20120217Joint Motion for Settlement.pdf

JASON B. WILLIAMS
Corporate Counsel
iwilliamscmidahopower.com
eesIDA~POR~
An IDACORP Company
February 17, 2012
VIA HAND DELIVERY
Jean D. Jewell, Secretary
Idaho Public Utilties Commission
472 West Washington Street
Boise, Idaho 83702
Re: Case No. IPC-E-12-02
IN THE MATTER OF THE PETITION OF HOKU MATERIALS, INC. FOR
REPARA TlONS AND REFORM A TlON OF ITS AMENDED SPECIAL
CONTRACT WITH IDAHO POWER COMPANY
Dear Ms. Jewell:
Enclosed for filng please find an original and seven (7) copies of the Joint Motion
for Approval of Settlement Stipulation in the above matter.
Also enclosed for filing are nine (9) copies of the testimony of Michael J.
Youngblood in support of the settlement stipulation. One copy of Mr. Youngblood's
testimony has been designated as the "Reportets Copy." In addition, a disk containing a
Word version of Mr. Youngblood's testimony is enclosed for the Reporter.
Very truly yours, ~~~.
(~~: B. Willams
JBW:csb
Enclosures
1221 W. Idaho St. (83702)
P.O. Box 70
Boise, ID 83707
e e
DEAN J. MILLER (ISB No. 1968)
CHAS. F. McDEVITT (ISB No. 835)
McDEVITT & MILLER, LLP
420 West Bannock Street (83702)
P.O. Box 2564
Boise, Idaho 83701
Telephone: [phone]
Facsimile: [phone]
ioe~mcdevitt-miller.com
"'CF i:nRi: . - .-..
zon fEB '1 PM 3: 59
Attorneys for Hoku Materials, Inc.
JASON B. WILLIAMS (ISB No. 8718)
LISA D. NORDSTROM (ISB No. 5733)
Idaho Power Company
1221 West Idaho Street (83702)
P.O. Box 70
Boise, Idaho 83707
Telephone: [phone]
Facsimile: [phone]
jwilliamscaidahopower.com
Inordstromcaidahopower.com
Attorneys for Idaho Power Company
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE PETITION OF )
HOKU MATERIALS, INC. FOR ) CASE NO. IPC-E-12-02
REPARATIONS AND REFORMATION )
OF ITS AMENDED SPECIAL ) JOINT MOTION FOR APPROVAL
CONTRACT WITH IDAHO POWER ) OF SETTLEMENT STIPULATIONCOMPANY )
)
COMES NOW, Hoku Materials, Inc. ("Hoku"), Idaho Power Company ("Idaho
Powet' or "Company"), and the Staff ("Staff) of the Idaho Public Utilties Commission
("Commission") (referred to herein colleçtively as the "Parties"), by and through their
undersigned attorneys, and hereby move the Commission for an order accepting the
settlement stipulation ("Settlement Stipulation") filed herewith. This Motion is based on
the following:
JOINT MOTION FOR APPROVAL OF SETTLEMENT STIPULATION - 1
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I. BACKGROUND
1 . Hoku and Idaho Power entered into an Electric Service Agreement
("ESA") on September 17, 2008. The Commission approved the ESA by Order dated
March 16, 2009 (Order No. 30748). The effective date of the original ESA was for Idaho
Power to begin providing service to Hoku on June 1, 2009, and conclude on May 31,
2013. On May 28,2009, at the request of Hoku, Idaho Power submitted a motion for a
Commission order authorizing a delay in the commencement of the ESA unti December
1, 2009. Idaho Power and Hoku subsequently submitted an Amended and Restated
Electric Service Agreement ("AESA") for Commission approval. By Order dated July
24, 2009, the Commission approved the request to delay the original ESA's effective
date as well as the AESA, noting that the AESA and the delay of the effective date on
which Hoku would begin receiving energy from Idaho Power would "not unduly
prejudice Idaho Powets other customers." (Order No. 30869 at 4 (emphasis in
original)).
2. On November 24, 2009, Idaho Power advised the Commission of a
confidential Letter Agreement that the Company entered into with Hoku which
temporarily waived Hoku's minimum biled energy charge beginning December 1, 2009,
until such time when the "contract load factor first exceeds 70% of the total contract
demand or March 31, 2011, whichever occurs earliest." (Order No. 31005 at 4). The
Commission granted the request to temporarily waive the minimum biled energy charge
for Hoku, noting "Idaho Powets wilingness to again accommodate Hoku's concerns by
delaying the full implementation of the ESA as Hoku attempts to establish a firm footing
amidst the current adverse business climate." (Order No. 31005 at 5). The
Commission cautioned, however, that the temporary waiver did not "eclipse the
Commission's statutory duty to ensure that Idaho Powets rates and charges are fair,
JOINT MOTION FOR APPROVAL OF SETTLEMENT STIPULATION - 2
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just and reasonable." Id. Specifically, the Commission stated that it "must verify that
the costs associated with the delayed implementation of the ESA are borne primarily by
the contract parties and not Idaho Powets remaining customer base." Id.
3. Idaho Power issued an invoice to Hoku in early December 2011, in the
amount of approximately $1.9 milion for services provided to Hoku for November 2011.
Idaho Power did not receive payment from Hoku by the December 21, 2011, invoice
due date. On December 22, 2011, Idaho Power sent Hoku an Initial Notice of
Termination, per the Commission's Utility Customer Relations Rules 602 and 603,
indicating that service to the Hoku facilty would be terminated on the morning of
Thursday, December 29, 2011. On December 27, 2011, Idaho Power sent Hoku a Final
Notice of Termination indicating that, consistent with the Company's disconnection
practices during the holidays, Hoku's energy service would not be terminated for non-
payment until Tuesday, January 3, 2012.
4. On December 29, 2011, Hoku filed a Complaint against Idaho Power at
the Commission, Case No. IPC-E-11-28. Idaho Power submitted an Answer, Motion to
Dismiss, and Motion to Set Termination Date on December 30, 2011. On January 5,
2012, the Commission issued a Notice of Scheduling and Notice of Oral Argument,
setting an oral argument on Hoku's Complaint and the Company's Motion to Dismiss for
January 11, 2012. On January 9, 2012, Hoku submitted a Response to the Company's
Motion to Dismiss as well as a Complaint for Contract Reformation and Reparations,
which the Commission subsequently renamed as In the Matter of the Petition of Hoku
Materials, Inc. for Reparations and Reformation of Its Amended Special Contract With
Idaho Power Company and for which a new case was established, Case No. IPC-E-12-
02. Oral argument was heard on January 11, 2012. On January 13, 2012, Hoku and
Idaho Power each submitted Supplemental Statements of Facts. On January 13, 2012,
JOINT MOTION FOR APPROVAL OF SETTLEMENT STIPULATION - 3
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the Commission issued Final Order No. 32437, resolving Hoku's Complaint. That Order
granted in part and denied in part Hoku's Complaint and directed Idaho Power and
Hoku to enter into immediate negotiations to see if settlement of the Petition for
Reformation was possible. Order No. 32437 further directed Commission Staff to
mediate those settlement discussions. Hoku, Idaho Power, and Staff engaged in a
series of settlement discussions after the issuance of Order No. 32437.
5. Based on the settlement negotiations, the Parties have agreed to resolve
and settle all of the issues in the case. A copy of the signed Settlement Stipulation
evidencing that settlement is included as Attachment NO.1. The Settlement Stipulation
provides Hoku relief in the form of reduced minimum payments under the AESA for up
to the next eighteen (18) months while at the same time protecting Idaho Power and its
customers by requiring a one-time, up front payment in addition to repayment of
deferred amounts during the final year of the contract. In addition, the Settlement
Stipulation proposes to extend the term of the contract to December 1, 2014.
6. Filed contemporaneously herewith are the direct testimonies of Scott Paul
on behalf of Hoku, Michael J. Youngblood on behalf of Idaho Power, and Randy Lobb
on behalf of the Commission Staff in support of the Settlement Stipulation. For the
reasons set forth therein, the Parties believe the Settlement Stipulation is reasonable
and in the public interest.
7. The Parties recommend that the Commission grant this Motion and
approve the Settlement Stipulation in its entirety, without material change or condition,
pursuant to RP 274.
8. Within thirty (30) days of the entry of a final order approving the
Settlement Stipulation without modification or condition, Idaho Power and Hoku wil
prepare and execute a Second Amended and Restated Electric Service Agreement
JOINT MOTION FOR APPROVAL OF SETTLEMENT STIPULATION - 4
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incorporating the terms of the Settement Stipulation and file the same with the
Commission.
II. REQUEST FOR MODIFIED PROCEDURE
9. Pursuant to RP 201, the Parties believe the pubic interest does not require
a hearing to consider the issues presented by this Motion and the Parties request it be
processed by Modified Procedure.
10. In order to promptly settle the rights and expectations of the Parties, the
Parties request expeditious consideration of the Settlement Stipulation and recommend
that the Commission establish a fourteen (14) day comment period.
NOW, THEREFORE, the Parties respectfully request that the Commission enter
its Order (1) directing that consideration of the Settlement Stipulation be by Modified
Procedure with a fourteen (14) day comment period thereafter; (2) approving the
Settlement Stipulation without condition or modification; and (3) directing that Hoku and
Idaho Power file with the Commission within thirty (30) days of a final order approving
the Settlement Stipulation a Second Amended and Restated Electric Service
Agreement and thereupon dismissing with prejudice Hoku's Petition.
Respectfully submitted this 1 th day of February 2012. "
DEAN J. MILLER
Attorney for Hoku Materials, Inc.
DONALD L. HOWELL, II
Deputy Attorney General
Attorney for Commission Staff
JOINT MOTION FOR APPROVAL OF SETTLEMENT STIPULATION - 5
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incorporating the terms of the Settement Stipulation and file the same with the
Commission.
II. REQUEST FOR MODIFIED PROCEDURE
9. Pursuant to RP 201, the Partes believe the pubic interest does not require
a hearing to consider the issues presented by this Motion and the Parties request it be
processed by Modified Procedure.
10. In order to promptly settle the rights and expectations of the Parties, the
Parties request expeditious consideration of the Settlement Stipulation and recommend
that the Commission establish a fourteen (14) day comment period.
NOW, THEREFORE, the Partes respectflly request that the Commission enter
its Order (1) directing that consideration of the Settement Stipulation be by Modified
Procedure with a fourteen (14) day comment period thereafter; (2) approving the
Settlement Stipulation without condition or modification; and (3) directing that Hoku and
Idaho Power file with the Commission within thirt (30) days of a final order approving
the Settement Stipulation a Second Amended and Restated Electric Servce
Agreement and thereupon dismissing with prejudice Hoku's Petition.
Respectfully submittd this 17th day of February 2012.
JASON B. WILLIAMS~fulü:rc~~ny
~M LLER
Attorney for Hoku Materials, Inc.
DONALD L. HOWELL, II
Deputy Attorney General
Attorney for Commission Staff
JOINT MOTION FOR APPROVAL OF SETTLEMENT STIPULATION - 5
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incorporating the terms of the Settlement Stipulation and file the same with the
Commission.
II. REQUEST FOR MODIFIED PROCEDURE
9. Pursuant to RP 201, the Parties believe the pUbic interest does not require
a hearing to consider the issues presented by this Motion and the Parties request it be
processed by Modified Procedure.
10. In order to promptly settle the rights and expectations of the Parties, the
Parties request expeditious Gonsideration of the Settlement Stipulation and recommend
that the Commission establish a fourteen (14) day comment period.
NOW, THEREFORE, the Parties respectfully request that the Commission enter
its Order (1) directing that COnsideration of the Settlement Stipulation be by Modified
Procedure with a fourteen (14) day comment period thereafter; (2) approving the
Settlement Stipulation without condition or modification; and (3) directing that Hoku and
Idaho Power file With the Commission within thirt (30) days of a final order approVing
the Settlement Stipulation a Second Amended and Restated Electric Service
Agreement and thereupon dismissing with prejudice Hoku's Petiion.
RespectfuUysubmitted this 17th day of February 2012.
JASON B. WILLIAMS
Attorney for Idaho Power Company
DEAN J. MILLER
Atto ey for Hoku Materials nco
DONALD OWELL, II
Deputy Attorney General
Attorney for Commission Staff
JOINT MOTION FOR APPROVAL OF SETTLEMENT STIPULATION -5
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CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on this 1 th day of February 2012 I served a true and
correct copy of the within and foregoing JOINT MOTION FOR APPROVAL OF
SETTLEMENT STIPULATION upon the following named parties by the method
indicated below, and addressed to the following:
Commission Staff
Donald L. Howell, II
Deputy Attorneys General
Idaho Public Utilities Commission
472 West Washington (83702)
P.O. Box 83720
Boise, Idaho 83720-0074
-2 Hand Delivered
U.S. Mail
_ Overnight Mail
FAX
-2 Email Don.Howellcapuc.idaho.gov
Hoku Materials, Inc.
Dean J. Miler
McDEVITT & MILLER LLP
420 East Bannock (83702)
P.O. Box 2564
Boise, Idaho 83701
Hand Delivered
-lU.S. Mail
_ Overnight Mail
FAX
-2 Email joecamcdevitt-miler.com
heathercamcdevitt-miller.com
'"
-'\~~& B. Willams
JOINT MOTION FOR APPROVAL OF SETTLEMENT STIPULATION - 6
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BEFORE THE
IDAHO PUBLIC UTiliTIES COMMISSION
CASE NO. IPC-E-12-02
ATTACHMENT NO.1
SETTLEMENT STIPULATION
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DEAN J. MILLER (ISB No. 1968)
CHAS. F. MCDEVITT (ISB No. 835)
McDEVITT & MILLER, LLP
420 W. Bannock Street
PO Box 2564-83701
Boise, ID 83702
Telephone: [phone]
Facsimile: [phone]
joecamcdevitt-miller.com
Attorneys for Hoku Materials, Inc.
JASON B. WILLIAMS (ISB No. 8718)
LISA D. NORDSTROM (ISB No. 5733)
Idaho Power Company
1221 West Idaho Street (83702)
P.O. Box 70
Boise, Idaho 83707
Telephone: [phone]
Facsimile: [phone]
iwilliamscaidahopower.com
Inordstromcaidahopower.com
Attorneys for Idaho Power Company
DONALD L. HOWELL, II (ISB NO. 3366)
DEPUTY ATTORNEY GENERAL
IDAHO PUBLIC UTILITIES COMMISSION
472 WEST WASHIGTON STREET
POBOX 83720
BOISE, ID 83720-0074
Tele: [phone]
Fax: [phone]
don. howellcapuc. idaho.gov
Attorney for Commission Staff
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE PETITION OF )
HOKU MATERIALS, INC. FOR ) CASE NO. IPC-E-12-02
REPARATIONS AND REFORMATION )
OF ITS AMENDED SPECIAL ) SETTLEMENT STIPULATION
CONTRACT WITH IDAHO POWER )COMPANY )
SETTLEMENT STIPULATION - 1
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This Settlement Stipulation ("Settlement Stipulation") is entered into by and
among Hoku Materials, Inc. ("Hoku"), Idaho Power Company ("Idaho Powet' or
"Company"), and the Staff of the Idaho Public Utilties Commission ("Staff), referred to
herein collectively as the "Parties." The Parties agree as follows.
I. INTRODUCTION
1. The terms and conditions of this Settlement Stipulation are set forth
herein. The Parties agree that this Settlement Stipulation represents a fair, just, and
reasonable compromise of the issues in this proceeding and that this Settlement
Stipulation is in the public interest. The Parties maintain that the Settlement Stipulation
and its acceptance by the Idaho Public Utilities Commission ("IPUC" or "Commission")
represent a reasonable resolution of all issues identified in this matter. Therefore, the
Parties recommend that the Commission, in accordance with RP 274-76, approve the
Settlement Stipulatiòn and all of its terms and conditions without material change or
condition.
II. BACKGROUND
2. Hoku and Idaho Power entered into an Electric Service Agreement ("ESA")
on September 17, 2008. The Commission approved the ESA by Order dated March 16,
2009 (Order No. 30748). The effective date of the original ESA was for Idaho Power to
begin providing service to Hoku on June 1,2009, and conclude on May 31,2013. On May
28, 2009, at the request of Hoku, Idaho Power submitted a Motion for a Commission Order
authorizing a delay in the commencement of the ESA until December 1, 2009, and an
extension of the agreement end date until December 1 , 2013. Idaho Power and Hoku
SETTLEMENT STIPULATION - 2
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subsequently submitted an amended and restated ESA ("AESA") for Commission
approval. By Order dated July 24, 2009, the Commission approved the request to delay
the original ESA's effective date as well as the AESA, noting that the AESA and the delay
of the effective date on which Hoku would begin receiving energy from Idaho Power would
"not unduly prejudice Idaho Powets other customers." Order No. 30869 at 4 (emphasis in
original).
3. On November 24, 2009, Idaho Power advised the Commission of a
confidential Letter Agreement that the Company entered into with Hoku which
temporarily waived Hoku's minimum biled energy charge beginning December 1, 2009,
until such time when the "contract load factor first exceeds 70% of the total contract
demand or March 31, 2011, whichever occurs earliest." Order No. 31005 at 4. The
Commission granted the request to temporarily waive the minimum biled energy charge
for Hoku, noting "Idaho Powets wilingness to again accommodate Hoku's concerns by
delaying the full implementation of the ESA as Hoku attempts to establish a firm footing
amidst the current adverse business climate." Order No. 31005 at 5. The Commission
cautioned, however, that the temporary waiver did not "eclipse the Commission's
statutory duty to ensure that Idaho Powets rates and charges are fair, just and
reasonable." Id. Specifically, the Commission stated that it "must verify that the costs
associated with the delayed implementation of the ESA are borne primarily by the
contract parties and not Idaho Powets remaining customer base." Id.Hoku paid,
pursuant to the AESA, to Idaho Power monthly demand charges from December 1,
2010 through March 31, 2011 and the monthly demand and biled minimum energy
SETTLEMENT STIPULATION - 3
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charges from April 1, 2011 through December 2011. Hoku also paid to Idaho Power
approximately $18 milion for construction of a substation and transmission facilties.
4. Idaho Power issued Hoku an invoice in early December 2011 in the
amount of approximately $1.9 milion for services provided to Hoku for November 2011.
Prior to the due date, Hoku informed Idaho Power that Hoku's current cash flow
shortage was such that payment for the November 2011 invoice may not occur until
January 2012. Idaho Power did not receive payment by the December 21 due date of
this invoice. On December 22, Idaho Power sent Hoku an Initial Notice of Termination
per the Commission's Utilty Customer Relations Rules 602 and 603 ("Initial Notice"),
indicating that service to the Hoku facility would be terminated on the morning of
Thursday, December 29. On December 27, Idaho Power sent Hoku a Final Notice of
Termination ("Final Notice") indicating that consistent with the Company's disconnection
practices during the holidays, Hoku's energy service would not be terminated for non-
payment unti Tuesday, January 3, 2012.
5. On December 29, 2011, Hoku filed a Complaint against Idaho Power at
the Commission. Case No. IPC-E-11-28. Idaho Power submitted an Answer, Motion to
Dismiss, and Motion to Set Termination Date on December 30, 2011. The Commission
issued on January 5, 2012, a Notice of Scheduling and a Notice of Oral Argument,
setting an oral argument on Hoku's Complaint and the Company's Motion to Dismiss for
January 11, 2012. On January 9,2012, Hoku submitted a Response to the Company's
Motion to Dismiss as well as a "Complaint" for Contract Reformation and Reparations,
which the Commission subsequently renamed a "Petition" for Contract Reformation and
for which a new case was established. Case No. IPC-E-12-02. Oral argument in Case
SETTLEMENT STIPULATION - 4
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No. IPC-E- 11-28 was heard on January 11. On January 13, 2012, Hoku and Idaho
Power each submitted a Supplemental Statement of Facts. On January 13, 2012, the
Commission issued a Final Order No. 32437 resolving Hoku's termination Complaint.
That Order granted in part and denied in part Hoku's complaint and directed Idaho
Power and Hoku to enter into immediate negotiations to see if settlement of the Petition
for Reformation was possible. Order No. 32437 further directed Commission Staff to
mediate those settlement discussions. This Settlement Stipulation is the fruit of those
settlement negotiations.
Based upon the settlement discussions, as a compromise of the positions in this
case, and for other consideration as set forth below, the Parties agree to the following
terms:
III. TERMS OF THE SETTLEMENT STIPULATION
6. Contract Reformation. The Parties agree that the AESA shall be reformed
as follows:
6.1 Deferral Period. Beginning effective January 1, 2012 and continuing
through June 30, 2013 (the "Deferral Period") Hoku's monthly Minimum Biled Energy
charge shall be Eight-Hundred Thousand Dollars ($800,000) ("Modified Minimum Biled
Energy Charge") to be applied by Idaho Power to First Block Demand, Second Block
Demand, and First Block Energy charges. In addition, Idaho Power shall apply, and
Hoku shall pay, the applicable demand side management rider ("DSM Ridet') charge as
applied to the demand and energy charges, consistent with the AESA. Thus, the
amount of the DSM Rider charge shall be in addition to the Modified Minimum Biled
Energy Charge. Idaho Powets accounting for each of these components wil be treated
SETTLEMENT STIPULATION - 5
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the same as the current treatment for each component under the current AESA. Except
as otherwise provided for herein, the Deferral Period shall expire on July 1, 2013, and
the Minimum Biled Energy charge shall revert back to what is contained in the current
AESA. The first payment of $932,000 shall be wire transferred to Idaho Power by no
later than February 17, 2012. Such payment shall be deemed to satisfy the invoice
submitted to Hoku by Idaho Power on February 2, 2012, consistent with the terms of
this Settlement Stipulation. .
6.2 Balancing Mechanism. Effective January 1, 2012, Idaho Power shall use a
"Balancing Mechanism" that starts at zero, shall not exceed a cap of $16.5 millon, and
shall accrue interest at six percent (6%). The Balancing Mechanism wil track and accrue
on a monthly basis the difference between: 1) the first block minimum energy charges
allocable to the Company's Idaho jurisdictional customers excluding all first and second
block demand charges under the AESA; and 2) the modified minimum billed energy
charge (excluding demand) under this Settlement Stipulation. No monthly adjustment to
the Balancing Mechanism wil occur if Hoku's monthly payment of the modified minimum
biled energy charge (excluding demand) made under this Settlement Stipulation equals or
exceeds the first block minimum energy charges (excluding all first and second block
demand charges) under the AESA. Beginning with its January 2014 invoice for services
rendered for December 2013, Idaho Power shall charge Hoku, in addition to the then-
applicable monthly demand charges and energy charges, an amount equal to the
amortization of the total Balancing Mechanism balance over twelve (12) months at six
percent (6%) interest. One-hundred percent (100%) of the payments made by Hoku to
pay down the Balancing Mechanism shall be allocated to Idaho Powets customers via
SETTLEMENT STIPULATION - 6
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the Company's Power Cost Adjustment ("PCA"). The Parties expressly understand and
agree that the amounts tracked by the Balancing Mechanism do not represent a liabilty
or obligation of Idaho Power to its customers until such final, non-refundable amounts
are received by Idaho Power from Hoku and applied as described herein.
6.3 Up-Front Payment. In consideration for Idaho Power granting Hoku the
Deferral Period, Hoku shall pay to Idaho Power, in addition to any other amounts
payable under the AESA, as modified by this Settlement Stipulation, an amount equal to
Three-Milion Eight-Hundred Thousand Dollars ($3.8 millon) ("Up-Front Payment") as
follows: a) upon Commission approval of this Settlement Stipulation, Idaho Power shall
immediately apply $2 millon of the existing $4 millon deposit previously paid by Hoku to
the Up-Front Payment; and b) Hoku shall pay to Idaho Power as part of and in addition
to its monthly invoice for services provided for under the AESA, as modified by this
Settlement Stipulation, an amount equal to One-Hundred Thousand Dollars ($100,000)
per month for a period of eighteen (18) months beginning with the invoice issued in
February 2012 for services provided in January 2012. Idaho Power shall record the $3.8
millon Up-Front Payment to the same account as the Second Block Energy charge.
6.4 Term & Rates. The Term of the AESA shall be extended to terminate as
of December 1, 2014. Effective December 1, 2013, Hoku's First Block Energy charge
under the AESA shall be reduced to an amount equal to the Second Block Energy
charge, meaning Hoku wil pay embedded-cost based rates beginning with services
provided on and after December 1, 2013, including the then-applicable Minimum Biled
Energy charge.
SETTLEMENT STIPULATION-7
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6.5 Usage. Except as provided for herein, Hoku agrees to cap its monthly
power demand during the Deferral Period at 20 megawatts ("MW"). In the event Hoku
increases, as provided for herein, the 20 MW cap up to a maximum of 82 MW as
allowed for in the AESA, Hoku must provide Idaho Power a firm, 12-month forward-
looking ramp-up schedule at least six-months in advance of any increase in energy
consumption above 20 MW. In addition, Idaho Power wil agree to provide such
additional energy thirt (30) days after receipt of any required additional deposit
amounts. Hoku agrees that failure to comply with the ramp-up schedule and/or any
additional deposit requirements relieves Idaho Power of the obligation to provide Hoku
with the additional requested energy. In addition, Hoku shall be required to give Idaho
Power at least thirty (30) days prior written notice of when Hoku's monthly energy
consumption is expected to exceed 10 MW for twelve (12) consecutive months.
6.6 Reversion to AESA. In the event Hoku uses more than 20 MW of energy
in any given month during the Deferral Period, Hoku shall be obligated to pay the
Minimum Biled Energy charge according to the current AESA for the remainder of the
Deferral Period.
7. Hoku agrees to remain current on all invoices it receives from Idaho
Power for the remainder of the Term of the AESA as modified by this Settlement
Stipulation.
8. Upon Commission approval of this Settlement Stipulation, Hoku's Petition
for Reformation in this proceeding shall be dismissed with prejudice. Within thirty (30)
days of Commission approval of this Settlement Stipulation, the parties shall submit an
SETTLEMENT STIPULATION - 8
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amended and revised AESA to reflect the terms and conditions of this Settlement
Stipulation.
9. The Parties agree that this Settlement Stipulation represents a
compromise of the positions of the Parties in this case. As provided in RP 272, other
than any testimony filed in support of the approval of this Settlement Stipulation, and
except to the extent necessary for a Party to explain before the Commission its own
statements and positions with respect to the Settlement Stipulation, all statements made
and positions taken in negotiations relating to this Settlement Stipulation are confidential
and wil not be admissible in evidence in this or any other proceeding.
10. The Parties recommend that the Commission issue a Notice of Proposed
Settlement Stipulation via Modified Procedure and shorten the comment period to
fourteen (14) days from the date the Notice is issued.
11. The Parties submit this Settlement Stipulation to the Commission and
recommend approval in its entirety pursuant to RP 274-76. The Parties shall support
this Settlement Stipulation before the Commission, and shall not appeal a Commission
Order approving the Settlement Stipulation or an issue resolved by the Settlement
Stipulation. If this Settlement Stipulation is challenged by anyone who is not a Party,
the Parties reserve the right to file testimony, cross-examine witnesses, and put on such
case as they deem appropriate to respond fully to the issues presented, including the
right to raise issues that are incorporated in the settlements embodied in this Settlement
Stipulation. Notwithstanding this reservation of rights, the Parties agree that they wil
continue to support the Commission's adoption of the terms of this Settlement
Stipulation.
SETTLEMENT STIPULATION - 9
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12. If the Commission rejects any part or all of this Settlement Stipulation, or
imposes any additional material conditions on approval of this Settlement Stipulation,
each Party reserves the right, upon written notice to the Commission and the other
Parties to this proceeding, within fourteen (14) days of the date of such action by the
Commission, to withdraw from this Settlement Stipulation. In such case, no Party shall
be bound or prejudiced by the terms of this Settlement Stipulation, and each Party shall
be entitled to seek reconsideration of the Commission's Order, file testimony as it
chooses, cross-examine witnesses, and do all other things necessary to put on such
case as it deems appropriate. In such case, the Parties immediately wil request the
prompt reconvening of a prehearing conference for purposes of establishing a
procedural schedule for the completion of the case. The Parties agree to cooperate in
development of a schedule that concludes the proceeding on the earliest possible date,
taking into account the needs of the Parties in participating in hearings and preparing
briefs.
13. The Parties agree that this Settlement Stipulation is in the public interest
and that all of its terms and conditions are fair, just, and reasonable.
14. No Party shall be bound, benefited, or prejudiced by any position asserted
in the negotiation of this Settlement Stipulation, except to the extent expressly stated
herein, nor shall this Settlement Stipulation be construed as a waiver of rights unless
such rights are expressly waived herein. Except as otherwise expressly provided for
herein, execution of this Settlement Stipulation shall not be deemed to constitute an
acknowledgment by any Party of the validity or invalidity of any particular method,
theory, or principle of regulation or cost recovery. No Party shall be deemed to have
SETTLEMENT STIPULATION -10
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agreed that any method, theory, or principle of regulation or cost recovery employed in
arriving at this Settlement Stipulation is appropriate for resolving any issues in any other
proceeding in the future. No findings of fact or conclusions of law other than those
stated herein shall be deemed to be implicit in this Settlement Stipulation.
15. The obligations of the Parties are subject to the Commission's approval of
this Settlement Stipulation in accordance with its terms and conditions and upon such
approval being upheld on appeal, if any, by a court of competent jurisdicton.
16. This Settement Stipulation may be executed in counterparts and each
signed counterpart shall constitute an original document.
DATED this rl day of February 2012.
Hoku Materials, Inc.BY~
Attorney for Hoku Materjals, Inc.
Idaho Power Company
Idaho Public Utilities Commission Staff
By
Donald H. Howell, II
Deputy Attorney General
Attorney for Commission Staff
By
Jason B. Willams
Attorney for Idaho Power Company
SETTLEMENT STIPULATION - 11
e e
agreed that any method, theory, or principle of regulation or cost recovery employed In
arriving at this Settlement Stipulation is appropriate for resolving any issues in any other
proceeding in the future. No findings of fact or conclusions of law other than those
stated herein shall be deemed to be implicit In this Settlement Stipulation.
15. The obligations of the Parties are subject to the Commission's approval of
this Settlement Stipulation in accordance with its terms and conditions. and upon such
approval being upheld on appeal, If any, by a court of competent jurisdiction.
16. This Settlement Stipulation may be executed in counterparts and each
signed counterpart shall constitute an original document.
tt
DATED thiS.i day of February 2012.
Hoku Materials, Inc.
By
Dean J. Miler
Attorney for Hoku Materials, Inc.
Idaho Power Company
By
Jason B. Wiliams
Attorney for Idaho Power Company
SETTLEMENT STIPULATION -11
~e e
agreed that any method, theory, or principle of regulation or cost recovery employed in
arriving at this Settlement Stipulation is appropriate for resolving any issues in any other
proceeding in the future. No findings of fact or conclusions of law other than those
stated herein shall be deemed to be implicit in this Settlement Stipulation.
15. The obligations of the Parties are subject to the Commission's approval of
this Settlement Stipulation in accordance with its terms and conditions and upon such
approval being upheld on appeal, if any, by a court of competent jurisdiction.
16. This Settlement Stipulation may be executed in counterparts and each
signed counterpart shall constitute an original document.
. 4~DATED this -t day of February 2012.
Hoku Materials, Inc.Idaho Public Utilties Commission Staff
By
Dean J. Miler
Attorney for Hoku Materials, Inc.
By
Donald H. Howell, II
Deputy Attorney General
Attorney for Commission Staff
Idaho Power Company \.
~ '".. C?c-By ,-~
AâSBliams
LA~rney for Idaho Power Company
SETTLEMENT STIPULATION - 11