20250313Response to IIPA.pdf

RECEIVED
March 13, 2025
Idaho Public
Austin Rueschhoff, ISB No. 10592 Utilities Commission
Thorvald A. Nelson
Austin W. Jensen, ISB No. 11947
Kristine A.K. Roach
HOLLAND&HART LLP
555 17th Street, Suite 3200
Denver, CO 80202
Telephone: [phone]
Email: [e-mail]
[e-mail]
[e-mail]
[e-mail]
Attorneys for Micron Technology, Inc.
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF IDAHO POWER ) CASE NO. IPC-E-24-44
COMPANY'S APPLICATION FOR )
APPROVAL OF SPECIAL CONTRACT AND ) MICRON TECHNOLOGY, INC.'S
TARIFF SCHEDULE 28 TO PROVIDE ) RESPONSE TO IDAHO
ELECTRIC SERVICE TO MICRON IDAHO ) IRRIGATION PUMPERS
SEMICONDUCTOR MANUFACTURING ) ASSOCIATION, INC.'S
(TRITON) LLC. ) OBJECTION TO MODIFIED
PROCEDURE, DEMAND FOR
HEARING, AND MOTION TO
CONSOLIDATE FOR HEARING
WITH INTERRELATED CASES
Micron Technology, Inc. ("Micron"), in accordance with Idaho Public Utilities
Commission("Commission")Rule of Procedure 256,submits the following Response to the Idaho
Irrigation Pumpers Association, Inc.'s ("IIPA") Objection to Modified Procedure, Demand for
Hearing,and Motion to Consolidate for Hearing with Interrelated Cases("Objection and Motion"),
filed on February 20, 2025, and the Industrial Customers of Idaho Power's ("ICIP") Answer to,
and Concurrence with, IIPA's Objection ("Concurrence"), filed on February 27, 2025.
1
MICRON TECHNOLOGY, INC.'S RESPONSE TO IIPA'S OBJECTION AND MOTION
IPC-E-24-44

Micron requests that the Commission deny the Objection and Motion and Concurrence and
set this proceeding for further process pursuant to its Modified Procedure rules to allow IIPA and
ICIP adequate opportunity to investigate and comment on the proposed Special Contract while
ensuring the Special Contract is considered and a Commission Order issued in an expeditious and
efficient manner. Micron also requests that the Commission deny IIPA's and ICIP's request to
consolidate this case with pending Idaho Power Company ("Idaho Power" or the "Company")
Certificate of Public Convenience and Necessity ("CPCN") cases because such CPCN cases
concern Idaho Power system resources necessary to meet Idaho Power's identified capacity need
and serve all Idaho Power customers, not just Micron. Additionally, the CPCN cases specifically
do not address cost recovery and the appropriate cost allocation of such resources across Idaho
Power's customer classes and Micron will be appropriately considered and determined in a future
general rate case.
I. Introduction and Micron FAB Background
Micron is a current Idaho Power special contract customer for its existing Boise
headquarters and research and development facility,taking service under a Commission-approved
special contract and Idaho Power tariff Schedule 26. In this proceeding, Idaho Power requests,
and Micron supports, approval of a new, additional, Special Contract and tariff Schedule 28 for
Micron's wholly-owned subsidiary Micron Idaho Semiconductor Manufacturing(Triton)LLC for
service at Micron's new memory manufacturing fabrication complex ("Micron FAB") currently
under construction. While co-located with the existing Micron facility, the new Micron FAB will
take electric service from Idaho Power through a new substation and distinct interconnection
facilities, operating profile, and contract demand, necessitating the establishment of a second
special contract arrangement.
2
MICRON TECHNOLOGY, INC.'S RESPONSE TO IIPA'S OBJECTION AND MOTION
IPC-E-24-44

The Micron FAB is a substantial investment in, and commitment to,the Boise community.
The Micron FAB will result in an approximately$15 billion Micron investment by 2030 to provide
leading-edge memory manufacturing in Boise.' The Micron FAB is expected to create over 17,000
new American jobs, including approximately 2,000 direct Micron jobs.2 Micron started
construction of the Micron FAB in 2023 and it is expected to come online this year. The Micron
FAB will ramp up production and electricity demand through the end of the decade, ultimately
taking service exceeding 20,000 kilowatts ("kW").3
Idaho Power's tariffs require that customers with a power demand in excess of 20,000 kW
make special contract arrangements with the Company. Therefore, Idaho Power and Micron
entered into a Special Contract and Schedule 28 on November 21, 2024 and presented it to this
Commission for approval in this case on December 6, 2024 ("Micron FAB Special Contract").5
The proposed Micron FAB Special Contract was specifically designed using Commission-
approved methodologies to ensure that Micron appropriately covers its cost responsibility and
includes robust customer protection measures to ensure other customers do not subsidize the costs
of serving the Micron FAB.
Micron does not oppose IIPA's and ICIP's requests for additional time in this proceeding,
but does oppose their requests to consider this case outside of Modified Procedure and to
consolidate this case with unrelated CPCN cases. The Commission has used its Modified
'See, Micron Press Release,Biden-Harris Administration,U.S. Senate Majority Leader Schumer Announce$6.113
in CHIPS and Science Act Funding for Historic Planned Investment in Domestic Leading-Edge Memory
Manufacturing in Idaho and New York(April 25,2004),available at hlWs://www.micron.com/about/press/media-
relations/press-kits/micron-celebrates-chips-act-grant-announcement.
2 Id.
3 See Micron Initiates Construction on Leading-Edge Memory Manufacturing Fab(October 5,2023),available at
https:Hinvestors.micron.com/news-releases/news-release-details/micron-initiates-construction-leading-edge-
memory-manufacturing,;Application,Attachment 1,p. 1.
a Idaho Power's, Schedule 19,First Revised Sheet No. 19-1.
5 See Application.
3
MICRON TECHNOLOGY, INC.'S RESPONSE TO IIPA'S OBJECTION AND MOTION
IPC-E-24-44

Procedure processes countless times to process cases, allow for discovery and adequate
opportunity for parties to investigate the requested relief, and provide comment prior to the
Commission's decision. Micron requests that the Commission deny the request to consolidate
cases and continue to process this case using Modified Procedure but provide a new procedural
schedule that will allow interested parties reasonable additional time to "vet the special contract's
terms and effect on IPC's existing customers" as IIPA requests.6
II. The Commission should reiect IIPA's and ICIP's demand for a
technical hearing and continue this case under Modified Procedure
Micron supports the Commission's prior decision to set this proceeding for Modified
Procedure and opposes IIPA's and ICIP's request for a formal technical hearing. In the
Commission's Notice of Modified Procedure, Order No. 36446, the Commission reasonably
determined that"the public interest may not require a formal hearing in this matter, and that it will
proceed under Modified Procedure...the Commission notes that Modified Procedure and written
comments have proven to be an effective means for obtaining public input and participation." The
Commission's Modified Procedure rules provide an efficient framework in which interested
parties can investigate a utility's application and the Commission can consider written comments
before issuing an Order. Modified Procedure provides ample opportunity for interested
stakeholder participation while conserving the additional resources the Commission and parties
expend in technical hearings. Indeed, the Commission has previously issued several decisions
using Modified Procedure, including the approval of Micron's current Replacement Special
Contract, Schedule 26, and a Power Purchase Agreement with Black Mesa Energy, LLC in Case
No. IPC-E-22-06.
6 IIPA Objection and Motion,p.4.
4
MICRON TECHNOLOGY, INC.'S RESPONSE TO IIPA'S OBJECTION AND MOTION
IPC-E-24-44

Micron understands that IIPA's and ICIP's concern with Modified Procedure in this case
is the lack of "sufficient time to vet the special contract's terms and effect in IPC's existing
customers" and the need for"further detailed investigations."' Micron does not object to IIPA's
and ICIP's request for reasonable additional time and opportunity to investigate and analyze the
Special Contract and would not oppose a reasonable extension of the comment deadlines in this
proceeding to allow those parties to conduct additional discovery if necessary and develop their
written comments.
III. The Commission should reiect IIPA's and ICIP's motion to consolidate this case
with Idaho Power's pendiniz CPCN cases.
Micron opposes IIPA's and ICIP's motion to consolidate this Special Contract proceeding
with two pending Idaho Power resource acquisition CPCN cases, Case Nos. IPC-E-24-45 (battery
storage project) and IPC-E-24-46 (Jackalope Wind). Despite IIPA's and ICIP's declaration that
such CPCN cases are interrelated dockets with this Micron FAB Special Contract proceeding, the
record in those CPCN cases demonstrates those cases seek approval of system resources that will
be used to serve all Idaho Power customers and Idaho Power's growing loads, including Micron.
Indeed,dating back to Idaho Power's 2021 Integrated Resource Plan("IRP"),the Company stated:
The 2021 IRP evaluates the 20-year planning period from 2021 through 2040.
During this period, Idaho Power's load is forecasted to grow by 1.4% per year for
both average energy demand and peak-hour demand. Total average annual
customers are expected to increase from just over 600,000 in 2021 to 847,000 by
2040. To meet this growing demand, the 20-year plan includes the addition of
3,790 megawatts (MW) of new non-carbon emitting resources consisting of wind,
solar,and storage technologies,the addition of the Boardman to Hemingway(B2H)
transmission line, and a variety of demand-side management resource additions
totaling 540 MW.8
7 IIPA Objection and Motion,p.4;ICIP Concurrence,p.2.
a 2021 IRP,p. 1.
5
MICRON TECHNOLOGY, INC.'S RESPONSE TO IIPA'S OBJECTION AND MOTION
IPC-E-24-44

Idaho Power's 2021 IRP also stated that such load growth will come from across its
customer classes, noting:
The anticipated annual average system load growth of 1.4% (over the period 2021
through 2040) comprises a residential load growth of 0.8%, a commercial load
growth of 0.9%, an irrigation load growth of 0.6%, an industrial load growth of
1.6%, and an additional firm load growth of 6.3%.9
While the Micron FAB is one substantial example of Idaho Power's load growth, the fact
remains that Idaho Power requires, and will continue to require in the coming years, additional
system resources to reliably serve all of its customers. The assertion that the pending CPCN's are
necessary solely due to the Micron FAB Special Contract, or that the cases are "inexorably
interrelated" is inaccurate.lo
Additionally, Idaho Power's applications in the two pending CPCN cases demonstrate the
lengthy and robust regulatory process utilized to select the two CPCN resources to meet its system
capacity needs. In one Application, Idaho Power cites:
Several dynamic and converging factors, including third-party transmission
capacity constraints, load growth, and a decline in the peak-serving effectiveness
of certain supply-side and demand-side resources led the Company to file
consecutive requests for CPCNs to acquire resources to be online in 2023, 2024,
2025, and 2026. Idaho Power expects to acquire additional resource each year
thereafter through (at least) 2028.11
The Application continues to explain how the selection of resources pending in the CPCN
cases dates back to September 15, 2022 when Idaho Power commenced a competitive bidding
process that culminated in the approval of a final resource shortlist on February 22, 2024.12
1Id. p.91-92.
'o ICIP Concurrence,p. 2.
ii Case No.IPC-E-24-45,Application,p.3.
i2Id.pp. 5-6.
6
MICRON TECHNOLOGY, INC.'S RESPONSE TO IIPA'S OBJECTION AND MOTION
IPC-E-24-44

Nowhere in either Application does Idaho Power state that it is seeking to acquire such resource
solely to serve Micron's growing loads.
Finally,the cost recovery of the resources at issue in the CPCN cases will not be determined
in those cases. Cost recovery and allocation decisions for those resources will be reserved for a
future rate case where the resource costs and how they should be allocated and recovered from
customers, including Micron, will be fully investigated and vetted holistically alongside all Idaho
Power costs and revenues. The scope of the CPCN proceedings should remain focused on a
determination of whether such resources are necessary and least-cost, least-risk options to meet an
identified system need and not how those costs should be allocated to customers. The Commission
should reject IIPA's and ICIP's requests to consolidate the proceedings.
IV. Response to IIPA's concerns regarding the Micron FAB Special Contract
Based on Micron's initial review of IIPA's Objection and Motion, IIPA's claims that the
proposed Micron FAB Special Contract "does not provide material protections to IPC's other
existing customer classes"and IIPA's"initial analysis"that the Micron FAB Special Contract may
lead to existing customers subsidizing Micron by "as much as $147 million per year" are not
supported by evidence)3 Because IIPA does not adequately support its claims or provide the
analysis that led to its conclusion in its Objection and Motion, it appears that IIPA may be using
questionable or incorrect assumptions. Assuming that this case proceeds under Modified
Procedure and that IIPA's claims and analysis will be provided and more fully described in IIPA's
written comments,Micron looks forward to reviewing that analysis and responding as appropriate.
is IIPA Objection,p. 3.
7
MICRON TECHNOLOGY, INC.'S RESPONSE TO IIPA'S OBJECTION AND MOTION
IPC-E-24-44

V. Conclusion
Micron respectfully requests that the Commission continue to process this case by
Modified Procedure and deny IIPA's motion to consolidate this case with Case Nos. IPC-E-24-45
and IPC-E-24-46.
Respectfully submitted March 13, 2025.
HOLLAND & HART, LLr
By: n zjjj-'�
ustin Rueschhoff, ISB No. 10592
Thorvald A. Nelson
Austin W. Jensen, ISB No. 11947
Kristine A.K. Roach
555 17th Street, Suite 3200
Denver, CO 80202
Telephone: [phone]
Email: [e-mail]
[e-mail]
[e-mail]
[e-mail]
Attorneys for Micron Technology, Inc.
8
MICRON TECHNOLOGY, INC.'S RESPONSE TO IIPA'S OBJECTION AND MOTION
IPC-E-24-44

CERTIFICATE OF SERVICE
I hereby certify that on March 13,2025,a true and correct copy of the within and foregoing
MICRON TECHNOLOGY, INC.'S RESPONSE TO IDAHO IRRIGATION PUMPERS
ASSOCIATION, INC.'S OBJECTION TO MODIFIED PROCEDURE, DEMAND FOR
HEARING, AND MOTION TO CONSOLIDATE FOR HEARING WITH INTERRELATED
CASES IN CASE NO. IPC-E-24-44 was served in the manner shown to:
Electronic Mail
Idaho Power Company
Megan Goicoecha Allen Connie Aschenbrenner
Donovan E. Walker Grant T. Anderson
Idaho Power Company Idaho Power Company
1221 W. Idaho Street(83702) 1221 West Idaho Street(83702)
PO Box 70 P.O. Box 70
Boise, ID 83707-0070 Boise, Idaho 83707
mgoicoecheaallengidahopower.com Telephone: [phone]
dwalker(aJdahopower.com Facsimile: [phone]
docketskidahopower.com caschenbrenner(a�idahopower.com
ganderson(ab idahopower.com
Commission Staff Micron Technology, Inc.
Monica Barrios-Sanchez Austin Rueschhoff
Commission Secretary Thorvald A. Nelson
Idaho Public Utilities Commission Austin W. Jensen
11331 W. Chinden Blvd., Building 8, Kristine A.K. Roach
Suite 201-A Holland& Hart, LLP
Boise, ID 83714 555 17th Street, Suite 3200
secretary(apuc.idaho.gov Denver, CO 80202
darueschhoff khollandhart.com
tnelson(a,hollandhart.com
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Idaho Irrigation Pumpers Association, Inc.
Eric L. Olsen Lance Kaufman, Ph.D.
ECHO HAWK& OLSEN, PLLC 2623 NW Bluebell Place
505 Pershing Avenue, Suite 100 Corvallis, OR 97330
P.O. Box 6119 lance(a,ae isi�nsi hg t.com
Pocatello, ID 83205
elo(a,echohawk.com
9
MICRON TECHNOLOGY, INC.'S RESPONSE TO IIPA'S OBJECTION AND MOTION
IPC-E-24-44

Industrial Customers of Idaho Power
Peter J. Rickardson Dr. Don Reading
Richardson Adams, PLLC 280 S. Silverwood Way
515 N. 27th Street Eagle, ID 83716
Boise, ID 83702 dreadingkmindspring com
peterkrichardsonadams.com
s/Adele Lee
34401992 v4
10
MICRON TECHNOLOGY, INC.'S RESPONSE TO IIPA'S OBJECTION AND MOTION
IPC-E-24-44