Idaho Public Utilities Commission
Case No.
IPC-E-11-28, Order No. 32431
January 5,
2012
Contact:
Gene Fadness (208) 334-0339, 890-2712
Website: www.puc.idaho.gov
Oral argument is Jan. 11
on Hoku complaint
State regulators
will hear oral arguments Wednesday on a Hoku Materials Inc. complaint over Idaho
Power Company’s intent to terminate electric service to the new polysilicon
manufacturing plant in Pocatello.
Hoku was to
have paid Idaho Power its $1.9 million electric bill by Dec. 21 or have service
terminated on Jan. 3. Hoku filed a
complaint with the Idaho Public Utilities Commission asking the commission not
to allow Idaho Power to terminate service and instead allow the payment to come
out of a $4 million deposit Hoku has provided the utility. Service cannot be terminated while the
complaint is pending.
Hoku
acknowledges it has not paid its November bill because the plant is not yet
“operational and producing revenue” and must draw on various reserves or loans
to pay its operating costs. Hoku claims
that termination of service will prevent completion of the plant’s
construction, possibly freeze sensitive electronic equipment and threaten 160 jobs.
Idaho Power
claims it has “gone out of its way to accommodate Hoku,” by modifying its original
contract and delaying implementation, but Hoku “has failed to provide Idaho
Power any assurance that such a payment will be forthcoming.”
The loss of
revenue from such a large customer poses “imminent financial harm,” to Idaho
Power’s other customers, who may not receive their share of a tax benefit the
commission just approved, Idaho Power claims. [1]
To meet the
revenue shortfall caused by Hoku’s failure to pay, Idaho Power claims it may
have to use some of the accelerated investment tax credits that were to go to customers.
The
commission’s Rule L does not contain provisions for other customers using
deposits to pay monthly charges, Idaho Power claims. Further, Idaho Power
states, Hoku owes another $1.8 million deposit that was due Dec. 31, but
the utility agreed to extend to March 2 so long as Hoku remained current on its
payments. Because it has not done so, the utility alleges, that the remaining
$1.8 deposit is now due.
Hoku will
file a response to Idaho Power’s claims by Monday and the oral argument will
begin at 2 p.m. Wednesday in the commission hearing room at 472 W. Washington
St. in Boise.
Documents
regarding this case are available on the commission’s Web site at www.puc.idaho.gov. Click on the electric
icon, then on “Open Electric Cases,” and scroll down to Case No. IPC-E-11-28.
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[1] Link to press release about accelerated tax benefit to customers:
http://www.puc.idaho.gov/internet/press/122811_IPCoADITC.htm