20230823Final_Order_No_35898.pdf

ORDER NO. 35898 1

Office of the Secretary
Service Date
August 23, 2023
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

On March 10, 2022, Idaho Power Company (“Company”) applied to the Commission for
an order: 1) approving a revised Special Contract (“ESA”) for electric service between the
Company and Micron Technology, Inc. (“Micron”), and 2) approving the 20-year Power Purchase
Agreement (“PPA”) between the Company and Black Mesa Energy, LLC that was entered into
with the expectation of assigning the associated energy to Micron under the revised Special
Contract.
On August 1, 2022, the Commission issued Order 35482 approving the Black Mesa PPA
as filed but directing the Company to file an updated ESA, consistent with the Commission’s
modifications. Order No. 35482 at 18.
On August 22, 2022, the Company filed a Petition for Clarification and Reconsideration
(“Petition”). The Company requested clarification pertaining to the Renewable Capacity Credit
(“RCC”) method in Order No. 35482.
On September 19, 2022, the Commission granted the Company’s Petition, and stayed the
directive in Order No. 35482 requiring the Company to file an updated Micron ESA by October
30, 2022, and ordered the Company and Staff to “work together to develop a rate structure for
calculating Micron’s [ RCC] under the ESA which the Company shall file as a compliance filing
in this case . . . .” Order No. 35532 at 10.
On December 23, 2022, the Company submitted a Compliance Filing that included its
Proposed Renewable Capacity Credit Payment Performance Mechanism (“Proposed Method”)
and in the alternative, the IRP-based Energy Storage Project Renewable Capacity Credit (“RCC”)
Payment Performance Mechanism (“Alternative Method”), to calculate RCC payments based on
collaboration between the Company and the Commission Staff (“Staff”).
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
)
)
)
)
)
)
)
)
CASE NO. IPC-E-22-06

ORDER NO. 35898
ORDER NO. 35898 2

On April 10, 2023, Staff submitted a Decision Memorandum (“Memo”) which 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 approval of
the Company’s Proposed Method for calculating RCCs under the Micron ESA.
On April 12, 2023, the Commission issued Order 35735 approving the Company’s
Proposed Method for calculating RCC payments under the Micron ESA. The Commission also
ordered the Company to file an updated ESA and Schedule 26 consistent with the Commission’s
findings in this Order and other relevant orders by June 1, 2023.
On June 1, 2023, the Company filed a Second Compliance Filing to update the Micron
ESA and Schedule 26 consistent with the Commission’s findings in Order 35735 and other
relevant orders.
On June 20, 2023, Staff’s Decision Memorandum recommending approval of the Micron
ESA as amended May 31, 2023 and revised Schedule 26 went before the Commission. The
Commission accepted Staff’s recommendation regarding the amended Micron ESA and revised
Schedule 26.
We now issue this Order approving the Company’s Second Compliance Filing consisting
of the amended Micron ESA and revised Schedule 26, as filed.
COMMISSION DECISION
The Commission has jurisdiction over this matter under Idaho Code §§ 61-501, -502 and -
503. The Commission is empowered to investigate rates, charges, rules, regulations, practices, and
contracts of public utilities and to determine whether they are just, reasonable, preferential,
discriminatory, or in violation of any provision of law, and to fix the same by order. Idaho Code
§§ 61-502 and -503. The Commission may enter any final order consistent with its authority under
Title 61.
We have reviewed the record in this case and find that the Second Compliance Filing to
update the Micron ESA and Schedule 26 submitted by the Company on June 1, 2023, are consistent
with the Commission’s findings in Order 35735, is reasonable and consistent with our directives.
O R D E R
IT IS HEREBY ORDERED that the Company’s Second Compliance Filing to update the
Micron ESA and Schedule 26 are accepted as filed.
ORDER NO. 35898 3

THIS IS A FINAL ORDER. Any person interested in this Order may petition for
reconsideration within twenty-one (21) days of the service date of this order regarding any matter
decided in this Order. Within seven (7) days after any person has petitioned for reconsideration,
any other person may cross-petition for reconsideration. See Idaho Code § 61-626.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 23rd day of
August 2023.

________________________________________
ERIC ANDERSON, PRESIDENT

_______________________________________
JOHN CHATBURN, COMMISSIONER

_______________________________________
JOHN R. HAMMOND JR., COMMISSIONER

ATTEST:

__________________________________
Jan Noriyuki
Commission Secretary

I:\Legal\ELECTRIC\IPC-E-22-06 Micron Black Mesa\orders\IPCE2206_comp_dh.docx