20221213Decision Memo.pdf

DECISION MEMORANDUM 1
DECISION MEMORANDUM

TO: COMMISSIONER ANDERSON
COMMISSIONER CHATBURN
COMMISSIONER HAMMOND
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL

FROM: RILEY NEWTON
DEPUTY ATTORNEY GENERAL

DATE: DECEMBER 13, 2022

SUBJECT: 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.

On March 10, 2022, Idaho Power Company (“Company”) applied to the Commission for
an order: 1) approving a revised Special Contract for electric service 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 that was entered 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, within 90 days from August 1, 2022. Order No. 35482 at 18.
On August 22, 2022, the Company filed a Petition for Clarification. In granting the
Company’s Petition, the Commission stayed the directive in Order No. 35482 requiring the
Company to file an updated Micron ESA by October 30, 2022, ordering 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 by December 13, 2022, or by another date
set by Commission order.” Order No. 35532 at 10.
On December 9, 2022, the Company filed a Motion for Extension of Time to Make
Compliance Filing (“Motion”) requesting the deadline to make its compliance filing be extended
to December 23, 2022.
DECISION MEMORANDUM 2
STAFF RECOMMENDATION
Staff and the Company have been working together in good faith to develop a rate structure
for calculating Micron’s RCC under the ESA, participating in five meetings between November
2, 2022, and December 8, 2022. Staff and the Company have developed the fundamental structure
for calculating Micron’s RCC under the ESA but believe that additional time to finalize the data
and work through some remaining details will be beneficial to Staff, the Company, and ultimately
the Commission’s understanding. Staff recommends the Commission grant the Company’s Motion
and extend the deadline for the Company to make a compliance filing to December 23, 2022.
COMMISSION DECISION
Does the Commission wish to grant the Company’s Motion and extend the deadline for it
to make its compliance filing until December 23, 2022?

______________________________
Riley Newton
Deputy Attorney General

I:\Legal\ELECTRIC\IPC-E-22-06\memos\IPCE2206_dec_rn.docx