20230412Order_No_35735.pdf

ORDER NO. 35735 1

Office of the Secretary
Service Date
April 12, 2023
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF IDAHO POWER
COMPANY’S APPLICATION FOR
APPROVAL OF A REPLACEMENT
SPECIAL CONTRACT WITH MICRON
TECHNOLOGY, INC. AND A POWER
PURCHASE AGREEMENT WITH BLACK
MESA ENERGY, LLC

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CASE NO. IPC-E-22-06

ORDER NO. 35735

On March 10, 2022, Idaho Power Company (“Company”) applied to the Commission for
an order: 1) approving a revised Special Contract for electric service (“ESA” or “Micron ESA”)
between the Company and Micron Technology, Inc. (“Micron”), and 2) approving the 20-year
Power Purchase Agreement between the Company and Black Mesa Energy, LLC (“PPA” or
“Black Mesa PPA”) that was entered with the expectation of assigning the associated energy to
Micron under the ESA.
On August 1, 2022, the Commission issued Order No. 35482 approving the Black Mesa
PPA as filed but directing the Company to update its ESA to include Commission-directed
modifications within 90 days from August 1, 2022. Order No. 35482 at 18.
On August 22, 2022, the Company filed a Petition for Clarification (“Petition”)1 of the
Commission’s language directing that the Renewable Capacity Credit(s) (“RCC(s)”) “utilize the
rate and payment structure for . . . [Integrated Resource Plan] . . . -based energy storage projects.”
Petition at 2. In its order on the Company’s Petition, the Commission directed the Company and
Commission Staff (“Staff”) to “work together to develop a rate structure for calculating Micron’s
RCC under the ESA” which the Company would then file as a compliance filing. Order No. 35532
at 10.
On December 23, 2022, the Company submitted a Compliance Filing (“Filing”) elucidating
two methods—the “Proposed Renewable Capacity Credit Payment Performance Mechanism”

1The Company, along with the city of Boise City (“Boise”), also filed a Petition requesting the Commission reconsider
its directive in Order No. 35482 that excess energy credits and renewable capacity credits under the Micron ESA be
subject to 95% sharing in the Power Cost Adjustment (“PCA”). In Order No. 35607, denying Boise’s petition for
reconsideration, the Commission reaffirmed its previous directive regarding the sharing of excess energy credits and
renewable capacity credits under the PCA; the period for the Company, Boise, and any other interested party to appeal
this determination expired on January 4, 2023.
ORDER NO. 35735 2

(“Proposed Method”) and the “Alternative IRP-Based Energy Storage Project Renewable Capacity
Credit Payment Performance Mechanism” (“Alternative Method”)—for calculating the RCC
under the ESA.
On April 10, 2023, Staff submitted a Decision Memorandum (“Memo”) as an item on the
Commission’s April 10, 2023, Consent Agenda. The Memo detailed Staff’s work with the
Company in devising a rate structure for calculating the RCC under the Micron ESA consistent
with the Commission’s directives. The Memo recommended the Commission approve the
Company’s Proposed Method for calculating RCCs under the Micron ESA. The Commission
approved the Memo at its April 10, 2023, Decision Meeting.
COMMISSION FINDINGS AND DECISION
After reviewing the entire record in this case, including the Company’s Filing and Staff’s
Memo, we find that the Company’s Proposed Method for calculating the value of the RCC under
the Micron ESA ensures that Micron will be fairly compensated for energy actually delivered to
the Company’s system. We further find that the Proposed Method will also induce Micron and
other similarly situated participants in the Clean Energy Your Way (“CEYW”) program to perform
effectively to meet capacity needs while protecting non-participating customers from
overpayment. We acknowledge that the Company and Staff worked together to develop the
Proposed Method pursuant to our directive in Order No. 35532 and that both the Company and
Staff agree the Proposed Method meets the Commission’s intent and provides the best outcome
for Micron and the Company’s other customers. Last, we find that the Proposed Method provides
a consistent framework for calculating RCCs that can be applied to other energy service
agreements the Company may execute with other Large Power Service customers participating in
the CEYW Construction option program.
Therefore, based on the foregoing, we approve the Company’s Proposed Method for
calculating RCC payments under the Micron ESA. We note the Proposed Method may guide the
Company and CEYW Construction customers when executing future Energy Service Agreements.
ORDER
IT IS HEREBY ORDERED that the Company shall file an updated ESA and Schedule 26
consistent with the Commission’s findings in this Order and other relevant orders by June 1, 2023.

ORDER NO. 35735 3

DONE by order of the Idaho Public Utilities Commission at Boise, Idaho this 12th day of
April 2023.

_______________________________________
ERIC ANDERSON, PRESIDENT

_______________________________________
JOHN R. HAMMOND JR., COMMISSIONER

_______________________________________
EDWARD LODGE, COMMISSIONER

ATTEST:

Jan Noriyuki
Commission Secretary

I:\Legal\ELECTRIC\IPC-E-22-06 Micron Black Mesa\orders\IPCE22206_final_compliance_rn.docx