Idaho Power Says Hoku Not Paying Bill Poses ‘Imminent Financial Harm’ To Other Customers
Idaho Power Company says Hoku Materials Inc. not paying its electric bill will have repercussions for other customers.
State regulators will hear oral arguments Wednesday on Hoku’s complaint over Idaho Power Company?s intent to end electric service to its plant in Pocatello.
Idaho Power Company had threatened to shut off electricity after the Honolulu-based polysilicon maker missed a $1.9 million payment in November because of cash problems. Hoku filed a complaint with the Idaho Public Utilities Commission asking the commission not to allow Idaho Power to terminate service and instead allow the payment to come out of a $4 million deposit Hoku has provided the utility.
As long as the case is unresolved, regulators say Idaho Power can’t shut off electricity to Hoku.
The loss of revenue from such a large customer poses ?imminent financial harm,? to Idaho Power?s other customers, who may not receive their share of a tax benefit the commission just approved, Idaho Power says.
Hoku has warned that losing power in the middle of a freezing winter could jeopardize just-completed facilities at its new $390 million plant and threaten 160 jobs.
The Idaho Public Utilities Commission said in a news release Thursday that Hoku says it has not paid its November bill because the plant is not yet ?operational and producing revenue? and must draw on various reserves or loans to pay its operating costs.?
According to the commission, Idaho Power says it has ?gone out of its way to accommodate Hoku,? by modifying its original contract and delaying implementation, but Hoku ?has failed to provide Idaho Power any assurance that such a payment will be forthcoming.?
Idaho Power says Hoku owes another $1.8 million deposit that was due Dec. 31, but the utility agreed to extend to March 2 so long as Hoku remained current on its payments. Because it has not done so, the utility alleges, that the remaining $1.8 deposit is now due.
Hoku will file a response to Idaho Power?s claims by Monday and the oral argument will begin at 2 p.m. Wednesday in the commission hearing room at 472 W. Washington St. in Boise.
