that examines the costs and benefits of net metering. Rocky Mountain Power estimates that the current retail rate paid to Schedule 135 customers is about 12.5 cents per kilowatt-hour and the proposed export credit rate for Schedule 136 is 2.4 cents per kilowatt-hour.Īccording to the Idaho Public Utilities Commission, Rocky Mountain Power also wants to charge customers a one-time, non-refundable application fee of $85. Existing net metering customers would be “grandfathered” until July 31 2030.Ī new schedule would compensate customers for exported energy at an export credit rate, rather than the retail rate. Now, the utility wants to close its current program as of July 31, 2020. Rocky Mountain Power’s original application was filed June 19, 2019. Theoretically, that renewable electricity helps lower the utility’s expense for power through avoided cost. Net billing refers to a system of billing a customer who installs a renewable energy generator for retail electricity purchased at retail rates and crediting the customer’s bill for the electricity produced. BOISE, Idaho (KIFI/KIDK)-The Idaho Public Utilities Commission is holding a workshop tonight on Rocky Mountain Power’s proposal to change how its net-metering customers are compensated.Ī telephonic public hearing for customers is scheduled Monday at 3 p.m.
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