HomeMy WebLinkAbout20231107Application.pdf
DONOVAN WALKER
Lead Counsel
dwalker@idahopower.com
November 7, 2023
VIA ELECTRONIC MAIL
Jan Noriyuki, Secretary
Idaho Public Utilities Commission
11331 West Chinden Blvd., Building 8
Suite 201-A
Boise, Idaho 83714
Re: Case No. IPC-E-23-30
Idaho Power Company’s Application for Approval of the Second
Amendment to the 2022 Special Contract for Electric Service Between
Idaho Power Company and Micron Technology, Inc.
Dear Ms. Noriyuki:
Attached for electronic filing is Idaho Power Company’s Application for Approval of
Second Amendment to Special Contract in the above-entitled matter. If you have any
questions about the attached documents, please do not hesitate to contact me.
Very truly yours,
Donovan Walker
DW:cld
Enclosures
RECEIVED
Tuesday, November 7, 2023 2:06:38 PM
IDAHO PUBLIC
UTILITIES COMMISSION
APPLICATION FOR APPROVAL OF SECOND AMENDMENT
TO THE MICRON SPEICAL CONTRACT - 1
DONOVAN E. WALKER (ISB No. 5921)
Idaho Power Company
1221 West Idaho Street (83702)
P.O. Box 70
Boise, Idaho 83707
Telephone: (208) 388-5317
Facsimile: (208) 388-6936
dwalker@idahopower.com
Attorney for Idaho Power Company
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF IDAHO POWER COMPANY FOR
APPROVAL OF THE SECOND
AMENDMENT TO THE 2022 SPECIAL
CONTRACT FOR ELECTRIC SERVICE
BETWEEN IDAHO POWER COMPANY
AND MICRON TECHNOLOGY, INC.
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CASE NO. IPC-E-23-30
APPLICATION FOR APPROVAL
OF SECOND AMENDMENT TO
SPECIAL CONTRACT
Idaho Power Company (“Idaho Power”), in accordance with RP 52 hereby
respectfully applies to the Idaho Public Utilities Commission (“Commission”) for an order
approving the Second Amendment to the 2022 Special Contract for Electric Service
Between Idaho Power Company and Micron Technology, LLC. (“Second Amendment”)
dated October 27, 2023, filed herewith as Attachment 1. Also included as Attachment 2
is both a red-lined and clean version of Schedule 26, which changes the date of the
Amended Special Contract. This Second Amendment replaces “January 31” with “March
1” in Section 10.1 of the Micron Special Contract.
In support of this Application, Idaho Power represents as follows:
APPLICATION FOR APPROVAL OF SECOND AMENDMENT
TO THE MICRON SPEICAL CONTRACT - 2
I. INTRODUCTION AND BACKGROUND
1. On March 9, 2022, Idaho Power and Micron entered into a revised Special
Contract for Electric Service (the “Micron Special Contract”), to replace the then-existing
special contract between the Parties that had been in effect since December 29, 2009
(“Micron’s 2009 Special Contract”). The Micron Special Contract contains provisions by
which Idaho Power will procure or construct, on Micron’s behalf, renewable resources to
assist Micron in meeting a portion of its annual energy requirements with renewable
energy generated by those resources - consistent with the provisions of Idaho Power’s
Clean Energy Your Way program. See, Case No. IPC-E-21-40. Idaho Power filed the
Micron Special Contract for Commission approval on March 10, 2022. Case No. IPC-E-
22-06.
II. THE FIRST AMENDMENT
2. On August 1, 2022, the Commission issued Order No. 35482 approving the
Micron Special Contract and Schedule 26 with specific modifications as directed in Order
No. 35482 relating to the treatment of Excess Generation Credits, Renewable Capacity
Credits (“RCC”), and cost sharing under the Power Cost Adjustment (as defined in Idaho
Power’s tariff on file with the IPUC). As directed by the Commission, Idaho Power worked
collaboratively with Commission Staff on the rate structure for Micron RCC payments and
the Commission issued Order No. 35735 on April 12, 2003, approving the proposed
method in Idaho Power’s First Compliance Filing with the IPUC dated December 23,
2022. The Parties subsequently entered into the First Amendment to the 2022 Special
Contract for Electric Service, dated as of May 31, 2023 (the “First Amendment”) to
address the modifications required by the Commission and submitted the same for the
APPLICATION FOR APPROVAL OF SECOND AMENDMENT
TO THE MICRON SPEICAL CONTRACT - 3
IPUC’s approval. On August 23, 2023, the Commission issued Final Order No. 35898,
approving Idaho Power’s Second Compliance Filing with the IPUC dated June 1, 2023,
including the First Amendment. Case No. IPC-E-22-06.
III. THE SECOND AMENDMENT
3. The Micron Special Contract contains a provision in Section 10.1 requiring
Idaho Power to retire, on Micron’s behalf, the Environmental Attributes (as defined in the
Micron Special Contract) associated with Project Output (as defined in the Micron Special
Contract) on or before January 31 of each year. Because of the logistics related to the
retirement of Environmental Attributes, the Parties desire to enter into this Second
Amendment to extend the annual deadline from January 31 to March 1 contained in
Section 10.1 of the Micron Special Contract and submit the same for the Commission’s
approval. The amended provision is as follows:
10.1 Environmental Attributes: Idaho Power shall, or shall
cause the Developer to, as soon as practicable but in any case
on or before March 1 January 31 of each calendar year, retire,
on Micron’s behalf, all Environmental Attributes associated
with Project Output through the Applicable Program.
4. The Amendment is subject to the Commission’s approval. All other terms
and conditions of the Micron Special Contract remain in full force and effect.
IV. PROCEDURE
5. Idaho Power believes that a hearing is not necessary to consider the issues
presented herein and respectfully requests that this Application be processed under
Modified Procedure; i.e., by written submissions rather than by hearing. RP 201, et seq.
V. COMMUNICATIONS AND SERVICE OF PLEADINGS
6. Communications and service of pleadings, exhibits, orders, and other
APPLICATION FOR APPROVAL OF SECOND AMENDMENT
TO THE MICRON SPEICAL CONTRACT - 4
documents relating to this proceeding should be sent to the following:
Donovan E. Walker Tim Tatum
Lead Counsel Connie Aschenbrenner
Idaho Power Company Idaho Power Company
1221 West Idaho Street (83702) 1221 West Idaho Street (83702)
P.O. Box 70 P.O. Box 70
Boise, Idaho 83707 Boise, Idaho 83707
dwalker@idahopower.com ttatum@idahopower.com
dockets@idahopower.com cashenbrenner@idahopower.com
VI. REQUEST FOR RELIEF
7. Idaho Power respectfully requests that the Commission issue an order
accepting and approving the Second Amendment to the 2022 Special Contract for Electric
Service Between Idaho Power Company and Micron Technology, LLC., as well as the
updated Schedule 26, submitted herewith without change or condition.
Respectfully submitted this 7th day of November 2023.
DONOVAN E. WALKER
Attorney for Idaho Power Company
APPLICATION FOR APPROVAL OF SECOND AMENDMENT
TO THE MICRON SPEICAL CONTRACT - 5
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on the 7th day of November 2023 I served a true and
correct copy of the within and foregoing APPLICATION FOR APPROVAL OF SECOND
AMENDMENT TO SPECIAL CONTRACT upon the following named parties by the
method indicated below, and addressed to the following:
Commission Secretary
Idaho Public Utilities Commission
P.O. Box 83720
Boise, ID 83720-0074
Hand Delivered
U.S. Mail
Overnight Mail
FAX
X Email
_____________________________
Christy Davenport
Legal Administrative Assistant
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-23-30
IDAHO POWER COMPANY
ATTACHMENT 1
Second Amendment to the 2022 Special Contract
Page 1 of 3
Micron ConfidentialConfidential
Micron ConfidentialMicron Confidential
SECOND AMENDMENT TO THE
2022 SPECIAL CONTRACT FOR ELECTRIC SERVICE
BETWEEN
IDAHO POWER COMPANY
AND
MICRON TECHNOLOGY, INC.
This Second Amendment to the 2022 Special Contract For Electric Servicece (this “Second
Amendment”) is effective as of October 2727, 2023 (“Effective Date”) and is entered into by and between
Micron Technology, Inc., a Delaware Corporation (“Micron”), and Idaho Power Company, an Idaho
Corporation (“Idaho Power”). Micron and Idaho Power may hereinafter be referred to individually as a
“Party” or collectively as the “Parties”.
WHEREAS, Micron is an existing retail customer of Idaho Power, taking service pursuant to a
special contract arrangement under Schedule 26.
WHEREAS, on March 9, 2022, Idaho Power and Micron entered into a revised Special Contract
for Electric Service (the “Micron Special Contract”), to replace the then-existing special contract between
the Parties that had been in effect since December 29, 2009 (“Micron’s 2009 Special Contract”).The
Micron Special Contract contains provisions by which Idaho Power will procure or construct, on Micron’s
behalf, renewable resources to assist Micron in meeting a portion of its annual energy requirements with
renewable energy generated by those resources -consistent with the provisions of Idaho Power’s Clean
Energy Your Way program. See Case No. IPC-E-2121-40.Idaho Power filed the Micron Special Contract
for Idaho Public Utility Commission (“IPUC” or “Commission”) approval on March 10, 2022. Case No.
IPC-E-2222-0606.
WHEREAS, on August 1, 2022, the IPUC issued Order No. 35482 approving the Micron Special
Contract and Schedule 26 with specific modifications as directed in Order No. 35482 relating to the
treatment of Excess Generation Credits, Renewable Capacity Credits (“RCC”), and cost sharing under the
Power Cost Adjustment (as defined in Idaho Power’s tariff on file with the IPUC). As directed by the
Commission, Idaho Power worked collaboratively with Commission Staff on the rate structure for Micron
RCC payments and the Commission issued Order No. 35735 on April 12, 2023, approving the proposed
method in Idaho Power’s First Compliance Filing with the IPUC dated December 23, 2022.The Parties
subsequently entered into the First Amendment to the 2022 Special Contract for Electric Service, dated as
of May 31, 2023 (the “First Amendment”) to address the modifications required by the Commission and
submitted the same for the IPUC’s approval. On August 23, 2023, the Commission issued Final Order
No. 35898, approving Idaho Power’s Second Compliance Filing with the IPUC dated June 1, 2023,
including the First Amendment. Case No. IPC-E-2222-06.
WHEREAS, the Micron Special Contract contains a provision in Section 10.1 requiring Idaho
Power to retire, on Micron’s behalf, the Environmental Attributes (as defined in the Micron Special
Contract) associated with Project Output (as defined in the Micron Special Contract) on or before January
31 of each year.
Second Amendment to the 2022 Special Contract
Page 2 of 3
Micron ConfidentialConfidential
Micron ConfidentialMicron Confidential
WHEREAS, the Parties desire to enter into this Second Amendment to extend the annual deadline
of January 31 contained in Section 10.1 of the Micron Special Contract to March 1 and submit the same
for the Commission’s approval.
NOW, THEREFORE, in consideration of the foregoing, and for other good and valuable
consideration, the receipt and adequacy of which are hereby acknowledged, Micron and Idaho Power,
each intending to be legally bound, agree as follows:
1.1.Incorporation of Recitals.The above-stated recitals are incorporated into and made a part of this
Second Amendment by this reference.
2.2.Amendment.
Section 10. -Environmental Attributes:Section 10.1 of the Micron Special Contract is hereby
amended to replace “January” with “March” to state as follows: (new language is underlined,
deleted language uses strikethrough).).
“10.1 Environmental Attributes: Idaho Power shall, or shall cause the Developer to, as soon as
practicable but in any case on or before March 1 January 31 of each calendar year, retire, on
Micron’s behalf, all Environmental Attributes associated with Project Output through the
Applicable Program. …”
3.3.IPUC Approval.The obligations of the Parties under this Second Amendment are subject to the
IPUC’s approval of this Second Amendment, and such approval being upheld on appeal, if any, by a court
of competent jurisdiction.
4.4.Effect of Amendment.Except as expressly amended by this Second Amendment, the terms and
conditions of the Micron Special Contract remain unchanged.
5.5.Capitalized Terms.All capitalized terms used in this Second Amendment and not defined herein
shall have the same meaning as in the Micron Special Contract.
6.6.Scope of Amendment.This Second Amendment shall be binding upon and inure to the benefit of the
Parties hereto, and their respective heirs, executors, administrators, successors, and assigns, who are
obligated to take any action which may be necessary or proper to carry out the purpose and intent hereof.
7.7.Authority.Each Party represents and warrants that as of the Effective Date: (i) it is validly existing
and in good standing in the state in which it is organized, (ii) it is the proper party to amend the Micron
Special Contract, and (iii) it has the requisite authority to execute this Second Amendment.
8.8.Counterparts.This Second Amendment may be executed in any number of counterparts, each of
which shall be deemed an original and all of which taken together shall constitute a single instrument. A
signature in “PDF” format or an electronic signature to this Second Amendment shall be deemed an
original and binding upon the Party against which enforcement is sought.
9.9.Governing Law. Unless otherwise expressly provided herein, the terms and conditions of this Second
Amendment shall be governed by, controlled, construed and enforced in accordance with the laws and
Second Amendment to the 2022 Special Contract
Page 3 of 3
Micron ConfidentialConfidential
Micron ConfidentialMicron Confidential
decisions of the state of Idaho applicable to agreements to be made and to be performed in Idaho without
regard to principles of conflicts of law.
IN WITNESS WHEREOF, the Parties hereto have caused this Second Amendment to be duly
executed as of the date set forth above.
MICRON TECHNOLOGY, INC.
By:
Name:
Title:
IDAHO POWER COMPANY
By:
Name:
Title:
30729027_v2
Heather J. Baldwin
VP, Procurement, Indirect & Real Estate
Adam Richins
Chief OpOperating Officer
BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-23-30
IDAHO POWER COMPANY
ATTACHMENT 2
Idaho Power CompanySixteenth Seventeenth Revised Sheet No. 26-1
Cancels
I.P.U.C. No. 29, Tariff No. 101Fifteenth Sixteenth Revised Sheet No. 26-1
IDAHO Issued by IDAHO POWER COMPANY
Issued per Order No. 35735 Timothy E. Tatum, Vice President, Regulatory Affairs
Effective – June 1, 2023 1221 West Idaho Street, Boise, Idaho
SCHEDULE 26
IDAHO POWER COMPANY
ELECTRIC SERVICE RATE
FOR
MICRON TECHNOLOGY, INC.
BOISE, IDAHO
SPECIAL CONTRACT DATED MARCH 9, 2022, AMENDED MAY 31October 27, 2023
MONTHLY CHARGE
The Monthly Charge is the sum of the following charges, and may also include charges as set
forth in Schedule 55 (Power Cost Adjustment), Schedule 91 (Energy Efficiency Rider), and Schedule 95
(Adjustment for Municipal Franchise Fees). Terms used below have the meanings given to them in the
Special Contract referenced above.
Monthly Contract Demand Charge
$1.67 per kW of Contract Demand.
Monthly Billing Demand Charge
$10.98 per kW of Billing Demand but not less than Minimum Monthly Billing Demand.
Minimum Monthly Billing Demand
The Minimum Monthly Billing Demand will be 25,000 kilowatts.
Daily Excess Demand Charge
$0.291 per each kW over the Contract Demand.
Monthly Energy Charge
2.8150¢ per kWh of Supplemental Energy.
Embedded Energy Fixed Cost Charge
0.2632¢ per kWh of Renewable Resource On-Site Usage
Monthly Adjusted Renewable Capacity Credit(s)
See Table Nos.1, 2, 3, and Revised Exhibit 1 of Micron’s Special Contract, dated March 9, 2022,
as amended.
Renewable Resource Cost
As defined in Revised Exhibit 1 of Micron’s Special Contract, dated March 9, 2022, as amended.
Excess Generation Credit
As defined in Revised Exhibit 1 of Micron’s Special Contract, dated March 9, 2022, as amended.
Administrative Charge
As defined in Revised Exhibit 1 of Micron’s Special Contract, dated Month 9, 2022, as amended.
Idaho Power Company Seventeenth Revised Sheet No. 26-1
Cancels
I.P.U.C. No. 29, Tariff No. 101 Sixteenth Revised Sheet No. 26-1
IDAHO Issued by IDAHO POWER COMPANY
Issued per Order No. Timothy E. Tatum, Vice President, Regulatory Affairs
Effective – 1221 West Idaho Street, Boise, Idaho
SCHEDULE 26
IDAHO POWER COMPANY
ELECTRIC SERVICE RATE
FOR
MICRON TECHNOLOGY, INC.
BOISE, IDAHO
SPECIAL CONTRACT DATED MARCH 9, 2022, AMENDED October 27, 2023
MONTHLY CHARGE
The Monthly Charge is the sum of the following charges, and may also include charges as set
forth in Schedule 55 (Power Cost Adjustment), Schedule 91 (Energy Efficiency Rider), and Schedule 95
(Adjustment for Municipal Franchise Fees). Terms used below have the meanings given to them in the
Special Contract referenced above.
Monthly Contract Demand Charge
$1.67 per kW of Contract Demand.
Monthly Billing Demand Charge
$10.98 per kW of Billing Demand but not less than Minimum Monthly Billing Demand.
Minimum Monthly Billing Demand
The Minimum Monthly Billing Demand will be 25,000 kilowatts.
Daily Excess Demand Charge
$0.291 per each kW over the Contract Demand.
Monthly Energy Charge
2.8150¢ per kWh of Supplemental Energy.
Embedded Energy Fixed Cost Charge
0.2632¢ per kWh of Renewable Resource On-Site Usage
Monthly Adjusted Renewable Capacity Credit(s)
See Table Nos.1, 2, 3, and Revised Exhibit 1 of Micron’s Special Contract, dated March 9, 2022,
as amended.
Renewable Resource Cost
As defined in Revised Exhibit 1 of Micron’s Special Contract, dated March 9, 2022, as amended.
Excess Generation Credit
As defined in Revised Exhibit 1 of Micron’s Special Contract, dated March 9, 2022, as amended.
Administrative Charge
As defined in Revised Exhibit 1 of Micron’s Special Contract, dated Month 9, 2022, as amended.