PUC Approves Idaho Power's Controversial Solar Study Amidst Widespread Public Opposition

Boise, ID— This week, the Idaho Public Utilities Commission (PUC) released its decision to approve Idaho Power’s maligned and disputed “VODER” (value of solar) study, seemingly ignoring significant pushback from solar advocates and public commenters against the utility's years-long attempt to reduce rooftop solar compensation rates.  

Despite receiving nearly hundreds public comments and hearing a total of six hours of public testimony in Pocatello, Twin Falls, and Boise in early November—all in unanimous opposition to the study—the PUC agreed to approve Idaho Power's study.  

“This was a failed public process. Idaho Power customers who care about fair and affordable rooftop solar—from farmers to doctors, business owners, high school students, and young families—took time out of their busy schedules to urge the PUC to reject Idaho Power’s solar study and request a more accurate and unbiased analysis,” said Lisa Young, Director of the Idaho Chapter of the Sierra Club. “But the PUC ignored all that input, requiring no additional changes to Idaho Power’s study after listening to six hours of powerful public testimony.”

“Your power to regulate exists to protect the community, not the profits of Idaho Power, and you have utterly failed to wield this power in any meaningful way,” wrote local youth from  Idaho Climate Justice League in an open letter to the PUC, many of whom testified at the hearings and submitted written comments.  “It’s disingenuous to say you ‘appreciate the robust level of public participation’ when it made no difference in your decision.”

The final approved study incorporates only a few small changes from the original draft the utility published in June, in response to requests from PUC staff.  The estimated export credit rates in the study would reduce the current 8-10 ¢/kWh compensation rate to solar owners to only 2.8-4 ¢/kWh.  This estimation is lowballed, according to an independent study, which concluded the true value is actually closer to 18.3 ¢/kWh.

The independent study showed that Idaho Power’s study had many errors, including outdated energy prices that don’t reflect the current market and lowball estimates of solar's ability to meet Idaho Power customers' energy needs and avoid costly investments in transmission and distribution infrastructure. The utility's study also failed to include factors the PUC directed it to consider, including rooftop solar's ability to hedge against fuel price risk and provide environmental benefits.

"This is unjust,” wrote local youth in their open letter. "What may seem like a simple case on a utility’s solar study actually sets a dangerous precedent for all future rate cases on solar—Idaho Power will continue squandering residential and community owned solar in an effort to own it all themselves and line their pockets while leaving no alternatives for folks hoping to choose where their energy comes from."

If the values from Idaho Power's study are implemented, their rooftop solar compensation rates  could be among the lowest of any utility in the country, which will also impact solar jobs and local companies in the state. Most states offer retail rate compensation using net metering. 

Idaho Power will now propose a new compensation rate structure with lower export credit rates for solar owners, which will open yet another case at the PUC next year and provide another opportunity for public input. You can view all utility documents and public comments on this case on the PUC's website. 

Additional Statements:

Alex McKinley, Owner of Empowered Solar
"Idahoans are eager to invest in an efficient, resilient, and modern electrical grid. It is unfortunate that Idaho Power continues to view customer owned generation as a threat instead of as an asset. When valued fairly, solar power and other distributed renewable generation can help reduce our dependence on imported electricity, provide cost stability for all customers, and limit the impacts of the heat waves, droughts and physical attacks that our electrical infrastructure is increasingly facing. By ignoring public input and accepting Idaho Power’s biased analysis, the PUC has put corporate profits ahead of grid reliability and affordability for consumers. Idahoans deserve better.”

Rachael Miller, General Manager at Revolusun
"The PUC’s decision to accept the study submitted by Idaho Power is disappointing. Thousands of members from the public, primarily customers of Idaho Power, bravely followed the difficult and confusing process of sharing their dissent of this order by submitting written comments and testimony at the PUC hearings. Unfortunately, the commission failed to represent the public despite that participation. Nonetheless, it is very important that our community remains vigilant in the fight to protect net metering and continues to hold hope that the commission will represent the public in the next and most important matter. We thank the commission for providing a forum for public input by holding hearings and ask that the commission seriously listens to and represents the public in the next, most important phase of this process. Idaho Power customers and solar generators deserve to be compensated fairly for contributing clean, distributed, resilient energy for Idaho.” 

Doug Shipley, CEO and Founder of Intermountain Wind and Solar

“When the people of Idaho look at what the future cost of energy will be and what their options to mitigate those costs are, nothing helps both the people of Idaho and the utility more than solar and storage (distributed energy) on rooftops and in garages all over the state. The studies used by Idaho Power are outdated and only give one point of view. This problem is solvable, but the utility should not penalize those who choose to limit their impact on both the grid and environment.”

Kate Bowman, Interior West Regulatory Director at Vote Solar
“Locally generated clean power is a smart way to meet Idaho residents’ and businesses’ energy needs. Investments in rooftop solar produce electricity right where it is needed, help to avoid the need to build expensive new energy resources, and improve local resiliency. Assigning a fair value for energy exported to the grid is critical to compensate solar customers for the clean energy they are generating and to ensure that homes and businesses can continue to make the choice to invest in solar in the future.”

Martha Bibb, Member of Climate Action Coalition of the Wood River Valley

"When someone provides clean power back to the grid from their solar panels, they deserve to be adequately compensated by the utility. I installed solar to help the environment, and I’ve not regretted that investment. Net metering helped to defray the initial investment. I’m worried others won’t get that opportunity now.”

Leigh Ford, Executive Director of Snake River Alliance

“The Snake River Alliance stands in solidarity with Idaho Climate Justice League and all Idahoans who want fair, clear solar policy. The Idaho PUC decision to approve Idaho Power’s flawed study and ignore the people of Idaho was a blow, but we remain united and committed to fair net-metering policies. Idahoans deserve a fair shake.”