“The times are a-changing,” and so are utility rates nationwide, especially for renewable energy. But all electricity ratepayers have a stake in upcoming regulatory decisions, including the rooftop solar ruling expected this summer by the Utah Public Service Commission (PSC).
In recent PSC testimony, solar advocates and state agencies alike recommended that Rocky Mountain Power’s (RMP) latest rooftop solar rate hike request be handled in a general rate case; not separately, as RMP prefers. This PSC decision has broader implications affecting all customers.
“Smart” energy technology renders the traditional utility rate-setting model obsolete. Home energy management apps on iPhones, smart solar inverters and energy storage mean that the number of low-use customers will increase, driving down energy consumption on which utility profits are based.
If rooftop solar customers are penalized for using less power from RMP, can energy efficient non-solar customers be far behind?
Colorado’s Xcel utility agreed to promote renewable energy and efficiency while “decoupling” company profits from electricity consumption. The time-of-use rate component of Xcel’s compromise, also mentioned in RMP’s case, could become reality for all Utah ratepayers.
Some states’ policymakers are planning ahead to reduce reliance on dirty fuels, especially coal. Legislators in Utah, though, don’t “get it.” As pro-solar Utahns prepare for the PSC public hearing August 9, our state remains stuck on the dirty fuel side of the “PacifiCorp Divide.”
RMP customers belong to a six-state PacifiCorp grid. PacifiCorp-West is served by Pacific Power and includes Washington, Oregon and northern California. PacifiCorp-East — Utah, Idaho, Wyoming — is RMP’s territory.
There are clear disparities across the PacifiCorp Divide on commitment to renewable energy. PacifiCorp-West legislatures have enacted renewable portfolio standards (RPS) to achieve more energy from clean sources, such as wind, solar and hydro. Pacific Power even endorsed Oregon’s “Coal to Clean” legislation banning coal-fired electricity.
PacifiCorp-East is a different story. Ratepayer-funded RMP lobbyists had Utah legislators appropriate taxpayer millions for “clean coal” research, an oxymoronic quest. Utah coal was pledged a $53 million lifeline to Oakland harbor. In Wyoming, PacifiCorp-East hires for Bridger Coal Company.
So, while PacifiCorp-West acknowledges that coal will never be “clean,” Utah is saddled with policymakers in denial. In PacifiCorp-East, no state has an RPS statute. Utah’s renewable portfolio “goal” — 20 percent clean energy by 2025 — has an “opt-out” clause.
At present, all PacifiCorp states offer rooftop solar net metering with retail rate compensation for energy exported to the grid. That will be cut by more than half in Utah if RMP’s rate hike is approved. And following RMP’s lead in Idaho, independent Idaho Power has just filed to end its net metering program this year.
No PacifiCorp state has the “demand” charge RMP would impose on new solar customers in Utah. Utah’s Office of Consumer Services opposes demand charges for any residential customers, and RMP’s plan would set a troubling precedent. In Nevada and Arizona, demand charge requests helped destabilize solar markets, costing thousands of jobs. Everyone suffered the economic impacts.
Local governments, such as Salt Lake City, have set clean energy goals and promote residential solar as key to their success. By threatening rooftop solar, RMP threatens the quality of life that SLC wants to protect. Environmental, health and economic benefits of rooftop solar, ignored by RMP, but obvious to many, accrue to all ratepayers and the general public, all of whom have a vested interest in the outcome of this case.
The bottom line: Utility rate change affecting everyone is on the horizon. You can express your preferences now, or defer to RMP’s old school agenda.
The PSC is taking comments at psc@utah.gov subject line: Docket 14-035-114. Signups to speak at the August 9 public hearing run from 2 to 6:30 p.m. at PSC headquarters: Fourth Floor, Heber M. Wells Building, 160 East 300 South, Salt Lake City.
Stanley Holmes is outreach coordinator for Utah Citizens Advocating Renewable Energy (UCARE).