The Idaho Public Utilities Commission approved a study conducted by Idaho Power that suggested the utility should be allowed to lower the credit rate paid to customers who own home solar power systems.

The decision, made on Dec. 22, opens the door for the company to move ahead with proposing a cut to the export credit rate, or compensation that households that generate solar power get for the energy they give back to the grid, said a press release from the Idaho Chapter of the Sierra Club.

Jordan Rodriguez, spokesperson for Idaho Power, said via email that the company is still evaluating the commission's decision and did not have comment to offer by press time.

In November, the commission held three public hearings in Pocatello, Twin Falls and Boise to hear opinions on the study. At the Boise hearing, those who spoke represented rooftop solar panel owners, students, environmental groups and solar panel businesses from communities across the Treasure Valley and beyond, all of whom spoke in opposition to the study, as previously reported.

Lisa Young, executive director of the Sierra Club in Idaho, said in the release that the commission "ignored all that input, requiring no additional changes to Idaho Power's study after listening to six hours of powerful public testimony."

The study suggests fair compensation for solar energy generation is 2.8 to 4 cents per kilowatt hour, rather than the current 8 to 10 cents per kilowatt hour rate, as previously reported. Many who testified at the Boise hearing argued that reducing the rate would discourage people from installing solar panels, and could quash the flourishing solar installation industry, as previously reported.

An independent study commissioned by the Sierra Club found that a fair compensation rate would be closer to 18.3 cents per kilowatt hour, as previously reported.

In its press release, the Idaho Chapter of the Sierra Club said Idaho Power's efforts are "a years-long attempt to reduce rooftop solar compensation rates."

Youth belonging to the Idaho Climate Justice League, which is affiliated with the Sierra Club, wrote an open letter to the commission criticizing the decision.

"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," a portion of the letter says.

Alex McKinley, owner of Empowered Solar, said in the Sierra Club's press release, "it is unfortunate that Idaho Power continues to view customer owned generation as a threat instead of an asset."

"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," McKinley said in the release.

Lisa Young, executive director for the Sierra Club's Idaho Chapter, said via email that she thinks a new hearing for adjusting the compensation rate would draw "huge public outcry, even bigger than we've already see on these solar cases over previous years. Between local residents, businesses, farmers, and municipalities pleading for fair rates and the blatant biases in Idaho Power's calculations, we hope the (commission) will stand on the right side of history in the next case and decide to maintain equitable compensation rates (at or near retail value) for rooftop solar owners."