Hoku Pays November Bill, Still Owes Idaho Power
Hoku Materials paid its past-due November bill to Idaho Power Company on Friday, but still faces the possibility of getting electricity shut off for its Pocatello plant.
Hoku has not yet paid its December bill. It also owes interest from November.
Hoku instructed its bank, the Industrial and Commercial Bank of China to wire a $1.9 million payment to the utility Friday, the Idaho Public Utilities Commission announced.
The utility had threatened to shut off electricity after the Honolulu-based polysilicon maker missed its. 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.
A commission order issued Friday denied Hoku?s request to suspend its December and future payments, but also denied Idaho Power?s request for an additional $1.8 million deposit on top of a $4 million deposit already paid by Hoku. The order also directs Idaho Power and Hoku to negotiate a possible amendment to their sales contract because of a reduction in the commission?s published avoided-cost rate on which part of Hoku?s contract is based.
On Friday, Idaho Power claimed Hoku failed to disclose it had completed a financing arrangement with its Chinese bank, which made $10 million available to the company for operations and maintenance. According to Idaho Power, Hoku was aware of the loan an hour before Thursday?s oral argument but did not provide that information during the hearing.
Hoku has said the decline in the polysilicon market has prevented the plant from producing revenue, and that it was drawing on various reserves and loans. The company has said that cutting off the power would prevent completion of the plant?s construction, possibly freeze sensitive electronic equipment and threaten 160 jobs.
Idaho Power has said it has ?gone out of its way to accommodate Hoku,? and that the loss of revenue it faces poses ?imminent financial harm? to its other customers.
If Hoku does not pay its December bill and November interest by Jan. 26, Idaho Power will be able to pull the plug on the plant. In addition, if December?s bill is not paid by that date, Idaho Power will also be allowed to pull the amount due from the $4 million deposit.
