20081203notice_of_application_order_no_30697.pdf

Office of the Secretary
Service Date
December 3, 2008
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF IDAHO POWER COMPANY FOR
APPROVAL OF A SPECIAL CONTRACT TO
SUPPLY ELECTRICAL POWER TO HOKU MATERIALS, INc.
CASE NO. IPC-08-
NOTICE OF APPLICATION
NOTICE OF
MODIFIED PROCEDURE
ORDER NO. 30697
NOTICE OF APPLICATION
YOU ARE HEREBY NOTIFIED that on October 24, 2008, Idaho Power Company
Idaho Power" or "Company ) filed an Application with the Commission seeking approval of a
special contract to supply electrical power to Hoku Materials, Inc. ("Hoku
YOU ARE FURTHER NOTIFIED that Idaho Power and Hoku have entered into an
Energy Sales Agreement ("ESA") stipulating that Idaho Power would sell and Hoku would
purchase in excess of25 000 kW.
YOU ARE FURTHER NOTIFIED that Idaho Power has also agreed to construct, at
Hoku s expense, certain interconnection facilities necessary to enable delivery of electrical
service to Hoku s facilities.
YOU ARE FURTHER NOTIFIED that the ESA's effective date is June 1 2009 and
its termination date is May 31 , 2013.
YOU ARE FURTHER NOTIFIED that, under the terms of the ESA, Hoku s demand
will vary during the summer and non-summer seasons. Hoku s peak monthly demand during the
term of the ESA will not exceed 82 MW. The parties have agreed that Hoku s scheduled load
demand for the summer of 2012 is contingent upon Idaho Power s ability to integrate "major
transmission and generation projects" into its system.
YOU ARE FURTHER NOTIFIED that the parties have agreed to divide Hoku
demand and energy requirements into two blocks for pricing purposes. The first block will be
equivalent to the Company s current Commission-approved avoided cost rates. The second
block rates, 25 MW or more, are to be consistent with the Company s approved Schedule 19-
rates.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 30697
YOU ARE FURTHER NOTIFIED that Hoku is required to "take-or-pay" a certain
amount of energy from Idaho Power every month but it is also allowed to "request a release of
all or part of its first block energy purchase commitment." Idaho Power states that it will make a
commercially reasonable effort to absorb or resell the released energy and provide a credit to
Hoku. The amount credited will depend upon the rate period during which the Company
receives timely notice of Hoku s request to release its energy demands as well as the Company
ability to manage and supply commitments to serve Hoku s load.
YOU ARE FURTHER NOTIFIED that if Hoku wishes to procure additional power
during the summer rate period then Idaho Power is obligated to make the same commercially
reasonable efforts to obtain proposals to supply Hoku s additional energy request. Hoku will be
responsible for the costs of these purchases and any associated transmission and ancillary service
expense to transport such purchase to the Hoku facility. Hoku s ability to expand its first block
up to 175 000 kW will be contingent upon the Company s ability to supply and deliver additional
power.
YOU ARE FURTHER NOTIFIED that Idaho Power requests that the first block
revenues and expenses be treated similarly to wholesale purchases and sales and thus not be
included under the Company s yearly Power Cost Adjustment (PCA).
NOTICE OF MODIFIED PROCEDURE
YOU ARE FURTHER NOTIFIED that the Commission has determined that the
public interest may not require a formal hearing in this matter and will proceed under Modified
Procedure pursuant to Rules 201 through 204 of the Commission s Rules of Procedure, IDAP A
31.01.01.201-.204. The Commission notes that Modified Procedure and written comments have
proven to be an effective means for obtaining public input and participation.
YOU ARE FURTHER NOTIFIED that any person desiring to state a position on this
Application may file a written comment in support or opposition with the Commission within
sixty (60) days from the service date of this Notice. The comment must contain a statement of
reasons supporting the comment. Persons desiring a hearing must specifically request a hearing
in their written comments. Written comments concerning this Application shall be mailed to the
Commission and the Applicant at the addresses reflected below:
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 30697
Street Address for Express Mail:
Lisa D. Nordstrom
Barton L. Kline
Idaho Power Company
PO Box 70
Boise, Idaho 83707-0070
E-mail: lnordstrom(fYidahopower.com
bkline(fYidahopower. com
Commission Secretary
Idaho Public Utilities Commission
PO Box 83720
Boise, ID 83720-0074
472 W. Washington Street
Boise, ID 83702-5918
These comments should contain the case caption and case number shown on the first page of this
document.Persons desiring to submit comments via e-mail may do so by accessing the
Commission s home page located at www.puc.idaho.gov. Click the "Comments and Questions
icon, and complete the comment form, using the case number as it appears on the front of this
document. These comments must also be sent to Idaho Power at the e-mail addresses listed
above.
YOU ARE FURTHER NOTIFIED that if no written comments or protests are
received within the time limit set, the Commission will consider this matter on its merits and
enter its Order without a formal hearing. If written comments are received within the time limit
set, the Commission will consider them and, in its discretion, may set the same for formal
hearing.
YOU ARE FURTHER NOTIFIED that the Application has been filed with the
Commission and is available for public inspection during regular business hours at the
Commission offices. The Application is also available on the Commission s website at
www.puc.idaho.gov and then clicking on the "File Room" and then "Electric Cases.
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held
pursuant to the Commission s jurisdiction under Title 61 of the Idaho Code and specifically
Idaho Code ~~ 61-524. The Commission may enter any final Order consistent with its authority
under Title 61.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be
conducted pursuant to the Commission s Rules of Procedure, IDAP A 31.01.01.000 et seq.
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 30697
ORDER
IT IS HEREBY ORDERED that this Application will be processed under Modified
Procedure. Persons interested in submitting written comments regarding this case or protesting
the use of Modified Procedure should do so no later than 60 days from the service date of this
Order.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this J ~
day of December 2008.
MACK A. REDFO
...---~ ~'
MARSHA H. SMITH, COMMISSIONER
11 PTOl'J CO ISSIONER
ATTEST:
Je D. JewellCo ission Secretary
O:IPC-O8-- np
NOTICE OF APPLICATION
NOTICE OF MODIFIED PROCEDURE
ORDER NO. 30697